One of the safest states in the U.S., Utah has a lot going for it. The weather gives you solid seasons, with warm summers and cold (ski-friendly) winters. Outdoor activities abound beyond the mountains, with plenty of rivers and lakes to explore. Low unemployment rates and a growing stake in the tech industry provide ample opportunities. There’s also a large population of young professionals seeking Utah out as their new home, so the community is energetic, educated and ready to go.
The list can go on, but already with so many traits recommending Utah, we bet we’ve piqued your interest. But, don’t pack your bags yet. Before you can call Utah home, you’ve got to make sure you can afford to live here. By looking at some key cost of living components, in a few central Utah cities, we can help you with figure out if your budget matches up.
Utah housing prices
Most Utah cities recommend themselves as some of the best places to live in the state. There’s not much that isn’t interesting and scenic. However, everything appealing about Utah has a price tag, and most cities have costs that exceed the national average. Thankfully, when it comes to the cost of living in Utah for housing, you’ll never go too far over, but on the whole, expect to have to pay to call this state home.
Cedar City
Combining a small-town feel with an urban setting, Cedar City changes things up with as many ranches and farms as there are college residences. It’s a great combination of the best parts of Utah and at an affordable price. Housing prices in Cedar City are 7.3 percent below the national average.
The average rent for a two-bedroom is affordable, at $775 per month, and home prices are even going down. The median home price in Cedar City is $322,00, down by 6.7 percent over last year.
Ogden
Known for its professional opportunities, Ogden is the place to go if you’re looking for a government job. The professional stability combined with the city’s proximity to ski resorts means it’s all about working hard and playing hard. This explains why housing prices in Ogden are 6 percent above the national average.
Rents in Ogden are rising pretty significantly year-over-year, keeping prices up. The average one-bedroom apartment saw a 26 percent increase over last year and is currently $1,305 a month. Two-bedroom apartments are rising at a slower rate, up only 14 percent over last year. The current average rent per month is $1,499.
Home prices are also rising, up 17.1 percent over last year. The median home price in Ogden is $410,000.
Provo
One of many college towns in Utah, Provo is home to Brigham Young University. Run by the Church of Jesus Christ of Latter-Day Saints, both the student population and many of the city’s residents are members of the church. Provo has a heavy focus on family life and is full of many young people and new families.
This popular city has housing prices that average 15.8 percent above the national average. The average rent for a two-bedroom is $1,495, and home prices are up 17.6 percent. The median home price in Provo is $450,000.
Salt Lake City
Perhaps the best-known city in Utah, Salt Lake City has it all. It’s the perfect package of a place to live, with a strong city center, plenty of jobs, fun things to do and the great outdoors to enjoy. You’ll never be without something to do or see here, whether you’re going to a free summer concert, cheering on the Utah Jazz at a basketball game or simply exploring the city. For all its popularity, Salt Lake City housing prices aren’t too high, but they do hit above the national average by 26.3 percent.
Steady growth in the rental market has led to some pretty high prices in Salt Lake City. A one-bedroom apartment has an average monthly rent of $1,513, up 20 percent over last year. A two-bedroom will set you back an average of $1,831 per month, which is 16 percent higher than last year.
Home prices are rising even faster, up 36.2 percent over last year. The median home price in Salt Lake City is $613,000.
Utah food prices
Another cost of living in Utah is food. Utah residents spend an average of between $200 and $233 per month on groceries. Judging by the local favorite foods, a large portion of this could be on fresh produce. Yes, the state is famous for fry sauce and pastrami burgers, but it’s also well-known for honey, tomatoes, raspberries, corn and Green River melons. Yum.
Compared to the national average, most Utah cities hit very slightly above average.
Ogden is 4.4 percent below the national average
Provo is 0.1 percent above the national average
Cedar City is 0.9 percent above the national average
Salt Lake City is 6.3 percent above the national average
This could impact your overall grocery bill, but might not make everything you buy more expensive in one city over another. Lettuce, for example, costs 20 cents more in Cedar Lake than Salt Lake City. Peaches are 20 cents more in Ogden, the only city with food prices below the national average than in Cedar City.
Where food pricing gets predictable is when you look at the average cost for a romantic dinner for two. A three-course meal, for two, costs $72.50 in Salt Lake City, but only costs $35 in Ogden. That means you’re paying 52 percent more to eat the same meal in Salt Lake City.
Utah utility prices
Across the state of Utah, you’ll be happy to hear, utility prices are all below the national average. That’s good news for the cost of living in Utah.
Provo is 10.9 percent below the national average
Ogden is 7.5 percent below the national average
Salt Lake City is 7 percent below the national average
Cedar City is 2.7 percent below the national average
This means energy bills typically range between $140 and $165 per month, coming from both electricity and alternate energy sources.
Utah transportation prices
Although utility prices are on the lower side when compared to the national average, transportation prices in Utah do the exact opposite. They’re all slightly above.
Cedar City is 1.4 percent above the national average
Provo is 3.3 percent above the national average
Ogden is 4.5 percent above the national average
Salt Lake City is 5.9 percent above the national average
Even though Salt Lake City tops the list in cost, it also gets the highest scores when it comes to walkability (67) and bike friendliness (73).
Although it’s easy to get around Salt Lake, and Provo is often considered somewhat walkable itself, living in Utah most likely means you’ll need to either own a car or rely on public transportation (or both.)
The Utah Transit Authority
Stretching well beyond a single city, this network of vehicles really goes the distance. Yes, there are solid transportation networks throughout Utah that cover smaller areas, but the UTA takes the cake. It encompasses Salt Lake City, Ogden and Provo through its commuter rail service.
In Ogden, specifically, UTA buses cover the downtown area, Weber State University and routes to major employment centers. There’s also a ski bus that gets you to Snowbasin and Powder Mountain.
In Salt Lake City, a bevy of buses come regularly, with special routes during rush hour. There are also buses heading up to Snowbird Alta and Solitude Brighton for skiing.
Fares vary based on transportation type. For the local bus or streetcar, a one-way fare is $2.50, and a monthly pass is $85. If you want a premium pass, to have access to all types of transportation UTA offers, except the PC-SLC Connect, you can get a monthly pass for $170.
Utah healthcare prices
Shifting gears to look at healthcare, a tricky area for anyone’s cost of living total, all of our Utah cities fall below the national average.
Cedar City is 10.5 percent below the national average
Ogden is 9.9 percent below the national average
Provo is 8.5 percent below the national average
Salt Lake City is 5.7 percent below the national average
Healthcare costs include doctor’s visits, medications, getting your eyes checked and those two annual visits to the dentist each year. Individual prices won’t always align with how overall rank, though. The least expensive city, on average, for a doctor’s visit isn’t Cedar City, but Provo, the only city with a doctor’s visit bill under $100.
Utah goods and services prices
Goods and services are a wide category when it comes to the cost of living in Utah total. All the extras, that maybe don’t feel so extra, fit here. These are things you want but don’t necessarily need, and in Utah, they’re all slightly above what you pay on average.
Cedar City is 2.8 percent above the national average
Ogden is 4.8 percent above the national average
Salt Lake City is 6 percent above the national average
Provo is 9.9 percent above the national average
To better understand how these averages impact specific goods and services you might partake in, this chart breaks things down.
Provo may have the highest combined prices, but that isn’t the case for every individual service. A vet visit, for example, will be more in Salt Lake City on average, and a movie ticket is more in Cedar City.
Another key service in this category, with a high price tag, is childcare. Even if you don’t need to use this service now, prices can vary greatly, making it something you might want to think about. For a full-day, private preschool, you’ll pay $362.50 in Cedar City, but $783.33 in Salt Lake City. That’s a 54 percent difference that could easily stretch your budget.
Taxes in Utah
When it comes to taxes, Utah residents pay both individual income tax and sales tax. The income tax rate is 4.85 percent, and the state sales tax rate is 4.85 percent. Localities can then add up to 3.35 percent more onto the sales tax, which means the most you’d pay in any Utah city is 8.2 percent. That means for every $1,000 you spend shopping, $82 goes right to taxes.
None of the cities on our list max out the sales tax.
Cedar City has a 6.2 percent sales tax rate
Provo has a 7.25 percent sales tax rate
Ogden has a 7.25 percent sales tax rate
Salt Lake City has a 7.75 percent sales tax rate
At 7.75 percent, when you shop in Salt Lake City and spend $1,000, $77.50 is what you’ll pay solely in taxes.
How much do I need to earn to live in Utah?
To effectively calculate how much you need to earn to afford the cost of living in Utah, and if it will work with your ideal budget, plug in specific numbers to our rent calculator.
For some quick estimating, you can look at how much you need to earn to afford the average rent in the state. Rent should only take 30 percent of your annual income. So, with the average rent in Utah at $1,571, you’d need to make $62,840 per year.
This is highly likely to work out since the average salary in Utah is much higher, at $89,300. That means you’ll not only be fine looking at average-priced places to live but have wiggle room to get something with more amenities (or square footage).
Living in Utah
Utah is growing in population, so there are a lot of people out there, like you, who’re discovering this beautiful place full of activity and opportunity. To really get the ball rolling on deciding if Utah fits your budget, it’s best to look at the cost of living across the state.
Could you afford to live, eat and play in any specific city? If the numbers align, it might be time to start packing those boxes and preparing for a new adventure.
Related articles:
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Inside: Dreaming of ways to make money fast as a woman? Stop dreaming and take action. These are genius ways of making money online and at home.
Making money fast is crucial for maintaining a comfortable lifestyle, especially in the face of rising living costs. It can be the key to financial stability, providing additional funds to support and enjoy your lifestyle.
As a woman, you need to know how to make money fast.
This isn’t just about getting rich quickly. It’s about women gaining the freedom to live independently without financial constraints.
The feeling of financial security lessens stress; not having to worry over unexpected expenses plays a big role in your overall well-being.
This is what you want to do – make money fast!
Good news! You are in the right spot and I’ll show you my favorite ways to make money online.
Get into the right mindset, ladies! Making money fast isn’t just possible, but also liberating.
How can I make easy money ASAP?
Making easy money quickly can be achieved in various ways that utilize your skills and knowledge.
First and foremost, consider your own skills and expertise, and determine whether they could apply to jobs like cake baking, childcare, bookkeeping, house cleaning, or freelance writing.
This will tell you the easiest way for you to make money quickly. For me, I prefer to trade options in the stock market. Whereas someone else may choose babysitting or dog walking.
You need to find how to make money fast and we will help you with that decision.
Why Making Money Fast is Important
1. Makes it possible to live comfortably 2. Enables you to afford the best quality of life 3. Gives you the freedom to pursue your dreams 4. Gives you the freedom to live without financial constraints 5. Provides you with security and safety 6. Freedom to give back to your community 7. Freedom to choose how you spend your time 8. Opportunity to take risks and start a business 9. Provides you with a sense of power and control 10. Live without financial worry
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
How can I make a lot of money in hours?
Making income in a matter of hours for a woman is entirely feasible with a blend of freelancing, leveraging gig economy platforms, and capitalizing on your skills or assets. Here’s a quick guide for you:
Consider freelancing: Establish your writing, graphic design, or programming services on platforms like Fiverr or Upwork.
Dive into the gig economy: Sign up for TaskRabbit, Airbnb, or Turo to start earning.
Try online tutoring or content selling: Proficient in any subject or have strong graphic design skills? Go for tutoring or sell your content.
Indulge in buying & selling: If you’re good at purchasing low and selling high, then swap clothes or furniture, or even stocks.
Take online surveys or join market research groups on sites like Swagbucks for a rapid source of income.
Remember, time management is crucial for balancing multiple streams at once. Don’t forget to schedule wisely!
How to Make Money Fast as a Woman
No matter who you are, making money can be tough. But if you’re a woman, it can feel impossible.
From getting paid less than men for the same job to having a harder time getting promoted, the deck is often stacked against us.
Just so you know that making quick money in one day won’t happen overnight.
So, I’m going to tell you the best ways to make money fast as a woman.
1. Sell Services
Selling your skills or expertise is a fast, viable way to earn money. It’s all about utilizing what you already know to provide value to others.
Identify your marketable skills, such as cake baking, freelance writing, bookkeeping or even organizing spaces.
Brainstorm which of these services people could pay for.
Remember, you can tap into both physical tasks, like house cleaning or pet-sitting, and digital ones, like creating digital printables or offering consulting in your field of expertise.
Expert Tip: Launch your service with a few testimonials, helping to build trust with potential customers from the get-go.
2. Freelance
Freelancing is a savvy way for women to stack up earnings fast, offering flexibility and complete control over the workload. It’s a ticket to dodge conventional office politics and punch above your earning potential.
Start by identifying your freelance niche. You can be a writer, graphic designer, or anything you’re skilled at. Many people use their transferable 9-5 skills to side hustle.
Then, create your profile on platforms like Fiverr, Upwork or Guru – be sure to showcase your accolades.
Set your rates, then start connecting with clients looking for your talent.
Remember, success in freelancing is driven by quality and consistency. So, sharpen your skills and always exceed your client’s expectations.
Freelancing may start as a side gig, but with dedication, it can grow into a full-time job.
3. Become a Product Reviewer
Being a product reviewer is an intriguing job opportunity for those who enjoy sharing candid feedback about their experiences with various products.
As a product reviewer, you are required to assess products often sent to you from diverse companies.
Your role involves providing a comprehensive review that could range from making an unboxing video to writing a detailed article about the product’s features and performance.
This kind of job requires an unbiased perspective and the capacity to articulate your thoughts and experience in a detailed, user-friendly manner.
Companies value this form of direct feedback as it provides them with significant data about their product’s strengths and weaknesses as perceived by an end-user.
4. Virtual Assistants
As a woman, becoming a virtual assistant could be your fast lane to earning a substantial income.
This is especially a great option if you’re excellent in organization and time management along with the need for flexibility.
For many becoming a virtual assistant with no experience is possible. And very lucrative.
Finally, for your best shot at success in this field, taking a course to improve your learning curve is extremely helpful.
Potential to earn up to $43,000 per year.
5. Sell Your Crafts
Ladies, have you thought of turning your love for crafts into a profitable venture?
Find out what crafts are in demand. The higher the demand, the more profitable it would be to make and sell these crafts.
Remember, profitability hinges on what you sell and how much you sell. Happy crafting!
While you are limited on what you can earn by what you can make, it is possible to make money doing something you absolutely enjoy.
6. Stock Trading
Stock trading may seem daunting but it can be a quick route to financial independence, especially for women.
With the right tools, information, and mindset, you can swiftly navigate the market and amplify your earnings. In fact, this is something Teri Ijeoma did herself.
Educate yourself on the basics before you invest. This is exactly what I did and my investment has paid off.
Always be aware of the risks involved in stock trading and proceed cautiously. However, building up an investing education is a wise decision.
Learn how fast can you make money in stocks.
7. Babysit
Babysitting is a versatile side hustle offering flexible hours and good earning potential.
It’s an ideal opportunity if you’re seeking quick, extra income and enjoy children.
Obtain optional certifications like CPR and first aid to enhance your appeal. Visit platforms like Care.com, Sittercity, or Urbansitter to create your profile and connect with clients.
8. Transcriber
One field that remains highly overlooked is transcription.
A transcriptionist listens to audio files and converts them into written documents.
Gain a thorough understanding of the industry. Check out this free webinar to get the basics right.
Consider specializing in legal or medical transcription. These niches often fetch higher wages.
You could easily make $3000-$4000 monthly, working on your own schedule.
Remember, practice and precision can help you achieve a lucrative transcription rate.
9. House Cleaning
Cleaning can be a rewarding gig, especially if you like tidying spaces.
Despite recognizing the need for a clean home, many people often struggle to find the time or energy to routinely clean their homes. This is where the prospect of a housecleaning business arises.
Busy homeowners, parents juggling work and childcare, elderly individuals needing assistance, and even businesses needing regular cleaning services are all potential clients for a housecleaning business. This demand provides a consistent income flow for those offering cleaning services.
In fact, individuals transitioning into this field of work can negotiate their wages with clients, potentially earning more than $15 an hour based on the complexity and demands of the job.
10. Sell Printables on Etsy
Selling printables is an effective and lucrative method to generate passive income.
Once printables such as planners, calendars, and journals are designed, created, and listed for sale on platforms like Shopify or Etsy, they can consistently produce income without requiring continual input or maintenance.
According to several experts, one of the keys to making substantial profits from printables is to differentiate your products.
Building upon this idea of making money from printables, the free Printables Workshop by Gold City Ventures offers comprehensive insights into the process of creating and selling aesthetically pleasing printable products online. This accessible course can be an excellent starting point for beginners looking to navigate the printables market.
Selling printables on Etsy might be the perfect venture for you!
11. Dog Walking
Looking for a fun-filled way to make some quick bucks?
Dog walking could be the right side hustle for you, especially if you’re an animal lover.
Easy to find jobs for dog walking.
Suitable for people with flexible schedules.
Offers an active way to earn money.
Option to select your rates with platforms like Rover.
High demand especially due to increasing pet adoptions and busy pet owners.
You can work when you need to and not take clients when you don’t want too.
12. Make Money Blogging
Blogging is a popular and prevalent way to earn money. Many blog owners are women who want the flexibility to earn significant money at their own pace and schedule.
Earning money through blogging allows you to focus on something you’re passionate about. Any topic that can provide value to an audience can be blogged about. Targeting a niche that has been overlooked by existing blogs can increase your blog’s potential earnings.
Starting a blog doesn’t require formal training, but it does require a willingness and ability to write effectively for an audience.
By employing monetizing avenues, like affiliate marketing and advertising, a blogger can boost their earning significantly.
Despite the vast number of existing blogs, the industry is very accommodating toward new voices, especially female voices. Thus, knowing how to monetize a blog can offer women many opportunities.
Remember, blogging is not just about earning fast bucks, it also needs consistent efforts. It’s rewarding but can start slow.
13. Ride-Sharing
Ridesharing is an excellent opportunity for women looking to make fast money. With apps like Uber and Lyft, you can earn an income simply by offering transportation services.
Here are a few tips to increase your earnings:
Consider driving during peak hours, weekends, or during special events to cash in on higher demand.
Choose busy locations such as city centers and nightlife spots to increase your chances of getting rides.
Maintain good customer service and ensure safe driving to uphold your rating and receive more ride requests.
14. Office Cleaning
Considering the hustle and bustle of the daily grind, office cleaning can be an untapped treasure trove for women seeking quick cash. Given the high demand and flexible hours, it’s an ideal source of extra income.
You must identify office premises needing cleaning services. Reach out to the owners or management, and propose your services.
Think about offering your services to offices in your local area. It’s a fast way to make extra money while managing your other commitments.
15. eBay Arbitrage
Looking to earn some quick money? eBay Arbitrage could be the game-changer you need.
Aimed mostly at women who love shopping, it’s about buying products cheaply and selling them on eBay for a profit.
First, hunt for bargains in thrift stores, sales, or online markets.
Go with high-demand items; electronics, collectibles, or brand sneakers are a good start.
Then, create your eBay store and list your finds at a competitive but profitable price.
Track each item’s demand through keyword research and buyers’ reviews.
Remember to calculate potential profits inclusive of shipping costs and eBay fees.
Armed with the right strategies, you can start earning with eBay in no time!
16. Freelance Writing
Did you know your writing passion can become a quick buck-making engine? That’s right, freelance writing is a gold mine you ought to tap.
First, identify a writing niche you love. It’s easier to excel when you’re passionate about your work.
Continually hone your writing skills. The more you practice, the better you become and the more valuable your skills. Finally, don’t be shy to market your skills. Reach out to small businesses and startups—they often need freelance writers.
Remember, quality over quantity will earn you a solid reputation in the long run. Now, go turn those wordy wonders into wealth!
17. Online Surveys
Curious about making a quick buck? Engaging in online surveys can be a fast money-making method just for you!
You don’t earn a huge amount per survey but when taking multiple surveys, it will add up fast.
Here are the top legit survey platforms:
Use your free time wisely. Take surveys during work breaks or leisure hours.
Redeem points for PayPal cash or gift cards.
18. YouTube Channel Building
Building a YouTube channel can be an interesting and rewarding venture.
It provides an incredible platform to share your content, express your creativity, and engage with a global audience. Whether you want to showcase your talents, teach something unique or simply entertain, having a YouTube channel opens up many opportunities.
Effective engagement with your audience is vital.
Last but not least, patience is something you will need in abundance. Building a successful YouTube channel takes time, so don’t lose hope if you’re not seeing immediate results.
Remember, there’s no limit to what you can achieve with your YouTube channel. It all comes down to how creatively you can use this platform to engage with your audience and grow your presence.
19. Bookkeeper
In our increasingly digital age, online bookkeepers are in high demand, with more businesses choosing to move their financial operations to the online platform. This shift in business operations has created a robust opportunity for those trained in bookkeeping to tap into the market and earn income while working from the comfort of their homes.
To be successful as web-based bookkeeper, you need to be well-organized and have previous experience dealing with numbers. However, even without a formal accounting education, individuals can take advantage of online learning platforms like Bookkeepers.com to learn and sharpen their bookkeeping skills for free.
Becoming a virtual bookkeeper is not just a fantastic full-time job opportunity; it’s also an excellent side hustle for women and mothers proficient with numbers. It provides flexible hours and allows the freedom to work from anywhere, making it ideal for those juggling multiple responsibilities.
The financial compensation for an online virtual bookkeeper is quite significant. On average, bookkeepers can earn at least $50000 a year helping business owners manage their finance and bookkeeping online.
20. Start a Dropshipping Store
Dropshipping is a viable option with low startup costs that lets you run an online store without handling any physical products.
There is still plenty of time to get into the dropshipping business.
Start by deciding what products to sell. Find a niche you’re passionate about for a higher chance of success.
Remember, a successful dropshipping venture involves effective marketing as well. So invest time and effort into perfecting your advertising tactics.
21. Do Clerical Work
Clerical work offers flexible, remote opportunities for women to make quick money.
With adequate admin experience and internet access, you can explore roles like Virtual Assistant, Online Data Entry Professional, or Court Transcriptionist.
This is one of the best non phone work from home jobs.
Experts tip: Perfection and punctuality are key. Attention to detail and meeting deadlines can make you stand out.
22. Resell Clothes
Reselling clothes online is a savvy way to turn your clutter into cash, especially if you love digging for hidden gems.
It’s a popular method for fast cash flow, with Poshmark and Facebook Marketplace being perfect platforms. One of my friends is very successful with this!
Begin with your own closet, and sell kids clothes they have outgrown too.
Reinvest your earnings, by buying second-hand clothing to resell can boost your profits.
Don’t forget quality. Run a quick check for authenticity and brand labels.
Visuals sell. Stage items and capture high-res photographs.
Providing a great customer experience is key, ensuring prompt shipping and maintaining politeness.
Play your cards right, you could earn anywhere between $100 to $1,000 a month or even reach a six-figure yearly income.
23. Do Home-Based Child Care
Home-based child care is a viable option to earn money, leveraging the natural maternal instincts and caregiving skills of many women. It can be a lucrative side hustle and a means to financial independence.
This is especially a great avenue to pursue when you are already at home raising your own children.
Make sure to follow any state regulations about running a daycare out of your home.
Begin by determining the number of children you can handle at a time, taking care not to overbook.
24. Podcasting
Podcasting is a wonderful opportunity for delivering narratives. It enables you to weave compelling stories while inspiring, instructing, or simply entertaining your listeners.
The unique format of podcasting lets you connect with your audience on a personal level. They listen to your voice, engage with your thoughts, and feel a stronger connection to you.
By starting a podcast, you are joining an increasingly popular trend, with the global number of podcast listeners has grown to 464.7 million listeners in 2022 (source).
Podcasting also opens up doors for networking and collaboration. You can invite experts, artists, or like-minded individuals as guests on your show, thus expanding your network.
There’s a potential to earn from podcasting. With affiliate marketing, sponsorships, and advertising, the commercial possibilities of podcasting are extensive.
25. Merch by Amazon
“Merch by Amazon” is a print-on-demand service that allows you to design and sell your merchandise.
It’s a great money-making alternative as it offers massive exposure and doesn’t require any upfront costs.
One of the significant advantages of using Merch by Amazon for passive income is that you are not required to maintain inventory or deal with shipping. Amazon handles these aspects, allowing you to focus on the creation process and customer satisfaction.
Amazon’s royalty system ensures that you get paid instantly whenever your merchandise is purchased. This allows you to earn money passively with every sale.
When your designs meet the current market trends and the preferences of your customers, they are more likely to be popular, leading to an increase in sales, hence, higher passive income.
26. Become an Influencer
Becoming an influencer is a smart, quick way for women to make money. While most people just stumble upon becoming an influencer, you can decide to pursue this avenue.
With earning potential that is unlimited, this opportunity is flourishing, requiring no specific degree or job experience.
Remember, platforms like TikTok, Instagram and YouTube reward new, engaging creators.
Dedication and consistency could lead you to major earnings where you make thousands for each post.
27. Work as a Translator
Having mastery in more than one language opens up a world of opportunities, particularly in the realm of translation services. The ability to translate language effectively and accurately is a skill that’s in high demand in the current globalized world.
A top benefit of being a freelance online translator is the flexible work environment. You have the freedom to choose when, where, and how much you want to work. This flexibility for work-life balance is more appealing now than ever, especially in the unsteady job market.
Freelance translators also have access to a wider client base. Unlike full-time translators who work for specific organizations or agencies, freelance translators can work with various clients from all over the world, widening their potential income streams.
The need for translators is projected to grow substantially. In the United States alone, the U.S. Bureau of Labor Statistics reports that employment for interpreters and translators will increase by 20% from 2021 through 2031, which is much faster than the average for all occupations.
Among other freelance professions, translation can often provide a more stable income.
As most sectors including education, legal, business, medical, and technological firms continue to globalize, they regularly need translators to bridge the language gap, making freelance translation services a steady income source.
31. Become a Flipper
Becoming a flipper is a high-return, low-investment way to make money fast. It involves buying low and selling high, perfect for those wanting a profitable side hustle.
Here are actionable steps to kickstart your flipping journey:
Identify items to flip: Popular options include toys, clothes, electronics, books, and furniture. Pro-tip: Sell things you have around your house to start risk free.
Choose a selling platform: Sell locally via Facebook groups or Craigslist, use reselling apps like Decluttr, or open an online store on eBay.
Price it right: Pricing items competitively garners buyer interest and maximizes profit.
Learn more: Free webinars, like Flipper University and the Flea Market Flipper, offer insights for a successful flipping business.
Remember, flipping can be more than just a side hustle; it’s a potential full-time career.
32. Micro-Tasking
Micro-tasking offers a quick way for you to earn money by completing short and simple tasks.
As its popularity grows, so does the list of platforms where you can find micro-jobs. Here are the popular platforms.
This allows your the flexibility to work whenever you want. Plus no special skills or degrees are needed.
Just note… This is not a stable income source
Tips for Finding the Best Way for You to Make Money
As you can see, there are many different ways to make money fast as a woman.
You can find the best way for you by considering your skills, interests, and the amount of time you have available.
Here are some helpful tips to make sure you are earning money quickly.
1. Identify Your Skills and Offerings
You’re already gifted, let’s transform those skills into fast cash.
Make a list of your skills, passions, and expertise; you can tap into anything from programming to knitting.
That is where you want to start.
From personal experience, I can tell you it is way easier to work on a side hustle or business when you are passionate about the topic.
Remember, the digital world is your playground, so play, innovate and cash-in.
2. Research the Best Ways to Make Money
Now, that you know the skills and experience, look at the list above and determine which ones match up.
You will need to spend time watching a free webinar to learn more.
Compare different money-making ideas. From part-time jobs to freelancing, there’s a plethora of options. You need to pick what works best for you.
Remember, generating a consistent income requires effective strategies and the right mindset. So choose wisely!
3. Try Different Ways to Make Money – Not Just 9-5 Jobs
It’s vital to explore different money-making strategies as a woman for financial stability and independence.
Just because one avenue didn’t work out doesn’t mean you should throw in the towel.
Remember, the key to success is perseverance, so pick something you’re passionate about and stick to it. Try not to jump from one idea to another out of impatience; success takes time.
Also, as your revenue increases, start building a lifestyle business for passive income.
4. Focus on the Things You Are Good at
Unlock your financial potential by recognizing and utilizing things you’re excellent at.
To cash in fast:
Identify your standout skills. These could range from writing, fine arts, math, e-commerce to digital marketing or even passions such as sports and hobbies.
Assess the viability of earning via your skills. Research shows that the digital economy is filled with opportunities.
Exploit platforms that cater to your expertise. For freelance gigs, you can try platforms like Upwork, Fiverr, or Guru.
There are so many ways to make money online as a beginner. So, indulge in the digital playground, embrace exploration and innovation, and let your skills earn for you.
5. Find Opportunities That Allow You to Work Flexibly
You can choose when to work and when not to, rather than being constrained by a 9 to 5 workday. The flexibility to create your schedule means you can operate at your most productive times, whether that’s early in the morning or late at night.
Working from home or any location across the globe enables a better work-life balance, reducing stress and improving productivity. This is particularly beneficial for those who have families or are committed to other obligations.
When working for yourself, you may have the potential to earn more than traditional salaried roles.
Lastly, making a living from your passion is huge!
You are being paid to do what you love anywhere, anytime which is rare and precious.
6. Consider Specializing in a Niche Subject
Specializing in a niche subject can elevate your earning potential quickly, owing to smaller competition and a personalized audience.
Being a subject matter expert in a specific area can provide you with an edge over your competitors.
Specializing in a niche can help you stand out and garner a dedicated audience, ultimately leading to faster earnings.
Remember, the key to making money faster in your specialized area is persistence and patience. It may take time to build a strong following, but once you do, the financial rewards can be substantial.
Stick to your chosen area, continuously learn and improve, and consistently deliver high-quality content to make your mark in your chosen niche.
7. Take Advantage of Trending Opportunities
Jumping on trending opportunities can be a gold mine, especially for women who want to make money fast from home. These ever-evolving trends tap into various skill sets, interests, and experiences, potentially translating into a lucrative gig.
For many, it may have been TikTok when the company first started.
Remember, the digital world holds limitless potential. Just needing to innovate and execute your ideas!
8. Invest in the Right Tools and Equipment
The key to making money, either online or offline, is making an informed investment of your time into the right tools, equipment, and learning resources.
While this can initially seem like an expenditure rather than a money-making step, it is, in fact, a cornerstone of your financial growth strategy.
Investing time in learning and increasing your knowledge base is vital. This could mean spending your time reading about new insights in your area of work, attending webinars, or enrolling in online courses. The ROI of this proactive learning is immense.
Consider this an opportunity or a catalyst that speeds up your journey toward substantial income generation and financial freedom.
9. Commit to Consistent Efforts
Commitment to consistent efforts is the cornerstone of any successful endeavor, more so when running your own side hustle.
One of the fundamental principles for making money is the dedication to keep improving your craft, always learning, and always evolving.
This continual effort involves a long-term commitment to staying updated with the latest writing trends, styles, and industry standards.
With persistence and patience, the fruition of your investments will lead you toward the fulfillment of your financial dreams.
10. Utilize Social Media Platforms to Promote Your Business
Social media platforms are powerful tools for business promotion, and when used strategically, they can lead to fast monetary gains.
Understanding how to effectively utilize these platforms can drastically enhance your chances of making quick bucks.
Start by creating a robust online presence for your business on various social media platforms. Remember, consistency is key to building your brand.
Engage with your audience frequently and respond to their comments. This boosts engagement on your posts.
Post content that is engaging, relevant, and aligns with your business values.
Always monitor your performance using social media analytics to understand what works best for your audience.
Which side hustles for women have you tried?
Personally, here are the side hustles I have done or currently do:
Stock Trading as a swing trader
Online Content Creation
Social Media Influencer
Online Consulting
Pet Sitting or House Sitting
Teaching Dance Lessons
Personal Organizer
However, I know many people that have tried the ones listed above.
So ladies, which of these enticing hustles appeals to your skills and schedule the most?
FAQ
Stay-at-home moms have numerous opportunities to earn money from the comfort of their homes. Plus being able to bump up your household income while juggling parenthood is the perfect combination.
Find the best jobs for moms specifically!
Any of these opportunities requires dedication and consistent effort, but with time they can all yield substantial returns.
Thankfully, there are many ways for women to make money online.
Above we covered all of the interesting ways and many are online.
Remember, opt for an avenue that suits your skills, interests, and time availability.
Well. the answer to this will depend on who you speak with.
Personally, I find ways to build passive income with your side hustle as the best option. Then you aren’t trading your time for money.
As a woman, many opportunities are right at your fingertips. The most popular and profitable include:
Start a blog: With consistent readership, you can make thousands from ad revenue and sponsored content.
Virtual assistant: Services can fetch around $10-30/hour.
Social Media Management: Businesses are willing to pay up to $1000-2000 per month for proficient managers.
Bookkeeping: On average, freelance bookkeepers earn around $34/hour.
Selling products online: Sites like Etsy, Amazon FBA, or your own platform can earn you a substantial income with a successful shop.
Trading Stocks or Options: by improving your investing knowledge, you can quickly increase your net worth.
Remember – it all starts with a step. Your side hustle could turn into a full-time passion!
This is How to Make Money from Home as a Woman
In conclusion, as a woman, there are plenty of genius and fast ways for you to make money.
The article underlines the significance of grabbing the reins of your financial future.
Through the strategies shared – including investing in stocks, working from home, or using budgeting hacks, you can boost your income significantly.
One of the concepts, I’m big on is making sure you know how to make your money work for you.
With wise decisions and being open to possibilities, your financial independence is within reach.
Remember – the ball is in your court, so make sure to take that shot and score your financial goals. It’s high time to cash in on your potential!
Know someone else that needs this, too? Then, please share!!
College is a great place to make lifelong friends. In college, students bond over shared interests, have fun times together, and help each other through some challenging times, cementing bonds that can last for years after graduation.
When you first arrive on campus, however, making friends in college can seem intimidating. Exactly where and how do you meet people? It can feel especially challenging if you go to a large school or you’re in unfamiliar territory, like a college that’s far away from home.
Don’t stress. Making friends in college can be easy. The key is to get involved early on, put yourself out there, and always try to be your true self.
Here are some ways you can go about making friends in college.
Hang Out With Your Roommates
Whether you chose your roommate or went with a random pairing, you may or may not have a lot in common with this individual, at least from the outside. Nevertheless, it can be a good idea to try to forge a connection with your roommate. This will not only make your living situation more enjoyable, but you’ll be able to turn to your roommate when you need support.
You can bond with your roommate by cooking meals, watching favorite shows, and studying together. It can also help to be considerate and respectful of your roommate by not making too much noise late at night or early in the morning, cleaning up after yourself, and chipping in for shared supplies. By respecting your roommate’s boundaries and establishing ground rules for the room, you’ll be more likely to have a good relationship, and perhaps even become good friends, with your roommate. 💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
Join a Fraternity or Sorority
If you join a fraternity or a sorority, you’ll have the opportunity to make a lot of new friends. While some fraternities and sororities may have bad reputations because of their hazing practices and emphasis on parties, many focus on philanthropy and building friendships instead.
Just keep in mind that joining Greek life can cost $100 to $1,000 per semester, since you are generally required to pay fees or dues. The cost will vary depending on the school and chapter you join, and there may also be additional fees for first-year membership.
You’ll also need to apply to get into a sorority or fraternity and go through a recruitment process to ensure it’s going to be a good fit. Then, if you’re accepted, you will typically live with your fraternity or sorority in a house on campus and socialize and volunteer with them on a regular basis.
Recommended: 11 Strategies for Paying for College and Other Expenses
Get Involved in Clubs
Another easy way to make friends in college is to join a club. At the beginning of the school year, colleges will typically have club fairs, where club leaders set up booths and give information about their clubs to incoming freshmen and transfer students. This is where you can learn more and sign up for an initial meeting.
Some of the various types of clubs you can join include religious, political, academic, cultural, media, and community service clubs. For instance, students can join the school paper, radio or TV station, participate in math and science groups, join an on-campus religious group, find the school’s Republican and Democrat clubs, and volunteer at local animal rescue organizations or homeless shelters.
If you can’t find clubs you’re interested in, you may be able to start one of your own. You’ll likely have to go to the proper office on campus and follow the guidelines for establishing a new club.
Recommended: How to Get Involved on Campus in College
Find Study Buddies in Your Classes
Another avenue for making friends in college is through your classes. You might start or sign up for a study group, which allows students in the same class to do homework and study for tests together. If you make a connection with another student in a study group, you might suggest hanging out after the group is over or meeting up for a coffee or meal on campus another time.
Sign Up for Sports
One of the ways that many students go about making friends in college is by joining a sports team or an intramural sports club on campus. The sports teams are for athletes who are interested in playing on schools’ official teams, while intramural sports clubs are just for fun. Schools offer a variety of different sports like basketball, football, soccer, golf, tennis, and swimming. You can check out the campus life and sports section of your school’s website and look into the options.
Audition for the School Play
Theater clubs or the theater department on campus may hold auditions for school plays. You might consider auditioning for a part and making friends with the cast and crew members during rehearsal. Putting on a play can be a strong bonding experience, allowing you to cultivate lasting friendships.
Recommended: 10 Ways to Prepare for College
Go to Campus Events
Schools are always putting on events. This might include concerts, talent shows, guest speaker series, music festivals, stand-up comedy, and more. You might ask acquaintances to go to an event and/or meet new friends there. If the event is crowded, you might need to be a little more outgoing and start up conversations with the people nearby in order to (hopefully) make friends.
Connect With Other Student Workers
If you have a job or internship on campus, you might try to strike up conversations with your colleagues, as long as it doesn’t interfere with your work. Some places students may work on campus include the college’s admissions office, the endowment office, the dining hall, the coffee shop, the art museum, and the library.
Recommended: Am I Eligible for Work-Study?
Go to Social Gatherings
If your roommates or friends are holding a social gathering or going off campus to check out a local movie theater or restaurant, consider tagging along. This can be a great way to strengthen the bonds you already have, as well as meet new people. Just keep in mind that while parties can be fun, they can also distract from schoolwork and you could end up with lower grades if you are partying too often.
Recommended: The Ultimate Guide to Studying in College
Ask People to Hang Out One-on-One
Whenever you meet potential new friends in classes or through clubs, consider inviting them to hang out one-on-one to get to know them better. For example, you might ask them out for coffee or a meal, to an on-campus concert or show, to work out at the gym, or to a sports game. While this involves putting yourself out there, the rewards of making a new friend can be well worth the risk that they’ll say “no.”
The Importance of Being Yourself When Making Friends in College
Although you may be worried about making new friends in college, you generally don’t want to change your personality or hide who you really are in order to fit in. It may be a little tough at first, but by joining clubs you’re interested in and finding people who accept you for who you are, you could make lifelong friends. It can take some time and might not always happen within the first semester. However, you’ll want to keep trying to meet and connect with new people throughout your four years at college. 💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
Affording College
College is where you can set yourself up for professional success as well as make wonderful new friends. However, if you don’t know how you’ll pay for it, you might feel even more anxiety before embarking on this exciting next step in your life.
Fortunately, there are a number of ways to cover the cost of attending college, including grants, scholarships, work-study programs (which are also great for making friends), and subsidized and unsubsidized federal loans. If you get your financial aid letter and still have gaps in funding, you might also consider a private student loan.
Private loans are available through banks, credit unions, and online lenders. Unlike federal student loans, they require a credit check. However, if you have solid credit (or can recruit a cosigner who does), you may be able to qualify for a competitive interest rate. Just keep in mind that private loans may not offer the same protections that come with federal loans, such as income-driven repayment plans and forgiveness programs.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
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.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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.
The four-day workweek is the latest buzzy workplace trend, with experiments and surveys touting improved employee morale, retention and productivity.
In one study of 41 businesses across the U.S. and Canada — the majority with 25 or fewer employees — 40% of employees surveyed said they were less stressed after trying out a shorter workweek. In addition, 60% of employees reported a better work-life balance and 32% said they were less likely to quit, according to a July 2023 report by 4 Day Week Global, a nonprofit that promotes shorter workweeks.
ThredUp has seen this play out in-house over the past two years. The online clothing reseller shifted to a four-day week for corporate employees in 2021. Voluntary turnover among that group dropped 55% compared with 2019, and hiring got a boost. Most new hires cited the company’s shorter week as a deciding factor in employment, Natalie Breece, chief people and diversity officer at ThredUp, said by email.
Can a shorter workweek do the same for your business? The short answer: It depends.
“You can’t implement something like this if the underlying culture doesn’t support and nurture trust in your employees,” says Janet Lenaghan, dean of the Frank G. Zarb School of Business at Hofstra University.
For a four-day workweek to work, you need a culture that empowers employees and values results rather than face time, she says.
Planning, training and execution are also key for a successful transition to a shorter workweek.
Adjust priorities, offer training
Asking employees to squeeze five work days into four doesn’t come without adjustments.
Business leaders must assess workload, objectives and success metrics. They also need to invest in tools to streamline or automate tasks, such as accounting reports or other administrative responsibilities, so employees can better prioritize their time. Lenaghan advises leaders to “focus on tasks that drive bottom-line results.”
Large-scale pilots by 4 Day Week Global, which have taken place globally, include two months of workshops, coaching and mentoring. Companies that participate in trial runs also get ongoing support.
Before ThredUp initiated its four-day workweek, it held training sessions on topics such as “how to lead an efficient meeting, when to cancel or remove yourself from meetings, and how to efficiently communicate with employees,” Breece said.
Managers and owners must also be encouraging and set a good example, which involves refraining from sending emails or expecting employees to work on days off.
Start with a test run
A pilot program is a lower-stakes way to try out a shorter workweek and work out any kinks before making it a permanent policy.
Poll Everywhere, a technology company that develops live survey and feedback tools, dipped its toe into a shorter workweek by implementing “Summer Fridays” in 2022. The eight-week trial had bumps, including company holidays that squeezed the already shorter weeks into three days.
“Some of the problems we saw with execution and missed deadlines might have had as much to do with how the logistics were set up as with the idea of working four days a week,” says Rob Graham, CEO of Poll Everywhere.
The company revived “Summer Fridays” in 2023 with some tweaks and additional training based on employee feedback and data analysis.
“We restructured the schedule so that holidays are now considered the designated day off for that particular week,” Graham says. Managers also received special training to help improve communication and efficiency despite fewer meetings.
Tailor it to your company
Some companies can operate Monday through Thursday without impacting customers or the business. Others need some level of staffing five-to-seven days a week.
Poll Everywhere opted for a staggered schedule for specific teams, where some employees had Friday off while others chose a different day.
At ThredUp, its 273 corporate salaried employees work Monday through Thursday. In contrast, employees in the clothing reseller’s distribution centers work from three to five days a week, depending on their shift.
Expect bumps in the road
No significant business change is without its challenges. Try to anticipate these and be proactive in finding solutions when possible. And recognize that some bumps may just be the new cost of doing business.
Busy times, such as the push to finish a big project or wrapping up end-of-quarter financial reporting, will always be hectic. And it takes some effort to get back into work mode after a long weekend, Breece said.
“But these challenges aren’t unique to a four-day work week,” she said.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode: Get an inside look into strategies and pitfalls of the high-risk, high-reward world of day trading.
Hosts Sean Pyles and Andy Rosen discuss the high-stakes world of day trading and shed some light on your statistical chances of finding success. Then, Andy welcomes seasoned traders Sierra Smith and Michael Sincere to the podcast to share their perspectives. They pull back the curtain on Sierra’s typical trading morning, break down concepts like options trading and highlight the rollercoaster ride of market highs and lows.
They also discuss the profound role of social media in day trading, the importance of discipline and emotional control and the potential pitfalls and real challenges in day trading. Drawing from their personal experiences, they shed light on how they’ve learned to take profits quickly, prevent losses from spiraling and maintain a realistic perspective on potential returns.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
Sean Pyles: There was a time back, oh, about 30 years ago when headlines were filled with stories about people using newfangled technology to trade stocks minute by minute from the comfort of their couches. Today, you can trade almost second by second, but that doesn’t mean it’s a good idea.
Sierra Smith: In the beginning it’s definitely not all sunshine and rainbows. When you make mistakes in trading, those are very expensive mistakes that you are making. Especially when you’re doing day trading with options, it’s very volatile, so it’s very much high risk, high reward.
Sean Pyles: Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Andy Rosen: And I’m Andy Newfangled Rosen.
Sean Pyles: Today we have episode two of our Nerdy Deep Dive into next level investing. And Andy, let’s just start out with the caution we mentioned last episode, which is that here on Smart Money, we still think the vast majority of people will have more success with very basic investing strategies, like using the buy-and-hold strategy, investing for the long-term, utilizing low cost, lower risk index funds, seeking out safe returns like high yield savings accounts.
Andy Rosen: You’ll get no arguing from me on that, Sean. But as we noted last time, some people do want to do more on the markets. Maybe they have some playing around money, maybe their risk tolerance is higher than the average bear, or bull. Maybe they’re just curious about all these terms that they hear on the nightly news. Does anyone watch the nightly news anymore?
Sean Pyles: Nope.
Andy Rosen: Yeah, and as we also noted, it’s good to be educated about the different ways investors use the stock market and other markets, because all of it has an impact on the overall economy, which affects everybody.
Sean Pyles: Right. Well, frankly, when I hear the phrase day trading, I just think the odds are really against people. There’s research showing that only about 1% of day traders consistently make money, and some kinds of day trading, like trading options, you can actually lose more money than you put up. If you don’t know what you’re doing or your expectations are not aligned with the reality of what you’re doing, you can get into a desperate situation pretty quickly.
Andy Rosen: It is absolutely true that people can get over their heads quickly, and there are a lot of people on social media that make day trading seem like it’s easier or more profitable than it actually is. Think of it this way, if you were losing a lot of money day trading, do you think you’d go on TikTok and brag about it? I doubt it, right?
Sean Pyles: Probably not.
Andy Rosen: Yeah. If people want to try this, they need to be aware of these percentages and aware of the risks and the time and effort that is involved. You really have to be watching moment to moment to see what’s happening. But the fact is that there are a lot of day traders out there and they do help move markets, so let’s hear from a couple of them to try to understand what they do and how it really works.
Sean Pyles: Let’s do it. But before we get to that, a reminder from the lovely folks on the NerdWallet legal team, we Nerds are not financial or investment advisors, we will not tell you what to do with your money. Everything in this episode and this series is to provide you, our dear listener, with the knowledge to make informed decisions with your own money.
And listener, we want to hear what you think, too. To share your thoughts around next-level investing with us, 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]. Andy, who are we hearing from today?
Andy Rosen: We’re hearing from two day traders, one former, one current. Sierra Smith is a trader and social media creator who runs a Discord server where she and other traders talk about strategy, trading concepts, etcetera. She’s based in Houston, and you can find her on TikTok or YouTube as well.
Michael Sincere is an author and speaker about investing topics. Among his books is “Understanding Options” and “Start Day Trading Now.” And he’s also a financial columnist for MarketWatch. He’s based in Miami.
Sean Pyles: Hey, Andy, before we go any further, let’s take a second to talk about what a Discord server is and what it means to run one. A lot of folks might not be familiar with this. You said Sierra does this, right?
Andy Rosen: Right. Without getting into too much detail, Discord is basically a chat service organized around a specific topic or interest group. And they’re particularly popular among video gamers, that’s where the service rose to popularity, but they’ve developed a big audience in the online investing world. Content creators like Sierra will often use Discord servers to connect with their audiences. If you haven’t used Discord, think of it as something like a mixture between Slack or Microsoft Teams with a little bit of Reddit mixed in.
Sean Pyles: OK, cool.
Andy Rosen: Sierra, Michael, welcome to Smart Money.
Sierra Smith: Thank you for having me.
Michael Sincere: Thanks for having me, too.
Andy Rosen: The first thing I want to know is, I guess I’ll start with Sierra, did you do any day trading today?
Sierra Smith: I actually did do some day trading today.
Andy Rosen: Tell me, just as an easy example to pull out of your head, what did you do? Just talk to me about what your morning went like.
Sierra Smith: This morning specifically I did live trading with my Discord server. We got on around 8:15, I marked up three different stocks for them, so that way they could have a variety to choose from if they chose to take some trades. I personally took Apple today, I traded Apple. I took calls, which essentially means that I believe the stock is going to go up, for those who don’t understand options terminology or anything.
Yeah, that’s what my morning was today, day trading. And then afterwards we just did some education. We did some trade recap for some people who didn’t win on their trade, we went over why they didn’t. Yeah, that was pretty much my early morning today.
Andy Rosen: And can you tell me what you saw in Apple this morning, in layman’s terms, that made you feel confident about making those short-term trades?
Sierra Smith: I think Apple was the price in the pre-market. There’s pre-market and post-market, and there’s actual market hours. Pre-market with options you cannot trade. But in the pre-market it was sitting within this demand zone, I believe. And so if it’s within a demand zone, that essentially means that the stock most likely will go up from there.
I just facilitate, I’m going to take Apple calls today, because it’s within that zone, which is the whole chart analysis that we did before the market opened. And so that way when the market actually opened, we were able to take that trade based off of that prior analysis.
Andy Rosen: And Michael, I know you’re not really doing day trading anymore. Tell me what your daily thinking about your portfolio looks like.
Michael Sincere: Right. What Sierra was doing was something I did do in the past, mostly when there was a volatile market. And I would jump on some of the hot stocks and ride it higher. And I stopped it because it’s wonderful when you’re on the right side, but if you’re not, it can turn around really quickly.
To answer your specific question, I switched from day trading to a more traditional buy index funds. And I sell covered calls, which is also an option strategy, but to me it’s a lot less risky than day trading.
Andy Rosen: Just for the people out there: When you sell a covered call, basically what you’re doing, if I’m understanding correctly, is you are selling an option for someone else to buy a stock that you already own. So if your trade doesn’t work out, you at least have the stock to back it up. You’re not going to have to buy a stock at a higher price than you might want to pay for it in order to sell it. Is that accurate?
Michael Sincere: It is, and I’ll give you an example. Let’s say I bought Apple, and then what I would do is I would rent out those shares to Sierra, who’s buying calls. I’m selling those calls to her, she’s buying them. I wouldn’t make as much money on it, but I do get an immediate income. And so what I do is I sell them to the speculators, and I’m like the landlord. I get my income and I just want my nice income and I don’t have to go through the stress of watching it all day long, every minute, can’t even go to the bathroom. That lifestyle I decided to walk away from. But by selling the covered calls, basically Sierra or another speculator, they basically own the rights to it, and they can sell it from me at any time. So I just wait a month or whatever timeline that I decide to sell those calls on.
Andy Rosen: Got it. Maybe you folks have met before, even without knowing.
Sierra Smith: Probably.
Michael Sincere: Absolutely. I hope you enjoyed those calls I made and bought today.
Sierra Smith: I did.
Michael Sincere: Thanks.
Andy Rosen: Let’s go back and hear a little bit about each of you with your origin stories. Maybe start with Sierra. How old were you when you started trading? What made you start? Tell me a little bit about how you got into it.
Sierra Smith: I started trading when I was 18 years old. After I had graduated high school, I had a friend, and he had posted on social media, he had bought his dream car at 18. And I’m like, what? We just graduated high school, so it doesn’t make sense for you to be buying your dream car at that age, or so I thought. And so I asked him, I was like, “What do you do? How did you buy that car?” And he told me that he traded options. And I’m like, hmm. I’ve never heard about options trading before, all I knew was I can buy a stock if I so wanted to.
And so he taught me how to trade options. And then from there I just started trading. I spent a lot of time looking at charts. I’ve just fallen in love with trading. I’ve just been trading, I would say I trade at least four out of five days of the week, even now.
And it’s just because now I think my shift with trading has focused from not trying to trade to survive and make a living and provide for myself, but now it’s just trading just to make some income. And just because I love trading, I really do love what I do. I’m really passionate about it. Because I think when people hear trading, they have a whole negative stigma around it. Or when it comes to financial stuff in general, people get leery. No matter what it is, whether it’s trading or investing or whether it’s buying something off the street, people get a little leery when it comes to putting their money in certain places. I just think being able to de-stigmatize trading as a whole is something that I love to be able to do.
Andy Rosen: You talk about how you love it. What makes you love it? And do you love it every day? There can’t be all sunshine and rainbows, can it?
Sierra Smith: In the beginning, it’s definitely not all sunshine or rainbows. When you make mistakes in trading, those are very expensive mistakes that you are making. Especially when you’re doing day trading with options, it’s very volatile, especially the way that I trade. So it’s very much high risk, high reward.
Obviously, the days that I win, I’m having a great day. I love it then. But obviously those losing days are really hard. After you get more comfortable trading, you realize how to take losses with a grain of salt. Those larger losses, those hurt. But when it comes to options trading, you just have to build up a sort of mental fortitude, especially if you trade the way that I do. While I do agree, there are definitely less riskier ways to trade, that’s just how I personally do it. Because like I said, I’m 20 and I like to make risks. It works for me.
Andy Rosen: Got it. I’m 39 and I use a robo-advisor.
Michael, I know you’ve done a lot of research and writing about various aspects of navigating the financial world, but you’ve done some specific research into the world of day trading. I was wondering if you could give a really quick Cliff’s Notes about how this became a normal part of the financial world. It wasn’t too long ago that regular people could not just log onto their computer and trade stocks on their own. You would’ve had to go through a lot more hoops than you can do now. Can you talk just a little bit about the history and maybe you can segue into how you became acquainted with it?
Michael Sincere: Well, the history goes back to the ’90s, when I was beginning as well. All of a sudden I discovered trading. And I think it started with Netscape, which I think went up an unbelievable amount of money in one day because of something called the internet, which was suddenly discovered. Before, if you were day trading or any kind of trading, it would cost you as much as $100 per trade. And once the internet came and these companies started switching to online trading, it went from $100 per trade to maybe $20 a trade. And as you know, now it’s pretty much free. But that’s when I got involved.
And in the ’90s, the day trading was unbelievable. It seemed like any stock you bought related to internet, you could make $20,000, $30,000 a day. And that’s when it really got really popular. Unfortunately, it all came to a screeching halt when the market, I think it was around 2000, when it all crashed. And all the day traders started losing money. All their money.
I was on these websites and I saw them just panicked as they … I’m trying to think of some of the stocks they bought, but many blew up, like Pets.com and all these others. And people got sick of day trading for many years. The majority did.
And then now it’s made a resurgence again, or at least it did over the last few years. And so Sierra, what she’s doing is it’s, as she said, high risk, high reward. It’s intense. You have to sit, be in front of the computer all the time. And day trading options is even more speculative. And I wrote books on options and on day trading. But when you combine day trading with options, the way options work, they can switch in a minute. You could be up and then the next minute you could be down. I have a lot of respect for anyone who can book a profit.
For me, I was trying all types of trading and decided to write books about it. Because I made so many mistakes, lost so much money at first, and so I was trying to help other people. And that’s when I both wrote books on day trading and options. I think I wrote about eight books on both.
Andy Rosen: I did want to ask, both of you in different ways have made part of your living out of talking about trading, and talking about the financial world with people. And I think this is true of a lot of people who get into this world. There is this content aspect to it. Tell me why you think the public-facing aspect of it seems to be important to a lot of traders, from the influencers to the authors.
Sierra Smith: I know from my experience, I can say I recently started utilizing social media to talk about trading. And so I had made a TikTok about it online, and it blew up and it went viral. And so many people were like, “Oh, I’m super interested in trading, and I would love to learn.” And for the first time in two years I was like, you know what? Maybe I will start teaching. Because I’ve never wanted to teach people about trading. I just would do it by myself and go on about my day. But I think when it comes to the social media aspect of trading, I think people have to see that it works for other people. They have to see how it works, why it works, in order to want to get into it. Because everybody knows you can buy and sell stocks, but no one really knows how profitable it could be or what that looks like on a day-to-day basis. I think the social media projection of it really helps bring people into the trading industry, if you want to call it that.
Sean Pyles: I saw on one of your — I think it was a TikTok video that you made — I saw you talking about how there’s a lot of people on social media that will tell you, “Oh, I did these three trades that I made this amount of money,” and you were warning people it’s not that simple.
Sierra Smith: Yeah.
Sean Pyles: What do you think are some of the pitfalls of social media based investing?
Sierra Smith: I think one of the pitfalls of it is everybody wants to make trading seem like it’s perfect. And then people always want to post what they’ve made in their profits, but they won’t talk about their losses or they won’t talk about what they put in.
I know as far as options goes, it’s a lot about percentage. That’s how I see it. For example, if I tell you guys that I’ve made $10,000 in a day, it’s not because I turned $10 into $10,000. It’s usually because, OK, I made a put at 40, it made 25% on that trade.
I think the pitfall, the major pitfall when it comes to trading and social media, is that people don’t advertise the entirety of what it is. And a lot of people end up getting into trading thinking that they’re going to turn $50 into $5,000 in two days, and that’s just not realistic.
Andy Rosen: Michael, obviously you’re maybe not as active on social, but you’ve done quite a lot of content around these kinds of activities. What’s your perspective on it?
Michael Sincere: Well, first of all, by writing these books I was able to speak to some of the best traders and investors in the world, like Peter Lynch, Mark D. Cook, who passed away. But Mark D. Cook was one of the top option traders in the world, and was successful for many, many years. I used to interview him all the time and he became a friend, so I learned a lot from him. And it took him five years to become successful. It was very difficult those first five years, and he wanted to give up many times trading options. But then he found his system.
And what I learned from him, and my own experience, is it’s really the emotion that gets everybody. It’s really the discipline and emotion. Everyone talks about the discipline, but they don’t really know what it means until they start trading. And what I mean is you’re in a losing trade and you’re ready to lose $10,000. And you have to figure out very quickly whether you close the trade, whether you add more to it, whether you hold, and these are lightning-fast decisions that really hurt a lot of people.
I’m sure Sierra’s gone through this many times. I’ve found from my experience, it’s very difficult. Beginners have high expectations about how easy it is to make money, as Sierra said. But it does take a long time to find your own style. And trading’s not for everybody, too.
And some of the pitfalls I’ve found is, one, a lot of people turn from trading to gambling. It’s very easy to do. You think you’re trading, you’re following everything, but you’re betting way too much money on a trade. Which means, yes, you can make $100,000, but you also could lose that exact same amount if you’re not careful. Which is why I tell people the number one rule is to trade small, especially when you’re beginning. Do not try to make $100,000 in one day, try to make a few hundred. If you can do that consistently over a long period of time, then you may have a shot at it. But if you come in there trying to make big, big bucks, nine out of 10 are going to blow up their account, in my opinion.
Sierra Smith: Yeah, I’m definitely seeing more people fail than succeed when it comes to starting out in trading, and that’s just because so many people think trading is going to be so easy. A lot of people don’t exercise proper risk management, which is something that anybody that’s been trading for a while will tell you to exercise.
Or the way somebody with a larger account size trades is entirely different in the way somebody with a smaller account size trades. For me, I have a larger account size, so I can put tens of thousands of dollars into a trade and be OK with it with the way that I trade. But the strategy that I use may not work for somebody who only has $500 in their account. And so I think a lot of people just assume that you can just make all this money overnight, and they end up just getting so discouraged beyond trading. Which sucks, because trading for me obviously has changed my life, and I think there’s so many good and positives to it, but I just don’t think people are really fully educated on what trading really is.
Andy Rosen: I do want to get back to some things that might help those beginner level people who just know this term and want to get a sense of it. Michael, if you would be willing, could you just tell us a little bit more about how you moved off of day trading? You talked a little bit just about the lifestyle and why it didn’t work for you, but just a little more detail on how your views evolved would be awesome.
Michael Sincere: I kept coming back to the fact that the strategy that worked again and again — and I used to have long conversations with John Bogle as well, who was the father of indexing — and I found out that over and over I was making more money on a longer-term basis just by buying and holding these index funds. At the same time, I was trying to make fast money using the strategies Sierra’s using, like momentum trading. And I actually did do option trading with momentum. I found it extremely stressful. I found out I had to devote entire days to it. I tried to get out by noon. That was my goal each day, get in at the open, ride it and then get out. And yes, on the good days, I’d make pretty good money. I’d make $10,000 on good days. Once I made $30,000 and I was riding high. Three days later, I believe, I lost it all.
I found out after about a year of this, it was not for me. You have to know your own personality. And I found, for my personality, I couldn’t take the stress of it every day. And so I pretty much stopped day trading, and I wrote books on helping people manage the risk part of it. Anyone can learn about the technical aspects of it, like the charting and the indicators, but it’s the emotions that are the difficult part to manage. That’s what really ruins most people. I emotionally did not have what it takes to be a professional day trader, especially a momentum trader. And I saw that it was easy to blow up my account. And some days I’d blow up that day or that week, and I got out of it.
Andy Rosen: Sierra, it must also take nerves of steel to stop after a couple minutes. If you’re doing well, it’s probably tempting to say, oh, I could get more. Right? It seems like one of the things you’re describing is managing that and knowing when to stop. I would love to hear either one of you talk about when to stop. When it’s time to stop, whether you’re having a good day or a bad day. When it’s prudent to take a deep breath.
Sierra Smith: One thing I always tell my students is that when it comes to day trading, green is green. It doesn’t matter if you made $500 or $5. Because I promise if you saw $5 on the ground, you would pick it up. I think I have lost so much money in the markets just holding out on trades and just like, hey, you know what? It’s going up. I could hold this out for five more minutes, 10 more minutes, and then it ends up reversing back down against my trend. And the minute that I see I’m in profit enough that I’m happy with, I will end my trade. And I think the reason why I trade like that, again, is because I’m at a point where it’s not like I’m trading trying to compound my account and secure my lifestyle.
That’s all said and done now. I feel like now my trade’s very relaxed. It’s just get in, get out, make something for today, and then go on about my day. That’s why I’m OK with just being in trades for a few minutes. Sometimes I will exit a trade and then the stock will run three more dollars and I’m like, man, I could have made so much money. But as long as I left with something, I’m good.
Andy Rosen: And what about on a bad day? There’s got to be a temptation to chase a loss to try to get it back. How do you manage that?
Sierra Smith: I have trading rules, actually. I have personal rules for me when it comes to trading. If I take a loss, I’m just going to be done for the day. Honestly, I could have a risk or a probability of being able to make that back, but I would rather take one loss than take two losses or three losses trying to keep revenge trading and get that back. Lost a lot of money doing that also. I’ll no longer be doing that when it comes to trading. I just think when you take a loss, you have to make sure that you don’t let your losses lose that battle, if that makes sense. Obviously you have to have a stop loss and proper risk management, so that way it’s not like when you do lose, you’re losing your entire account size every single time.
Andy Rosen: Tell me, if there are listeners out there who are thinking, this sounds fun, this is something I might be interested in, I would like to try it out, where do you recommend people start? What’s the first step someone should take? Thinking of someone who might not even have a brokerage account and just wants to figure out if day trading is something they could ever do.
Sierra Smith: I think people who want to start, should start with not by learning anything about brokerage accounts or charting or anything, I think they just need to learn what trading is and what trading is not. Because I know a lot of people want to start when they hear how much money that people have made, but they have to understand what trading is. What trading really is and what it isn’t.
And then after that, I say people need to start with just looking at charts and just seeing if they can find some that make sense to them. And the biggest thing that helped me learn how to trade was having somebody who walked through it with me. Because you have to know what type of learner you are. Some people can read books on options training and learn. Some people watch videos, some people need one-on-ones with people. So just figuring out how you learn and using that and applying that to the trading world.
Andy Rosen: Michael, what do you think?
Michael Sincere: I think that people should, again, as I said, start small. I think if they know nothing about the market at all, they should start with opening up an account, starting with index funds or mutual funds. Start at that level. They really need to understand the stock market first. If you want to become a day trader of stocks, do a small amount, open up. But you have to start with the brokerage account, you have to learn the different aspects. And that means learning about the indicators and learning there’s a lot to the market that a lot of people don’t know.
Now, eventually, if you want to trade options, you should first start by learning the different aspects of options. There are great books on trading and on investing with options. But again, there’s no rush. If you’re coming in trying to make big money fast, that may not turn out so well. Basically, become a student of the market.
Andy Rosen: Both of you. Thank you so much for coming onto the show and telling us about your perspectives. Thank you so much.
Michael Sincere: Thank you.
Sierra Smith: You are so welcome. Thanks for having me.
Sean Pyles: Hey, Andy, I’ve got to tell you, I am pretty torn after hearing that conversation. Sierra seems to be living a super cool and successful life at such a young age. And there’s part of me that wants that, but there’s another much more rational part of me that knows that it’s just not realistic.
You hear about all the money she’s made, and it can be easy to forget that the vast majority of day traders lose money. I really view Sierra’s narrative as a cautionary tale, maybe, for her followers online more than for Sierra herself, because people might view her TikToks or courses, or those of another day trader, and think that this is a secret path to instant wealth, but it’s really not. Again, in all likelihood, you’re going to lose money if you do what Sierra does.
Andy Rosen: Sean, I think I have to agree. Obviously, Sierra does seem to be living a super cool life. She seems to be having a really good time, and that’s her life. And a lot of people have tried this and had very different results. And so, yeah, you might wind up like her and you might envy her, but on the other hand, you could wind up like the majority of traders and not get the kind of results you’re looking for, or wind up losing something that’s important to you.
You may be able to improve your chances by doing very scrupulous research, paying really close attention to your investments and how they’re performing moment to moment. But on the other hand, your research may lead you, as it seems to have done Sean, to the conclusion that this investing style isn’t for you. Maybe you don’t even have the time for it. And many people spend hours doing this every day and still lose money. As we said before, those are not the people you tend to see promoting their trade as much as the winners do.
Sean Pyles: No, and that’s why at the end of the day I know that I’m much more of a Michael than a Sierra. I love to do some research and have a solid understanding of what I’m going to be doing with my investment strategy. Plus, like Michael, I do not have the emotional fortitude to weather the big ups and downs that Sierra experiences on a daily or hourly basis.
All right, well Andy, how about a preview of what’s coming up in episode three of this series? Are we going to Vegas?
Andy Rosen: Well, some people would say we are, because we’re talking about options trading, short selling, derivatives, and contracts, all of which can have huge upsides and huge downsides. But they’re also very important in the market, so it’s worth hearing how they work, who might want to include them as part of a diversified portfolio, and how to know when it’s time to leave it to the pros.
Sam Taube: The risk and reward tends to be a lot higher than with just stock ownership. Because generally, with derivatives trading, you’re either going to get a big payout, double your money or something like that, or you’re going to lose everything you invested in a particular contract.
Sean Pyles: For now, that is all we have for this episode. If you have a money question of your own about investing or anything else, turn to the Nerds and call or text us on the Nerd hotline at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Andy Rosen: This episode was produced by Tess Vigeland and me, Andy Rosen. Sean and Liz Weston helped with editing. Chris Davis helped with the fact-checking. Kaely Monahan mixed our audio. And a big thank you to the folks on the NerdWallet copy desk for all their help.
Sean Pyles: Here’s our brief disclaimer one last time. 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. And with that said, until next time, turn to the Nerds.
Is the dating scene a little too daunting to face right now? You’re not alone. Whether it’s because of contagious layoffs, social distancing requirements, or generally low morale due to COVID-19, lots of people have been avoiding romantic entanglements in the last few years. So if you’re feeling embarrassed about your decision to step back from dating, or you’re confused why your friends are—we’ve compiled a list of the top things that might make a person take an extra-long break from the world of love.
1. You’ve Had Your Trust Broken
One user shared, “Just ending a 12-year relationship when my wife passed. Found out by looking through her phone that she had a bunch of relationships with men throughout our years together, both online-only relationships and in-person relationships. I had no clue because I trusted her completely. It makes me feel like I can never trust another partner once I get through the healing process.”
One user exclaimed, “Dude. What. The. Fudge.”
Another added, “Dude, just the combo of how angry and betrayed you’d feel, with the guilt over the feelings cause she’s dead.”
One Redditor sympathized, “I am SO sorry.”
The OP answered, “Thanks, it’s been a rough month.”
2. You’re Near Burnout
One Redditor posted, “Broke and tired.”
Another user commented with a pun, “Broken and tired for me.”
“Yeah, I’m gonna go with all three on this one. Broken, broken, and tired. Pill addiction doesn’t help, either. Don’t want to bring another person into my chaos right now; that person deserves better,” one commenter agreed.
Another commenter added, “You deserve better, too.”
3. You Want to Grow First
One commenter added, “Require more self-growth. I don’t know if I can trust myself to not go into people-pleasing mode rather than asserting my needs and boundaries and ending up in another years-long relationship with someone I just am not into.”
Another Redditor responded, “This is so very relatable.”
4. You’re Working Through Things
One user said, “I’m not dating because I’m currently undateable. I have some serious issues that I’m working on.”
Another user commented, “Good for you for working on yourself instead of desperately hunting for someone to distract from the problems.”
“Love this,” one commenter added.
One user asked, “What kind of issues? I know that’s a personal question, but I wonder what people mean when they say that.”
The OP replied, “It’s ok to ask. I’m on chemo, for one. I’m also fairly depressed and anxious.”
Another user shared, “I quit my job to take care of my mom who went into hospice… She passed away from cancer. My elderly father, who was destroyed by the whole thing, caught pneumonia, influenza, and covid a few months after… spent months in the hospital, and I’ve been nursing him back to health since discharge… where my wife divorced me and took our kid away.
“All this in a span of a year. I am unemployed, recently divorced, and taking care of my 90yo father while living in my deceased mother’s basement. I am working through serious issues. I am undateable.”
However, one user commented, “You know, for people who are taking care of their parents and loved ones: Please don’t think just because you may not have the energy and space to be present in a relationship right now means you’re undateable. I think it’s very noble to be caring for your parents (if I do say so myself.)
“If you haven’t already, join our/AgingParents. It’s tough, and reading about others going through the same is helpful. Edit: I forgot a few words.”
4. You’re Tired of Online Dating
One user said, “The fact that I have to endlessly scroll and go through the Tinder/Bumble/Hinge dance to connect with someone. I think we’re all tired of it.”
Another user responded, “I finally deactivated my profile a few months ago, and don’t miss it at all. I had been in the cycle of deleting the apps and redownloading a few days later for a long time because there was always that FOMO of ‘maybe I got a new match,’ but now I’ve taken that away. In the last few years, it’s really started to feel like they purposefully make the apps barely work unless you pay, and even when I have paid for a month here and there, I’ve never had much luck. Just preying on desperate lonely people for our data and money.
“I haven’t really dated anyone I’ve met in real life in a long time, but I’m just gonna keep living my life, and if someone comes along, that’s great. The apps are an emotional and energetic drain for seemingly little payoff.”
Another Redditor added, “I actually had a moment of weakness last month and paid for Tinder, Hinge, and Plenty of Fish all at once. Just one month, but still, it wasn’t cheap. Wanna know what I got from it? Zilch. Waste of damn money. Yes, I can see who liked me. Guess what? Bots. All bots. Once the month is out, I am deleting all of those apps. I’ll keep the Facebook dating thing going since it is free, but I don’t expect much from it.
“It’s so unnatural to try to force a conversation with someone you didn’t meet organically. My plan going forward is going to be to try to meet people through my hobbies and volunteering work. It might work, and it might not. But at least I won’t feel like I am trying to force anything unnaturally.”
5. You Don’t Like the Available Options
One frustrated Redditor said, “The dating pool needs chlorine.”
Another user commented, “Indeed. And I’ve learned to avoid the shallow end.”
“My thoughts exactly,” a third user confirmed.
6. You Have Bad Relationship Habits to Break
“Relationship me is the worst me,” one user commented.
One user replied, “Real talk… I get obsessive, extra moody, and clingy. Single me lets things go a lot more easily & pours my energy into objectively productive & healthy things.”
Another added, “Don’t forget to be anxious when they don’t respond to texts fast enough. I’m so much more at peace on my own.”
One Redditor user joked, “Hi! Don’t call me out like this. Thanks!”
7. You Don’t Think You’re Likeable
“I feel like no one I like will truly like me back,” one user shared.
One user replied, “I used to feel like this. Then I met my ex’s mom. She was so nuts but deeply loved by her husband, and now I always think ‘if she can find it, why not me.’”
Another added, “The first two sentences had me thinking it was going to go in a different direction.”
One user commented, “Yup. This, too. Every person I like isn’t interested.”
8. You Don’t Have the Energy
One Redditor posted, “The dating scene is so demanding. Ugh, I don’t have the energy for anyone like that anymore.”
Another added, “I agree. I don’t have the energy.”
Another user joked, “You two should date.”
9. You Want Commitment
A user commented, “Lack of options for serious monogamy.”
One replied, “Hell yeah. Nowadays, being 25 and looking forward to a serious relationship that hopefully will grow into marriage is almost shunned. Like I’m not damaged goods or inferior because I want a proper relationship instead of being a [f- boy].”
“I feel that… so many are into polygamy these days. While that’s a perfectly valid way to live, that is not my way. I prefer to know every bit about my special person… all their moods and quirks… I feel it gets difficult to appreciate when more than one person is in the mix… even if only casually… but again, that’s just me,” another user responded.
10. You Don’t Like Small Talk
One user posted, “I can’t go from, ‘What’s this thing on my back’ back to ‘What’s your favorite color?’”
Another replied, “Yes. This is it right here. It takes me so damn long to truly let go and say goodbye to that closeness. And when I finally do heal, grieve, and move on, I just can’t fathom starting back at square one again with a whole new person. I honestly don’t know how people cycle so quickly from one relationship to the next. I love pretty deeply and just can’t keep starting over. It feels unnatural.”
One user also commented, “They bottle everything up and tell themselves they are fine. That’s how.”
“This is so relatable; thank you for giving a great example!” replied another commenter.
11. You Lost the One You Loved
“The person I loved died. I doubt I’ll find anyone as wonderful as she was again,” one user commented.
Another user replied, “I’m sorry. I hope you have a delicious meal in the next 48 hours.”
The OP answered, “I’m having one right now, in fact. Thank you for your kind words.”
12. You Keep Finding the Wrong People
One Redditor commented, “Amazing connections with the wrong people, the pain that comes after it doesn’t work out.”
13. You’re Depressed
One Redditor added, “Depression makes me isolate myself.”
Another user replied, “Yep, I have it, and after my last boyfriend and some of the stuff he said… I think I’m better off by myself, so I don’t bother anyone or worry about certain stuff.”
One Redditor added, “Depression can make you believe your only choices are crappy partners or no partner. I was stuck in that place for a decade. Don’t listen to your glitching brain. It lies to you.”
14. You Don’t Feel Like Yourself Around Others
One user shared, “I haven’t met a guy that makes me feel like I can be myself around him.”
Another replied, “I’m always curious when I hear this. What part of yourself do you feel is stifled around guys? This is said a lot by both men and women, so there’s obviously something to it.”
One commenter added, “When it comes to your interests and personality, people who seem to have specific expectations of what you should be like or people who judge you when you express yourself or the things you like. Last year I was dating someone and chose not to share things that made me excited because I worried he’d look down on them or tease me for them.
“But also, more positively, there are just some people that you connect with easily and that make you feel super comfortable. Someone could be a wonderful person, but not right for you because you don’t click in that way and feel like yourself with them.”
15. You Think You’re Too Strange
“I have too many quirks and weirdnesses. I’m sure there is someone out there who would be interested, but the amount of effort it would take to find them is just way too much work for limited gain,” one Redditor posted.
Another commenter seconded, “This! And just being understood in general, especially when you’re ‘weird’ or ‘complex.’ Reaching even a quarter way with someone who seems like they get you, but then THEY do/say something to show you that they actually can’t deal, and having to restart with someone else is too exhausting and can make it all seem pointless.”
One user commented, “This is how I feel sometimes. I used to think that I might be too complicated for therapy, but since I started actually going to therapy, I feel like I’m not as complicated or weird as I thought. Maybe I’ve just been too harsh on myself and forget that a lot of people are just as, if not more, weird and quirky as me. Maybe I’ve been too anxious about meeting people and need to stop overthinking and just get out there.”
Do you agree with this list? Share your thoughts and leave your comments below.
Source: Reddit.
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Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
Before becoming a Realtor, Brett Rosenthal worked as a real estate attorney. Today, he joins us to talk about his transition to real estate sales and the strategies that helped him find fast success in his new career. Brett shares ways to get more, better leads and covers the art of building rapport when in front of potential clients. This podcast also features market predictions and advice for new real estate agents.
Listen to today’s show and learn:
About Brett Rosenthal [1:03]
Brett’s transition from real estate law to real estate sales [2:05]
How a legal background may help your real estate business [3:14]
Why Brett never turns down a deal [4:13]
Brett’s first year in real estate [5:12]
Why real estate agents shouldn’t only talk about real estate [6:17]
What it’s like starting a real estate team [9:17]
Alternative ways to win new business [10:30]
A trap that too many Realtors fall into [12:37]
Stats from Zillow on who consumers choose as their Realtor [14:38]
Brett’s follow-up plan [15:48]
Why Brett loves Follow Up Boss [17:11]
How Brett’s real estate sales have grown over time [24:01]
Crucial tasks for generating new business [25:25]
A realization that helped Caleb ramp up his repeat and referral business [27:33]
Strategies for getting more client reviews [29:25]
What’s worked best for Brett on social media [32:38]
The future of the Philadelphia real estate market [37:16]
A value proposition for investors [39:33]
Caleb’s real estate predictions [40:47]
Brett’s advice for new real estate agents [42:12]
Tips on getting your articles picked up by real estate websites [44:54]
Where to find and follow Brett Rosenthal [48:24]
Brett Rosenthal
As an experienced real estate professional, Brett is a member of the top unit producing, award-winning Revolve Philly Group at COMPASS. Their offices are located in Center City Philadelphia and they also work out of Manayunk, Chestnut Hill, Ardmore, and Blue Bell. Brett cover all areas of the City of Philadelphia and the surrounding suburbs, including the Main Line, Bucks County, Delaware and Montgomery County.
Brett has received numerous awards and recognition for his sales performance. He was recently ranked in Homesnap’s Top 5 Percent Realtors. Brett was awarded as a Top Real Estate Producer by Philadelphia Magazine. He is a member of the Pennsylvania and Montgomery County Association of Realtors®. Prior to real estate, Brett worked as a sales executive and manager for a business technology company and was an Attorney where he worked in Real Estate Law for a large NYC Law Firm. He received his real estate license in 2015 and focus on providing home buyers and sellers with professional, responsive and attentive real estate services. Brett understands the importance of listening to his clients to find them exactly what they want in a home. Skilled in effectively marketing all ranges of residential and commercial real estate, Brett offers assistance with single family homes, condos, multifamily properties and investment properties. He practices patience, clear communication, and skilled negotiation to work with his clients and adapt to their wants and needs.
Brett’s flexibility, listening skills and hard work ethic contribute to his success. He has had over 215 transactions over the last two years and can sell a home in all markets. Brett’s passion in Real Estate is also helping others succeed in the industry and am constantly looking to hire new agents for their team and help them have instant success. Active in his community, Brett coaches a youth ice hockey team and reside in Philadelphia. As a leader of the busy Revolve Philly Group, Brett has helped many Realtors without any experience at all start successful Real Estate careers and help tons of home buyers and sellers in the Philadelphia area with their home needs. Contact Brett, he would love to work with you!
Related Links and Resources:
Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Banks seeking to sell commercial-property loans are encountering a dried-up market with few options for an easy exit.
Lenders including Goldman Sachs Group Inc. and JPMorgan Chase & Co. have been trying to sell debt backed by offices, hotels and even apartments in recent months, but many are finding that tidying up loan books is no easy feat when concerns about commercial real estate have surged.
This year’s rise in borrowing costs has made commercial real estate one of the hardest-hit areas of the economy. Property sales, especially for office buildings, have slowed to a trickle, giving landlords and lenders few markers to determine the value of certain assets. In the absence of transactions, stakeholders are closely watching the loan sale market to see what price banks can ultimately nab for some of the loans.
Banks have been eager to sell what they can, at times to shore up liquidity or to avoid complicated situations that may crop up when a loan is maturing and needs to be refinanced. For some lenders, taking a slight haircut on the price may be better than running the risk that the lender has to foreclose and ultimately ends up stuck with the property, according to Gregory Hagood, president of SOLIC Capital, which has an investment banking practice.
“Even if most of these are performing loans today, they’re trying to reduce their exposure by selling loans at a discount as they head into a refinance cycle,” Hagood said. “A lot of these banks will say, ‘I’d rather take the hit there than take the hit on a foreclosure and have to deal with the asset after.'”
Goldman and JPMorgan, along with other banks including Capital One Financial Corp. and M&T Bank Corp., have sought to sell property debt in recent months, seeking buyers both for one-off sales and transactions for portfolios of loans, according to people familiar with the matter, who asked not to be identified citing private information.
While pressure is building on banks to reduce their commercial-property exposure, distressed loan sales are still relatively rare. Many banks are opting to hold onto the debt for longer and work out situations with different borrowers.
Hit the Numbers
With so few sales occurring, it’s been hard to figure out exactly what the loans are worth. On top of that, some sellers have become more cautious about what bids they’ll accept, especially after the spate of bank failures earlier this year. Too low of a price could spook investors and raise concerns about the health of the financial institution, according to Josh Zegen, co-founder of Madison Realty Capital, a non-bank lender.
“Some banks have tested the market on office loans and they just can’t hit the numbers,” Zegen said. “There’s too much of a bid-ask spread, and there’s really nothing to talk about because agreeing to the lower pricing would make these banks more insolvent.”
Given the banks’ caution about accepting too low of a price, some lenders have opted to entice buyers through other means. Seller financing has become one option, where the seller helps the loan’s buyer finance the purchase.
It’s become particularly challenging for debt tied to offices — the property type that’s seen its value plummet the most over the past 12 months. Job cuts and the rise in remote work have led to record vacancies across major cities, while higher borrowing costs have made financing more difficult.
“We don’t know yet where tenant demand shakes out, and in the absence of that, you can’t have stability in the market,” said Winston Fisher, a partner at New York-based real estate investment firm Fisher Brothers. “We’re a contractual income business. If you don’t know where that contractual income is going to stabilize, how do you value it?”
Shopping Loans
Capital One has struggled to offload a large office debt portfolio with a heavy concentration in the tri-state area including parts of New York, according to people familiar with the matter who asked not to be identified discussing private information.
Capital One Chief Financial Officer Andrew Young told investors in July that the bank had moved about $900 million of loans from its office portfolio to a “held for sale” designation as it seeks to offload the debt.
Earlier this year, Webster Financial Corp. sold an $80 million portfolio tied to offices and mixed-use properties in Connecticut, New Jersey and New York.
JPMorgan is exploring a sale of a $350 million loan that’s backed by Manhattan’s HSBC Tower, Bloomberg reported in July. The bank has approached potential buyers to sell the loan at par, while offering cheaper-than-market financing.
Spokespeople for Capital One and JPMorgan declined to comment.
Banks have also sought to sell debt on other types of real estate besides offices, such as apartments or hotels. Pricing has held up better for those property types, with apartment values dropping 16% over the past 12 months through July compared with a 27% decline for offices, according to real estate analytics firm Green Street. Hotel prices were unchanged over that time period.
Goldman has sought to offload hotel and apartment loans, according to people familiar with the matter, who asked not to be identified citing private information. Meanwhile, M&T is in the market with a hotel loan too, the people said.
Spokespeople for Goldman and M&T declined to comment.
Lenders that have found buyers for loan portfolios have used the deals to help shore up liquidity at a time of increased stress across the banking industry. PacWest Bancorp, for example, has been selling construction loans and other real estate debt.
Because recent loans at higher rates are more profitable, banks are becoming more inclined to get rid of low-yielding, high-maintenance “dead money” loans with limited prospects for returns, according to Will Sledge, senior managing director in Jones Lang LaSalle Inc.’s capital markets group.
“Liquidity is a prized possession,” Sledge said.
The industry is keenly watching one big potential sale that’s being managed by brokerage Newmark Group Inc. The Federal Deposit Insurance Corp. is seeking to offload about $60 billion of loans — many of which are tied to real estate — from the failed Signature Bank.
Walking Away
Banks are facing the prospects of getting stuck holding the properties in some situations. Large institutions, such as Brookfield Asset Management Ltd., Blackstone Inc. and an office landlord tied to Pacific Investment Management Co., have chosen to cut their losses on some buildings, defaulting on debt. In some instances, landlords have handed the keys back for certain properties.
Aareal Bank AG is working to sell debt on two Manhattan buildings where owners walked away. A unit of the bank is offering non-performing loans on two large offices, one in the Financial District and one in Midtown’s prestigious Plaza District, according to people familiar with the matter. A spokesperson for Aareal Bank declined to comment.
Even if banks are struggling to offload loans, some lenders are controlling their exposure to commercial real estate by halting origination of new debt. Banks including Fifth Third Bancorp have said that they’ve stopped originating office loans.
More deals for old loans would give better clarity on pricing, which could reveal just how different valuations are these days, according to Martin Nussbaum, principal of Slate Property Group.
“There’s a complete fear around office values and where they stand,” Nussbaum said. Repricing “could be a seismic shift in the asset class.”
This is a guest-post from Tim Ellis, author of Seattle Bubble, a blog and forum dedicated to discussing real estate market conditions in the Seattle area.
“If you rent, you’re throwing away your money.” “Owning your own home is a forced savings plan.” “Home ownership is an excellent path to build wealth.”
You’ve probably heard statements like these plenty of times. On television, radio, the internet, and in casual conversation. Such sentiments are common in any discussion that involves home-buying and personal finances. It’s common knowledge that buying a home is a better financial move than renting. After all, you’re building equity instead of throwing away your money, right? Well, maybe not quite… Rather than assuming the “common knowledge” on this subject is accurate, let’s take a look for ourselves at some of the financial differences between renting and home-buying.
A Real-World Example
For the purpose of comparing renting to owning in this article, I’ll be using real-world data gathered from my area (northeast of Seattle). Although most first-time buyers tend to move from renting an apartment to buying a larger, stand-alone house, as much as I can I will compare apples to apples.
For rent, I located a 3-bed, 2.5-bath, 1,840 sqft house with an attached 2-car garage, on 0.2 acres. Monthly price: $1,495.
For purchase I found a 3-bed, 2.5-bath, 1,850 sqft house with an attached 2-car garage, on 0.22 acres. Price: $424,950.
The two homes are located within two miles of each other in similar neighborhoods, and neither is located on a busy road. We’ll assume that our hypothetical homebuyer is a married couple with $85,000 in the bank to make a 20% down payment. To calculate mortgage payments we will use a recent 30-year fixed interest rate of 6.25%.
Let’s look at how the monthly costs break down (approximately) for our hypothetical potential first-time homebuyer:
Renting
Buying
Rent/Mortgage:
$1,495
$2,093
Insurance:
$20
$163
Property Tax:
–
$407
Tax Savings*:
–
($327)
Maintenance:
–
$354
Total:
$1,515
$2,690
*: (less standard deduction)
Right off the bat, you see that simply trading straight across from renting to owning results in a 78% more expensive monthly bill. That’s not exactly chump change. With even a slight upgrade from renting to buying (which most first-time buyers are prone to do), you can easily see how the total monthly costs would be more than double.
“If You Rent, You’re Throwing Away Your Money.”
Common knowledge says that despite today’s large premium, buying a home is a “good investment”. Hey, at least you’re not “throwing away” your money, right? True, the renter in our scenario spends $1,515 every month that they will never see again. I wouldn’t exactly say it has been “thrown away” any more than money spent on any other good or service is “thrown away,” but granted, there is zero financial return on that money.
However, when you take a look at the breakdown of the homebuyer’s monthly expenses, a large amount is money that will never return, either. Insurance, property tax (less tax savings), and maintenance, add up to $517 every month that is being “thrown away.” Even worse is the amount spent on mortgage interest. Consider how much of a mortgage payment is applied toward loan interest throughout the life of a 30-year fixed loan:
Years
% toward interest
0-5
~80%
6-10
~70%
11-15
~60%
16-20
~50%
21-25
~35%
26-30
~10%
In the first five years, approximately 80% of the mortgage payment goes toward interest. That’s an additional $1,674, for a total of $2,191 being “thrown away” every single month by the homebuyer for the first five years. Ouch! In fact, not until the homebuyer has been paying down the mortgage for over 20 years will the amount they are “throwing away” be less than the renter.
“Owning Your Own Home is a Forced Savings Plan.”
As you can see above, if home buying is like a savings plan, it’s probably the worst savings plan on Earth. Would you voluntarily sign up for a savings plan where well over half of the money you deposit in the first 20 years simply vanishes, and from which you can only withdraw money by relocating and paying a 6-9% fee (not on the amount you have “saved” mind you, but on the total sale price of the home)? Of course not. That doesn’t sound anything like a savings plan.
If our potential homebuyer has that $85,000 saved up for a down payment and deposits it along with just half of the monthly savings over buying ($578 per month) into an account at 8% interest, the balance will be nearly $300,000 in just 10 years. That’s a liquid investment, that can be used for whatever you want, no relocation required. Buying a home is not a savings plan. Actually saving money every month is a savings plan.
“Home Ownership is an Excellent Path to Build Wealth.”
If your goal is to build wealth, you will be much better off investing your money in the stock market than buying a home. While both stocks and housing are cyclical markets, long-term historic trends show that housing appreciates at a rate barely above inflation, while stocks tend to return an inflation-adjusted 7-10%. In our hypothetical scenario, a renter who invested in the stock market with the $85,000 down payment plus the monthly difference between the $1,515 rent and the $2,690 home-buying costs would be over $500,000 better off after 30 years than the homebuyer, assuming 4% average appreciation.
An important thing to consider is that home prices in the United States are just now beginning to correct from an enormous unprecedented run-up in recent years. Despite what those in the business of selling real estate may insist, the correction in housing is still in the early stages. Four percent is most likely overly optimistic for most areas in the next 5-10 years. The only thing we know for sure is that double-digit gains are gone and won’t be coming back any time soon.
Also keep in mind — I mentioned it above but it bears repeating — in order to cash in on any “wealth” you build through your home you will need to sell that home and move. No, “extracting equity” does not count, since that simply results in a larger debt. Debt is not equal to Wealth.
Conclusion
For most people buying a home will result in their largest monthly bill (by far), and because they believe that it will bring them wealth or that they are “throwing away their money” if they rent, they often take on a much larger home debt than a prudent budget would allow. It is a real shame when people are driven to get into the housing market because of misplaced notions of imagined financial benefits. Of course, everyone’s circumstances are different, and for some (particularly those that live away from the coasts) the numbers may actually work out in favor of buying.
Don’t misunderstand me here. I am not saying that no one should buy a home, or that my example scenario is a golden standard of truth for all. Don’t take my word for it. Run the numbers for yourself, check out other articles (a small collection is listed below), and do what works for you. I highly recommend the great graphical calculator from The New York Times for comparing the financial aspects of renting and buying. Many people will consider all of the consequences — financial, emotional, etc. — and conclude that buying a home is the best decision. Just don’t trick yourself into thinking it’s a good financial decision if it’s not.
I myself intend to buy a house some day. However when that day comes, I will be buying a house because I want a nice, “permanent” place to live where I’m the boss, not because I think it will help me get me rich.
Additional Resources
Wall Street Journal: Your Home Isn’t the Nest Egg That You May Think It Is New York Times: A Word of Advice During a Housing Slump: Rent New York Times: Is it better to buy or rent? (graphical calculator) The Motley Fool: The Worst Investment Ever SmartMoney.com: Renting Makes More Financial Sense Than Homeownership CNN Money: Stocks vs. Real Estate Priced Out Forever: Renting vs. Purchasing
At the beginning of 2020, no one expected the United States would be in the position it is in today, including me. With social distancing the new normal, many people are still hoping to buy a home; now they’re stuck wondering if they should purchase a home right now or wait out the pandemic.
As with most financial questions, the answer depends on many factors. You have control over some of these things. Other aspects are out of your hands. People that consciously examine their current position and the risks can make a somewhat educated decision.
My wife and I started the process of buying our current home and selling our old home in December 2019 before the pandemic was on anyone’s radar. By the time we ended up closing on both homes at the end of February 2020, COVID-19 had just started spooking the United States markets.
I’ve included our experiences and personal thoughts to help you get a feel for what real buyers and sellers are going through.
What’s Ahead:
What are the pros of buying a home during the pandemic?
There is lower competition for homes due to fewer people actively shopping and buying homes right now.
Mortgage interest rates may be near all-time lows resulting in lower monthly mortgage payments.
You have the potential to get a better deal on a home’s price than a few months ago if a seller needs to sell or wants to put a house behind them.
What are the cons of buying a home during the pandemic?
You risk contracting COVID-19 every time you leave your current home.
Housing inventory may be lower as some sellers wait until this passes to list their homes or they don’t want people coming through their house.
You may not be able to move through the home buying and mortgage process smoothly.
Housing prices may decrease in the near future.
Mortgage lenders may have stricter lending guidelines that disqualify you when you may have qualified for a mortgage prior to the pandemic.
You may have a harder time finding top-notch home inspectors, appraisers, and other professionals during the pandemic.
Moving may be more difficult as friends and family probably won’t volunteer to help due to social distancing guidelines.
Mortgage lenders to consider if you do decide to buy a home during the COVID-19 pandemic
For well-prepared individuals with a strong financial position, now may be the perfect time to buy the home of your dreams. You’ll have to hope the right home comes on the market and you can get a good deal on it. If everything comes together, it is still possible to buy a home during the pandemic in most cases.
When you’re ready to start mortgage shopping, make sure you check out Credible to help figure out if you’re getting a good deal.
Credible helps you shop multiple mortgage rates at once. It only takes three minutes to enter some basic information and get pre-approved for a loan. You’ll then see personalized rate quotes from a variety of lenders.
Credible doesn’t do a hard pull of your credit score to qualify you. That means you won’t have to worry about your score dropping while you’re preparing to buy a house. Credible also doesn’t provide your information to lenders, so the pre-qualification process is between you and Credible.
Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states. www.nmlsconsumeraccess.org.”
Credible Credit Disclosure – Requesting prequalified rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Why some people are concerned about buying a home during the pandemic
People have good reason to be concerned about buying a home during the COVID-19 pandemic. This disease has drastically changed how the United States works.
The buying process increases the risk of COVID-19 transmission
If you fear for your health, buying a home may not be a good idea right now. The process of buying a home typically involves many in-person interactions.
While you may be able to mitigate some of these interactions with social distancing, being careful, and washing your hands, it may not be enough. The more you leave your home and interact with others, the higher your chance of catching the virus is.
In particular, you usually meet with a real estate agent in person. You tour many homes you’re interested in, most of which have people that live in them.
You may want to attend any home or pest inspections in person to understand exactly what you’re buying and to see any potential problems firsthand. Once everything with the sale is wrapped up and ready to sign, you have to go to a closing and sign paperwork with a closing agent.
There are other steps in between that could also expose you to the virus, but these are the most essential. You could take virtual home tours and some states may allow for virtual closings. Even so, very few people would buy a home without setting foot in it first. I don’t blame them.
The mortgage lending process is facing challenging times
Getting a mortgage is usually a predictable process. You apply for a mortgage and give the lender the requested paperwork. This paperwork helps the lender feel confident you can afford the mortgage. Things aren’t as simple today as they once were, though.
Mortgage rates are all over the place
Lenders tend to offer fairly competitive rates in a stable environment. Some lenders may offer better rates than others, but the difference between lenders is normally relatively small.
Our original mortgage process was straightforward without any problems. After we closed on our home, mortgage rates dropped fast. We decided to refinance our mortgage right after closing on our home.
For the refinance, finding a lender with a great rate was a bit harder than we thought it would be. We had to do a lot of shopping around to find the best rates as some lenders had rates that were much higher than others were offering.
Rate quotes were as much as 2% different between lenders over the course of a couple of weeks. This is insane in a stable mortgage market.
Some mortgage processes have become more strict
Underwriters review the information you’ve submitted to see if you qualify for the loan. They look to see if they need any additional information and eventually approve your loan for closing. Usually, this is straightforward and borrowers know what to expect. Today, requirements may be changing.
Mortgage companies have started altering their requirements to take out a mortgage. Chase stated back in April that buyers of certain home loan programs will have to have a credit score of 700 and a 20% down payment to get certain types of mortgages. And many lenders have followed their lead.
We could tell the process was getting stricter when we refinanced in March, as well. To our surprise, one lender would have required us to sign an affidavit saying we hadn’t lost our jobs and our income situation hadn’t changed at closing.
I didn’t have to sign this paperwork when we originally closed on our purchase loan. Lenders seemed like they were taking a more in-depth look at the mortgages they had in process, and this was in mid-March. As this crisis continues to drag on, lenders may get even more stringent.
Slower processes could challenge your closing timeline
Unfortunately, coronavirus has made the mortgage process more difficult. Due to the virus, interest rates on mortgages have generally dropped. This is great news for your monthly payment, but it also means mortgage lenders are much busier than usual processing refinance requests.
This can slow down the mortgage approval process because lenders don’t necessarily have enough staff to handle the higher refinance demand. To make matters worse, COVID-19 has forced many employees to work from home. At home, the employees may be less efficient and not have the tools they need to complete their jobs as quickly.
The lender usually orders an appraisal to make sure the home isn’t worth less than you’re paying for it, too. This requires an appraiser to visit the home and complete an appraisal report. The virus has posed challenges for these appraisers.
Many home sellers may not want to let a stranger enter their home to assess its value. There is no telling if the appraiser has the virus or not. Even if you can get an appraiser, they may have to take extra precautions which could slow down the process.
If a mortgage lender can’t complete the entire mortgage process in time, it could delay your closing on your home. This could result in penalties or your contract falling through altogether.
So, should you buy a home during the pandemic?
Buying a home during the pandemic could work out in your favor. If you have your finances in great shape, you could take advantage of the down market during these tough times.
Get a good deal on houses that must sell
Some people absolutely must sell their homes right now. They may have already bought another home elsewhere and can’t afford to make two mortgage payments for long. Others may have had to relocate for work and don’t want to wait to see if COVID-19 drags their old house’s value down.
In these cases, you can test the willingness of the sellers to wait out the COVID-19 pandemic. Some sellers may not be willing to budge on price. Other sellers may drastically reduce their selling price to sell and avoid future uncertainty. If you’re not picky about getting a particular house, you could get a great deal.
If our prior house didn’t sell before the pandemic took hold, this very well could have been our family. It could have resulted in us getting a much lower price than we ended up selling our home for, or us holding on to our home for a much longer period to get the price we wanted. Either way, it would have cost us money.
Avoid homes you won’t own for long
Be careful about what type of home you buy during the pandemic. Now is not the time for most people to buy starter homes that they plan to move out of in a few quick years. If housing prices drop, you may be stuck in the home.
Buying long-term or forever homes may work out fine
Buyers purchasing a home they plan to spend a significant amount of time in, such as a decade or more, should hopefully be able to weather any negative short term impacts the housing market faces. Nothing is guaranteed, though.
Why shouldn’t you buy a home during the pandemic?
Buying a home during the pandemic isn’t a good move for everyone. In fact, you may be better off waiting to buy.
Limited housing supply
As a home seller, we’re delighted we sold when we did. If we still had our home on the market after the COVID-19 pandemic took hold and we still lived there, we would not have been comfortable with others coming through our home to view it.
If we hadn’t put our house on the market already, chances are we would have waited until after the pandemic was over to list our home. It would have put our mind at ease that we wouldn’t have to find another place to live while the world is in lockdown should we be lucky enough to sell.
Other potential sellers are facing similar dilemmas. This could result in fewer houses being put on the market, resulting in a tighter home supply during a typically busy spring market.
Housing prices could decline
No one knows how the housing market will end up on the other side of this pandemic. It could result in lower housing prices in the future. This result could be temporary or it could last for years.
Even if you think you’re getting a deal today, prices may decrease even more before the pandemic is over. Without a sizable down payment and equity in your home, you may end up underwater and be unable to sell it or move.
As a home buyer, we’re happy with our purchase. Even so, part of me wonders if we’ve now bought at a peak in prices. We are very aware we might see housing prices decrease in the future.
This doesn’t worry us as much as it may bother others. We plan to live in this house for at least 10 years. It has plenty of space and is in a great neighborhood with good schools. If this was a starter home, we would be very concerned about our ability to resell it for a profit in a few years.
You could lose the income you use to pay your mortgage
Another reason to avoid buying a home right now is uncertainty about your job. Those that need a paycheck every two weeks to make their mortgage payment could end up getting foreclosed on if they get furloughed or laid off.
Unless you have substantial financial reserves that could help make mortgage payments until you find a new job, buying a home right now probably isn’t a good idea. Instead, you may be better off focusing on building reserves.
Buying a home would exhaust your cash reserves
Most people save for years to be able to afford a down payment for a home. When they close on their home, some people use almost all of their available cash to do so. This leaves them with no emergency fund to speak of.
If this is you, don’t buy a home right now. If anything bad happens after you purchase your home, it could put you in financial ruin. Losing a job could result in foreclosure. A large home maintenance item that suddenly needs to be taken care of, such as a damaged sewer line, could put you into debt.
Instead, wait until you have enough money for a down payment while still keeping a cash reserve after you close on your home. Something unexpected always pops up.
When we bought our first home, we quickly found out our air conditioner needed to be replaced. That was an unexpected $3,000 expense on a $79,000 home, but it could have been much more if we needed a new roof.
You may not be able to sell your current home
If you would have to sell your current home to afford your next home, now isn’t a great time to buy. Whether you want to move to a different area or move up to a nicer home, there is no guarantee your current home will sell in time.
If it doesn’t sell and your contract to buy falls apart, you may lose your earnest money and any other fees you paid throughout the process. The other potential issue could be selling your home for much less than you’d otherwise get if you weren’t crunched for time. Either way, you could lose out substantially if things don’t work out as anticipated.
Summary
Buying a home could be a good move for you if your finances are in order, you’re buying a home for the long haul and the right house comes along.
However, those with an uncertain future or just enough funds to barely make a down payment on a house would likely be better off waiting until there is more certainty before buying. You may not get as good of a deal, though.