If you’re like most people, you enjoy watching TV. But what if you also made money doing it?
Yeah, that would make it even better.
You can actually make a living watching TV and entertaining videos. Those positions are difficult to get, but may be worth the effort.
Then there are the other opportunities to make a little cash for tuning in to your favorite shows and videos. Here are some examples of both ways to get paid to watch TV.
10 Ways to Get Paid to Watch TV and Videos
Whether you’re looking for a whole new career or just want to make a few bucks on the side, we found ways to get paid to watch TV and other videos.
1. Become a Tagger for Netflix
Yes, Netflix will pay you to watch their shows.
Becoming a Netflix “tagger” isn’t an easy-to-get job, but they are out there.
Netflix pays “taggers” to watch movies and TV shows and properly categorize them. Simply put, you’ll watch a series, then determine what category it falls into – such as comedy, drama, action, plus many other potential categories on Netflix.
The hours are long, but the work is remote – so you can even do it from the comfort of your own bed!
It might sound like a dream job, and it kind of is since the competition for them is fierce, according to Netflix Junkie. And the only place to find them is through Netflix’s job site, so you’ll need to visit often.
2. Watch Videos on Swagbucks
If your screen time is mostly gobbled up by following the news, you could add up to $225 a month to your pocket by signing up for a free account with Swagbucks.
They’ll present you with short news clips to choose from every day, then ask you a few questions about them.
You just have to answer honestly, and Swagbucks will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than $429 million.
Nielsen is famous for tracking viewing and listening habits to provide ratings for television and radio programs. Along with surveys, the company uses small digital boxes that transmit to Nielsen what your family is watching every night.
If you are one of the random households chosen for the Nielsen sample, you not only get paid, but you get to help determine what is put on TV.
If the web is more your thing, Nielsen will pay you up to $50 a year to surf the web while it collects information from your computer, tablet or smartphone.
And,you’ll automatically be entered into its $10,000 monthly sweepstakes — where over 500 people win part of the $10,000 pot… Every. Single. Month.
All you need to do is sign up and download Nielsen’s secure app or software onto any of your qualified devices.
Nielsen actually takes a limited number of participants per device type, so sign up now to get started before all the spots fill up.
4. Watch TV with Elderly People
Sometimes, it’s not about what you watch, but who you watch it with. And there are people out there that could simply use someone by their side watching a favorite show.
A search for “watching TV jobs” on ZipRecruiter produced several caregiving related job opportunities that simply involved watching television with elderly people.
Often, watching TV is just one responsibility for these caregiving jobs. Check the job listing for additional qualifications and duties.
5. Watch Videos on Earnably
You’re not going to get rich using Earnably, but you can make some extra spending cash. All it requires is to sign up, then you can earn money watching videos, completing simple tasks, taking surveys, and referring friends.
Earnably partners with video companies like Hideout.TV, which provide original videos like cooking demos, esports highlights and music videos. You’ll make a small amount of cash for watching each one.
Then, as you build up points on Earnably, you can redeem them for instant cash or gift cards at popular retailers like Amazon, Dominos, Best Buy, AirBnB, Whole Foods, and many more.
6. Review Videos on Slicethepie
Instead of just watching random videos, Slicethepie lets you contribute to people’s careers by offering feedback through reviews of new songs, fashion items, accessories and commercials before they are released. The reviews are delivered directly to the artist/designer/producer.
Your earnings are based on your star rating and the quality of your review. More detailed, constructive, well-written reviews will make more money.
7. Write Captions or Subtitles for TV Shows
Closed captioning involves watching a video and transcribing the audio into a text version that someone can read on screen. It may involve translating dialogue into a different language or transcribing live for events like sports.
This job isn’t passive income, so you’ll need to be engaged in whatever show, movie or video you are watching. You’ll also need to format the transcription and verify its timing against the original video.
This is a particularly good job option if you are bilingual. Plenty of transcription jobs are available through companies like Rev and Scribie.
Jobs typically pay either per video minute or per hour — often between $15 and $25 per hour.
8. Join Focus Groups
You can make a couple of hundred dollars an hour watching TV shows as part of a focus group. The trick is to know where to look for paid focus groups and check in often, as spots can fill up fast.
Sites like focusgroup.org and Focus Groups USA have TV watching opportunities but also routinely offer focus groups in other areas. You’ll need to create an account and list your interests, then they will contact you when the right opportunities come up.
9. Visit CableTV.com
Our friends at CableTV.com (they’re owned by Clearlink, who also owns The Penny Hoarder) often come up with interesting ways to pay people to watch TV shows or movies.
In 2022, they paid two people $250 per week to watch one show from a list of options. And just last Christmas, they paid one lucky winner $2,500 to watch 25 holiday movies in 25 days. If you’re serious about making cash to watch TV, visit this site frequently for additional opportunities.
10. Become a Pet Sitter
While your primary responsibility, of course, will be to take care of your client’s pet, you will most certainly have downtime – especially if the pet is a sleepy cat. You can use that time to catch up on the latest binge-worthy Netflix or HBO shows, all while making sure the fluffy friend is safe and sound.
Pet sitters can make anywhere between $20 to $30 an hour, and you could turn this side gig into a full-fledged business.
Robert Bruce is a senior staff writer at The Penny Hoarder covering earning, saving and managing money. He has written about personal finance for more than a decade.
A personal loan is a type of installment loan in which money is borrowed in a lump sum and repaid over time in fixed monthly payments.
Borrowers commonly use personal loans to consolidate debt, because a single loan can replace multiple monthly payments and potentially give you a lower interest rate than you pay on high-interest debts like credit cards.
Other than a couple of restrictions, including buying a home or paying for education costs, you can get pretty creative with how you use a personal loan. It could give you a leg up to start a business if you can’t get approved for a dedicated business loan. Plus, a personal loan can give you a lifeline if your financial situation changes unexpectedly or help you shoulder big expenses without the high interest of credit cards.
Personal loans offered by online lenders and traditional financial institutions share a lot of standard features. They tend to come in amounts between $5,000 to $40,000, with interest rates between 5% and 36%, and repayment periods between two and seven years (though there are outliers for all of these parameters). Most lenders offer a discounted interest rate if you sign up for automatic payments, typically 0.25 or 0.5 percentage points.
Typically, you need good to excellent credit — a score of at least 670 — but you can find lenders, especially through online platforms, that cater to borrowers with lower scores. A few lenders offer perks, like repayment benefits or a free FICO score, that could make one more attractive for you than another.
But the biggest selling point will likely be the cost of your loan — check your prequalified rates with lenders (it doesn’t affect your credit score) to find the loan with the best interest rate, monthly payment and repayment period for your situation.
LightStream offers fixed-rate personal loans up to $100,000, with funding as soon as the same day you’re approved. Its Rate Beat Program guarantees it’ll offer you the lowest rate you can find — just submit a request with information about a lower rate offered by a competitor, and it’ll offer you that rate minus 0.10 percentage points.
LightStream
APR
5.99% – 23.99%
Loan amounts
$5,000 – $100,000
Minimum credit score
600
Credible
Best Loan Marketplace
Key Features
Compare rates from top lenders
Loans for poor credit available
Loan amounts as low as $600
Use Credible’s search engine to find personal loans for as little as $600. Unlike other marketplaces, Credible only gets paid when you accept a loan offer, so it doesn’t sell your information to lenders to pester you. You’ll see prequalified offers and compare lenders side by side, then click through from your Credible dashboard to a lender’s site to apply.
Credible
APR
5.40% – 35.99%
Loan amounts
$600 – $100,000
Minimum credit score
640
Upstart
Best for Borrowers Without a Traditional Credit History
Key Features
AI-powered lending for partner banks
Considers more than your credit history
Potential for one-day funding
Upstart isn’t technically a lender, but it’s not a marketplace, either. You’ll see prequalified rates from partner lenders and apply right through its platform. Upstart’s proprietary AI uses more than the traditional credit score to assess a borrower’s creditworthiness, so you might have a higher chance of approval on the platform if you have no credit score but other positive factors, like education and income.
Upstart
APR
6.50% – 35.99%
Loan amounts
$1,000 – $50,000
Minimum credit score
300
SoFi
Best for Same-Day Funding
Key Features
No fees
Unemployment protection
Potential for same-day funding
SoFi is a tech platform-turned bank that offers a range of financial services from the convenience of an app. Its personal loans come with no origination fees, prepayment penalties or other hidden fees. Funding is usually available the same day as approval, and SoFi includes unemployment protection: If you lose your job, SoFi works with you to modify your payments temporarily.
SoFi
APR
7.99% – 23.43%
Loan amounts
$5,000 – $100,000
Minimum credit score
650
PenFed
Best Credit Union for Personal Loans
Key Features
No hidden fees
Loan amounts as low as $600
Flexible terms
PenFed Credit Union is the best credit union for personal loans. Terms are flexible (12 to 60 months), and you can get a loan for as low as $600. Don’t sweat the fees (because there aren’t any); you won’t pay an origination fee, and there’s no early payoff penalty. The only downside? You have to be a member of the credit union to apply.
PenFed
APR
7.74% – 17.99%
Loan amounts
$600 – $50,000
Minimum credit score
650
Upgrade
Best for Raising your Credit Score
Key Features
Checking, credit and loans in one platform
No prepayment penalties
Next day funding
Upgrade is a financial tech company that offers rewards checking, an innovative-payment credit card, credit monitoring and personal loans. The platform is an all-in-one debt payoff and management solution — its personal loans and credit cards are designed with quick repayment in mind, you get free credit monitoring, and you may be able to qualify for a loan with a fair or poor credit score.
Upgrade
APR
7.96% – 35.97%
Loan amounts
$1,000 – $50,000
Minimum credit score
560
Rocket Loans
Best for Transparent Process
Key Features
Same day funding
No prepayment penalties
All-online application
Apply online for a personal loan from Rocket Loans to see prequalified offers in less than a minute. You can complete your application entirely online, including income and identity verification, so no phone calls or snail mail from lenders. Funding could come within a couple of business days — if not the same day. A major pitfall? The 7% origination fee
Rocket Loans
APR
8.416% – 29.99%
Loan amounts
$2,000 – $45,000
Minimum credit score
640
Happy Money
Best for Debt Consolidation
Key Features
Specially designed for credit card payoff
Borrow from community-based lenders
Origination fee between 0% and 5%
Happy Money is a financial tech company that works with community based lenders — credit unions and mission-driven institutions — to provide The Payoff Loan, a personal loan designed for credit card debt consolidation. See loan offers and choose among the lowest monthly payment, lowest interest rate or quickest payoff date to align with your financial goals.
Happy Money
APR
8.99% – 29.99%
Loan amounts
$5,000 – $40,000
Minimum credit requirement
600
Discover
Best for Flexible Repayment Options
Key Features
No fees (except late fees)
Repayment assistance options
Free FICO credit score
Discover personal loans are straightforward, fee-free loans up to $35,000 with a minimum credit score of 660. Discover offers flexible terms and a 30-day guarantee in case you change your mind. The lack of fees, including origination and prepayment, is a huge selling point for Discover — as is the low potential APR.
Discover
APR
6.99% – 24.99%
Loan amounts
$2,500 – $35,000
Minimum credit score
660
Marcus
Best for On-Time Payment Rewards
Key Features
No fees
Skip-a-payment reward for on-time repayment
Customize your monthly payment
Marcus is the personal banking arm of Goldman Sachs, offering individual savings, investing, credit cards and loans. Its personal loans are available to borrowers with good credit for up to $40,000, with no fees — not even late fees. And it rewards you for on-time payment: Make your monthly payment on time for 12 months in a row, and you can defer payment for a month with no additional interest accrued.
Marcus
APR
8.99% – 24.74%
Loan amounts
$3,500 – $40,000
Minimum credit score
660
LendingClub
Best for Joint Loans
Key Features
Borrow up to $40,000
Funding within 48 hours
No prepayment penalty
LendingClub is an online marketplace bank offering checking accounts and personal loans for consumers. Take out personal loans up to $40,000 for terms of three to five years — you can even do joint loans. (You might know the platform for peer-to-peer lending, which is how it started, but as of 2020, LendingClub only offers traditional personal loans.)
LendingClub
APR
8.05% – 36.00%
Loan amounts
$1,000 – $40,000
Minimum credit score
600
Prosper
Best for Peer-to-Peer Borrowing
Key Features
Peer-to-peer lending
Next-day funding
No prepayment penalty
Prosper is an online peer-to-peer lending company that lets individuals and institutions invest in personal loans to support borrowers and earn returns through debt securities. Prosper handles the loan application, origination and management, so you don’t work directly with funders, but you can rest assured that the interest you pay goes back to real people, not just banks.
Prosper
APR
6.99% – 35.99%
Loan amounts
$2,000 – $50,000
Minimum credit score
600
Avant
Best for Fair Credit Loans
Key Features
Next-day funding
Low minimum credit score
Easy-to-use app
Avant offers personal loans up to $35,000 as soon as the next business day after you’re approved. Most Avant borrowers have FICO credit scores between 600 and 700, but Avant sometimes awards loans to borrowers whose score is as low as 580. If you have fair credit, Avant is worth a shot.
Avant
APR
9.95% – 35.95%
Loan amounts
$2,000 – $35,000
Minimum credit score
580
LendingPoint
Best for Fair Credit Borrowers
Key Features
Next-day funding
No co-sign loans
AI technology that considers more than just cred
LendingPoint uses proprietary algorithms to assess creditworthiness using factors that go beyond the traditional FICO score. It offers unsecured personal loans as well as e-commerce and point-of-sale financing. With a minimum credit score of 600, this could be a good option for borrowers with fair credit scores, though it doesn’t offer co-signed loans, which can be useful for low-credit borrowers.
LendingPoint
APR
7.99% – 35.99%
Loan amounts
$2,000 – $36,500
Minimum credit score
600
Types of Personal Loans
“Personal loan” is a broad category of lending that you can apply to almost any financial need. Lenders often advertise things like home improvement loans, wedding loans, timeshare loans or adoption loans — but these are all technically just personal loans, structured the same way.
A few key differences to look out for are:
Debt consolidation loans: Many people use personal loans for credit card debt consolidation or refinancing — replacing one or many debts with another. It can simplify repayment and reduce your interest rate. When you take out a personal loan for this purpose, the lender usually sends the money directly to your other creditors, instead of to you.
Secured loan: A secured loan of any kind is one backed by collateral — that’s an asset you put on the line to turn over to the lender in case you can’t repay the loan. For mortgages, the collateral is your home; for auto loans, it’s the vehicle. Secured personal loans are also available, and you could put up anything of value as collateral, like a boat, jewelry, fine art or investment funds.
Unsecured loan: Unsecured loans are those without any collateral backing them. This increases the risk for the lender, so you usually have to have excellent credit and income to qualify.
Personal Loan Costs to Consider
When you evaluate personal loan offers, you’ll probably focus on the interest rate, because that has a significant impact on the long-term cost of the loan. But there are other costs to consider.
Before accepting any loan offer or signing the agreement, make sure you know how much you’ll pay (if anything) in these common costs:
APR: Annual percentage rate is what’s often referred to as your interest rate and usually the most prominently advertised feature of your loan. Personal loan interest rates tend to fall between 5% and 36%. A higher credit score and shorter repayment period can lower the interest rate, while a lower credit score and longer repayment period can increase it.
Origination fee: Many lenders take a bite out of your loan upfront, so you won’t receive 100% of the loan amount. Origination fees are usually around 2% or 3% of your loan amount, and lenders subtract them from the original loan amount you receive.
Late fee: Your loan agreement will likely come with a fee for late payments, usually a percentage of the payment due or sometimes a flat fee. Those fees are added to your loan balance when you’re late making a monthly payment.
Prepayment penalties: They’re becoming less common, but some lenders still include prepayment fees in loan agreements. If you pay off part or all of the loan early, usually within a determined period after receiving it, the lender could charge you an additional fee. The prepayment fee is usually a percentage of the total loan balance at the time you pay it off.
The other thing that’ll help you determine whether a loan offer is right for you are the repayment terms. Along with any additional costs, look for the basics, including how long you have to repay and how much your monthly payments will be.
Who Can Take out a Personal Loan?
Any individual can apply for a personal loan for just about any purpose.
Many lenders advertise loans for specific purposes, like vacation, weddings or home improvements — but those are usually marketing details. You can use personal loan funds almost any way you want, except for some uses that are restricted to dedicated types of loans, including buying a home and paying for education.
Unsecured personal loans tend to be tougher to qualify for than those dedicated loans, because they aren’t attached to any collateral or government backing.
A few companies look into alternative factors to forecast your ability to repay a loan, but most are looking for traditional creditworthiness, including:
Credit score and credit history: Lenders usually want to see a credit score of at least 720 for personal loans, though some “bad credit loans” might be accessible for borrowers with scores as low as 600.
Debt-to-income ratio: Your debt-to-income ratio (DTI) is the difference between how much you make each month and how much you owe in mortgage and other debt payments, like credit card debt and existing loans. Lenders typically want to see a DTI no higher than 43%, but the lower the better.
Income: Lenders typically require you to prove a regular source of income that shows your likely ability to make monthly payments. You can show this through pay stubs if you’re employed, or a recent tax return if you’re self-employed. If you don’t have either of those (or they don’t accurately reflect your expected income), contact a lender before submitting your application to make sure you can work out an alternative way to prove your income.
Where to Get a Personal Loan
You can find personal loans through several types of platforms, including:
Banks and credit unions, where you could keep all of your banking, credit cards, investing and insurance under one financial institution.
Online lenders, meaning companies that only offer loans, but not other banking or financial services.
Marketplaces, like Fiona, AmOne or OppLoans, which aggregate offers from multiple lenders and let you see pre-approved rates with a soft credit check. Some marketplaces also let you handle the entire loan application and origination process through their platform, while others simply connect you with lenders to complete the process on their site or over the phone.
1.Consider your financial options. Is a personal loan the best way to meet your needs? You might have alternatives, like delaying a purchase and saving the money.
2. Review your finances. Figure out a monthly payment you can comfortably fit into your life for the next few years, and use that as a guide when reviewing loan offers.
3. Check your credit score. Personal loan lenders generally look for borrowers with good or excellent credit scores — about 700 or higher. Even those that accept borrowers with lower scores use your credit history to determine your repayment terms and interest rate. Know where you stand before applying by checking your credit score.
4. Compare lenders. You’re off to a good start! Checking reviews like this and comparing loan offers through marketplaces can help you see lenders side by side easily. Check lender requirements and options for loan terms before applying and dinging your credit history.
5. Get pre-qualified. Either through a marketplace or directly on a lender’s site, you can give a little information to go through a soft credit check (that won’t affect your credit score) and get pre-qualified for a loan. You’ll see an interest rate and repayment terms a lender could offer you based on the credit check, so you can decide whether it’s worth putting in a full application.
6. Review the loan details. Look over offers carefully to make sure the terms, including the monthly payment, repayment period and any fees, fit with your financial plan.
7. Complete an application. Choose a loan you want, and fill out an application with the lender. You’ll go through a hard credit check (which shows up on your credit report as a request for credit and could lower your score temporarily), and likely be officially approved for the loan.
8. Receive the funds. Personal loan funds typically go straight into your bank account (unless you’re using them for debt consolidation), and many online lenders fund loans within the same day or the next day after you’re approved.
9. Set up a payment plan. Most lenders offer better interest rates if you set up automatic payments, which you can do through the lender’s website if you’re comfortable with it. If you’re paying back other debts at the same time, use a repayment method like the debt snowball or avalanche to determine where to direct your money whenever you’ve got extra to put toward your financial goals.
Frequently Asked Questions (FAQs) About Personal Loans
There are a lot of questions about how to acquire personal loans and which ones are the best. We’ve rounded up the answers to the most commonly asked questions.
Which Bank is Best for Personal Loans?
The offer you get for a personal loan from any institution depends on your credit history, income and existing debt. Shop online or use a lending marketplace to compare options before applying and dinging your credit report. If you have a low credit score (below 700), look for online lending platforms that use innovative algorithms to assess creditworthiness with factors beyond your credit report, like education and bill payments. If you have a stellar credit and debt payment history, look for lenders that offer rewards like on-time payment bonuses and auto-pay discounts on interest.
Which Bank Has the Easiest Personal Loan Approval?
While they’re steadily improving, most traditional banks have lengthier personal loan approval processes than online lenders. With a traditional bank, you might have to connect with a loan officer on the phone, mail in or drop off paper application materials and wait several days for approval. Online lending companies use technology to assess your application quickly and make loan offers almost instantly. Funding typically comes within one business day, and some even offer same-day funding.
What is the Easiest Loan to be Approved For?
Unsecured personal loans can be harder to qualify for than other types of loans, because they aren’t backed by collateral, like mortgages and auto loans; or supported by future potential earnings, like student loans. Secured personal loans can be easier to qualify for, even with a low credit score, because you put up collateral, like jewelry, a boat or investment funds, to mitigate the lender’s risk in case you don’t repay. Auto loans tend to be the easiest types of loans to qualify for, even with low income or credit scores, because they’re relatively small and are backed by collateral (a vehicle).
How Much Will a Bank Lend for a Personal Loan?
Most personal loan lenders offer loans up to around $40,000, but some offer personal loans as high as $100,000. Banks typically make minimum personal loans of around $5,000, while online lenders often lend as little as $1,000 or less. Repayment terms range between two and seven years, so you can work with a lender to land on a repayment plan that gives you a monthly payment you can accommodate.
What Is the Minimum Income for a Personal Loan?
How much income you need to qualify for a loan depends on the amount you want to take out, how much debt you already have and how long you’ll have to repay the loan. Lenders might set their own minimum income to qualify for a personal loan, or they might just want to see that you have regular income every month. Generally what’s more important than a minimum income amount is your debt-to-income ratio, the amount of debt payments you owe each month compared with your monthly income. Lenders want to see this to assess whether you can accommodate another loan payment.
What is the Monthly Payment on a $10,000 Loan?
Your monthly payment for a personal loan depends on your repayment period (how many months or years you have to repay the loan) and your interest rate. You should be able to see your estimated monthly payment in a loan offer before you apply, so you can figure out whether it’s a fit for you. A couple of examples: A $10,000 loan with a fixed 7% APY and three-year repayment term would come with a $309 monthly payment. A $10,000 loan with 17% interest and a seven-year term would come with a $204 monthly payment.
Contributor Timothy Moore has written about personal finance with specialities in banking and insurance since 2012. His work has appeared in publications such as Debt.com, Ladders, WDW Magazine, Glassdoor and The News Wheel. The Penny Hoarder staff contributed to this report.
Ready to join the ranks of the gig economy and start your own freelance business? Being your own boss has a lot of advantages, but there are some pitfalls. From concerns about cash management to worries about being personally liable, a freelancing business is a bit more complicated than grabbing a listing off a job board.
Whether you’re looking to start a freelancing career or you want to create your own business as a side hustle, here’s a step-by-step guide to freelancing for beginners.
What Is a Freelance Business?
One way freelance businesses are a bit different from a traditional business entity is that you’re usually selling services and not physical products. Most start their freelance journey as independent contractors hired for a specific project or paid an hourly rate.
According to the Gig Economy Data Hub, nearly a quarter of all global workers and as much as 11% of the American workforce do some freelancing either as their full-time job or as a side hustle.
Many freelancers may have one or two long-term clients that provide the equivalent of a full-time job, while other freelancers pick up a patchwork of short-term gigs. Some common freelance jobs include being a web designer or freelance writer or illustrator. Unlike other professionals or full-time workers, a full-time freelancer scouts out their own potential clients and usually works remotely.
Looking to start working as a freelance writer? Here are 19 sites that pay contributors.
What Are the Advantages of Starting a Freelance Business?
Before you run out to start a freelance business, it’s worth considering some of the pros and cons.
Pros
Set your own hours
Work from home or remotely
Determine your own rates
Choose your own clients
Cons
Paying taxes quarterly
Higher tax rate
Finding your own clients
No employer benefits such as health insurance, retirement savings plans and paid time off
Some of the advantages and disadvantages of freelance work will also depend on different factors, such as whether you’re freelancing full time or just taking on projects to make extra income on the side.
How to Start a Freelance Business in 9 Easy Steps
Before onboarding your first client, these are the critical steps you should take to ensure your freelance career will be a successful one.
Step 1: Decide what services you’ll offer.
Often, prospective clients are interested in hiring freelancers because the company lacks the skills or doesn’t have the bandwidth to tackle some projects in-house. The World Economic Forum’s Future of Jobs 2020 report indicates 41% of companies are expected to expand their use of independent contractors in the coming years.
Think about what you are qualified to do, but also other niche interests and insights you might bring to the virtual table and what companies are expecting others in your industry to provide.
Step 2: Determine your rate.
What should you charge for freelancing? For many freelance newbies, this is the hardest part. And what you’ll charge depends on your industry, demand, skill level and experience.
There are two basic schools of thought on freelance rates. One method is to take the annual salary you want to earn and work backward from there to determine your monthly, weekly and hourly rate. The other method, referred to as value pricing, is a little more nuanced and relies on doing some market research.
Step 3: Build a website or portfolio.
As a freelancer, you’re not usually selling a product. You’re selling yourself. And the first step to generating a customer base is to establish a virtual presence. Secure a domain under your name or look to create a freelance site with a name that reflects your focus.
Pro Tip
Don’t have the skills to build your own website? No problem. Lots of sites like Wix, Squarespace and others offer templates and website builders for beginners.
Step 4: Decide whether to start an LLC or an S-corp.
As a freelancer or sole proprietor, the most common way to establish your business is as a limited liability company (LLC). This provides basic protection from personal liability or asset seizure if your business incurs debts or runs into legal trouble.
However, there are some advantages to taking the extra steps to make your freelance business an S corporation. Although the process is more complicated, this business structure can save a bundle on taxes in the long run.
Still unsure whether you want to do an LLC or S-corp for your freelance business? Learn more about the pros and cons in our guide.
Step 5: File for an employer identification number.
You may be wondering if it’s really necessary to go to the extra trouble of securing a federal employer identification number (EIN). And the short answer for most freelance businesses is yes. While you won’t use it every day, an EIN will let you do a few essential tasks like opening a business bank account to keep your personal finances separate.
Pro Tip
Find out more about whether you should get an EIN and how to file for one with the IRS on the Small Business Association website.
Step 6: Get your business licensed.
Even if the extent of your business operations is to pop open the computer every morning and roll up the sleeves of your pajamas, you’ll still be required to register your business in most states. This often means paying a small annual fee for a state business license.
Many municipalities and counties also require businesses, even LLCs operating from home-based offices, to hold licenses or permits. Check with your city, county and state officials to determine what the rules are in your area.
Step 7: Consider opening a business bank account.
Before you start making bank as a freelancer, you’ll have to decide how to manage your finances. While some business structures don’t require it, the IRS recommends having a separate business checking account for tax purposes if you’re an independent contractor.
Step 8: Figure out how to track income and expenses.
Tracking your income, invoices and business expenses can seem like a full-time job, especially if you have more clients than the average freelancer. In the beginning, you may do fine with a well-managed spreadsheet, then find it necessary to graduate to more advanced bookkeeping.
There are also several budgeting apps that specifically offer tools for freelancers, such as You Need a Budget (YNAB) or QuickBooks Self-Employed. The best part is you can write off budgeting app subscriptions as well as software like TurboTax or a project management tool as a business expense.
Step 9: Set up quarterly estimated tax payments.
One of the big adjustments to starting your freelance career is making quarterly estimated tax payments. The federal government and some states require self-employed contractors, LLCs and other small businesses to pay estimated taxes quarterly.
“Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed,” the IRS website specifies.
Calendar the following estimated tax payment deadlines to ensure you won’t forget.
April 18
June 15
Sept. 15
Jan. 16, 2024
If you take the appropriate steps to start your freelance business off on the right foot, being your own boss, working from home and setting your own schedule can be incredibly rewarding.
Looking for new clients for your business? Here are nine freelancing websites to try, including platforms like Upwork and Fiverr.
Kaz Weida is a senior writer with The Penny Hoarder and owns her own freelance business.
Consider this a friendly heads-up: Your car insurance bill is about to go up.
Well, that’s not fair, you’re thinking. What can I do about it?
We’ve got a dozen ideas for what you can do about it.
Rising Car Insurance Prices
We just saw two separate reports forecasting that 2023 will bring a noticeable jump in car insurance prices:
Rates are expected to increase by 8.4% across the U.S. this year — the biggest jump in six years — according to a study from financial data website ValuePenguin. It puts the average cost of full coverage car insurance at $1,780 per year.
Meanwhile, the virtual insurance agency Insurify is predicting that rates will rise by 7% in 2023. It puts the average cost of car insurance at $1,777.
Why? A number of reasons, namely inflation and a nationwide increase in fatal auto accidents.
12 Simple Ways to Lower Your Car Insurance Bill
I recently had the “pleasure” of signing up for a new car insurance policy. While I shopped around for a policy that didn’t break my budget — but still offered insurance coverage that thoroughly protected my car, me and other motorists — I researched some tips to help save money.
And no, I’m not going to suggest anything that requires a drastic life change. Sure, buying a new type of car with high safety ratings, moving to Maine, maintaining a clean driving record or never driving again will all help. But that’s not realistic for most of us.
Here you’ll find the simplest, most practical ways to lower your auto insurance premiums:
1. Shop Around for the Best Rates
Comparing rates sounds like a given, but here’s the thing: Too many people stick with the same auto insurance company and same insurance agent because that’s easy. There’s something to be said for brand loyalty, but it’s also important to shop.
Why? Car insurance companies use different algorithms to determine costs. Additionally, many offer first-year deals to new customers.
The easiest way to compare rates is to use an online car insurance search engine. There are a number of these, like EverQuote, where you can see all your options at once.
EverQuote is the largest online insurance marketplace in the U.S., so you’ll get options from more than 175 carriers handed right to you.
Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you recommendations for car insurance. In just a few minutes, you could save up to $610 a year.
2. Continue to Shop for a Lower Rate Every 6 Months
Comparing rates once won’t cut it. They can change month to month — even day to day.
There are a number of fluctuating personal factors that can affect your insurance rates, including your age, location, marital status and credit score. But consider external factors, too, like natural disasters, crime rates and the economy.
Pro Tip
Experts encourage consumers to compare rates at least once a year — ideally every six months. Set a reminder on your calendar.
3. Increase Your Deductible
Car insurance deductibles are typically $500 or $1,000 — you choose. This is simply the amount you’ll have to cover out of pocket before your insurance kicks in and covers the rest.
Now, you’re thinking the lower deductible is best, right? In some cases, yes, because if you need to file an insurance claim, you’d rather fork over $500 than $1,000. But opting for a higher deductible can actually save you money on your insurance premium, which could save you money over time.
You’ll have to consider what happens if you get into an accident and have to file a claim. Can you cover that $1,000 deductible? Do some math, and make sure the money you’re saving on your premium is worth the higher deductible.
And drive safely!
4. Pay Your Policy Online, in Full and Early
The online insurance company The Zebra looked at how much money you can save by adjusting your payment plan. Here’s what it found:
Save 1.5% with auto-pay.
Save 4.7% by paying in full.
Save 3.1% with a seven-day advanced payment.
Save 3.8% with a 10-day advanced payment.
And if you pay online, in full and early, you could lower your rate by 10%. It might not sound like a ton of money, but if your premium is $1,500, this simple move could result in $150 in savings each year.
5. Maintain Good Credit
Did you know your credit score can have a hefty impact on your car insurance premiums? Drivers with poor credit tend to pay more than twice as much as those with exceptional credit, according to The Zebra.
If your credit score is veering toward the “poor” end of the spectrum, there are some simple steps you can take to increase it. We recommend signing up for Credit Sesame, a free credit monitoring service that breaks down exactly what’s on your credit report in layman’s terms, how it affects your score and how to address it.
James Cooper, a motivational speaker, raised his credit score 277 points in six months using Credit Sesame. Cooper’s favorite part about Credit Sesame is its personalization. It suggested concrete steps, based on his situation, to better manage his credit score.
Pro Tip
Some states have outlawed the use of credit in determining car insurance costs. These include California, Hawaii and Massachusetts.
Getty Images
6. Bundle Your Insurance Policies
You’re probably paying for additional insurance policies, right? Like homeowners insurance or renters insurance? Once you find a company you like and trust, consider bundling your policies to save some money.
The Zebra found that bundling policies could save you up to 10%.
7. Take a Defensive Driving Course
OK, so maybe you recently got a speeding ticket. Or you didn’t see that stop sign and received a moving violation. Whatever the case, taking a defensive driving course can be a great way to wipe the points from your driving record and help offset an increase in insurance costs.
And guess what? You don’t have to sit through a weekend of classes. There’s this thing called the internet, and you can take online defensive driving courses through AARP, the National Safety Council or your state’s DMV. The cost of the course will vary by state, but you shouldn’t pay more than about $40.
Even if you’re a safe driver with a good driving record, you can still take the course for an insurance discount — just be sure to check with your insurance agent to make sure the discount applies (and that it’s worth the cost of the course).
8. Brag About Your Community Involvement
When signing up for car insurance, ask your agent if you can tap into discounts for organizational involvement. For example, when I signed up for my new insurance policy, the company asked if I was involved in a sorority or fraternity, or an alumni organization.
You can also get discounts if you’re involved in an educational, business or military organization.
9. Know Your State’s Minimum Requirements
Each state requires different liability coverage amounts, so study up on your state’s minimum requirements.
For example, in Maryland, motorists are required to have insurance that covers at least $30,000 in bodily injury per person, $60,000 in bodily injury per accident and $15,000 in property damage. (This is often referred to as 30/60/15.)
The minimum coverage is the cheapest, but you’ll likely want more.
A good rule of thumb? Secure coverage that equals the total value of your assets (think: car, home, investments, savings), suggests the Wall Street Journal. Why? If your insurance doesn’t adequately cover an accident, your assets could be seized to help cover car repairs and medical costs.
To find out your state’s required minimums, visit your DMV online.
10. Understand Collision and Comprehensive Coverage
In addition to the state minimums, you’ll also need to consider adding collision and comprehensive coverage to your auto insurance policy.
Comprehensive insurance will cover any non-accident related damage. Think: hail, theft, flooding, vandalism, fire, falling objects, animals — anything that doesn’t involve another car. Some states call this “other than collision” coverage.
Then there’s collision coverage, which pays for damage done to your car. If you own an older car that’s not worth a lot, collision coverage might not be worth the increase in your insurance bill.
Both of these add-ons are optional, but they could benefit you, so consider your circumstances carefully.
11. Ask About Additional Discounts
We’ve covered a couple of discounts, but it never hurts to ask your auto insurer about any additional discounts you might qualify for. Some of the most common ones include:
Senior
Good student
Low-income
Multi-car (include more than one car on your policy)
Safe driver
New car
Anti-lock brakes
Airbag (usually for older cars made before 1990)
Anti-theft devices
Paperless (view your bill online)
Honestly, there are too many to list, so it never hurts to inquire. Chances are, your agent will be able to dig up something to help you out.
12. Use Your Negotiation Skills
When in doubt, hop on the phone. Yup, for this final tip we’re getting back to the basics. It’s time to negotiate!
You can negotiate just about any of your monthly bills, including your car insurance. Contact your agent or a company representative and let them know you need to find additional ways to save money… or else.
(Just kidding. Don’t say that last part.)
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. Carson Kohler is a former staff writer at The Penny Hoarder.
A debt consolidation loan is a path to relief for a lot of people struggling to manage credit cards and other high-interest debt.
Debt consolidation replaces your existing debts with a single loan, usually with more favorable terms, like a lower interest rate that’ll save you money, or a lower monthly payment and longer repayment period that gives you more breathing room.
These loans are a common part of savvy debt payoff strategies, because they can often help you save money, pay off debt faster or both. If you feel like you’re drowning in debt, they could extend the time it takes you to pay and take the stress off of keeping up with monthly payments.
Debt consolidation loans are available from lenders as personal loans, sometimes marketed specifically as “debt consolidation loans” and sometimes simply as personal loans.
We’ve reviewed some of the top personal loan lenders online to help you find the best debt consolidation loans available for your financial situation and goals.
Note: Loan terms accurate as of January 6, 2023 and subject to change. See lenders for most up-to-date information.
Universal Credit is designed especially for debt consolidation and pay off. It offers rate discounts of between one and two percentage points — pretty significant! — for borrowers who use a Universal Credit personal loan to directly pay off credit card debt. Loans are available for borrowers with fair or bad credit.
Universal Credit
APR
11.69% – 35.93%
Loan amounts
$1,000 – $50,000
Minimum credit score
560
Happy Money
Best for Community-Based Lenders
Key Features
Designed for credit card payoff
Borrow from community-based lenders
Loans up to $40,000
Happy Money’s Payoff Loan is designed specially for credit card debt consolidation. The financial tech company works with community credit unions and mission-driven community banks to provide personal loans to pay off your debt directly. Choose the plan that works best for you, whether it’s a lower monthly payment, lower interest rate or earlier payoff date.
Happy Money
APR
7.99% – 29.99%
Loan amounts
$5,000 – $40,000
Minimum credit score
640
LightStream
Best for Good to Excellent Credit
Key Features
Same-day funding
No fees
Loans available for low credit scores
LightStream’s personal loans for borrowers with good or excellent credit can help you get hold of up to $100,000 as soon as the same day you’re approved. It also eschews fees and offers to beat the rate of any competitor — just submit information about a lower rate you’re offered elsewhere, and LightStream will offer you a rate 0.10 percentage points lower through its Rate Beat program.
LightStream
APR
7.99% – 23.99%
Loan amounts
$5,000 – $100,000
Minimum credit score
660
Credible
Best for Low Loan Amounts
Key Features
Compare rates from top lenders
Loans for poor credit available
Loan amounts as low as $600
Credible is a lending marketplace that can help you find debt consolidation loans as low as $600. You don’t have to worry about Credible selling your information like other comparison sites — it only gets paid when you accept a loan offer, so it won’t help lenders pester you. You can use the site to compare loan offers side by side and click through to the lender’s site to officially apply.
Credible
APR
5.40% – 35.99%
Loan amounts
$600 – $100,000
Minimum credit store
560
Upstart
Best for Non-Traditional Credit History
Key Features
AI-powered lending for partner banks
Considers more than your credit history
Loan amounts as low as $1,000
Upstart is technically a technology company, not a lender or a marketplace. Its platform uses proprietary AI to connect you with partner lenders, and you manage the loan entirely through the platform. Upstart uses more than a traditional credit score to assess your creditworthiness, so factors like your education and income could help you get a loan even if you have a low or no credit score.
Upstart
APR
6.5% – 35.99%
Loan amounts
$1,000 – $50,000
Minimum credit score
580
SoFi
Best for SoFi Customers
Key Features
No fees
Access to events and perks
Discounts for SoFi clients
SoFi is an online bank that offers financial services ranging from banking to student loans to investing. It offers debt consolidation loans with no fees, and you can apply and manage your account right from its convenient app. You can qualify for a discounted interest rate if you’re an existing SoFi member with a free SoFi bank account or other product in the app.
SoFi
APR
7.99% – 23.43%
Loan amounts
$5,000 – $100,000
Minimum credit score
600
Figure
Best for Crypto-Backed Loans
Key Features
Next-day funding
Powered by Provenance blockchain
0% to 5% origination fee
Figure is an innovative online lender that offers personal loans, with blockchain technology adding efficiency and transparency to its application and loan origination processes. It offers traditional and crypto-backed loans. Figure doesn’t offer direct debt payoff, but you can take out a personal loan up to $50,000 and use the funds to pay off your debts.
Figure
APR
5.75% – 31.44%
Loan amounts
$5,000 – $50,000
Minimum credit score
680
Upgrade
Best for Raising Credit Score
Key Features
Checking, credit and loans in one platform
No prepayment penalties
Next day funding
Upgrade is a financial tech platform designed to help you raise your credit score through checking, credit cards, credit monitoring and personal loans. It offers debt management and payoff in one platform, and you may qualify for a debt consolidation loan with a fair or bad credit score as low as 580.
Upgrade
APR
7.96% – 35.97%
Loan amounts
$1,000 – $50,000
Minimum Credit Score
580
Rocket Loans
Best for Transparent Process
Key Features
Same day funding
No prepayment penalties
All-online application
Rocket Loans lets you apply online for a debt consolidation personal loan in minutes. The online application starts with a transparent overview of the process, so you know what to expect at each step as you await your loan. You can verify your income and identity entirely online, so you don’t have to worry about phone calls or snail mail slowing down the process.
Rocket Loans
APR
8.416% – 29.99%
Loan amounts
$2,000 – $45,000
Minimum credit score
610
Discover
Best for Flexible Repayment Options
Key Features
No fees (except late fees)
Repayment assistance options
Free FICO credit score
Discover’s debt consolidation loans are fee-free and available to borrowers with a credit score as low as 660. Its repayment assistance options are robust compared to many competitors: If your financial situation changes, you could apply for payment deferral, a short-term shift to interest-only payments or extend your repayment period for lower monthly payments.
Discover
APR
6.99% – 24.99%
Loan amounts
$2,500 – $35,000
Minimum credit score
660
Marcus
Best for On-Time Payment Rewards
Key Features
No fees
Skip-a-payment reward for on-time repayment
Customize your monthly payment
Marcus is the personal banking arm of Goldman Sachs, offering individual savings, investing, credit cards and loans. Its personal loans are available to borrowers with good credit for up to $40,000, with no fees — not even late fees. And it rewards you for on-time payment: Make your monthly payment on time for 12 months in a row, and you can defer payment for a month with no additional interest accrued.
Marcus
APR
6.99% – 24.99%
Loan amounts
$3,500 – $40,000
Minimum credit score
660
LendingClub
Best for Bad Credit Loans
Key Features
Borrow up to $250,000
Funding within 48 hours
No prepayment penalty
LendingClub calls itself an “online marketplace bank.” It offers checking accounts and personal loans, including loans for debt consolidation, up to $250,000 for terms of three to five years. LendingClub can be a good option if you have a low credit score; loans may be available for lenders with scores as low as 600.
LendingClub
APR
5.99% – 35.89%
Loan amounts
$1,000 – $40,000
Minimum credit score
600
Prosper
Best for Peer-to-Peer Borrowing
Key Features
Peer-to-peer lending
Next-day funding
No prepayment penalty
Prosper is one of few peer-to-peer lending platforms left — individuals and financial institutions can invest in personal loans to support borrowers and earn a little bit of a return. You don’t have to deal with investors directly; Prosper manages the application and loan origination. Loans are available from $2,000 to $50,000 with a credit score as low as 600.
Prosper
APR
6.99% – 35.99%
Loan amounts
$2,000 – $50,000
Minimum credit score
600
Avant
Best for Fair Credit Loans
Key Features
Next-day funding
Minimum credit score 580
Not available in New York
Avant offers personal loans up to $35,000, with funding as soon as the next business day after approval. The lender’s minimum credit score is just 580; most borrowers have FICO scores between 600 and 700.
Avant
APR
9.95% – 35.99%
Loan amounts
$2,000 – $35,000
Miminum credit score
580
LendingPoint
Best for Fair Credit Borrowers
Key Features
Next-day funding
No co-sign loans
Not available in Nevada or West Virginia
LendingPoint assesses creditworthiness with a proprietary algorithm that looks beyond traditional FICO scores, so it’s able to lend to borrowers with scores as low as 600. LendingPoint loans are available in every state except Nevada and West Virginia.
LendingPoint
APR
7.99% – 35.99%
Loan amount
$2,000 – $36,500
Minimum credit score
600
How Does a Debt Consolidation Loan Work?
A debt consolidation loan is a type of personal loan you take out to pay off existing debts, and it’s most commonly used to pay off high-interest credit card debt.
The reason this is beneficial, even though you still have to repay the same amount of debt, is that personal loans come with much lower interest rates than most credit cards. You might have a few credit card balances accumulating interest at around 16% to 25%, while personal loans usually come with interest rates closer to 5% to 12%.
A “debt consolidation loan” is just a personal loan marketed specifically for debt payoff. They work exactly like personal loans on paper, except that many lenders send loan funds directly to creditors for you. If they don’t, you could still take out a personal loan and use the funds to pay off debts yourself.
To make a debt consolidation loan worth it, you should receive at least one of these benefits:
A lower interest rate (lower than the average of the debts you’re paying off).
A lower monthly payment than the total of what you pay now. This could come with a higher interest rate and/or longer repayment period, but it might be what you need for now to stay above water. You can always refinance in the future for a better rate.
Quicker payoff. A debt consolidation loan might come with a higher monthly payment, but if you can manage it, that could simplify your debt management, save you on interest and get you out of debt faster.
Longer repayment. If you’re consolidating or refinancing existing loans with short repayment terms, a new loan could extend the time you have to repay by lowering your monthly payment. You’ll likely pay more in interest this way, but it could ease your monthly commitments.
How to Choose a Debt Consolidation Loan
Before you commit to any debt consolidation option, shop around to see what lenders can offer you. Your available terms could vary quite a bit from lender to lender because of how they evaluate your credit history and what kind of borrowers they’re targeting.
Online lending marketplaces like Credible or Fiona make it easy to quickly see and compare pre-qualified offers from lenders side-by-side, so they could save you some time.
To choose the loan that fits your financial goals, consider these features:
Interest rate: If your main goal is to save money, look for a debt consolidation loan with an interest rate that’s lower than the average rate on your existing debts. Lenders typically offer lower interest rates with shorter repayment periods, so play with those factors to land on a rate that works for you.
Monthly payment: Primarily, you need a monthly payment you can pay comfortably every month, considering your existing commitments. If you’re overwhelmed by your current debt payment, refinancing or consolidating into a loan with a lower monthly payment could offer some relief. It’ll probably come with a later payoff date, which could mean you pay more in interest over time — but that lower bill could make the difference between paying on time or not.
Repayment term: This is the number of months or years to repay the loan. A longer term (or period) means lower monthly payments, but often comes with a higher interest rate and will mean more time for interest to accumulate. A shorter repayment term means a quicker payoff date, so if your goal is fast debt elimination, look for lenders that offer one- or two-year terms.
Fees: Many of the lenders we’ve listed charge no fees, but some still charge an origination fee, which lops off a small percentage of your loan up front. Some companies also charge late payment fees and a few companies even charge a prepayment penalty, which means you could pay extra if you pay off the loan early.
Debt Consolidation Loan Costs to Consider
Debt consolidation loans come with the typical costs included with any personal loan, including:
Interest: This is the extra you’ll repay on top of the amount you borrow. Debt consolidation loan rates could be as low as 3.5% or as high as 35.99%, depending mostly on your credit. Avoid loans with a higher interest rate than your existing debt unless consolidation feels like your only option to meet your financial goals.
Origination fees: A lot of lenders charge a fee up front just for making you the loan. It’s usually charged as a percentage of the loan amount, around 2% or 3%, and it’s deducted from the initial funds you receive. If your lender charges an origination fee, take that into account to make sure you get the funds you need to cover your debt balances.
Late fees: Some lenders charge a late fee if you make a payment past the monthly due date. The fee is typically a percentage of the payment due or a flat fee. Take note of these in your loan agreement if your financial situation changes and you’re unable to make payments on time. You might be able to avoid them by working with the lender to move your due date or ask for a deferment period.
Prepayment penalties: Few lenders of debt consolidation loans charge these anymore, but double-check before you sign an agreement. Prepayment penalties are fees you owe if you repay ahead of schedule — either paying your loan balance off early or getting too far ahead on your monthly payments.
Debt Management vs. Consolidation vs. Refinancing
As you seek options to tackle your debt, you’ll probably come across information and services for debt management, debt consolidation and debt refinancing. They all have similar aims, but they’re not the same things.
Debt management is a service offered by nonprofit organizations to get difficult debt under control. You work with a debt counselor to make arrangements with creditors, like adjusted repayment plans or reduced balances, and you make a single monthly payment to the organization, which pays creditors on your behalf.
Debt consolidation is a personal loan or balance transfer credit card that replaces existing debt. You use a debt consolidation loan to pay outstanding balances, so you only owe money to a single lender each month, ideally with a lower interest rate or lower monthly payment.
Debt refinancing is a way to take an existing loan and repackage it with different terms. Like consolidation, you basically replace one loan with another, but refinancing focuses on just one loan, rather than a plethora of debt accounts. You can often go back to your existing lender to ask for better terms — because, say, your credit has improved or the prime rate has gone down — or shop around for other offers.
Alternatives to Debt Consolidation Loans
Debt consolidation loans aren’t the only avenue for tackling your debt. Consider these other options and their effect on your credit score and financial goals before committing to a loan:
Balance transfer cards: These credit cards let you transfer the outstanding balance of an existing card or several, so you pay it off to the new creditor. It’s a way for a credit card company to entice you away from a competitor. Balance transfer cards usually offer an interest-free period of about a year. If you expect to be able to repay your credit card debt within that period, this is a great way to save on interest. If you don’t repay within that period, though, back interest usually comes due, and your balance could become less manageable than you expected.
Refinancing: If you have a single loan with unfavorable terms, you could return to the lender and ask to refinance. This could get you a lower interest rate or different monthly payment, depending on your financial situation and needs.
Debt forgiveness: A debt management plan usually comes with some amount of forgiven debt, which could offer a tremendous amount of relief. You might also be able to negotiate a reduced repayment amount on your own directly with your creditors. This kind of settlement usually shows up on your credit report as a negative mark.
Deferment: Check the terms of your existing debt to see if your lender offers deferment or other flexible repayment options. You may just need a month or two off of monthly payments or interest to get back on track, and that could save you the trouble of applying for a whole new loan.
What Is the Smartest Way to Consolidate Debt?
Two main options exist to consolidate credit card debt: a debt consolidation loan or a balance transfer card. Each has pros and cons, and which is best for you depends on your financial situation and goals.
A debt consolidation loan usually comes with a longer repayment period and a lower interest rate than a balance transfer card. The loan pays off your existing debts, and you just owe one monthly payment to the new lender. Ideally, you’ll lower your interest rate or monthly payment, depending on your goal.
A balance transfer card absorbs the balance of other credit cards and lets you continue to spend on the new balance. They often come with a year or so of no interest for the transferred balance, so this could be a strategic way to save money if you’re paying off debt fast. Back interest usually comes due at the end of the introductory period, though, so this becomes a costly option if you don’t pay your debt down fast.
A debt consolidation loan is probably a better option in most cases, because it sets you up for slower, steady debt payoff at a monthly payment you can manage and an interest rate that hopefully saves you money.
A balance transfer card is a smart strategy if you’re focused on quick debt payoff and are pretty certain you’ll eliminate your balance within the next 12 months. It can, however, be a risky move if you don’t have that solid plan in place to prioritize debt payoff for the near future.
How Does Debt Consolidation Affect Your Credit Score?
Debt consolidation could lower your credit utilization and create a positive line on your credit report, which could improve your credit score over time.
Here’s how it works:
Credit utilization: Paying off your credit card debt — even if you take on a loan to do it — lowers the amount of your available credit you’re using, called your credit utilization. Lower utilization is better for your credit score.
Credit report: Making your loan payments on time or ahead of time throughout the life of the loan creates a positive line on your credit report, which can help to balance any negative marks you’ve accumulated with unpaid credit card debt.
Debt consolidation could also impact your credit score negatively in these ways:
New credit inquiry: When you apply for a loan, the lender does a hard credit inquiry, which shows up on your credit report as a request for credit. Your credit score will probably take a temporary dip because of that, but that effect doesn’t tend to last beyond a few months.
Payment history: Paying your loan on time will be good for your credit score — but if you don’t make payments on time or you default on the debt consolidation loan, it’ll hang out on your credit report for about seven years and hurt your score.
How to Protect Your Credit When You Consolidate Debt
Debt consolidation can be a smart strategy as part of a plan to pay off your debt and improve your credit score. Replacing high-interest balances with a lower-interest loan is a smart step toward eliminating debt, which is good for your credit score.
But be careful not to make these common mistakes when you consolidate debt — they could end up hurting your credit score:
Don’t close your paid accounts. Leave your credit card accounts open even after you pay off the balances. If you want to avoid using the cards again, cut up the physical cards, remove the virtual cards from your digital wallet and erase the card numbers from your browser. Keeping old accounts open ensures you have mature accounts in your credit history, and the unused balances help reduce your credit utilization.
Don’t skip monthly payments. Plan ahead to take out a loan with monthly payments you expect to be able to absorb. If you’re coming up on a monthly payment you won’t make on time, contact the lender ASAP to negotiate a different due date, deferment or other flexible repayment option. Missing monthly payments dings your credit report and will certainly lower your score, in addition to racking you up more debt in fees and interest.
Don’t add more credit card debt. If you can avoid it, don’t use credit cards while you repay your debt consolidation loan. Or use them with careful intention, and repay your purchases frequently (like, daily) to avoid carrying a new balance. This lets you concentrate on paying off just the one debt, so you can work toward financial relief.
Keep on Refinancing
You don’t have to stop after one debt consolidation loan.
After you’ve made on-time payments for a year or so, check your options again to see if you could refinance to even more favorable terms. Your positive payment history and reduced credit card debt can very likely improve your credit score and expand your options for better loans.
Knowing this is an option down the road could give you some relief now, too: You may need to take out a high-interest loan with a long repayment term because you have bad credit now. Consolidating your debt this way might be your best path to getting out from under a mountain of stressful and confusing debt. But you don’t have to stick with those terms forever.
As your credit score improves and your debt balance goes down, consider refinancing the loan in the future to get better terms that’ll save you money and help you reach your goals even faster.
Frequently Asked Questions (FAQs) About Debt Consolidation Loans
We’ve rounded up answers to some of the most commonly asked questions about debt consolidation loans.
What Credit Score Do You Need for a Consolidation Loan?
Plenty of lenders make loans available for borrowers with bad or fair credit scores in the high 500s to mid 600s. Just watch out for the interest rate. It doesn’t usually help you to replace your existing debt with a loan with a higher interest rate. And a monthly payment you can’t pay won’t improve your situation, either.
The higher your credit score, the better odds you’ll always have for landing a loan and getting favorable terms. But you don’t necessarily need a good or excellent credit score to get a debt consolidation loan.
Does Consolidation Affect Credit Score?
Your credit score can be hurt temporarily by a debt consolidation loan. It can also hurt your credit utilization score. However, meeting the payment deadline on the consolidation loan will help your score over time.
Do Debt Consolidation Loans Typically Work?
Debt consolidation loans are most helpful for people with credit card debt. The consolidation loans often have a lower interest rate than credit cards which means more of your money is going to pay down the loan amount. They also work if you meet the payment deadline.
Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Freelancer Veronica Matthews contributed to this post.
Playoffs for the NFL season are here. And The Super Bowl is right around the corner, scheduled for Feb. 12, 2023.
If you’re like a lot of sports fans, you might have cut the cord a while back. With streaming services popping up all the time and television contracts changing, it can be hard to keep up with how to watch your favorite NFL team.
So how do you catch your team’s postseason contests?
All of the playoff games are broadcast by either ABC, CBS, NBC, Fox or on ESPN. As for the big game, Fox is exclusively broadcasting the Super Bowl. So If you have any of those network streaming services, you are set to go for the games each network broadcasts.
If you have made up your mind to stream the games, rather than watch on standard broadcast TV, you have a few options.
Here is a look at your viewing options based on the streaming services to which you subscribe.
Getty Images
Where to Stream NFL Playoff Games Without Cable
ABC/ESPN
The Disney-owned network only broadcasts one game through the first weekend (wild card round) of playoff games. That game is simulcast on ABC, ESPN and ESPN+. It does not carry any other NFL playoff games.
CBS
This network, which for decades was the go-to for the NFL, broadcasts games every weekend until the Super Bowl. CBS games also stream on Paramount+.
Fox
You can watch the Fox playoff games and the Super Bowl on any device through the Fox network app.
NBC
The Peacock network has games scheduled the first two weekends of the playoffs. You can watch them on Peacock Premium, which is $4.99 a month.
For the price of $64.99, you can watch every NFL playoff game and the Super Bowl through the network YouTube channels. The YouTube subscription effectively signs you up for all of the network subscriptions at the same time.
The league’s broadcast package ($4.99 a month) gets you all of the playoff games and the Super Bowl but they can only be watched on mobile devices. This is fine if you are going to watch the games by yourself somewhere where you do not have access to a normal TV monitor.
fuboTV is a compilation of streaming services, including all of the networks providing NFL playoff games. The cheapest subscription package is $74.99.
Decisions, Decisions
When deciding which service to subscribe to for NFL games, consider:
Which games the service offers
Which extra NFL features (audio, replays, live programming options, etc.) the service provides
The rest of your family
Most of the streaming services offer more than just sports coverage, and you may have family members who would like to watch true-crime dramas, romantic comedies or documentaries.
That’s good news to the family members who don’t want to watch guys throwing a ball around on Sunday, Monday and Thursday.
Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. Senior writer Robert Bruce also contributed.
Our health relies on staying hydrated. Both mental and physical functioning can be harmed by dehydration. Grabbing the occasional bottle of water at a convenience store is a small price to pay to avoid passing out during a long hike or a spirited game of outdoor volleyball in 93-degree weather.
But it’s regularly buying bottled water that really adds up.
A 12-ounce bottle of still water can run you anywhere from 99 cents at a grocery store to $2.00 or more at a gas station or convenience store. A 12-pack of store brand water is more economical, running around $3.80.
And that’s just for plain water. Fancy water with added nutrients, flavoring and bubbles costs even more.
Bottled Water: Why Not Just Pour Money Down the Drain?
Americans are clearly dedicated to hydration. We drink water like it’s our job.
In fact, Americans drink an average 47 gallons of bottled water per person each year.
That’s a lot of plastic water bottles, and it has a pretty terrible impact on the environment. There are also health concerns about single use plastic bottles, since they are manufactured with phthalates. There is growing research about how these chemicals affect people.
But for now, let’s look at the impact on our wallets.
Reusable Bottle Options
The obvious solution to disposable water bottles is to get your hands on refillable water bottles and fill them up yourself. Keep one at home, one at work and one in the car.
With over 100,000,000 plastic bottles used every day around the world, using a reusable bottle is better for your wallet, health, and the environment.
What should you look for when buying a reusable bottle or three? It depends on your lifestyle and budget. Most reusable bottles are made from metal, glass, or plastic. There are metal/bamboo and ceramic ones too. It’s important that you wash out your reusable bottle regularly so mildew or mold doesn’t appear.
Before buying a reusable bottle, do a quick check on your habits to make sure you buy a bottle that you’ll actually use. Do you want one with a built-in straw? Is it something you might clip onto a bike or backpack, and so needs a handle or loop? If you put ice into your drinks, you might want to get a bottle with a wide mouth. If it is easy for you to refill, then look at smaller sizes. If you are on the road or water isn’t easily available, a larger one will work best.
When it comes to reusable bottles, you’ve got a few options.
Glass
Glass bottles are best if you want your water (or whichever liquid) to not be contaminated by other flavors or chemicals. There are shatter resistant reusable glass bottles available (which might be a pain to recycle, since they are made differently from regular glass). Glass bottles usually come with a protective sleeve.
There are both insulated and uninsulated glass bottles. These bottles are a little heavier but keep the taste pure.
Metal
Metal reusable bottles are usually made with stainless steel or aluminum, both relatively light and safe metals. Metal bottles are generally very durable, though stainless steel is stronger than aluminum.
Aluminum is lighter, but also more likely to have a metallic taste leech into the liquid. There may also initially be a metallic taste with stainless steel, but washing it frequently reduces that. Check to make sure that if the metal bottle is lined with plastic that the plastic is BPA free.
Pro Tip
If keeping your drink at a certain temperature, whether cold or hot, is important, make sure you have a vacuum-insulated bottle. That means the space between two insulating panels has been sealed.
Plastic
Plastic is the most common, and usually the least expensive, reusable bottle. These come in all sizes, and it is possible to fold some up to keep in your glove compartment, desk drawer, or backpack until needed. Plastic reusable bottles are usually the lightest version, even when insulated. They are made with the most variety, and often are the least expensive option.
It is important to make sure your plastic bottle was not manufactured with the chemical BPA (Bisphenol A). The easiest way to do this is to look at the bottle recycling information on the bottom. Don’t buy it if it has a 3 or 7 recycling code. Also look for the BPA-free insignia.
How Much Do These Bottles Cost?
The cost of your reusable bottle varies greatly.
Pricy but Durable
Sure you can spend $99 on a water bottle. If you are thinking that it better have its own filtration and cleaning system for that price, you would be right. That might make the $45 bottle look good. These seem to be geared toward the backcountry travelers who might need to filter water while on the trail.
Mid-Range Price with Extra Features
These aren’t the cheapest choices, but they can fit what exactly you want in your bottle. They do come equipped with neat extras like a storage compartment for snacks, fruit infuser, or (inexplicably) a wireless speaker.
Refillable water bottles at this price point are perfect for someone who has some extra dollars to spend on features that aren’t strictly necessary but make chugging water all day a little less boring. You might find the perfect bottle within the $12-25 price range.
Basic but Cheap
You’ll find plenty of reusable for just a few dollars if you’re willing to forgo all the bells and whistles. Discount department stores like TJ Maxx always have shelves full of bottles. Dollar and thrift stores usually have cheap reusable bottles for under $5.
Free
We love free. Often reusable bottles are branded items given away at events. Grab one! Consider reusing glass jars after a good washing (it would look weird to be chugging them if the marinara label was still on). You can also rinse out that togo coffee cup and fill that in a pinch.
You might think it’s a good idea to reuse an empty bottle from single-use bottled water you already bought. Unfortunately it isn’t. The chemicals in the bottle begin to break down after a few uses.
Tap Water vs. Filtered Water
Some people rely on water bottles to quench their thirst when they’re at work or on the go. But others buy bottled water to drink at home because they can’t or won’t drink tap water.
There is no research showing bottled water is healthier or safer than tap water (unless you’re under a boil water notice). The government’s bottled water regulations ensure safety, but not flavor. However, some places have water with a distinctive taste. Or you might live in a house with old pipes, and can taste the metal when you drink.
People can also be sensitive to hard or soft water. If you live in a place with hard water — water with a high mineral count — and use a water softener, you might still want a water filter to improve the flavor. Hard water has more minerals because it has seeped through the ground. Soft water lacks minerals like calcium and magnesium, and tends to have more sodium or salt.
But there are ways you can filter tap water, then use it to fill your reusable bottle.
Tap Water Filtration Options
Bring on the math. For each option, we considered:
The equipment cost of each system divided to equal a month’s use;
The daily cost to drink 64 ounces of water per day using each system. While this amount really reflects water obtained through food and other drinks besides water, it’s a good baseline for our calculations;
The price of tap water. According to groundwatergovernance.org, the average price of tap water in the US is 4 cents a gallon. This fluctuates widely but is the amount we will use to calculate costs.
We also figured out how many dollar bottles of water you’d have to avoid drinking to break even on your investment using each system.
Bottled water is sold in a wide variety of sizes, packaging and price points. To arrive at a happy medium somewhere between volume-discounted multi-bottle flats of water and expensive premium single-serving sizes, our formulas used a 12-ounce bottle of water costing one dollar for the calculations, which works out to $5.31 per day.
Pitcher Water Filters
Pitcher water filters are super easy to use. Just fill the pitcher by pouring tap water through the filter built into its lid, and refill as needed.
How many 99-cent bottles of water to break even? 85
Faucet Water Filters
Faucet water filters attach to your kitchen sink faucet to automatically filter water flowing through the tap.
Cost of equipment: $30 (and up) for the filter system, which comes with 6 months of filters.
Cost per day: 19 cents
How many 99-cent bottles of water to break even? 30
Refillable Jugs (5 Gallon)
Many grocery, big box and home improvement stores sell refillable plastic five-gallon jugs of water. Just tote the empties back to the store, refill them at the water kiosk and take them back home.
Cost of equipment: $15 per bottle and $8 to refill (local Publix), $9 for a hand press pump (and transportation costs).
Cost per day: 53 cents
How many 99-cent bottles of water to break even? 32
Water Delivery Service
Alternatively, you can have refillable five-gallon jugs delivered right to your door. The delivery company even drops off replacements when your bottles run dry.
Cost of equipment: 15 gallons of filtered water delivered with a dispenser averages $45 a month, according to the website Fixr.
Cost per day: $1.23
How many 99-cent bottles of water to break even? 17
It’s worth noting reverse osmosis water systems and whole house filters are two other ways to always have tasty water available at home. However, they also come with hefty installation bills unless you’re a skilled DIYer.
Lisa McGreevy is a former staff writer at The Penny Hoarder. Freelancer JoEllen Schilke contributed to this report.
You don’t have to be a farmer to appreciate the versatility of chicken wire. This mesh fencing is the go-to netting choice for chicken coops because it’s relatively easy to cut and super cheap — like you can get 32 feet for $20.
But don’t let chicken wire’s low price and low-profile utility fool you. This unassuming wire comes in all sorts of gauges and styles, making it the perfect material to tackle garden and decor projects alike.
Start thinking outside the coop with these inventive uses for chicken wire.
26 Creative Ways to Use Chicken Wire
Whether you take chicken wire outdoors or use it inside to pull off the farmhouse vibe, picking up a roll of chicken wire at the hardware store is never a bad idea. Here are 26 ways to use chicken wire.
Privacy screen
Vertical gardening
DIY yard sculptures
Pest control
Concrete reinforcement
Compost or waste bin
Bird feeder
Chicken wire baskets
Jar or glass cozies
Kitchen or pantry cupboards
Chicken wire frames
Chicken wire sconce or lampshade
Magazine rack
Firewood storage
Chicken wire cloche
Chicken wire shelves
Treetop star
Holiday wreaths
Holiday card display
Christmas trees
Lighted Christmas balls
Chicken wire pumpkins
Chicken wire ghosts
Jewelry organizer
Chicken wire terrariums
Papier-mache projects
How to Use Chicken Wire in the Garden and Outdoors
Snag a spool of chicken wire to use as netting, and you’ll find yourself using it in all sorts of outdoor spaces.
1. Privacy Screen
Urban neighborhoods with postage-stamp backyards make privacy a challenge. Create a screen to discourage prying eyes with 2x4s and some chicken wire. You can even coax vines or other trailing plants to grow up the gaps to create your own backyard oasis and block your neighbor’s view.
Pro Tip
Looking to spruce up an outdoor space? Here are the details on how to do it with a $100 budget.
2. Vertical Gardening
Balcony or patio gardening is a challenge, but chicken wire can help plants grow vertically. Use this netting to form a trellised planter that’ll make the most of the space you have.
3. DIY Yard Sculptures
If you can dream it, chicken wire can give it shape. Use chicken wire as a medium for whatever takes your fancy, from garden orbs to giant butterflies. If you’re new to working with chicken wire, this tutorial on chicken wire art is a good place to start.
4. Pest Control
Chicken wire doesn’t just keep chickens in. It also keeps pests like rodents, rabbits and more out. Protect from animals that dig into gardens, by installing fencing six inches or more below ground.
5. Concrete Reinforcement
Reinforcing concrete in buildings is something best left to professionals, but you can apply the same methods to create outdoor concrete planters and smaller structures. See how to shape and cure your chicken wire concrete creations here.
6. Compost or Waste Bin
Need a place to put compost, garden waste or leaves? Ditch the bulky, expensive lawn bags and use chicken wire to shape a bin. You can even craft a lid, so your corralled compost or leaves stay put.
Getty Images
7. Bird Feeder
Galvanized chicken wire can make for an inexpensive bird feeder like the one in this tutorial. Just make sure the holes are big enough to let the birds peck through but small enough to keep the feed from spilling out.
How to Use Chicken Wire in the Kitchen
Fly the coop and head to the kitchen, where you can put chicken wire to good use in a variety of DIY projects.
8. Chicken Wire Baskets
Finding a way to keep fruit off your counter or a spot to corral bread can be a challenge, but chicken wire is up to the task. You can create a basket just like the ones you shell out money for on Amazon with dollar store supplies.
Want to see where you can score the best dollar store stuff for cheap? We tried out three popular dollar stores and did the math, so you don’t have to.
9. Jar or Glass Cozies
You might cozy up to this chicken wire idea of creating sleeves for glass jars or other containers. Not only does it help you get a grip, but it can be a fun choice for backyard barbecues.
10. Kitchen or Pantry Cupboards
If you see a gorgeous old cupboard that’s missing a door or a pane of glass at a second-hand store, there’s a cheap solution for that. Chicken wire can double as a door for cupboards and the open shelves provide a little farmhouse ambiance to your kitchen.
How to Use Chicken Wire for Home Decor
Take stock of your projects because chances are you’re missing out on an opportunity to put chicken wire to work.
11. Chicken Wire Frames
Stretching a little chicken wire across an empty frame seems simple, but it’s the start of a lot of practical crafts that are perfect home decor solutions. Use small clothespins and you’ve created a photo display, message board and more.
12. Chicken Wire Sconce or Lampshade
As a light fixture with a minimalist aesthetic, chicken wire really shines. You can stretch it to make a sconce for a wall or hanging fixture or use it as a chicken wire lampshade.
Pro Tip
Looking to do a little redecorating? See our picks for the 20 home decor stores that’ll help you deck out your dwelling for less.
13. Magazine Rack
Skip the store version and put a fence around loose magazines and other reading materials with a chicken wire magazine rack. This tutorial shows you how to mount a chicken wire magazine holder using wire and a rustic wooden board.
14. Firewood Storage
Another popular use for this wire outside of the farm is for firewood storage. You can shape a basket for logs to stash by the fireplace or an outdoor netting to keep your wood protected from the elements.
15. Chicken Wire Cloche
Put a lid on pretty much anything with an open cloche like the one in this video tutorial. These wire filters are easy items to fashion and give your farmhouse decor a second life.
16. Chicken Wire Shelves
Redecorating on a budget? Lean into an industrial-meets-farm look with chicken wire shelves. You’ll still need wood to keep it steady, but the chicken wire provides backing and extra stability.
How to Use Chicken Wire for Seasonal Decor
Sometimes it seems like a waste to pay big bucks for decorations you use once a year. That’s why chicken wire offers fantastic options for shaping seasonal cheer on the cheap.
17. Tree Topper Star
Make a DIY chicken wire tree topper star that provides a touch of farmhouse fa-la-la to your Christmas tree. Just glue a few slats of wood or sticks into a star outline, wrap the joints in rustic twine, and use chicken wire for the backing.
18. Holiday Wreath
Because chicken wire is easy to mold, it’s a great material for wreaths. You can fill the chicken wire so it’s on the outside as a wrap or use it as a base for mounting craft or plant materials like ribbons and fabric.
Speaking of holiday crafts, see how you can leverage that glue gun as a side hustle with 15 seasonal goods that really sell.
19. Holiday Card Display
If the deluge of holiday cards is always sliding off your fridge, fashion a holiday card display from a chicken wire frame and some clips.
Photographs courtesy of Johna Strickland
20. Christmas Tree
Does your holiday spirit take a hit when you see the cost of a fresh or artificial tree? Next time, mock-up and decorate a chicken wire Christmas tree.
It’s an allergy-friendly cheap option that’s easily customized, like this floor-to-ceiling one made with festive ribbon that can be rolled up and stored away. Weave ribbon through the wire, attach lights with zip ties, put a bow on the top and hang ornaments all over.
There are lots of other variations too.
21. Lighted Christmas Balls
Wrap them in lights and scatter a few cheap chicken wire balls in different sizes as Christmas decorations. To let it glow, secure them as orbs from the eaves or trees.
22. Chicken Wire Pumpkins
Chicken wire isn’t just for Christmas. Use it to shape other seasonal symbols like pumpkins to compliment your tabletop decor or giant chicken wire pumpkins that sit on your doorstep without making a mess.
23. Chicken Wire Ghosts
One of the spookiest things to come out of using chicken wire are life-size lawn ghosts. HGTV has a tutorial on how to shape and safely drape the chicken wire to create ghostly figures.
Other Great Uses for Chicken Wire
Got a roll of chicken wire kicking around and need more inspiration? These craft ideas make a little wire go a long way.
24. Jewelry Organizer
Start with an empty frame and stretch some smaller mesh chicken wire across to create the perfect low cost storage solution for hanging earrings, necklaces and more.
25. Chicken Wire Terrarium
Give your plants a breath of fresh air with farmhouse-style fencing. Use chicken wire either as a terrarium cover for delicate succulents or as plant display in this video tutorial from Refinery29.
26. Papier-Mache Projects
Chicken wire is a classic solution for giving more stability to papier-mache projects, like this bison head. From ornaments to leaning towers of Pisa, chicken wire can be the craft supply that really holds it together.
Frequently Asked Questions (FAQs)
Where Can You Buy Chicken Wire?
Chicken wire is a poultry mesh available in a variety of wire meshes and gauges. Mesh refers to how far apart or big the holes are in this hexagonal netting. Gauge refers to how thick the wire is. You can buy a variety of chicken wire sizes for relatively cheap prices online and in stores. You can get same-day delivery or free store pickup at most hardware stores like Lowe’s, Home Depot or Ace Hardware.
How Much Does Chicken Wire Cost?
Don’t worry about sticker shock at the checkout. It depends on the gauge and the length of the roll, but you can purchase 40 feet of chicken wire for around $30. Keep in mind, though, that chicken wire can rust when exposed to the elements, so look for galvanized chicken wire if you plan to use it outside.
How Do You Cut Chicken Wire?
Cutting chicken wire can be accomplished with a cheap pair of wire cutters or heavy-duty scissors for thinner gauge wire. The tricky part is keeping it unrolled while you work. Stabilize one end of the wire by fastening it to something using twist ties or twine or weight it down and then unroll and cut the chicken wire from the other end.
Kaz Weida is a senior writer with The Penny Hoarder.
It’s easy to feel disconnected from your finances when you spend money with the swipe of a card or the tap of a button on your smartphone.
But when you’re mindful of where your money goes, you can cut down on unnecessary spending and put more cash toward your savings goals.
Kakeibo, the Japanese budgeting method, attempts to help people become more cognizant of their spending habits and improve the way they manage money.
Here’s how it works.
What Is Kakeibo?
Kakeibo — pronounced “kah-keh-boh” and sometimes spelled “kakebo” — is a money management style that has been around since the early 1900s. The word translates to “household financial ledger.” Hani Motoko, who is known to be Japan’s first female journalist, helped bring kakeibo to the public eye, making it popular among housewives who manage their family’s finances.
Though this budgeting method has been around for over a century, it has seen a resurgence in popularity — particularly in the Western world — as more people embrace minimalism, mindfulness and KonMari organization.
Budgeters looking to straighten out their financial lives the way Marie Kondo taught us to tidy up our living spaces need to look no further than kakeibo.
Not sure which of the budgeting systems is the right fit for you? Take our quiz to get customized recommendations.
5 Steps to More Mindful Spending With Kakeibo
Kakeibo stands apart from other budgeting methods by combining reflection and journaling with common money management practices like categorizing expenses and tracking spending.
Step 1: Get a Household Ledger
One thing that’s important to mention about kakeibo is that it’s intended to be done on pen and paper — hence the “household ledger” translation. Physically writing down your spending gives you a more tangible sense of where your money is going rather than using an app that records your expenses for you.
While several kakeibo budgeting journals have been published in the last few years — like Fumiko Chiba’s “Kakeibo: The Japanese Art of Saving Money” — you don’t need to buy a guided journal to get started. A plain notebook can serve the same purpose.
Step 2: Reflect on How You’re Spending Money
If you’re setting up your own kakeibo journal, start each month off by reflecting on the following four questions:
How much money do you have available?
How much would you like to save?
How much are you spending?
How can you improve?
Jot down income you’ll have coming in during the month and subtract fixed expenses that you’re obligated to pay — like your rent or mortgage, utilities and minimum debt payments. The money you’re left with is your available funds for the month.
Step 3: Set a Savings Goal
From that amount, decide how much you want to put aside for savings. Think about what you’re saving for and why you’ve set that goal. Are you on track to reach your desired amount or do you need to find ways to reduce your expenses or bring in more income?
Pro Tip
Are you saving enough? Experts advise keeping one or two months’ worth of expenses set aside in your bank account.
Step 4: Track Your Expenses
After putting aside money for savings, log your spending in your journal as it occurs. Using the kakeibo method, you’ll keep track of the type of expenses using four broad budget categories:
Needs: This would include groceries, clothing and medicine.
Wants: Factor in expenses like gym memberships, dining out and spa services.
Culture: Buying books and attending festivals would fall under this category.
Unexpected or extra expenses: This could be things like car repairs or an emergency vet visit.
As you record your spending, write about why you made each purchase and how you felt. Were you feeling rushed or stressed as you were shopping? Were you giving into retail therapy because you were having a bad day? Did you buy something just because it was on sale, even though you have no room for it at home? Did you feel glad that you bought something you’ve been waiting weeks to buy?
Step 5: Reflect on Your Spending Habits
In a way, you can treat your kakeibo journal like a diary. Exploring your feelings about spending money can help you get to the root cause behind poor habits — like overspending when you’re pressed for time or when you’re out with friends you want to impress. Ideally, you want to feel happy about the way you spend your hard-earned cash.
At the end of the month, you’ll total up your spending in each of the four categories and reflect on how you’ve managed your money. You might want to do mini check-ins at the end of each week.
Ask yourself: Did your actions align with your financial goals? What were your successes and failures? Think about how you can improve going into the month ahead.
Benefits of Tracking How You Spend Money With Kakeibo
If you want more control over your spending, the Japanese art of kakeibo is a great budgeting style to try versus other budgeting systems for the following reasons:
Kakeibo doesn’t apply percentages to saving money.
You don’t have to follow set budget percentages. How you spend your money is truly a reflection of your unique financial goals.
Kakeibo’s categories make sorting monthly expenses easier.
You don’t have to stress about organizing your spending into rigid budget categories. Kakeibo’s four categories are pretty broad, but they paint a good overall picture of where your money’s going.
The Japanese method of kakeibo emphasizes deliberate spending.
Using pen and paper also helps you stay aware of how much cash you have available to spend at all times. And knowing you have to record your spending at the end of the day may make you think twice before giving in to an impulse purchase.
Kakeibo’s small changes can make a big difference.
Embracing mindfulness in your daily routine through kakeibo can help you reduce nonessential purchases and trim weekly spending. Ultimately, the money kakeibo saves will set you on the right path to reaching your saving goals.
Nicole Dow is a former senior writer at The Penny Hoarder. Kaz Weida, a senior writer at The Penny Hoarder, contributed.
Digital-first financial services are the wave of the future: all of the money management, none of the getting off the couch.
One of the earliest players and a leading company in the branchless banking game is Chime, a financial technology company founded in 2013 by Chris Britt (current CEO) and Ryan King (current CTO).
Like other online banking options, Chime offers many of the most important features of a traditional deposit account with a much leaner fee schedule — and even has a savings account option that bears a much higher interest rate than a typical savings account.
Chime has become increasingly popular even though a summer 2021 controversy has yet to play out. Nearly 1,000 complaints were lodged with the Consumer Financial Protection Bureau after Chime abruptly closed hundreds of accounts. Chime said the closures were related to COVID relief fraud but the issue has not been publicly resolved. Pro Publica reported on the situation in July and The Penny Hoarder is watching for resolution.
Chime Review: Accounts
In this review conducted in late 2022, we look at both the Chime’s checking and savings accounts, considering the details you will need to decide if you want to sign up. Chime offers one “checking account” option, called the Chime Spending Account. Every Chime member starts with this account.
If you open a Chime Spending Account, you also have access to a Chime Savings Account, an FDIC-insured savings account with automated savings features, high APY and no fees.
Chime Checking Account
Best for Simple, Fee-Free Checking
Key Features
No monthly fees
Cash deposit via Green Dot
Fee-free overdraft options
Chime’s checking option is the Spending Account. It’s a pretty basic product: A non-interest-bearing deposit account linked to a debit card. It works like most traditional checking accounts, and includes fee-free overdraft options and access to a credit builder account if you want it.
Chime Checking Account
Minimum balance
$0
ATM access
60,000-plus free ATMs2
Prime perk
Get paid up to two days ahead with direct deposit3
More Information about Chime Checking Account
With a Chime Checking Account, you get:
Visa debit card: Use your Chime debit card for point-of-sale transactions, ATM withdrawals and Green Dot cash deposits.
Mobile deposit: Deposit any check into your account by snapping a photo with the Chime smartphone app. How easy is that?
Cash deposits:You can deposit cash into your Chime account at more than 75,000 retail locations with Green Dot, which is a feature many online banks don’t allow.
Peer to peer transfers:Send money directly from your Chime account to friends and family, whether they use Chime or not.4
SpotMe® overdraft protection:This fee-free overdraft protection feature is available if you’ve received total monthly direct deposits of $200 or more in the last 34 days. If you spend more than you have in your account, Chime will cover the difference, starting at a limit of $20 and increasing up to $200 or more depending on your account activity. You’ll repay the overdraft amount out of your next deposit.5
Bill pay:Pay rent and bills directly from your account through ACH transfer by giving companies your Chime routing and account numbers. Or mail a paper check using the Chime Checkbook feature.
Pro Tip
Check out our current list of bank promotions for a chance to earn a cash bonus when you sign up for a new bank account.
Chime Savings Account
Best for Automatic Savings
Key Features
Cash rewards for saving
Automatic savings features
No minimum or maximum balance
The Chime Savings Account comes with no fees, balance minimums or maximums on interest, and it gives you access to automated features to make setting aside money painless. The Savings Account earns interest at a rate of 2.00%1 Annual Percentage Yield (APY), with no minimum deposit required. Chime Checking Account is required to be eligible for a Savings Account.
Chime Savings Account
APY
2.00%1
ATM access
60,000-plus free ATMs
Prime perk
Auto save with 10% of each deposit going to savings
More Information about Chime Savings Account
Anyone with a Spending Account has the option to add a Savings Account.
Automated savings features include:
Round ups: Anytime you make a purchase with your Chime debit card, you can automatically round up transactions to the nearest dollar and stick the digital change into your savings account.
Save When I Get Paid: Automatically transfer 10% of each deposit or payment received (of $500 or more) into your savings account.
Unlike some online accounts, Chime doesn’t make it easy to set specific savings goals or to further personalize your accounts by purpose. You also cannot deposit money directly into your Chime Savings Account; it has to be funneled through your Spending Account.
The Chime Savings Account is a federally regulated savings account, so it’s subject to any definitions or restrictions set by the Federal Reserve, including potential withdrawal limitations.
Other Chime Products
Aside from a simple checking account and savings account, Chime’s offerings are fairly light. It doesn’t offer any lending, credit cards or investing, so you’ll have to work with different institutions to cover those.
It does offer a fairly unique credit builder account connected to the Chime Credit Builder Secured Visa Credit Card.
You can open an account with no credit check and pay no annual fees. You’ll just make a deposit of any amount (no minimum), which becomes your credit limit. You spend on the card like any other Visa credit card and repay the balance with the money in your Credit Builder account, and your activity is reported to credit bureaus to build your credit history.
Chime Fees
Chime goes easy on the fees, which means:
No monthly fees for account maintenance.
No minimum balance requirement.
No foreign transaction fees.
No opening deposit requirement.
No fee for SpotMe overdraft protection and no additional overdraft fees.
No fee to send paper checks with Chime Checkbook.
No ATM fees when you use in-network ATMs.
You can withdraw cash from more than 60,000 fee-free ATMs in the U.S. through MoneyPass and Visa Plus Alliance ATMs.
You’ll pay the provider’s fee if you use an out-of-network ATM. And you’ll pay a fee to deposit or withdraw cash over the counter at Green Dot locations — Chime charges $2.50 for withdrawals, and you may pay a Green Dot fee, which could be up to $4.95 per transaction.
Chime Customer Experience
As with all online bank accounts, Chime’s convenience factor is relative: If you’re looking for the brick-and-mortar banking experience, you’re barking up the wrong (money) tree.
Because Chime is a technology company, its mobile app is easy to use and lets you manage your money on the go 24/7. If that’s what you’re looking for, Chime makes the grade for online checking accounts and savings accounts.
It also includes some features you won’t see from many of its online-banking competitors, including cash deposits, free overdraft protection, and early paycheck deposit.
Chime enjoys high ratings on both the Google Play Store and Apple’s App Store — 4.7 and 4.8 stars out of five, respectively.
The app makes it easy to access and interact with all of Chime’s banking features, including SpotMe overdraft protection, automatic savings options and easy mobile payments, which are made particularly simple for transactions between Chime users.
Through the app, you can:
See your Chime Spending and Savings account balances and transaction history.
Transfer money between Spending and Savings.
Deposit checks with mobile check deposit.
Locate in-network, fee-free ATMs.
Contact customer support.
Set up automatic savings and Round Ups for debit card purchases. A survey by the Federal Reserve Bank of Atlanta reported that Americans made an average of 68 payments or purchases a month in 2020, and 23 of those were debit card payments.
Transfer money to other Chime members with Pay Friends. The money transfers immediately.
The app doesn’t carry the wealth of extra features some other digital-first banks offer. Budgeting tools, for example, are a helpful way to reframe your finances, and banks of all types are increasingly working them into their suite of digital tools.
Chime, on the other hand, remains simplistic — which you might take as a positive or negative, depending on what you’re looking for.
Is Chime Right for You?
Chime’s suite of offerings and in-app tools are pretty lean, but could be a fit for you if you have relatively simple banking needs. Here’s our take on the best things and the not-so-best things about opening a Chime account.
Pros and Cons of Chime
We’ve rounded up the pros and cons of Chime to help you decide if this is the right option for you.
Pros
Fee-free money services
No overdraft fees, plus flexible protection
Get paid early
Cash deposits
Cons
No interest on checking
No small business banking options
No budgeting tools or financial services
No joint accounts
Frequently Asked Questions (FAQs) About Chime
Here are our answers to some commonly asked questions about Chime.
First off, Chime is not technically a bank but rather an online money management system. What makes a good financial platform or institution is different for everyone. Chime offers a fee-free spending account and savings account, higher-than-average APY, a credit builder card, a free ATM network and fee-free overdraft protection. Its features could be attractive to anyone, but may fall short if you want more comprehensive services, like lending, credit cards, investing or small business banking.
Is Chime a Legit Account?
Chime’s deposit accounts are held and FDIC-insured by its partner banks, Stride Bank, N.A. and The Bancorp Bank, both chartered and federally regulated banks in the U.S.
Can You Get Scammed on Chime?
Your money is safe with a Chime account. Chime uses a secure mobile banking platform that includes two-factor authentication, fingerprint authentication, transaction alerts, easy debit card freeze and Visa Zero Liability protection against fraudulent charges to your Chime Visa debit card. Its accounts are backed by partner banks, Stride Bank, N.A. and The Bancorp Bank, which offer FDIC insurance for your balances up to $250,000.
Chime’s mobile banking platform is secured with encrypted data, two-factor authentication and fingerprint authentication to keep strangers from accessing your account. And the platform gives you access to real-time transaction alerts and instant debit card freeze.
What Bank Does Chime Use?
Chime is a financial tech company that has partnered with Bankcorp Bank, N.A. and Stride Bank N.A. Chime offers accounts and cards, but is not a bank itself. It has an app and may seem like a bank, but its partners conduct the actual bank processes.
Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, careers and digital media. Information from former Penny Hoarder contributor Jamie Cattanach is included in this report. Freelancer Michele Becker contributed to this report.
*Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
¹ The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of October, 25th, 2022. No minimum balance required. Must have $0.01 in savings to earn interest. The average national savings account interest rate of 0.17% is determined by FDIC as of September 19, 2022 based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Visit National Rates and Rate Caps to learn more.
² Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
³ Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
4 Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. Once you are approved for a Chime Checking Account, see your issuing bank’s Deposit Account Agreement for full Pay Anyone Transfers details. Please see the back of your Chime debit card for your issuing bank. See Terms and Conditions.
5 Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
In need of a serious money reset? Going back to cash could be the cure for your ailing budget.
Popularized by modern personal finance patriarch Dave Ramsey, the cash envelope system encourages you to toss aside your wallet and rely on pre-labeled envelopes full of real, physical money.
Can the Cash Envelope System Really Curb Spending?
Like any budgeting method, much of the success of the cash envelope system relies on your commitment and follow-through. But increasingly, even younger generations are finding that going back to cash, while a bit retro, helps them to be more careful about what they’re spending.
However, note that the cash envelope system is not a budgeting method on its own. You’ll still have to figure out how to budget for expenses and decide how much you’ll put aside for savings before you start stuffing envelopes with personal spending money.
How the Cash Envelope System Works
You don’t have to use this method for your fixed expenses, like your rent or mortgage, car payment or debt payments. You can automate those recurring expenses since you’re likely required to pay the same amount on the same date each month.
Your water or electric bill may fluctuate from month to month, but treat it like your fixed expenses. You’re unlikely to go on a splurge and overspend on your utilities. And because utility bills are based on usage from the previous month, you can’t lower your bill by deciding to use less water or electricity this month.
Want to manage your monthly income better? Try level billing. Many utility companies offer this approach so you can level utility bills to a fixed amount.
You also don’t have to mess with any auto drafts for saving or investing. You aren’t going to benefit by taking money that would be earning interest in your retirement accounts and setting it aside in a cash envelope.
Instead, you’ll use cash for areas where the amount you spend can vary: gas, groceries, weekend adventures or clothing, for example.
It’s those variable expenses that often cause people to blow their budgets. But the cash envelope system is designed to keep budgeters on track by having a finite amount of money to spend.
Ready to try it?
Start the Cash Envelope System in 3 Easy Steps
It’s time to trade swiping plastic for counting paper.
Step 1. Determine How You’ll Allocate Your Money
First, you need to create a budget to determine how much money you have to spend each month.
Below are a few budgeting methods to consider. Whichever budgeting style you choose, make sure you get a good idea of what you can afford to spend in each of the categories you’ll track with the cash envelope method.
Looking at your bank and credit card statements from the past few months and analyzing how you’ve been spending can be a great way to determine how you should budget your funds.
The 50/20/30 Method: With this method, you dedicate 50% of your income to essentials like housing and groceries; 20% to financial goals like saving, investing and debt repayment; and 30% to personal spending on all the fun stuff.
The 60% Solution: Use 60% of your income for expenses you’re committed to. This will include necessities plus the expenses that are most important to you — whether that’s your gym membership, extracurricular activities for your kids or tithing to your church. The remaining 40% can be spent however you choose.
Zero-based budgeting: Get specific and assign a spending limit to all your budget categories until every dollar is accounted for. Take your income and subtract your expenses along with your savings and investment allocations, and you should end up with $0.
Pro Tip
Not sure which budgeting method is right for you? Take our quiz to get personalized recommendations on which of the popular budgets you should try.
Step 2. Decide Which Cash Envelope Categories to Use
Next, grab a stack of envelopes. Label each one with a spending category, like takeout meals, groceries, movie nights or clothing. Your envelopes will vary depending on what you’ve included in your budget. You might want to color-code each one so they’re easily distinguishable.
Consider how specific you want to get. Do you want to have one “self-care” envelope with $100, or would you prefer to put that cash into separate envelopes for manicures, yoga classes and beauty products?
Here are several budgeting categories you might want to use envelopes for:
Groceries
Restaurants/bars
Household supplies
Toiletries
Doctor’s office copays
Medication/vitamins
Pet care
Gas
Ride sharing
Clothing
Hair care
Entertainment
Gifts
A good practice is to have one envelope for miscellaneous expenses — to cover unforeseen things that come up but don’t warrant dipping into your emergency fund. Maybe your cell phone screen shatters and you want a replacement, or you need to hire an exterminator for an unexpected pest problem, for example.
Step 3. Distribute the Cash and Spend Accordingly
Each time you get paid, visit your bank or an ATM and take out cash to fill your envelopes. Say you want to budget $500 per month for groceries and $100 per month for gas. If you get paid once per month, you’ll take out $600 on payday. If you get paid twice per month, you’ll take out $300 each time.
Keep in mind: If your ATM spits out only $20 bills, you may need to visit the teller or go through the drive-thru to get cash in the increments you want.
After you separate the cash into its appropriate envelopes, you’re free to spend… but wisely, of course. Once an envelope is empty, don’t cheat and reach for your credit or debit card. You’ll have to wait until it’s time to fill the envelope again!
Pros
Helps curb impulse spending
No overdraft fees or credit card debt
Makes shopping online more difficult
Cons
No credit card rewards
Some stores are cash-free
Best for one-person budgeting
Split spending categories are tricky
Some safety concerns
Sharon Steinmann/The Penny Hoarder
The Pros of the Cash Envelope System
The advantages of the cash envelope system are pretty significant.
You start thinking twice about your personal spending. Swiping a card to pay for something is easy. So is clicking a button to make an online purchase. But paying with cash forces you to look at the money, touch the money and consider what you’re paying in exchange for a product or service. Don’t be surprised if you find you’re spending less.
It’s impossible to incur an overdraft fee, have your debit card declined or rack up credit card debt. When you’re out of cash, it’s not fun, but at least you’re not in the red. Remember: Budgeting is not a perfect science, and you might underestimate — or overestimate — the amount of cash you allocate in certain budget categories. You may have to adjust your cash envelope budgeting once or twice (or several times) before you find what works for you.
It can help you resist the urge to shop online. You’ve committed to using physical cash, so you’ll need to shop in person. But here’s a workaround if you do decide you really need to make a purchase on the web: Take cash from the assigned envelope and deposit it back into your bank account to cover the purchase. And resist the urge to withdraw money while you’re there.
The Cons of the Cash Envelope System
This system does also have a few disadvantages, especially for those of us not accustomed to paying for everything in cash. Here are some solutions to potential problems you might face along the way.
Problem: You miss out on credit card rewards.
Unfortunately, paying with cash won’t help you earn a free flight.
Solution: You could use your credit card to pay fixed expenses, like your cell phone bill or car insurance. Just be sure to pay off those charges immediately so you get the reward points but don’t rack up debt.
Problem: Some stores and eateries are going cash-free.
This is to speed up the payment process and avoid counterfeit bills. It can be challenging to pay with cash in tech-friendly retail environments.
Solution: Check out payment options in advance of visiting a new-to-you shop or restaurant. Just as there are cash-free establishments, there are also places that accept only cash, like some street vendors or food trucks, and businesses that give you discounts for paying cash, like some gas stations.
Problem: You’re managing a budget for more than one person.
The cash envelope system gets a little more complex when you’re doing it with a partner or spouse.
Solution: Before you start using the envelope method, talk with your partner about ways to distribute cash appropriately. This method is all about planning ahead.
If you both use roughly the same amount of gas each month, you should divide the cash in your “gas” envelope equally between each other. If one partner tends to do most of the grocery shopping, put most of the money from your “groceries” envelope into their own cash envelope. The other partner can carry a smaller percentage of the cash in their grocery envelope for occasional trips to the store.
Problem: Your expenses fall under multiple budgeting categories.
Say you run to Target and get diapers, dog food and detergent. Which envelope do you pull from?
Solution: Don’t be afraid to split your purchases into separate transactions. It may take a little extra time at the register, but it will help you maintain an accurate system. Also, be clear about which expenses fall into which categories — and stay consistent.
For instance, if you pay for diapers from the same envelope as personal care items like toilet paper or sanitary pads one week, don’t switch it up the next week and use your child care envelope to buy diapers.
Problem: Carrying around lots of cash poses a safety risk.
Thieves may view you as a target if they catch you opening up an envelope with loads of cash. And calling your bank to freeze your account or dispute unauthorized purchases won’t work when you’re using cash.
Solution: Take only the amount of cash you estimate you’ll spend per outing. For example, if your monthly grocery budget is $500 and you go grocery shopping four times per month, take out only $125 for each grocery shopping trip.
If you’re going only to the hair salon, just take the envelope for hair care expenses and leave the others home.
Pro Tip
If you decide the cash system is one you want to invest in, buy yourself a cash envelope wallet that’ll let you keep everything organized and zipped up.
Aileen Perilla/The Penny Hoarder
4 Expert-Level Tips for Cash Envelope System Fans
You don’t need to get fancy to be successful with the cash envelope system, but if you’re ready to take it even further, try some of these advanced tips.
1. Track Each Purchase From Each Envelope
Jot it down on the envelope while you’re waiting for your groceries to get bagged up. Or stash paper receipts in your envelope, and write down your expenses at the end of each day.
This extra step will help you be even more mindful about what each dollar you spend is going toward and ultimately save money on expenses.
2. Try Variations on Plain White Envelopes
You could splurge on a pack of heavy-duty, color-coded envelopes to manage your cash budget. Some options even have lines for neatly tracking your expenses as you go.
If you travel with several envelopes at a time, you may want an expandable file folder or a small accordion file folder, or a cash envelope wallet.
3. Digitize Your Envelopes
Try a few different storage systems or even digitize it. Working with physical money is one of the main components of this system, but there are ways to get around that if you find it too inconvenient to carry around dollars and change. Enter budgeting apps.
Goodbudget gives you virtual envelopes and can sync your budget with your partner or spouse so you can work together toward saving money. You can try the free version or purchase an upgraded version for $8 per month or $70 a year.
4. Strive to Have Leftover Money at the End of Each Month
This may prove the toughest challenge of the envelope method. But if you can get through the month without encountering an empty envelope, congrats!
You could roll any extra cash into the next month and be able to spend a little more. Or you can put the surplus into a savings account or use it to pay down debt — budgeter’s choice!
Kaz Weida is a senior writer at The Penny Hoarder. Nicole Dow is a former senior writer at The Penny Hoarder. Lisa Rowan contributed.
Saving $10,000 in one year may seem like a daunting challenge. It might feel impossible to save that much money. But imagine how beneficial it could be!
You wouldn’t have to worry about not having enough money in case of an emergency. You could take that luxurious vacation you’ve been dreaming about. You’d be so much closer to reaching your biggest financial goals, like finally paying off your student loan debt.
With the right game plan and discipline, saving $10,000 in a year is possible. We’ll walk you through how to make it happen.
A Realistic Approach to Saving $10K in One Year
Ten thousand dollars is a big number to think about, so let’s break it down into more digestible chunks.
If you want to save $10,000 in a year, you’ll need to save $833.33 each month.
That’s still a pretty big number to work with, so let’s break it down even further. You’d need to save $192.31 each week or $27.40 every day to reach your $10,000 savings goal.
Here’s another way to look at it: If you get paid every two weeks, you’d need to put aside $384.62 each time you get paid.
If you’re going after this savings goal with a spouse or partner, you can divide those amounts by two. You’d each need to save $416.67 each month, $192.31 biweekly, $96.15 weekly or $13.70 each day to save $10,000 in a year.
Keep Your ‘Why’ In Mind
Before you go about attempting this saving goal, it’s important to know the reason why you want to save $10,000 in a year.
Reflecting on why you want to save up $10,000 will help you keep pushing when you want to stop being disciplined and just blow all your money on a shopping spree.
An extra $10,000 in your bank account can help blaze your path to financial freedom. Maybe your emergency fund is low, and you want a bigger financial cushion to be able to fall back on. Or maybe you want to use the money to pay off credit card debt or student loans so you can be debt free.
Perhaps you need seed money to start a business, or you want to quit your job and travel around the world. This pot of savings could help you achieve financial independence.
Ten thousand dollars can also go toward a down payment for a home, a fabulous wedding or a new car. You can use it to complete a big home improvement project.
If you’re expanding your family, you could use that cash for baby expenses — or fertility or adoption costs. Or if you already have kids, $10,000 could go toward their college fund and future financial security.
Maybe you want to add an extra $10,000 to your investment accounts or retirement savings. Really, the options are endless.
What’s important is that you have a specific reason why you want to save $10,000 in a year, and that you reflect on that reason throughout your savings journey.
16 Ways to Save $10,000 in a Year
Now that you understand how to break up this financial goal and you have a firm reason for why you’re saving in the first place, it’s time to dig into all the steps that’ll help you save $10,000 in a year.
1. Use a Budget
To achieve an ambitious goal like saving $10,000 in a year, first you need full awareness of how much money you have coming in and how much you have going out.
Now is the perfect time to start a budget, if you don’t already have one. After you total up your monthly income, subtract all your monthly bills and expenses. Hopefully, you’re left with a positive number and not a negative one. That means you already have room in your monthly budget for saving money without taking any extra action.
However, if that number is low (or is negative) that doesn’t mean you won’t be able to meet your savings goal. The tips in this list will help you find ways to cut expenses, spend less and earn more, so you’ll have more money available to save.
2. Pay Yourself First
Too often, we save money by putting aside whatever cash we have left over at the end of the month or pay period. To truly win at saving, you have to prioritize it up front and pay yourself first.
Treat your savings mission like an important monthly bill you need to pay. At the beginning of the month or whenever you get paid, transfer money into your savings account before you have a chance to accidentally spend money. Better yet, set up an automated transfer so you don’t have to even think about it.
Remember, the goal is to be able to deposit $833.33 into your savings account each month, but if you don’t have room to do that with your current financial situation, don’t worry. Our tips on slashing your spending and boosting your income can help.
3. Use a Separate High-Interest Savings Account
To avoid tapping into your rainy day fund and derailing your goal, it’s best to put your savings in a separate account that you don’t regularly access.
A high-yield savings account is an account where you’ll earn compound interest on the money you save — at a higher rate than regular savings accounts or checking accounts.
If you typically get a large tax refund when you file your annual tax return, you’re withholding an excess of money from your paychecks. Some people refer to this as giving the government an interest-free loan.
By adjusting your tax withholdings, you can increase the amount of money in your paychecks — though you’ll no longer see those big tax refunds. Instead, you’ll be able to save that extra money each pay period to go toward your $10,000 goal.
Getty Images
5. Track Your Spending
As you’re on this financial journey, it’s important to track your spending on a daily or weekly basis. Don’t wait until the end of the month to look at your checking account and discover you’re overspending.
Cutting back on your biggest living expenses can have a significant impact on your savings goal. Housing, transportation and food typically make up the bulk of monthly expenses for the average household.
Save Money on Housing
Downsizing or moving to a cheaper place is a drastic move, but big moves produce big results. If you want to cut down on housing costs without changing your current address, think about taking in a roommate or renting out space in your home on Airbnb.
Save Money on Transportation
Going from a two-car family to a one-car family can save you a few hundred dollars each month. Refinancing your car payment or trading in your set of wheels for a less expensive ride can also save you a significant amount of money.
You can also save money on transportation by doing your own car maintenance and using these tips to save on gas.
And don’t forget about your car insurance. Instead of wasting your time hopping around to different insurance companies looking for a better deal, you can use a website called EverQuote to see all your options at once. It could save you up to $610 a year.
Save Money on Food
Yes, you’ve got to eat, but chances are you could adjust your spending habits around food.
If you eat out a lot, start meal planning so you have food available when you don’t feel like cooking. Instead of going to restaurants with friends, host potlucks at your house. Look up copycat recipes to make similar dishes to the ones from your favorite restaurants.
Reducing additional recurring bills will help you funnel money towards savings. Here’s how you can in everyday life on things like utilities, cell phone, cable, internet and gym membership.
Save Money on Utility Bills
Cut the costs of your energy bills by adjusting your thermostat, changing filters regularly and sealing drafty doors and windows. Taking shorter showers, using water-saving faucets and running the dishwasher instead of washing dishes by hand can help lower your water bill.
These free TV apps let you watch shows and movies at no cost. Or visit your local library to check out DVDs of your favorite films or television series.
Save Money on Internet Service
Switching to a lower-tiered plan is one way to cut costs on internet service, but maybe you don’t want to sacrifice your internet speed. Check out the deals competitors are offering and consider switching to a different internet provider. Sometimes just calling your current company and letting them know you plan to switch may sway them into offering you a nice discount.
Reduce your entertainment costs and fill up your free time with free things to do. Spend time outdoors. Attend free events or festivals in your city. Explore a part of town you don’t often visit. Host a movie marathon or karaoke night with your friends at home. There are plenty of things you can do without spending money.
9. Barter for Goods and Services
Rather than paying for things you want or need, consider bartering. For example, you can stop paying to get your grass cut and ask a neighbor to do it in exchange for free babysitting.
If you think creatively, you might be surprised at what you can barter. Go beyond your immediate social circle and arrange a bartering exchange with people on Nextdoor or a local Facebook neighborhood group.
10. Join a Buy Nothing Group
Buy Nothing Groups are another way to get free items you need or want — without having to engage in any kind of exchange. Everything is offered as a gift or charitable donation.
Craigslist and Nextdoor are other platforms where local people offer up free items to their neighbors.
Before buying something new, check if you can get it for free first. Sometimes you’ll find items in great condition.
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11. Make Saving Money Fun with a Savings Challenge
You can start saving money today by participating in one of these challenges:
No-Spend Challenge: Ban all extra spending and don’t buy anything for a month (or more) unless it is essential. Or you could choose to focus your spending freeze on a particular online purchases — like not buying any new makeup or video games for the next 90 days.
$5 Challenge: Anytime you receive cash back from a purchase, put any five dollar bills you receive into savings. If you tend to swipe your debit card rather than pay with cash, you could transfer $5 from your checking account to your savings account each time you use your debit card.
Pantry Challenge: Skip your regular grocery shopping trip and challenge yourself to making meals using only what is currently in your pantry, cupboards and freezer. You might have to get creative!
12. Save Any Financial Windfalls
On your journey to save $10,000, you ought to save any unexpected sum of cash that comes your way. If you get a bonus at work, a nice tax refund or $20 from a scratch-off lotto ticket, put that money right into your savings.
13. Enlist an Accountability Partner to Keep You on Track
Having an accountability partner — someone who knows your savings goal and your reason for saving $10K — can help you commit to spending less money. Choose a friend, family member or even an online buddy from The Penny Hoarder Community who will check in on your progress regularly and will send you words of encouragement so you’ll stay motivated.
14. Celebrate Your Wins
Saving $10,000 in a year is a big goal. You deserve to reward yourself as you make progress toward financial success.
Perhaps you want to celebrate your personal finance goal every month or whenever you reach a milestone, like when you’ve saved $2,500, then $5,000 and then $7,500.
Just make sure however you choose to celebrate doesn’t derail your goal of saving money. Having a glass of champagne or a spa day at home are nice treats that aren’t expensive.
15. Bring in Extra Income
Sometimes cutting costs isn’t enough to meet a savings goal. Making money is another way to get you to the $10,000 mountaintop.
A combination of reducing expenses and making money will make this savings challenge much easier. Just think: Instead of needing to save $833.33 each month, you could plan to save only $400 and challenge yourself to earn an extra $433.33 each month.
Pick up Extra Hours at Work
If you work an hourly shift, ask your manager if you can be scheduled for more hours. Ask co-workers to call you to pick up their shifts on days when they’re unavailable to work.
If you’re a salaried employee, ask your manager about taking on more responsibilities for a pay bump.
Ask for a Raise
If you have a great track record at work, now might be a good time to ask your employer for a raise. Not sure how to start that conversation? Read our guide on how to ask for a raise.
Get a Better Paying Job
Sometimes the best opportunity to boost your salary is by getting a new job. Check out this story about a woman whose salary jumped 39% in a little over a year due to job hopping.
You can even use a job offer from another company to get your current employer to counteroffer with a higher salary.
Take on a Side Hustle
You can earn several hundred dollars a month picking up a side hustle in addition to your main source of employment. Scan this list of the best side gigs to find your next money-making endeavor.
Earn Passive Income
Passive income is money you make without having to put in much effort or time aside from what it initially takes to set up the income stream. You can literally earn money while you’re sleeping.
Check out these passive income ideas so you can earn supplemental income to go toward that $10K goal.
16. Sell Items Around the House
Another way to earn extra money is to sell unused items that are lying around at home. It could be anything from clothing and kids’ toys to sports equipment and furniture. These websites and apps are great places to sell things online so you don’t have to organize a garage sale.
Frequently Asked Questions (FAQs)
Here are the answers to three popular questions that tend to come up when people consider saving $10,000 in a year.
How Much Money Do I Need to Save $10,000 a Year?
You don’t have to earn six figures to be able to save $10,000 in a year. You just need to spend $10,000 less than the income you take in.
If you break it down to a monthly basis, you need to have a surplus of $833.33 each month. From a weekly perspective, you need to save $192.31 a week.
A combination of cutting expenses plus earning more money can really help you meet this savings goal.
How Can I Save $10,000 in 100 Days?
In order to save $10,000 in 100 days, you’ll need to save an average of $100 a day. That’s more than three times the savings effort of saving $10,000 in a year.
While it’s definitely more challenging, it’s not impossible to meet this goal. However, you’ll likely need to boost your income significantly while operating on a bare bones budget.
For inspiration, learn how The Penny Hoarder’s senior writer Robin Hartill was able to save $12,000 in 12 weeks to pay off debt.
What is the Fastest Way to Save $10,000?
The fastest way to reach your savings goals is to couple reducing expenses with earning more money. You’ll be able to save quickly if you can greatly reduce or eliminate your biggest expenses — for example, moving in with relatives to save on housing costs.
If you’re able to significantly increase your salary by getting a big raise or starting a better paying job, you’ll be able to save up money fast as long as you don’t give into lifestyle inflation.
Nicole Dow is a former senior writer at The Penny Hoarder. Senior writer Rachel Christian contributed.
SoFi is the brainchild of a few Stanford University business students who wanted to tackle the student loan debt issue in the United States by making it easier for borrowers to refinance student loans.
The founders later expanded SoFi’s focus to include several financial products and services, including online banking through SoFi Money. Currently, SoFi Money is now branded as SoFi Checking and Savings thanks to the company’s approval for a bank charter in early 2022. Today, SoFi offers many banking services with great benefits for consumers with or without student debt.
SoFI Checking Account Features
When you sign up for SoFi Checking and Savings, you open both a checking and a savings account and both are FDIC-insured with access to the same benefits from SoFi. SoFi does not offer standalone checking or savings accounts.
SoFi Checking Account
Best for SoFi Loan or Invest Customers
Key Features
2.00% APY
Up to 15% cash back from local businesses
No-fee overdraft protection up to $50
SoFi Checking and Savings covers nearly everything you need in an online bank account, with no monthly maintenance fees, a network of 55,000 fee-free Allpoint ATMs, no-fee overdraft protection up to $50, an aggressive APY for both savings and checking accounts, a cash-back debit card and an early payday with direct deposit. It connects with other SoFi products, so you can use it to automate investments or make loan or mortgage payments.
SoFi Checking Account
Monthly fees
None
ATM access
Fee-free at 55,000 Allpoint ATMs
Customer service
24/7 Virtual chat, Email, Twitter or by phone with limited hours
Prime perk
Up to 15% cash back with local merchants
More About SoFi Checking
SoFi has many attractive features as a checking account. Coupling a SoFi checking account with its other SoFi money accounts like automated investing and student loan refinancing can help consumers get the most out of the SoFi ecosystem.
You can earn up to 15% cash back at participating local retailers when you pay with your SoFi debit card, but unlike other credit and debit cards, SoFi does not offer a general cash back option for all your purchases.
SoFi checking accounts come with these transaction limits that could make it tough to use as a primary spending account:
Withdrawal limits: $1,000 per day total, $150 over-the-counter cash withdrawal
Peer-to-peer transfers: $3,000 per month
Point-of-sale (cash register) transactions: 12 per day
Point-of-sale spend limit: $6,000 per day
Still, a SoFi money checking account gives you access to a debit card and gives you the option to order checks. Individual and joint accounts are available, which is rare among online banking accounts.
SoFi offers fee-free overdraft protection up to $50 as long as you receive at least $1,000 in direct deposits.
To open a SoFi Checking and Savings account:
Become a SoFi member by creating an account online or through the app with a valid email address.
Open a Checking and Savings account through your dashboard. You’ll need to enter your mailing address, phone number, birth date and Social Security number.
You can open an account with no minimum opening deposit and pay no account maintenance fees.
Set up direct deposit or a recurring transfer of at least $1,000 to qualify for overdraft protection.
More About SoFi Checking
SoFi has a lot of attractive features as a checking account. It might be most appealing to SoFi customers who use its other products, like automated investing and student loan refinancing.
You’ll earn up to 15% cash back at participating local retailers when you pay with your SoFi debit card, but SoFi doesn’t offer a general cash back option for all your purchases.
Unlike most checking accounts, SoFi accounts come with these transaction limits that could make it tough to use as your primary spending account:
Withdrawal limits: $1,000 per day total, $150 over-the-counter cash withdrawal.
Peer-to-peer transfers: $3,000 per month.
Point-of-sale (cash register) transactions: 12 per day.
Point-of-sale spend limit: $6,000 per day.
Still, your account gives you access to a debit card and gives you the option to order checks. Individual and joint accounts are available, which is rare among online banking accounts.
SoFi offers fee-free overdraft protection up to $50 as long as you receive at least $1,000 in direct deposits.
To open a SoFi Checking and Savings account:
Become a SoFi member by creating an account online or through the app with your email address.
Open a Checking and Savings account through your dashboard. You’ll need to enter your mailing address, phone number, birth date and Social Security number.
You can open an account with no minimum opening deposit and pay no account maintenance fees.
Set up direct deposit or a recurring transfer of at least $1,000 to qualify for overdraft protection.
SoFi Savings Account Features
When you sign up for SoFi Checking and Savings for your checking account, you’ll also get a free savings account. Here’s an overview of its savings features.
SoFi Savings Account
Best for Accessible Savings
Key Features
2.00% APY
No fees
No monthly withdrawal limits
A SoFi Checking and Savings membership comes with access to both a checking and savings account, and the perks apply to your balance on both accounts. When you sign up for direct deposit into either account, you’ll get up to 2.00% APY on both accounts.* And you can grow your savings automatically with goal-based vaults and round-ups from your debit card purchases.
SoFi Savings Account
Fees
None
Balances
No minimum or maximum
Monthly withdrawal limits
6
Prime perk
Up to 3.50% APY
More About SoFi Savings
Both SoFi Checking and Savings come with the same benefits so you don’t have to worry about which bucket your money is in.
You’ll earn 3.50% APY on a total balance across accounts as long as you sign up for direct deposit (with no minimum deposit requirement). If you don’t use direct deposit, you’ll earn 1.20% APY on all balances.
The downside to having your checking and savings seamlessly connected is that your savings are easily accessible, which can make it easy to dip into that account instead of letting it sit and grow.
The upside: The account structure makes your money more accessible through SoFi than in a traditional savings account, so you can build your savings knowing you can get to the money anytime if you need it.
Cash in SoFi Checking and Savings individual accounts is FDIC insured up to $250,000 and cash in SoFi Checking and Savings joint accounts is FDIC insured up to $500,000 through SoFi Bank, N.A.
More About SoFi Savings
Both of your accounts with SoFi Checking and Savings get the benefits, so you don’t have to worry about which bucket your money is in.
You’ll earn 2.00% APY on a total balance across accounts as long as you sign up for direct deposit (with no minimum deposit requirement). If you don’t use direct deposit, you’ll earn 1.00% APY on all balances.
The downside to having your checking and savings seamlessly connected is that your savings are easily accessible, which can make it easy to dip into that account instead of letting it sit and grow.
The upside: The account structure makes your money more accessible through SoFi than in a traditional savings account, so you can build your savings knowing you can get to the money anytime if you need it.
Cash in SoFi Checking and Savings is FDIC insured up to $250,000 through SoFi Bank, N.A.
Pro Tip
Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.
Other SoFi Products
The most attractive benefit to signing up for a SoFi money account online is becoming a member of the greater SoFi money ecosystem.
SoFi members are anyone who uses a SoFi product, like Checking and Savings. As members, consumers get exclusive benefits like member-only financial planning events and member rate discounts on SoFi loans.
Personal Loans: Apply for a personal loan for things like student loan refinancing, credit card consolidation or home improvement. SoFi only offers fixed-rate personal loans for amounts between $5,000 and $100,000 with fixed rates as low as 7.99% APR. You can check the rates you may qualify for by creating a SoFi account and entering the amount you want to borrow. Checking rates with SoFi will not affect your credit score.
Mortgages: Take out a home loan or refinance an existing mortgage through SoFi with as little as 3% down. You’ll save $500 on mortgage processing fees for being a SoFi member. SoFi also facilitates home equity lines of credit, allowing members to access up to 95% or $500,000 of their home’s equity.
Investing: SoFi Invest is a brokerage account that lets you invest in stocks, ETFs and cryptocurrency right through the app. You can set up automated investing and let SoFi experts choose your portfolio for you or you can choose what to invest in. SoFi also offers Roth, traditional, and SEP IRAs to help you save for retirement. You can fund your SoFi investment account using a SoFi Checking and Savings account or an external checking or savings account.
Credit Card: The SoFi World Elite Mastercard is designed to help you achieve financial goals along with other SoFi products and accounts. You’ll earn 2% cash back if you redeem it to save into a SoFi savings account, invest through SoFi Invest or pay down a SoFi loan or mortgage. Or earn 1% cash back if you redeem the reward as a statement credit.
Insurance: Through SoFi Protect, you can be matched with affordable life, auto, homeowners and renters insurance. In most cases, you can apply and sign up online without speaking to an agent or facing a medical exam.
Career Services: SoFi members can work one-on-one with a complimentary career coach to pave a path toward career and financial success. Career coaches provide guidance on career transitions, networking, building a resume and LinkedIn profile, negotiating, and personal branding.
Financial Planning Resources: Members can make a free appointment with SoFi financial planners to get professional financial advice on anything from basic money management to retirement planning. SoFi also provides resources to educate you on debt, lending, money management, and investing, plus SoFi provides calculators to help you plan for borrowing and repaying debt.
SoFi Checking and Savings Fees
SoFi boasts no fees across their services and they mean it.
No third-party ATM fees
No monthly fees, like an account maintenance fees or minimum balance fees
No overdraft fees up to $50
No foreign transaction fee
No fee for a replacement card
No bill pay fees
SoFi covers foreign conversion fees
Fee structures are subject to change, but you can take comfort in knowing the lack of fees at SoFi is one of the most attractive features of online-only banking.
SoFi Customer Experience
SoFi offers online-only services, so you won’t find a brick-and-mortar SoFi branch or even any SoFi-brand ATMs.
Cash Management
Customers do all their cash management through the app or website, plus nationwide at SoFi’s network of 55,000 fee-free ATMs. SoFi Checking and Savings account holders have access to these basic checking account features:
Deposits: Set up direct deposit from your paycheck or recurring transfers from another bank account to automate your savings and grow your account balance. You can make cash deposits at participating Green Dot vendors with limits of $500 per transaction, $1,000 per day, $3,000 per week, and $5,000 per month.
Mobile check deposit: Still get a paper paycheck (or a birthday check from your aunt)? Deposit it from anywhere using the SoFi app on your smartphone or tablet with a camera.
Cash withdrawal: Use any ATM to take out cash when you need it with your SoFi debit card. You’ll pay no fees at more than 55,000 Allpoint ATMs nationwide and SoFi reimburses out-of-network ATM fees.
Digital payments: Link your SoFi checking account to PayPal or Venmo to receive payments.
Bill pay: Pay bills up to $10,000 per transaction directly from your SoFi checking account.
Mobile App
As an online-only institution, SoFi’s suite of digital tools is optimized for user ease and stacked with features like easy account transfers, bill pay and even budgeting tools.
SoFi banking happens primarily through the SoFi app, which is free to download for smartphones and tablets. Customers give the app 4.8 out of five stars in the Apple App Store and 4.0 out of five stars on Google Play.
The SoFi app lets you sign up for and access all SoFi products including Checking and Savings and free budgeting and money tracking tools.
Through the app, you can:
See your checking and savings account balances and transaction history.
Deposit money with mobile check deposit.
Transfer funds to and from a linked financial institution or between accounts.
Freeze and unfreeze your debit card.
Chat with customer support.
Monitor your TransUnion VantageScore credit score.
Connect other financial accounts to track your spending and savings in one place.
Access SoFi’s other financial products and services.
Customer Service
SoFi customer support is available through email, Twitter or by phone with limited hours.
Phone number: (855) 456-7634, available Monday through Thursday 5 a.m. to 7 p.m. and Friday through Sunday 5 a.m. to 5 p.m. Pacific.
Chat 24/7: Log into your account online or through the app.
Email: SoFi only provides an email for home loans: [email protected]
Is SoFi Right for You?
SoFi Checking and Savings could be a perfect replacement for your primary checking or money market accounts, plus a good fit for short-term savings and managing money you want to invest through SoFi.
SoFi could be a fit for you if:
You need access to SoFi’s other money products including loans, investing, career advice and free financial planning.
You have short-term savings goals such as vacation savings, home down payment, buying a car or holiday shopping
You receive a regular paycheck via direct deposit
You prefer to do your banking online or through a mobile app
SoFi might not be a fit for you if:
You prefer in-person service from local bank tellers or loan agents
You’re frequently or primarily paid in cash
You have no need for additional products and services like mortgages, debt consolidation, student loan refinancing or financial planning
You have a high volume of daily transactions, like if you travel or shop a lot
You need small business banking
Your savings goals are mostly long term, like retirement or college savings
Pros and Cons of Sofi Checking and Savings
We’ve rounded up pros and cons about SoFi Checking and Savings to help you decide if this personal finance company is right for you.
Pros
No minimum opening deposit
No maintenance fees
No overdraft fees
Free ATM access in-network
Slick app with a lot of features
High-yield accounts offering up to 3.50% APY
Cons
Restricting transaction limitations
No business banking options
No brick-and-mortar banking options
Frequently Asked Questions (FAQs) About SoFi
Here are our answers to some common questions about using SoFi Money.
Social Finance, Inc. (SoFi for short) is based in San Francisco and has been operating in the personal finance space since 2011. It is highly respected in the financial industry and loved by customers for its mobile-first and social approach to managing money.
The company maintains industry-standard security measures to protect users’ personal and financial information, including bank-level encryption and two-factor authentication.
The money in your SoFi accounts is FDIC insured up to $250,000 for individual accounts and up to $500,000 for joint accounts through SoFi Bank, N.A.
There are hardly any fees with most SoFi products. With a SoFi Checking and Savings account, there are no ATM fees, monthly maintenance fees, overdraft fees or foreign transaction fees. You won’t even pay to replace a stolen or lost debit card or to pay bills through the app, and SoFi covers any foreign conversion fees.
How Long Does SoFi Take to Deposit Money?
When you sign up for direct deposit into your SoFi checking account, you’ll have access to your money up to two days before your normal payday. SoFi releases the funds into your account as soon as the payer initiates the deposit, rather than waiting for the scheduled payday.
Yes, as of January 2022, SoFi operates a nationally chartered bank, SoFi Bank, N.A., a member of the Federal Deposit Insurance Corporation (FDIC). SoFi Technologies, Inc. also operates Social Finance, Inc., a financial technology company that produces the SoFi platform and connects members with third-party financial services and other benefits. Members who use SoFi Money, the predecessor to SoFi Checking and Savings, may still have money held by partner banks until transitioning to the new account.
SoFi is not compatible with Zelle. However, it offers its own peer-to-peer payments option that lets you send money to anyone in your address book. Recipients who also use SoFi will get the money instantly and others will get it in one to two business days.
*SOFI CHECKING & SAVINGS APY DISCLOSURE
SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 2.00% APY is current as of 08/12/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Contributor Dana Miranda is a Certified Educator in Personal Finance®. She’s written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and a column for Inc. Magazine. She founded Healthy Rich to publish stories that illuminate the diversity of our relationships with work and money. Freelancer Kristin Jenny contributed to this report.
We know how incredibly easy it is to rack up credit card debt.
More than 50% of Americans carry a credit card balance, with 30% carrying more than $1,000 of debt or more month to month, 15% carrying $5,000 or more and 6% carrying $10,000 or more, according to a recent GOBankingRates survey. The ongoing pandemic and rising inflation have made it even harder for Americans to avoid going into credit card debt, with 45% increasing their overall debt since the start of the pandemic.
But here’s the tricky thing about credit cards: They only benefit you when you’re building credit and receiving perks — but not when you’re paying interest. If you’re paying a lot of interest on your balances, credit card companies are making money off of you.
Your cards are using you, not the other way around.
With average APRs (annual percentage rates) on new credit cards north of 16%, according to LendingTree, paying them off is a smart move. You can do it. And it’ll be worth it.
Tina Russell/The Penny Hoarder
5 Ways to Eliminate Credit Card Debt
Before you start your journey to becoming debt free, try to stop using your credit cards altogether until you can use them without putting yourself in financial risk. Though the specifics will vary based on your situation, we only recommend using credit cards if:
You don’t have any debt outside of a mortgage or student loans. (Mortgages and student loan debt are almost impossible to avoid nowadays.)
You have an emergency fund with three to six months of expenses saved. This is how much money you’d need to survive during that time period, assuming you have no income reaching your bank account.
You can pay off your credit card debt in full every month — not just minimum payments.
However you do it, make paying off your credit cards — and learning to use them responsibly — a high priority.
First, determine how much credit card debt you have. You can do this using a tool like Credit Sesame, a free credit monitoring service.
Then choose your weapons! We’ll go over five different methods, from debt consolidation loans to repayment strategies to settlement, for paying off your credit card debt.
1. The Debt Avalanche Method
Instead of looking at your debt in its entirety, we recommend approaching it bit by bit. By breaking your debt down into manageable chunks, you’ll experience quicker wins and stay motivated.
Using the debt avalanche method, you’ll order your credit card debts from the highest interest rate to the lowest. You’ll make the minimum payment on each of your credit card accounts, and any extra income you have will go toward the highest-interest card.
Eventually, that card will be paid off, and you won’t have to worry about that monthly payment anymore. Then, you’ll attack the debt with the next-highest interest rate, and so on, until all your cards are paid off.
2. The Debt Snowball Method
With the debt snowball method, you’ll order your debts from the lowest balance to highest, regardless of the interest rates on the cards. You’ll make the minimum payment on each of your credit card balances, and any extra income will go to the credit card with the smallest balance.
Starting with the smallest balance allows you to experience wins faster than you would with the avalanche. This method is ideal for people who are motivated by quick wins, but it has a downside: Those who choose it could end up paying more interest over the long term.
Here’s an example of how each method would work if you’re paying off four credit cards of varying balances and interest rates.
$654 with 0% interest
$5,054 with 15% interest
$2,541 with 23% interest
$945 with 17% interest
If you followed the avalanche method, you’d pay off card No. 3 first, followed by No. 4, No. 2 and No. 1. If you followed the snowball method, you’d pay off card No. 1 first, followed by No. 4, No. 3 and No. 2.
Choosing the right method comes down to deciding whether you’d rather get quick results or save money on interest. We encourage you to check a debt calculator yourself, so you can calculate what each method would cost you.
3. The Balance Transfer
If you have good to excellent credit (typically a FICO score of 670 or above) and can feasibly pay off your debt within a year, a balance-transfer credit card is a great option. Balance-transfer credit cards can save you money on interest charges by letting you transfer the balance of a card with a high interest rate to a card with 0% interest.
Most of these cards offer 0% interest for 12 to 18 months with no annual fee. They generally have a 3% to 5% balance-transfer fee, but you can easily find balance transfer cards with no fee. Higher credit scores help borrowers to qualify for a credit card with better terms.
Think a balance transfer card is the right move for your finances? We’ve put together a list of the best balance transfer cards currently available.
4. Take out a Loan
You might look at getting a loan to consolidate and refinance your debts.
If you get a loan with a lower interest rate and pay off your credit cards, that lower rate could potentially save you thousands of dollars in interest.
This is a realistic way to pay off credit card debt if you currently have little or no money to put toward it.
Let’s look at two options for debt consolidation here: A personal loan or a home equity loan.
Personal Loan
Online marketplaces will allow you to prequalify for a personal loan without doing a hard inquiry of your credit, so if you want to shop around, head there first. Shopping for personal loans online does not affect credit scores.
A personal debt consolidation loan is a good idea if you have decent credit and can manage the repayment plan that accompanies the loan. Whereas credit cards offer revolving credit, meaning you can continue to borrow and just make minimum payments, a debt consolidation loan will have a predetermined repayment plan with a set schedule of payments.
A debt consolidation loan is similar to a balance transfer credit card, as you are consolidating all of your debt into one place. The personal loan route is more attractive, however, because rates are typically lower for debt consolidation loans.
A good resource for finding personal loans here is Fiona, a search engine for financial services, which can help match you with the right personal loan to meet your needs. It searches the top online lenders to match you with a personalized loan offer in less than a minute.
Home Equity Loan
If you own a home with equity, you have three ways to borrow money against the value of your home: a home equity loan, home equity line of credit or a cash-out refinance.
With a home equity loan, the lender gives you your money all at once, and you repay it at a fixed interest rate over a set period of time.
With a home equity line of credit, you’re given a limit to borrow. Within that limit, you can take as little or as much as you need whenever you want.
With a cash-out refinance, you refinance your first mortgage with a mortgage that’s slightly more money than your current one, and pocket the difference.
For homeowners, these options will most likely offer the lowest interest rates. But they’re also the riskiest, because your home is the collateral — something you own that your lender can take if you don’t pay off the loan.
5. Debt Settlement
The world of debt collections and creditors can be confusing, intimidating and sometimes even illegal. There’s a common misconception, for example, that someone can take your house or you can go to jail for not making your credit card payments. But credit card debt is unsecured debt, meaning no one can put you in jail or take your house if you don’t pay it.
If you’re being harassed by creditors or have circumstances that make your debt repayment confusing, don’t give up before finding out your options for assistance.
Debt Management Program
With a debt management program, a credit counseling company will handle your consolidation in hopes of getting you a better interest rate and lower fees. You’ll be assigned a counselor, who will set up a repayment and education plan for you. This program is specifically for unsecured debt, like credit cards and medical bills.
A debt management program pays your creditors for you to ensure you stay current on your debt payments. Your credit score may even improve during the program. But if you miss a monthly payment, you can be dropped, and you’ll lose all the benefits you gained.
Debt management plans usually don’t reduce your debt, but they may reduce your interest rates by as much as half or extend your payment timeline to make paying your debt more manageable.
Credit Card Debt Settlement
If you’re in more than just a temporary season of financial instability, and you can’t see yourself affording the amount of credit card debt you owe, debt settlement is an option, though we regard it as a last resort.
Debt settlement reduces the amount of debt you owe, but it will significantly lower your credit score and negatively impact your credit report.
The process isn’t as simple as debt consolidation. You have to convince every creditor that if they don’t settle with you, they probably won’t get anything at all. So, of course, during that time you won’t be making any payments — while interest and late fees accrue.
You can do this on your own, but most people seek the help of a debt settlement company.
Like a debt management program, a debt settlement firm will negotiate debts on your behalf, and the company will make lump-sum payments to creditors while you make monthly payments to the debt settlement company.
Pro Tip
Be careful when seeking help with debt settlement. While some companies are legitimately there to assist you, others take your money and do very little to help your situation.
While you’re paying the debt settlement company, you’ll still be delinquent with any creditors the company hasn’t yet negotiated with, meaning you’ll still get calls from those creditors.
And there’s no guarantee the company will be successful. If it isn’t successful in negotiating, you’ll still be responsible for the full debt amount, plus any extra interest that accrued.
If the company is successful, you’ll have to pay the settlement amount in full. Then in April, you’ll owe taxes on the amount forgiven.
The settlement company will also charge you up to 25% in fees on top of the settlement.
How one Penny Hoarder paid off $12,000 in debt in just 12 weeks. She shares her top tips so you can get out of debt too.
Bankruptcy
Bankruptcy is another last resort. The two major types for individuals are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy allows you to completely discharge all your debts except student loans in four to six months by liquidating your assets. A trustee gathers and sells all of your nonexempt assets to pay off your debt. Those assets can include property that’s not your primary residence, a vehicle with equity, investments or valuable collections.
Those who earn a high income or have significant assets typically choose Chapter 13, which allows you to keep certain assets while still repaying some of the debts. It’s a long, arduous process that doesn’t guarantee to resolve your debt. It can be reversed if your income increases, and it wrecks your credit.
Both bankruptcy options have negative long-term ramifications on your credit. But if you’re out of options, bankruptcy gives you a chance to get your debt under control and get creditors and debt collectors off your back.
Getty Images
How to Pay off Credit Card Debt Fast
If you want to become debt free quickly, here are some ways to pay off credit cards fast:
Up Your Monthly Payments
Make two payments per month instead of one. Most credit card companies use an average daily balance to compute interest charges. Instead of making monthly payments of $400 toward a balance, make two payments of $200, one at the middle of the month and one at the end. You’ll lower the average daily balance so you’ll pay less interest. Some credit card users even advocate for paying off credit card balances every week; a weekly reminder in your calendar is all it takes.
Try to Get a Lower Rate
Ask your credit card companies for lower interest rates. It’s worth trying at least once for each credit card you have. Research competitor cards similar to yours for which you qualify and that offer better rates — then share those with your credit card company to see if they’ll match it.
Knocking four interest percentage points off a $10,000 balance, for example, can save you hundreds of dollars in interest annually. Add those savings to your debt repayment budget!
Get the Debt Reduced
Sometimes you can convince a credit card company to forgive your debt — or at least part of it. After all, these companies want to retain you as a customer, so they may be more open to negotiation than you might think. If you’re in serious financial trouble, explain the situation to the card issuer. Offer to pay a portion of the balance owed as payment in full.
For most of us, though, there’s no quick answer.
How Much Will Paying Off Credit Cards Raise Your Score?
You might be asking yourself, “How much will my credit score go up if I pay off my credit cards?” It turns out that credit card usage has a huge impact on credit scores.
If you spend too much of your overall limit or miss payments, you’ll hurt your score. If you keep your balances low and regularly make your minimum monthly payment on time, your score will increase over time.
Just because you have available credit doesn’t mean you should max out your credit cards. Your credit utilization, which tells the credit bureaus how much of your available credit you’re using, shows whether you are sensible with your borrowing.
Keeping your credit utilization at or under 30% is ideal. That means on a credit card with a $10,000 limit, you wouldn’t want your balance to exceed $3,000.
Credit utilization accounts for a whopping 30% of your score. Other factors affecting your score include payment history (35%), credit history length (15%), credit mix (10%) and new credit (10%).
Looking for ways to increase your score outside of paying down your credit card debt? Penny Hoarder senior editor Robin Hartill shares 10 moves you can make in 2023 to improve your credit.
Credit card issuers make it so easy to get in the habit of overspending. The introductory APR offers, new credit card sign-up bonuses and cash back offers are designed to get us using cards more frequently and thinking less about what items cost.
So if you ever want to be debt-free, you need to change the way you use credit cards.
Former Freelance Editor Janet Keeler, freelancer Tim Moore, former Staff Writer Jen Smith and Senior Writer Mike Brassfield contributed to this post.
If you feel like someday you’ll be buried alive in a collapsing pile of Amazon boxes, you’re not alone. Lots of online shoppers (especially during the holiday season) end up digging out from masses of corrugated cardboard boxes or find themselves playing box Jenga in the garage.
And sure, you can reduce your online shopping or recycle those Amazon boxes through most curbside recycling programs. But for those with a zero-waste preference, the best option might be to reuse all that cardboard. Here are some things to consider before you kick cardboard boxes to the curb.
Should You Recycle or Reuse Amazon Boxes?
The American Forest & Paper Association reports that in 2021, U.S. consumers recycled 91.4% of cardboard boxes or OCC (old corrugated cardboard) produced domestically. However, it’s worth considering how many resources it takes to both create and recycle all that cardboard.
While Amazon hasn’t cornered the market on using cardboard boxes, the online retail giant:
What to Do With Amazon Boxes
Before you break down the dozen Amazon boxes that arrived this week, here are suggestions for putting that corrugated cardboard to good use.
Store, Sell or Giveaway Amazon Boxes for Moving
It’s pretty much a rule of modern life. Someone is always in need of more moving boxes. Moving is already a stressful time, so stock up and store a few empty boxes or give them to someone in need on Facebook marketplace.
Ship Your Own Stuff in Amazon Boxes
You can reuse Amazon boxes for your own shipping needs. Before you head to the post office or local UPS location, make sure you’ve followed instructions for how to strip down and reuse a cardboard box for shipping.
Check the box for damage. Ensure your box is sturdy, strong and hasn’t been cut or had the basic structure compromised.
Stick to standard box sizes and recommended weights. If you’re shipping with USPS, they recommend not exceeding 130 inches total or 70 pounds.
Remove all barcodes and labels. The post office doesn’t mind if the Amazon logo is still visible, but any other identifying info should be removed, especially a shipping label that might confuse scanners.
Use Empty Amazon Boxes as Gift Boxes
Some things weren’t meant to be kept under wraps. Keep a few spare cardboard boxes on hand, so you can neatly tuck away hard-to-wrap items and box them up later for gifts.
26 Creative Ideas for Reusing Cardboard Boxes
Now that we’ve covered the basics, let’s dive into the creative world of upcycling cardboard boxes. From compost to cat condos, there’s something in an Amazon box for everyone.
Compost
Garden seedling tray
Garden kneeler
Weed killer
Bird feeder
Cardboard costumes
Forts
Piñatas
Toy storage
Planes, trains and automobiles
General arts and crafts
Greeting cards
Coloring or art supply box
Painting drop cloth
Party decor
Storage containers
Pantry organizer
Drawer organizer
Sewing box
Coaster
Magazine storage
Wall art
Drip pan
Cat scratcher
Dog busy box
Cat condo
5 Ways to Reuse Amazon Boxes in the Garden and Outdoors
Save boxes while the sun shines and use them to create a healthier garden or to control pests and feed wildlife.
1. Compost
Carbon-rich cardboard is completely acceptable to compost, although there is some concern about whether Amazon uses biodegradable inks on their boxes. Tear the box up into small pieces and toss it in the compost bin. Remove the shipping label but keep the black tape — it’s compostable, too.
Pro Tip
You can also use your Amazon box as a compost container inside, a gardening method that’s very popular in Japan.
2. Garden Seedling Tray
While you might house your budding plants in yogurt containers or egg cartons, Amazon boxes make for great trays to organize and carry seedlings or store packets of seeds for the winter.
3. Garden Kneeler
You could pay a pretty penny for a cushy kneeler on Amazon that’ll save your knees but get trashed in a season. Or you could be frugal and reuse an Amazon box because who doesn’t love free?
4. Weed Killer
If you’ve got a spot outdoors where those pesky weeds just won’t take a hint, lay a broken-down Amazon box on the ground and starve them of sunlight. Just beware that it’ll kill everything else under there, too, so steer clear of your prized flowerbeds.
5. Bird Feeder
These boxy feeders are for the birds. Literally. Let the kids lend a hand fashioning upcycled bird feeders from cardboard boxes, twigs, twine, birdseed and a little nut butter.
5 Ways to Reuse Amazon Boxes for the Kids
If you’ve ever seen kids derive more joy from the box than the gift, you’ll understand how a box can become a treasured toy.
6. Cardboard Costumes
Start brainstorming, and you’ll end up with a pretty long list of fun ways cardboard can become costumes. Helmets, shields, robots, jet packs. Your kiddos will be glad you kept a few boxes handy for some rainy-day inspiration.
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7. Forts
The bigger the Amazon box, the more fun your kids will have making it into a fort. While large appliance boxes are great for this, you can also encourage kids to break down Amazon boxes into flat pieces of cardboard and tape them together to make walls and roofs.
8. Piñatas
It’s not a party unless someone brings the piñata. If that’s not a saying, it should be. You can make your own — like this DIY popcorn box piñata — out of an old Amazon box. Just add some scissors and a little papier-mache magic.
9. Toy Storage
If you’ve got a set of toys with smaller pieces that keep getting lost, gather them into an Amazon toy box that you can stash safely in a closet. Think railroad sets, Legos, stuffed animal collections and more.
10. Planes, Trains and Automobiles
An Amazon box is just a vehicle for little imaginations. With a marker and some construction paper and scissors, you can turn boxes into cars, planes, trains or even rockets like the one in this Popular Mechanics tutorial.
5 Ways to Reuse Amazon Boxes for Crafting
If you’re crafty, chances are you’ve put at least one Amazon box to good use on a DIY project. Here are a few reasons to make those cardboard boxes staples in your craft closet.
11. General Arts and Crafts
Cardboard is a centerpiece of many art projects, so having a supply handy along with plenty of paper products is essential. From providing backup for fragile displays to making frames or shadow boxes, cardboard is an artist’s best friend.
12. Greeting Cards
Corrugated cardboard might not be your first choice for creating greeting cards, but start thinking outside of the envelope. Amazon boxes can become standup examples of 3-D cards or giant cards to convey special messages.
13. Coloring or Art Supply Box
Keeping supplies organized can be a real challenge for artists and crafters. Enter a DIY art organizer or a coloring box outfitted with all your supplies, made out of an old Amazon box. You can even add dividers by inserting additional pieces of cardboard cut to size.
14. Painting Drop Cloth
Art is messy work. Fortunately, Amazon boxes can double as drop cloths to save your carpet and furniture. Simply collapse or cut to make sure the mess ends up on the cardboard and not on your floor.
15. Party Decor
Skip the pricey supplies and get the party started with some cardboard cutout decor. Think signs, letters, banners and even life-size displays. You name it, cardboard can do it. All you need is paint and a little creativity.
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8 Ways to Reuse Amazon Boxes for Home Organization and Decor
Stop Amazon box creep in its tracks with these creative ideas for reducing clutter around the house by reusing cardboard.
16. Storage Containers
An easy solution for organization problems is to use your old Amazon boxes to store household items. Just remember that you don’t have to go basic with your storage boxes. Think decorated boxes that you’d be fine with keeping on display. You can paint, paper or cover boxes with fabric or contact paper to create a fun look.
17. Pantry Organization
Tame that pantry chaos with a few boxes designed to cut down on clutter. Stash all your baking supplies or everything you need for popcorn on movie night in one handy box that’s within easy reach.
18. Drawer Organizer
Paying for drawer organizers seems silly when you have the perfect solution for DIY dividers or inserts. Cut up some cardboard boxes and make little cubbies and trays for kitchenware, clothing and even bathroom necessities.
19. Sewing box
Grab that glue gun because this DIY sewing box is mostly free and entirely impressive. Glue circles of corrugated cardboard together, apply paint and even fashion a circular lid with a little hardware and some ingenuity.
20. Coasters
If you’re tired of seeing furniture stained by water rings, grab some shipping boxes and start tracing and cutting to craft custom coasters. Many coasters are made out of cork, but flat cardboard that’s free of staples and tape shouldn’t scratch your furniture.
21. Magazine Storage
Why pay $20 for a set of magazine storage boxes when you already have Amazon boxes you can spruce up for the same purpose? This tutorial for magazine storage utilizes USPS priority mail boxes, but you can also use Amazon boxes of a similar size.
Under the sink or in the garage, cardboard boxes can save floors, shelves and other surfaces from damage. Simply break it down and slide it under wherever you’re likely to experience a disaster — or need to protect a surface — and let the cardboard catch the drips.
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3 Ways to Reuse Amazon Boxes for Pets
We’d be remiss if we didn’t mention that Amazon boxes can be used as more than just hiding places for pets.
24. Cat Scratcher
Give your cat a place to practice claw maintenance with a DIY corrugated cat scratcher. It can be as simple as stacking and gluing pieces of cardboard together or creating a more complicated design like this circular cardboard cat scratcher.
25. Dog Busy Box
Your dog is always interested in sniffing around boxes for a reason. For most dogs, it’s an instinctual foraging habit that’s built into their breed. Give them the satisfaction of a DIY dog busy box that’ll provide extra enrichment and stave off doggie boredom.
26. Cat Condo
Last but not least, what’s better than using a cardboard box to start your own colony of cat condos? Meow doesn’t seem to cover these feline fortresses and towers fashioned entirely out of cardboard boxes with cutouts and tubes.
How to Recycle Amazon Boxes
Sometimes the best solution for all those Amazon boxes is to kick them to the curb as fodder for your local recycling program. Make sure you’re aware of which parts of Amazon’s packaging can be recycled and how to sort each type into the recycle bin where it belongs.
For instance, the paper mailers with the bubble wrap inserts should be tossed in the trash, but Amazon cardboard boxes are recyclable in their entirety, including that trademark black packing tape.
Kaz Weida is a senior writer for The Penny Hoarder.
The year is almost over, and you’re no doubt rushing to wrap up holiday shopping, get ready to travel or meet a final work deadline.
The last thing you need is another item on your to-do list, but a little bit of financial reflection and planning is essential before the calendar turns to 2023.
Making these end-of-year money moves will help you handle whatever comes your way next year.
6 Money Moves to Make Before the End of the Year
1. Set Your Financial Goals for the Coming Year
When you think ahead to the end of 2023, what would make you feel accomplished? What if you cut your credit card debt by half? What if you were able to boost your savings account to four — or even five — figures? Or build up that emergency fund you may have had to dip into this year?
Think about what you want to celebrate at the end of 2022, and then set some goals to help you get there.
For instance, “become financially secure” isn’t a SMART goal because it’s ambiguous.
On the other hand, “save $5,000 in my emergency fund by the end of 2023” would be considered SMART because it’s specific, measurable and timely.
By thinking through your financial goals in this way, you’ll have more clarity about what you’re trying to do, and that will give you a better sense of how to allocate your resources and energy in the year to come.
2. Review Your Spending Over the Past Year (and Be Honest About It)
We know this isn’t going to be fun. In fact, it’s probably going to be pretty tedious.
Here’s a shortcut: If you use your bank or credit card app, you likely have access to graphs that show how much of your income went to specific spending categories, like food, entertainment and household expenses.
However, you can reconcile your spending without digital tools.
Why is this so important? It’s how to find out where you’re actually spending your money. You might think you don’t have a single penny to spare and that’s why tumbleweeds are rolling through your savings account, but tracking your expenses can reveal a different reality, one where you’ve actually spent quite a bit of money on, say, scented candles rescued from the clearance end caps at Target.
If you’re having trouble achieving your financial goals and can’t figure out why, knowing exactly where your money goes is the first step to bringing your actions in line with your goals.
Once you’ve tracked your expenses, you’re ready to move on to the next step.
3. Make a Budget That Works — Finally
Listen, we know a lot of people don’t bother with a budget.
But you really, really do need a budget. This post outlines five good reasons you should have a budget, including finally breaking the paycheck-to-paycheck cycle and identifying where you’re overspending.
Accounts that aren’t yours. It’s possible you have accounts on your credit report that actually belong to someone with a similar name. Do you, Karen Smith, really want to have the overdue Dillards’ charge card belonging to Karen Smythe on your credit report?
Accounts you didn’t realize were delinquent. Maybe your dentist’s office repeatedly sent the bill to the wrong address until the unpaid bill wound up in collections, leaving a giant black mark on your credit report, and you weren’t aware of any of this until your application for a car loan or mortgage was turned down.
Outdated or incorrect information about your accounts. Perhaps you paid off a loan last year that’s still showing up as unpaid, or your credit card balance is listed as being much higher than it’s ever been. These could significantly ding your credit score, and those three little numbers hold a lot of power over your ability to access credit in the future.
All of these errors can be disputed by contacting the appropriate credit bureau. Here’s how to do it.
5. Make a Plan for Retirement and Stick to It
We don’t have to tell you that a lot of people have not saved up much for retirement.
Instead of becoming yet another statistic, why not make 2023 the year you finally take retirement seriously?
But if you’re years aways from retirement, you should decide which kind of retirement account you want to set up. If your employer offers a 401(k), make sure you’ve signed up for it. And if your employer offers a 401(k) match, contribute at least enough to take full advantage of it. After all, that match is part of your compensation. You’re entitled to it!
If you don’t have access to a 401(k), you’ve still got options, including IRAs and Roth IRAs. This post can help you when trying to decide among them.
Once you’ve got your retirement account set up, contribute to it on a regular basis. It doesn’t matter if you can only put in $25 a month — it all adds up.
6. Celebrate Your Wins!
While we’ve been talking about how to do better going forward, we also know you probably accomplished some things to be proud of in 2022.
Take a few minutes to think about what you’ve done in the past year that you’re proud of, and let it sink in.
And now remember that feeling throughout the coming year, especially when you encounter setbacks (because you inevitably will). Trust that if you stick to your plan, you’ll experience that sense of satisfaction again this time next year.
Molly Moorhead is managing editor at The Penny Hoarder. Deputy editor Tiffany Wendeln Connors updated this post.
Inflation is hitting everyone where it hurts — our wallets.
The cost of everyday essentials like food and gas is eroding away the buying power of everyday Americans. Paychecks don’t stretch as far. Grocery bills hurt more.
It can feel impossible to get ahead.
Money saving tricks, both big and small, can make a difference.
If you’re looking to add some breathing room to your budget — despite 40-year high inflation — our 33 top money saving hacks can help.
Groceries
1. Ask What Day Your Grocery Store Marks Down Items
Grocery stores usually discount items that are close to expiring on a specific day of the week. Asking a store associate what day and time they mark down items is a super savvy way to score discounted meats, bread and veggies.
2. Skip Grocery Delivery and Go With Pickup Instead
Grocery delivery is incredibly convenient — and expensive. Tips and fees on an Instacart order can easily add $20 to $30 to your grocery bill.
If you’re trying to break the grocery delivery price trap, try pickup instead.
Opting for grocery curbside pickup is a much cheaper alternative that’s still fast and easy. It’s also a smart way to stick to your grocery list because you won’t be tempted to buy random extras in the store.
It’s also often easier to find the cheapest price per unit if you can see all available products on a single page instead of scouring the shelves.
Lots of stores offer free or very cheap pickup options, including BJ’s Wholesale Club, Aldi, Kroger, Target, Albertsons and Walmart.
3. Buy Frozen and Canned Vegetables and Fruits
Frozen and canned goods last longer, have similar nutritional value as fresh produce and cost much less.
“Buying things like broccoli, carrots, peas and cauliflower frozen or canned is the best way to get a longer shelf life and reduce food waste,” said Jessica Ayala, a full-time banquet chef in Orlando, Florida. “Be honest about the fresh foods you’ll actually eat in a reasonable amount of time.”
4. Buy Meat on Sale in Bulk and Freeze It
Pricey cuts have penny pinchers across the country ditching meat. Going meatless a day or two a week and turning to cheaper alternatives, like beans and lentils, can be a great way to cut costs.
If you aren’t quite ready to give up your carnivorous ways, look for larger sizes of meat (think 3 pounds or more of ground beef, family packs of chicken breasts) to go on sale.
Buy a couple packages at a time, break them down into 1-pound packages and freeze them.
Here are some other inflation hacks to save money on meat at the grocery store.
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5. Meal Prep (Seriously, At Least a Little)
Meal prepping doesn’t need to be labor intensive and scary. Here’s how to start meal prepping so you’ll actually stick with it. And if you need more inspiration, check out these hacks for budget meal planning.
6. Watch for Holiday Sales
Keep an eye out for holiday deals — like when canned beans go on sale for Cinco de Mayo or BBQ sauces during Fourth of July.
Load up on discount candy the day after holidays like Valentine’s Day, Easter and Halloween.
While you’re at it, check out this month-by-month guide on the best time to buy almost everything, like computers in August and swimsuits in September.
7. Avoid Drinking Your Money
Drink water instead of buying soda or juice. Nix the bottled water and go with filtered water or tap instead. Make coffee at home instead of grabbing Starbucks.
Make an alcohol budget and stick to it — or ditch the booze entirely if you want to save big bucks.
8. Buy (Certain Things) in Bulk at Warehouse Clubs
Buying everyday essentials in bulk is a solid way to save money. Just make sure to shop smart if you’re buying in bulk.
While it can be tough to fork out membership fees to warehouse clubs like Costco and Sam’s Club, some offer specials that allow you to join at a lower price. Check Groupon and other coupon sites to score a cheaper annual membership.
You can also try online bulk suppliers like Boxed, which delivers orders to your door without charging annual membership fees.
9. Shop Seasonally
The best way to save money on fresh produce is to buy fruits and vegetables when they’re in season.
Serve dinner in smaller portions on smaller plates. It makes you more aware of what you’re eating and less likely to throw away scraps of uneaten food. It’s also better for your waistline.
11. Check High and Low on the Grocery Shelves
Next time you go to the grocery store, check the top and bottom shelves. Grocery stores know that most people only look at the middle area, so that’s where more expensive items tend to be.
12. Check the Cost Per Unit Price
Each item at the grocery store has a corresponding tag on the shelf. In the top left or right corner, you’ll find the “cost per unit price.” This is the best way to truly compare prices, especially when buying in bulk.
13. Check Out Local Food Pantries
Asking for help can be hard, but food pantries provide a legitimate way to get food for free. If you’ve experienced a job loss or change in income, it makes sense to contact your local food pantry to see what’s available instead of going hungry or taking on debt.
You can also call United Way’s 211 service to find other local resources.
14. Freeze Your Bread
Bread will get moldy, like surprisingly moldy in no time during the summer.
“Kitchens and restaurants use this trick everyday to reduce food waste and save money,” Ayala said.
From hot dog buns to whole multigrain loafs, you can prolong the shelf life of bread by as much as four to six months by freezing it.
Another great bread hack?
“Crush up stale crusty bread, add some seasoning and make your own bread crumbs you can cook with later,” Ayala suggested.
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15. Embrace That Crock-Pot Life
If you’re trying to feed a family, cooking in bulk with a slow cooker can save you tons of money and time.
Making big batches of soup — and freezing some for later — is also a good way to utilize things in your kitchen before they go bad. (Remember: Try to extend the shelf life of everything in your kitchen.)
16. Purchase Versatile Ingredients
For example, pick a protein like chicken and learn to prepare it in a way you like. One day you can pair the chicken with a salad, the next day add it to a rice and beans (or quinoa) bowl, and the next day chop the chicken into strips and add it to a cheese quesadilla.
Another option is steak and potatoes one night, steak fajitas another night and a steak and bean rice bowl another.
An easy breakfast staple, like oatmeal, can cost less than 10 cents a serving and you can change up the toppings.
Or for an even leaner budget, skip breakfast altogether if it works for your health and diet. You may even see some health benefits, according to intermittent fasting research.
18. Reorganize Your Fridge and Freezer
The average American household wastes about 31.9% of its food — a whopping $1,866 per household per year, according to a 2020 study published in the American Journal of Agricultural Economics.
We’ve all been guilty of it. Leftovers get shoved to the back of the fridge, veggies get gross in the crisper. We get it.
Going through your fridge — and pantry and freezer — is a great way to take inventory, so you’re not buying duplicates or letting good food go to waste.
While you’re at it, watch some videos on YouTube from professional organizers who offer low-cost ways to rearrange your fridge so food is more visible and accessible.
Explore public transportation options in your area and plan out errands with your partner.
And remember: Ditching your car isn’t a forever commitment. You can pocket the savings for a couple years, then reevaluate your budget in the future.
23. Cancel Your Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal.
The truth is airline tickets are much more expensive than they were in 2020, and prices aren’t likely to come down anytime soon.
Certain budget airlines are still offering decent deals if you’re flexible on your schedule and destination — just keep an eye out for hefty baggage fees and other costs.
If you’re catching a flight, save money at the airport by bringing an empty water bottle and packing some snacks. You can also rent out your car using apps like Turo and TravelCar to make some money while you’re away.
25. Start Walking and Biking
Using an e-bike is a super frugal — and healthy — way to save money on your daily commute, especially if you’re replacing a car.
Plus there are a surprising number of apps, like A Healthy Wage and Sweatcoin, that will pay you to exercise — a win win.
Shopping
26. Check Out Cash-Back and Rebate Apps
There’s lots of cash-back and rebate apps out there that can add some jingle to your budget. Many reward you for scanning your receipts while others deposit cash back to your account when you make a purchase at a participating store with a linked card.
There are also browser extensions like Capital One Shopping and coupon sites that can help you save money on everyday purchases.
27. Cut Back on Pet Expenses
You love your pet like family. But if your furbabies are draining your wallet, it’s time to cut back.
Here at The Penny Hoarder, we admire a frugal spirit. And when times are tough, finding smart ways to repurpose everyday household items just makes sense.
Like using Windex to clean your makeup brushes or vinegar to clean your dishwasher — genius-level inflation hacks right there.
29. Threaten To Break Up With Your Phone, Internet, Cable and Insurance Providers
Sometimes they’ll give you a lower rate to keep you as a customer. Try asking for the retention department when you call.
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Entertainment
30. Be Smart About Your Streaming Services
Multiple streaming services can almost cost as much as a cable TV subscription.
To minimize the bite, take advantage of free trials and free TV apps.
Another smart way to save? Ask friends or family if they want to share streaming accounts. Set up profiles under a shared account and then Venmo or Cash App your friend an agreed upon amount each month for sharing.
31. Cancel Subscriptions and Non-Essential Memberships
Monthly subscriptions and memberships add up quickly. Five bucks here, $8 dollars there. Before you know it, you’re spending $80 on random subscriptions you may not really use.
Trying to cut costs fast? There are apps that help you manage your subscriptions — and some even help you cancel a subscription or negotiate better pricing.
32. See If You Qualify for Discounts Through This Federal Program
Millions of Americans now qualify for discounted internet access thanks to an expanded federal program called the Affordable Connectivity Program (ACP).
Qualifying households get a $30 monthly voucher toward their high-speed internet bill and a one-time $100 voucher to purchase a laptop or desktop computer.
Some internet providers are also offering discounted plans in collaboration with the ACP, which can help stack savings on savings.
There’s a couple ways to qualify. If you already receive Medicaid, a Federal Pell Grant (for the current award year), SNAP benefits, WIC, a veterans’ pension or survivors benefits — or one of these six other programs — then you qualify.
The other way to qualify is by your income: A single-person household can’t earn more than $27,180 a year (hello, college students and retirees), while a family of four can’t exceed $55,500 a year. It’s 200% of the federal poverty line.
The cost of dinner and drinks is a real mood killer these days.
No one likes the idea of staying home after being cooped up for two years, but when times are tough, it makes sense to explore cheap date night ideas. (Playing sexy MadLibs with a bottle of cheap wine could be surprisingly entertaining).
Finally, it can be hard, but don’t let inflation kill your holiday fun. In fact, here’s 29 free things to do during the holidays that will get your mind off your money — at least for a little bit.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
With a powerful winter storm expected to bury half the country in snow, a bitterly cold Christmas season is in store for most of the United States.
As blasts of arctic air send temperatures plummeting, here’s something else that’ll send a shiver down your spine: Heating your home will be noticeably more expensive this winter.
In fact, Americans are seeing the largest spike in their heating bills in more than a decade. But we’ve got eight tips to help you lower your bill. With wicked cold temperatures breathing down our necks, we’ll list these tips from the simplest to the most complicated.
The average cost of heating a home this winter is expected to rise $177 to $1,202, a 17% increase compared with last winter, according to a recent report from the National Energy Assistance Directors Association (NEADA).
It’s the second winter in a row with significant price increases for heating, according to NEADA. The organization’s members are the state directors of the federal Low Income Home Energy Assistance Program, which helps poor households with energy costs.
Why the increase? Mainly it’s because hot temperatures over the summer sent the price of natural gas soaring to a 14-year high as Americans cranked up their air conditioners to beat the heat. NEADA says 90% of our heating and cooling costs are tied to the price of natural gas, either directly or because natural gas is used to create electricity.
What Can You Do About High Heating Bills?
In the short term, with freezing weather on our doorsteps, there are a few things you can do right now. If you’re a renter or you’re a homeowner on a budget, we have relatively cheap ways to cut back on your heating bill.
Over the long term, if you’re a homeowner, the best way to reduce your heating bills is to improve your insulation or even invest in better windows, although both of those plans cost money.
Here are some options to consider, in order from the simplest to the most complicated:
1. Close Off Unused Rooms
This is our simplest tip.
If you have a room that you use just for storage, exercise or guests, close the door and shut the vents in that room when it’s not in use. Otherwise, you’re just unnecessarily heating an unused space.
2. Block Out Drafts From Doors
The bottoms of exterior doors are a major culprit for heat loss in the winter. If you can see daylight creeping in from beneath your door or feel a cool breeze, you should take steps.
You can temporarily improve the situation by rolling up a towel and blocking the bottom of the door.
If you’re feeling more ambitious, try a draft guard. It’s basically two pool noodles in a pillow case. Adding a bit of rice or dried corn makes the guard heavier and a better sealer.
3. Stop Eating Out
Of course you can save money on meals by eating at home instead of dining out, but in the winter, baking and cooking can have the added benefit of reducing your heating bill.
When you cook in your oven and on the stovetop, heat emanates into your kitchen and surrounding rooms. Crack the oven open after turning it off to let the remaining heat filter out into your home.
4. Turn Down the Heat
An easy way to lower your heating bill in the winter is to run your heat at a lower temperature.
Obviously, you need to keep your place warm enough to prevent your pipes from freezing, but if you can stand the chill, turn down the thermostat to the low to mid-60s. Bundle up in sweatshirts, thick socks and blankets to stay warm — and don’t forget to cover up your pets, too.
5. Use a Space Heater
OK, so you’ve turned the heat down, closed off unused rooms and bundled up in blankets, but you’re still feeling chilly. A small space heater might do the trick — and you can get one for less than $30 on Amazon or at a home goods store.
Running a little bit of heat in one small area is more affordable than heating your entire living space.
6. Add Some Weather Stripping
Weather stripping for doors and windows is key to retaining heat in the winter (and keeping it out in the summer). If your windows and doors are letting too much heat out, replace the weather stripping.
It’s a minor cost (something you can buy for under 15 bucks), but it could save you big-time on heating bills.
7. Insulate Your Windows
Big, single-pane windows let the cold in, but you can find temporary ways to keep the heat from leaking out. You can do this by hanging thick curtains in front of the windows, but an even better solution (or a solution to combine with the curtains) is purchasing a window insulation film kit. You can get a kit to insulate 10 windows for about $25.
When incorrectly installed, your window will look like it’s been covered in shrink wrap.
8. Insulate Your Attic
Your attic could be allowing warm or cool air to escape, driving up your power bills. Look around your attic and basement for blackened insulation, which is a sign of air traveling through it.
Adding insulation to your attic can significantly lower your energy costs. So insulation can eventually pay for itself.
The Department of Energy’s website has in-depth instructions for how to insulate your home, although we’d recommend hiring a professional to do it.
Yes, heating your home is going to be more expensive this winter. But you’re not helpless to do something about it. A little strategic thinking and maybe a little elbow grease will help you cut your heating bill.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
Living in a region with blisteringly cold winters tends to make you somewhat of an expert on winter driving.
But skilled winter driving means more than just knowing what to do if you slide on ice or how to properly clear your windshield. It means staying on top of important vehicle maintenance, like checking exterior lights, having your battery tested and regularly monitoring your tire pressure.
Just as importantly, it means packing a winter emergency kit to keep in your car throughout the season. The best way to guarantee your safety in the event you become stranded in your car during a winter snowstorm — besides not driving in said storm — is to pack a winter car emergency kit.
10 Items to Include in a Winter Emergency Car Kit
You likely have many items at home that you can use for your car’s winter emergency kit. The rest can be purchased relatively cheaply.
Tina Russell and Chris Zuppa/The Penny Hoarder
1. Phone Charger
Phones have become one of the most important resources in an emergency, so ensuring you can keep it powered is essential.
In addition to a charging cord, I also recommend purchasing a power bank (aka portable charger) in case your car cannot provide the power to charge your phone.
While most phones include flashlights, it is handy to have a flashlight that you can use to look under the hood or car if you are attempting to repair an issue yourself. Just make sure it has fresh batteries.
Cost: $10
3. Multi-Purpose Radio
If your vehicle loses all power and you can’t charge your phone, a battery-powered or crank radio might be your only source of emergency information.
Radios come cheap these days, but you can also skip the cost of a flashlight and phone charging power bank with a multi-purpose hand crank radio on Amazon.
Cost: $20
Tina Russell/The Penny Hoarder
4. Hats, Gloves and Blankets
You should always bring a coat with you if traveling in the winter, but it can’t hurt to keep additional winter gear in the trunk.
If you have extra hats, gloves, scarves, socks and blankets at home, just grab those. If not, buy some secondhand at a thrift store, since these are meant to be for survival, not style.
Cost: $0 to $20
5. Foldable Shovel
If you lose control and drive off the road, you might find it challenging to get your vehicle out of the snow. Having a small shovel, preferably one that folds up, can be handy in such a scenario.
Shovels aren’t your only saving grace if you get stuck in the snow. Road salt can provide much-needed traction.
You can purchase an affordable 5-pound bag to keep in the back of your car. Kitty litter or sand will also do the trick.
Cost: $10
7. Snacks and Water
If you are stranded for several hours or longer, it’s important to stay hydrated and keep your energy up. Pack a case of bottled water to store in the trunk if you can afford the space, and include a bag of high-protein snacks that don’t expire quickly, like nuts and protein bars.
Cost: $15
Tina Russell/The Penny Hoarder
8. Flares and Jumper Cables
You should have flares and jumper cables in your car year-round, but this is especially important in the winter when it gets dark earlier and when car batteries are more susceptible to dying. You can find a highway flare kit and jumper cables at your neighborhood auto store or online.
Cost: $25
9. First Aid Kit
Another year-round staple is a first aid kit, which should include bandages, tweezers, scissors, tape, antiseptic cream, painkillers, bug bite cream and burn cream. You can find compact first aid kits online that contain travel-sized essentials or assemble your own.
Cost: $15
Tina Russell/The Penny Hoarder
10. Tools
Having some basic tools, including an ice scraper, at your disposal can come in handy during a true winter emergency. A multi-tool, like a Swiss army knife, can be especially useful.
Cost: $25
Timothy Moore is a contributor for The Penny Hoarder. Deputy editor Tiffany Wendeln Connors updated this post.
It’s time to wrap up your holiday shopping. A few of your friends and family members are hoping for a brand-new game console, but prices are high and may be out of your budget. Luckily, we’re no strangers to the game market and have a few alternatives that may help your wallet.
While the PlayStation 5 and Xbox Series X/S are the big consoles of the season, there are a few other ways to bring the joy of video games to your household. We even have a method for playing top-tier Xbox games without buying an Xbox console.
Here are our top alternatives to an expensive video game console that kids and adults will still love to play.
Xbox Cloud Gaming With Game Pass
One of the most incredible advancements in video gaming is cloud gaming. Rather than purchasing a game console, what if you could stream video games via the cloud the same way you stream movies from Netflix or Hulu?
With Microsoft’s Xbox Game Pass Ultimate, you gain access to Xbox Cloud Gaming, enabling you to play video games using your favorite devices, wherever you are — as long as you have a stable internet connection.
You’ll need to sign up for Xbox Game Pass Ultimate, then use a supported device, such as an Android smartphone, Windows 10 PC, iPhone or iPad, to stream games. Once logged in, you’ll have access to nearly every game in the Xbox Game Pass library.
You’ll also need a supported controller, such as an Xbox Wireless Controller, but other third-party options are available from companies such as 8BitDo, Logitech, PowerA, Razer, SteelSeries and Turtle Beach.
If buying a $500 Xbox console or PS5 is out of reach, consider signing your loved one up for a $14.99-a-month subscription. (The first month is only $1.) It’s a fraction of the price of a game console and includes over 100 top-tier games at no additional cost.
Other streaming video game services include Sony PlayStation Plus Premium, Amazon Luna and Shadow. Our testing found that Xbox Game Pass Ultimate provides the best overall value, with many of the year’s most popular games.
Apple TV and Other Streaming Devices
Apple’s streaming device, the Apple TV, is another excellent way to access a library of games. Apple TV 4K is significantly cheaper than any mainstream game console today, starting at $129.
You can play many games on Apple TV with the included remote, but we suggest picking up a dedicated game controller for a more immersive experience. Compatible controllers include Microsoft’s Xbox Wireless and Sony’s DualShock 4 controllers.
If you have an iPhone or iPad, you can bring many of the games you purchased on Apple TV or play via an Apple Arcade subscription with you on the go. While Apple TV isn’t home to many top-tier games, it still includes excellent options to keep you entertained.
Other streaming devices, such as Amazon Fire TV and Roku, also provide access to games, but in our testing, we found Apple TV to have the most advantageous library. If you subscribe to Apple Arcade, new games are added every week.
Purchase a Previous-Generation Console
We know that those on your list may want the latest consoles available, but there has been no better time in history to purchase a previous-generation console. You can get a nearly identical experience and spend significantly less.
Take, for example, Microsoft’s previous-generation console, the Xbox One. Available on the secondhand market for around $100 to $150, it is priced lower than even its cheapest current-generation game console cousin.
Comparing the Xbox Series X/S and the Xbox One, we found the previous console can also play the majority of games available on Xbox Series X/S consoles. The graphics won’t be as impressive, but Xbox One will still offer an immersive experience.
When it comes to Sony, the company still offers its PlayStation 4 console directly — it has yet to stop selling it. While Sony has a few more games exclusive to the PlayStation 5, the older PS4 still offers an impressive library of games.
If you decide to buy a PlayStation 4, consider the used market. While Sony does continue to sell PS4 consoles directly, they are significantly more expensive (and even harder to find) than buying a used model.
Previously, we have seen past-generation consoles left behind relatively quickly, but this time, the Xbox One and PlayStation 4 offer up a lot of game power with an impressive library that is continuing to build.
Nintendo Switch Lite
We know that the Nintendo Switch Lite is technically a mainstream game console, so you may wonder why we put it on this list.
The Nintendo Switch Lite is Nintendo’s most affordable model of the Nintendo Switch. The regular Nintendo Switch costs $299, while the Switch OLED with an improved screen costs $349. But the Switch Lite comes in at under $200.
If you know someone asking for a Nintendo Switch, but the price tag is too high, then the Switch Lite is an excellent alternative. Switch Lite plays nearly all the same games as the other models but saves you some cash.
What makes the Switch Lite cheaper? The primary difference is that, unlike its more expensive siblings, the Switch Lite cannot be attached to a television for a big-screen experience — you’ll need to play on the built-in display.
Nintendo began offering the Switch Lite as a more price-effective option and a model best suited for playing games on the move. It features a slightly smaller 5.5-inch touchscreen display, a smaller overall footprint and a battery life lasting up to seven hours.
Go Retro With Retro Gaming
Retro video gaming is all the rage, and finding a local retro video game retailer isn’t too tricky. One of the retailers we spoke with even told us that specific consoles, such as Nintendo’s GameCube, have increased in popularity thanks to YouTube.
Retro gaming isn’t for everyone — some kids may see it as outdated junk — but for those who don’t mind tapping into a time that has since passed, it can be a compelling option. Just know that while consoles can be cheap, many games retain a high retail value.
Some popular retro game consoles include the Nintendo GameCube, Nintendo 64, Nintendo SNES and the Sega Genesis. The original PlayStation and Xbox are also attractive options for retro gaming enthusiasts.
In addition to brick-and-mortar stores, you can find consoles via online marketplaces, including Facebook Marketplace and eBay.
Michael Archambault is a senior writer with The Penny Hoarder specializing in technology.
