A few weeks ago I wrote about my realization that I have too much Stuff. For two decades, I had been a willing participant in our consumerist culture, buying books and magazines and video games and compact discs and George Foreman grills. After twenty years of this, all I had to show for it was a mountain of debt and a home filled with Stuff.
Recently, Kris and I have been working to purge our Stuff. While we’ve discarded some of it as trash, we’ve also managed to sell some of it. We’ve donated some of our Stuff to charity. We’ve given other Stuff to friends.
At first this was painful. Then it became appalling. It was shocking to think that I’d paid tens of thousands of dollars to buy this Stuff, and then paid even more in interest fees. Now I’m casting much of it aside, shipping it off to a landfill.
This has made me realize that Stuff has more than just a personal financial cost. Every time I buy something, it has an impact on the world around me. When I buy a new kitchen appliance, for example, there’s an environmental cost for the manufacturing process, for the packaging, for the transportation, and for the marketing. By reducing my role as a consumer, couldn’t I help myself and help the environment? Here are five strategies that I’ve developed to help me accomplish both goals at once:
Reduce your consumption — buy less stuff. Such a simple notion, yet so powerful. The less you buy, the less money you spend. When you buy less, you’re also reducing your environmental impact. Buying fewer things means a little more money in your pocket, and a little less pollution in the world.
Reuse the things you have. Last week, Amanda encouraged us to get value from the things we own. Before you buy a new computer game, ask yourself if you’re finished playing the last one you bought. Before you buy a new bicycle, consider taking your old bike in for a tune-up instead. If you currently buy disposable diapers, disposable razors, or paper towels, consider switching to re-usable alternatives.
Recycle the Stuff you no longer want or need. If you replace your 1996-era 19″ Sony television with a new widescreen model, don’t set the old TV out in the trash. Find another home for it. Put it on Craigslist. Set it outside with a “free” sign on it. If you really want to save money, place yourself on the other side of the equation: look for Stuff that people are getting rid of. You can find nearly everything you need for much less than you’d pay new. You just need to know where to look!
Embrace imperfection. We like the things we buy to be perfect. But that perfection comes at a price, both financially and environmentally. Learn to look beyond the surface:
Hand-crafted goods may contain minor imperfections.
Organic fruits and vegetables often have visible blemishes that do not affect the quality of the food.
The things you find at garage sales and thrift stores will often require mending.
All of these flaws can be disconcerting at first, but in time you may find yourself wondering why they once bothered you.
Pursue quality. I used to buy a pair of $3 gardening gloves every spring because I didn’t see the sense in spending more. They’d work fine for a couple months, but by the end of the summer, they’d be worn to pieces. Then one year I bought a $15 pair of gloves. I haven’t bought another pair since. We often assume the least expensive option is the best way to save money. That’s not always the case. Quality items usually have a higher initial cost, but the total cost of ownership can be much less than a cheaply-made equivalent.
These rules can be difficult to follow — I’ve been working on some of them for years. Most of the time, I still think like a consumer. But because it’s important to the environment, and because it’s important to my bottom line, I’m willing to keep trying.
Anxiety can be considered a disability. If you have severe anxiety symptoms that prevent you from working and you meet certain criteria, it’s possible to qualify for Social Security Disability Insurance (SSDI) benefits.
Applying for disability benefits takes time, though, and most claims are denied. To increase your chances of getting approved, you’ll need to show robust medical documentation. Consider getting an experienced disability lawyer to help you put together a strong case.
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Work accommodations for anxiety
The Americans with Disabilities Act (ADA) requires that reasonable accommodations be made in the workplace (assuming the employer is able to do so) for employees with disabilities, including mental health conditions and anxieties
. Common accommodations for workers with anxiety might include:
Quieter workplace environments.
The ability to work from home.
Flexible scheduling to allow for medical appointments.
If your employer refuses to provide reasonable accommodations for anxiety, this could be considered discrimination. If you believe you’re being discriminated against on the basis of disability, you can file a complaint with the U.S. Equal Employment Opportunity Commission within 180 days of when the discrimination occurred. You might be entitled to a remedy such as a reassignment, promotion or back pay.
What type of anxiety qualifies for disability benefits?
Your anxiety needs to be found to be a medically determinable impairment of your daily life in order to qualify as a disability for SSDI, says Amanda J. Bonnesen, an attorney with Berger and Green Attorneys at Law, an injury and disability law firm based in Pittsburgh.
The Social Security Administration’s definitions
The Social Security Administration (SSA) will first consider whether your supporting medical documentation aligns with the adult medical listing for anxiety in the SSA Blue Book
, the guide that lists medical specifications to qualify for disability.
For anxiety disorders: Patients must display several overlapping symptoms, starting with three or more of the following:
Irritability.
Difficulty concentrating.
Restlessness.
Easily fatigued.
Muscle tension.
Sleep disturbance.
For anxiety that’s medically diagnosed as agoraphobia or a panic disorder: The condition must cause a person to have a disproportionate fear or anxiety about two separate situations (like interacting with other people and using public transportation) and/or cause persistent panic attacks.
Along with those indicators, you’ll also have to show either
:
Certain functional limitations.
Or a history of having a serious or persistent anxiety disorder for at least two years and receiving treatment for it.
Your work history
If your medical records don’t exactly match the criteria in the Blue Book, the SSA will move on to analyze your work history. That usually includes consulting with vocational experts, physicians and/or therapists to formulate what they see to be a person’s functional limitations, and whether or not the condition is impacting the ability of a person to do their job.
A disability attorney will typically try to get a claim approved “by showing that even though a client is in treatment, the best functionality this person is going to have still prevents this person from attending work regularly,” Bonnesen says. “Or, if they do attend, they’re not able to stay on task, maybe requiring moments to leave work to gather themselves, or to leave altogether because of their symptoms.”
How likely is it that the SSA will approve my SSDI application?
The likelihood of your SSDI application being approved depends greatly on the details of your specific case.
For claims filed from 2010 through 2019, 31% of disabled-worker applications were granted benefits
. As of December 2021, about 4% of SSDI recipients received benefits due to “other mental disorders,” a category that includes anxiety.
“The problem is, at every stage of the game there’s a human being on the other end making that decision,” Bonnesen says. “So unfortunately, as much as they try to make it objective with rulings, laws and federal codes, there’s still a human being interpreting it. There’s no way to take the subjectivity completely out of it.”
Julie Burkett, an attorney who serves on the board of directors for the National Organization of Social Security Claimants’ Representatives (NOSSCR), says she recently had two decisions handed down regarding anxiety disorders in the same week, one that was approved and one that was denied.
The likelihood of getting a claim for anxiety approved? “It’s possible, but not a given,” she says.
SSDI benefits for anxiety
How much income a person can bring in through SSDI is dependent on several factors.
“What Social Security will do is analyze your earnings history pooled through the IRS,” Bonnesen says. Social Security then uses its own formula to calculate a monthly benefit.
Of those awarded benefits, payments typically amount to more than part-time wages but not as high as a full-time salary, Bonnesen says. In June 2023, Social Security paid approximately $1,483 per month to disabled workers
. This, it’s worth noting, is barely above the federal poverty level.
How to improve your chances of qualifying for SSDI
Applying for SSDI can be a challenging task. There are a few things you can do to help improve your chances of qualifying.
Try every recommended treatment
The SSA is looking for medical conditions where the person is doing everything medically recommended to get better and the treatments are just not helping them stabilize, says Bonnesen. Someone who drops out of treatment or only sees a primary care physician — as opposed to therapists and specialists — won’t be considered, she notes.
Communicate clearly and frequently with your medical team
Be sure to communicate all of your symptoms with your doctors and therapists.
“Don’t assume or take for granted that the first time you tell them something, that will carry through,” Bonnesen says. “Be vocal the whole time, or your records won’t reflect what you’re suffering with.”
Follow your doctor’s orders
If your doctor recommends a course of action or treatment for your condition, you’ll want it documented that you’re doing what they recommended, says Burkett.
Avoid alcohol and recreational drugs
If you drink or use recreational drugs and have anxiety, the SSA will need to determine whether you’d still suffer from anxiety without the interference of those substances. This makes the process more difficult.
Get to know the parameters for continuing to work
Anyone looking to apply for SSDI should understand the rules regarding working and receiving benefits.
“A person cannot be working full time. That’s the whole standard,” Bonnesen says. “Social Security compensates individuals who are unable to work full time, on a consistent and ongoing basis, due to a condition lasting or expected to last 12 months or longer.”
Since the application process can take a while, people can work part time, within certain limits, while waiting on their decision. That’s typically under 40 hours a week, with gross monthly earnings that are less than a certain amount. For 2023, someone earning over $1,470 per month (or $2,460 if they’re blind) won’t be considered for SSDI
.
Once your application has been accepted, there is a trial period of nine months allowed for someone to receive full benefits and test their ability to work, regardless of how much they make.
Get a lawyer
If it seems like qualifying for SSDI requires jumping through a lot of hoops, that’s because it does.
“Representation can help so much, because it allows an individual to focus on what they need to do with their health team, rather than worrying about paperwork with the administration or deadlines or gathering records,” Bonnesen says.
Look for a disability lawyer with experience working on claims like yours, with a high rate of successful outcomes. Disability lawyers work on contingency, meaning they won’t be paid unless your claim is approved. The SSA also sharply limits how much disability lawyers can charge in fees.
Frequently asked questions
If I’m denied SSDI once, can I reapply?
There are four ways to appeal an SSDI denial:
A reconsideration of your original claim by a person who was not involved with the original claim.
A hearing by an administrative law judge.
A review by the appeals council.
A federal court review, which can only take place if you disagree with the appeals council or your request was denied by them.
If you do plan to appeal a denial, you have 60 days from when you receive notification of your denial to do so.
What records do I need to share with the SSA to qualify for SSDI?
The more information you can gather to file your SSDI request, the better your chances are of succeeding.
The SSA recommends getting together a “substantial” history of treatment from your physician and qualified mental health professionals. That includes therapy notes, hospitalization records, psychological tests, reports from your doctors and, if relevant, work history reports.
What if my anxiety keeps me from being able to handle everything I need to do to apply?
Look for an experienced disability lawyer who has worked on anxiety claims in the past. They can help with meeting deadlines and completing the application process.
Have you ever wondered what a 9-figure amount looks like? It’s a sum of money too big to ignore, with a whopping total of 100 million to less than 1 billion. Discover more about this colossal figure and the wealth it represents
When we mention nine-figure sums, we’re talking about a truly astronomical level of wealth. To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999.
This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 843.8 million USD in 2021.
Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.
Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.
How Much Is a 9-figure Salary?
Table of Contents
A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars.
Quite a mind-boggling figure, isn’t it?
It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide.
Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.
Now, let’s delve a bit deeper, shall we?
When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?
So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.
And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club.
After all, isn’t the sky the limit when it comes to chasing our dreams?
Examples of People Who Earn 9-Figure Incomes
Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.
Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.
David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.
Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.
Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.
Case Study: What Does A 9-Figure Earning Look Like?
Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.
Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.
Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.
Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.
What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?
How Much Is 9 Figures Monthly?
To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.
$100,000,000 per year / 12 months
= $8,333,333.33 per month
This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.
How Much Is 9 Figures a Week?
If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! 💸💼.
$100,000,000 per year / 52 weeks
= $1,923,076.9 per week
While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more.
How Much Is 9 Figures a Day?
Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!
Here’s the breakdown:
$100,000,000 per year / 365 days
= $273,972.6 per day
Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.
How Much Is 9 Figures an Hour?
If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90per hour. This calculation is based on working days – usually 262 days per year in the US.
How Much Is 9 Figures After Taxes?
Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone.
Instead, individuals in this income bracket often have multiple income streams, such as investments, business ventures, and other revenue-generating activities.
Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill.
What Is the Pathway To Achieving a 9-Figures Income?
If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them.
Here are some tips to help you achieve this milestone:
Acquire Valuable Skills and Experience
The first step towards achieving a 9-figure income is building a solid foundation of high income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.
Build or Join a High-Growth Venture
Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.
Invest Wisely and Diversify Your Income Streams
Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.
Let’s give you an example.
If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.
Equities and Derivatives Trading
The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time.
Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level.
Leverage Networks and Opportunities
Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.
Jobs That Pay 9 Figures
Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries.
Tech Company Bosses
Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.
Examples include:
Elon Musk, CEO of Tesla ($242.4 billion)
Jeff Bezos, CEO of Amazon ($151.5 billion)
Mark Zuckerberg, CEO of Facebook ($103.4 billion)
Professional Athletes
In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.
According to reports, these athletes earned more than $100 million in a single year:
Hollywood Celebrities
Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.
Media Stars
Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.
Hedge Funds & Investment Bankers
Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include:
Ray Dalio, founder of Bridgewater Associates ($19.1 billion)
David Tepper, hedge fund manager ($18.5 billion)
Carl Icahn, founder of Icahn Enterprises ($10.1 billion)
Pop Superstars
The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.
Entertainment (actors, singers, dancers, etc.)
Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.
Top-notch Business Owners
Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.
These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.
Are 9-Figures Rich?
When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!
A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.
But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.
And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!
What Does a 9-Figure Lifestyle Entail?
Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:
Extreme Luxury
A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.
Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.
Philanthropy
Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.
The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.
Investments
Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.
Personal Staff
Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.
This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly.
Political Influence
The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it.
However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage.
Privacy and Security
With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.
This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.
High-End Experiences
Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs.
This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget.
Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked.
Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it.
Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.
FAQs – Making 9 Figures
How many words are nine figures?
Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words.
Does anyone make nine figures?
In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.
To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.
What do “figures” mean in money?
Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments.
What is a nine-figure job?
A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.
These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge.
What’s the difference between a 9-figure salary and a 9-figure income?
A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.
For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family.
What is the difference between 9 figures and 8 figures?
Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.
For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.
Is 9 figures a lot of money?
Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status.
There’s nothing I like more than writing my annual checks for all my insurance protection…cough.
Not including my long-term disability policy, my $2.5 million 30 year term policy, standard homeowner’s and auto policies, and personal umbrella policy; I pay roughly $5,124 per year for my total business insurance coverage.
But we all know that insurance is a necessary evil.
When you damage someone else’s property or cause injury to someone else, you are usually held personally liable for the costs.
This means that you have to pay restitution.
In some cases, these costs can exceed your ability to pay. That is not a good situation!
With the help of personal liability insurance, though, it is usually possible to meet these types of obligations.
Personal liability insurance is a completely different ballgame from life insurance.
What is Personal Liability Coverage?
Chances are that you already have some liability coverage. Most homeowners policies and auto policies include a certain amount of personal liability coverage.
If someone is injured at your home, or if you ruin someone’s property with your car, the insurance company pays the claims, up to the amount that you are covered for.
Personal liability coverage helps you protect your assets since the insurance company pays out the claim, and you don’t have to dip into your savings, or into your other assets.
However, the personal liability coverage that comes with your more common insurance coverage isn’t always enough.
Consider Umbrella Insurance
One way to augment your personal liability coverage is to purchase an umbrella policy.
Umbrella insurance protects you in larger amounts than what is usually offered with your other policies, but the premium increase isn’t as bad.
You can usually buy a popular umbrella coverage amount for about $150 a year, and an increase of $50 for each additional $1 million. Many consumers find that boosting the deductible on auto or home insurance can offset the cost of umbrella insurance.
If you have factors that increase your chances of damaging property or injuring others, it can be worth it to get umbrella insurance — especially if you have a high net worth.
Someone who knows you have more assets might be more willing to sue you for $2 million after a slip and fall at your home. Umbrella coverage kicks in after your regular insurance is tapped out.
So, if your homeowner’s policy has $750,000 in liability coverage, and you have $3 million in umbrella insurance if you are sued for $2 million, your homeowner’s policy will be tapped first.
Once the $750,000 has been paid out, the remaining $1.25 million will be paid from your umbrella policy.
We initially started with a $1m umbrella policy but recently increased that to $2m of total coverage. I also have an umbrella policy for my business, too.
Errors and Omissions
When you are self-employed, you have to be aware of some of the liability issues that can come with your job.
If a client holds you responsible for a service you provided, or if the promised results were not realized, or if you are considered liable for a service you didn’t provide, this can become an issue.
Financial planners, lawyers, cosmetologists, and others who are in positions to provide advice and some services to clients can benefit from this type of liability insurance.
This is my whopper of a premium, but with my profession; it’s a necessity. My total premium is $3,654 per year for E&O coverage…gulp.
Some additional benefits that my E&O coverage policy covers on top of the $1m of coverage are:
Business travel Accidental Death Benefit: $25,000
Emergency Real Estate Consulting Fee: $25,000
Identity Theft Expense: $25,000
Key Individual Replacement Expense: $25,000
Kidnap Expense: $25,000
Theft of Work Materials: $2,500
Should You Buy Personal Liability Insurance?
Make sure you consider your situation and your position. If it appears that you could be sued for what you have done, it’s important to make sure that you have the proper liability insurance.
That way, you will protect your assets, and avoid financial ruin if you are held liable for someone else’s injury, loss, or property damage.
Return on equity (ROE) and return on investment (ROI) are two important financial metrics that are used to measure the profitability of a rental property, a business, or another type of investment. Both metrics are expressed as a percentage, and they both measure the amount of profit that is generated from a given amount of investment. However, there are some key differences between ROE and ROI. I think most investors think of ROI when determining how good their investment is, but ROE can give indications of how good the investment is based not just on the initial investment but the current equity. Some properties may have a great ROI but a poor ROE. These numbers can help you decide if it is an investment worth keeping or selling.
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What is Return on Equity?
ROE measures how effectively equity is being used to generate profits. Equity is the property’s value minus any liens or debts against the property. For example, if a property is worth $500,000 and has a $200,000 mortgage against it, there is $300,000 in equity. This figure may not be the figure you want to use to base keep or sell decisions on since there are selling costs as well. It may cost you $50,000 to sell the property after commissions, closing costs, and repairs to make the property marketable. If you sell the property you may have to pay taxes on the profit as well. If you are making $100,000 in profit on the sale, you might have to pay $15,000 or $20,000 in capital gain taxes unless you use a 1031 exchange.
The return on equity is calculated by dividing the profits the property makes by the equity. If the property makes $10,000 a year, then the ROE would be 5 percent if there is $200,000 in equity.
10,000/200,000 = .05
However, as I said earlier you may want to use a different number based on the money you would get out of the sale. If you are only getting $125,000 after all the costs you would have to pay you would be making 8 percent:
10,000/125,000 = .08
What is Return on Investment
ROI measures the profitability of an investment property based on the profit generated and the initial investment into the property.
For example, if a property has a net profit of $10,000 per year and there was an initial investment of $100,000, then its ROI would be 10%. The ROI analyzes the property based on how much money was used to buy, rehab, and rent the property, not by how much money is tied up in it now. ROI is useful in seeing how a property might perform, but I would argue it is not as important when figuring out whether to keep or sell an asset.
How to know when to sell rental properties?
Differences Between ROE and ROI
The main difference between ROE and ROI is that ROE measures profitability in relation to equity or the money you could get if you sold the property, while ROI measures profitability in relation to your initial investment. ROE is a better judge of how well a property is performing today.
Once you have invested a certain amount of money into a property, you can’t undo that investment. The money is spent and keeping a property because it has a high ROI or you dumped a bunch of money into it, might not be the best financial decision. You could have a very high ROI but a very low ROE because the property has increased in value.
A real-life example of ROI vs ROE
I bought a property in 2010 for $97k that I sold in 2019 for $275k. I spent about $27,000 buying that property and in 2018 it was making about $9,000 a year. That is a 33 percent ROI just based on the rent coming in! The tricky thing with real estate is that the property was also appreciating in value, had tax advantages and the loan was being paid down. The ROI was much higher than 33 percent, probably close to 100 percent.
This seemed like an amazing investment so why did I sell it? My ROE was much lower because I had $220,000 in equity in the property. I could use a 1031 exchange to sell the property and pay about $15,000 in selling costs ( I am an agent so I save money there). I could take about $200,000 out of the property which means my ROE was only 4.5 percent based on rent alone. If I factored in taxes and appreciation, that ROE might increase to 10 to 15 percent.
The question I had to ask myself was not if that was a good ROI, but if that was a good use of the money I had tied up in the property, or ROE.
I decided to sell because I could take that money and get a better ROE on a new property that had a better rent-to-value ratio. I could also get a great deal when buying which also increases my returns. Instead of making $20,000 to $30,000 a year from rent, appreciation, loan pay down, and tax advantages. A bigger property with better numbers could make me $50,000 to $70,000 a year with that same amount of money. I could build more equity as well because I am getting a good deal on the new property.
Other options to optimize ROE
If you have low ROE, you don’t always need to sell. You may be able to refinance the property and take some of that equity out to use in other deals. It is harder to refinance with higher rates but this made a lot of sense when rates were lower. When you refinance you are replacing the old loan with a new loan and when you use a cash-out refinance you are replacing the old loan with a larger loan and getting cash back in the process. One of the advantages of a refinance is that the cashback is tax-free since it is not income.
Conclusion
ROE and ROI are both important financial metrics that can be used to measure the profitability of a company or project. However, they measure different things, so it is important to use the right metric for the situation.
I hope this article was helpful. Please let me know if you have any other questions.
Ever since Mel Watt hinted at the return of 3% down mortgages, there’s been a lot of worry that we could be headed down another dark path.
After all, it was a lack of skin in the game that caused all the carnage during the most recent housing crisis, right?
Well, maybe not. An analysis from the Urban Institute seems to put the blame more on low credit scores than low down payments.
They looked at Fannie Mae’s default rates for 30-year fixed mortgages before, during, and after the crisis to see what kind of impact ultra-low down payments had on mortgage performance.
In 2001, the default rate on mortgages with a 3-5% down payment (95-97 LTV) was 3.3%, compared to 3.1% for loans with a 5-10% down payment (90-95 LTV).
During 2007, the worst mortgage performance year in recent history, the default rate climbed as high as 27.8% for 3-5% down mortgages, compared to just 22.7% for the 5-10% down cohort.
Post-crisis, the defaults numbers are super low for both groups, and were in fact the same in 2011 at 0.4%.
In 2012, the 95-97 LTV loans defaulted at a rate of just 0.2%, compared to 0.1% for the 90-95 LTV group.
What About Borrowers with Excellent Credit?
The data show that credit score is huge
When it comes to predicting mortgage default
Even if the borrower comes in with a low down payment
A low credit score seems to be more impactful
Interestingly, the numbers move a whole lot more when you throw credit score into the mix.
For example, in 2001 the default rate was 1.2% on loans with a 3-5% down payment and a credit score of 750 and above. Meanwhile, mortgages with down payments of 5-10% and credit scores between 700-750 had a default rate of 1.6%.
This trend can be seen throughout all the years in the analysis. In every instance (other than 2012) a lower credit score coupled with a higher down payment led to a higher default rate.
During 2007, the 95-97 LTV loans with 750+ FICO scores had a default rate of 13.5%, much lower than the 18.2% default rate seen with 90-95 LTV loans with 700-750 credit scores.
The more recent data doesn’t show much of a difference, but the data is pretty fresh and mortgage performance has been a lot better.
If you look at credit scores of 700 and below, the default rates skyrocket no matter what the borrower actually puts down. The upside is that they can sell and/or the bank won’t get stuck with an underwater mortgage.
Low Credit Scores Are Always Bad, Low Down Payments Can Be Bad
The takeaway is that a low credit score is always bad
At least relative to higher credit scores
Whereas down payment size isn’t necessarily a default indicator
But you probably still want the borrower to have some skin in the game
What seems to be clear is that a mere two-percent difference in down payment doesn’t lead to many more defaults in normal situations.
More importantly, a low credit score can result in some really ugly stuff, regardless of what’s going on in the market.
Obviously a combination of high credit score and high(er) down payment is best, as you can see from the data, but perhaps we shouldn’t freak out so much about low down payments.
My assumption is that credit scores are a pretty good way to determine if someone will make good on mortgage payments, whereas down payment-related performance tends to be dependent on what happens with home prices.
If home prices take a dive, those with little skin in the game will probably strategically default, but I’m not sure two percent would make a difference.
However, if home prices are steady or up, down payment size probably won’t come into play much, while a low credit score can certainly be a problem.
Put simply, low credit scores are always going to be an issue whereas low down payments can look bad in hindsight if and when home prices tank.
In other words, offering 3% down mortgages to creditworthy borrowers makes sense. Offering them to borrowers with terrible credit scores, FHA I’m looking in your direction, is the opposite of smart.
When an IPO is “oversubscribed” that means certain investors have committed to buy more than the available number of shares that were originally set for the initial public offering.
That’s because when new stocks or bonds are issued via initial public offerings (IPOs), they’re issued in limited amounts, based around the new company’s financing needs and desired debt-to-equity structure.
Depending on investor appetite for the new stocks, IPOs can either be under or oversubscribed; this reflects the level of demand investors have for the shares.
In most cases, though, only institutional investors and accredited investors can subscribe to an IPO stock before it actually goes public. Retail investors may hear about an IPO being over- or undersubscribed, but they typically can’t take advantage of it — although knowing the information may aid an individual’s assessment of the opportunity.
What Is an IPO?
IPO stands for “initial public offering,” which marks the first time a private corporation offers its securities for sale to the public.
In such a process, a portion of the firm’s shares are transferred from private ownership by company insiders to public markets, so that both retail and institutional investors can buy IPO shares.
IPOs are usually initiated for two reasons: 1. To raise additional capital for a firm’s operations, and 2. As a way for company insiders and early investors to cash out their holdings.
During an IPO, a company that wishes to go public will work with an underwriter, or team of underwriters, to value its business, document and register its shares with the U.S. Securities and Exchange Commission (SEC), and market its shares to the investing public.
Once a company’s board approves the IPO sale, the underwriters set the IPO valuations. The investment banks that underwrite a company’s public offering set the IPO price.
These underwriters use several variables to determine the IPO price, including an analysis of the company’s growth potential, a comparison to related firms, and a determination of market demand conditions.
Once the company has the green light to proceed, the underwriting team proceeds to market the shares and take orders from investors.
What Is Oversubscription in an IPO?
Investors interested in IPO investing may be interested in an IPO’s subscription status. If an IPO is oversubscribed, that means there aren’t enough shares of the new stock issued to meet initial investor demand at the listed IPO price.
To compensate for this mismatch in supply and demand, the underwriters selling the IPO can choose to either raise the IPO price to reduce demand, or increase the supply of shares to meet demand. 💡 Quick Tip: Access to IPO shares before they trade on public exchanges has usually been available only to large institutional investors. That’s changing now, and some brokerages offer pre-listing IPO investing to qualified investors.
How Does Oversubscription Work?
Oversubscribed IPOs generate a shortage in shares that usually results in a higher price or additional shares being issued, which can lead to more capital being raised for the now-public company. These funds are also called the IPO proceeds.
This contrasts with “undersubscription” for IPOs. Undersubscribed IPOs are caused by the converse scenario happening, where there’s insufficient investor demand to buy all available shares at the listed IPO price.
What Is Undersubscription?
When an IPO is undersubscribed, it generally signals a lack of enthusiasm for a newly public company and may be the result of either poor marketing, overpricing, or poor company fundamentals.
When an IPO is undersubscribed, underwriters may work to reduce the size of the issue, cut the share price, or pull the IPO offering altogether.
In some cases, as a result of contract terms with the issuing company, underwriters may be forced to “eat” the cost of the IPO and purchase remaining shares at a pre-agreed price themselves. This is generally an undesirable outcome for underwriters as it may force them to hold shares on their books rather than flip them to investors. 💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.
Pros of Oversubscription
Oversubscription can be beneficial to both the issuer and underwriters of new securities, as well as to investors who manage to obtain an allocation of shares around the IPO price.
The issuing company can benefit, as the high demand for IPO shares allows the underwriting team to either reprice the IPO shares higher or offer up additional shares from company reserves to alleviate demand.
In either case, this results in additional funding for the issuing company at more favorable terms while the underwriter generates additional fees.
Early investors to an oversubscribed IPO may benefit from the initial pop in pricing that excitement can generate. This sometimes leads to positive momentum that may continue to push the price upward in the short run.
Cons of Oversubscription
For most average investors, oversubscription ends up being a net negative. First, it’s rare for individual investors to be able to subscribe to an IPO. Typically that’s reserved for large institutional or high-net-worth investors. Then, by the time the average investor can buy the stock, higher pricing may make the IPO opportunity less attractive — with the risk of being overinflated.
If you’re unable to obtain an allocation at the original IPO price, it’s likely that secondary market prices for these securities may be substantially higher due to the high demand for these shares.
While this may not be a concern for long-term investors, this can pose a challenge if initial momentum causes the price of a new security to skyrocket beyond its reasonable fundamental value. This can cause the value of shares to tumble back to lower levels in subsequent months.
This is one of many reasons that retail investors should be cautious about IPO shares. They are a high-risk proposition at best.
Strategies to Maximize the Oversubscription Opportunity
Even if you were one of the lucky few to obtain early IPO shares, there isn’t much you can do to capitalize on an oversubscription opportunity.
If you receive shares from an oversubscribed IPO, you will want to consider both the long-term prospects of the company as well as the short-term prospects for its share price.
Depending on the company and your investment strategy, this will influence whether you intend to hold the security for the long-run or flip the shares for a quick profit.
If you’re unable to obtain an allocation during an IPO, it’s likely that the oversubscribed IPO would see its shares bid up in the secondary market. In this case, it’s not a bad strategy to wait a few weeks, or even months, after the initial IPO to see whether prices come back down — and gauge the company’s prospects from there.
In some instances, shares often decline a few months later after the expiration of the initial lockup period, once insiders are free to sell their shares. However this isn’t always the case, and can vary widely from company to company.
Seek Advice From a Professional
If you’re allocated shares from an IPO and are unsure of what to do with your new holdings, it might be worth consulting with a financial advisor or investment advisor to determine your next steps.
Financial professionals can help inform your decision making on how to proceed with an oversubscribed IPO. However, the final decision will ultimately be up to you and should be made within the context of your overall investment portfolio.
Do Your Research
Regardless of whether you’re able to gain access to the IPO, you should base your investment decisions on your own due diligence and fundamental analysis, i.e. a thorough review of a company’s disclosures, financial statements, and future prospects.
Reviewing the track record of company executives and the board of directors can offer insight into how competent the company’s management may be when it comes to executing on long-term strategies.
Thoroughly reading the prospectus of the new IPO shares can help you understand the core drivers of a firm’s business, its core customer base, key markets, and major risks it might face.
Additionally, there’s a multitude of research out there that follows your stock’s performance on both fundamental and technical grounds; these can go a long-way towards informing your investment actions for new IPOs.
The Takeaway
Oversubscriptions for hot IPOs can sometimes offer opportunities for investors who are able to secure allocation of shares; however, they can also turn into feeding frenzies for retail investors who wish to buy these securities on the secondary market.
The resulting media blitz, and (typically) wide swings in valuations, can easily end with inexperienced investors getting burned on the share price. In short: IPOs can be volatile. To protect yourself, it’s important to understand the drivers of IPO pricing and how it impacts demand.
Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
What is the meaning of oversubscription?
Oversubscription, as it pertains to IPOs, refers to a supply and demand mismatch of the newly issued IPO shares. Either the price must adjust upward, the supply of shares issued must be increased, or a combination of the two must occur to meet investor demand.
In the event that the supply of IPO shares is unable to meet all investor orders, shares will typically be issued out to investors on a partial pro rata basis, or in proportion to each investor’s requested order size, subject to minimum block sizings.
In some instances, a lottery system may be implemented to maintain impartiality. Any unfilled orders will be rejected and cash returned to investors.
How can you calculate oversubscription?
At the basic level, IPO oversubscriptions are calculated as a ratio of the aggregate order size for IPO shares relative to the total number of IPO shares available to be distributed.
For example, if there are 1,000,000 shares of new stock available for an IPO pricing, but the underwriters receive an orderbook totaling 3,000,000 shares from investors, this IPO would be considered “3X oversubscribed.”
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Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
While Rhode Island is the smallest state in the nation, it packs a lot of charm and natural beauty into its 1,214 square miles. Living in the Ocean State gives you access to its 400 miles of scenic coastline, quaint seaside towns and fresh, delicious seafood. Life is laidback and easy. But, as is the case with most New England states, the overall cost of living in Rhode Island is on the high side.
You’ll find that cities like Providence and popular coastal retreats like Newport have the most expensive cost of living. But, that doesn’t mean you can’t find nearby towns or cities that are more affordable. No matter where you live in Rhode Island, you’re never far from its vibrant cities, picturesque coast and fantastic art, culture and dining. This in-depth look at Rhode Island’s cost of living will help you find the best city or town to call home.
Rhode Island housing prices
That romantic vision of living in a seaside town or city in New England will cost you big in Rhode Island. Housing costs here are well above the national average. You can expect high rental rates and home prices throughout the state, with the highest rates in popular cities like Providence and Newport. The good news is that more reasonably-priced towns are never far away from major urban centers. So, you’re likely to find lower rents and home prices in the general area you want to live in.
In Rhode Island, housing costs are 19.6 percent above the national average. The average monthly rent for a one-bedroom apartment in Providence climbed 34 percent from last year to $2,410. Two-bedroom units have an average monthly rent of $2,700, up 12 percent from last year.
In Newport, another major Rhode Island city, one-bedroom units are $2,000 and two-bedroom apartments are $2,500. You’ll be paying around $1,550 for a one-bedroom and $1,750 in Cranston, Rhode Island’s second-most-populous city.
The median sale price to buy a house in Providence has gone up 14.1 percent over the past year to $405,000. This is fairly close to the national median sale price of $428,006.
Rhode Island food prices
Seafood lovers will have a field day living in Rhode Island. This coastal state has tons of famous seafood dishes, like Rhode Island clam chowder, clam cakes and Rhode Island-style calamari. Rhode Island is also famous for its domestic chicken breed the Rhode Island Red. But, for access to all these unique local specialties, you’ll be paying more than the national average.
For total grocery costs, Rhode Island is 8.7 percent above the national average. Even though food costs here are elevated, the amount of money that Rhode Island residents spend on food each month is pretty middle-of-the-road. The average Rhode Island local spends between $233 and $266 a month on food. Annually, that comes out to between $2,801 and $3,200.
Luckily, food costs in Providence are significantly cheaper than the statewide average. They actually fall 1.2 percent below the national average.
As a few examples of food prices in Providence, a dozen eggs cost $2.13. Buying a half-gallon of milk will set you back $2.19, and a loaf of bread is $4.27.
Rhode Island utility prices
When it comes to utilities like electricity and water, you’ll be paying more than the national average living in Rhode Island. In the capital city, it’s especially high at 22.9 percent above the national average.
As an example of how high utilities costs are in Providence, let’s look at some average monthly bills. Total energy costs for the month come out to around $242.81 in Providence. For water, the average statewide bill is $28.
This New England state relies on natural gas for the majority of its electric generation, followed by hydropower and petroleum. Reservoirs and rivers supply the drinking water.
Rhode Island transportation prices
One of the benefits of living in Rhode Island is that its small size allows mass transit almost everywhere. The Rhode Island Public Transit Authority provides public transportation throughout the state with its fleet of buses and vans. Its main hub is Kennedy Plaza in downtown Providence. Bigger cities like Providence and Newport have larger, extensive systems with more frequent service and stops. But rural, regional and express long-distance routes between cities are also available, as well as paratransit and vanpool commuting options.
If you don’t want to use a bus, this coastal state also has ferry routes. The private Seastreak company operates a Providence to Newport ferry route between coastal cities like Providence, Bristol and Newport. One-way fares cost $12 and roundtrip is $24.
If you do plan on using a car, Rhode Island does have some toll roads and bridges. Although I-95, a major interstate highway that runs through the entire state, does have tolls, those only apply to commercial trucks and tractor trailers. The Clairborne Pell/Newport Bridge near Newport charges a $2 toll for residents with E-ZPass and $3 otherwise.
Using public transportation is a great way to save money. It’s also more environmentally friendly and can reduce traffic congestion and commuting times. But the total cost of transportation in Rhode Island cities is above the national average. So, whether or not using mass transit saves you money depends on your personal situation.
As Rhode Island’s capital city and most populous urban center, transportation costs are higher in Providence at 6.9 percent above the national average.
RIPTA in Providence
Providence is one of the main hubs for RIPTA service, centered around downtown’s Kennedy Plaza. A range of fixed-route, rapid bus and high-frequency routes run through the city center, with some routes extending out into the metro area. A one-way ride costs $2 and a day pass is $6. Using the WAVE fare collection system, a monthly pass is available for $70. You can pay fares in cash or with the WAVE card or app.
Overall, RIPTA does a decent job of connecting Providence through mass transit. Its transit score is 56. As a compact coastal city, you can also easily get around Providence on foot or by bike, as well. It has high scores in both areas, with a walk score of 84 and a bike score of 69.
Rhode Island healthcare prices
If you’re looking for a state that offers good healthcare for reasonable prices, Rhode Island fits the bill. It ranks ninth in the nation for its overall healthcare and is fourth in the nation for healthcare access. The quality of its healthcare and general public health is also high.
The costs for this high-quality level of care are also reasonable. For example, the average cost to go to a doctor’s office in the state capital is $132.24.
If you want to go to the dentist in Providence, it costs around $115. Several of the top-ranked hospitals in Rhode Island are also located in Providence, giving locals near-instant access to top-tier care. The overall cost of healthcare in Providence is almost on-par with the national average at only 0.7 percent above the national average.
It’s difficult to calculate average healthcare costs, though. Based on personal factors like pre-existing conditions or medication needs, healthcare costs vary widely from person to person. The above healthcare figures are rough estimates, so you may pay more or less for things like doctor’s visits depending on your healthcare needs.
Rhode Island goods and services prices
Living in Rhode Island, you’ll be paying more than the national average for miscellaneous goods and services. Overall, those costs are 13.8 percent above the national average.
But, compared to other big cities in the region, it’s more affordable in Providence. Paying for a haircut in nearby Boston is $43.33, but in Providence, it only costs $28.67. Want to go to a movie? You’ll pay $13.83 for tickets in Providence compared to $14.96 in Boston. But, some services are more expensive here than in other regional cities. In Hartford, CT, which is just over an hour from Providence, dry cleaning costs $16.99. In Providence, that dry cleaning bill will be closer to $17.50.
Taxes in Rhode Island
When calculating your monthly budget and expenses, taxes are sometimes overlooked. But whether in the form of sales tax or income tax, living in a state with high tax rates does have an impact on your bottom line. If you’re living in a city with high sales tax, it can quickly whittle away at your budget. Knowing tax rates in your state will help you better understand and prepare for spending.
In Rhode Island, the statewide sales tax is 7 percent. That means that, if you spend $1,000 on clam cakes and other local goodies, you’ll be paying an additional $70 in sales tax.
While 7 percent is a decent mark-up, the good news is that cities and counties in Rhode Island don’t levy a local sales tax. That means that the sales tax rate in Providence is the same as the statewide rate of 7 percent.
For income tax, Rhode Island has a graduated individual income tax system. Rates range from 3.75 percent to 5.99 percent depending on your income level.
How much do I need to earn to live in Rhode Island?
As you can see, the cost of living in Rhode Island is expensive. So, how much do you need to make to afford to live there?
Usually, your biggest monthly expense is housing costs like rent or a mortgage payment. Experts recommend that you only spend 30 percent of your gross monthly income on rent. This general rule of thumb ensures that you have plenty of money left over after paying rent for other expenses like food and utilities.
In order to afford Rhode Island’s average rent of $2,196, you need to make $7,320 a month or $87,840 annually. However, the median household income in Rhode Island is $70,305 and the average salary is $65,317. So, some residents may struggle to follow the 30 percent rule and will need to spend more on housing.
Our rent calculator can help you determine what you can afford to pay in rent based on your income, expenses and location.
Living in Rhode Island
As you’ve seen, living in Rhode Island isn’t always cheap. Access to its scenic coastlines, fun cities and great cuisine requires a high income or flexibility with living outside the major cities. But, since you can find lower rents in smaller cities and towns, you can enjoy Rhode Island’s charms at a variety of price points.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
No matter what we’re planning to spend, whether it’s money or time, we want to make an informed decision so not to have a less than stellar experience. This is where online reviews, whether it’s for a positive experience or a negative review, can make a difference. We rely on feedback from others to help us make decisions. A well-written review of apartments or apartment communities is possibly the reason someone rents an apartment or not.
More than 37 percent of people live in an apartment, according to National Multifamily Housing Association, and reviews can help people decide whether to rent in a particular building or not.
Writing an apartment review isn’t difficult and can improve accessibility for some in your apartment community. Are renters’ rights protected, for example, or are the units safe and up to code? Sometimes, those things get mentioned in a review.
It’s also important to know as you read or evaluate reviews that not all are objective. An apartment’s website is only one piece of information but a great apartment review can share feedback on how management works and the overall strength of an apartment community. Keep reading to learn how to read and write accurate apartment reviews.
How do you evaluate an apartment review?
There are a few telltale signs of great apartment reviews that are helpful. Does the person begin with facts, including when they rented the apartment and details about maintenance issues or amenities on the property? Did the person have issues with others? Did they deal with the office staff, apartment manager or landlord with issues on their properties?
If you see multiple reviews by residents about details within the apartment that don’t work or they focus on specific issues they’re constantly bringing to their landlord, it’s worth noting because it’s more than just one person having a problem with their apartment.
Pay attention to how residents address or discuss what’s mentioned in the apartment reviews. Do they bring it to the attention of the property manager? Does it take five business days or more for management to respond once someone makes contact? Do they request a face-to-face meeting and share the progress of a complaint? Is the review written in complete sentences?
An apartment’s website is only one piece of information but apartment reviews hold so much information.
Be wary of the bad reviews
Also, consider an author’s motive when writing online reviews. Do they resort to bombastic name-calling? Did they write a review about the apartment? Did the author mention the company, apartment community or focus on a specific contact at the company?
Consider who would most benefit from this review. Remember, writing online reviews, whether it’s on a specific site or on a social media page, is free. It’s one thing to get feedback beyond what’s on a website that is helpful but writing a hit piece doesn’t benefit the apartment community as a whole.
How do you evaluate an apartment community?
Many people look at a specific property when searching for a new apartment but it’s a good idea to see how residents rate their apartment community on various sites, too. Those are helpful and are more objective than what a website includes in terms of how people who live in the apartment engage with various amenities and how they feel management handles things.
How do you write a review for an apartment?
When writing reviews to post on various sites, you want to share feedback you feel others would find helpful when deciding whether to rent a place. Apartment communities may matter just as much as individual apartment units so consider a review that covers as much detail as possible.
Polite articulation in any review will garner more appreciation from the reader. Whether you discuss relevant accessibility standards being subpar or share feedback about an issue in progress, those reviews can help the reader better understand what living in this apartment community will look like as a matter of course.
As you would expect to read in a review, post information including when you lived (or if you’re still living) in the apartment and any tips you’ve learned by living there. Is management generally responsive to issues or does the office staff ignore issues? Does the landlord read reviews and makes improvements based on any tips or suggestions that someone takes the time to post? All of these details can help someone make an informed decision about their next address.
How important are apartment online reviews?
A review is only as good as the author but apartment reviews that someone takes the time to write and post with great feedback and tips are very helpful. No one wants to move into a place that might have too many problems or that management ignores — those are the kinds of things that pop up in apartment reviews.
Reading and writing accurate apartment reviews can save you time and money
Writing online apartment reviews doesn’t need to take a lot of time but writing an objective one can help you learn and discuss what you find important when seeking an apartment to rent. Reading and knowing how to evaluate reviews can save you time and money in the long run. A well-written review that highlights key issues is a possible deal breaker, while one that mentions amenities and benefits can seal the deal. It’s worth taking the time to write a good (or bad) review, as well as reading them to help you make the best decision on your next place.
As a Chicago-based freelance writer, Megy Karydes has covered everything from space-aged tomato seeds grown in a Chicago Public School to Chicago Blues musician Lurrie Bell. Her work has been featured in USA Today, Travel + Leisure, Midwest Living magazine and other national and regional media outlets. When she’s not out exploring the city with her two children and husband, she’s perfecting her air hockey technique.
Today I’m excited to feature a dear friend and fellow Seattle-ite, interior designer, Brian Paquette! Brian and I had the pleasure of working on the Sunset Reimagined Home he designed the kitchen! together, but if that wasn’t enough work, Brian was also in the process of designing, not one, but two more entire homes for Sunset Magazine’s Idea Town in Seabrook, Washington.
Brian designed two color-filled beachfront homes with guest cottages that exemplify what Sunset is all about: casual, beautiful interiors and innovative ideas. I am in awe of interior designers like Brian, so I was dying to ask him for some advice. From color application tricks, financial planning tips and his favorite Etsy shops…it’s all right here – along with stunning images of his designs of course!!
Tell us a little bit about the inspiration behind this project. Where did you start in the design process?
I let the natural landscape that surrounded Seabrook be the guiding force here, amplifying the tones a bit to bridge the gap between inside and outside. While walking the massive beaches early in the morning, you can be surrounded by this overwhelmingly comfortable purply fog to the point that you don’t know where the ocean, sand and sky begin or end. All of a sudden, something like the sharp green of the lush landscape or even a piece of colored ship rope pops into view. This stark contrast was how I approached the homes. Being true to nature while also turning it on it’s head, just a tad!
What was the biggest hurdle you had to overcome when designing the homes?
Honestly, most of the process for me is intuitive at this point, but trusting my gut and my inspiration can be a little scary, especially when you have the wandering imagination and bold inclinations that I sometimes have. Time was also a big hurdle, we all had to work fast and smart.
The homes are full of color. What is your fail-proof color palette trick?
When using a bold color, use it in more than one way. For example, we can look at the true green you see throughout the project. I used it in everything from upholstery, to tile, trim paint, pillow welting and in accessories. By using variations of the green hue throughout all of those details, it makes the room look more thought out and textured.
Do you have a design mantra or rules you live by that other people could follow and apply in their own home?
Never stop evolving and changing and looking and learning. The process and excitement of discovering something new and the inspiration that could follow is priceless. Take every trip possible, go down the unexpected path that says “no entry”, read everything!
What is your go-to, perhaps insider!, source that is open to the public? A great Etsy shop or maybe a box store that carries your favorite items?
Not so much of a secret, but after getting the first layer of upholstery, rugs and textiles in a room and then piling in the old stuff like antiques, found pieces and art, I like to pepper in accessories from a lot of different box stores, but my fail-proof stop has to be West Elm. They really have it down, from bedding to vases and ceramics! I am also constantly inspired by some of the artists on Etsy like Jeremy Miranda and Michelle Morin.
Running your own business and being an entrepreneur is a challenging thing. What has been the most surprising thing you’ve learned? Any advice you would give your 25 year old self?
Oh gosh, don’t get me started! I will say I have had some of the best mentors a boy could ask for, but when it comes down to it, I’d suggest two things:
1. Get a financial planner now. You could have 5 dollars in your bank account and a steady job and they could still help you.
2. Not only build, but maintain your network of tradespeople, mentors, creatives etc. It isn’t enough to just meet someone at a party and take their card. True and real connection and an interest in humbly learning something new is where dreams become realities!
There are just so many good things about Brian’s designs. I love that he relied on Seattle based designers in the blue dining room and for his custom artwork from Jennifer Ament hello, crazy good gallery wall in a stairwell! taking notes on this one. I love that Brian is making our hometown proud!!
And did you notice the special project on the stairs? Brian blew up and pixelized images he found of clam diggers on the beaches just outside the homes, from the 1920’s. He then decoupaged them onto the stair risers. It’s such a fun DIY that anyone can do in their home!
I want to thank Brian for all of the great advice he shared with us. It’s such a treat to get behind the scenes of the thought process that goes into design! If you are in the Washington area, the homes will be open to the public through October. If you’d like to tour these beauties in person, find more info here!