Lowering your debt to improve your credit score means that you are considered less of a risk to a lender. And with a higher credit score, you will qualify for better financing terms. However, in some cases, paying off a car loan or other type of financing can have the opposite effect and actually lower your credit score.
Here’s a look at why your score could suffer if you pay off a loan. We also look at how you can avoid a drop in your credit score when your financial situation changes.
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Why Did My Credit Score Fall After Paying Off My Car?
A credit score drop could be a direct result of paying off a car loan — or a completely unrelated reason. For example, if you apply for a loan or new credit card, the lender may do a “hard pull” to check your credit score. Too many credit checks within a short period could cause a temporary drop in your credit score, even if you don’t sign for the loan.
If you pay off a car loan, the loan will remain on your credit report for up to 10 years. As long as you always make your payments on time, the loan will continue to have a positive effect on your credit history. Newer accounts, however, have more of an impact on your credit score. So, if you close an old account that you dutifully paid off, your current credit standing could worsen because your regular payments to that old account are no longer taken into consideration.
In addition, when you pay off a car loan, your credit mix changes because you now have one less account in your name. This change can lead to a drop in your credit score.
Let’s take a closer look at factors that affect a credit score and how paying off a car loan can impact them.
Credit Score Contributing Factors
Auto loan lenders typically look at your FICO™ Score or your VantageScore. We’ll focus on the FICO Score because it’s probably the most popular. Four main factors make up your FICO credit score with varying weights. Here’s a look at each of them.
Payment History
Your payment history makes up 35% of your FICO Score, and it is a measure of how likely you are to pay back your debts. The score looks at whether you pay your credit card bills, your mortgage, and any installment loans on time. A few late payments on credit cards or a mortgage won’t ruin your score, but any bankruptcies or collections may. If you need help spotting upcoming bills and managing payments, tools like a money tracker app can help.
Credit Utilization
Your credit utilization rate makes up 30% of your FICO Score. This is the amount of revolving credit versus the total amount of credit available to you. The lower your utilization percentage, the better your credit score because it shows you are not maxing out your credit — so you’re better able to pay back a lender.
Your total available revolving credit includes the amount you can spend on credit cards and lines of credit like home equity lines of credit (HELOCs). Your credit utilization rate is based on the numbers on your credit report, and this data may lag behind your current limits and balances by a month or more.
A car loan has no impact on your credit utilization rate. However, it can affect your total debt and your debt-to-income ratio.
Length of Your Credit History
The length of your credit history accounts for 15% of your FICO Score. A longer credit history will have a positive effect on your FICO Score. Your credit history takes into account how long your credit accounts have been open, including the age of your oldest account, the age of your newest account, and the average age of all your accounts. So when you close an older credit card account, you may see a drop in your score — regardless of whether you’ve paid off your car loan.
Credit Mix
Your credit mix is the type of credit you have — for example, credit cards, mortgage, HELOCs, installment loans, student loans, and car loans. Your credit mix accounts for 10% of your FICO Score. If you are successfully managing a variety of financing types, it will be reflected in your FICO Score. After you pay off a car loan, your credit mix decreases, and your credit score may dip as a result.
New Credit Card Applications
When you apply for a new credit card, the provider will do a hard inquiry on your credit score that could cause it to dip slightly. A new account will reduce the average age of your accounts, which could also lower your score.
On the other hand, a new credit card account will increase the amount of credit available to you, which might lower your credit utilization rate. It might also diversify your credit mix, and if you make payments on time, it could build a stronger payments history.
Recommended: 8 Reasons Why Good Credit Is So Important
How to Pay Off Debt and Help Your Credit Score
Paying off debt should boost your credit score, but in some cases, it can damage it. For example, if you pay off debt and close credit card accounts, you may not be able to demonstrate to the credit bureaus that you make regular payments and practice responsible fiscal management.
Here are some ways to pay off debt that are unlikely to lower your credit score.
• Pay due amounts on time. Your payment history is the most important component of your credit score. You can improve it by paying off your credit card balances in full each month and also paying your mortgage on time.
• Pay off high-interest debt. High-interest credit cards can trap you in a spiral of debt if you don’t pay off the balance each month. Pay off these cards first so you reduce the likelihood that you will fall behind on payments and rack up interest charges. This will benefit your credit score because lenders will consider you less of a risk.
• Pay off debt with cards with low credit limits. If you are maxing out the credit limit on a card with a low credit limit, your credit utilization rate may be high because you have more debt than you have accessible credit. That makes you a high risk to a lender and will reduce your credit score.
Try to keep your credit utilization rate below 30%, and ideally around 10%. By paying off credit card debt with a low credit limit, you reduce your debt load but maintain access to the credit, improving your credit utilization rate.
• Pay off your student loans (maybe). Paying off your student loans may or may not be beneficial. It will reduce your debt-to-income ratio; however, regular student loan payments contribute to a healthy payment history. Also, student loans add diversity to your debt mix, so paying off this type of installment loan might negatively impact your credit score.
• Pay any past-due bills. Paying off old debts that are late shows lenders that you pay what you owe. Pay the most recent bills first.
How Do I Keep My Credit Score From Dropping?
Practicing good fiscal management will help keep your credit score from dropping. Keep in mind that closing old credit card accounts and paying off some debts may backfire. Maintain a credit utilization rate that’s below 30%, and most importantly, pay your bills on time.
How Long Does It Take for Your Credit Score to Improve After Paying Off Debt?
Paying off debt may not necessarily improve your credit score, and your score may show a decrease initially. However, in most cases, your score should reflect a better credit utilization ratio in one or two months.
Keep in mind that a car loan has no impact on your credit utilization score.
Recommended: How Often Does Your Credit Score Update?
Ways to Increase Your Credit Score After Paying Off a Loan
If your credit score dropped when you paid off a car loan or other loan, do some research to find out why. Then, there are various things you can do to remedy the situation and build back credit.
• Avoid late payments. Setting up automatic payments and using a spending app can help you to avoid missed payments.
• Check your credit utilization rate. Check that by paying off a debt and closing an account, you have not raised your credit utilization rate to over 30%. Aim to spend no more than 10% of your total available credit.
• Avoid closing out older credit accounts. Keep older credit accounts open, even if you never use them. This will lengthen your credit history.
• Limit new credit inquiries. Be careful when shopping for new credit cards or loans. Hard inquiries by lenders within a short period (around 14 days) will lower your credit score. Try to find lenders that will prequalify you for financing without a hard inquiry.
• Improve your credit mix. Try to use both credit cards and installment loans responsibly by making regular, timely payments.
However, remember that a variety of loan types will only have a small impact on your credit score. It’s not advisable to take on extra debt just to fulfill the need for a diverse credit mix.
How to Monitor Your Credit Score
When it comes to credit score monitoring, you have plenty of options.
Federal law allows you to view a free copy of your credit report from each of the three national credit bureaus (Experian, TransUnion, and Equifax) at AnnualCreditReport.com.
You can also use a credit score service. Some sites provide a free credit score to users. Others may provide credit scores if you pay a monthly subscription fee.
Some credit card companies, banks, and lenders have started to provide credit scores for their customers. Check your statement, or you may be able to access it online after logging into your account.
If you find information you believe is inaccurate or incomplete on your credit reports, you can also file a dispute with the credit bureau that provided the report.
The Takeaway
Paying off a loan, such an auto loan, can have an unexpected negative effect on your credit score. This may be because of a decrease in your credit mix, a change in the length of your credit history, or another factor that contributes to your credit score.
It’s important to monitor your credit report and your credit score and understand why any changes occur. That way, if your credit score drops, you can take steps to remedy the situation, such as paying off the balance on credit cards, improving your credit mix, and watching that your credit utilization rate stays below 30%.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Why did my credit score go down after paying off my car?
If you pay off a car loan, the loan will remain on your credit report for up to 10 years, and as long as you always make your payments on time, the loan will continue to have a positive effect on your credit history. If you remove that loan, your current credit standing could worsen because you have less of a credit history.
How long does it take for your credit score to go up after paying off my car?
In most cases, your score should go up in one or two months if other factors do not come into play, such as a limited payment history or closing an unrelated credit account.
Why is my credit score going down even though I pay on time?
A change in your credit history could cause your credit score to drop. For example, if you apply for new loans or credit cards within a short timeframe, the hard checks conducted by lenders may cause a temporary drop in your score even if you don’t sign for the loans. Also, if you close out old credit cards, you could be shortening your credit history, which will lower your credit score.
Photo credit: iStock/milan2099
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Dynamic pricing is a strategy used by retailers and service providers to automatically raise or lower prices based on current market conditions. Companies who use dynamic pricing rely on technology, including artificial intelligence, to shift prices up or down based on a set of factors that can include availability of the product or service, customer demand and competitor pricing.
For example, prices might increase automatically at a time of high demand and limited supply. This form of dynamic pricing is often called surge pricing. But dynamic pricing can also mean prices go down at a time when demand is low or there’s a surplus of the product.
The concept behind dynamic pricing isn’t new. Movie tickets are cheaper during the day and restaurants host happy hours before the dinner rush because it gets people in the door during a typical slow period. But advances in technology have made it possible to change prices automatically based on real-time data. That makes dynamic pricing appealing to businesses because it’s not only faster, but also more efficient, since algorithms process the information and determine the optimal price.
Where consumers encounter dynamic pricing
Dynamic pricing is increasingly common in a variety of industries and settings. In a recent NerdWallet survey, many consumers reported being resistant to the concept.
Airlines are considered early adopters of dynamic pricing, which they embraced as they overhauled their pricing models in the 1980s when the industry was deregulated. Airlines optimize ticket sales by changing prices based on how far in advance travelers book their seat, demand for the destination, time of departure, seat selection and other factors. The strategy later spread throughout the travel and hospitality industries.
Online retailers also use dynamic pricing technology to adjust the cost of goods as the market for them shifts. Amazon is known for raising or lowering prices multiple times a day based on availability, demand, competition and other factors. Walmart and Target also use dynamic pricing for goods sold online.
Ever-changing online prices are one thing, but the debut of digital price tags at brick-and-mortar stores like Walmart has caused many to worry in-person prices will become unpredictable, as well. So far, the retail giant says it won’t use dynamic pricing in its stores.
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Fast-food restaurants including McDonald’s, Burger King, Starbucks and others are brick-and-mortar examples of dynamic pricing in action. (Wendy’s could join their ranks in 2025.) They rely on common low-tech tactics, like offering deals on food and drinks during slow parts of the day. But they’re also leveraging consumers’ love of online ordering by offering perks (and even lower prices) through their apps.
App-based services like Uber, DoorDash and InstaCart are open about their use of surge pricing, which is a form of dynamic pricing. When demand for service is high at a particular time or in a specific location, customers will see higher-than-usual prices.
Dynamic pricing can be good for consumers
One upside of dynamic pricing is that, to a point, companies can be just as driven to lower prices as they are to raise them, because discounts tend to increase demand and, consequently, sales. This principle has become obvious in recent months as more businesses see consumers pulling back on spending because everything is so expensive. To bring up sales, companies lowered some prices, from grocery stores that marketed summer discounts to fast-food chains that rolled out cheaper menu options, like McDonald’s new value meal.
So, as dynamic pricing becomes more ubiquitous, consumers could start finding deals left and right if they’re willing to wait for them. With browser extensions like Honey or the Camelizer, which track prices and find coupons, bargain-hunters can be sure they’re buying at the lowest price.
At the same time, when companies raise prices during a period of high demand, it can mean people who are willing to pay a premium face less competition for a limited supply of goods. So if you really, really want tickets for a Taylor Swift concert, and you’re willing to pay more for them than other people, you can do that.
But it can also be bad
There’s a difference between getting priced out of something you want — like tickets to see your favorite pop star — and something you need. That’s why companies face criticism (and sometimes legal trouble) when they raise prices on essential goods and services during an emergency.
There also can be a lack of transparency in dynamic pricing. As more and more companies adopt the strategy, they’re fluctuating prices for goods and services that consumers expect to be fixed. So, it’s not always clear to customers when or why they’re paying higher prices and how they could avoid doing so.
And there’s another degree of opaqueness that’s more worrying. Companies are gathering tons of personal information on their customers every day, which they can leverage to set prices at an individual level. The Federal Trade Commission calls this “surveillance pricing,” and has raised concerns about how it could lead to consumers unwittingly paying more.
The FTC has opened an inquiry into how companies use a person’s data — such as location, demographics, credit history and browsing or shopping history — to set prices. In July, the commission sent orders to eight companies that offer pricing products and services to businesses, calling for information on what data is collected, how it’s used and what impact that could have on prices.
The eight companies include Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co.
A minor drop in your credit score — like the less-than-five-point drop you’ll temporarily encounter after a hard inquiry when applying for credit — is nothing to sweat in the long term. But a 40-point drop is more worrisome.
Are you asking yourself, “Why did my credit score drop 40 points after paying off debt,” following a credit dispute or for no reason at all? We’ll break down what might be happening to your score below.
Why Did Your Credit Score Drop 40 Points?
Your credit score is a number based on several factors that appear on your credit reports from various credit bureaus. And in fact, you have more than one credit score, though the most common one people refer to is your FICO Score. Because it’s complex — and there’s more than one — there are many reasons your credit score may have dropped 40 points.
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Reasons Your Credit Score Went Down
There are several reasons your credit score could have gone down. Here are the main culprits:
• You made a late payment (or several late payments), which were reported to the credit bureaus. A spending app can help you track upcoming bills so you don’t miss a due date.
• You paid off a loan or credit card, which decreased your average age of credit and your credit mix and also affected your credit utilization.
• You applied for a new loan, which resulted in a hard inquiry.
• You’ve increased your credit utilization, perhaps by maxing out your credit cards.
Often, a sudden 40-point decrease in your credit score is the result of two or more of these actions happening all at once or close together. A hard inquiry, for instance, results in only a five-point decrease in your credit score. But if that hard inquiry was for a credit card that you immediately maxed out and then missed a payment on, you’re much more likely to see a larger decrease in your credit score.
There’s one other important reason your credit score may have dropped 40 points: You could be the victim of identity theft, meaning someone is using your personal information to open new lines of credit in your name and then maxing them out to purchase things for them.
Recommended: How Do I Check My Credit Score Without Paying?
Should You Be Worried About Your Credit Score Dropping?
A minimal drop in your credit score is no cause for concern, but a larger drop, such as 40 points, should be alarming.
If your credit score dropped because of your own actions — overspending on credit cards, missing payments, etc. — do your best to get your financial habits back on track. Tools like a money tracker can help you monitor your spending and credit score.
However, if your credit score dropped by 40 points for no reason, you could be the victim of identity theft. Check your credit reports for signs of suspicious activity. If you notice any, you need to freeze your credit reports and begin the remediation process. Here’s how to report identity theft.
What Can You Do If Your Credit Score Dropped by 40 Points?
If your credit score has dropped by 40 points, here are some things you can do:
• Make on-time payments. Ensure all your bills are paid on time and in full, every month.
• Reduce your credit utilization. Stop swiping your credit card unless you can immediately pay it off. Pay off as much of your card as you can, but resist the temptation to spend more with it. Lowering your credit utilization is crucial to repairing your credit score.
• Keep old accounts open. Average age of credit is one of the major factors that affect your credit score. Keeping an old account open, even if you don’t use it, will help keep your score from falling further.
• Review your credit report for errors. Simple reporting errors could be hurting your score. It’s a good idea to familiarize yourself with common credit report errors and how to dispute them.
• Report identity theft. If someone has opened a credit card in your name, follow the proper steps to report the identity theft to the lender, the credit bureaus, and the authorities.
Recommended: Why Did My Credit Score Drop After a Dispute?
How to Build Credit
While establishing and improving credit takes time, there are several steps you can take now to help repair your score after a 40-point drop. Here are some basic actions you can take:
• Make on-time payments. Turn on autopay for all your bills, and make sure there’s always enough money in your checking account to cover the costs.
• Stop spending on credit. Having a credit card with a high credit limit makes it easy to spend more than you should. But you should only use a credit card if you have the money to pay it off immediately (or for emergencies).
• Keep old cards open. Don’t forget — old cards that you don’t use help keep your credit utilization down and help keep your average age of credit higher.
• Monitor your credit. Regularly monitor your credit report and dispute any errors.
• Don’t apply for credit often. Apply for credit only if you absolutely need it, like to buy a car or a house.
What Factors Impact Credit Scores?
Several factors impact your two main credit scores (FICO Score and VantageScore). The two scoring companies use different algorithms to calculate your score; we’ll focus on FICO because it’s more common.
Here are the five major factors that affect your credit score — and how much weight each one has on your score:
• Payment history: This accounts for 35% of your score. Lenders want to see that you make on-time payments for all your debts. Mortgage and rent payments, utility bills, and other loan repayments (such as credit cards or personal loans) will show up on your credit report.
• Amounts owed: This is your credit utilization, and it accounts for 30% of your score. Creditors love to see that you have a high credit limit available to you, but that you use very little of it. This shows you’re a responsible borrower.
• Length of credit history: This accounts for 15% and is why keeping old cards and accounts open is important. It demonstrates to lenders that you’ve been borrowing responsibly for a long time.
• Credit mix: This makes up 10% of your FICO Score. Lenders like seeing that you can manage a healthy mix of credit accounts (credit cards, installment loans, home loans, etc.).
• New credit: If you open too much new credit all at once, that sends a sign to creditors that you may be a high risk. This makes up 10% of your score.
Allow Some Time Before Checking Your Score
After a major drop, it’s tempting to want to monitor your credit score every day for signs of an upswing. But be patient — it can take time before you see an improvement.
While credit score updates happen fairly often, they don’t happen on a set date. That’s because a lender or creditor can send information to the main credit bureaus at different times, which will impact when a score changes. That said, you can plan on an update occurring at least every 45 days.
Closing a Credit Card Account Can Hurt Your Score
Considering closing a credit card account? You may want to think twice, as doing so could negatively impact your credit score.
When you close a credit card, the amount of your available credit decreases. This, in turn, may lead to a higher credit utilization, which as we mentioned above counts for 30% of your score. Closing a card also decreases the length of your credit history, which makes up 15% of your score.
However, there might be times when closing a credit card makes the most sense for you, such as a separation or divorce or a card with a high annual fee. The good news is, there are ways to cancel a credit card without affecting your credit score.
How to Monitor Your Credit Score
You can monitor your credit score in a number of ways. Your bank or credit card issuer may offer credit score insights in your mobile banking app, and you can check your FICO Score for free with Experian. Several money management apps offer free credit score monitoring, including access to your FICO Score or VantageScore.
Pros and Cons of Credit Monitoring
Credit monitoring services offer several advantages, but there may be drawbacks to consider.
Pros
• Real-time alerts when your score changes
• Analysis and insights to help change borrowing behavior
• Identity theft protection
Cons
• Potential cost
• May not offer insights to all three bureaus
The Takeaway
A sudden, unexpected drop in your credit score can be scary. This is especially true if you’re trying to build credit and have been responsibly paying your bills on time and keeping your credit utilization in check. It’s wise to use credit monitoring services so you’re always updated when something changes on your credit report, as it can help you spot errors or even stop identity theft before it gets out of hand.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Why is my credit score going down if I pay everything on time?
Even if you make on-time payments, your credit score can drop if you open too many new accounts at once or use up all your available credit every month. A major drop in your credit score could also indicate errors on your credit report or, even worse, identity theft.
Why has my credit score gone down when nothing has changed?
If nothing has truly changed in your finances, your credit score would likely only drop because of an error on your credit report or identity theft. It’s always important to monitor your credit to stay aware of these things. If it’s not a case of error or identity theft, consider your recent credit actions: Did you max out a card or close an old account? These can lead to drops in your credit score.
Why did my credit score drop 40 points when nothing changed?
If your credit score dropped 40 points and nothing changed on your end, check your credit reports with all three major credit bureaus immediately. It’s possible there is an error or that you are the victim of identity theft, meaning someone is using your name to open new credit accounts.
Photo credit: iStock/Miljan Živković
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Welcome to my Decluttr Review! Are you thinking about selling some of your stuff to make extra money? Decluttr might be the perfect way to sell your stuff online instantly as this is one of the best selling apps for electronics. You can trade in your devices like phones, game consoles, iPads, tablets, MacBooks, DVDs,…
Welcome to my Decluttr Review!
Are you thinking about selling some of your stuff to make extra money?
Decluttr might be the perfect way to sell your stuff online instantly as this is one of the best selling apps for electronics. You can trade in your devices like phones, game consoles, iPads, tablets, MacBooks, DVDs, and more.
I have personally sold a cell phone on Decluttr and I found the process to be very easy, and that is why this is my top choice if you are looking to sell your used electronics easily and hassle-free.
In my Decluttr review, I’m going to show you how Decluttr works, its pros and cons, and what you can expect when using this site.
You can check out Decluttr by clicking here.
Decluttr Review
Below is my Decluttr review.
What is Decluttr?
Decluttr is a website and app you can use to sell your used items. You can sell a ton of different items such as:
Cell phones
iPad and tablets
MacBook and iMac
Apple Watch
Gaming consoles
iPods
Laptops
Books
Video games
DVDs
Blu-rays
CDs
iPhones
You can either type in what you want to sell onto their website or scan the item’s barcode with your phone. Decluttr will then give you an instant price for it.
One nice thing is that they provide free shipping. You pack your items and send them to Decluttr. Decluttr checks the items once they arrive. If everything is okay, you get paid.
The website has excellent reviews, scoring 4.3 out of 5 stars on Trustpilot, with over 28,000 reviews.
The items Decluttr buys
Decluttr buys a lot of different things, which makes it easy to get rid of stuff you don’t need. You can sell your electronics, media, and even books.
I touched upon it a little above, but I want to talk about each item a little more below.
When it comes to electronics, you can sell items such as:
Smartphones (like iPhones and Samsung Galaxy)
Tablets (like iPads and Android tablets)
Game consoles (like Xbox and PlayStation)
Wearable tech (like smartwatches)
Laptops (like MacBooks and Chromebooks)
Decluttr also buys:
CDs, yes they even accept CDs!
DVDs from movies and TV shows
Blu-rays from movies and TV shows
Video games
Textbooks
Fiction books
Nonfiction books
You can see what Decluttr will pay you by clicking here.
How Decluttr works
Decluttr helps you to sell your unwanted items like electronics, CDs, DVDs, and game consoles easily. You scan your items (or type them into their website), get a price, and then ship them to Decluttr for free.
Here’s how Decluttr works:
Gather the items you want to sell – Find old CDs, DVDs, games, or tech gadgets you want to sell.
Go to the Decluttr website – Click here to head to their homepage where you can type in what you want to sell.
Get a quote – After scanning/typing, you’ll get an offer for your items. Review it and decide if you’re happy with the price.
Pack and ship for free – If you accept the offer, pack your items in a box. Decluttr provides free shipping labels, so you don’t have to pay for shipping. You will need to find a box, though, to put the item in. Any box that will keep the item secure and not get damaged will do. It does not have to be the original box that you bought the item in.
Get paid – Once Decluttr receives and checks your items, they will send your payment. You can choose between direct deposit, PayPal, or a check.
This process is simple and only takes a few minutes. It’s an easy way to clear out clutter and make some extra money.
Why choose Decluttr
Decluttr gives people a simple way to sell your stuff while making sure that everything stays safe (there are so many scammers on some other selling platforms).
What I like about Decluttr is that you don’t have to deal with creating a listing or customer service. Yes, you may earn a little less money than if you sold the item yourself, but it is hassle-free and fast.
This process is fast and user-friendly, even for those who aren’t tech-savvy. You don’t have to deal with auctions, negotiating, or waiting for buyers. This convenience makes Decluttr a good choice for busy people.
Plus, Decluttr has a high rating on Trustpilot, so you can trust this site.
The prices you see are the prices you get. There are no hidden fees or surprise costs, so everything is clear.
Here’s a screenshot I took that shows how much money you can make selling an iPhone 12.
How much money can you make with Decluttr?
You can make money by selling things like old CDs, DVDs, electronics, and game consoles on Decluttr.
Here are some examples of what you may be able to earn:
Apple iPhone 12 (256GB) in excellent condition can earn you around $188.00
2020 Apple MacBook Air Core i3 1.1 13″ 8GB can earn you around $195.99
Samsung Galaxy S10 (512GB) can earn you around $38.00
Apple iPad Pro 12.9” (2018) Wi-Fi + 4G 1TB in excellent condition can earn you around $307.99
Nintendo Switch can earn you $66.99
When I sold my old cell phone on this site, I earned around $100. It was an old phone that was just sitting in a drawer and being unused, so this was an easy way to make some extra money without much work.
Selling small items like books, CDs, and DVDs won’t give you a lot of money. They might pay just a few dollars each. Don’t expect big payouts for small items, but selling many at once can add up. This can be a good way to clear clutter and make some extra money.
Recommended reading: 11 Best Ways To Sell Used DVDs Online And Locally
Tips for increasing your earnings on Decluttr
There are some small things that you can do to make a little more money when selling your old stuff on Decluttr.
One way to earn a little more is to try to improve the condition if you can. This is because Decluttr pays more for items in good condition, so make sure your items are clean and free from damage.
For electronics, check if they:
Power on and work properly
Have no cracks or major scratches
Include accessories like chargers
Books should have:
Intact covers and pages
Minimal writing or highlighting
Wiping down the item you want to sell can go a long way as well, as it will be more presentable.
Doing these things can make a big difference in how much money you get from Decluttr.
Below is a video from Decluttr that may help you determine the grade of your item.
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Frequently Asked Questions
Here are some common questions people have about using Decluttr. This will help you understand how it works and if it’s a good option for you.
Does Decluttr pay well?
Yes, Decluttr pays well. Decluttr pays competitive prices for used electronics, media, and other items. For example, selling an old phone can earn you over $100, but DVDs and Blu-rays might not pay as much. It’s good to compare prices with other selling sites to see which is best for you. Also, you may want to compare what you may be able to earn if you listed the item for sale yourself, such as on eBay – this may help you realize if it’s worth the extra effort to sell it on your own.
Is selling to Decluttr safe?
Yes, selling to Decluttr is safe. The platform has a good reputation and many people use it. It also has a 4.3-star rating on Trustpilot, with most users having a positive experience.
What items are rejected by Decluttr?
Decluttr does not accept damaged items or items that don’t meet their quality standards. Broken electronics, missing parts, and heavily scratched CDs or DVDs will likely be rejected. Make sure your items are in good condition before selling. That being said, they do take items in poor condition, so it may not hurt to try selling it to Decluttr before just tossing it in the trash.
How long does it take to get paid from Decluttr?
Typically, you will get paid within a few days after Decluttr receives and checks your items. Payment is usually processed the day after the inspection is complete.
Does Decluttr pay for shipping?
Yes, Decluttr covers the shipping cost. They give you a free shipping label, so you don’t have to worry about extra expenses. Just pack your items (you will have to find a suitable box for the item you want to sell), attach the label, and send them off.
Does Decluttr charge fees?
No, Decluttr does not charge any fees to sell your items. What you see is what you get. You won’t have to deal with hidden fees or unexpected charges during the process, which is very nice.
What are the best Decluttr alternatives?
Some good alternatives to Decluttr include Amazon Trade-In, eBay, Gazelle, Facebook Marketplace, and Craigslist. Each platform has its own pros and cons, so it’s a good idea to compare them to find the best fit for what you’re selling.
Decluttr Review – Summary
I hope you enjoyed my Decluttr review.
So, is selling to Decluttr worth it?
Selling to Decluttr is worth it if you want a quick and hassle-free way to sell your old tech and media items. It’s convenient and easy to use, especially if you don’t want to deal with the hassle of selling items individually.
I have personally sold an old cell phone using the Decluttr app and I liked how easy the process was. I also like how this selling site gives you an instant valuation with an offer price and fast payments so that you can get paid as quickly as possible.
You can see what Decluttr will pay you by clicking here.
What do you typically do with your old electronics? Do you sell them?
Frontier has announced a new benefit to the Barclays Frontier card with cardmembers now receiving two checked bags for free. Details of the new benefit are as follows:
Tickets must be purchased from FlyFrontier.com or the Frontier Airlines mobile app
There is no limit to how many times you can use this benefit
Free checked bag benefit includes golf and ski equipment
Primary cardmembers must use their FRONTIER Airlines World Mastercard at booking to unlock the free checked bag benefit
Interestingly the new benefit isn’t being advertised as a benefit yet on the Barclays Frontier landing pages.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how you could save money by caring less about what other people think and how to weigh the pros and cons of a job offer.
How can you save money by not caring about others’ opinions? How does commute time factor into whether you should take an in-person job? Hosts Sean Pyles and Sara Rathner discuss freeing yourself from the pressures of social validation and adopting smart spending habits to help you understand how these approaches can boost your financial well-being. They begin with a discussion of saving money by “not caring,” with tips and tricks on avoiding unnecessary spending influenced by social media influencers, focusing on purchases that genuinely make you happy, and recognizing the fleeting dopamine rush from new buys. They also delve into strategies such as choosing unique vintage clothing, the benefits of a capsule wardrobe, and making thoughtful car-buying decisions.
Then, hosts Elizabeth Ayoola and Sara Rathner talk to Andrew, a listener in Miami, about his decision to start a new job that would increase both his salary and his commute time. They discuss the trade-offs of job changes, the impact on work-life balance, and questions you can ask yourself to help align your career progression with core values.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Teddy Roosevelt once said, “Comparison is the thief of joy.” But if you’re not careful, it can also be the thief of your hard-earned money.
Sara Rathner:
In this episode, we’ll help you find ways to save money by simply not giving a hoot about what people think.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Sara Rathner:
And I’m Sara Rathner. Later in this episode, I am joined by our co-host, Elizabeth Ayoola, to talk with a listener about how they should weigh the pros and cons of accepting a job offer that requires a big lifestyle change. Is a bump in salary necessarily worth it?
Sean Pyles:
But first, we’re going to talk about how you can save money and probably your self-esteem by not caring what people think or comparing yourself to others. If you are a millennial who was bullied into purchasing crew socks because the TikTok youths made you feel bad about your ankle socks, this segment is for you.
So, Sara, I know this idea of not caring what other people think, not basing your self-worth on how you stack up to others, and using it as a way to save money is something that’s been top of mind for you lately, right?
Sara Rathner:
It actually came up in a Slack conversation with a coworker where we joked about having to Google certain Gen Z phrases to find out what they mean. And I remember being 22 in my first full-time job, and coworkers at the time would ask me to define millennial slang, and now I’m the old. It’s kind of freeing not understanding what people are talking about sometimes.
Sean Pyles:
That’s true.
Sara Rathner:
I mean, part of it is the lived experience. You just let time pass, and you become more comfortable just being you. You’ve just been you for a longer period of time, and you accept your flaws. Also, part of it is just buying stuff over the years and then coming to an understanding as to what purchases will bring me greater happiness long-term, and then which won’t. So if something doesn’t matter to me, I don’t follow the trend. A friend of mine who’s a couple of years older than me once told me that the decade of life I’ve just entered is the FU 40s, where you reach this level of peace. You focus on what’s important to you, and the rest just kind of fades away. And you know what? She was right. The second I turned 40, my ability to care just really went down. It might be because I have a toddler and my ability to care is just pretty low.
Sean Pyles:
Yeah. Your priorities have shifted.
Sara Rathner:
Yeah, mostly it’s just about preventing him from falling off of stuff at this point.
Sean Pyles:
That’s a good thing to focus on.
Sara Rathner:
I don’t have time to care about anything else.
Sean Pyles:
Sara Rathner:
So anyway, my point is this: I am going to continue to use the ankle socks I already own and love. Thank you.
Sean Pyles:
And that is your right. Okay. Let’s talk about how people can vanquish the allure of comparison or caring what people think about you and using consumer purchases to prop up the image that you project to the world. I have a few quick tips here.
First, please remember this simple humbling fact: No one thinks about you as much as you think about you. People are not thinking days later about the new outfit that you wore into the office or the vacation pics that you posted on Instagram because they are too busy thinking about their outfits and their photos that they posted on Instagram.
Next, realize that the dopamine bump that you get from a purchase just doesn’t last. It won’t be long before you are hunting for something else to spend money on that makes you feel good. And put those two facts together, and you can begin to see why spending money on something with the hopes of impressing people just isn’t the best investment.
Sara Rathner:
And again, if something you love is, say, fashion, you’re spending money on something that brings you a lot of joy, you enjoy the creativity of putting outfits together, you enjoy hunting for something that you love in stores, then do it. Just put more of your budget into that and maybe avoid purchases that don’t matter as much so you have more money to fund the things that you love and then also fund your savings because that’s important, but you’re not really spending money to impress people in other areas. I’m not knocking people who like buying clothes. I like it too. Just understand that if there’s one thing you love, you can’t have everything.
Sean Pyles:
Yeah, you’re doing it because you want to do it to make yourself happy, not because you’re trying to impress this vague idea of someone else who might think that you look cool.
Sara Rathner:
Right. And if you’re spending a lot of time scrolling on your phone, you kind of develop these parasocial relationships with social media influencers. They’re not your friends. They’re trying to sell you stuff. They get paid when they sell you stuff. This is a very one-sided relationship, and they’re the only ones that benefit.
Let’s talk about a few specific areas where you can easily cut back on just spending money to look cool. And we’ve talked about fashion and your wardrobe. And the thing is, compared to years ago, clothing quality is total crap even for more expensive items. But on the lower-cost side, you buy a T-shirt or a sweater, wear it once, wash it once, and then it becomes a tissue. Chasing trends, you know, this shape of clothing is in style this season, and this detail is in style that season, and then this color, and constantly buying new and going on these clothing hauls, you are going to have a closet full of garbage after a while.
Sean Pyles:
One of my personal and financial goals for this year was to rethink the way that I consume clothes because I am one of those people that likes to have clothes that make me feel good and that are kind of unique and different. So I set out to not buy any new articles of clothing, as in brand new pieces of clothing from a store. Since I do like getting unique vintage pieces, I allowed myself to shop on eBay where I find a lot of cool stuff or at local thrift stores, and I did let myself purchase things from there. So far this year, I found that I’m spending less on clothing, my environmental impact is lower, and I’m also just much less likely to buy something for the sake of updating my wardrobe to get the latest style or cut of jeans or whatever.
Sara Rathner:
And one thing, if you’re trying to minimize how much clothing you buy as some sort of personal challenge, you could try the capsule wardrobe thing, wear the same 20 pieces of clothing in different ways for a month, and force yourself to be creative, and in a way, that can make you fall in love with some of your old clothing again.
Sean Pyles:
Yeah, God, I have so many pieces of clothing that I’ve not worn in over a year, but I will not get rid of them because maybe one day I will wear them again.
All right, well, let’s talk about another area where you can stop trying to impress people — your car. A lot of people buy or lease a flashy car as a status symbol, but that can be one of the riskiest financial decisions that you can make, especially since the average price of a new car was north of $48,000 in July of 2024 according to Cox Automotive. And new vehicles, which often come with loads of computers and sensors, are also more expensive to repair. So you have an expensive car payment, insurance is not going to be cheap, and repairs will also be pricey. There’s nothing wrong with getting an affordable, reliable used car and just driving it until the wheels fall off. So, Sara, I know that your household recently bought a car, right? So how did you approach that?
Sara Rathner:
Yeah, we bought a used 2022 Honda CR-V hybrid a year ago when prices on used cars finally started to come down somewhat. We traded in a 14-year-old compact car that was worth maybe $1,200 at that point because we needed a car that fit the car seat and the stroller and all that stuff, and the compact car didn’t. We had to push the front passenger seat up all the way to fit the car seat. So, not ideal. It wasn’t great for longer-term family use, and we share one car, my husband and I. So we needed something that worked for all of us—both adults, the baby, and the giant dog.
So I have to say, honestly, this is one of the nicest cars I’ve ever driven. It has all of those fancy safety sensors that are standard now. I have a backup camera for the first time in my life. The thing is, this is not a sexy car; it’s a mom-mobile. The trunk always has reusable grocery bags in it. I’m just in that phase of life, and I hope that we drive this thing long enough that the backseat is eventually filled with my future preteen son and his sweaty friends after soccer practice.
Sean Pyles:
Well, that sounds really well thought out. It’s like the kind of car that fits your needs for where you are in life right now.
Sara Rathner:
Yeah, I was saying maybe one day we’ll hand it to him, and it’ll be his car, and it’ll be like, “This car is older than you.” And it’ll still drive well. That would be ideal.
All right, so Sean, you bought a car a couple of years ago. How did you think about that purchase?
Sean Pyles:
Well, here’s the part where I say that buying a car for the right reasons doesn’t mean that you have to buy a total clunker or something that’s completely utilitarian. I drive a lovely 2016 BMW X1, which I named Bette Midnight after the character Bette Porter from the show The L Word. Maybe TMI, but I do really love my car, and having a BMW might sound fancy and obnoxious, but I got an amazing deal on my car back in May 2020, and my payment is a little under $350 monthly. I justify it however I want to, basically, but here’s why I bought this car.
In high school and in college, I drove a severely busted Honda Civic where the muffler was rusted out and literally dragged on the road behind me. When it came time to get my first big-boy car, I wanted something just a little nicer than that. I will admit that as much as I love my car, I do live with a certain amount of cognitive dissonance where whenever I see a BMW driver on the road, I think, “Wow, that guy’s such a jerk.” And then I realize that that’s me, that I’m the jerk now.
Sara Rathner:
Yeah, I think if every one of us took a moment to really think about it, we’re all the jerk sometimes.
Sean Pyles:
Sara Rathner:
Yeah. So when you see your own face reflected in the window of a BMW that you don’t actually drive, you can just live with that emotion.
Sean Pyles:
Yeah. Give yourself some grace for being a jerk every so often, but within reason.
Sara Rathner:
Yeah, and then just try to be better.
Sean Pyles:
Sara Rathner:
Sean Pyles:
Well, I would say go back to what we talked about in the beginning. Get the car that you want for the right reasons because it’ll make you happy and not because you’re trying to look cool. Also, do a lot of research on the kind of car that you want. When I bought my car back in 2020, I had a spreadsheet, of course, and I listed the models that I was considering, their average annual repair cost, their miles per gallon, among other factors. And then also know your personal numbers, as in how much car you can afford. NerdWallet recommends spending no more than 10% of your monthly take-home pay on your auto payment alone. That’s not including insurance, gas, etc. And if you want to see how much car you can really afford, check out NerdWallet’s Auto Loan Calculator. You can find a link in this episode’s show notes post or by just searching “NerdWallet Auto Loan Calculator.”
Sara Rathner:
Yeah. And once you figure out what you could comfortably afford, then you can just stroll into a car dealership with a bit more confidence. And you should do that because car salespeople can smell uncertainty from several miles away, and they will pounce on you, and then you’ll end up buying the car that is not right for you because of pressure. So you don’t want to deal with that situation. So switching gears…
Sean Pyles:
Pun intended.
Sara Rathner:
Hard joke, right? Pun intended. Let’s talk about one more area where you could save money by not trying to impress people. And that is when you go out of your way to do really expensive stuff just for the goal of bragging about it online. I’m talking meals out where you photograph every dish or taking vacations just so you can post photos of the Eiffel Tower or whatever on social media. And the thing is, if expensive vacations or nice dinners bring you joy, that’s great. I love vacations. I take them as often as I can. That can be a priority in your budget, but just doing it to show off and then going into debt to do those sorts of things isn’t a great idea.
Sean Pyles:
Yeah. I was recently having dinner with a group of people, and one of the folks at the table was talking about their recent travels and how they went to X, Y, Z locale just to check the box and say they’ve been there, not because they particularly cared about the place’s historical or cultural significance. And that struck me as a little bit odd. When you’re traveling, you want to see the important destinations, of course, but that should be because you want to do it for yourself, not because you are impressing people in your social media feed who, again, don’t really care that much about whatever you’ve seen.
Sara Rathner:
Yeah. If you want to go to Venice, Venice is beautiful. You should see it. It’s a lovely city, and I recommend it, but not just for the ‘gram.
Sean Pyles:
Sara Rathner:
It should be because you actually want to go and immerse yourself and get to know people there and just really have a wonderful time and not just hop in for a day, check the box, and run out. Cities deserve our attention. They always do. So this gets to a good question that people should ask themselves whenever they’re making any sort of discretionary purchase, which is simply, why? Why are you spending money on this thing or this experience, and what do you expect it to do for you?
Sean Pyles:
Sometimes the answer is just, “It’ll make me happy.” And that’s actually one of the best answers that you can give. And so far as saving money, there are some really easy ways to have great experiences and not break the bank. Travel-wise, we Nerds often recommend traveling in the off-season if your schedule is flexible. You’re likely to find cheaper airfare, plus you won’t have to elbow your way through hordes of strangers to see the sites.
Sara Rathner:
I think that’s enough on how to save money by not giving a… You could fill in that throat-clearing section with any word you’d like. Before we move on to this episode’s money question segment, a reminder, listener, that we are running another book giveaway sweepstakes ahead of our next Nerdy Book Club episode. Our next guest is Jannese Torres, author of Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa. That means powerful, by the way, which offers tips to young people on how to get started with managing their money.
Sean Pyles:
To enter for a chance to win our book giveaway, send an email to [email protected] with the subject “Book Sweepstakes” during the sweepstakes period. Entries must be received by 11:59 PM Pacific Time on August 22nd. Include the following information: your first and last name, email address, zip code, and phone number. For more information, please visit our official sweepstakes rules page.
Sara Rathner:
All right. Now, let’s get into my conversation with our co-host, Elizabeth Ayoola, and a listener about a big job change that listener is considering.
Welcome to NerdWallet’s Smart Money Podcast, where you send us your money questions, and we answer them with the help of our genius Nerds. I’m Sara Rathner.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola. Now, if you have a money question for the Nerds, call or text us on the Nerd hotline at 901-730-6373. Again, that’s 901-730-NERD. You can also email us at [email protected].
Sara Rathner:
Follow us wherever you get your podcasts. And if you like what you hear, leave us a review and tell a friend. We are back, and we’re joined by a listener, Andrew, who has some questions about the trade-offs of leaving a work-from-home job for one that might pay more. Andrew is 37 years old and lives in South Florida. Welcome to Smart Money, Andrew.
Thanks. Thanks for having me. Big fan.
Sara Rathner:
So before we get into the conversation, a quick reminder that we’re not here to give you individualized financial advice. Our goal is to provide the information you need to make the most informed financial decision for your situation. Does that make sense?
Yes, ma’am.
Elizabeth Ayoola:
All right, awesome. So let’s get into it, Andrew. Now, I know you have some really good questions for us about the trade-offs of leaving your work-from-home gig for one that is in the office but pays more. However, before we get into that, can you talk to us about your financial situation generally right now? Tell us, what are your financial goals, and what are some of your pain points?
Currently, I am building up my emergency fund, which I know you guys are well-versed with that. Three to six months of expenses, erring more towards the six. After that, just looking to automate everything—529, Roth contributions, saving for vacations, saving for a new car. Real estate-wise, we’re all set. We own one, are landlords on two others. Not looking to rent, not looking to move anytime soon. So I’d say we’re stable. We only have the mortgages, no other debt.
Sara Rathner:
And tell us a little bit about your home and family situation. Who else lives with you? Who are you supporting? What are you working for basically?
I got the missus and two little ones. One is in grade school now, so that daycare payment stopped, thankfully, but the other one is still in it for another two years. That’s a pain point just because there’s not going to be any tuition or scholarship until she’s four. So we have at least a year or two of these monthly payments. That’d be the biggest pain point right now.
Sara Rathner:
And you mentioned having a spouse. Are they also working?
She’s a props master, which is a super cool job—gets to make things and see them on stage in theater productions—but that doesn’t pay what I would call a living wage, and that’s also part-time. She’s the primary transporter of the children and making sure they’re clothed and shuttled around to all their activities.
Sara Rathner:
So you got a call from a recruiter about a new job that might pay a decent amount more, might be enough of an incentive to leave the job that you have now, but it’s in an office and you live in a really high-traffic city. So you want to tell us a little bit about that and what questions that potential opportunity has brought up for you?
Definitely. As we know, a couple of years ago, we experienced quite the phenomenon worldwide, which shifted everyone to working from home. Honestly, it was kind of a dream for me, even pre-pandemic. 2016, 2017, I thought to myself, “All I need is a laptop, and I can do almost everything from home” at the job that I was at. And I did do that sometimes, even back then. I’d come home and work more; I’d still have to go to work in the morning.
So post-pandemic, it’s been a blessing for a lot of people. I feel, at least me personally, I’ve gotten to get in shape and hang out in a very pivotal time in the kids’ lives, from zero to six. But Miami, in particular, poses its challenges. One, it’s a high-cost-of-living city. The switching costs of moving closer to our central business districts is not easy. The traffic is pretty bad, but what’s worse is likely the road rage, as Miami is the first and third place road rage capital of the country. So that’s where the stress versus money payoff comes into play.
Sara Rathner:
And I will say this, that I loved your question because Elizabeth and I are both intimately acquainted with South Florida traffic. I’m from Miami originally, Elizabeth is living in South Florida. I learned to drive in Miami, so I know that road rage too well. How long would your commute be, and how much more money are we talking?
So commute minimum would be an hour, and this is 20 miles, maybe less.
Sara Rathner:
And this is each way?
Each way. It’s likely closer to 80 minutes, 90 minutes. And if there’s an accident or something, it might even be two hours each way. And I believe the position when I first emailed you guys was four days a week in the office, maybe five days a week in the office. For where that one was located geographically, it just didn’t make sense to basically give up 10, 12, 14 hours a week just in the car. I’d get to listen to a lot of your guys’ podcast for sure, but I’d run out of that pretty quick. The money, anywhere from $60,000 to $70,000 increase. I tried running an analysis—extra gas, extra wear and tear, oil, increased tax. Given where that one was, I think the resounding response and what all the Redditors told me was absolutely not.
Elizabeth Ayoola:
What comes to mind for me, I always find these scenarios a great way to revisit your core values. I think a good way, especially for listeners who may be in this kind of dilemma, to weigh it out is to think about what your values are and think about what your ideal life looks like. I know for me personally in my career, that has been a guiding light for me. I know before this job, I was working at a job that was pretty comfortable, but I had to go to the office every day, and one of my highest values is flexibility and freedom. So being able to have the freedom to work from home and choose my lunchtime or maybe do a quick workout in between meetings is really important to me. So did you find that you weighed your values when you were kind of making this decision as well? I know you just mentioned things like taxes and other kind of quantifiable things, but did you think about your values as well?
I did. And I don’t know if it’s a faux pas to mention another money expert on this show, but I listened to and read Ramit Sethi, which I’m sure you guys are familiar with him, and he talks about the concept of your rich life. And for the majority of the people he talked to, fixed income is way too high. Their income-to-housing cost is way too high. We’re in an okay position there to where I don’t need necessarily to earn $50,000 more, but part of my rich life, as silly as it may sound, is now Brazilian jiu-jitsu, and the gym is 12 minutes away, and I can go every night or as much as my wife would allow.
If I’m working a downtown job, getting home at 6:45, hungry, have to go to the bathroom, then I don’t know that I’m going to have the energy to then go out and fight. And that’s my primary way of keeping in shape. So I just know that if I take a downtown job where I’m there every day, getting my Chipotle every day for lunch, it’s likely going to cause some health implications.
Sara Rathner:
It’s funny because when you sent us this question, it seemed like you hadn’t yet made the decision, and in that time you have, and in this case, you decided not to pursue this opportunity. But in the future, if you were faced with a similar potential opportunity, a similar decision, is there a number or a type of role that would make you say yes? What in your value system might make you make a different decision in the future?
Interesting you should mention that because a mere 90 minutes ago, I was talking to a recruiter who messaged me on LinkedIn, but she presented a pretty interesting opportunity. The increase in base pay would be about $42,000, which is less than the other job, but it’s also closer. And this one’s hybrid—three in, two home. So despite less money, I do get two days back, and it’s about an hour total, less commuting per day. The role itself is non-managerial, which at this stage, that interests me a little more just with the little ones that I’m already managing at home. I don’t necessarily want a team of five or six analysts under me that I need to manage as well. The talk went fine with the recruiter, and she’s going to pass along my info to the in-house recruiter. So that one’s a little bit more compelling, even though it’s less money, which I guess reveals to me that I really do value the time and the travel more than the dollars.
Sara Rathner:
And I asked some questions about your family life because I think when you have a two-partner household and maybe one person brings in more money, it’s very easy to continue chasing even more money because that’s your role. You’re the one that is largely the financial breadwinner. And I like to hear that you’re also thinking about the effect it might have on everybody that’s at home, not just your children but also your wife, because your greater absence would put more on her plate with no additional income on her part, and it might even interrupt her ability to continue earning an income because there’s just more at home to do while you are not physically there. It’s not just about the money; it’s also about the time, and getting to use your own bathroom is the best.
Yeah, that’s true.
Elizabeth Ayoola:
It is. And I will just add, I personally think there are some scenarios where you may sacrifice convenience a little bit if you have a financial goal. I definitely know last year that was the situation for me. I was behind on my retirement savings, and I basically picked up a whole bunch of freelance work to try to boost my retirement savings. So it did mean that I had less free time. But it’s nice to have a timeframe. If someone else, again, another listener, is in this scenario and decides, “Hey, I really need that extra $60,000 or $70,000,” to maybe have a timeframe to it and say, “Maybe I can do this for two or three years just so I can accomplish my goal.” And then I can circle back to whatever lifestyle I was living before, if that is a possibility.
Yeah. And I think from a long-term goal, my experience has been that whenever I’ve switched jobs, I’ve gotten more, and that more has now become my new floor. I’ve never taken a pay decrease, fortunately. That might not be the experience for everyone, but that’s been my experience. It’d be almost preposterous for me to two or three years from now request $175,000 as a base, getting paid what I’m getting paid now. Whereas this most recent opportunity would put me in striking distance, base and bonus, of the 200s. So there’s also the long-term 5-10 year consideration. But what if we have more children? What if we want private school? What if we want to buy a single-family in the city? That’s at least a million dollars to buy a single-family in the city. Those are some other considerations I’m going through.
Sara Rathner:
Yeah, braces and summer camp don’t pay for themselves, unfortunately.
Elizabeth Ayoola:
Sara Rathner:
As your kids get older, your family’s needs get more complicated. Just when you think daycare tuition is off your plate…
Sara Rathner:
…in come the travel sports.
Sara Rathner:
So Andrew, you mentioned that obviously a really great way to boost your salary over time is to switch jobs. You typically get bigger salary bumps when you switch companies than you would if you were to stay put and just accept periodic raises. But in your current job, in your current industry, your current employer, do you see opportunities to bloom where you’re currently planted and perhaps pursue higher salary positions, promotions, or even just make the case for a major salary bump and not have to switch jobs and start going into an office?
I would say yes. I work for a very, very large bank, which means we have a lot of departments. Fortunately, the powers that be are very pro-horizontal mobility, get experience in this department, this specialty area, and then not necessarily, you could always come back, every department has their staffing need, but you still have those relationships, which is a very cool culture and one of the reasons I like where I’m at. I’ve also been promoted once, asked for a decent raise—nothing out of this world, a couple percentage points—but they’ve been granted.
There is some wiggle room within my position, and then if I’m willing to make sort of a not horizontal, not vertical move, sort of a lateral move, diagonal, that could be $10,000 to $15,000. And lastly, my boss has expressed interest in me taking their job and then them getting promoted. Honestly, that’s not something I’m looking to do right now. Again, don’t want to add stress, but again, I might hit a ceiling in my rank, and that’s the next logical step. So I’ve been thinking about that, but not something I’m really wanting to do within the next six months, I would say. So there is some opportunity where I’m at, but I can’t just come out and say, “Hey, I want a 40% raise. Look what they’re trying to pay me.”
Sara Rathner:
Another thing to think about too is as you move up the ranks in your career and you’re approaching your 40s, for a lot of people, it means management or at least a senior-level position that’s not management, but also recognizing what extra hours are you potentially going to have to work in this new role? Are you still going to be able to cut it at a 40, maybe 50 hours a week position, or suddenly there are going to be increased demands on your time?
Yeah, I think company culture is huge. At my former employer a couple of employers ago, they had what I would call a Wall Street culture, which personally, it just wasn’t for me—the 7:00 to 7:00 minimum and then the ambitious people working Saturday and Sunday. Kudos, I hope you have a yacht by now, but that just wasn’t for me. Fortunately, where I’m at has more of a Main Street culture. Obviously, as a manager, I would be subject to more deadlines and responsibilities to those above me and managing the people below me to make sure that we can fulfill all our deadlines. But I wouldn’t see myself working till 6:30 or 7:00. They’re very big on PTO, and when you’re on PTO, they’re very good on work-life balance, which is another reason I like where I’m at.
Sara Rathner:
So one more thing to think about, if you were to take an opportunity in the future that even is a hybrid role, and this is something that people might realize if they transition from work-from-home to hybrid or a fully in-person position: are there any home tasks that you will need to pay to outsource to make up for the fact that you’re not physically present to help with those tasks? And is that something that you would need to work into your budget to make working away from home possible for you?
For the first one, even though it was even more money than the second one, I thought, “Well, I’m just going to have to hire a maid and a chauffeur.” So what’s even the point when I could do those things and it’d be a wash? I’d be working more, and then I guess I’d stimulate the economy by hiring two people. But I’m not really looking to be an economic stimulant other than through spending. As we free up cash flow from what were former debt payments, we could bring someone in to tidy the home. I think that’s the first thing people usually look to do, at least us upwardly mobile Miamians. If I’m meeting all my investment quotas, then why not?
Sara Rathner:
That’s definitely the first thing I outsourced in the home. Using your money to free up your time is, to me, such a tremendous use of money. It can be used to add convenience, not just stuff, but also the absence of something that you have to do is incredibly powerful. So yes, definitely, if you increase your salary and want to increase your quality of life in some ways by outsourcing some tasks, then that is a great use of money. It allows you to be around for your family more often too.
I think a lot of it is how you frame it as well. My friend, who’s in construction, does it quite well. He’s willing to take a pay decrease if he can work a third less hours because he always calculates on a per-hour basis. Which if someone tells me their hourly salary now, I couldn’t tell you if that’s a lot or little because I haven’t been hourly in years. So him being salaried, he always does that exercise, and he’s like, “Oh, I’m getting paid $6 more per hour, but I have to work 30% more. Absolutely not worth it.” Like, what does $6 get you? But I just did the exercise for role two, and I did it on a monthly after-tax, what it would come out to. And it’s enough to cover mortgage and daycare—just the raise after tax.
So when it’s framed like that, that tells a pretty compelling story. Like, “Oh, would you switch jobs and have to drive eight more hours if just the increase would pay for your mortgage and your daycare?” which are most people’s biggest expenses. That sounds pretty good. But when you frame it, do you want to spend 8 to 10 hours a week in Miami traffic and possibly get rear-ended and have people cutting you off? There’s almost no amount of money that you’d want to get paid to do that. So I think the framing is just a very, very interesting concept as well.
Elizabeth Ayoola:
So Andrew, tell us now, we’ve had this conversation, after this conversation, what are you thinking? Do you feel like you have more tools to consider if or when another tantalizing offer comes along for a new job?
I think I do. And shout out to the NerdWallet website, there’s a tax estimator calculator on there where you can put your filing status, your age, your household income. From a strictly math standpoint, I think it’s easy. From a value standpoint, it’s definitely more nuanced. So thank you guys for your time and your input as well.
Sara Rathner:
Yeah, no, we’re happy to be part of your decision-making journey because this is something that I think a lot of people go through as they progress in their careers and as their lives get more full and potentially more complicated in hopefully good ways, but sometimes hard ways too. So if you’re out there listening and you’re weighing a potential job change or you’re itching to change jobs, it’s absolutely not just a financial exercise, but it is also a values exercise.
Elizabeth Ayoola:
It absolutely is. And for me, values usually take the cake. But I say that knowing that I have certain privileges, and I’m able to choose. I know not everyone has that option.
So on that note, that’s all we have for this episode. Now remember, we are here for you and your money decisions. So turn to the Nerds and call or text us your question at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more information on this episode. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio. And what happens there is you’re able to automatically download new episodes.
Sara Rathner:
And here’s our brief disclaimer: We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Elizabeth Ayoola:
And with that said, until next time… turn to the Nerds.
You may think of a bank as simply a safe place to put your money. But banks do a lot more than accept deposits. They also extend loans, facilitate payments, exchange currency, set monetary policy, and provide a range of other financial services to individuals, businesses, and governments. Here are key things to know about banks, including how they work, how they make money, and the different products and services they offer.
What Is a Bank?
By definition, a bank is an institution that accepts deposits in checking and savings accounts and makes loans. In serving both functions, banks act as intermediaries between depositors (who essentially lend money to the bank) and borrowers (to whom the bank lends money). The money the bank pays to depositors and charges on loans is called interest.
Banks also offer a range of other financial products and services, including:
• Credit cards
• Investment accounts
• Wealth management services
• Individual retirement accounts (IRAs)
• High-yield savings accounts
• Certificates of deposit (CDs)
• Money market accounts
• Currency exchange
• Safe deposit boxes
Banks also facilitate payments — from employers to employees, buyers to sellers, and taxpayers to the government — and play a major role in the nation’s economy. There are also many different types of banks, including retail banks, corporate banks, and central banks.
How Do Banks Make Money?
Banks typically generate revenue through a variety of channels. These include:
• Interest on loans: Banks lend money to individuals and businesses at higher interest rates than what they pay on deposits, earning the interest rate spread.
• Fees: Banks may charge fees for various services, including account maintenance, overdrafts, wire transfers, and out-of-network ATM usage.
• Investment income: Banks may invest in securities, bonds, and other financial instruments, earning returns on these investments.
• Interchange fees: When customers use their debit or credit cards, banks earn fees from merchants processing the transactions.
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Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!
A Brief History of Banks
The concept of banking dates back to ancient civilizations, when temples were used as safe places to store valuable items and grain, and priests would lend these resources to local farmers and merchants. The temples were also responsible for keeping records of these transactions, laying the groundwork for bookkeeping.
The first modern banks emerged in Renaissance Italy, with institutions like the Medici Bank setting the standard for banking operations. Over centuries, banks evolved, expanding their products and services and adopting technological advancements to meet the growing demands of consumers and businesses. Today, banks are integral to the global economy.
Modern Bank Products for Consumers
Modern banks offer a variety of products tailored to meet the financial needs of consumers. Common banking products include:
Loans
Banks provide various types of consumer loans, such as mortgages, personal loans, and auto loans. These loans help individuals finance large purchases and manage their cash flow.
Savings and Checking Accounts
Savings and checking accounts are fundamental banking products. A savings account is designed to hold cash you don’t need right away and allow you to earn interest and grow your money over time.
Checking accounts are set up to offer easy access to funds for everyday transactions. They come with checks and typically a debit card that can be used for purchases or to withdraw funds at an ATM. Checking accounts generally earn little or no interest, though some banks now offer high-yield checking accounts.
Mortgages
Banks offer mortgage loans to help individuals purchase homes. These long-term loans typically come with fixed or variable interest rates and generally require you to use the property being purchased as collateral for the loan. Mortgage terms are typically 15, 20, or 30 years.
Investing Accounts
Many banks offer investment accounts, including IRAs and taxable brokerage accounts. These accounts enable customers to invest in stocks, bonds, mutual funds, and other financial instruments designed for long-term growth.
Credit Cards
Credit cards provide consumers with a revolving line of credit, allowing them to make purchases and pay for them over time. Banks earn interest and fees from credit card users, making it a significant revenue source.
Certificates of Deposit (CDs)
CDs are time deposits that offer a fixed interest rate for a specified term. You agree to leave your money in the account for a set period of time (which generally range from three months to five years). In return, these accounts typically pay a higher interest rate than a standard savings account.
Money Market Accounts
A money market account is a hybrid account that offers competitive interest on your balance, along with the conveniences of a checking account, such as a debit card and checks. However, you may be limited to a certain number of withdrawals per month. Some money market accounts also have minimum balance requirements.
Useful Bank Features
In addition to products, banks offer various services to help customers manage their money. Here are some features you may want to look out for when exploring different bank options.
Customer Support
Banks typically offer customer support through various channels, including phone, email, online chat, and in-person assistance. Whether you need assistance with your checking account or help choose between two banking products, a customer service rep can generally point you in the right direction.
Credit Score Checkers
Many banks offer tools that allow customers to monitor their credit scores for free. This service allows you to stay informed about your credit health and, if necessary, take steps to build your scores. Having strong credit can help you unlock credit cards, mortgages, and other types of loans with attractive rates and terms.
ATMs
Whether you open an account at a traditional brick-and-mortar institution or an online-only bank, you’ll typically have access to a wide network of fee-free automated teller machines (ATMs). This allows you to withdraw cash or make deposits without needing to visit a branch during business hours.
Online/Mobile Banking
Online banking and mobile banking apps allow you to monitor your accounts, transfer money, pay bills, and deposit checks from your computer or mobile device.
Financial Planning Tools
Many banks offer financial planning tools that help customers budget, save, and invest wisely. These tools can include calculators, goal-setting features, and personalized financial advice.
Bank Regulations
While banks are typically privately owned entities that must answer to their shareholders, banking is a highly regulated industry. Regulatory bodies, such as the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC), oversee banks’ operations, ensuring they adhere to laws and maintain sufficient capital reserves. This is to minimize disruptions and ensure the U.S. banking system runs smoothly.
The majority of U.S. banks are also insured by the FDIC. This covers deposit accounts up to $250,000 per insured bank, per depositor. Co-owners of joint accounts at the same bank are typically each insured up to $250,000. The agency’s BankFind site can help you identify FDIC-insured banks throughout the country.
Types of Banks
There are several different types of banks, each serving different purposes and customer bases. The large global banks often operate separate arms or divisions for each of these categories.
Retail Banks
Retail banks focus on individual consumers, rather than businesses or other banks. They provide personal banking services, such as checking and savings accounts, personal loans, mortgages, auto loans, short-term loans like overdraft protection, and credit cards. They may also offer access to investment products, such as mutual funds and IRAs.
While some retail banks offer in-person services through brick-and-mortar locations, others operate exclusively online. Due to lower overhead costs, online banks tend to offer higher yields on savings accounts and charge lower (or no) fees.
Recommended: What Is Neobanking and How Does it Work?
Corporate Banks
Corporate banks (also known as commercial banks) cater to large businesses and corporations. They also serve government agencies and institutions like colleges and universities. Along with business checking and savings accounts, these banks offer business loans and lines of credit, letters of credit, payment processing, foreign exchange transactions, and more for their clients.
Investment Banks
Investment banks serve as intermediaries in large, complex financial transactions. They specialize in initial public offerings (IPOs), raising capital, facilitating mergers and acquisitions, and providing advisory services to corporations and governments. Unlike retail banks, they do not take deposits from or provide loans to the general public.
Central Banks
Central banks manage a nation’s monetary policy, regulate the banking industry, and act as a lender of last resort. The central bank in the U.S. is the Federal Reserve (a.k.a, “the Fed”). The Fed sets the federal funds rates, which impacts everything from the annual percentage yields (APYs) you earn on savings accounts to the interest rates you pay on credit card balances and loans. Unlike the banks types listed above, central banks do not deal directly with the public.
Pros and Cons of Banks
Retail and commercial banks offer myriad benefits, but they also have some downsides. Here’s a look at how the pros and cons stack up.
Pros
Cons
Safe and secure
Potential fees for various services
Easy access to funds
Lower interest rates on deposits
Wide range of services
Potentially complex fee structures
Highly regulated
Potential for poor customer service
Pros
• Safety: Banks provide a secure place to store money, reducing the risk of theft or loss. Deposits in most banks are federally insured (up to certain limits), which means that even if the bank were to fail, customers will still recover their funds, up to the insured limit.
• Convenient access to funds: Banks offer easy access to funds through a network of branches, ATMs, and digital banking platforms.
• One-stop shop: Banks provide a variety of financial services beyond basic checking and savings accounts, allowing you to manage all aspects of your finances under one roof.
• Regulatory protection: Banks are heavily regulated by government agencies. These regulations protect consumers from fraud, ensure the safety of deposits, and promote ethical banking practices.
Cons
• Fees: Banks often charge fees for their services, including fees for account maintenance, overdrafts, and wire transfers.
• Low interest rates: Many banks offer relatively low interest rates on savings accounts and other deposit accounts. These rates often fail to keep pace with inflation, which can diminish the purchasing power of your savings over time.
• Complex fee structures: The complexity of bank fees can create confusion for customers and result in unexpected expenses.
• Potential for poor customer service: Large banks may offer impersonal or poor customer service due to their size and scale.
Banks vs Credit Unions
While banks and credit unions offer similar financial services, there are key differences between them. Here’s a closer look:
Ownership
Banks,typically, are owned by shareholders and operate for profit. Credit unions, by contrast, are owned by their members and operate on a not-for-profit basis. The main goal of a credit union is to benefit its members.
Fees and Interest Rates
Credit unions often offer lower fees and better interest rates on loans and savings accounts compared to traditional banks, as they are not driven by maximizing profits.
Membership
Banks are open to the general public. Credit unions require membership, which may be based on specific criteria such as employment, geographic location, or affiliation with a particular organization.
Customer Service
Credit unions tend to provide more personalized customer service due to their smaller size and member-focused approach. While small banks can also offer personalized customer service, larger banks may lack the personal touch.
Getting Started Banking With SoFi
A bank is an excellent resource to help manage your money. You can deposit funds for safekeeping, manage everyday spending, and invest for the future. Understanding the products, services, and perks offered by different banks can help you find the institution for your needs.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
How do banks make money?
Banks primarily make money by lending out deposits at higher interest rates than they pay to depositors, earning the interest rate spread. They also earn money from the fees they charge for account maintenance, overdrafts, and transactions. Additionally, banks may invest in securities and earn returns.
Why do they call it a bank?
The term “bank” is thought to originate from the Italian word “banca,” which means bench or counter. In medieval times, moneylenders conducted their business on benches in marketplaces, and the term evolved to represent financial institutions.
What is a bank, simply put?
Simply put, a bank is a financial institution that accepts deposits and makes loans. Banks also play a key role in a nation’s economy, facilitating the management and movement of money for individuals, businesses, and governments.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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Oklahoma City, or OKC as the locals call it, is a city full of surprises. Known for its welcoming community, diverse job market, and rich cultural offerings, it’s no wonder the city has seen a surge in new residents. But moving here isn’t without its challenges. From unpredictable weather to a fast-paced housing market, there are a few things you need to know before making the move. Not sure if The 405 is for you? Read on to find out what to expect if you’re considering a move to the Oklahoma City area in 2024.
You know it from: Thunderstruck, Twister, Musical Drama
Average 1 bedroom rent: $1,035 | OKC apartments for rent, OKC houses for rent
Average home price: $646,000 | OKC homes for sale
Average cost of full-service moving services: $147/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Aviation, Biotechnology, Energy
Move here for: The people, low rent, and excellent BBQ
Be sure to bring: A raincoat and a good weather app
1. The weather is as unpredictable as it gets
Oklahoma City weather is a rollercoaster. Summers are scorching with temperatures often exceeding 100°F, while winters can surprise with sudden ice storms. Severe thunderstorms and tornadoes are part of life here, especially in the spring. Be prepared for seasons that sometimes seem to change within a single day.
Moving Tip: You’ll get accustomed to keeping a close eye on the weather but investing in a good weather app is a must.
2. Cost of living is affordable, but housing moves fast
Oklahoma City is one of the more affordable metro areas in the U.S., with a cost of living nearly 15% below the national average. However, the housing market is hot. Homes and apartments often get snapped up quickly, especially in popular neighborhoods like Nichols Hills and Paseo. For renters and buyers alike, it’s crucial to act fast if you find something you love.
3. The job market is diverse and growing
The job market in OKC is booming, especially in sectors like energy, aerospace, and healthcare. Tinker Air Force Base is one of the largest employers, providing thousands of jobs. With a relatively low unemployment rate, the city offers plenty of opportunities for career growth. However, some industries are more competitive than others, so it’s essential to research before making the move.
4. Bricktown is the entertainment hub
Bricktown is the heart of Oklahoma City’s nightlife and entertainment. From catching a minor league baseball game at Chickasaw Bricktown Ballpark to enjoying live music along the canal, there’s always something happening. The area is also home to some of the city’s best restaurants and bars, making it a go-to spot for both locals and visitors. Just be ready for the crowds, especially on weekends.
5. Traffic is surprisingly manageable
For a city of its size, Oklahoma City’s traffic is relatively mild compared to other major metros. The city’s grid layout and wide streets help keep things moving. While rush hour can slow you down, it’s nothing compared to places like Dallas or Houston. Interstate 35 can get congested during peak times, but overall, getting around is a breeze.
6. Parks and outdoor spaces are everywhere
Oklahoma City is home to over 170 parks, offering plenty of green space for recreation. The 17-acre Myriad Botanical Gardens in downtown is a favorite for both relaxation and events. For those who enjoy water activities, Lake Hefner is a hotspot for sailing, fishing, and picnicking. The city’s commitment to expanding its park system is evident, making it a great place for outdoor enthusiasts.
7. A growing food scene with local flair
Oklahoma City’s food scene is on the rise, with an emphasis on local and farm-to-table options. Whether you’re craving barbecue, Tex-Mex, or something more eclectic, the city has you covered. The Plaza District and Midtown are popular dining destinations, offering a mix of trendy eateries and established favorites. Don’t leave without trying a fried onion burger, a local specialty.
8. Public transportation is improving but still car-dependent
While the city has made strides in public transportation with the EMBARK bus system and the downtown streetcar, OKC is still largely car-dependent. Most residents rely on their vehicles to get around, as public transit options are limited in coverage and frequency.
Moving Tip: If you plan to live here, having a car will make life much easier, especially outside of the downtown area.
9. The arts and culture scene is underrated
Oklahoma City’s arts and culture scene is diverse and growing. The Oklahoma City Museum of Art houses an impressive collection, including a stunning exhibit of Dale Chihuly glass. The Paseo Arts District is a vibrant community of galleries, studios, and festivals. The city’s Western heritage is celebrated at the National Cowboy & Western Heritage Museum, a must-visit for history buffs.
10. Sports are a big deal
Oklahomans are passionate about their sports, and Oklahoma City is no exception. The city is home to the NBA’s Oklahoma City Thunder, and game nights at the Paycom Center are electric. College football is another major draw, with fans loyally supporting the University of Oklahoma and Oklahoma State University. Whether you’re a die-hard fan or a casual observer, sports culture is hard to miss here.
11. Tornado preparedness is a way of life
Living in OKC means accepting the reality of tornadoes. The city is located in Tornado Alley, and severe weather is most common from April to June. Residents take tornado preparedness seriously, with many homes equipped with storm shelters. Local news stations provide excellent weather coverage, ensuring you’re informed and ready to take action if needed.
12. The city is spread out
Oklahoma City is one of the largest cities in the U.S. by land area, meaning it’s spread out and often feels suburban. While this gives residents plenty of space, it also means that getting from one part of the city to another can take time. Neighborhoods like Edmond and Yukon are technically part of the metro area but can feel like separate towns due to the distance.
13. A tight-knit community with a small-town feel
Despite its size, OKC has a close-knit community vibe. The city’s residents are known for their friendliness and hospitality. Whether you’re at a neighborhood event or grabbing a coffee at a local shop, you’re likely to strike up a conversation with a stranger. This sense of community makes the city feel more like a small town, which can be a refreshing change from larger urban centers.
14. Oklahoma City loves its festivals
From the Oklahoma State Fair to the Festival of the Arts, there’s no shortage of events in Oklahoma City. The city’s festival calendar is packed year-round, celebrating everything from food and music to arts and culture. The annual Red Earth Festival is a standout, showcasing Native American art and traditions. These events are a great way to experience the local culture and meet new people.
15. Rapid development and growth
Oklahoma City is growing rapidly, with new developments popping up all over the metro area. The downtown area has seen significant revitalization, with new apartments, offices, and attractions being built. This growth brings excitement but also challenges, such as increased traffic and rising housing costs. Staying informed about new projects and changes in the city will help you navigate the evolving landscape.
Methodology: Average rent prices sourced from Rent.com August 2024. Home prices sourced from Redfin August 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Greater Oklahoma City Chamber.
I started making extra money and side hustling around 15 years ago, and since then I have done over 20 different side hustles. I started so that I could stop living paycheck to paycheck, and so that I could pay off my student loans quickly (I ended up paying off $40,000 in student loans in…
I started making extra money and side hustling around 15 years ago, and since then I have done over 20 different side hustles.
I started so that I could stop living paycheck to paycheck, and so that I could pay off my student loans quickly (I ended up paying off $40,000 in student loans in just 7 months thanks to side hustling!).
Some were short-lived, while others turned into steady streams of income (and are even my full-time income today). Each side job taught me something valuable about money, time, and effort. I juggled everything from reselling clothes online to being a virtual assistant, mystery shopping, answering online surveys, having roommates, and more.
There isn’t one best way to make extra money; it depends on what you’re good at, what you like, how much time you have, and more.
If you want to start a side job, my experiences can help you decide. I’ll tell you what I learned from each one I tried, so you can see the pros and cons of each.
My Side Hustles Review
Below is my review of the different side hustles I have tried over the years. These are in no particular order.
A picture of me blogging from several years ago 🙂
1. Blogging
Blogging can be a great way to earn money while writing about topics you love. I’ve done it for years and have seen how it can grow from a hobby into a full-time job.
I enjoy blogging for many reasons such as:
It’s flexible – You can blog from anywhere, anytime.
It’s affordable to start – You just need a computer and internet.
It’s a great creative outlet – Share your thoughts and passions with the world. I enjoy blogging and running a website.
While there are a lot of great reasons to start a blog, there are some challenges such as it can be time-consuming and there is no guarantee that you will make money.
When I first started my blog, I was working over 40 hours a week on it and making nothing. It took me 6 months to make my first $100 from it, actually!
But, it was all worth it in the end.
Blogging used to be my side hustle and it is now my full-time job where I have earned over $5,000,000 over the years.
I would definitely say that blogging is my favorite side hustle.
For me, it was a great second job because I could work on my blog before my day job, during lunch, after work, and on weekends. You can make your own schedule, which is a big bonus!
You can learn more about how to begin in my free How To Start a Blog Course here.
2. Paid online surveys
Paid online surveys are a way to make some extra cash when you have spare time. With just a few clicks and some honest answers, you can see money rolling in.
Companies want to know what customers think about their products and services and that is why they pay for surveys. By sharing your opinions, you help them improve and develop better offerings. In turn, they pay you for your time and insights.
You usually can earn anywhere from $0.50 to $5 per survey, depending on the length and how hard the survey is. And, surveys can take anywhere from around 10 minutes to an hour, so they are not high paying.
I’ve taken a lot of surveys over the years, and what I like about them is that you can do them whenever you want – in the morning, during lunch, before bed – whenever it works for you. There’s no strict schedule, and they are really easy to do.
My tips for success:
Sign up for multiple sites: This increases your chances of getting more surveys and making more money.
Complete your profile: Some survey sites match you to surveys based on your profile.
Be honest: Giving truthful answers ensures you stay eligible for more surveys.
Payment methods are typically cash via PayPal, bank transfer, or free gift cards (such as to Amazon, Walmart, Starbucks, and more).
You won’t get rich from these surveys, but it’s a nice way to earn some side cash. I know that some people think that surveys are a waste of time – but I know several people (including myself) who liked doing them because they are so flexible. I think the right mindset to have is that they will definitely not make you rich, and some can take a long(er) time to earn $5.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
3. Focus groups and paid research studies
You can make money by participating in focus groups. Companies pay for your opinions to improve their products and services.
This is similar to paid online surveys, but paid research studies and focus groups typically pay more.
User Interviews is a popular site where you can find paid research studies and focus groups.
Big companies like Pinterest, Spotify, Macy’s, Home Depot, Trip Advisor, and Amazon use User Interviews to get feedback on their new products, apps, and websites.
You can make $50 to $100 per hour, or even more, just by sharing your thoughts and feedback.
I did a user interview myself and got paid $400 for just one hour of work. It was easy, and everything was done online through a video call where they asked for my opinion on a new feature for a website.
Please click here to learn more about User Interviews.
Also, if you’re interested in paid medical research studies, then that can be a high-paying option as well. When my husband was younger, he took part in a few medical research studies to help us make extra money. He usually got paid about $1,000 for a week’s worth of time.
4. Dividends
Okay, so this isn’t exactly a side hustle, but it is a way that you can make more money so I wanted to include it here, especially since it’s one of my favorite ways to increase my income.
Dividends are an awesome way to earn passive income. You don’t need to do much work, and the money comes in. Many companies pay dividends to their shareholders regularly.
Here are a few benefits of investing in dividend stocks:
Regular income: You can receive payments quarterly or even monthly.
Low effort: Once you buy the stock, you don’t have to do much else.
A dividend is a portion of a company’s profits given to its eligible shareholders. You can receive dividends in cash, stock, or even options to buy more stock.
If you own shares in a company that pays dividends, you’ll get a dividend for each share you own.
For example, if you have 10 shares in Company XYZ and they pay $5 in cash dividends each year, you’ll get $50 in dividends for the year. Dividends are usually paid out quarterly, which means 4 times a year. So, in the example, the $5 in yearly dividends would likely be paid as $1.25 per quarter for each share you own.
You can learn more at What Are Dividends & How Do They Work? A Beginner’s Guide.
5. Buy and sell flipping
Flipping items is a great side hustle, and this is when you buy items at a low price and sell them for more.
The benefits of buy and sell flipping include:
Flexibility: You can flip items in your free time.
Profitable: Potential to earn anywhere from $50 to $5000 a month.
Fun: The thrill of finding good deals and making a profit.
I have flipped many items for resale over the years, and I even had a small reselling business at one point. It’s a fun way to make extra money.
While flipping items by buying and selling them for profit can be exciting, it has some downsides. One big risk is that you might not always make a profit, especially if the market drops or you overestimate the item’s value. It can also take a lot of time to research products, find good deals, and manage your listings. There’s tough competition too, as many people are trying to flip items, which can lower prices.
You can learn more at How I Made $40,000 In One Year Flipping Items.
6. Sold clothing
Selling used clothing can be a great way to make extra money. You can find clothes to sell in many places: thrift stores, clearance aisles, garage sales, and even your own closet.
For me, I liked to sell clothing on eBay as well as in person to places like Plato’s Closet. There are many more options these days, such as Poshmark and Facebook Marketplace.
Selling used clothes as a side hustle has its ups and downs. On the plus side, it has low start-up costs because you can start with clothes you already own, and it’s eco-friendly, supporting sustainable fashion. You also get to work on your own schedule, and there’s a high demand for secondhand clothes, especially trendy or vintage items. But it can take a lot of time to sort, clean, photograph, and list the clothes. Plus, shipping costs can cut into your profits, especially for heavier items.
I’ve sold a lot of clothing over the years, both online and in person (I also used to work at a secondhand clothing store for many years). I even had a small clothing resale business at one point, so I have plenty of experience in selling used clothes!
You can learn more at 16 Best Places To Sell Clothes For Cash.
7. Social media management
Social media management is a great side hustle if you enjoy creating content and engaging with people online.
Social media managers handle businesses’ social media accounts like Facebook, Instagram, and Twitter. They create posts, reply to comments, and help grow their followers.
Some benefits include:
Flexible hours: Many times, you can work anytime, making it easy to fit around your main job. This is because you can schedule social media posts to go out at the exact time that you want.
You can be creative: You can express your creativity through different types of content.
Work from anywhere: All you need is a laptop and internet.
But, there are some cons too. This wasn’t my favorite side hustle, mainly because it was stressful at times. It is very time-consuming (creating good content and engaging with followers can take a lot of time), there is constant learning (social media trends change quickly, so you need to keep learning new skills), and some clients may have high expectations and tight deadlines.
If you like being creative and spending time online, social media management can be a fun and rewarding side hustle.
8. Virtual assistant
Being a virtual assistant is one of my favorite side hustles. It’s flexible, and you can work from anywhere. You handle tasks for other people or businesses, like managing emails, scheduling appointments, or doing research.
Why I like virtual assisting:
Flexible hours: You set your own schedule.
Work from home: No need to commute.
Variety of tasks: You can decide what virtual assistant tasks you want to provide.
Working as a virtual assistant is a great way to make extra money. It gives you flexibility, a variety of tasks, and you can get started with just a computer and an internet connection.
You can learn more at Best Ways To Find Virtual Assistant Jobs.
9. Freelance writer
As a freelance writer, you get to write for different clients and websites. You can work from home and set your own hours. This side hustle can be very flexible, especially if you enjoy writing.
I’ve been a freelance writer for many years, and I really enjoy it. I’ve written for lots of different websites and companies, and I’ve made good money doing it.
The positives of being a freelance writer include:
Flexible schedule: You can write during your free time.
You get to decide what you want to write about: You get to write about different topics.
Work from home: No need for a commute.
There are some cons, though, such as income can vary, with some months being busy while others are slower. Finding clients requires actively searching to keep work steady. Plus, meeting deadlines can also be stressful, adding pressure to the job.
Freelance writing is a great side hustle if you love to write and want to make extra money. It takes time to build a steady income, but it can be very rewarding.
You can learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).
10. Receipt scanning apps
Using receipt scanning apps is an easy way to earn some extra money. You just take a picture of your receipts from shopping, and these apps give you points or cash back. Here are some of the best apps to try:
I’ve been using receipt-scanning apps for years, and I love how easy they are to use. You can earn points or cash without spending much time. Plus, since I already have the receipts, it’s great to make some extra money by doing almost nothing.
My favorite receipt-scanning apps are:
I like to use both Fetch Rewards and Ibotta on all of my receipts (yes, at the same time to stack rewards).
Receipt-scanning apps can be handy, but they do have some downsides. One of the main drawbacks is that the rewards are usually small, so it can take a while to earn a significant amount. You also have to remember to scan receipts regularly, which can be time-consuming and easy to forget.
For me, though, I like to use them on all of my receipts as it only takes a quick moment to do.
11. Mystery shopping
When I had student loans to pay off, I turned to mystery shopping to make extra money. It didn’t make me rich, but it helped increase my income and allowed me to enjoy some free meals and free stuff (like free makeup and household goods).
Mystery shopping involves acting like a regular customer and then reporting on your experience. You might review a restaurant, shop at a store, or even evaluate a phone call. Companies use your feedback to improve their service.
What I like about mystery shopping:
Extra cash (typically $10 to $15 per mystery shopping task)
Free items or meals (you’re usually given an amount to spend in the store or restaurant)
Flexible schedule
Mystery shopping helped me make around $100 to $200 a month.
Joining a reliable mystery shopping company is important, though, as there are a lot of scams. I used Bestmark and had a good experience with them.
Mystery shopping won’t replace a full-time job, but it’s a fun way to make some extra money.
You can learn more at How To Become A Mystery Shopper.
12. Babysitter
Being a babysitter is a flexible side hustle. You can choose your own hours and accept jobs that fit your schedule.
Parents often need help on weekends or evenings, which can be perfect if you are busy during the day.
What I liked about babysitting:
Good pay – around $15 to $25 per hour (depending on where you live)
Helps develop responsibility
Flexible hours
Of course, there are downsides to being a babysitter, such as it can be tiring watching kids for long periods, and sometimes this side job means that you’ll be working late nights or weekends.
I was a babysitter when I was younger and I really liked it. The kids I babysat were fun to be around!
13. Coaching
Coaching can be a great side hustle. You get to help people grow and achieve their goals. It also offers flexibility because you get to be your own boss and decide your work hours.
I used to offer blog coaching in the past, and I enjoyed helping people learn how to grow their blogs and make money blogging.
It was also really easy for me to do, as I have been blogging for many years and have learned a lot about what to do and what not to do.
If you have the expertise and enjoy motivating others to improve, then there is probably a topic that you can coach others on.
14. Course creator
Creating an online course can be a game changer for your income. I launched my first course, Making Sense of Affiliate Marketing, in July 2016. Within the first year, it brought in around $434,698. This wasn’t due to any fancy marketing techniques but mainly through word-of-mouth.
Even though the course was successful, it didn’t come easy. I was nervous about it, especially since it was my first. I had worries that no one would be interested. Plus, many people said that your first course usually isn’t great.
Yet, the desire to help others understand affiliate marketing kept me going. By sharing my knowledge, I aimed to help bloggers increase their income. Online courses are beneficial because they can include interactive materials, workbooks, and community support, which go beyond what an ebook offers.
Here are some success stories from my course:
One student increased their monthly income from $272 to $4,400.
A new blogger got their first affiliate sale just two days after taking the course.
Another went from earning $87 a month to over $1,700 the next month.
And I have helped countless bloggers earn well over $100,000 a year from their blog and turn it into a full-time income.
Creating a course is a lot of work, but it can also be very rewarding. It allows you to reach a wider audience and can become a substantial income stream. If you have knowledge to share, you may want to try creating your own online course.
This is a business idea that I recommend more people start! I enjoy taking courses from people and sign up for them all the time. I love learning, and so do others.
You can learn more at How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.
15. Affiliate marketing
Affiliate marketing is one of the most popular side hustles. It’s easy to start and doesn’t need a lot of money up front.
You promote products and earn a commission for every sale made through your referral link. This can be done on social media, a blog, a YouTube channel, and more.
What I like about affiliate marketing:
Low start-up cost: You don’t need much money to start.
Flexible schedule: Work when you want.
Passive income: You can earn money even when you’re not working.
Affiliate marketing can be a fun and profitable side hustle. Just remember to stay patient and persistent!
You can learn more at What You Need To Know About Affiliate Marketing For Beginners.
This small house we owned had 4 bedrooms and we rented out two of them.
16. Rent out a room in your home
Renting out a room in your house can be a simple way to make extra money. If you have unused space, like a spare bedroom or basement, you can turn it into a rental.
I have had several roommates in the past, and I liked this side hustle a lot.
What I liked about making extra money by renting out a spare room:
Extra income to help pay the mortgage
If you have unused space, then this can be a good way to fill it
Of course, there are challenges to having a roommate, and it isn’t always perfect. Sometimes, it can be hard to share common spaces (like the kitchen and bathroom), and it can also take time to adjust to someone else’s lifestyle.
Renting out a room isn’t for everyone, but it can provide steady income with minimal effort.
17. Shop at cash back websites
Shopping at cash back websites is an easy way to earn extra money. These sites give you a percentage of your purchase back as cash. You just have to sign up, shop through their site, app, or browser extension, and earn rewards.
I like cash back sites because they are easy to use and you don’t have to pay anything extra for using them.
Shopping through cash back sites can give you a nice little bonus on things you already planned to buy. It’s like getting paid to shop.
My favorite cash back sites are:
Rakuten (for online shopping like clothing, home goods, etc.)
Upside (for gas)
Honey (for online shopping like clothing, home goods, etc.)
Fetch Rewards (for groceries)
18. Earn credit card rewards
Using credit cards (the smart way) can help you earn rewards like cash, travel points, and more.
I’ve been using rewards credit cards for years, and now they’re the only cards I use. They help me save money on travel, earn cash back, and more.
By choosing the right credit card and using it wisely, you can enjoy great rewards and make the most of your spending.
Remember, carrying a balance on your credit card can lead to interest charges, which can outweigh the benefits of rewards. Always try to pay off your full balance each month to avoid these fees.
You can see my favorite credit card rewards at Best Rewards Credit Cards For This Year | What You Need To Know.
19. Brand ambassador
Being a brand ambassador is one of the more popular side hustles.
You represent a company and help promote its products. Often, you act as a public spokesperson. You can find opportunities on Facebook and many cities have brand ambassador groups where gigs are posted.
Brand ambassadors can earn between $15 to $20 per hour. Some high-end gigs can pay up to $100 per hour.
Benefits of this side hustle include flexible hours and the chance to work for brands you like. You may be able to get free products or swag, too, and this is one thing I really liked about being a brand ambassador in the past.
20. Newspaper delivery
Delivering newspapers can be an easy way to make money. It’s a job you can do before school or work, and it lets you get exercise too. You may drive, ride your bike, or walk to each house and leave the newspaper by the door.
The benefits of newspaper delivery include:
Exercise: If you walk or ride your bike, you can get plenty of fresh air and exercise.
Scheduling: Most routes are in the early morning, so you still have the rest of the day free.
Tips: Some customers might give you tips during holidays or for good service.
But, there are some downsides, with the main one being that you typically have to wake up really early for this job. For newspaper delivery, you usually have to wake up very early in the morning, often around 3:00 to 5:00 AM. The exact time depends on how big your delivery route is and what the newspaper company requires. The goal is to have all the newspapers delivered by the time most people wake up, usually around 6:00 or 7:00 AM, so starting early is really important.
The other main negative is that a big collection of newspapers is, of course, heavy!
When I was younger, I helped a friend’s family with their newspaper run whenever I slept over at their house. They used their van to deliver a bunch of newspapers, and I got to tag along.
21. Help others with their resume
Helping others with their resume can be a rewarding side hustle. You can earn extra money while also making a big difference in someone’s job hunt.
When I was in my last year of college as well as about a year after I graduated, I helped several people with their resumes. I didn’t charge a lot (and many times worked for free or for a free meal), but I liked looking at resumes and finding ways to make everything sound better.
I was also really good at it and it came so easy to me!
Some benefits of this side hustle include:
Flexibility: You can do this from home.
High demand: Many people need help with their resumes.
Work at your own pace: There’s no rush, and you can take on as many clients as you want.
By helping others with their resumes, you can earn money and provide help. It’s a great way to use your skills and make a difference in someone’s life.
22. Enter contests and giveaways
Entering contests and giveaways can be a fun and rewarding side hustle. You will definitely not win every time, but the more you enter, the higher your chances. People have won cash, gift cards, vacations, and electronics through these events.
You can spend a little time each week entering different contests. You can find them online, on social media, and in emails from brands you follow. Some people set aside about an hour each week to enter as many as they can find.
I found success this way. For example, I once won $10,000 from a financial blog’s anniversary contest, and this was a major win early on in my side hustle journey.
Remember, entering contests should be fun. Think of it as a hobby that could pay off with some great surprises. You most likely won’t get rich nor win the lottery doing this.
This is a screenshot from this month. I earned around $300 playing games on my phone.
23. Rewards sites (GPT sites)
Rewards sites, also known as GPT (Get-Paid-To) sites, are platforms where you can earn money by doing simple tasks online.
Tasks you might do include:
Taking surveys
Reading emails
Playing games
Shopping online
Trying new apps and services
Clicking ads
Rewards sites have been around for a while and have proven to be a reliable way to earn some extra cash. Though the payouts are often small, they can add up over time. For instance, Swagbucks has paid out over $80 million to its users.
Using multiple sites can help maximize your earnings. It’s easy to do tasks during your free time, making it a flexible way to earn money without a huge time commitment.
It’s key to choose reputable sites to make sure that you get paid for your efforts, so I recommend that you stick with popular, well-reviewed platforms to avoid scams.
Rewards sites will most likely not replace a full-time income, but they can be a fun way to get some extra spending money.
Here’s a quick list of the best GPT sites:
24. Test websites (User Testing)
Testing websites, also known as user testing, is a popular side hustle. You get paid to visit a website or app and give feedback on your experience.
You will need a computer, a reliable internet connection, and sometimes a microphone.
User testing is flexible. You can do it in your free time from the comfort of your home. This side hustle is great if you like trying new things and providing feedback.
I have personally been paid to do user testing in the past, as well as paid others to do user testing on this very website, Making Sense of Cents. I thought it was an easy side hustle where you just share what you honestly think of a website.
25. College textbook resale
Selling your college textbooks is a great way to make some extra money.
When I was in college, I sold all of my college textbooks once I was done, and I always tried to make the most money (so, that typically meant that I never sold it directly back to my college bookstore, because they usually paid the least amount).
Reselling college textbooks as a side hustle has its ups and downs.
On the plus side, there’s a high demand for cheaper, used textbooks, so you can make good money if you buy low and sell high. It’s easy to start, especially if you begin with your own used books, and it’s a great way to encourage reusing materials.
But the market is seasonal, with most demand at the start of each semester, so your income might be inconsistent. New editions can come out, making older books less valuable, and storing a lot of books can be tough. Plus, shipping heavy textbooks can cut into your profits if you’re not careful.
Recommended reading: 17 Best Places To Sell Used Books For Cash
Frequently Asked Questions
Below are answers to common questions about finding the best side hustle.
What are the top side hustles that can bring in good money?
Top side hustles that can bring in good money include freelancing, blogging, flipping items for resale, and renting out rooms in your home.
How can I find side hustles that pay me every week?
You can find weekly pay side hustles through gig economy platforms like Uber, Lyft, and DoorDash. Freelancing on websites like Upwork or Fiverr might also pay weekly, depending on your agreement with clients. Another option is finding part-time jobs at local businesses that pay weekly wages.
Can you suggest some side hustle ideas I can do from my house?
There are several home-based side hustles. You can start freelancing in areas like writing, graphic design, or social media management. Another idea is to sell virtual assistant services. Teaching online courses or tutoring students in subjects you excel at is also a great way to earn from home.
What side jobs are out there for someone with no experience?
There are many side jobs for beginners. You can try pet sitting or dog walking through apps like Rover. Babysitting is another option if you like spending time with children. Delivery driving for companies like Uber Eats or Instacart doesn’t require much experience and can be started quickly too.
My Favorite Side Hustles – Summary
Now that we have gone over my full list, I want to talk about one of the main deciding factors of a side hustle.
Your time is important. Some side jobs take a lot of time but don’t pay well, while others pay more with less time.
Think about how much free time you have after your main job and how much money you want to make. This balance is very important. Track the hours you work and the money you earn to see if it’s worth it. The best side job fits into your life without stressing you out.
Also, another important deciding factor is choosing a side hustle that aligns with your skills and lifestyle. If you’re good at something, you’re likely to enjoy it more and perform better.
So, I recommend thinking about your current skills and hobbies. Matching your side hustle to your skills makes it easier and more enjoyable. Plus, you’re more likely to find success and earn extra income.
Ohio provides diverse living experiences, from the bustling cityscapes, to the charming small-town feel. The state is also known for its beautiful natural areas, such as the Cuyahoga Valley National Park, which is perfect for adventure. Whether you’re browsing homes for sale in Cleveland, considering renting in Columbus, or exploring houses for rent in Cincinnati, here’s what you need to know before moving to Ohio.
Ohio at a glance
Ohio’s weather is characterized by its four distinct seasons, with cold, snowy winters and warm, humid summers. Average winter temperatures range from 20°F to 40°F, with significant snowfall in northern areas and occasional ice storms. Summers are typically warm, with temperatures between 70°F and 90°F, and high humidity levels. Ohio is full of vibrancy and affordable living, featuring diverse cities and a rich cultural scene. Cleveland, one of Ohio’s largest cities, is known for its Rock and Roll Hall of Fame, while Columbus, the state capital, thrives with a strong tech and education sector. Affordable living is a highlight, with cities like Toledo and Springfield appealing for budget-conscious individuals.
Major employers in the state include The Ohio State University, Procter & Gamble, and General Electric, providing diverse job opportunities. The state’s cultural scene is vibrant, featuring numerous festivals such as the Columbus Arts Festival, Cleveland International Film Festival, and Cincinnati’s Oktoberfest. For outdoor enthusiasts, Ohio offers a variety of recreational activities, from hiking in Cuyahoga Valley National Park to enjoying the shores of Lake Erie.
1. The cost of living is low here
Ohio offers a notably low cost of living compared to many other states, making it an attractive destination for those seeking affordability. The Median home price in Ohio is $263,000, which is significantly lower than the national median of $442,451. Rental prices are also reasonable, with an average monthly rent of $1,525 in major cities like Cleveland. The overall affordability extends to groceries, healthcare, and utilities, which are generally lower than the national average, allowing for a more budget-friendly lifestyle.
If you’re planning on moving to Ohio, you’ll want to consider the pros and cons before making this state home.
2. Sports is a way of life in Ohio
Sports culture is deeply ingrained in Ohio, where fans passionately support their local teams across various sports. The Cleveland Browns and Cincinnati Bengals command significant attention in the NFL, with game days drawing large crowds. The Cleveland Cavaliers, with their NBA championship win in 2016, have a dedicated fan base, and Ohio State University’s football team, the Buckeyes, is renowned for its competitive spirit and historic rivalries, particularly with the University of Michigan.
3. Be prepared for the snowy winters
Winters in Ohio can be harsh, particularly in the northern parts of the state. Temperatures frequently drop below freezing from November to March, and the state experiences significant snowfall, averaging 25 to 30 inches annually. Northern cities like Cleveland often see heavier snow compared to southern regions such as Cincinnati. Ice storms and cold snaps are also common, necessitating winter preparedness with snow tires for vehicles, emergency kits, and precautions for potential power outages and hazardous road conditions.
Travel tip: If you’re moving to Ohio, consider downloading the Ohio Department of Transportation’s “OHGO” app. It provides real-time updates on road conditions, traffic, and weather alerts, helping you navigate safely through snow and ice.
4. There are plenty of job opportunities
Ohio’s diverse economy provides ample job opportunities across various sectors. Major employers include The Ohio State University, Procter & Gamble, and General Electric, which offer a range of positions in education, consumer goods, and manufacturing. The state is also a hub for healthcare, with institutions like the Cleveland Clinic and Ohio State University Wexner Medical Center leading the way. Additionally, Ohio’s growing tech industry, especially in cities like Columbus, offers career opportunities in startups and tech firms, further enhancing the state’s employment.
5. Ohio has diverse outdoor regions
Ohio’s natural landscape offers a variety of outdoor recreational opportunities. The Cuyahoga Valley National Park provides scenic hiking trails, such as the Ledges Trail with its stunning rock formations and panoramic views. Lake Erie’s shores offer boating, fishing, and beach activities, while the Hocking Hills region features picturesque waterfalls and rugged terrain perfect for hiking and camping. The state is also great for winter sports, where you can enjoy skiing and snowboarding at resorts like Snow Trails and Mad River Mountain.
Insider scoop: For a unique outdoor adventure, consider visiting the “Gorge Overlook” in Cuyahoga Valley National Park during the fall. The overlook provides a breathtaking view of the park’s vibrant autumn foliage, and it’s less crowded compared to other scenic spots.
6. The people here are friendly
Living in Ohio, you’ll soon discover that Ohioans are known for their welcoming and friendly demeanor, contributing to a warm and inclusive community atmosphere. Whether in bustling cities like Columbus or smaller towns like Granville, residents often exhibit a strong sense of neighborliness and community spirit. Local events and festivals frequently showcase the state’s hospitality, with people coming together to celebrate and support local initiatives.
7. Ohio and Michigan do not get along
The rivalry between Ohio and Michigan is famously intense, particularly in college sports. The annual football game between Ohio State University and the University of Michigan, known as “The Game,” is one of the most storied rivalries in college football, with both fan bases passionately supporting their teams. This rivalry also extends beyond sports, influencing regional pride and interactions.
Insider scoop: While the rivalry adds a layer of fun and competition, it’s wise to be aware of this local sentiment if you find yourself in the midst of sports discussions or regional events.
8. The state’s location is close to major cities
Ohio’s central location in the Midwest provides easy access to several major cities outside the state. Residents of Ohio are about a two-hour drive from Pittsburgh, PA, and Detroit, MI, allowing for convenient travel to these bustling metropolitan areas. This proximity to cities like Indianapolis, IN, and Louisville, KY, also broadens business and cultural opportunities. Ohio’s central position enables its residents to enjoy the benefits of nearby major cities while still experiencing the state’s more relaxed and affordable lifestyle.
9. There are great schools here
Ohio has a strong educational system with a range of high-quality schools and universities. Public schools in cities like Solon are often ranked among the top in the state, offering excellent academic programs and extracurricular activities. Higher education institutions such as Ohio State University, Case Western Reserve University, and the University of Cincinnati provide a range of academic and research opportunities. Additionally, the state’s emphasis on education is reflected in its support for public and private schools, contributing to a robust educational environment for students.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.