The best travel rewards are the ones that get you where you want to go, and some do a better job of that than others. Airline miles can help you book free flights and hotel points can help you book free rooms, but transferable points (like Chase Ultimate Rewards and AmEx Membership Rewards) can do both — and more.
Here are six reasons why transferable points are at the apex of travel rewards, and why you should prioritize earning them over other types of points and miles.
1. Transferable points provide flexibility
Suppose you’re in the market for a new travel credit card and you’ve narrowed your decision to two choices: the first card earns points that can be redeemed with your favorite airline, while the second card earns points that can be redeemed not only with your favorite airline, but also with your favorite hotel chain. The cards are functionally identical otherwise. Which do you choose?
The second card is the obvious answer. The option to redeem with both airline and hotel partners makes the rewards you earn from it more useful, since they can meet a broader range of award travel needs. In short, the rewards earned by the second card are more valuable because they’re more flexible.
Transferable points programs expand on that premise by partnering with a variety of airline and hotel loyalty programs, giving you a diverse range of redemption options instead of just one.
Flexibility isn’t the only ingredient needed to add value, since making points transferable doesn’t necessarily mean transferring them is worthwhile. For example, you can transfer Hilton Honors points to more than two dozen airline partners, but in most cases the transfer ratio is a dismal 10:1 (i.e., 10,000 Hilton points becomes 1,000 airline miles).
That provides marginal value because it’s only useful in marginal situations, like if you urgently need a small number of miles to book a highly valuable award flight. While Hilton Honors points are technically “transferable,” their transferability doesn’t add much.
In contrast, the major transferable points programs generally offer neutral or favorable transfer ratios, as well as transfers that process quickly (or in many cases, instantly). That kind of flexibility adds more clear and consistent value.
2. Transferable points have greater upside
Suppose you’re booking a long weekend trip from Denver to San Francisco in the spring. You’ll be attending a wedding at the Hyatt Regency San Francisco and plan to pay out of pocket for your room there, but you have 60,000 United Airlines MileagePlus miles you can use to book your flight.
You want to arrive Thursday morning and return Sunday evening, so you search United’s website and find an itinerary that suits your needs for 32,200 miles and $11.20 in fees. You compare that with the cash price of $375.72 and calculate a redemption value of 1.13 cents per mile. That’s quite close to NerdWallet’s valuation of1.2 cents per mile, so you’re satisfied.
Now imagine that instead of United miles, you have a reserve of 60,000 Chase Ultimate Rewards points. Instead of being able to redeem them solely for United flights, you can transfer those points to 11 airlines and three hotels based on which one suits your needs and offers the best value.
For example, instead of booking with United, you could transfer points to Southwest Airlines and book a comparable (though not identical) itinerary for 27,577 points and $11.20 in fees, versus a cash price of $386.97.
Assuming you’re not bothered by the earlier outbound departure and you don’t have a strong preference for one airline, the ability to choose between them saves you about 4,600 points on your flight.
Alternatively, you could transfer points to Hyatt to book your stay at the Hyatt Regency San Francisco. The award cost is 17,000 points per night, totaling 51,000 points for your three-night visit.
Cash rates start at $323 per night, but the cheapest rates require advance purchase and are nonrefundable, while booking with points generally allows you to cancel with no penalty until two days before arrival.
A cash rate with a comparable cancellation policy totals $1,386.22 after taxes and fees, which yields a redemption value of over 2.7 cents per point (more than double what you’d get by redeeming for the United flights above).
This is just one example about a set itinerary, but it illustrates how the versatility of transferable points provides an upside when you’re not locked into specific travel providers.
Having more redemption options yields more opportunities to use points efficiently, which in turn raises the expected value of each redemption.
3. Transferable points have more favorable expiration policies
Many loyalty programs have expiration policies that can cause your rewards to vanish over time. While you’ll generally have 12 to 36 months to keep rewards active, some points and miles expire in as little as six months.
It’s easy to let rewards lapse and disappear in that timeframe if you’re not a frequent traveler and you don’t monitor your loyalty accounts vigilantly.
In contrast, transferable points generally don’t expire as long as your account remains open and in good standing. That means you won’t have to keep track of when you last logged activity in each loyalty program or take action to keep dormant rewards from expiring.
4. Transferable points offer lucrative transfer bonuses
Most transfers to airline and hotel partners are done at a 1:1 ratio, so transferring typically gets you the same number of rewards you put in.
For example, transferring 1,000 Chase Ultimate Rewards points to United Airlines gets you 1,000 United miles, or transferring 1,000 Citi ThankYou Rewards points to Wyndham Hotels gets you 1,000 Wyndham points. While exchange rates vary depending on the loyalty program and credit card you’re using, a 1:1 transfer ratio is the industry standard.
However, transferable points programs offer occasional transfer bonuses that boost the exchange rate, commonly by 20%-50%. Instead of the usual 1:1, every 1,000 points you transfer with a bonus could get you 1,200 to 1,500 points with the partner program (or in some cases, more).
These higher exchange rates can save you points when a transfer bonus aligns with your travel plans, since booking the trip you want requires fewer transferable points than it would normally.
Transfer bonuses also create opportunities to top up your loyalty account balances by sending points to the programs you use most (even if you don’t have immediate plans to redeem them).
5. Transferable points reduce the risk of devaluation
Loyalty programs change over time, and while they sometimes add features, lower award prices or introduce new redemption options that make rewards more valuable, the opposite is more common.
Devaluations are a regular occurrence among airline and hotel programs and sometimes take place with no warning. When your points or miles are suddenly in decline, you have little recourse.
Transferable points programs aren’t immune from devaluations; they add, remove and modify features just like airline and hotel programs.
However, transferable points are insulated from devaluation by the sheer number of available redemption options — when a single airline or hotel program devalues, other transfer partners are unaffected, so transferable points retain the bulk of their worth.
In short, earning transferable points is the award travel equivalent of diversifying investments: By having a share of many loyalty programs, you’re less affected by a downturn in one of them.
6. Transferable points offer alternative redemption options
Transfers to airline and hotel partners tend to be the most valuable use of rewards, but transferable points programs feature a variety of other ways to redeem them.
One is to book flights, hotels or other travel directly through the program’s travel portal, especially with programs that offer added value for travel portal redemptions. For example, Chase Sapphire Reserve® cardholders get 1.5 cents per point when redeeming through the Chase Ultimate Rewards travel portal.
Chase Sapphire Reserve®
NerdWallet Rating
Annual fee
$550
Some programs also offer added value when redeeming for cash equivalents like statement credits or gift cards. For example, the American Express Platinum Card for Schwab lets you redeem Membership Rewards points at 1.1 cents apiece for cash deposits to an eligible Charles Schwab account. Terms apply.
Even though cashing out yields a lower average return than transfers to travel partners, it’s nice to be given the option when you need it, as it’s one you generally don’t have with other points and miles programs.
Why you should be using transferable points
Among travel rewards, transferable points have the best chance to provide useful redemption options, yield a high return and retain their value over time.
That’s why they’re broadly prized above rewards from individual airline and hotel programs, and why earning them should be the focus of your award travel strategy.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Embark on a quest for the perfect home decor accessory that aligns with your unique style and elevates your living spaces. The market is teeming with options, but navigating this realm requires thoughtful consideration. Whether you desire a vibrant splash for your living room or a warm embrace for your bedroom, the possibilities are vast. Drowning in choices is inevitable, yet the transformative potential of the right decor piece is unparalleled. From nuanced accent pillows to captivating wall art, each accessory holds the key to reshaping your home into a haven of style and comfort. Immerse yourself in the realm of home decor accessories for a curated transformation.
SEEKO Short Round Ball Cactus in Ceramic Pot
Envision a desert oasis within your home or office, courtesy of the SEEKO Natural Looking Fake Cactus Plant. Standing at 11″ in a ceramic pot, this artificial cactus effortlessly infuses Southwest charm into your space. Perfect for cubicles or shelf accents, its realistic appearance captivates. Beyond its visual appeal, this generously sized faux plant is remarkably easy to care for and budget-friendly. A must-have for those seeking to effortlessly incorporate a touch of desert allure into their surroundings.
Rated 9.9 based on 10
Natural looking, Can be accent in any decor, Versatile use
Somewhat pricey
Sullivans Ceramic Vase Set Distressed White
Enhance your home decor with the Sullivans Vase Set, an ideal addition to any space. This farmhouse-inspired set boasts a generous size, making it a captivating centerpiece for tables or shelves. The distressed finish exudes rustic charm, creating an aesthetic that elevates every room. Beyond their visual appeal, these white vases offer easy cleaning and maintenance. Versatile enough for the kitchen, bedroom, office, living room, or bathroom, this set is a must-have for any home. With its affordable price, the Sullivans Vase Set delivers exceptional value and style for your investment.
Rated 9.7 based on 10
Versatile for different rooms, Boho & farmhouse aesthetic, High quality centerpiece and accessories
Actual size is smaller than anticipated
Ceramic Vase for Minimalist Decor (2pcs)
Introducing the White Ceramic Vase – a minimalist gem with remarkable versatility. Its hollow, round form and matte finish infuse a modern aesthetic into any space, offering ample space for pampas flowers or other greenery. From weddings to everyday use, this vase exudes a boho chic vibe on dinner tables and shelves. The set includes two pieces, delivering exceptional value at an affordable price. Elevate your home with sophistication through the understated charm of the White Ceramic Vase.
Rated 9.5 based on 10
Modern minimalist design, Made from high quality ceramics, Create beautiful dining table centerpie
Not suitable for large spaces
Putihac White Ceramic Vases Set of 2
Embark on a minimalist journey with the White Ceramic Vases, perfect for displaying pampas grass and flowers in a chic and stylish way. The round matte donut design adds a touch of elegance to any room, making it an ideal choice for home decor enthusiasts. This set of two vases is generously sized and surprisingly easy to maintain, ensuring long-lasting durability. With its affordable price point, this product offers great value for money and is a must-have for anyone looking to elevate their home decor game.
Step into modern home elegance with Carrot’s Den Donut Vase, a minimalist Nordic-style ceramic masterpiece. Affordability meets design in this hollow marvel, facilitating effortless floral arrangements. Ideal for tables, living rooms, bookshelves, or offices, the set of two provides exceptional value. Whether you seek a boho or wedding vibe, the Carrot’s Den Donut Vase effortlessly injects a touch of elegance into any space, making it the perfect addition for those who appreciate both style and budget considerations.
Rated 9.1 based on 10
Minimalist Nordic Style, Versatile for various settings, Perfectly handy size
May not best for bigger space
Levvohd Ceramic Vase Set of 2
Elevate your home décor with the Levvohd Ceramic Vase Set, seamlessly blending Nordic minimalism with modern design. Perfect for showcasing your favorite flowers, these eye-catching vases boast a unique donut shape. Whether adorning your living room, entryway, or coffee table, their generous size and easy cleaning enhance their value. Priced affordably, this set combines beauty and practicality, ensuring your space receives compliments for its stylish transformation. Dive into the world of Levvohd, where elegance meets affordability in perfect harmony.
Rated 8.8 based on 10
Made of high quality ceramics, Versatile for various decor styles, Hollow design adds visual interest
Size is smaller than expected
COTYNI White Ceramic Vase Set of 2
Delve into the realm of modern home decor with this exquisite pair of ceramic vases. The round matte donut design adds a touch of neutral boho Nordic minimalism, suitable for various occasions from living room to wedding table party. Generously sized to showcase your favorite flowers or pampas grass, these vases embody elegance effortlessly. Surprisingly easy to maintain and budget-friendly, this minimalist set is a standout addition for those seeking a touch of sophistication in their office or bedroom. Elevate your space with this essential vase set, where style meets practicality.
Rated 8.7 based on 10
Extreme craftmanship, Versatile use, Durable material
May be too small
Marycele Book Vase for Flowers
Explore the world within the pages of books with the Marycele Book Vase, a seamless blend of functionality and aesthetics. Ideal for book lovers, this surprisingly easy-to-use vase effortlessly complements your decor. Generously sized, it accommodates your favorite flowers, infusing a touch of nature into your living space. Beyond being a mere vase, it serves as a captivating addition to your home, fostering a closer connection to nature. Best of all, it’s an affordable transformation for your space, making it an excellent Thanksgiving gift or a self-indulgent addition to elevate your home decor.
Rated 8.5 based on 10
Unique book vase design, Economical price, Versatile room decor piece
Need extra care to avoid scartches
FAQ
Q: Where can I find affordable home decor accessories?
A: Navigate the realm of budget-friendly home decor accessories through curated online platforms like Etsy, where unique and economical options abound. Explore the offerings of Wayfair for a diverse selection at reasonable prices. Local thrift stores and flea markets often hide affordable gems, while discount retailers and clearance sections unveil stylish accessories without compromising your budget.
Q: How do I choose the right home decor accessories for my space?
A: Selecting the ideal home decor accessories involves assessing your space’s aesthetic, considering your style preferences, and focusing on functionality. Harmonize elements by choosing accessories that complement your existing decor. Opt for items that resonate with your personal taste and contribute to the overall ambiance. Experiment with diverse textures, colors, and sizes to curate a cohesive and visually appealing arrangement that elevates your living space.
Q: Can I find affordable yet high-quality home decor accessories?
A: Certainly! Unearth top-notch yet budget-friendly home decor treasures through online marketplaces, thrift store gems, and savvy brand selections. Delve into the realm of cost-effective options, where quality and affordability converge seamlessly. Transform your space without breaking the bank by exploring accessible avenues for stylish and well-crafted home decor accessories.
Q: Are there eco-friendly options for home decor accessories?
A: Absolutely! Dive into sustainable home decor choices with eco-friendly materials like recycled glass, reclaimed wood, and organic fabrics. Numerous brands prioritize environmentally conscious practices, ensuring your decor doesn’t compromise the planet. Look for certifications like FSC or GreenGuard, and explore the growing array of stylish, sustainable options to adorn your space with guilt-free, planet-friendly flair.
Q: How often should I update my home decor accessories?
A: Refreshing your home decor accessories is subjective but consider adapting with changing trends or personal tastes every 3-5 years. It’s not just about following trends; it’s ensuring your space stays vibrant and resonates with your evolving style. Stay attuned to your preferences, and update strategically for a fresh, welcoming atmosphere that suits your current aesthetic.
Conclusions
Navigating the landscape of home decor accessories led us to a standout choice: white ceramic vases. A product of comprehensive reviews, these vases emerged as a favored selection for minimalist, boho, and modern decor enthusiasts. The diversity in shapes, sizes, and designs renders them adaptable to living rooms, bedrooms, offices, and even wedding settings. Offering a seamless infusion of elegance and sophistication, these vases boast a neutral palette that effortlessly complements any color scheme or theme. For those seeking to transcend the ordinary in home decor, the white ceramic vase proves to be an impactful and versatile option worthy of consideration.
A home equity loan allows you to borrow a lump sum against your home’s equity, usually at a fixed interest rate that’s lower than other forms of consumer debt.
The amount you can borrow with a home equity loan is based on the current market value of your home, the size of your mortgage and personal financials like your credit score and income.
Home equity loans are best used for five-figure renovation or repair projects — which can garner you a tax deduction on their interest — or to consolidate other debts.
Home equity loans drawbacks include putting your home at risk of foreclosure and their lengthy application process.
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What is a home equity loan?
A home equity loan is a type of second mortgage secured by the equity in your home. It offers a set amount at a fixed interest rate, so it’s best for borrowers who know exactly how much money they need. You’ll receive the funds in a lump sum, then make regular monthly repayments amortized over the term of the loan, typically as long as 30 years.
Because your home is the collateral for the loan, the amount you’ll be able to borrow is related to its current market value. The interest rate you receive on a home equity loan (as with other loans) will vary depending on your lender, credit score, income and other factors.
Home equity loans in 2024
While the housing sales have cooled in some areas in recent months due to higher mortgage rates, housing prices have continued to post gains – good news for the net worth of American homeowners. According to the Board of Governors of the Federal Reserve System, U.S. households possess a collective $32.6 trillion in home equity as of the third quarter of 2023.
That’s a record high, and it means that the vast majority of homeowners are sitting on a huge pile of equity that they can leverage to access cash, including through a home equity loan. In fact, according to TransUnion’s latest “Home Equity Trends Report,”, the median amount of tappable equity per homeowner is $254,000, and some householders are in an even better position: 5.8 million of them have more than $1 million of available equity.
2023 saw a reversal in the demand for tapping all that equity. As rates jumped, the number of borrowers interested in home equity loans – along with HELOCs, their line-of-credit cousins – dropped in the back half of last year. TransUnion’s data shows that HELOC originations in the third quarter of 2023 fell by 28 percent versus the year before. Home equity loans were only down by 3 percent, though – perhaps a reflection of a homeowner’s confidence in the predictability of a fixed-rate home equity loan versus the volatility of variable-rate HELOC (more on that below).
10.16%
The average $30,000 HELOC rate as of the beginning of January 2024 — up from 7.62% in January 2023.
Source:
Bankrate national survey of lenders
As for 2024: The potential for Federal Reserve interest rate cuts could be good news for home equity loans. While the forecast doesn’t call for massive savings — for HE loans, anyway — any reduction in borrowing costs saves prospective borrowers some cash, and encourages them to turn to this financing tool.
What are average home equity loan interest rates?
As of late January 2024, home equity loan rates for the benchmark $30,000 loan are averaging just under 9 percent, within a tight range of 8.5 to 10 percent. While high compared to their average of six percent in 2022, that’s significantly lower than other forms of consumer debt. Credit card rates are lingering above the 20-percent mark, and personal loans can stretch into the 25–35 percent range for borrowers with less-than-perfect credit scores.
How does a home equity loan work?
When you take out a home equity loan, the lender approves you for a loan amount based on the percentage of equity you have in your home and other factors. You’ll receive the loan proceeds in a lump sum, then repay what you borrowed in fixed monthly installments that include principal and interest over a set period. Although terms vary, home equity loans can be repaid over a period as long as 30 years.
Since the loan is secured by your home, the property is at risk for foreclosure if you can’t repay what you borrowed. If that happens, it can cause serious damage to your credit score, making it harder for you to qualify for future loans.
You can use the funds from a home equity loan for any purpose, but there’s a possible tax benefit if you use the money to improve your home. You can deduct the interest (up to the limit) if the home equity loan is used to “buy, build or substantially improve” the property. To do this, you’ll need to itemize your deductions.
Home equity loan requirements
Lenders have different requirements for home equity loans, but generally, the standards include:
Credit score: Mid-600s or higher
Home equity: At least 20 percent
Employment and income: At least two years of employment history and pay stubs from the past 30 days
Debt-to-income (DTI) ratio: No more than 43 percent
Loan-to-value (LTV) ratio: No more than 80 percent
What should you use a home equity loan for?
Some of the best reasons to use a home equity loan include:
Upgrading your home: Whether you’re looking to remodel your kitchen, add an in-law suite or install solar shingles on your roof, a home equity loan can be a smart way to pay for the enhancements. You’ll be improving your home, which means you get to enjoy living there more; and when you’re ready to sell, the upgrade can potentially make it more attractive (and more valuable) to buyers. Plus, you can qualify for some tax benefits — a deduction on the interest — when you use a loan to invest in the property in this way.
Consolidating high-interest debt: If you’ve been struggling to pay off debts with high costs like credit cards, a home equity loan can make a big difference in the amount of interest you’re paying. However, if you’re considering this route, there are two important caveats. First, you need to have a real commitment to not build those credit card balances up again. Second, the amount of debt needs to be fairly significant. Credit card balance transfers can be a better option if you’re aiming to pay off less than $10,000.
Covering large medical bills: Health care can be incredibly expensive, and medical problems often arise unexpectedly. If you or a family member needs a procedure, treatment or long-term care that isn’t fully covered by insurance, a home equity loan could be a good way to handle the costs.
When you should avoid getting a home equity loan
If you’re thinking about using a home equity loan and any of these describe you, think again:
Covering discretionary spending: You don’t have to go on that pricey vacation for spring break (find something fun to do for a staycation). You also don’t have to host a wedding (go to the courthouse). While both of those kinds of big expenses can be fun, they are not reasons to hock your home. Save for longer, or find a more affordable way to make them happen.
Paying for college: You may find lenders who advocate paying college tuition via home equity, but this is a risky move. There is no guarantee that your child is going to graduate, but there is certainly a guarantee that you need to have a home. Look at taking out federal student loans in your child’s name instead: Their interest rates are lower, and they come with benefits like income-based repayment options.
Paying for a relatively small project: If you only need a small amount of cash – think less than $20,000 – you may be better off looking for other options such as a credit card with a long zero-percent APR period or simply taking longer to set aside some savings.
How much can I borrow with a home equity loan?
To figure out how much you might be able to borrow with a home equity loan, you first need to understand how much home equity you actually have. Your equity is the essentially difference between how much your home is worth and how much you owe on your first mortgage. For example, if your home’s current fair market value is $500,000 and you owe $250,000, you have a 50 percent equity stake.
Most lenders will let you borrow up to 80 percent of your equity stake (some let you go as high as 85 or even 90 percent). However, there’s another factor to consider: How much all your loans amount to or your combined loan-to-value ratio (CLTV). Most home equity lenders will cap your total amount of home-secured debt – including your first mortgage – at 80 percent of the home’s market value. So, in that case, you would likely be able to borrow up to $150,000, taking your total mortgage debt to $400,000 (80 percent of $500,000). Bankrate’s home equity calculator can help you estimate your exact borrowing power.
Home equity loan pros and cons
Pros of home equity loans
Attractive interest rates: Home equity lenders typically charge lower interest rates compared to the rates on personal loans and credit cards. This is because home equity loans are a type of secured debt, meaning they’re backed by some sort of collateral (in this case, your house) — which makes them less risky for the lender, compared to unsecured debt, which isn’t backed by anything.
Fixed monthly payments: Home equity loans offer the stability of a fixed interest rate and a fixed monthly payment. This might make it easier for you to budget for and pay each month. This also eliminates the possibility of getting hit with a higher payment with a variable-rate product, like a credit card or home equity line of credit (HELOC).
Tax advantages: You could be eligible for a tax deduction if you use the loan proceeds to substantially improve or repair the home. Check with an accountant or tax professional to learn more about this deduction and to determine if it’s available to you.
Cons of home equity loans
Home on the line: Your home is the collateral for a home equity loan, so if you can’t repay it, your lender could foreclose.
No flexibility: If you’re not sure how much money you need to borrow (you’re planning a big remodeling project, say), a home equity loan might not be the best choice. Because home equity loans only offer a fixed lump sum, you run the risk of borrowing too little. On the flip side, you might borrow too much, which you’ll still need to repay with interest (though you might be able to settle the debt early, if that’s the case).
Lengthy, costly application: Applying for a home equity loan is akin to applying for a mortgage; though somewhat simpler, it often means lots of paperwork, a long process and closing costs.
What’s the difference between a home equity loan and a HELOC?
A HELOC – short for home equity line of credit – is also secured by the equity in your home and has similar requirements to a home equity loan, it operates a bit differently. With a HELOC, you can borrow money on an as-needed basis, up to a set limit, typically over a 10-year draw period. During that time, you’ll make interest-only payments on what you borrow. This means that your payments may be smaller than a home equity loan, which includes both interest and principal. When the draw period on the HELOC ends, you’ll repay what you borrowed and any interest, usually over a repayment term of up to 20 years. Unlike home equity loans, HELOCs have variable interest rates, which means your monthly payments can change.
Other home equity loan alternatives
A home equity loan and a HELOC aren’t your only options for borrowing against your equity. Some other alternatives include:
Shared equity agreements: Investment companies like Unlock and Hometap offer shared equity agreements, which let homeowners access cash now in exchange for a portion of the home’s value in the future. These arrangements vary, but they all have one upside: You don’t have to make monthly payments, because the money is technically not a loan, but an investment — funds in exchange for a share in your home. However, they all have the same downside: You’re going to make a big payment eventually, and it will likely wind up coming out of the proceeds when you sell the home.
Cash-out refinance: Another option to convert a portion of your home equity into ready money is through a cash-out refi. Unlike a home equity loan, a cash-out refi replaces your current mortgage with a new one for a higher amount, with you taking the difference between the outstanding balance and the new balance in cash. You’ll need to think carefully about a cash-out refi based on the rate attached to your current mortgage. If you managed to lock in a super-low rate during the pandemic, a cash-out refinance is almost certain to lock you into a significantly higher rate.
Personal loans: Personal loans can be a cost-effective route if your credit score is in 760-and-above territory. These are unsecured loans – meaning you won’t have to put your house on the line. However, borrowing limits tend to be lower, and the repayment period will be shorter than most home equity loans’.
Home equity loans FAQ
Taking on any form of debt, including a home equity loan, has an impact on your credit score. After you close on a home equity loan, your score might decrease temporarily. Over time, as you continue to make timely payments on the loan, you might see your score improve, as well.
It varies by lender, but most home equity loans come with repayment periods between five years and 30 years. A longer loan term means you’ll get more affordable monthly payments. That said, you’ll also pay far more in interest. If you can afford the higher monthly payments, selecting a shorter term maximizes overall cost. The ideal is to find a compromise between the two: the maximum manageable payments and the shortest loan term.
Fees for home equity loans vary by lender, which makes it very important to compare offers. Some home equity lenders require you to pay an origination fee and other closing costs, typically between 2 percent and 5 percent of the loan balance. You might also pay a home appraisal fee. Once the loan proceeds are disbursed to you, late fees could apply if you remit payment after the monthly due date or grace period (if applicable).
There are no restrictions on how you purpose your home equity loan. The most common uses include debt consolidation for high-interest credit card balances or other loans; home repairs or upgrades; higher education expenses and medical debts. Some choose to use the funds to start a business, purchase an investment property or cover another major purchase.
Though I love the holiday season, there’s something so satisfying about taking down the garland and stockings, giving my space a deep clean, and returning the year-round decor to its usual spot. Now that my home is “back to normal,” I want to make some changes to give it a fresh look.
Luckily, retailers like Target don’t waste any time shifting from holiday to spring decor, and after perusing its new arrivals, I stumbled on Hearth & Hand with Magnolia’s latest drop. The new collection features stylish and functional home and kitchen finds in neutral and pastel colors that easily blend with most interior design styles.
A few of my favorites include this round mirror with a pleated frame and this bundle of faux wildflowers to add to a vase on my coffee table. Keep scrolling to see everything I’m eyeing from Joanna Gaines’ spring line at Target starting at just $4. As usual with the popular brand, items in this collection are already selling out, so you’ll want to act fast.
Hearth & Hand With Magnolia Spring Collection at Target
I have a fairly small home, so I’m always looking for ways to make it feel bigger. Adding a large mirror, like this 30-inch style, not only helps the space appear larger but also brightens it up by reflecting light around the room. The round accent mirror has a pleated frame with a brass finish and is sturdy yet light enough to hang easily with the included hardware. I want to place it above my dresser in my bedroom, but you can also add it to offices, entryways, and living rooms. The 20-inch size is already sold out, so if you’re interested in the 30-inch mirror, you’ll want to add it to your cart ASAP.
Border Plaid Handmade Jute Woven Rug
While I love my home’s original wood floors, rugs are one of my favorite ways to make a space feel cozier. This handmade option from Hearth & Hand with Magnolia’s spring line warms up any area with its texture, pattern, and tan and cream design. It comes in five different sizes that can fit in any room you want to add a rug to. I’m grabbing the runner style for my hallway but might come back for the area rug for my guest bedroom.
River Landscape Sketch Framed Wall Art
I’m in the process of updating my main bedroom. I’ve been putting it off, as it’s not a room where I entertain guests, but I decided that this year I’m prioritizing making it a space I’m proud of. I purchased a new comforter, and now I’m focusing on wall decor like wedding photos, shelves, and artwork. This framed sketch of a river landscape is exactly what I was looking for, displaying the love my husband and I have for the outdoors in a subtle way that blends in with our existing decor.
Keep scrolling to see more of my favorite finds from Hearth & Hand with Magnolia’s spring collection at Target.
Want to learn how to make $200 fast? Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash. If…
Want to learn how to make $200 fast?
Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash.
If you want to make $200 fast, there are many ways to do it: You could sell things you don’t need, create and sell handmade items, use your car or home to make money, and more.
There are lots of ways to make $200 fast!
My top picks to make $200 fast
Selling items from around your home, such as clothing, an old cell phone, furniture, and more. You can learn how to flip your stuff in this free webinar.
Make $65+ per hour in a focus group sharing your opinions with User Interviews.
Rent out your RV with RVShare.
Freelance proofread and learn how to become a proofreader in this free webinar.
Start a blog (this is what I do!) and learn how in my free How To Start a Blog course.
Best Ways To Make $200 Fast
Below are the best ways to make $200 quickly.
Selling items from around your home
The quickest way to make $200 fast is to find stuff you already own and sell it.
When you’re in a pinch for cash, your home can be a treasure trove of items you can sell. Start by gathering gently used items or those you no longer need, such as electronics (phones, laptops), furniture (couches, coffee tables), clothing and accessories (especially branded ones), gift cards, and collectibles and antiques.
You can sell on Craigslist (ideal for bulkier items like furniture, tires, cars, etc., where local pickup is more practical), Facebook Marketplace (great for reaching a large local audience quickly), eBay (perfect for unique or more valuable items where shipping isn’t an issue), thrift stores (get cash on the spot at places like Plato’s Closet), having yard or garage sales (typically get less per item but can get rid of a lot of things at once), and more.
I have sold a ton of used items over the years such as clothing, jewelry, car tires, furniture, and more. It is easy and someone probably wants what you’re selling.
Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
Rent out your storage space
If you’ve got extra space in your home, be it an attic, basement, or spare room, renting it out for storage is an excellent way to earn extra cash.
A site to use to rent out your space is Neighbor. This website helps you earn money by renting out space you’re not using.
You can make up to $15,000 a year by renting out your garage, driveway, basement, or even a closet with Neighbor. You get to choose the prices and decide which reservations you want to say yes to and host.
Take paid online surveys
Earning $200 a day just by answering surveys isn’t normally possible (unless you are doing focus groups or paid research studies), but you can reach your goal by combining survey earnings with other ideas.
When I was repaying my student loans, I answered lots of surveys each week. I did this before work, during lunch, or after work. It was convenient because I could do it whenever I had free time.
Survey companies pay you for answering surveys, watching videos, and testing products. Sometimes, you might even receive free products to evaluate. The best part is that joining survey companies is free!
Some of the paid online survey companies I recommend are:
Here are 11 Paid Online Survey Sites if you want to learn more.
Answer questions in a focus group
A focus group is like a paid online survey, as I mentioned before, but you can make a lot more money from it.
I’ve done a focus group in the past that paid me around $400 for 75 minutes of my time. While that’s a bit more than usual, most focus groups pay anywhere from around $50 to over $100 per hour. Compensation differs significantly depending on the study’s length and topic, but higher-paying studies do exist.
Lots of consumer research companies pay people like us to share our opinions. The companies use our feedback to make their products and services better.
One focus group company that I recommend is User Interviews. User Interviews recruits participants to answer surveys and share their feedback.
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User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.
Play games on your phone
If you’re looking to make $200 quickly, your smartphone can be a surprisingly interesting way. By playing games on your phone, you can earn real money.
Game apps pay real money rewards because they make money from ads and in-app purchases. They share a part of their earnings with you to motivate you to keep playing their games.
The best game apps that pay real money include KashKick, Swagbucks, and InboxDollars.
When picking gaming apps to make money, check reviews and learn about how you get paid. Be careful with apps that ask you to pay to play or promise rewards that sound too good to be true. Also, keep track of the time you spend playing games to make sure it stays worth it.
Rent out your unused RV
If you have an RV that’s sitting idle, you may want to turn it into income by renting it out. Many people have RVs they don’t use very often. Instead of letting it just sit there, you might make extra money by renting it out. Yes, you could potentially make $200 a day by renting your RV to others.
Popular sites such as RVshare work similarly to Airbnb, connecting you with potential renters. They handle the bookings and insurance, making the process easier.
Another idea is to park your RV somewhere and list it on Airbnb. I’ve seen many RVs, campers, trailers, and more on Airbnb available for rent. Just make sure that you can rent it out in the location you want to leave it, as not all campgrounds or neighborhoods may allow it.
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RVshare is one of the best money-making sites because it helps travelers save money by cutting out the middleman and offering RV rentals directly from RV owners. If you have an RV that is sitting around, then you may be able to make $100 to $300+ a day.
Proofread
If you like finding mistakes in written content and want to know how to make $200 a day, proofreading could be a good fit for you. It can be a part-time job or a full-time work-from-home career too.
It’s a job where you can make $200 in a day, and many proofreaders earn around $40,000 a year or even more.
Proofreaders check for mistakes in articles, ads, books, student papers, emails, transcripts, and more.
To become a proofreader, all you need is a laptop or tablet, an internet connection, and the ability to spot mistakes and errors.
I recommend signing up for the free 76-minute workshop, where you can learn more about becoming a proofreader. You can sign up for the free How To Become a Proofreader workshop here.
Recommended reading: How To Become A Proofreader And Work From Anywhere
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
Virtual assist
A virtual assistant (VA) is someone who helps a person, company, or business owner with administrative and business tasks, making sure everything runs smoothly. They’re just like in-person assistants, but they work from home and online.
I used to work as a virtual assistant for small business owners. I didn’t have prior experience, but I learned the skills while on the job. It not only helped me earn a good income but also allowed me to work from home. I also have virtual assistants who work for me, so I know how helpful they are! This is a very in-demand job field to get into.
Virtual assistant tasks may include:
Managing a company’s Facebook account
Managing a calendar
Scheduling appointments and meetings
Creating slideshows and presentations
Managing an email inbox and handling customer support
And more.
Typically, when you begin working as a virtual assistant, you might earn around $15 to $20 per hour. However, in some cases, you could start with twice or even three times that amount. It depends on the type of work you do and the services you provide.
This can be a full-time job or a side hustle too!
You can learn more at How I Earn $10,000 Per Month From Home as a Virtual Assistant.
Selling handmade goods and crafts
If you want to earn an extra $200 fast, selling the things you make by hand, like crafts or handmade goods, is a great idea.
A popular place to sell handmade goods includes Etsy, which has a worldwide audience looking to purchase unique handcrafted items. You can also sell via social media or even rent a booth at a local craft fair.
You can sell all different kinds of handmade items such as jewelry, soap, furniture, art, photography, clothing, personalized gifts (such as engraved items), and more.
I have personally bought handmade goods all of these ways.
Freelance write
A person who freelance writes can make $200 in a single day.
Freelance writers work for clients, like websites, magazines, marketing teams, book publishers, and others. They write different things such as articles, blog posts for search engine optimization (SEO), marketing content, newsletters, press releases, and more.
You can find freelance writing jobs in many ways such as by searching on Fiverr or Upwork, looking to see if any of your favorite sites are hiring writers, networking with people in the industry you want to write in, and more.
I’ve been a freelance writer for a long time, and many of my friends also have this job. It’s a great way to make $200 a day or more all from home.
You can learn more about how to find freelance writing jobs below:
Transcribe
If you’re looking to make $200 quickly, transcription could be a great option. With a fast typing speed and strong language skills, you can convert audio files to text for pay.
Transcription is when you change spoken words from audio or video into a written document. Many businesses need transcriptionists because they need to convert audio and video into text.
New transcriptionists usually make about $15 per hour when they begin, and the good thing is, you don’t need any previous experience to get started.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
Blog
Starting a blog doesn’t instantly make you $200 on the first day because it takes time to set it up. However, with time and effort, bloggers can make $200 a day in the future.
A blog is a website with articles, like what you’re reading now. You can create a blog on topics such as personal finance, recipes, travel, pet care, family life, and more. There are many different types of blogs out there.
You can make money from a blog by partnering with companies for sponsorships, showing ads, doing affiliate marketing (for example, selling a product listed on Amazon), and selling products like ebooks, candles, T-shirts, and more directly on your blog.
This is what I do to make money, and I earn well over $200 a day online. It did take me around 6 months to make my first $100 with my blog, so it does take time to get started. It took me about a year to reach around $5,000 a month and around 2 years to get to $10,000 a month.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
Another idea similar to this is to start a YouTube channel, TikTok, Instagram, and more!
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
Dog walker
Becoming a dog walker is a fun way to make some quick cash if you love pets, especially dogs. You can easily get started by signing up with well-known dog walking apps dedicated to connecting dog walkers with pet owners.
Here are some steps to help you begin:
Register on Dog Walking Apps – Platforms like Rover are great for finding dog walking jobs. You could earn around $15 to $18 per hour depending on your experience and the local demand for dog walkers.
Create a Profile – Highlight your experience with dogs and any references you might have.
Set Your Availability – Decide on the days and hours you’re available to walk dogs and set your schedule.
My sister as well as my husband’s mother are both dog walkers on Rover, and they both enjoy this side hustle.
Sell printables on Etsy
Selling printables on Etsy can be a quick way to earn some extra cash.
Printables are digital files that customers can download and print themselves. These can include things like planners, art prints, stickers, learning tools, worksheets, invites, and organizational tools.
You most definitely have used printables in your life, and so have most people. I buy printables all the time because they make my life so much easier – and it’s so nice to just print things out and have them more easily accessible for when I need them.
One great thing about selling printables is that you don’t have to print and send anything yourself. The customer pays for the design, and they print it out on their own.
Here’s how you can get started:
Step 1: Find Your Niche
Determine what kind of printables you’re passionate about. Many people specialize in a certain type of printable, such as home, wedding, organizing, education, etc.
Research what’s popular and in demand. See what kind of printables people are actually buying right now.
Step 2: Create Your Printables
Use design tools like Canva or Adobe Illustrator.
Make sure your design is original and appealing.
Step 3: Set Up Your Etsy Shop
Create a memorable and easy shop name.
Set up shop policies and fill in all the details.
Step 4: List Your Products
Take attractive product photos or create digital mockups.
Write clear and compelling product descriptions so that potential customers can find your printables.
Price your printables competitively.
Step 5: Promote Your Shop
Utilize Etsy’s built-in SEO by using relevant keywords in your listings.
Share your printables on social media platforms.
Consider Etsy Ads for additional promotion.
You can learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
Deliver groceries and food
Grocery delivery is a service that is becoming more and more popular. I’ve used it several times myself when I didn’t have time to shop or didn’t have a car available. This service is likely to keep growing.
If you’re looking to make quick cash, you can try delivering groceries and food. You have the flexibility to create your own schedule, and payment can be received pretty quickly – sometimes even within an hour.
Delivering groceries is a popular extra job, and all you need is a valid driver’s license and a car.
You get paid for each delivery and keep all your tips. Platforms like Instacart and Shipt can help you earn around $15 to $20 per hour.
Here are a couple of options for you to start earning with food delivery:
Instacart: As an Instacart shopper, you can choose to shop for groceries or both shop and deliver to customers. Being able to cash out your earnings instantly is a big plus.
Shipt: Enjoy shopping at stores like Target and CVS? With Shipt, you can earn by shopping for others. It’s a great way to combine earning with a task you already enjoy.
Sign up to become an Instacart shopper here.
Related to this: You can also deliver restaurant meals in your spare time through companies like DoorDash and Uber Eats.
Drive for Uber or Lyft
Earning $200 quickly may seem hard, but you may be able to reach this goal by driving for ride-sharing services like Uber or Lyft.
Here’s what you need to know:
Sign Up – Both Uber and Lyft require you to have a valid driver’s license, meet age requirements, pass a background check, and have an eligible car.
Flexibility – You have the freedom to choose your working hours. Whether it’s an hour, over the weekend, or throughout the week.
Earnings – Income can vary, but it’s possible to earn between $20 to $25 per hour on average. At this rate, driving for 10 hours can help you reach your $200 target.
Maximize Promotions – Keep an eye out for special promotions or peak time surge pricing (such as by driving during weekend nights or during a baseball game) as these can really boost your earnings.
Expenses like gas and vehicle maintenance will come out of your earnings, so it’s important to work efficiently and choose high-demand times and areas to increase your income.
Tutor
Tutors who know subjects well, like math, language, science, graphic design, and more, help students get better at those subjects.
Becoming an online tutor depends on the subject you want to teach. You need experience in that area, but there are options for beginners too. Tutors for advanced subjects, like calculus or college entrance exams, usually earn more than those teaching simpler topics.
Rates vary from $15 to over $100 per hour, depending on the subject and where you offer your tutoring services.
Read more at 11 Best Places To Find Online Tutoring Jobs (Make $100+ an hour).
Sign up for quick Craigslist jobs
You can make $200 quickly using your local Craigslist, which has short-term jobs and side hustles listed under “gigs.”
Some gigs I’ve seen include painting a room, running errands, passing out flyers, handyman work, loading a moving truck, shoveling snow, pet sitting, transporting a boat, and more.
You can also find quick gig side hustles through a company called Taskrabbit as well!
Note: When using Craigslist for odd jobs, be cautious of scams. If something appears too good to be true, it probably is. For instance, no one is likely to pay you $2,000 for a mystery shop or a 30-minute survey. It’s important to stay alert and choose opportunities that are realistic and trustworthy. Simply skip it if you have doubts!
Get a roommate
If you’re looking to make $200 quickly, getting a roommate can be one way to do so, and if you have an extra room at home, you can make extra money by renting it out on platforms like Airbnb or finding a long-term roommate.
Renting out a room long-term could earn you around $200 or much more, depending on the room and its location. It’s a good way to utilize your extra space for additional income.
I have personally had several roommates in the past, and it was a good source of income. Plus, we had the extra space anyway that was unused. We charged around $400 a month per room, but nowadays you can definitely get a lot more (especially depending on where you live).
Here’s a quick step-by-step guide to finding a roommate and getting paid:
Advertise Your Space – You will need to find ways to get the word out about the spare room you want to rent out. You can do this on Craigslist, your personal Facebook page, placing a post in a local Facebook group, and more.
Vet Potential Roommates – You don’t want just anyone living with you as they will be sharing your space! Here are some ways to vet potential roommates:
Interviews: Have a conversation to make sure everyone is compatible.
References: Ask for and check personal and rental references.
Discuss Financials – This is all about money, so money definitely needs to be talked about and agreed on. You’ll want to think about things like:
Rent: Determine the monthly charge for rent.
Utilities: Decide how you’ll split costs like electricity, internet, and water. Will the monthly rent include all of the bills or will you split the utilities?
Set House Rules – Rules like quiet hours, guest policies, and cleaning responsibilities help avoid conflicts.
Create a Formal Agreement – Writing an agreement will lay everything out so that there is no confusion later.
Lease Addendum: If you have a lease, add your roommate officially.
Roommate Agreement: Outline terms of rent, bills, and house rules.
To learn more about renting out your spare room, I recommend reading A Complete Guide To Renting A Room For Extra Money.
If you want to take it a step further, you could even get into real estate investing. You can learn more about this option at How This 34 Year Old Owns 7 Rental Homes.
Rent out baby items, such as a crib
If you’re looking to make $200 fast, you can rent out your gently used baby items to traveling families. By listing a crib, stroller, or car seat on rental platforms, you can help ease the travel burdens for parents while earning extra cash.
Here are some ideas of what you can rent out:
Cribs
Strollers
Car seats
High chairs
Toys
A website called BabyQuip lets you rent out baby equipment. On average, people using BabyQuip can make about $1,000 a month, and some earn over $10,000 monthly.
Redeem credit card rewards
If you have a credit card, then there’s a good chance that you are earning points by simply spending like you normally do.
Or, you could even sign up for a new card that has a good signup bonus to earn more points.
With rewards credit cards, you can turn your points into cash back. Here’s how it works: whenever you use your credit card to buy something, you earn points as a reward for spending money.
I have rewards credit cards and I earn points every single time I shop or pay a bill, and I don’t have to do anything special. Just pay my bills and expenses like I normally do! In fact, I just signed up for a new rewards credit card with a great signup bonus today with a signup bonus value of over $800.
Two credit cards that I personally like include:
Important note: Making the most of credit card rewards is smart only if you use your credit card responsibly. It’s not a good idea to accumulate debt just to get rewards because debt with interest is neither free nor beneficial. To really earn money from credit card rewards, you will want to make sure to pay your credit card balance in full every month.
Frequently Asked Questions
Below are answers to common questions about how to make $200 quick.
How can I make a quick $200?
If you want to learn how to make $200 fast in a day, then I highly recommend finding items from around your home to sell, like clothing, jewelry, and video games. This is the easiest way to get started as you probably already own things you can sell.
How can I make an extra $200 a week?
If you want to make an extra $200 a week, I recommend freelance work, which might include writing, graphic design, or proofreading. Also, renting out things you already have, like a spare room, can be a great way to make passive income.
What items can be sold to quickly earn $200?
Look around your home for electronics, clothing, or collectibles that are in good condition but you no longer need or want. You may be able to find lots of things to sell (and have a yard sale) and/or find one or two big things to sell.
How to make $200 fast online from home?
I’ve done a lot of things on the list above to make $200 fast online from home, such as freelance writing, blogging, selling items online, taking part in a focus group, and more.
How To Make $200 Fast – Summary
I hope you enjoyed this article on how to make $200 fast in a day.
As you learned above, you can earn $200 fast by doing a lot of different things, such as by freelancing, starting a business, renting out something you already own, playing games, and more.
The key is to choose what fits your life, how much time you have, and your money needs right now.
What do you think is the best way to make $200 fast?
Whether you’re buying a house or a car, financing a wedding or vacation, embarking on a major home renovation, paying for rising medical costs, or even consolidating debt, you might need to take out a loan.
But what about when you’re retired?
Even though they don’t earn a traditional income from a paying job, retirees can still take out loans. Requirements for retirees to secure a loan might be a little stricter, but it’s certainly possible.
Below, we’ll dive into loans for retired people — how they work, common types, and where to find them.
What Are Retiree Loans?
A retiree loan is any loan that you take out in retirement. It doesn’t refer to one specific type of loan, but rather a collection of loan types available to anyone in retirement, as long as they qualify.
Qualifying for a loan as a retiree can be more challenging than someone who is still employed full-time, since lenders like to see steady income. But many retirees have reliable sources of income outside of a job that can help them qualify. 💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.
Considerations for a Loan
When considering loans for retired individuals, lenders may consider a number of income sources, as well as an applicant’s debt-to-income ratio and credit score.
Retirement Income
One of the main sources of income for seniors who no longer work is their retirement accounts. If you are retired, you might receive regular payments from an IRA, 401(k), pension, and/or Social Security.
Collectively, these accounts make up your retirement income. And they may be significant enough to take out a retiree loan, like a personal loan, car loan, or even a mortgage.
Fixed Income
Retirees may have other sources of fixed income beyond their retirement income. For example, retirees might earn income from investments, earn annuity income, or receive spousal or survivor’s benefits. Retirees may also generate revenue from rental properties.
If any of these are limited sources of income — that is, they’ll run out eventually — the lender might require proof that you’ll at least receive that income for a set number of years. Without that proof, they might not factor in that source of income when determining loan eligibility.
Some retirees continue to work, whether full- or part-time or even as a contractor. If you’ve taken up a side hustle, like driving for a rideshare service or acting as a consultant in the field from which you retired, your 1099 income may also help when applying for a loan in retirement.
Assets
Retirees who have a significant portion of their money tied up in assets may be able to leverage those assets to secure a loan. For example, mortgage lenders might offer a securities-backed loan.
Securities-backed loans offer retirees liquidity without selling their assets. Instead, the lender can claim ownership of your assets — stocks, bonds, and real estate, for instance — if you default on your loan.
Because investment values fluctuate, a lender will likely consider only a reduced value of your assets (up to 70%). This protects them in the event that your assets decrease in value during the life of the loan.
Debt-to-Income Ratio
Lenders consider more than just your income when you apply for a loan, especially in retirement. They’ll also look at your debt — and thus your debt-to-income (DTI) ratio.
Your debt-to-income ratio is a calculation of all your monthly debts divided by your gross monthly income. This might include credit card debt, mortgage payments, car loans, personal loans, and even student loans.
For example, if your monthly debts total $2,000 and your monthly income is $10,000, your DTI ratio is 2,000 / 10,000. That’s 0.20, or 20%.
The higher your DTI ratio, the less likely a lender is to approve you for a loan. While requirements will vary by lender and the type of loan you’re applying for, you’ll likely have a harder time securing a loan if your debt-to-income is 50% or higher.
Credit Score
As with any other loan, lenders will also factor in your credit score when you apply for a retiree loan. By improving your credit score, you increase your chances of getting a loan.
So what affects your credit score? Generally, five key factors can influence your rating:
• Credit utilization
• Payment history
• Credit history length
• Credit mix
• New credit
Retirees generally have longer credit histories, especially if they keep credit cards open and have been paying a mortgage for decades. By paying your bills on time, keeping your credit usage down, and resisting the temptation to apply for new credit cards, retirees may be able to raise their credit scores ahead of applying for a larger loan in retirement.
Where to Find a Retiree Loan
Retirees can look for loans in the same places that other borrowers do. Financial institutions like banks and credit unions generally offer a wide range of loans, from mortgages and car loans to personal loans and debt consolidation loans. Your own bank or credit union is a good place to start.
Where you get a retiree loan can also depend on the type of loan. For example, if you’re purchasing a new car, the dealership may help you find financing. When you work with a real estate agent to buy a home, they might put you in touch with a lender.
Common Retiree Loans
Retirees have access to a wide range of loans depending on their needs. Here are some of the most common types of retiree loans you might come across:
Home Equity Loan
A home equity loan allows you to borrow against the equity you’ve built in your house. You generally need to have paid off at least 15% to 20% of your home to have enough equity for a loan; the more you’ve paid off, the larger the loan could be.
You might use a home equity loan to fund a renovation project, medical payments, or even debt consolidation. But remember, your house serves as collateral, so it’s important to make your payments.
Reverse Mortgage Loan
Reverse mortgage loans are available to people who are 62 or older who have paid off most of their mortgage or own their homes outright. When you get a reverse mortgage, you retain the title to the home and don’t have to pay the loan (and interest) until the last surviving borrower has moved out permanently.
Reverse mortgage loans are not for everyone. Weigh the pros and cons of a reverse mortgage before moving forward.
Debt Consolidation Loan
Retirees who are struggling with various debts may choose to consolidate in a single loan, ideally at a lower interest rate. Consolidating your debt means only a single monthly payment, but it could extend the number of years it’ll take you to be debt-free. 💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why SoFi credit card consolidation loans are so popular.
401(k) Loan
If you’re strapped for cash ahead of retirement, you may be able to borrow from your 401(k) account balance before you start receiving distributions. Doing so has certain tax implications to review with your accountant.
Unfortunately, you cannot take out an IRA loan, though if you’re 59 ½ or older, you may be able to make early withdrawals penalty-free.
Personal Loan
You can take out a personal loan for almost anything — wedding costs, home improvements, even credit card debt consolidation. Personal loan interest rates and terms vary depending on the length of the loan. For example, SoFi offers personal loans with low interest rates, and there are no fees required.
Just make sure you have the right credit score for a personal loan before applying. Bad credit borrowers may qualify, but the interest rates can be significantly higher.
Payday Loan
Seniors in retirement may also take out payday loans in an emergency, but keep in mind that there are a lot of risks with payday loans, including high costs.
Requirements for Getting a Personal Loan as a Senior Citizen
Lenders have similar requirements for all applicants, including retirees. The notable difference is that your sources of income will be different from an employed individual receiving a steady paycheck.
Here’s what lenders will generally look for when deciding to approve your loan application:
• Your sources of income (retirement distributions, Social Security, investment revenue, part-time work, etc.)
• Age (some lenders may not give out loans to borrowers who are 75 or older)
• Credit score
• Debt-to-income ratio
• Collateral or assets
The Takeaway
Retiree loans refers to any loan you take out in retirement. Depending on your needs and financial goals, it may make sense to apply for a personal loan, home equity loan, 401(k) loan, debt consolidation loan, or other loan type. Retiree loan requirements are similar to those of any other borrower; you’ll just have to demonstrate other sources of income since you’re no longer employed full-time.
You’ll also need a low debt-to-income ratio and a high credit score.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
FAQ
What are retiree loans?
Retiree loans are any type of loan you get in retirement. Retirees may take out personal loans, mortgages or reverse mortgages, home equity loans, and even debt consolidation loans.
What are the requirements for a retiree loan?
Requirements for a retiree loan are similar to those of other borrowers. Lenders will need to see all your sources of income, and you’ll also need a low debt-to-income ratio (generally below 50%) and high credit score (requirements vary by type of loan). You’ll also need assets to back up a secured loan.
Where can I get a retiree loan?
Retirees can look for loans anywhere that other borrowers might apply for a loan. Common retiree loans include home equity loans, 401(k) loans, debt consolidation loans, and personal loans. Because retirees typically no longer have a traditional source of income (i.e., a paying job), they may have to meet additional requirements to qualify for a loan.
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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Wondering how to set financial goals you’ll actually follow through on? Have questions about how to avoid end-of-year financial regrets? The Nerds have you covered! Take your New Year’s Resolutions to the next level by establishing SMARTR financial goals that you can achieve in 2024.
Explore strategies for setting realistic goals in 2024 with hosts Sean Pyles and Elizabeth Renter as they discuss “regrets and resolutions” and share ideas to help you take your 2023 experiences in stride, learn from them, and use them as stepping stones for creating a stable financial future.
They explore some of the financial regrets that haunted many Americans in 2023, including overspending and saving too little, and provide tips for avoiding common financial regrets, such as taking on too much credit card debt. Sean also explains his SMARTR framework for setting and achieving goals, which you can apply to your New Year’s Resolutions or any other goal you have in 2024.
In their conversation, the Nerds discuss: SMARTR financial goal setting, financial regrets, setting realistic goals, budgeting, saving, credit card debt, large expenses, New Year’s resolutions, goal setting framework, emergency funds, and retirement savings.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Happy New Year, dear listener. I hope you’re recovering from any festivities that helped you bring in 2024. Did you make any resolutions? Here at Smart Money, we’re not really into those, but goals are okay, and so is looking back at the mistakes you made last year, so you hopefully don’t make them again.
Elizabeth Renter:
I like to think of my financial goals similarly to how I think about my health goals. I can’t do this all or nothing stuff. It’s totally unsustainable and it creates this very unhealthy pattern of extreme restriction and then indulgence. So not spending anything on takeout is very unrealistic for me, and I know that, just like totally giving up pizza.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Elizabeth Renter:
And I’m Elizabeth Renter.
Sean Pyles:
This episode kicks off our Nerdy deep dive into your money in 2024. In this special series throughout the month, we’ll be looking at everything from investing to the housing market to how to manage credit as you move through this year. Elizabeth, any money, hopes and dreams for 2024?
Elizabeth Renter:
Well, I am planning a lot of travel in the coming year, so I suppose the money, hopes and dreams of that would be finding the right flights and hotels to do it in style without overpaying. I’m actually planning the strategic opening of a new credit card account to help make this happen.
Sean Pyles:
Very Nerdy, Elizabeth. Well, I’m with you. I’d say my main financial hopes and dreams are to finish up school to become a certified financial planner professional. Still about 10 months to go on that. And as ever, I’m trying to tame the internal beast that is my desire for the impulse purchase.
Elizabeth Renter:
Well, congrats in advance on the CFP, Sean. I’m actually finishing grad school this year, so we will absolutely have to toast to achieving these goals when we get there.
Sean Pyles:
Absolutely, because I am sure we will need it then.
Elizabeth Renter:
100%, Sean. I like that we’re talking about hopes and dreams here instead of resolutions. New Year’s resolutions seem to be such an overdone hoopla at the beginning of the year, and it does give you some early motivation, but that motivation fizzles out by March. So we start each year with these huge new year, new me resolutions, and then life or the economy gets in the way and falling short feels really, really bad. Life happens to all of us and we really shouldn’t beat ourselves up with these regrets. But maybe instead look at what went wrong and how to adjust moving forward on any schedule, not just the calendar year.
Sean Pyles:
Totally. I mean, I’m all for goal setting and having a well-planned approach for accomplishing goals because in fact, goal setting is one of the most important things that we need to do in our financial lives because money is just a means to an end. And if we don’t know what we want from our money or how we will accomplish it, making meaningful progress in life can be quite difficult. But that said, the resolution framing can be overly rigid or lead people to make unrealistic goals that lead to self-flagellation when you don’t accomplish them.
Elizabeth Renter:
Yes, for sure, Sean. Listen, goals are my love language, my love language to me. When I whisper sweet nothings to myself, it seriously often involves big goals.
Sean Pyles:
Whatever helps you accomplish them, I suppose. But practicing self-care and self-love is important and we are going to follow that advice today, although we are going to look back at some regrets, but only in the way that we can learn from them going forward. And we’re going to call it Regrets and Resolutions because that just scratches the alliteration itch in my brain. But really it’s all about goals this episode. All right, well listener, we want to hear what you think too. Send us your financial hopes and dreams for 2024. Leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-NERD, or email a voice memo to [email protected]. Stay with us. We’re back in just a moment with some ways to plan a good year in money.
Elizabeth Renter:
Sean, I wish I ended the year with more in the bank, but I think that’s pretty true every year. I can’t really point to one thing and say I wish I would’ve done it differently. So maybe no true regrets. How about you?
Sean Pyles:
No “regerts.” Well, I regret that I have to pay my student loans again. But on the whole, I’m feeling pretty good about how I managed my finances last year, although I guess the real test will be when I go to file my taxes.
Elizabeth Renter:
For sure. Well, interestingly, about two thirds of Americans do have some money regrets from 2023. At NerdWallet, we commissioned a survey with The Harris Poll towards the end of last year. And one silver lining of all of those regrets is that 75% of those people say they’re going to use them to do better this year. And Sean, we had a lot of headwinds to contend with last year.
Sean Pyles:
Yeah, we started off 2023 with high inflation and then to combat that, the Fed kept hiking interest rates, and throughout the year, everything from credit cards to mortgages became more expensive. So Elizabeth, let’s talk about some of those regrets people had. What is the biggest one?
Elizabeth Renter:
Americans wish they had saved more in 2023. Almost one fourth regret not saving enough for their financial goals and 21% regret not saving more for emergencies.
Sean Pyles:
That makes sense. American’s personal savings rate or the amount of disposable income that we save went through the roof early in the pandemic, spiking as high as 32% in April 2020, but we’re saving a lot less now. In October 2023, the personal savings rate was a lot lower at nearly 4%. So is it possible to say how likely it is that people will be able to save more money this year?
Elizabeth Renter:
Well, it depends. As you said going into 2023, some households still had that excess savings from pandemic stimulus payments and student loan forbearances. So if you’re coming into 2024 with less in the bank and higher debt payments, it could be more difficult. That said, inflation is moderating. So the costs that were rising at a pretty considerable clip one year ago have slowed and wages in some cases have caught up.
Sean Pyles:
Okay, well, let’s give a few tips for fixing this regret.
Elizabeth Renter:
Sure. Well, I’d like to focus the biggest piece of advice on that one in five Americans who regret not saving for emergencies. That’s definitely where you should start. Ideally, you’ll have several months worth of living expenses set aside in case of emergencies, but that can be a very tall order, especially if you’re starting from zero. So start small, aim for a few hundred dollars and then up it to $500 and then $1,000 and so on. And whether you’re saving for emergencies or a home down payment, set specific benchmarks to help you get there. For example, that could mean setting up a direct deposit into a savings account for $100 out of every paycheck with the goal of having $1,200 by mid-year. So you’re setting specific dollar amounts and timelines and it’s automated.
Sean Pyles:
Love it. And we’ll talk later on about how important it is to take small steps when you’re trying to achieve big goals like building a solid emergency fund. So Elizabeth, what is next on the list of Americans’ money regrets from 2023?
Elizabeth Renter:
Overspending. 22% of Americans regret overspending on entertainment in 2023. So that includes dining out, going out for drinks, going to the movies and that sort of thing. Also, about 1 in 10 regret overspending on travel and 11% regret overspending on an event like a wedding or a graduation party.
Sean Pyles:
We had a lot of big events in 2023. I mean between Taylor Swift’s Eras tour and Beyonce’s Renaissance tour, there were some expensive events last year. Although I bet the folks who got tickets to those concerts do not regret spending a single penny on those experiences. Elizabeth, did you see any expensive concerts last year?
Elizabeth Renter:
Unfortunately, no. I currently live in a really small town with exactly zero venues. So had I gone to a concert, it definitely would’ve cost a pretty penny. What about you, Sean?
Sean Pyles:
Well, I did see Diana Ross when she came to town, but to be honest, I actually have no idea how much those tickets were because my partner bought them. I kind of just wanted to brag about seeing the boss on tour. Anyway, I guess the overspending regret isn’t totally surprising. Part of the reason people can’t save is that they’re potentially overspending.
Elizabeth Renter:
Yeah, for sure, Sean. Those things often go hand in hand, especially when prices are rising.
Sean Pyles:
And frankly, if you were overspending last year, you were part of the reason the economy kept humming along. So thank you, but maybe don’t do it as much this year. So Elizabeth, any ideas to make that happen or more to the point, not happen?
Elizabeth Renter:
Well, Sean, the answer to this regret is the very unsexy panacea: a budget. Listen, some people love a budget. They have spreadsheets outlining their spending limits and where all of their money is going. Here’s looking at you, Nerds. But you don’t have to go that far if you know that’s unrealistic for you. Instead, set a budget for the things you need budgeting help on. If you overspend on dining out, set a weekly limit for that. If you overspend on travel, set an annual travel budget. Sometimes the idea of a capital B budget is super off-putting, but you can benefit from these very specific targeted spending limits too.
Sean Pyles:
Yeah, people’s eyes, or I guess in the case of a podcast, people’s ears, can glaze over when you talk about budgets, but I like to think of them more as a conversation that you’re having with your finances. You are figuring out what money you have to work with, where you’re going to allocate it and determining how to live your values through your daily spending. And I find that really empowering, personally.
Elizabeth Renter:
Sean, as a Nerd, you would. That totally tracks.
Sean Pyles:
Yes. Fair enough. Well, let’s move on to regret number three.
Elizabeth Renter:
In 2023, 16% of Americans regret not reducing or paying off their credit card debt and 16% regret taking on too much credit card debt.
Sean Pyles:
And this is just perennial. I mean, this is something people struggle with and come to regret year in and year out. What would be your top things to keep in mind in 2024 if you’re struggling with this?
Elizabeth Renter:
Well, you’re absolutely right, Sean, but we did see credit card debt shrink during 2020 and 2021. So as we spent down that excess savings and embarked on revenge travel in 2023, we may have seen folks go back to relying on cards the way that they did before the pandemic, and now we have high interest to go with it. So if you’re taking on more debt, it could be more difficult to pay it off. So first off, if you’re hoping to pay down debt, I’d refer back to my earlier suggestion about making very clear targets, specific amounts and timelines. But if you’ve begun using credit cards in lieu of an emergency fund, the problem could be bigger. In that case, you may want to look into debt relief options like consolidation or debt management to help identify resources and formulate a plan to get your finances back on track.
Sean Pyles:
Well now that we’ve dealt with regret, how about some resolutions or let’s call them goals, even though I still love the alliteration of regrets and resolutions. Elizabeth, you mentioned earlier in the show that you don’t really like to make resolutions and I don’t really either, frankly. Can you talk a bit about why, especially in the realm of personal finance?
Elizabeth Renter:
Yes. So I like to think of my financial goals similarly to how I think about my health goals. I can’t do this all or nothing stuff. It’s totally unsustainable and it creates this very unhealthy pattern of extreme restriction and then indulgence. So not spending anything on takeout is very unrealistic for me, and I know that just totally giving up pizza. If I restrict myself this way, I won’t just fall off the wagon, I will absolutely crash the wagon and burn down the entire village. I’ll celebrate not having takeout for a month by splurging on takeout that costs twice as much.
Sean Pyles:
Yeah. One extreme to the other.
Elizabeth Renter:
Right, exactly. And then you’re dealing with the regret of all of it too. So I try to find balance between what’s going to get me closer to my long-term objectives while not making my life miserable.
Sean Pyles:
Yes, I am also all about going slow and steady while giving myself room to just be human and mess up every once in a while. Also, Elizabeth, something that our listeners might not know is that you’re a competitive powerlifter, so you know a thing or two about sticking to ambitious health goals.
Elizabeth Renter:
I try. I try.
Sean Pyles:
Yes. Within reason that you’re not lifting too much weight, hopefully injuring yourself. But going back to the resolution versus goal thing, I think the time box of a resolution as something that you focus on for only one year or realistically, maybe a single month before you totally forget about it, can be really limiting when it comes to financial goals. The resolution framing can lead people to expect huge and dramatic changes in their finances a lot faster than is actually possible. The truth is that it can take years to build up that solid emergency fund, not to mention how long it takes to save for retirement, but that is not to say that you can’t take steps today or tomorrow and the next day to better your finances. In fact, those steps that you do take today are in all likelihood the only things that will get you there.
Elizabeth Renter:
You’re absolutely right, Sean. Those incremental changes and growth really do build up over time, whether we’re talking about money or power lifting. You just keep plugging away and accept sometimes that that path is not going to be linear.
Sean Pyles:
Yeah, for sure. Well, we kind of went through some advice for not repeating the regrets we might’ve had in 2023. How do you think about that as different from goal setting?
Elizabeth Renter:
From my perspective, regrets and setbacks are really just things that happen on your way to a goal. You’re going to have periods of progress and periods that don’t go quite like you wanted. Sometimes those setbacks are your doing entirely and other times they’re not. But they generally don’t upend your ability to attain your goals altogether. Maybe I had to divert some of my monthly savings towards an unexpected car repair, or maybe I went over my travel budget. Does that mean I won’t hit my savings or spending goals? Not necessarily. It might set them back by a few months, but it doesn’t quash my goals. They’re still attainable.
Sean Pyles:
Yeah, it’s all about giving yourself grace and focusing on that long-term. All right, well let’s suggest a few financial goals that people could endeavor to achieve over the coming year. What would be your first suggestion?
Elizabeth Renter:
Well, Sean, I’m going to give the mom advice that we probably all need to hear, and that is try your best. Set a goal to just try your best, but don’t just give that lip service. Really try your best. And the thing I like about this goal is that it looks entirely different for different people. For some, setting aside, $50 a month for 6 months into a brand new emergency fund will be their baseline goal. And for others it might be bumping up their retirement contributions to, I don’t know, 12% of their salary. In either case, you could hit a tough month and have to adapt, but don’t in that situation just throw up your hands and exclaim, “Yeah, all bets are off. I guess I’ll try again next year.” Keep going. Just keep doing the best you can. What about you, Sean?
Sean Pyles:
Well, I touched on this earlier, but I’d recommend people spend time getting more acquainted with their relationship between their spending and their values. It can be easy to just spend in a way that’s not super thoughtful or not aligned with the values that we hope to embody each day. So going back to that budget conversation you’re having with yourself, think about what you want from your life and what kind of world you want to live in. And then ask yourself if you are directing your money accordingly. That’s a question that I try to ask myself a lot, and the answer isn’t always going to be yes, but it’s something to be mindful of. Okay, how about one more?
Elizabeth Renter:
Well, I like what you just said, Sean. Being more mindful of how you spend can help keep you from those overspending regrets. And building on that, I’d suggest taking steps to literally slow down when you’re spending. If you just loaded up a cart at an online retailer, make a practice or a goal of just walking away and coming back tomorrow. Give it a day before you check out. I do this and frequently find I’ve mindlessly thrown things in the cart that I really don’t want to spend my money on.
Sean Pyles:
Yeah, I love that. And as a person of the ADHD experience, I can sometimes get hyper fixated on a purchase that I want to make, but if I build in that buffer of a day or two, I’ll find that I actually don’t want that thing after all. And if I don’t buy it, that means I have more money for things I actually do care about. So as we make these suggestions for resolutions/goals, how about we provide some advice for how to actually make them happen? What do you do on that front? Any personal tips, Elizabeth?
Elizabeth Renter:
Yeah. Well, for the big goals, I tell somebody, I have a seriously big fear of looking like I fell short. And by telling someone what I’m trying to achieve, I build in that accountability. Sean, I know accomplishing goals is something of a pet topic of yours. So what about you?
Sean Pyles:
Yes, I do also love an accountability partner. I’ve made my life partner, Garrett, my accountability partner for my CFP coursework. I’ll tell him that I’m going to do X assignment. And even if I don’t feel like doing it, just knowing that I told him that I would do it can push me to actually get that work done and do it in a way that’s meaningful. So I’m learning what I need to learn.
Elizabeth Renter:
Exactly. Sean, so you want to give us the rundown of how to actually accomplish goals this year?
Sean Pyles:
Yes, I would love to. So we use the SMART goal setting framework here at Smart Money, perhaps not totally surprising, and I add my own twist by making them SMARTR goals. So for those who are not familiar, SMART is an acronym for Specific, Measurable, Attainable, Relevant, and Time-Bound. And the extra R that I add at the end is for Rewarded. And I’ll explain why in a little bit.
Elizabeth Renter:
I’m excited to hear this, Sean. So walk us through how it all works.
Sean Pyles:
Okay, starting with the S, specific, make your goal very clear and tangible. For example, maybe you have a goal of investing more this year. Okay, great, but what does that really mean? Are you going to max out your IRA or 401(k)? Or get set up with a robo-advisor account? The more precisely you can envision your goal, the easier it will be to map out the path to get there.
Elizabeth Renter:
That makes perfect sense. You can’t accomplish a goal if you don’t know what it is.
Sean Pyles:
Yeah, exactly. So now onto the M, measurable, you need a way to quantify your goals and track the progress that you’re making. So to continue that investing example, if you want to max out your IRA, the maximum you can contribute in 2024 is $7,000 or $7,500 if you’re 50 and older. Figure out how much you would need to contribute each month to hit that goal.
Elizabeth Renter:
So quick mental math. Totally not using a calculator here. If you want to hit that $7,000 amount, you’d need to contribute about $583 each month and then track your progress throughout the year, maybe on a spreadsheet or in a journal.
Sean Pyles:
Yep. Okay. And that brings me to the A in SMARTR goals, attainable. For a lot of people contributing $583 a month into a retirement account just is not feasible. So in that case, what’s a more affordable option? Look into your monthly income and expenses, that whole budgeting conversation we’ve been talking about, and see how much you could actually contribute. Maybe it’s $200 a month, so you would contribute a total of $2,400 to your IRA over the year, which is still awesome.
Elizabeth Renter:
Very awesome. Okay, Sean, we have the specific, the measurable, the attainable. What about the rest? This is testing my spelling as much as anything.
Sean Pyles:
Yes. So the R and the T stand for relevant and time-bound. You want your financial goal to be something that’s actually relevant to your life goals, your passions, and your values. If you’re contributing to a retirement account because you think it’s what you should be doing and it’s not something you actually care about, you’re not really likely to meet that goal. And with time-bound, that is when you put a time box on your goal. So to round out this example, if you want to save a certain amount for retirement in the calendar year of 2024, you’d have the monthly steps that you take to meet your annual goal. And at the end of the year, guess what? You did it. Goal accomplished.
Elizabeth Renter:
Yay. Congratulations. But wait, Sean, you mentioned that R, your finishing touch. What’s that all about?
Sean Pyles:
Yes, I’m so glad you didn’t forget that, Elizabeth. The final R is for Rewarded. As the child of behavioral psychologists, I am a big proponent of positive reinforcement and making the process of accomplishing your goals as enjoyable as possible. Because the more you like doing something, the more likely you are to keep doing it. So build in rewards as you take the small daily or monthly steps towards achieving your goal.
Elizabeth Renter:
I love that idea. So when someone makes that monthly deposit into their IRA, maybe they go out for ice cream or do a shot of tequila, whatever makes them happy.
Sean Pyles:
Exactly. Yeah, just don’t go too wild. You don’t want to blow your retirement savings budget on that top shelf tequila. So that is the SMARTR framework, and it can be really helpful as you accomplish goals over the coming year. But also as you’re working away to save for retirement or whatever, I want to encourage you, listener, to give yourself grace if you’re not able to fulfill all of those goals this year. Like Elizabeth said, life happens. You might have a big expense one month that sucks up the money you would’ve put toward retirement. That’s okay. Take a breath, regroup, and just pick up the pieces next month. No matter what, just please don’t be harsh with yourself. It is simply not worth it. Try your best. That’s all you can do.
Elizabeth Renter:
Well said, Sean, do your best and keep going. You might not see other people struggling towards their goals, but they are. Remember all those Americans who had money regrets last year? This isn’t a linear process. Sometimes things are hard and sometimes they surprise you with how well they go.
Sean Pyles:
So what we’ve learned today is that A, lot of people have money regrets from 2023. B, you can use those to change habits in 2024. And C, make some SMARTR goals instead of resolutions when it comes to your finances.
Elizabeth Renter:
I like it, Sean. So what’s next for this 2024 look ahead series?
Sean Pyles:
Well, Elizabeth, we are going to take a look at what this year might bring in investing. Not that anyone can predict the markets, but that’s kind of the point.
Alana Benson:
If you have a well diversified portfolio and you’re investing for the long-term, like for retirement, there’s no real reason to stress about the ups and downs of the market in the short term. And yes, in this instance, again, one year is the short term.
Elizabeth Renter:
For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Also visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Sean Pyles:
This episode was produced by Tess Vigeland and Elizabeth. I helped with editing. Kathy Hinson helped with fact-checking. Kaely Monahan mixed our audio. And a big thank you to NerdWallet editors for all their help.
Elizabeth Renter:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
You’ve probably come across the term “asset” many times in your life — long before you began saving and investing.
What is an asset? Generally, the word may be used to refer to anything of value — from a great work ethic to a great group of friends. But when you’re talking about finances, the term asset is typically used to refer to things that have economic value to a person, a company, and/or a government.
Exploring the Definition of an Asset
For individuals, an asset can mean pretty much everything they own — from the cash in their wallet to the car in their garage to necklaces, rings, and earrings in a jewelry box. But usually, when people talk about their personal assets, they’re referring to something worth money.
Broad Categories of Assets
Assets typically include such things as:
• Cash and cash equivalents, including checking and savings accounts, money market accounts, certificates of deposit (CDs), and U.S. government Treasury bills.
• Personal property, including cars and boats, art and jewelry, collections, furniture, and things like computers, cameras, phones, and TVs.
• Real estate, residential or commercial, including land and/or structures on the land.
• Investments, such as stocks and bonds, annuities, mutual funds and exchange-traded funds (ETFs), and so on.
Those who freelance or own a company also may have business assets that could include a bank account, an inventory of goods to sell, accounts receivable (money they’re owed by their customers), business vehicles, office furniture and machinery, and the building and land where they conduct their business. 💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
Delving Into Different Types of Assets
Generally speaking, there are four different types of assets: current or short-term assets, fixed assets, financial investments, and intangible assets.
Current Assets
Current assets are short-term resources with economic value, and are typically referred to in accounting. Current assets are things that can be used or consumed or converted to money within a year. They include things like cash, cash equivalents, inventory, and accounts receivable.
Fixed or Noncurrent Assets
Fixed assets are resources with a longer term, meaning more than a year. This includes property, like buildings and other real estate, and equipment.
Financial Assets
Financial assets refer to securities or assets such as stocks, bonds, certificates of deposit (CDs), and preferred equity.
Intangible Assets
Assets considered intangible are things of value that don’t have a physical presence. This includes intellectual property like patents, licenses, trademarks, and copyrights, and brand value and reputation.
Identifying and Classifying Assets
Assets are things with economic value. They may be owned by you, like a sofa or your computer, or owed to you, like the $50 you loaned a friend. The loan or borrowed money is considered an asset for you since your friend will repay it to you.
Personal vs Business Assets
There are both personal assets and business assets. Personal assets include such things as your home, artwork you might own, your checking account, and your investments. Business assets are things like equipment, cash, and accounts receivable.
Liquid Assets and Their Convertibility
Liquid assets are things of economic value that can be quickly and easily converted to money. Liquid personal assets might include certain stocks, and liquid business assets could include inventory.
Assets in Accounting and Business Operations
In business, assets are resources owned by a business that have economic value. They might refer to the building the business owns, inventory, accounts receivable, office furniture, and computers or other technology.
How Assets Reflect on Financial Statements
Business assets are listed on a company’s financial statements. Ideally, a company’s assets should be balanced between short-term assets and fixed and long-term assets. That indicates that the business has assets it can use right now, such as cash, and those that will be available down the road.
The Distinction Between Assets and Liabilities
Assets are resources an individual or business owns that have economic value. Assets are also things owed to a business or individual, such as payment for inventory. A liability is when a business or individual owes another party. It could include things like money or accounts payable.
Asset Valuation and Depreciation
Asset valuation is a way of determining the value of an asset. There are different methods for determining value, such as the cost method, which bases an asset’s value on its original price. But assets can depreciate over time. That’s when an accounting method known as depreciation is used to allocate the cost of an asset over time.
Real-World Examples of Assets
As noted, assets can run the gamut from the physical to the intangible. What they all have in common is that they have economic value.
Everyday Items That Count as Assets
Many items that you use or deal with in your daily life are considered assets. This includes:
• Cash
• Bank accounts
• Stocks
• Bonds
• Money market funds
• Mutual funds
• Furniture
• Jewelry
• Cars
• House
• Certificates of deposit (CDs)
• Retirement accounts, such as 401(k)s
High-Value Assets in Today’s Market
The larger assets you own tend to be more valuable, such as your house, a vacation home, or rental property. Your investments may also be considered high-value assets, depending on how much they are worth. 💡 Quick Tip: Automated investing can be a smart choice for those who want to invest but may not have the knowledge or time to do so. An automated investing platform can offer portfolio options that may suit your risk tolerance and goals (but investors have little or no say over the individual securities in the portfolio).
The Nuances of Non-Physical and Intangible Assets
Intangible assets, or those that have no physical presence, can be extremely important and quite valuable. So it’s wise to be aware of what they are.
Understanding Goodwill, Copyrights, and Patents
Intangible assets are such things as copyrights (on a book or piece of music, for instance) and patents (for an invention). A copyright protects the owner who produced it, and a patent protects the patent owner/inventor. What this means is that another party cannot legally use their work or invention without their permission.
Goodwill is another intangible asset, and it’s associated with the purchase of one company by another company. It is the portion of the purchase price that’s higher than the sum of the net fair value of all of the company’s assets bought and liabilities assumed.
For example, such things as brand value, reputation, and a company’s customer base are considered goodwill. These intangibles could be highly valued and the reason why a purchasing company might pay more for the company they are buying.
The Role of Digital Assets in the Modern Economy
Digital assets refer to such things as data, photos, videos, music, manuscripts, cryptocurrency, and more. Digital assets create value for the person or company that owns them.
Digital assets are becoming increasingly important as individuals, businesses, and governments use them more and more. With more of our every day resources online, and with data stored digitally, these types of assets are likely to be considered quite valuable.
Labor and Human Capital: Are Skills and Expertise Assets?
Labor is not considered an asset. Instead, it is work carried out by people that they are paid for.
Human capital refers to the value of an employee’s skills, experience, and expertise. These things are considered intangible assets. However, a company cannot list human capital on its balance sheet.
Navigating Asset Management
As an investor, you’re also likely to hear about the importance of “asset allocation” or “asset management” for your portfolio. Asset allocation is simply putting money to work in the best possible places to reach financial goals.
The idea is that by spreading money over different types of investments — stocks, bonds, cash, real estate, commodities, etc. — an investor can limit volatility and attempt to maximize the benefits of each asset class.
For example, stocks tend to offer the best opportunity for long-term growth, but can expose an investor to more risk. Bonds tend to have less risk and can provide an income stream, but their value can be affected by rising interest rates. Cash can be useful for emergencies and short-term goals, but it isn’t going to offer much growth, and it won’t necessarily keep up with inflation over the long term.
When it comes to volatility, each asset class may react differently to a piece of economic news or a national or global event, so by combining multiple assets in one portfolio, an investor may be able to help mitigate the risk overall.
Alternative investments such as real property, precious metals, and private equity ventures are examples of assets some investors also may choose to use to counter the price movements of a traditional investment portfolio.
An investor’s asset allocation typically has some mix of stocks, bonds, and cash — but the percentages of each can vary based on a person’s age, the goals for those investments, and/or a person’s tolerance for risk.
If for example, someone is saving for a wedding or another shorter-term financial goal, they may want to keep a percentage of that money in a safe, easy-to-access account, such as a high-yield online deposit account. An account like this would allow that money to grow with a competitive interest rate while it’s protected from the market’s unpredictable movements.
But for a longer-term goal, like saving for retirement, some might invest a percentage of money in the market and risk some volatility with stocks, mutual funds, and/or ETFs. This way the money may potentially grow over the long-term, and there may likely be time to recover from market fluctuations. As retirement nears, some people may wish to slowly shift their investments to an allocation that carries less risk.
The Role of Automated Asset Management Solutions
Businesses may want to consider using automated asset management systems to track and collect data on their assets. This may be easier than manually tracking assets, which could become complicated and overwhelming. There are a number of different software programs available that could help businesses with this.
Individual investors might want to think about automated investing programs to help manage their financial portfolio. These platforms may help those who want to invest for the long-term but don’t have the time or expertise to do it themselves.
However, It’s important to do your homework and consider the risks involved since automated platforms are not fully customized to each individual’s specific needs. You also need to be comfortable with the types of investments they may offer, such as ETFs, and make sure you understand the risks and possible costs involved.
Unpacking Asset Classifications Further
The assets you accumulate will likely change over time, as will your needs and your goals. So, it’s important to know the purpose of each asset you own — as well as which ones are working for you and which ones aren’t. Here are some questions you can ask yourself as you mindfully manage your assets:
1. Are you getting the maximum return on your investment, whether it’s a savings account or an investment in the market?
2. How does the asset make money (dividends, interest, appreciation)? What must happen for the investment to increase in value?
3. How does the asset match up with your personal and financial goals?
4. Is the asset short-term or long-term?
5. How liquid is the investment? How hard would it be to sell if you needed money right away?
6. What are the risks associated with the investment? What is the most you could lose? Can you handle the risk financially and emotionally?
If you aren’t sure of the answers to these questions, you may wish to get some help from a financial advisor who, among other things, can work with you to set priorities, suggest strategies for investing, assist you in coming up with the right asset allocation to suit your needs, and draw up a coordinated and comprehensive financial plan.
Short-term vs Long-term Assets
As a quick recap, short-term assets are those held for less than one year. They are also known as current assets. These assets are typically meant to be converted into cash within a year and are considered liquid. For individual investors they can include such things as money market accounts and CDs.
Long-term assets are those held for more than one year. Long-term assets can be such things as stock and bonds, as well as fixed assets such as property and real estate. Long-term assets also include intellectual property such as copyrights and patents. Long-term assets are not as liquid as short-term assets.
The Importance of Asset Liquidity
Liquid assets can be accessed quickly and converted to cash without losing much of their value. Cash is the ultimate liquid asset, but there are plenty of other examples.
If you can expect to find a number of interested buyers who will pay a fair price, and you can make the sale with some speed, your asset is probably liquid. Stock from a blue-chip company is generally an asset with liquidity. So, typically, is a high-quality mutual fund.
Some assets are non-liquid or illiquid. These assets have value, but they may not be as easy to convert into cash when it’s needed. Your car or home might be your biggest asset, for example, depending on how much of it you actually own. But It might take a while to get a fair price if you sold it — and you’ll likely need to replace it eventually.
While some investments have long-term objectives — including saving for a secure retirement — liquidity can be an important factor to consider when evaluating which assets belong in a portfolio.
Many unexpected events come with big price tags, so it can help to have some cash or cash equivalents on hand in case an urgent need comes up. General recommendations suggest having three to six months’ worth of living expenses stashed away in an emergency fund — using an account that’s available whenever you need it.
Some might also consider keeping a portion of money in investments that are reasonably liquid, such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). This way, ideally, the assets can be liquidated in a relatively quick timeframe if they are needed. (Although, of course, there’s never any guarantee.)
Choosing that original asset allocation is important — but maintenance and portfolio rebalancing is also key over time. As people attain some of their short- or mid-range goals (paying for that wedding, for instance, or getting the down payment on a house) they may wish to consider where the money will go next, and what kind of account it should be in.
As life changes, it is possible that the original balance of stocks vs. bonds vs. other investments is no longer appropriate for a person’s current and future needs. As a result, they may want to become more aggressive or more conservative, depending on the situation.
Rebalancing also may become necessary if the success — or failure — of a particular asset group alters a portfolio’s target allocation.
If, for example, after a big market rally or long bull run (both of which we’ve experienced in recent years) a 60% allocation to stocks becomes something closer to 75%, it may be time to sell some stock and get back to that original 60%. This way, an investor can protect some of the profits while buying other assets when they are down in price.
You can do your rebalancing manually or automatically. Some investors check in on their portfolio regularly (monthly, quarterly or annually) and adjust it if necessary. Others rebalance when a set allocation shifts noticeably.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
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Most people in the US have at least one credit card. These cards are a popular, convenient way to pay for items as you go about your day, tapping and swiping. They can also allow you to buy items that you can’t afford to pay for in one fell swoop, such as airfare to Hawaii or a new laptop.
But they have downsides, too; perhaps most notably, their high interest rates. At the end of 2023, one analysis found that the average interest rate was nudging close to 25%; two years earlier, the rate was hovering around 15%. That’s a considerable increase.
Here, you’ll learn more about how and why credit card payments can balloon as interest rates rise. You’ll also read advice on keeping your credit card in check, which can benefit your financial wellness.
How Interest Is Calculated
If you’re confused by all of the fine print that accompanies a credit card offer or the thought of an annual percentage rate (APR) calculation makes you wince, you probably aren’t the only one. To understand how rising rates can affect your credit card payment, it helps to understand a bit about how credit card interest is calculated.
• First, there are two types of consumer loans: installment loans and revolving credit. A mortgage, student loan, or car loan are all examples of installment loans. With an installment loan, the borrower is loaned an amount of money (called the principal), plus interest to be paid back over a designated amount of time.
• Revolving credit, on the other hand, is not a loan disbursed in one lump sum, but is a certain amount of credit to be used by the borrower continuously, up to a designated limit. A credit card is revolving credit. A borrower’s monthly payment is determined by how much of the available credit they are using at any given time; therefore, minimum payments may change from month to month.
Installment credit is sometimes easier than revolving credit to understand and calculate. First, installment loans often come with fixed rates, which means that the interest rate doesn’t change (unless you miss payments). For example, the rate on a federal student loan or a 30-year fixed mortgage won’t change, even if government-set interest rates shoot to the sun.
Revolving credit almost often has a variable rate, which means that the interest rate applied to the credit balance fluctuates.
The average rate on credit cards is quoted as an annual percentage rate, or an APR. The APR is the approximate interest rate that a borrower will pay in one year. Why approximate? The prime rate could fluctuate based on when the Fed changes the federal fund target rate. 💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.
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How Credit Card Interest Rates Change
Generally, when the Fed raises the federal funds rate, it can slow economic growth because it dissuades banks from lending money — and discourages consumers from borrowing at a subsequently higher interest rate. Raising rates is also used as a technique to combat rising inflation.
While this may be a normal and natural part of an economic cycle, rising rates can be frustrating for anyone who is currently carrying a credit card balance.
Credit card interest rates have risen as a result of 11 rate hikes enacted by the Federal Reserve (the Fed) since March 2022. Although the Fed does not control interest rates on credit cards directly, credit card interest rates are often pegged against the prime rate, which changes with the federal funds rate.
What Does a Rising Prime Rate Mean for Credit Card Holders?
A change in interest rates is likely to impact anyone with a variable rate on their credit card balance. When the Fed raises federal funds interest rates, it can be expected that credit card interest rates may follow.
How much would your credit card interest rate increase? It depends on your credit card. Generally, credit cards move in sync with rate hikes, which usually happen in quarter-percent increments.
However, the Fed has said, as of the end of 2023, that they don’t plan to raise rates further in the immediate future.
How to Combat a High Credit Card Bill
Here are some ideas for battling a high credit card bill and potentially paying less in interest over time:
1. Pay More Than the Minimum Payment
If at all possible, pay off as much of your credit card balance as you can each month. Making payments greater than the minimum amount due can help reduce your balance. The faster you can work on reducing the actual principal balance on your credit card, the less interest you’ll likely pay. If you only pay your credit card’s minimum payment, you may wind up in debt longer and paying more interest in the long run.
2. Switch to a Balance Transfer Card
Balance transfer credit cards typically have 0% APR introductory offers lasting for several months to a couple of years. If you’re serious about getting rid of your debt, you could transfer your debt over to one of these cards and then actively work on paying off the debt while you’re not paying interest.
If you do this, make sure to look for a card that has no transfer fee. Beware: If the root of the problem is actually overspending, this will not be a good long-term solution. Sometimes, 0% APR cards have interest rates that jump up dramatically after the trial period is over. And the 0% APR may no longer apply if you make a new purchase on the card.
3. Negotiate a Lower Rate
You might be surprised to find out that a credit card rate can be negotiable. It may be worth giving your credit card company a call and seeing whether they can reduce your rate.
When talking to the person on the other end of the line, explain your situation, be kind to them, and see what happens. Again, this isn’t a permanent solution or a guaranteed outcome, but it could help give you a leg-up on the payback journey.
4. Sign up for Credit Counseling
You might benefit from professional credit counseling to help with your credit card debt. The National Foundation for Credit Counseling (NFCC) is a nonprofit organization that offers free and affordable advice for people who are struggling to manage debt on their own. If you’re unable to envision a path to paying down debt, it could be a good idea to ask for assistance.
5. Consider a Personal Loan
One tactic to consider in an environment where prime interest rates are rising is paying off credit card balances with a fixed-rate unsecured personal loan.
These are sometimes referred to as “debt consolidation loans” and allow a qualified borrower to pay off high-interest debt, such as credit cards, with this lower-rate personal loan. With a fixed-rate personal loan, the rate never changes (as long as payments are made on time), and it helps provide the borrower with a defined plan to pay off the debt.
If you decide to go this route, it’s a good idea to shop around to ensure that you’re getting a fair rate. You can get a personal or debt consolidation loan from banks, credit unions, and online lenders.
To compare estimated personal loan interest charges to credit card interest charges, you can use a tool like a personal loan calculator.
Shopping for a Personal Loan
Each lender sets its own terms for making these types of loans, so be sure to ask lots of questions about rates, terms, and fees.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Inside: Looking for a creative and easy way to give money as a gift? Look no further than these Money Gift Boxes! These boxes are perfect for any occasion and can be customized to make the gift even more special.
Gone are the days of simply slipping cash into a card; let’s welcome the creative and memorable gesture of a money gift box!
A money gift box, usually filled with crisp euro or dollar bills, presents a unique, exciting, and personalized way to gift money!
Why settle for boring when you can enchant the lucky recipient with this delightful surprise?
Gifting cash doesn’t have to be impersonal or dreary.
A money gift box makes the act of giving money much more thoughtful and engaging, as it shows that you have gone the extra mile to make your gift special.
The beauty of this idea is that it can be customized to fit various occasions – birthdays, weddings, graduation, or even business events.
No matter the occasion or recipient, a money gift box is not just a gift, it’s an experience that lasts even beyond the moment the box is opened.
Choose to make your gift memorable with one of these curated money gift box ideas.
What is a Money Gift Box?
A Money Gift Box is a unique and creative way of giving money as a gift where cash, often in the form of dollar bills assembled and neatly packaged within a gift box.
These boxes are popular gifts for occasions such as weddings, Christmas, birthdays, and other celebratory events where monetary giving is customary.
Money gift ideas are a hot idea and these are unique ways to wrap your cash gifts in an enticing box, creating a true element of surprise or maybe even a puzzle!
How can I surprise my money as a gift?
Coming up with innovative ways to gift money can transform an otherwise simple and predictable present into a surprise packed with joy and excitement.
One fantastic method is the money gift box — it’s unique, elegant, and speaks volumes about your creative prowess.
The money pull box is not just an exciting twist on traditional greeting cards or money envelopes, but it also allows for personalized notes and heartfelt messages, turning a practical gift into something far more special and sentimental.
This ingenious idea is not only an impactful way to give cash but also easy to accomplish.
Remember, it’s the thought, creativity, and effort that transform money—often perceived as a last-minute and impersonal gift—into something unique, intimate, and forever memorable.
Turn that element of surprise up a notch with the money gift box!
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Why Choose a Money Gift Box?
1. You can give money in a creative way.
2. The gift can be customized according to the occasion.
3. Money is a versatile gift that can fit any budget.
4. The gift is easy to make.
5. Money can be given in many different forms, including coins, dollar bills, and more.
6. The gift can be given in various ways, such as in a card box, on a birthday cake, or in an envelope.
7. The gift can be personalized with decorations and other additions.
8. Money can be given in a memorable way.
9. The gift can be given in a way that is relevant to the event.
10. Money can be given in a way that is safe and secure.
How do you put money in a gift box?
Putting money in a gift box can be a delightful surprise for the recipient. One commonly fun method is to tape dollar bills or Euro notes end to end and roll them up tightly – even easier to use the money dispenser bag.
The rolled-up notes are then placed inside the box, with one end fed through a slit in the box and attached to a tab labeled “pull”. This allows the recipient to unravel a long coiled string of money, adding an element of surprise to the gift.
The type, amount, and currency of money can be chosen based on the occasion, whether it’s for a wedding, graduation, or birthday.
Learn how much to give for high school graduation.
Money Gift Box Ideas
Jazz up your gift-giving game with a delightful surprise: a money gift box!
This innovative yet straightforward gift is perfect for any occasion, and we bet the recipient will love it.
Perfect for anyone you value, from family to friends. It’s an excellent gift for celebrations like birthdays, weddings, graduation, or even anniversaries. Perfect small gift ideas!
We curated the best money gift boxes available and picked our favorites, which we can’t wait to share with you!
Money Box for Cash Gift Pull
Imagine surprising your loved ones with a unique, fun-filled cash gift – the Money Box for Cash Gift Pull! Not your traditional presents, this creative and thrilling gift idea redefines the joy of giving.
Tug at the end, and imagine their thrill as they unfold a continuous string of dollar bills.
This money pull box adds excitement, charm, and a touch of suspense to your gift-giving occasions. It combines love, beauty, and utility, making gifting cash a delightful experience.
Expert Tip: Personalize with heartfelt written notes and be generous with the denomination of bills for a more memorable surprise.
Green Money Machine Cash Dispenser
Ditch the mundane envelopes for gifting cash and add a fun twist with the Green Money Machine Cash Dispenser. It is a gift box that turns your cash gifts into an exciting surprise, adding a layer of anticipation to your presents.
We all want a money machine, right? Sounds like a rack of money to me!
The Green Money Machine Cash Dispenser guarantees a gift-giving experience that’s both exciting and memorable.
To use it, just attach the pull-tab to the first bill and thread it through the slot on the top of the Money Machine. The card stock box is lightweight making it hassle-free to carry or send through mail.
Made in the USA, this money dispenser doesn’t include cash, providing you the flexibility to fill it with your choice of cash amount.
Pink Cash Heart Money Pull Box
Looking for a creative way to gift money? Meet the Pink Cash Pull Box – a unique money gift box designed to add a memorable twist to your gifting moments.
This DIY money pull kit allows you to roll your cash, hide it under the box filler, and insert other surprises like flowers or a gift card. Watch as your loved ones delight in pulling out a cascade of money and gifts – an unforgettable moment!
This versatile gift box features an automatic on/off string light that illuminates when the box is opened, providing an enchanting reveal. It’s suitable for multiple occasions such as Valentine’s Day, Mother’s Day, birthdays, or anniversaries, making it a thoughtful gift idea for your wife, husband, mother, father, or grandma.
Imagine your loved one opening this in anticipation of a small gift, only to continue pulling out surprise after surprise, ending with birthday money – a gift that perfectly blends sentiment with practicality.
Black Money Box Cash Pull
Surprise your loved ones in a uniquely thrilling way with Ribbonbonbox’s Black Money Box Cash Pull, a luxurious and unforgettable gift experience.
The black box is elegantly designed, highlighted by beautiful red soap roses and a built-in LED light for an additional extraordinary effect.
Crafted with a durable wooden board and acrylic lid, it’s designed for longevity, ensuring the surprise doesn’t fade with time.
Optimized for everyone — from life partners and best friends to parents and grandparents — it’s a compelling choice for all occasions, from birthdays to anniversaries.
Expert Tip: Add in different types of bills while filling the box, for an extra element of fun when your loved one pulls out the cash!
ThinkMax Money Maze Puzzle Box
If you’re searching for the perfect gift that’s both exciting and wallet-friendly, the ThinkMax Money Maze Puzzle Box is an excellent choice. This unique gift combines the thrill of a puzzle with the sweet success of a hidden reward, making it an unforgettable present.
The puzzle box offers a fun and challenging way to gift money or small items. Just slide the ball to the top and push the latch to open the box.
It’s ideal for teen boys, girls, and co-workers, thanks to its modern design and eye-catching colors. In fact, these are inexpensive gifs for coworkers.
But it’s more than just a gimmick – the money maze puzzle box also fosters the development of motor skills, enhances spatial awareness, and strengthens logical thinking.
To make it even more memorable, consider adding a custom message or inserting a specially chosen gift into the box.
Remember, with a touch of creativity, the ThinkMax Money Maze Puzzle Box can be transformed into the greatest gift of all seasons.
Money Puzzle Box for Cash – Solve the Puzzle
Looking for a fun way to give money gifts in care packages for college students? Let me introduce you to the Money Puzzle Box!
This unique gift box adds a thrilling twist to gift-giving by turning it into a captivating adventure. As one of the best money gift box ideas, it’s not just a box, it’s a rewarding 3x3x3 maze puzzle that stores your precious present inside.
This is a clever cash holder and brain-busting puzzle in one.
Plus gives a delightful challenge to your recipient, improving their spatial awareness, motor skills, and concentration.
3D Escape Game Money Box
Imagine surprising your loved ones with a unique, puzzle-solving gift box experience. How, you ask?
Let me walk you through the marvel of 3D Escape Game Money Box.
Start by acquiring the wooden puzzle escape room game, which doubles up as an impressive gift box.
Upon unboxing, navigate through its various compartments designed to pose stimulating mental challenges.
Once you unravel all the mysteries, find the hidden compartment which is perfect for concealing an assortment of gifts such as jewelry, money, or even a personalized note.
Undoubtedly, this 2-in-1 gift idea holds more than meets the eye. It’s not just about the physical treasure hidden inside, but the thrilling adventure in unlocking it.
Happy Birthday Day Money Box for Cash
A happy birthday money box filled with cash makes for a unique and exciting gift.
This creative alternative to placing money in a pull-out fashion offers a colorful and festive way to surprise the birthday person.
The process is simple: dollar bills are taped end to end, rolled up, and placed in a specially designed box. The recipient then pulls a long string of money out of the box, resulting in plenty of smiles and happy surprises.
Above all, the exhilaration of pulling out a roll of cash is an unparalleled experience that makes it the best gift for friends or family who appreciate fun and creativity.
Wooden Secret Puzzle Box
The Wooden Secret Puzzle Box is an innovative and entertaining way to gift money or small presents. With an additional double lock, it creates a mentally stimulating challenge for the recipient, promoting problem-solving skills and increasing brain fitness.
This wooden keepsake box is not just a puzzle, it’s an experience.
The excitement of unlocking the secret compartment to reveal the gift inside surpasses the typical present, providing hours of entertainment. These boxes aren’t just for adults, children can also enjoy the challenge.
The process to unlock the loot requires some effort but is ultimately rewarding. Tilting the box and navigating the slider right, you’ll hit the lock— rewarding patience and logic with the much-desired gift.
Perfect to add to Easter basket ideas for girls.
Confetti Exploding Gift Box
Experience the thrill of giving and receiving with the Confetti Exploding Gift Box – it’s not just a gift; it’s a party in a box!
Imagine the surprise and laughter as the box explodes with confetti, making for a truly unforgettable gift-opening moment.
This isn’t your typical ribbon-tied gift; the box is beautifully crafted in Europe with premium quality materials, ensuring not just a surprise but also a touch of class. It’s perfect for everyone – children, adults, or even your colleagues celebrating their work anniversary.
Think about it… who wouldn’t love their face sprinkling down with confetti! This gift guarantees not just an explosion of colorful bits but, more importantly, an explosion of emotions.
Remember, this isn’t just for the recipient; bystanders will be delighted too, making your gift the talk of the party!
Brain Teaser Wooden Box with Hidden Cash
Introducing the Brain Teaser Wooden Box, an enthralling blend of puzzles, secret stash, and premium craftsmanship. This mysterious box is a fun, engaging, and stylish way to gift cash or other valuables.
Imagine the thrill of gifting a treasure chest that doubles as a mental workout. Crafted from high-quality wood, its intricate design and precise construction make it an impressive gift. Whether it’s for men, women, or puzzle enthusiasts, they will appreciate the challenge and craftsmanship.
What’s in the box? That’s part of the mystery, making it an intriguing conversation starter.
It’s more than just a puzzle; it’s a secure place to hide valuables or surprise someone with a cash gift.
With its versatility, it can also serve as a chic jewelry box or desk decor.
The journey of unlocking this box is half the fun! Whether you’re playing Santa or looking for a unique anniversary gift or boys Easter basket, the Brain Teaser Wooden Box is your exciting solution.
Secret Puzzle Box
Discover a whole new world of excitement and intrigue with the Secret Puzzle Box – an innovative way to gift money or valuable cards. Delight in the thrill of solving a complex mystery as you explore this extraordinary gift box.
Its design combines the addictive challenge of a brain teaser with the thrill of a treasure hunt. It’s perfect for adults who relish intellectually stimulating experiences.
You can safely conceal valuable possessions such as cash, jewelry, or gift cards in its lockable compartments. Nothing like sparking curiosity by keeping your gift under wraps!
Constructed with high-quality wood, it boasts an intricate design that showcases exquisite craftsmanship. Apart from being a captivating puzzle, it doubles as a unique jewelry box and conversation starter.
Cake Money Box Transparent Bags
Most of the money gift boxes come with transparent bags to load up your cash in.
However, you may need extra. These are perfect if you decide to make a DIY money gift box as well.
Why is it one of the best? Well, here are some compelling features:
The bag has a size of 3.1 x 7.5 inches, an ideal and manageable size to tuck in your cash gift.
It’s constructed from high-quality cellophane plastic; lightweight, reusable, and practically invincible against breaks or deformations.
High transparency ensures your gift is perfectly visible, adding to the anticipation and excitement.
The self-adhesive design simplifies packaging and saves you time.
Plus, it possesses excellent vapor-blocking properties, safeguarding your gift from dust and bugs.
Best for occasions like birthday parties, weddings, and family gatherings, this revolutionary gift idea will surely create unforgettable memories.
Expert Tip: You can use these bags not just for money, but also to include small treasured items or personalized notes to make your gift extra special.
How to make a money dispenser box?
All it requires is taping dollar bills end to end in a long string, rolling them, and neatly placing them inside a beautifully designed box. Add a final touch by attaching a “pull” tab to the end bill, and voila – you’ve created a delightful and unexpected gift.
Sounds easy, right? Well, it is. It just takes some practice like these money cake ideas.
Consider using this idea for occasions like birthdays, weddings, or graduation celebrations. After all, who doesn’t love the sight of cascading cash pulled from an exquisitely crafted box?
Step 1: Choose a Money Gift Box
Opt for a box with a festive allure for birthdays or celebratory events.
The box size and shape determine how much money it can hold and how smoothly it dispenses.
The design showcases your creativity and speaks volumes about the occasion.
Remember, it’s not just a gift, it’s an experience. If you want to surprise a friend, pick a box that pops with colors.
Your chosen money gift box sets the stage; make it count!
Step 2: Prepare the Money Roll
You’re onto a fun-filled step of crafting your own money dispenser box, and preparing the money roll!
This part is crucial, so follow closely.
First, gather your dollar bills. Getting new dollar bills may be a challenge, so make sure you ask your bank first.
Next, neatly insert the dollar bills in the transparency bags. Also, include a few memorable notes.
Then, tape the bills end-to-end or use the small sticky dots. Ensure to connect the bills seamlessly and cleanly to maintain the charm of the constant pull.
Once you’ve crafted a nice lengthy string of bills, begin rolling. Start from one end and maintain a tight, steady roll until it looks like a small, compact money bundle.
A quick expert tip here – if the roll seems loose or flimsy, don’t worry. Tightening it up as you go often helps achieve compactness.
Congratulations, you’re one step closer to creating an absolute hit of a gift!
Remember, the joy is in both the making and the giving! Keep up the great work, and let’s dive into the next step soon.
Step 3: Make the Boxes
This is where you incorporate the money into the box, effectively transforming it into a thrilling dispenser.
Insert your tightly wrapped roll of money into the gift box. Make sure you leave the pull the money out.
Next, you can add trinkets or other mementos to the box if you prefer.
Make sure to securely tape it, ensuring that it’s attached beautifully and strongly.
Step 4: Give Out the Boxes
Now for the fun part! Give your money gift box to the recipient or recipients.
As your friend unwraps the seemingly ordinary gift, the initial confusion transitions into pure delight as they pull out a long string of dollar bills from the box. Their bemused smile and surprised laughter truly makes the effort worthwhile.
Remember, it’s not just the monetary value of this gift that matters, but the joyful surprise and the shared happiness it brings.
Get creative with your gift-giving and make each celebration truly memorable.
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12/19/2023 07:57 pm GMT
Which Money Boxes for Gifts are your Favorite?
In conclusion, these money gift boxes are more than just vessels – they’re tangible expressions of generosity, thoughtfulness, and affection. They instill in the recipients a sense of appreciation and an overwhelming feeling of being valued.
Plus, who doesn’t like a little surprising twist with their monetary gift?
Start shopping now for these amazing money gift boxes to make your gifting experience memorable and cherished.
After all, the best gifts are not only about what you give but also how you give them. Perfect ideas for gifts for kids who have everything!
With money gift boxes, you can add that extra personal touch, making your gift more special and memorable.
Filled with surprise and delight, these money gift boxes are sure to impress and leave a lasting imprint.
So why wait? Begin your money gift box shopping now and lavish your loved ones with a gift they’ll truly cherish!
Embrace gifting in style with a money gift box! Plus these may work perfectly for a no gift Christmas!
Know someone else that needs this, too? Then, please share!!
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