Get ready to discover Michigan, a state where college life is as varied as the wildlife wandering the Great Lakes. We’re about to embark on a tour of Michigan’s top college towns, where academic achievement meets exciting community life.
Whether you’re an undergrad hunting down the perfect apartment in Ann Arbor or a career academic searching for your forever home in Grand Rapids, you’ll find everything you need and more in the Mitten State.
Ann Arbor is home to the University of Michigan, known for its exceptional academics. The College of Engineering stands out with programs in aerospace, biomedical, and mechanical engineering. The medical school is top-notch, attracting future doctors and researchers from all over. Additionally, the Ross School of Business offers comprehensive programs in finance, marketing, and entrepreneurship, preparing students for the corporate world.
The University of Michigan and Ann Arbor share a strong bond. Many local businesses collaborate with the university, providing internships and job opportunities for students. The Michigan Medicine Health System, a major employer in the area, partners with the university on research and clinical training.
Apartments near University of Michigan | Houses for rent near University of Michigan
Michigan State University is the pride of East Lansing, especially noted for its agricultural and business programs. The College of Agriculture and Natural Resources offers cutting-edge research in sustainable farming and food science. The Eli Broad College of Business is renowned for its programs in supply chain management and hospitality management. MSU’s College of Communication Arts and Sciences is also highly regarded, with strong programs in journalism and media studies.
MSU’s connection with East Lansing is evident in various community partnerships. The Wharton Center for Performing Arts puts on professional productions and student performances. Local farms collaborate with the university’s agricultural programs, providing students with practical experience in sustainable practices.
Apartments near Michigan State University | Houses for rent near Michigan State University
Western Michigan University is known for its standout programs in aviation and engineering. The College of Aviation provides comprehensive training in pilot and technical operations, often collaborating with major airlines. WMU’s engineering programs, including electrical and mechanical engineering, are highly respected. The Irving S. Gilmore School of Music is another highlight, offering a range of programs from performance to music therapy.
WMU has deep roots in Kalamazoo, fostering numerous community connections. The College of Aviation partners with local airports and flight schools, giving students hands-on experience. Engineering students often engage in projects that benefit the local infrastructure and businesses. The university’s musical events, like the annual Gilmore Piano Festival, draw students and community members, promoting a shared appreciation for the arts.
Apartments near Western Michigan University | Houses for rent near Western Michigan University
Eastern Michigan University is a cornerstone of Ypsilanti, with highly regarded programs in education and business. The College of Education is known for producing skilled and prepared teachers and administrators. The College of Business offers diverse programs in accounting, management, and marketing. EMU’s nursing program also receives high marks, providing rigorous training for future healthcare professionals.
EMU’s relationship with Ypsilanti is strong. The College of Education partners with local schools to provide student teaching opportunities, enhancing the quality of education in the area. The College of Business connects with local startups and businesses through the Michigan Innovation HQ.
Apartments near Eastern Michigan University | Houses for rent near Eastern Michigan University
5. Marquette – Northern Michigan University
Population: 20,629 | Student population: 7,214| Average 1-bedroom rent: $850
Northern Michigan University is primarily known for education, nursing, and biology. The School of Education offers specialized programs in special education and early childhood education. The nursing program is highly rated, with state-of-the-art simulation labs. NMU’s biology department is known for its focus on environmental science and wildlife biology.
NMU’s connection to Marquette is integral to the town’s identity. The nursing program collaborates with local healthcare providers, enhancing practical training and community health. Biology students often work with local nature reserves and environmental organizations, gaining hands-on experience in conservation and research. The university’s Center for Rural Community and Economic Development helps drive local initiatives, fostering economic growth and sustainability.
Apartments near Northern Michigan University | Houses for rent near Northern Michigan University
Grand Valley State University has a significant presence in Grand Rapids. The Seidman College of Business offers robust programs in finance, entrepreneurship, and supply chain management. The College of Health Professions includes top-tier programs in physical therapy, physician assistant studies, and nursing. GVSU’s engineering program is also respected, with specializations in product design and manufacturing.
GVSU’s ties to Grand Rapids are extensive. The health sciences department collaborates closely with local hospitals and clinics, providing students with valuable clinical experience. Business students often intern with downtown companies, integrating their academic learning with practical work.
Apartments near Grand Valley State University | Houses for rent near Grand Valley State University
Central Michigan University is particularly well known for its strong education and journalism programs. The College of Education offers comprehensive training for future teachers and administrators. The School of Broadcast and Cinematic Arts is well known for its programs in journalism, broadcasting, and film production. Health sciences, including physical therapy and physician assistant programs, are also popular.
CMU’s partnership with Mount Pleasant is evident. The College of Education works with local schools to provide student teaching and professional development opportunities. Journalism students often help cover local news, producing content for the university and local media outlets.
Apartments near Central Michigan University | Houses for rent near Central Michigan University
Michigan Technological University is renowned for its engineering and computer science programs. The College of Engineering offers top-rated programs in mechanical, electrical, and civil engineering. The computer science department is known for its research in cybersecurity and software engineering. Michigan Tech also excels in environmental science, with a focus on sustainability and conservation.
Michigan Tech’s connection to Houghton is strong and multifaceted. Engineering students often work on local infrastructure projects, applying their skills to real-world challenges. The computer science department collaborates with local tech companies, providing students with internship and job opportunities. Environmental science students partner with nearby nature reserves and research facilities, contributing to conservation efforts and gaining practical experience.
Apartments near Michigan Technological University | Houses for rent near Michigan Technological University
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 250,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Fraud risk seen on mortgage applications increased in the latter end of 2023, but compared to a year earlier, the rate edged downward.
Risk grew 2.7% between the most recent third and fourth quarters, according to Corelogic’s latest research. The software and data provider’s mortgage application risk index score came in at 127 in the fourth quarter, compared to 123 three months earlier. On an annual basis, though, risk slid by 1% from 128.
While the threat increased, the rate of growth narrowed from 4.3% three months earlier, when it also posted flat movement on an annual basis.
The slowing pace of threats occurred despite the larger proportion of purchases versus refinances. Purchase loans are traditionally higher risk compared to refinances, according to Bridget Berg, principal, industry solutions at Corelogic.
In the past several quarters, purchases have garnered a share of over 70%, according to the company’s data, while the Mortgage Bankers Association regularly finds them accounting for at least 60% of new weekly loans.
Corelogic’s research found incidents of income falsification, pointing to a step in underwriters may want to focus on.
“The current trend centers around borrower income being inflated by a new, high-wage job after previously being self-employed,” Berg wrote in a research post .
The development adds some credence to findings earlier this year from Mphasis Digital Risk, which determined that only a minority of consumers would unequivocally refuse to put misleading information on a lending application. While some said they might consult a lawyer first, over 16% said they would agree if such a recommendation was offered to them.
Despite the potential willingness of consumers to be dishonest, Mphasis also said it did not observe higher incidences of fraud at the time.
Similarly, Aces Quality Management said income and employment-related errors remain the most common type of defect found on mortgage originations in the third quarter last year, with a rate of over 23%. But that number decreased from 31% earlier in 2023.
Of the 100 largest metropolitan areas tracked by Corelogic, application fraud risk levels exceeded the national average by at least twofold in two cities. Miami came in with a score of 310, while Bridgeport, Connecticut posted a reading of 254. Poughkeepsie, New York, followed at 231.
New Orleans and the region comprising New York City and Newark, New Jersey, rounded out the top five with readings of 222 and 217, respectively. The top 15 cities most at risk of fraud remained the same between third and fourth quarters.
Inside: Learn what 35 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $35 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is my $35 an hour take-home pay compared to others in my industry? Is $35 an hour paycheck a good salary?
First of all, this is a wage you can actually live on and should be able to thrive and reach your financial goals. Annually $35 an hour should help you to breathe easier with your finances. You might wonder how can I start to increase my hourly wage to $40, $45 or $50 per hour?
Many of the hourly jobs that pay over $35 an hour do not require a degree, which is great news! Those paid on a salary basis tend to have a college degree and do not even calculate their hourly wage.
In this post, we’re going to detail exactly what $35 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$35 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $35 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $35 = $72,800
$72,800 is the gross annual salary with a $35 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours.
Then, multiply the hourly salary of $35 times 2,080 working hours, and the result is $72,800.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
At this salary, you are just below $75000 salary which is above the average $60000 salary threshold. Also, you are slowly coming closer to a $90000 salary.
Work Part Time?
But you may think, oh wait, I’m only working part-time. So if you’re working part-time, the assumption is working 20 hours a week at $35 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $35 times 1,040 working hours, and the result is $36,400.
Part Time (20 hours) = $36400
How Much is $35 Per Month?
On average, the monthly amount would average $6,067.
Annual Amount of $72,800 ÷ 12 months = $6,067 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
This helps a financially stable person manage their finances without a bunch of stress. And if you are making above the average income worker and still stressing about money, then you need to learn to drastically cut your expenses.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $3,033.
How Much is $35 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $35 = $1,400 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $700.
How Much is $35 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,400 and double it.
$1,400 per week x 2 = $2,800
Also, the other way to calculate this is:
40 hours x 2 weeks x $35 an hour = $2,800
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,400.
How Much is $35 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $35 per hour = $280 per day.
If you work 10 hours a day for four days, then you would make $350 per day. (10 hours x $35 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $140.
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$35 Per Hour is…
$35 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$72,800
Yearly Salary (50 weeks)
$70,000
Monthly Salary (173 hours)
$6,067
Weekly Wage (40 Hours)
$1,400
Bi-Weekly Wage (80 Hours)
$2,800
Daily Wage (8 Hours)
$280
Net Estimated Monthly Income
$4,632
**These are assumptions based on simple scenarios.
Paid Time Off Earning 35 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $72,800 per year.
This is the same as the example above for an annual salary making $35 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $35 times 2,000 working hours, and the result is $70000 per year.
40 hours x 50 weeks x $35 = $70,000
You would average $280 per working day and nothing when you don’t work.
$35 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $72,800
Federal Taxes of 12%: $8,736
State Taxes of 4%: $2,912
Social Security and Medicare of 7.65%: $5,569
$35 an Hour per Year after Taxes: $55,583
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$55,583 ÷ 2,080 hours = $26.72 per hour
After estimated taxes and FICA, you are netting $26.72 an hour. That is $8.28 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $25 an hour wage is much different.
$35 an Hour Salary
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $35.01-35.99.
If you make 70000 a year, learn how much house you can afford.
This is super helpful if you make $35.23 or $35.85.
You are probably wondering can I live on my own making 35 dollars an hour? How much rent or mortgage payment can you afford at 35 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $35 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated $35 an hour was $26.72 after taxes. That would average $4,631.90 per month.
According to the Cents Plan Formula, here is the high-level view of a $35 per hour budget:
Basic Expenses of 50% = $2316
Save Money of 20% = $926
Give Money of 10% = $463
Fun Spending of 20% = $926
Debt of 0% = $0
For someone making over $70K gross annually, this should be completely doable assuming there is no debt involved. The risk most people find themselves in is lifestyle creep and keeping up with the Joneses.
You can be strategic with your saving and investing to quickly become the millionaire next door. Then, that will allow a level of time freedom you have never experienced.
To further break down an example budget of $35 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $35 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$576
Savings
15-25%
$1031
Housing
20-30%
$1456
Utilities
4-7%
$243
Groceries
5-12%
$425
Clothing
1-4%
$27
Transportation
4-10%
$243
Medical
5-12%
$303
Life Insurance
1%
$21
Education
1-4%
$33
Personal
2-7%
$91
Recreation / Entertainment
3-8%
$182
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1435
Total Gross Income
$6,067
**This is a sample budget. You can adjust your categories based on your personal situation.
Can I Live off $35 Per Hour?
At this $35 hourly wage, you are making more than $70K per year. Slowly climbing to 6 figures and you should live comfortably on this annual salary.
This is well over the median income of $60,000 salary. That means you should be able to increase your savings percentage each year and live better than 80% of the world.
The question is, are you? Or are you straddled in debt? Struggling and living paycheck to paycheck?
Unfortunately, too many people are still struggling even though they are making nearly 4x the minimum wage.
Should living on $70K be doable? Absolutely.
Don’t be caught in a tough situation. You need to live below your means. If not, you are wasting too much of your hard-earned cash.
Can you truly live off $35 an hour annually?
Just like any wage… you must spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle.
Be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am blessed to make more than the average worker. So, I must live on that paycheck or find ways to start diversifying my income into multiple streams and start investing. Then, I am going to give back to what helped me to get where I am today.
In the next section, we will dig into ways to increase and diversify your income, but for now, is it possible to thrive on $35 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $35 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Annual Salary
This right here is the most important section of this post.
Even though, you are making good money. You might have reached a maximum ceiling of income in your field. You may need to change companies.
More often than not, you need to find ways to diversify your income. One type of income will get you far in your personal finance journey, but to truly see faster progress you need multiple streams of income.
Finding ways to increase your monthly paycheck by $500 or $1000 will add up over the year.
At this point, you want to look for at least a $1 increase to $36 an hour, $37 an hour, $38 an hour, $39 an hour, or $40 an hour.
1. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
2. Earn Passive Income
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation of struggling financially to becoming financially stable.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
Related Reading: How Fast Can you Make Money in Stocks? The Real Answer
3. Become a Freelancer
When you make $35 an hour, you are good at your job. You know what you are doing and people are willing to pay you for it.
Pick up side jobs and spend your free time as a freelancer.
This is one of the best ways to make extra money without a lot of upfront effort or costs.
I know plenty of people who make a living as freelance writer.
The options are endless if you are willing to think outside of the box.
4. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
If that does not pan out, then look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $35 an hour isn’t worth it for you if you’re not able to enjoy life; maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
5. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
Tips to Live on $35 an Hour
In this last section, grasp these tips on how to live on $35 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $35 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $35 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $35 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross annual income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
4. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money and set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $35 an Hour
You can find plenty of jobs that pay $35 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
$35 Per Hour Annual Salary
In this post, we detailed 35 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 35 dollars an hour annually…
$78,200
Very close to earning a $80000 salary. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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Below is my Freecash review.
What Is Freecash?
Freecash is a website that helps you make money online. It’s as simple as playing a game or doing a short survey. Freecash gives you easy tasks to do on your computer or phone, and each one earns you coins.
It takes on average 17 minutes and 16 seconds for a user to earn enough for their first cashout, which is pretty quick!
When you sign up for Freecash, you’ll see different offers from companies they work with. These offers include:
Filling out surveys
Trying new apps
Watching videos
Playing games
Freecash was started in 2020 by Almedia Online LLC, and it’s grown a lot since then, with millions of people downloading it. Lots of people go on Freecash every day, and with just a little work, they can make extra money.
There are currently 11,709 different ways to make money on Freecash right now, and you can earn up to $225 per offer (most offers are lower than that, though).
How to make extra money on Freecash
When you join Freecash, there are many ways to make money with different online tasks.
You can get paid on Freecash to do things like:
Welcome bonus – There is a welcome bonus when you join Freecash.
Take surveys – Share your opinions in surveys. Companies need your feedback, and you get paid for providing it. For each 5-10 minute survey, you can get paid $1.00.
Play games – To attract more players, gaming companies want to pay you to play their games. You can get paid from $0.50 to $120 per gaming app.
Try apps – Check out new apps and services. Use them, tell what you think, and get rewarded. You can get paid from $1.00 to $75 per app.
Referrals – You can get paid to refer your friends and family to Freecash. For example, you can ask your friends to join by adding a link to your social media account. I make money as an affiliate too.
They also have streak rewards, where you can earn a bonus for completing offers on a regular basis.
Plus, you can make even more money by taking part in their leaderboard contests. These are bonuses where you compete with others to see who can make the most money each day and month for extra prizes (such as an extra $50 for reaching the top place on the daily leaderboard or $500 for reaching the top place on the monthly leaderboard). And, you don’t need to be in the top 10; the top 1000 users get a leaderboard prize, although it gets smaller depending on your place.
As you can see, there are many ways to make extra money on Freecash in your spare time.
How Freecash works
It is easy to get started with Freecash and make extra cash. You just need to:
Sign up – Create an account using your email.
Choose an offer – Take your pick from the tasks on the earn page. Freecash lists the best offers from companies that want to advertise their apps, surveys, and products.
Complete the offer – Most offers are very simple and take around 5-10 minutes to complete.
Get paid – For each task you complete, you’ll be rewarded with coins: 1000 coins = $1.00. Your coins can be redeemed for cash, crypto, and free gift cards.
How does Freecash make money?
Okay, so after reading the above, you may be wondering what the catch is. Why does Freecash pay you?
Freecash partners with companies that want to advertise products or services. Here’s how it works:
When you play games, test apps, or take surveys, these are actually ways companies get your feedback or show off what they offer.
Freecash charges these companies for the advertising and market research services. Basically, businesses pay to hear from you or get you to try something.
Freecash uses a part of that money to give you rewards. It’s like a thank you for your time and opinions.
Here’s my Freecash payment proof. I redeemed a bunch of my coins at once the other day.
How to cash out your earnings
Cashing out your earnings on Freecash is easy. I have done this many times and it is very quick. Plus, there is a low payout threshold.
Freecash gives you several options to withdraw your earnings:
Cash – You can transfer your rewards directly to your PayPal account or to your bank account via a bank transfer.
Cryptocurrency – If you prefer digital currency, you also have the option to convert your coins into various cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dogecoin.
Gift cards – You can redeem your coins for free gift cards to places like Amazon, Visa, Google Play, Apple, Netflix, Spotify, Playstation, Nintendo, Xbox, Steam, Blizzard, Uber Eats, and DoorDash.
Skins – You can also withdraw your coins for Fortnite, Roblox, League of Legends, and more.
Withdrawals are typically processed quickly – usually the same day you request them.
When I recently withdrew my coins and exchanged them for Amazon gift cards, I received the Amazon gift card codes within minutes.
Pros and cons of Freecash
Before getting into the details, understand that Freecash gives you ways to make money by doing different tasks. But it’s important to think about how much time you have and how much money you could make from each task.
Some of the pros of using Freecash include:
It’s easy to use – You get to make money by doing things you might already enjoy, like playing popular mobile games or testing new apps.
There are many different kinds of rewards – Freecash has diverse rewards, such as gift cards, cash, and cryptocurrency.
There is higher earning potential than many other rewards sites – Some tasks can pay over $200, though such high payouts are not the norm. On average, you could earn around $10 per day.
Good reviews – The app is well received, with a 4.1-star rating on Google Play and over 60,000 reviews.
Some of the cons of using Freecash include:
There may be some time commitment – Your earnings are directly tied to the time you invest. If your goal is to earn a lot of money, it may require substantial time, and there may be better ways to make money if you need to make a lot of income.
You need to do your research – Not every task will be worth your effort. You’ll need to perform due diligence to make sure that you’re making the best use of your time.
What are the best apps for earning free gift cards?
If you are looking for other apps that pay with cash or free gift cards, you have many more options. These apps usually reward you for completing simple tasks, surveys, to watch videos, play games, and even shop.
Some of my favorites include:
What other reviews on rewards sites do you have?
If you are looking to learn more about other rewards and survey sites, I have in-depth reviews on several of them. You can find them below:
Frequently Asked Questions
Below are answers to common questions about Freecash.
Is Freecash legit or not? Is Freecash a scam?
Yes, Freecash is a legitimate site. There are over five million downloads on Google Play (an average of 4.1 stars with over 60,000 reviews), and it has high ratings on Trustpilot as well (an average of 4.5-star rating with over 81,000 reviews) – many people use and trust it.
How much can you make on Freecash?
Your earnings can vary, but Freecash users often make small amounts for quick tasks and potentially $20 or more for longer offers. The daily average payout is around $26.40. The amount of money that you can make on Freecash varies. They do have a fun leaderboard where you can see how much the top people are making each day. For example, when I checked, someone had earned $75 that day already, and the next 10 people each earned over $40. For the monthly leaderboard, the top person 17 days into the month had already earned $1,588.21. The next 139 people on the leaderboard had already made more than $400 that month as well.
Are Freecash games legit?
Yes, the gaming offers on Freecash are legitimate. They partner with various companies and reward you for trying out different games.
How long does it take to get money on Freecash?
Payments usually come quickly after you finish a task, though sometimes it might take a bit longer depending on the task’s conditions.
What is the minimum payout for Freecash?
Freecash often has a low minimum payout threshold, but the exact amount may change, so check the specific way you want to withdraw. You can cash out on PayPal with as low as $5, and the same goes for Amazon as well.
Why does Freecash pay you?
Freecash pays you for completing offers, surveys, and tasks because they get paid by advertisers and market research companies looking for input or engagement.
Should I use Swagbucks or Freecash?
Your choice between Swagbucks or Freecash depends on which platform’s tasks and rewards align better with your preferences and which one you find more user-friendly. I use both.
Does Freecash actually pay you?
Yes, Freecash pays out provided you meet the requirements of the tasks you’ve completed. I have personally earned $420 in Amazon gift cards on Freecash.
Is Freecash free to use?
Absolutely, Freecash is free to use. You don’t need to spend any money to sign up or participate in most offers and tasks.
Freecash Review – Summary
I hope you enjoyed my Freecash Review.
Freecash is a site and mobile app with a user-friendly interface that teams up with companies that want people to try their stuff and give feedback. When you join in and do what they ask, you get rewarded.
This is a way to make extra money from home but not get rich. It is also not a full-time job. But, it can be a way to make some spare money in your free time at home.
How much you make on Freecash depends on how much time and work you put in. Some people say they make about $10 every day without spending any money. And some are able to make hundreds of dollars a month and sometimes even well over $1,000.
Click here to sign up for Freecash.
What do you think of Freecash.com? Do you have any other questions you’d like me to answer in this Freecash Review?
While people are familiar with Social Security benefits, and know that most U.S. workers will be able to claim this monthly payout when they retire, there are a number of myths about Social Security that persist. Common Social Security myths include a range of misconceptions, from the notion that you can’t work and collect benefits — to the rumor that Social Security itself is about to dry up.
Perhaps all these myths mask a bigger truth. Social Security is complicated, but it can be an incredibly valuable part of your retirement plan — it works like an annuity — if you know how to maximize your benefits. Either way, it pays to sort out the myths from the realities.
What Is Social Security?
Quick historical recap: The Social Security Act was signed into law by President Franklin Delano Roosevelt on August 14, 1935. The aim was to provide financial support to those 65 and older, who would be able to collect a monthly payout based on payroll tax contributions that each worker made during their working years.
Social Security was later expanded to include benefits for the disabled and for children, among other features. But the basic tenets of Social Security still stand decades later: Social Security provides a steady, if minimal, income for older Americans, based on the amount they earned, and therefore the amount they paid into the system, while they were working.
Social Security was never designed to be a sole source of income for retirees, but rather a protection against poverty in old age — a fact that is also still true today. While it is possible to live only on Social Security benefits, and many do, when preparing for retirement your Social Security check is ideally only one “leg” of a three-legged stool, as some say. The other two legs should ideally include your personal savings/investments and employer-sponsored retirement plans.
💡 Quick Tip: How much does it cost to set up an IRA? Often there are no fees to open an IRA, but you typically pay investment costs for the securities in your portfolio.
9 Common Social Security Myths
With the basics of Social Security in mind, it’s time to explore the most common social security myths. With a better understanding, it will be easier for you to make a better, smarter retirement plan. Because these benefits can be complicated, and there are various strategies you can use to maximize your payout, you may need to consult a professional who can answer specific questions.
1. You Need to Start Claiming Social Security at Age 62
This is a Social Security myth that seems to cast a person’s earliest eligibility for Social Security as some sort of mandatory starting date for collecting. While you can claim benefits starting at age 62, you’re not obligated to do so.
In fact, you may not want to. If you file for Social Security at age 62, you get a permanently reduced benefit amount. You don’t qualify for 100% of your benefit, which is based on your earning history, until full retirement age — which is 66 and 4 months for those born in 1956, gradually increasing to age 67 for those born in 1960 or later.
Starting your benefits at the earliest possible age does provide income, if you need it. Every year you wait to claim Social Security, the more you’ll receive: 8% more per year, up to age 70.
2. Social Security Will Cover All Your Income Needs in Retirement
As noted above, some people are able to live on their Social Security benefits alone. That said, the intention behind Social Security was always that it would provide a form of basic or supplemental income — not that it would or should cover all of an individual’s income needs in retirement. For that, most people will also need a retirement fund of some kind.
When Social Security was first created, in the midst of the Great Depression, people’s lifespans weren’t as long as they were today. So, a person might live in basic comfort as they age, with only Social Security as a source of income. That’s not the case today.
Retirement includes many expenses, and as people continue to live into their 80s, 90s, and sometimes longer, the overall cost of getting older is likewise increasing. Health care needs may grow, and the need for long-term care may also enter the picture for many people.
Therefore it’s imperative for people to have additional forms of savings, whether that’s a tax-advantaged plan like a 401(k) or traditional or Roth IRA, or a taxable investment portfolio.
3. Social Security Is Going Away
Many Americans are worried that Social Security could run out, and will not be there for them when they’re ready. As of 2024, Social Security’s trust funds will be unable to pay full benefits starting in 2035 — after that, it’d only be able to pay 83% of its benefits, according to the 2024 annual report of the board of trustees that oversees the retirement and disability programs of Social Security.
However, even if Social Security reserves are depleted, the fund would continue to receive deposits — in the form of Social Security taxes that workers pay. This would keep the system going, even if benefits were reduced. The government is contemplating remedies that could address a potential shortfall like this, including raising the full retirement age or increasing the payroll tax.
4. You Can’t Claim Social Security If You’re Still Working
You can get Social Security benefits when you’re still working in retirement. The question is: Is that your best move? Depending on your age, your benefit amount could be reduced.
For example, if you’re working and you’re not yet at your full retirement age (66 or 67, depending on when you were born), it’s a potential double whammy: You would get a reduced benefit amount to begin with, because you’re not at full retirement age. The specifics will depend on how much you earn and your age, but it’s something to keep in mind – because these rules can be complicated it’s best to consult a professional to maximize your benefit situation.
If you’re at full retirement age and can claim 100% of your benefits, you can keep working and collecting benefits but you may owe taxes on up to 85% of your social security.
5. You Can’t Collect Social Security If You Retire and Live Abroad
This Social Security myth falls under the category of “it depends.” The SSA actually has an entire pamphlet about how payments to U.S. citizens and non-citizens work while they’re outside the United States, and even an online tool to determine if you can receive benefits in the country or territory where you’re hoping to plant a flag.
For example, payments cannot be made to people residing in North Korea or Cuba, due to the U.S. Department of Treasury’s sanctions.
There are other countries where payments cannot generally be sent, e.g. Azerbaijan, Belarus, and a few others, but exceptions can be made. The SSA states that if you’re heading to one of those countries, they will withhold your payments until you return to a country where they can send payments.
The rules vary for U.S. citizens and non-citizens, and it’s not always easy to open a bank account abroad, so be sure to check on your particular circumstance. And if you’re planning to retire abroad in one of the hundreds of other countries that the SSA can extend payments to, you should be in the clear.
6. If You’re Self-Employed, You Won’t Qualify for Social Security
Freelancers, consultants, and others who are self-employed pay Social Security taxes like everyone else, and they absolutely qualify for Social Security benefits.
When you’re a W-2 employee, the 12.4% Social Security wage tax is usually split by employers and employees. But because self-employed folks are their own bosses, they pay the full 12.4% instead of 6.2% on wages earned. Ultimately that’s good news, because it means independent contractors qualify for Social Security like everyone else.
And like everyone else, those who are self-employed also need a retirement plan that includes more than just federal benefits.
Independent workers actually have a number of retirement fund options that can also help mitigate taxes, when they open an IRA or a SEP IRA, for example.
7. You Don’t Pay Taxes on Social Security
People often refer to Social Security as a “tax” that workers pay (in that it gets withheld from your paycheck). So it might seem strange that you could then owe federal taxes on your Social Security benefits, but that’s the case.
In regard to federal taxes, according to the Social Security Administration: “You must pay taxes on your benefits if you file a federal tax return as an ‘individual’ and your ‘combined income’ exceeds $25,000. If you file a joint return, you must pay taxes if you and your spouse have ‘combined income’ of more than $32,000. If you are married and file a separate return, you probably will have to pay taxes on your benefits.”
(Combined income here doesn’t refer to joint income, but rather to the sum of your adjusted gross income, nontaxable interest income, and ½ of your social security income.)
But tax on Social Security is different from the tax you pay on other retirement income, like 401(k) withdrawals, for example. You only owe taxes on a portion of your benefits, and nobody will need to pay taxes on more than 85% of their Social Security benefits. How much tax will you owe? It depends on your marginal tax rate, which would include all forms of income (wages, earnings, interest, etc.).
In regard to state taxes: There are 40 states and the District of Columbia which considers Social Security benefits exempt from state tax, so be sure to check what the tax laws are where you live.
8. Divorce Reduces Social Security Benefits
Divorce itself doesn’t reduce your Social Security benefits (although divorce in general can reduce one’s income overall, and preparing financially for divorce is wise).
This Social Security myth reflects the confusion over spousal benefits rules, which are complicated. If you are married, divorced or widowed, you may be able to receive Social Security benefits based on your spouse’s record, but there are many rules and restrictions. Here are the basic rules for divorced spouses.
If you are 62, divorced, and not remarried, you may be able to receive Social Security based on your ex’s record (i.e. their earning history).
According to the Social Security Administration: “To be eligible, you must have been married to your ex-spouse for 10 years or more. If you have since remarried, you can’t collect benefits on your former spouse’s record unless your later marriage ended by annulment, divorce, or death.”
Also, the maximum you can get is 50% of your ex-spouse’s benefit. And if that amount is lower than your own benefit, Social Security will pay you the higher amount.
Last, a divorced spouse’s claim will not impact their ex’s Social Security check. So if a wife gets $2,000 per month from Social Security, and her ex-husband decides to claim based on her record (because she was the higher earner), her $2,000 benefit will remain unchanged no matter what amount he gets.
If the ex-husband qualifies for the divorced spouse benefit, he could expect up to $1,000 per month. If, however, his own benefit is higher than that — say $1,200 per month — Social Security would pay his benefit amount, not the spousal amount. Again his ex-wife’s benefit would remain unchanged: $2,000 per month.
9. You’ll Never Get the Money Back You Put Into the Program
If you’ve read through even a few of these Social Security myths and realities, you’ll already know the answer here. What determines your total payout, i.e. how much you earn from Social Security and for how long, is a highly individual and complex calculation. It includes many factors — from how old you are when you start claiming benefits, to how long you worked (and how much you earned for your top earning years), to whether you’re claiming benefits based on your own record or a spouse’s.
Some people will get back what they put into the program — and more. Some will not. Hopefully this guide will help you maximize the benefits you’re entitled to, so that whatever you paid into the system is worth the additional income and security you’re getting now.
💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
How Much Can I Earn on Social Security?
The top monthly payout from Social Security in 2024 is $4,873 — but it’s rare that people qualify for that amount. You would only qualify for the highest benefit if you earned the maximum taxable amount every year for 35 years, and you waited until age 70 to start claiming benefits.
In 2024, the maximum taxable income amount is $168,600. The maximum taxable income amount is adjusted every year for inflation, and is capped at the inflation-adjusted equivalent of $147,000 every year. This was done in order to prevent wealthy individuals from being able to claim the highest benefit amounts.
However, since those two factors — a 35-year history of earning the maximum taxable amount AND waiting until age 70 to claim benefits — are unlikely for most people, your own monthly benefit is likely to be lower. For context, $1,776 is the average monthly benefit as of April 2024.
Bear in mind, though, that everyone’s benefit is different because Social Security payouts are based on very specific factors, and you have to consider all of them when estimating what your Social Security earnings might be. Here’s how it works.
Your Income History
Your Social Security benefit is based on a complex calculation that factors in how much you earned in 35 of your working years, indexed against the national average income for each year.
Because each person’s income is different, and can vary from year to year, this calculation is specific to each individual, and is one reason that it’s difficult to compare your Social Security benefit to anyone else’s.
Your Age When You First Claim Benefits
One of the biggest Social Security misconceptions is that you have to retire at age 62 or 65 or 67 to be able to claim benefits (as discussed above). In fact, you can claim Social Security at any of those ages, but the reason that the age when you first claim benefits is important is that it determines the amount you’ll receive.
According to the SSA, your benefits increase by a certain percentage for each month you wait to claim benefits, after you reach your full retirement age. Full retirement age is 66 or 67, depending on the year you were born.
The older you are, the more money you’ll get — with those who claim at age 70 getting the maximum benefit.
💡 Recommended: What Is the Average Retirement Age?
Your Marital Status
Whether you’re married, divorced, or widowed can also have an impact on the amount of your benefits.
A married couple with two working spouses, for example, would qualify for separate benefits based on each person’s earning history. If one spouse worked and the other didn’t (or didn’t for a period of time), they might be able to claim 50% of the other spouse’s benefit or their own, whichever amount is higher.
A divorced or widowed person may be able to claim Social Security based on their spouse’s income history, if their own benefit is lower.
Because the spousal rules that govern Social Security are complicated — and people may have more options than they realize — it might be wise to consult a professional in order to understand which strategy will help you maximize your benefits.
Where Can You Access Your Benefits Statement?
Workers 25 and older, who are not claiming benefits, will get a mailed statement each year. This statement lets you know what your monthly benefit is likely to be when you retire, based on the data the SSA has currently.
However, it may be easier to access your personal statement online. It’s quite easy once you set up what’s called a “my Social Security account.” Then you can check your benefits at any time. Here’s how it works.
Invest for Retirement With SoFi
What we’ve covered here are just nine of the most common Social Security myths — there are certainly others. The most important thing these misconceptions have in common is a lack of understanding about Social Security fundamentals. Simply understanding the difference between claiming benefits at age 62, when you get a reduced amount, versus claiming at full retirement age — or even age 70 — when you get the so-called bonus amount, is a distinction that could change your entire lifestyle in retirement.
Similarly, knowing that you can work and still get benefits; that you can retire abroad and get benefits; that divorce might even improve your benefits — are all realities, not myths. Knowing the truth can only improve your social security strategy, and your retirement plan.
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For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
Is there really a Social Security bonus?
In effect, yes. By waiting to claim your benefits until full retirement age, you could get 32% to 40% more in benefits (an additional 8% for every year you delay claiming). That “bonus” is even bigger if you wait until age 70. After age 70, though, there is no further gain if you delay claiming your benefits.
How much does the government borrow from Social Security?
The revenue paid to Social Security, from workers’ payroll withholdings, is invested in special U.S. Treasury bonds, by law, which the federal government must pay back with interest. So while the government in effect borrows from Social Security, it must pay back the money — and the interest also helps to keep the system going.
Which president started Social Security?
President Franklin D. Roosevelt officially made Social Security the law of the land in 1935. But the idea of a federal support network for the elderly had been in the works for many years before then.
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Sleepy Bonds Rudely Roused by Surprisingly Strong Econ Data
By:
Matthew Graham
Thu, May 23 2024, 4:17 PM
Surprisingly Strong Surge in Services PMI Tests The Range
Perhaps fate was tempted by our persistent focus on this week’s absence of big ticket market movers. Or perhaps this is simply the biggest possible reaction to one of the week’s only potential market movers coming in MUCH higher than expected. After all, the mantra has been that nothing that happens inside a range of 4.34 to 4.50 in 10yr Treasury yields is interesting. While that remains true in the bigger picture, today’s reaction to the S&P Global Services PMI data was about as interesting as an uninteresting thing can be, causing an immediate spike from 4.42+ to 4.49+. While the size of the beat is certainly surprising (54.8 vs 51.3 f’cast), the market reaction to such an event is logical.
Jobless Claims
215k vs 220k f’cast, 223k prev
Chi Fed Activity Index
-0.23 vs +0.125 f’cast, 0.15 prev
S&P Services Global PMI
54.8 vs 51.3 f’cast, 51.3 prev
New Home Sales
634k vs 680k f’cast, 665k prev
08:35 AM
Mostly flat overnight and little-changed after data. MBS up 1 tick (.03) and 10yr down 0.8bps at 4.415
10:33 AM
Sharply weaker after PMI data. MBS down just over a quarter point. 10yr up 7.1bps at 4.496
02:35 PM
continuing modest recovery after AM weakness with MBS down 7 ticks (.23) and 10yr up 0.5 bps at 4.474
03:28 PM
Unchanged From the previous update at the 3pm CME close.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
When single-family permit demand collapsed in 2022, we still had a healthy backlog of homes that needed to be finished. While that was happening, we also had 5-unit permits expand as well. Well, that isn’t the case anymore, as 5-unit permits are already at COVID-19 recession lows and now we have seen some softness in single-family permits.
The future production of housing units at risk
I am bringing this up because economic recessions tend to see residential construction workers lose their jobs first. After all, higher mortgage rates tend to impact housing faster than other sectors. Manufacturing jobs and business investment also tend to get hit with higher rates, but we have massive manufacturing spending now that hides that issue. As you can see in the chart below, residential construction workers aren’t losing their jobs yet.
When it comes to the monthly supply of new homes, if the single-family permits and 5-unit permits fall together, construction labor is at risk once the backlog of new homes is completed. So, let’s look at the builders’ monthly supply data.
From Census: For Sale Inventory and Months’ Supply: The seasonally adjusted estimate of new houses for sale at the end of April was 480,000. This represents a supply of 9.1 months at the current sales rate.
While the monthly supply data seems massive, it’s a bit misleading regarding total units available for sale. Today, even with 9.1 months of supply, we only have 98,000 completed new homes for sale. This sector traditionally doesn’t release units completed for sale all at once, as it goes against the business model. Even during the housing bubble crash, the monthly supply data never got to 200,000 homes.
To give you some perspective, this amounts to less than two weeks of new listings of existing homes that come on the market.
I like to break down the monthly supply data into subcategories. People sometimes believe that the monthly supply of new homes means active, completed homes ready to buy, but that isn’t the case. In this report:
1.9 months of the supply are homes completed and ready for sale — about 98,000 homes.
5.3 months of the supply are homes that are still under construction — about 281,000 homes
1.9 months of the supply are homes that haven’t been started yet — about 101,000 homes
Now, the 1.9 months of supply of homes at 98,000 is roughly the line in the sand for the builders to start getting cautious about starting on homes that haven’t even dug dirt yet. This is why the rest of the year will be critical: as the builders begin to close on the construction of homes that are under construction, they will be less inclined to issue more permits.
New home sales
From Census: Sales of new single-family houses in April 2024 were at a seasonally adjusted annual rate of 634,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.7 percent (±12.0 percent)* below the revised March rate of 665,000 and is 7.7 percent (±13.2 percent)* below the April 2023 estimate of 687,000.
As we see below, new home sales aren’t booming; they’ve been in a slow grind from the lows of 2022. Higher mortgage rates impacted sales growth toward the end of 2023 so only the big builders could work this out with the rate buy down. The question is, how much longer can they do this? With their profit margin capacity, as long as mortgage rates are below 7.25%, they can make some deals to close some homes. However, as we see in the chart below, new home sales haven’t gone anywhere for a while.
The smaller builders don’t have this buy down advantage, and thus, we have seen a decline in homebuilder confidence data. This is why we need to keep a close eye on the housing starts and new home sales data together. For the first time, permits are falling for both data lines, single-family and 5-units, a staple of every pre-recession cycle data run.
We care about construction workers because the Federal Reserve won’t pivot on rates until they see the labor market break, and the bond market will drive mortgage rates lower once they see that construction workers are really losing their jobs. Twice now, the bond market has tried to get ahead of recession data lines, only to have yields and rates go back up when the recession didn’t happen. This is why tracking housing construction data is critical to each economic cycle when considering mortgage rates and possible better future demand for our current housing market.
In what should be a reassuring display of good timing, mortgage rates fell for the third week in a row — right at the start of homebuying season.
But mortgage rates are still too high for the comfort of many would-be buyers. That seems to be why home sales stumbled in April, and they might not be much better in May.
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Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a pretax net loss of $645 on each loan they originated in the first quarter of 2024 — a decrease from the average loss of $2,109 per loan in Q4 2023, according to the Mortgage Bankers Association’s (MBA) newest quarterly performance report.
“While the first quarter of 2024 marks the eighth consecutive quarter of net production losses, these losses were less severe than the previous two quarters,” Marina Walsh, the MBA’s vice president of industry analysis, said in a statement. “In basis points, production revenue rose above the historical average and production costs declined. This led to an improvement in the production bottom line by almost 50 basis points during the quarter.”
Walsh added that, including both production and servicing business lines, 59% of mortgage companies were profitable in the first quarter. That’s the highest level in eight quarters and up from a share of 29% in Q4 2023.
The average pretax production loss was 25 basis points (bps) in the first quarter, an improvement on the 73-bps loss in the fourth quarter. It was also substantially better than the 58-bps loss in Q1 2023.
Improved financial performance for retail lenders coincides with a more stable secondary mortgage market, which has seen spreads narrow since they peaked in fall of 2023. Housing inventory has also climbed from the low poitns of last year, although it remains well below pre-pandemic levels.
The average production volume was $384 million per company in the first quarter, up from $359 million per company in the fourth quarter, MBA reported. The average company produced 1,193 loans in the first quarter, up from 1,170 loans in the fourth quarter.
Walsh’s analysis found that total production revenue increased to 371 bps in the first quarter, up from 334 bps in the fourth quarter. On a per-loan basis, production revenues increased to $11,947 per loan in Q1, up from $10,376 in Q4 2023.
Other production statistics of note:
The average loan balance for first mortgages increased to $345,761 in the first quarter, up from $336,757 in the fourth quarter.
Total loan production expenses — including commissions, compensation, occupancy, equipment and corporate allocations — decreased to 395 bps in Q1 2024, down from 407 basis points in Q4 2023. But per-loan costs increased to $12,593 in Q1, up from $12,485 in Q4. From the first quarter of 2008 through Q1 2024, loan production expenses have averaged $7,472 per loan.
Median productivity — measured by loans closed per retail or consumer-direct production employee — remained unchanged at 1.1 loans per employee in the first quarter.
Servicing net financial income for the first quarter (on a non-annualized basis) was $82 per loan, up from a loss of $24 per loan in the fourth quarter. Servicing operating income — which excludes mortgage servicing rights (MSR) amortization, gains and losses in the valuation of servicing rights net of hedging gains and losses, and gains and losses on the bulk sale of MSRs — was $93 per loan in the first quarter, down from $108 per loan in the fourth quarter.
The MBA on Monday released its latest forecast for the remainder of 2024. Chief economist Mike Fratantoni expects $1.8 trillion in origination volume this year, with mortgage rates expected to end the year at 6.5%.
Fratantoni expects a major rebound for the mortgage market over the next two years. His forecast calls for $2 trillion in origination volume in 2025 and $2.28 trillion in 2026. Mortgage rates should fall to 5.9% in 2025 and 5.7% in 2026, according to Fratantoni’s forecast.
The events behemoth Live Nation Entertainment is about to rack up some fees of its own — legal fees, that is.
On Thursday, the Department of Justice announced it was suing Live Nation Entertainment on antitrust grounds. The suit arrives after long-standing allegations of monopolistic practices and multiple federal investigations. The DOJ’s action was largely expected following a report of the impending suit by the Wall Street Journal on April 15.
Live Nation Entertainment encompasses international event promotion and management, as well as ticket sales through its better-known division, Ticketmaster.
The antitrust suit, which was joined by 30 states, was filed in federal court in the Southern District of New York. During a press conference following the announcement, Attorney General Merrick Garland detailed some of the DOJ’s allegations against Live Nation Entertainment including:
Locking out competition through long-term and exclusive contracts with major venues encompassing more than 70% of event ticket sales.
Imposing a “seemingly endless” bevy of fees, such as ticketing fees, service fees, convenience fees, platinum fees, handling fees and more.
Pressuring artists into using its services to promote events at venues it has long-term contracts with.
Working “strategically and illegally to eliminate the threat of potential rivals” in the event ticketing industry, in some cases even when the deal didn’t financially make sense for Live Nation’s business.
“Some monopolies are just so entrenched and some problems so difficult to address that they require decisive and effective solutions,” said Assistant Attorney General Jonathan Kanter at the press conference. “We request a remedy that has been used in antitrust law going back over 100 years, which is structural relief.”
Prior to the lawsuit, in Live Nation Entertainment’s first quarterly earnings call of the year on May 3, President and CFO Joe Berchtold said, “Based on the issues we know about, we don’t believe a breakup of Live Nation and Ticketmaster would be a legally permissible remedy.”
The investigation started with Taylor Swift’s Eras Tour
The Justice Department’s suit is the result of an investigation launched in November 2022 following an incident in which Ticketmaster mishandled sales of tickets for Taylor Swift’s Eras Tour. A multitiered presale event for the tour prematurely oversold tickets, which meant hopeful fans couldn’t purchase them in the public sale. Then resellers who did manage to get presale tickets posted those for sale at exorbitant prices.
In the aftermath, fans of the pop star, also known as Swifties, filed a class-action lawsuit accusing the company of fraud, misrepresentation and anti-competitive practices.
The incident also prompted Congress to begin investigating the event ticketing company. In February 2023, legislators recommended that the DOJ’s Antitrust Division probe Live Nation Entertainment, as well.
Then in November 2023, the Senate Permanent Subcommittee on Investigations (PSI) issued a subpoena for documentation that it said Live Nation had yet to produce during the subcommittee’s investigation. The subcommittee also wrote a letter to the Justice Department that said the Eras Tour problems “suggest that the Department’s past enforcement efforts have failed to protect competition.” It went on to say that if Live Nation had indeed abused its power in the event ticketing market, then it may be prudent for the DOJ to break up Live Nation and Ticketmaster.
Live Nation Entertainment controls most of the event ticketing market
In 2010, the Justice Department approved the merger of the event promoter Live Nation and ticketing company Ticketmaster to become Live Nation Entertainment. At the time that the companies consolidated, each was already the dominant player in the events industry: Ticketmaster for ticketing and Live Nation for owning, operating and promoting venues.
Peter Cohan, a professor of practice in the management division at Babson College in Wellesley, Massachusetts, says the merger has been costly for consumers. Face-value tickets have increased sharply, but increasingly pricey fees have been tacked on, as well. They’re commonly called junk fees, and the Biden administration has made a mission of targeting them in the events ticketing space, as well as travel and credit cards.
In a 2009 analysis that Cohan wrote prior to the Live Nation merger entitled “Chokehold on Live Entertainment,” he looked at fees. Cohan says, “I came across a typical kind of concert ticket — Denver, Colorado, a Green Day concert in 2009 — where the fee was 45% of the face value of the ticket. And now fees are as high as 70% or 75%.”
In more than a decade since its merger, Live Nation Entertainment has only strengthened its hold on the market. During last year’s congressional investigation, the PSI submitted a letter to the Justice Department citing statistics that demonstrate Live Nation’s reach: 60% of the event ticketing market is controlled by the company. That includes 80 of the top 100 largest arenas in the U.S.
Live Nation Entertainment’s ownership of and deals with venues make it difficult for artists to use any other ticketing platform for its tours, says Cohan. “If an artist wants to use a different ticketing provider, then Live Nation will basically threaten to say, ‘Well, you can’t use this venue,’” he says.
This hasn’t gone unnoticed by the Justice Department: In 2019, the DOJ determined that Live Nation had violated the consent decree it agreed upon during the merger. The consent decree specified that Live Nation Entertainment cannot retaliate against concert venues for using other ticketing services. According to a Dec. 19, 2019, press release, the DOJ found “Live Nation repeatedly and over the course of several years” violated this agreement.
The consent decree between the companies was supposed to expire after 2019, but the DOJ extended the terms of the merger deal to 2025. In the extension, the Justice Department clarified that Live Nation Entertainment must not pressure venues to use Ticketmaster under the threat of forfeiting Live Nation shows.
Live Nation Entertainment says it’s not to blame for high prices
In response to scrutiny over high ticket prices, Live Nation Entertainment sought to explain more fully the rationale behind the costs. Dan Wall, Live Nation Entertainment’s executive vice president of corporate and regulatory affairs, wrote in a March 4, 2024, open letter entitled “The Truth About Ticket Prices” that high prices “have very little to do with Live Nation or Ticketmaster.” Instead, steep demand for high-profile concerts, like the Eras Tour, naturally leads to more expensive tickets. He went on to add that artists’ increasing dependence on touring income — mainly due to the prevalence of music streaming, which doesn’t pay out for most artists — is also a contributing factor.
Still, Wall wrote that artists tend to underprice tickets “mostly out of regard for their fans,” but the resale market shows artists what their tickets could cost, which, in turn, leads artists to charge more because “when they don’t charge those prices scalpers will find ways to acquire tickets and resell them at full market value.”
He wrote, “The common thread to all these factors is that they have nothing to do with who the promoter is or who sells tickets to the show.” It is the performer’s business team that works with promoters to come up with a strategy that provides revenue while “doing right by their fans.”
Cohan says the secondary market has further exacerbated already high prices for tickets — by several thousand percent markups. “If you go to buy a ticket and Ticketmaster says you can’t get it, that’s because 90% of tickets are reserved for secondary market players who immediately bid up the price,” says Cohan. “Then you have to buy it on the secondary market and pay much more for it.”
On the secondary market, Cohan says, Ticketmaster then collects more fees on transactions. However, Ticketmaster has, in the past, publicly denied that it enables a mass-scalping system.
Live Nation reported a record $22.7 billion in revenue in 2023.
This isn’t the DOJ’s first rodeo with Ticketmaster
Anticompetitive accusations have been thrown at Ticketmaster for decades. In the early 1990s, the grunge band Pearl Jam feuded with Ticketmaster over its service charges. A June 30, 1994, article in the Los Angeles Times said the band accused Ticketmaster of refusing to sell tickets to the band’s tour at the price point they wanted to ask of fans: $18 or less, with under $2 in service fees (at the time, Ticketmaster charged $4 to $8 per ticket in service fees). Later, Pearl Jam tried to work outside the Ticketmaster system on its own low-priced tour, but the company allegedly influenced promoters and venues to boycott the tour altogether.
The clashes between Ticketmaster and Pearl Jam prompted a situation similar to the current inquiry following the Eras Tour mess: The Department of Justice launched an investigation into anti-competitive practices while Congress called for hearings. Ultimately, Ticketmaster won out.
What’s next
Cohan is skeptical that a breakup of the merger will happen. He speculates that it’s more likely that Live Nation will stall litigation for as long as possible and likely conduct changes to remediate some of the complaints rather than wade through an entire breakup of the companies.
But if the DOJ does break up the merger, Cohan says, it’s possible prices might improve somewhat since there would be less of a financial incentive for Live Nation to only use Ticketmaster. But he asserts that unwinding the merger is unlikely to make much of an impact.
“The situation was pretty bad before they were merged and probably would be pretty bad afterwards unless there was a fundamental change to the way tickets are sold,” says Cohan, who suggests direct artist-to-consumer sales would likely be the next best option. He reasons that artists need a way to sell tickets, but with existing e-commerce technology, big ticketing systems aren’t really necessary.
“I’m sure many artists — even the smaller ones — could probably pull their money together and build a system that they could sell tickets on directly to consumers without having all these intermediaries taking a piece out of it where they’re not really adding any value,” he says. “It would probably still be expensive to go to a concert, but with the non value-added cost taken out, it would be lower.”