When a checking account is overdrawn, which can happen when a check bounces, an individual may wonder, “Do I need overdraft protection?” The answer is: It depends. Overdraft protection may suit your financial habits, but it will most likely cost you. According to the Consumer Financial Protection Bureau, Americans paid more than $9 billion in overdraft fees in 2023 alone.
What Is Overdraft Protection?
Overdraft protection is a set of measures put in place to ensure you have enough money in your bank account to conduct transactions such as debit purchases and bill payments.
An overdraft on your account means the bank is attempting to make a withdrawal — like an electronic payment or ATM withdrawal — and there aren’t enough funds to cover the amount requested.
If you opted into overdraft protection, the bank authorizes the withdrawal instead of declining it and pays the difference. This can be beneficial in certain situations that crop up — say, you get paid tomorrow but don’t have the funds today for a purchase you really need, or if there’s a lag between your current vs. available balance. You’ll usually be charged a fee in addition to repaying the amount of the overdraft. In other words, you’re borrowing money from the bank to cover the transaction. You’ll need to pay it back by making a deposit to your bank account to get your account balance to zero or above.
This kind of protection gives you a safety net in a couple of ways. It can prevent you from defaulting on or making a late payment of bills, while also ensuring that you won’t have your debit card declined.
Overdraft is not the same as non-sufficient funds (NSF). This is when the bank will decline rather than cover the transaction due to the fact that there isn’t enough money in your account. You could be charged a fee for this event as well.
How Much Does Overdraft Protection Cost?
Overdraft fees currently average around $35. However, some banks allow you to link a checking and savings account from the same financial institution so that you have no-fee overdraft coverage when money transfers between these accounts.
In some cases, you may pay overdraft fees multiple times in a day, though many banks limit the number of times you may be charged. For example, if you went to the grocery store and your bill came to $35 and you only had $10 in your bank account, you’ll be slapped with an overdraft fee. Later in the day, if your recurring utilities auto payment was processed, you’d face an additional fee for the bank covering that payment — that is, unless your bank limits the number of times you may be charged.
Keep in mind that you generally need to opt into overdraft protection in order for a bank to overdraft your account. That being said, it can depend on the type of transaction — check or recurring electronic payments may not require opt-ins. It’s best to check with your bank if you’re not sure whether you’ve opted for overdraft protection.
It’s important to be aware that in January 2024, the Consumer Financial Protection Bureau introduced a new proposal to reduce overdraft fees to as low as $3. If the proposed rule passes, it could go into effect on October 1, 2025.
💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.
Pros of Overdraft Protection
To help figure out whether you should opt in or not, carefully consider the pros and cons of overdraft protection. It has several benefits, including:
• Access to funds when an emergency occurs or during an unexpected event. You can write a check, say, for more than you have available, and it will be paid.
• May expedite transactions, especially when you’re making a necessary purchase like at the grocery store or gas station.
• Could potentially save you from being embarrassed when a transaction is declined.
• May help you avoid fees if you link checking and savings accounts from the same bank.
• Prevent returned check or payment fees from companies, such as utilities companies.
• Can also prevent late bill payment by covering costs.
Cons of Overdraft Protection
Although there are perks to opting into overdraft protection, there are also drawbacks, such as:
• Paying overdraft fees, possibly multiple charges per day
• Could encourage you to overspend, knowing the bank will step in and cover you, rather than becoming motivated to get better with your money
• Your bank account may not be in good standing if you have a history of overdrafts
Should I Get Overdraft Protection?
Whether you should get overdraft protection depends on what your priorities are.
It can help to prevent transactions from being declined, especially when you have recurring automatic payments or when you’re paying for necessities, like a tank of gas. It may offer you peace of mind since you don’t have to wonder whether creditors are going to come knocking on your door because of failed payments.
However, this convenience does come at a price. Being charged an average of $35 per transaction can really add up. It can become downright problematic if your account frequently overdrafts. Most people want to avoid paying bank fees, especially when they are this high.
If you’re concerned about making sure you have enough money to cover transactions, you can take measures to prevent your balance from sinking too low. It’s a smart idea to adopt these measures, described below, whether or not you opt into overdraft protection.
What Happens When You Don’t Have Overdraft Protection?
When you don’t have overdraft protection, your bank will typically decline a transaction if you don’t have the funds to cover it. So a check you write would not be paid or a debit card transaction would not go through if the cash isn’t in your checking account.
However, each bank will determine what action to take depending on the amount overdrawn and the type of transaction. For instance, if you pay someone a small amount via check and there isn’t enough money in your account, your bank might choose to overdraw your account and charge a fee. Or if you’re swiping your debit card to buy something not too costly, some banks may allow the overdraft and not charge a fee as long as you can cover that amount within a certain amount of time.
Tips for Avoiding Overdraft Fees
Your best bet to not pay any overdraft fees is to take measures to avoid your bank balance dipping below zero. Here are a few best practices to avoid overdraft fees:
• Turn on bank account alerts to monitor your balance and notify you — either via text, email or push notifications — when your balance is at a certain amount.
• Download a budgeting app and set up alerts for when you’re overspending.
• Set reminders for when automatic payments go through or when bills are due so you can deposit funds before those dates.
• Link your savings and checking account together (make sure your bank won’t charge you a fee for this type of protection).
The Takeaway
Overdraft protection could be useful, but you don’t want to rely on it too frequently. Otherwise, you might end up paying hundreds of dollars in fees that could go towards other goals. Think carefully about your cash flow and spending habits to decide whether or not it’s right for you.
Luckily, there are financial institutions that don’t charge overdraft fees. This could help you earn, save, and spend responsibly — and work toward achieving financial fitness.
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
Should I have overdraft protection on or off?
Whether you should opt into overdraft protection is a personal choice. You should weigh some of the factors such as how often the balance in your account is likely to be close to zero, how many fees you are willing to pay, if you are comfortable with declined transactions, and how often you are able to check your bank account balance.
Does overdraft protection hurt credit?
Overdrafting your bank account generally doesn’t hurt your credit score because this activity isn’t reported to the credit bureaus. However, if you link your bank account to a credit card account (for automatic payments, for instance) and you fail to make a payment, your score might be affected.
Do you have to pay back overdraft protection?
Yes, you’ll need to pay back the amount that’s overdrawn, plus an overdraft fee if the bank charges you one.
Photo credit: iStock/Prostock-Studio
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.
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.
4.60% APY 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.
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 .
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The cashless envelope method is a fabulous way to jumpstart your budgeting process.
It is proven that the cash method will help you to save money, get out of debt, and make sure you’re spending your money that you actually have to spend.
There is no overspending allowed with the envelope system.
When using envelopes whether with cash or cashless, if you are out of money, you’re out of cash to spend.
In today’s society, more and more transactions are being done online, which makes using the “traditional” cash envelope system very tricky and complicated. So many people are looking into alternatives – specifically using a cashless envelope method.
Personally, a cashless envelope system is something that we have used for many, many years. As much as I would like to say that I’m great with cash. I’m not. I tend to misplace it more often than I prefer. Also, I do enjoy my credit card rewards that I receive the extra couple $1,000 helps to pay for quick travel getaways.
Today, in this post, you are going to learn how to be successful with the cashless envelope method. We’re going to outline how to use the cashless envelope system, provide the trackers and templates that you need.
Then, you can start budgeting with success today.
How do you Use envelope System without cash?
The method of using the cashless envelope system is much like the traditional cash envelope system, except you’re actually not physically stuffing your envelopes with real cash.
You are tracking your spending either with a printable template or a spreadsheet. Whatever method you choose it doesn’t matter. It is the basics of cash system that matter.
The principles are the same. You cannot spend more money than you allocated for a certain category.
Later in the post, we will discuss how to track your “cash” using either a printable template or a spreadsheet.
Reasons to Not Use Cash
There are many reasons you may not want to have cash on hand. Here are some of the most popular reasons not to use cash:
It gets lost. Personally, I am guilty of misplaced cash. Thankfully, it has always appeared. But, it is hard when you can’t find the money you need to make purchases.
It gets stolen. Getting your wallet stolen sucks. Getting your wallet stolen when you just stuffed your envelopes with cash is even worse. You are left without spending money for a week or two.
You can’t earn rewards. A very simple way to earn extra money is with rewards on your credit or debit card. You can earn 2% cash back by paying with these cashless methods.
Counterfeit money is a real problem. Unfortunately, there is more counterfeit money in circulation than you would believe. The cash withdrawn from the bank is always checked. But, the change you receive from stores may be counterfeit.
Bacteria on cash. Have you thought about how many people have touched your $20 dollar bill? There is a lot of stuff lurking on cash and coins. Nowadays, many companies are not even accepting cash.
There are many more reasons you may not like to use cash. Plus you need to account for online purchases where another payment method is a must.
Now, you are going to learn to manage money by using the cashless envelope system.
How to Use the Cash Envelope System Without Cash?
Just like the traditional cash envelope system, you are allocating money to each of your categories or envelopes.
Instead of actively putting money in envelopes, you are tracking your spending with a spreadsheet, an app, or a paper cashless envelope tracker.
First, you need to decide what cash envelope categories you want to track. Typically, these are the most popular envelopes to use “cash” for:
Groceries
Eating Out
Clothing
Gas
Gifts
Entertainment
Haircuts / Beauty / Personal Care
Pocket Money or Slush Money
However, you can use as many of the budget categories as you want.
1. Create a Budget
The first step to proper money management is to make a budget. First of all, a budget isn’t meant to be constricting, it is a money plan of how you want to spend your money.
By creating a budget, you are prioritizing where you want to spend your income.
It is a good thing to have a budget even though 69% of society doesn’t know how they spent their money last month (source).
If you have never created a budget, then I would highly recommend our Budgeting Course that goes into detail about how to properly create a budget.
Related reading: How to Make a Budget in 7 Simple Steps
2. Track Purchases Immediately
When you make a purchase, you need to write it down on your cashless envelope tracker – just like you would when using cash. You need to see the money being subtracted from your account.
This is what makes you understand the impact of every single purchase you make over the month.
If you can’t do it right away, save the receipt and write it down when you get home. Just don’t forget to do it!!
By waiting more than a day to track purchases, you may get caught over budget on your envelope budget.
You must stay on top of your envelope budgets!
3. Money is Gone, It is Gone
Don’t get caught with overspending! That is a quick cycle to end up in debt or even worse “borrowing” money from other envelopes.
This is where the rubber meets the road. That popular saying will make sure you don’t continue spending money once you are out of money.
The temptation to spend money will happen over and over. You just need to find ways to stretch what money you have left or be patient until you have more money from your next paycheck.
Make adjustments in the next month for categories where money always seems to be gone early.
4. Money if Leftover, Then Roll it Over
This is why the cash envelope system works so well.
It helps you to create sinking funds. When using the cashless envelope method, it helps you to have one BIG account with all of your sinking funds collected together.
When using a spreadsheet or printable, you can visually see how much money you have rolled over from month to month.
Here is a great example: You set aside $50 a month for gifts. But, only spend money when for birthdays and Christmas and not every month. Typically, you would roll your money over to the next month. So, when Christmas comes you have more money to spend.
For those, who are actively trying to get out of debt, you may take your money left over and put it towards debt. Just make sure those are discretionary accounts that you don’t need money for in future months (spending money would be a good example).
You don’t want to be caught without money set aside for a big bill.
virtual envelope system
The virtual envelope system is the wave of the future. The use of cash is going away.
While cash in the bank is still king, the actual physical transaction of paying with cash is going away. The use of debit and credit cards continue to increase.
You need to have a virtual envelope system in place, so that way you can track your purchase purchases in person, online, and those that are reoccurring.
With the virtual envelope system, you will use a spreadsheet that tracks your spending with a couple of inputs from you. The other option is to use a cashless envelope app with a monthly fee like Empower or Qube Money.
Thankfully, here at Money Bliss, we created a virtual envelope system that works perfectly for cashless budgets and creates sinking funds for you. Learn more about the cashless envelope spreadsheet here.
cashless envelope template
A simple way to start using the cashless system is with free cashless envelope trackers. There is nothing super fancy about the system.
You just have to track your expenses.
This is exactly how do you do the envelope without cash.
Here is a perfect example of how to use the cashless envelope template:
These are great for a mom on the go! Simply stick them in your wallet and write down your purchases.
Ready to Use the Cashless Envelope System?
While Dave Ramsey has created a movement of using cash envelopes. It is becoming harder and harder to use in a cashless society. So, you must find something that works for you.
Personally, we prefer the virtual envelope system. It allows the flexibility of being cashless while still benefiting from the cash envelope system.
To be successful, you must track your spending.
Transitioning to a new system will have some quirks, but over time you will get used to it. The pros are you will live with your means. Then, you move away from living paycheck to paycheck.
By tracking your spending with the cashless envelope method, you are putting your money management forefront and can see your pain points with money.
You can download your cash envelope trackers from our free printables area.
For those who want to use the cashless envelope spreadsheet, then enroll in our in-depth budgeting course.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
ChexSystems is a nationwide credit reporting system that collects information about bank accounts that are now closed. It compiles data on red flags, such as whether a bank account was closed due to numerous overdrafts or suspicious financial transactions.
Many (but not all) financial institutions rely on ChexSystems data to decide whether or not to approve an application for a new checking or savings account. If you have a bank account or plan to open one, it’s helpful to understand what goes into a ChexSystems report and why it might matter to you.
What Is ChexSystems?
Authorized by provisions in the Fair Credit Reporting Act (FCRA), ChexSystems is a risk-management tool for financial entities that are checking an individual’s banking history.
ChexSystems compiles information that can help financial institutions gauge whether a customer is creditworthy before granting them an account. The information that ChexSystems compiles is based only on closed accounts, not current ones, and can reveal whether past accounts were closed voluntarily or due to negative behavior, such as repeated overdrafts or suspected fraud.
Negative marks typically stay on a ChexSystems report for up to five years. If a financial institution sees any kind of negative activity on a ChexSystems report, the applicant may be denied a bank account.
The information in your ChexSystems report can also be used to generate a ChexSystems consumer credit score. This is separate from consumer credit scores generated using information from the three major credit reporting bureaus to help lenders decide who may qualify for a loan.
💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.
What Is In a ChexSystems Report?
Not everyone will have a file with ChexSystems. Those who have a clean banking record may not be listed. However, those who have had bank accounts closed in the past for negative reasons will likely have a report with ChexSystems.
A report will usually include basic identifying information, such as name, address, phone number, and date of birth. It will also include details about your banking history, such as:
• Suspected fraudulent activity
• Non-sufficient funds (NSF) or overdraft activity
• Inquiries (when someone has viewed your ChexSystems report)
• Check cashing inquiries
• Returned checks reported by retailers
• History of checks ordered
• Checking account closures
ChexSystems only collects information for closed accounts, and negative behaviors typically stay on file for five years, as noted above. Current checking accounts do not show up on a ChexSystems report.
Worth noting: If you’ve ever had a security freeze in place, that will usually show up on your ChexSystems report, as will identity theft alerts.
Recommended: Why Is Having a Good Credit Score Important?
How to Get a Copy of Your ChexSystems Report
You can get a copy of your ChexSystems report for free once every 12 months under the Fair and Accurate Credit Transaction Act (FACTA), similar to the way you can request a free copy of your credit reports once a year from the three main credit bureaus.
You can request your ChexSystems report online, by phone, or by mail:
• You can complete and submit the Consumer Request for Disclosure Form online.
• You can call 1-800-428-9623 Monday through Friday, 8:00 am to 7:00 pm CST.
• You can mail a Consumer Request for Disclosure Form to ChexSystems, Inc., Attn: Consumer Relations, PO Box 583399, Minneapolis, MN 55458.
ChexSystems also offers options for people with visual or hearing impairments. In addition, the ChexSystems website details ways to obtain a report for those under age 18 or for an adult for whom you have power of attorney.
There is an exception to this “once a year” free report rule: If you’ve been denied a bank account, you can request a copy of your ChexSystems report to understand the factors behind the bank’s decision, even if less than a year has passed since the last time you pulled a report. The bank is required to specify the reason for the denial, too.
How to Clean Up Your ChexSystems Report
To clean up your ChexSystems report, you’ll first need to get a copy of it, if you haven’t done so already. You can then dispute any negative information you may find. This can help improve your ChexSystems profile if you can get the information removed.
You can reach out to the bank that shared any negative information about your past account and offer to make good on any outstanding obligations. The bank could agree to remove the negative information.
Going forward, you can prevent any further negative information from being reported by practicing good banking habits, such as:
• Maintaining positive balances across accounts so you don’t land in overdraft
• Keeping of checks and deposits to avoid bounced checks
• Protecting your banking information to prevent fraud
• Reporting any suspected fraud to your bank right away
Those actions won’t erase a negative ChexSystems file. But they can help you to stay on your bank’s good side.
Get up to $300 when you bank with SoFi.
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!
Does a ChexSystems Report Affect Your Credit Score?
Your ChexSystems report doesn’t affect your consumer credit scores directly. FICO® credit scores, for example, are based on how responsibly you manage credit and debt. For example, it can reveal how often you pay bills late, how much of your available credit you’re using, and how often a hard credit inquiry shows up on your report.
Those are some of the main factors that affect credit scores.
But there could be a ripple effect. If your ChexSystems report makes it difficult or impossible to open a bank account, you might have a hard time paying bills when they are due. If, as a result, you send payments late, that could lower your credit score.
Options if You’ve Been Denied a Bank Account Due to ChexSystems
If you’ve been denied a checking account because of a negative ChexSystems report, it helps to know what to do next. You have a few options:
• Clean up your ChexSystems file. Request a copy of your ChexSystems report to understand why you were denied. Review your report for any errors or inaccuracies, and dispute any errors you find. Or, if you owe a debt to your previous bank, you could pay it off and request that the bank remove the mark against you.
If successful in cleaning up your report, you can ask the financial institution you recently applied to if they would reconsider the denial. You might also try opening a savings account with the new bank first, see if you can build a relationship, and then add a checking account.
• Try another bank. Find a bank that doesn’t rely on ChexSystems reports to evaluate potential clients. They are out there and can be found with a little research.
• Consider a second chance bank account. These are designed for people who have been denied a checking account previously. These accounts may have higher fees or more restrictions than regular bank accounts. They can, however, help you establish a positive banking history and, if managed well, transition to a standard checking account in the future.
• Use prepaid debit cards in the short term for spending and bill payment. You can load funds onto these cards (which typically charge fees) and then take care of daily needs with that money.
The Takeaway
ChexSystems is a nationwide reporting system for closed bank accounts. Qualified institutions may access ChexSystems reports to evaluate individuals who are applying for new checking or savings accounts. Being listed in ChexSystems means you likely have negative incidents on your closed accounts (e.g., overdrafts, fraud, unpaid negative balances). This can prevent you from opening new accounts. In this situation, you can focus on cleaning up your ChexSystems report or try some workarounds so you can manage daily financial transactions.
SoFi is among the banks that do not rely on ChexSystems when reviewing account applications.
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
What happens if you are on ChexSystems?
If you have a file on ChexSystems, you may find it hard to open a bank account. ChexSystems gathers negative information about past bank accounts, such as past overdrafts or involuntary account closings.
Can you remove yourself from ChexSystems?
It may be possible to remove yourself from ChexSystems if your report includes information that’s inaccurate or reported in error. You’ll need to dispute the information through ChexSystems in order to have it corrected or removed from your file. Or if, say, you owe overdraft charges on a now-closed account, you could contact your former bank, pay what you owe, and see if they would remove the negative information from ChexSystems.
How do I know if I am in ChexSystems?
You can request a free copy of your ChexSystems report annually. If there is a report on file for you (those in good standing may not be listed), getting this record can reveal the details of negative information.
How long does a person stay in ChexSystems?
Generally, negative information can stay on a ChexSystems report for up to five years. If you have multiple negative items on your ChexSystems report, the five-year reporting time frame applies separately to each one.
Which banks report to ChexSystems?
ChexSystems doesn’t specify which banks use its reporting system. If you’re unsure whether a bank reports to ChexSystems or reviews ChexSystems reports when you apply for a new account, you can call the bank and ask. You can also ask whether second-chance banking is an option, in case you’re denied a traditional bank account.
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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
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.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
When shopping for auto insurance in the First State, it makes sense to start by looking into the best car insurance companies in Delaware. But because so many different factors go into choosing an insurance company, it can be hard to know which “best” option is actually right for you.
To make the decision easier, NerdWallet analyzed 18 car insurance companies in Delaware to find the best car insurance for the following categories:
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
How we found the best car insurance in Delaware
NerdWallet’s editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies in Delaware. Our “ease of use” category includes factors such as website transparency and how simple it is to file a claim. As we continue to evaluate more insurance providers and receive fresh market data, our list of best car insurance companies is likely to change over time. In our list of the best insurers in the state, we only include insurance companies that have achieved a 5-star NerdWallet rating.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance company that works best for you. Our ratings are specific to auto insurance; a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.
Best car insurance in Delaware overall: Travelers
Travelers earned the highest overall NerdWallet star rating out of the 18 car insurance companies we analyzed in Delaware. Its wide range of discounts and coverage options, along with the low record of complaints from its customers to regulators, make it a strong contender for drivers shopping for car insurance in Delaware.
One of the largest insurers in the country, Travelers has an expansive network of agents and a large variety of insurance products to choose from. This insurer stands out for its accident forgiveness plans and above and beyond coverage options including gap insurance and premier new car replacement.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Best Delaware auto insurance for your budget: Travelers
Delaware drivers looking for a top-rated insurer that’s also good for their wallet are in luck. Travelers, NerdWallet’s pick for the overall best auto insurer in Delaware, is also the most affordable among insurers with NerdWallet star ratings of 4.5 and above.
Our June 2024 analysis showed that the average rate for full coverage insurance from Travelers is $1,145 per year or $95 per month for Delaware drivers. However, these are median rates and your rate may be different. Travelers also offers a wide variety of discounts, which may help you cut your premium down even further.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
🤓Nerdy Tip
We don’t have data for every single company that offers coverage in Delaware, so Travelers may not actually be the best Delaware car insurance provider for you. Compare car insurance rates from several companies to find the company cheapest for you.
Best car insurance in Delaware for customer complaints: Travelers
Travelers is also the best car insurance company for Delaware drivers when it comes to customer satisfaction, based on the low number of complaints to state regulators compared to companies of similar size. This is based on a comparison across auto insurers in Delaware with a 4.5 NerdWallet star rating or above. Travelers’ high level of customer satisfaction is part of the reason why it also ranks as the best overall car insurance company in Delaware.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Best Delaware car insurance for ease of use: State Farm
State Farm is the best car insurance company in Delaware for ease of use. State Farm customers can manage their policy and submit claims online, and the mobile app has excellent user ratings for both iOS and Android devices. While offering robust online tools and services, State Farm also pairs all its customers with a dedicated agent for more personalized attention.
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Full list of the top auto insurance companies in Delaware
Out of all 18 car insurers NerdWallet analyzed, here is the full list of the companies that provide the best car insurance in Delaware. Only companies with a NerdWallet star rating of 4.5 or higher were considered.
How to get the best car insurance in Delaware
Still not sure which company to go with? Try these tips:
Assess your needs. Evaluate your own needs and preferences before deciding on a car insurance company, since everyone’s needs are different. For example, one person might prioritize a company with strong customer service and a low-mileage discount, while another may prize affordability and a well-polished mobile app.
Do your research. While the companies on this page represent solid choices, you may want to explore other options. Whichever insurer you go with, make sure they’re financially stable, have few customer complaints and offer the coverage you need at a competitive price. You can also check out our full list of auto insurance reviews.
Consider small insurance companies. Small, regional insurers may provide a better price and customer service than the big companies you see advertised on TV. You might have to recruit the help of a local independent car insurance agent to find them.
Shop around once a year. Make a practice of shopping for car insurance quotes about once a year — especially if price is important to you. Insurers adjust car insurance rates regularly, so a company that gave you the best rate last year might no longer be a bargain this year. Be sure to get quotes from at least three insurers, and for the most accurate comparison, use the same or similar coverage options and deductibles while shopping around.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance company that works best for you. Our ratings are specific to auto insurance; a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.
Income verification documents, which are typically requested when you’re applying to rent a home or apartment, are documents that prove you have a job and are earning an income.
A landlord requests these documents to ensure that you’re earning enough to cover your rent payments each month. The income verification paperwork requested may vary from landlord to landlord, and the documents may also differ, depending on your specific career situation. The landlord is simply doing their due diligence to make sure you can afford the rental.
Table of Contents
Key Points
• Income verification documents are required by landlords to confirm a potential tenant’s ability to pay rent.
• Common documents include pay stubs, tax returns or W2 forms, and bank statements.
• For self-employed individuals, 1099 forms or personal tax returns may be necessary.
• Additional proof like a letter from an employer can also be used to verify income.
• These documents help ensure that the rent does not exceed a reasonable portion of the tenant’s income.
How to Show Proof of Income to Rent an Apartment
There are a number of ways that prospective renters can show proof of income to a prospective landlord or property management company. The types of documents you need to produce will likely depend on the specific request from the landlord.
Generally, there are a few standard income verification documents that landlords and property managers are looking for:
• Pay stubs
• Tax returns or W2 forms
• Bank statements
• A letter from your employer
Typically, a landlord will request two forms of income verification. Often, your pay stubs and tax forms will suffice as proof of income. But in some cases, you may need to submit several months’ worth of bank statements. You might even need to ask your employer to write you a letter to assure the landlord that you have a job and do have income.
How to Show Proof of Income if You’re Self-Employed
If you’re self-employed, the process can be more complicated. You may need to submit 1099 tax forms or your personal tax returns showing regular and steady income going back a couple of years. Depending on the nature of your self-employment, you may have business tax returns, such as a Schedule C if you own and run a small business, that you can use to verify your income.
You can also use bank statements from your business bank account to show a landlord that you have income. The documents required will likely be similar to those you need when applying for self-employed personal loans. Ask the landlord what will work best for them so you will know exactly what documents you should present.
How to Show Proof of Income for Side Hustles
You may have a side hustle — perhaps you make and sell crafts online, for instance — and that’s similar to owning a small business. And you should be reporting the income you make from your side hustle to the IRS on your tax return. By presenting your tax return to a landlord, you can prove that you’re making side hustle income.
If you’re working for a ridesharing app or food delivery service, the company should be sending you a tax statement with your annual earnings so that you can report them on your tax return. You can always show a copy of that tax statement to a prospective landlord.
Why Proof of Income is Important
Proving your income is important when you rent an apartment — or apply for credit, for that matter — because it shows that you have money coming in every month, and are able to fulfill your financial obligations. In other words, it shows the property owner that you can make your rent payments.
Recommended: What Is The Difference Between Transunion and Equifax?
Understanding Rent-to-Income Ratio
Along with proving your income, you need to make sure that your rent is not eating up too much of your paycheck. That’s where the “rent-to-income ratio” comes into play. It calculates the percentage of your total income that you’re spending on rent.
The general rule of thumb is that you shouldn’t spend more than 30% of your gross monthly income on housing costs. Depending on where you live, those costs may be a higher or lower percentage of your income, but try to aim for around 30%. An online money tracker can help you keep tabs on your spending.
To figure out your rent-to-income ratio, divide your total annual earnings by 12, which gives you your monthly earnings, and multiply that number by 0.3 (or 30%). The result is how much you can afford to spend on rent per month.
Annual earnings ÷ 12 x 0.3 = How much you can afford to pay for rent
For example, let’s say you earn $50,000 a year. Divide that number by 12 and multiply it by 0.3 and you get $1,250. That’s what you should aim to spend on rent each month. Depending on where you live, you may need to spend more, but that figure gives you a ballpark of where you should be in order to have enough money to pay for your other expenses and hopefully, contribute to your savings as well.
How to Best Prepare to Pay Rent
When you are approved by a landlord to rent an apartment, you’ll need to plan and prepare to pay your rent on time and in full every month.
That means having your finances in order. First, you should have a checking account set up. Typically, you’ll pay your landlord by check or through an online portal and either way, you’ll need a bank account in order to do this. You may be surprised to learn that more than 6% of U.S. households (or more than 14 million people) don’t have a bank account. Fortunately, it’s easy to open a bank account if you don’t have one.
Next, make sure that you’re properly budgeting for your rental expenses. You want to make sure that you have enough money in your account to cover the rent when your landlord cashes your check. A budget planner app can help.
There are other expenses that can go along with renting an apartment or home that you may need to pay. Here are a few you should be aware of:
• Utility bills
• Renters insurance
• Parking, maintenance, and fees for amenities such as a gym or pool
Finally, know the terms of your lease. It’s common for rent to go up once a lease expires, which you may discover when you go to re-sign or renegotiate the rent. Unfortunately, renting is not like a fixed-rate mortgage when you have a monthly rate locked in. So don’t be surprised if the costs of staying in your apartment go up after your lease expires.
The Takeaway
Income verification documents offer proof to a landlord or property management company that you have enough money coming in every month to pay the cost of an apartment or home rental. Typically, pay stubs, tax returns, and bank statements are the only forms of documentation you need. However, if you are a small business owner, you may be required to produce additional documents. The good news: Once you are approved to rent, you can start the process of moving in.
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.
SoFi helps you stay on top of your finances.
FAQ
Can you rent an apartment with no income?
It is possible to rent an apartment with no income, though it likely will be quite difficult. In this instance, having a high credit score can help, because it shows you have a track record of paying your expenses. A healthy savings account can also be useful to prove you have money in the bank.
Can proof of income for an apartment be faked?
It is possible to fake proof of income for an apartment by using online tools to create fake pay stubs and other documents. This constitutes fraud and is illegal, but it does happen.
Is proof of income different for a student?
Yes, it can be, yes. If a student has no income because they are studying full-time, they may need to get a co-signer like a parent or guarantor in order to secure a lease.
Photo credit: iStock/Anna Kim
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Ultimately an Uneventful Week Despite Micro-Volatility
By:
Matthew Graham
Fri, Jun 21 2024, 4:41 PM
Ultimately an Uneventful Week Despite Micro-Volatility
This morning featured an overnight rally driven by weakness in European PMI data and a logical sell-off following much stronger PMI data in the U.S. Specifically, S&P Global’s Services PMI rose to the highest level in more than 2 years. This is some of the earliest available data for the month of June and the burden of refutation is on incoming data that is week’s away (for instance, next week’s headline report, PCE, is still for the month of May). Today’s selling never got out of hand, however, and that meant the week as a whole was wholly uneventful in the bigger picture.
S&P Services PMI
55.1 v s 53.7 f’cast, 54.8 prev
S&P Manufacturing PMI
51.7 vs 51.0 f’cast, 51.3 prev
Existing Home Sales
4.11m vs 4.10m f’cast, 4.14m prev
Leading Economic Indicators
-0.5 vs -0.3 f’cast, -0.6 prev
09:36 AM
Moderate overnight gains, following Europe. 10yr down 4bps at 4.22. MBS up 3 ticks (.09).
10:43 AM
Weaker after PMI data with 10yr now up 1.2bps. MBS down 2 ticks (.06).
12:45 PM
Sideways to slightly stronger after AM sell-off. MBS unchanged. 10yr down 0.3bps at 4.258
04:37 PM
Low volatility afternoon. MBS up 1 tick (.03). 10yr down 0.4bps at 4.256
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Inside: Here are fun things to do with no money. You don’t have to spend money to enjoy yourself! Plus you save money!
Having fun doesn’t have to cost a fortune! You can have a good time without spending a dime.
But, that is the trap, we find ourselves in. We believe that in order to have fun, you must spend money.
However, we are going to debunk that myth.
It is possible to have fun without spending money. This is something my family does ALL-THE-TIME. There are plenty of places to go when you have no money. There is so much available in our society to explore that you never get bored or run out of ideas. And your wallet and bank account will thank you!
If you are looking for fun things to do when hanging out with friends or fun things to do with kids, your boyfriend, girlfriend, mom, spouse, or anyone in your life, this list is for you!
You will find plenty of activities to do at home, at night, or near you.
Plus the best part… we have tons of memories and experiences from these no money activities ideas!
Today, you will get a glimpse into how you can live differently with your money. Show you fun things to do when you’re broke. Maybe you’re not broke, but choosing to live a frugal lifestyle like us. Either way, you will save money along the way that you can use for something else.
It doesn’t matter if you make $15 an hour or have a 6 figure salary, these tips are for you!
We have found plenty of things to do without spending money.
Today, you are going to learn fun stuff to do that doesn’t cost money.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What Can You Do Without Money?
Honestly, a whole lot.
There are so many free activities available today. You just need to put on a different perspective than the urge to spend money. These no money activities will keep your hard-earned cash in your hands and then you can use it towards your money goal. That is a win! Actually a HUGE WIN!
The question is… are you willing to try something new? In this case, something new would be a money free weekend or maybe a no spend month.
There are so many free fun things to do available to us, but we opt to spend money because that is the natural societal habit. Whatever your reason for finding fun things to do that don’t cost money, you are in the right place.
We are going to cover an extensive list of things to do instead of spending money.
This will make your no spend challenge easier or just a desire to save more money to reach your money goals.
Without further ado, let’s cover the 101 plus things to do that don’t cost money.
Fun Things to Do With No Money
We are going to dive into plenty of things to do instead of spending money. This list might surprise you with how many things to do for free.
For the frugal green person, this is exactly what they want to do.
You will find specific ideas for fun things to do with friends, over here.
1. Call a Friend: Back in the day, we spent many hours on the phone just talking with our friends. (Hint: like hours on end talking). Pick up the phone and call your friends. I am pretty sure you will come up with another fun thing to do next.
2. Bucket List: This is a must-have for everyone! Do you have a bucket list of things you want to do? Use timeframes to help create your list – one month, one year, three years, five years, 10 years, 20 years. Or in your lifetime? Don’t be worried if some of these ideas on your bucket list cost money. That will be figured out later. It doesn’t cost any money to make your bucket list.
3. Head to your Local Library: This is the best way to begin a frugal lifestyle. Libraries are jam-packed with free things – books, music, videos, games, or events. Plus you can find options for physical items as well as digital versions. Many libraries now have maker spaces, interaction labs, and kid play areas. These STEM spaces are available to further your creativity and not to spend money on equipment. Check to see if your library offers 3D printing!
4. Volunteer Usher. This is a great tip for Money Bliss reader, Elizabeth and one many of my friends did recently. By volunteering your time, you are able to check out the hottest concert or play for free. The key is your availability and finding the right contacts.
5. Explore Like a Tourist: Have you explored your own city the way you would if you were traveling? More than likely not. There are so many no money activities available. Just grab a tourist guide and start exploring.
6. Geocaching: Join in on the world’s largest scavenger hunt. It is easy to participate and a free activity. The goal is to catch hidden caches using GPS coordinates. All you need is a smartphone or a GPS device to participate. Time to find your next treasure!
7. Volunteer: Have you a passion? Then, find a local charity where you can volunteer. There are plenty of great organizations that are always looking for additional help to reach and help
8. Games: This is a favorite in our house. Each Sunday, you can find us playing games. Whether a card game, dominos, or board game, the options are endless. This is a class thing to do with friends and family. One of our favorites is Taco vs Burrito!
9. Get Outside: We are blessed to live in such unique and beautiful areas. Yet, we barely manage to step foot outside. As a family, this is one of the best ways we save money. It probably tops my list of the best frugal living tips. The world is full of free things to do for free and explore!
10 Start a Club: Remember your favorite after-school club from elementary school? What was your favorite part about it? More than likely, it was about connecting with your friends with the same interests and spending time together. The same concept is the same as adults. Dedicated time to hang out with your friends with the same interests. There are plenty of clubs that you can start. Here are some ideas: reading club, sewing club, cooking club, fishing club, mom and tots club, etc.
11. Explore the Outdoors: Fresh air is amazing for our bodies. Plus our world is filled with no money activities to do. Get outside, explore, and see your surroundings in a fresh perspective. You don’t need a ton of fancy equipment that comes to mind when wanting to explore nature. Just head outside and follow where your feet take you.
12. We Got No Money Party: When you are looking for places to hang out with friends, look no further than your own place. Gather some friends and have them over for the night. The only ground rule is they can only bring food and drinks from their house. Same goes for games and other fun activities.
13. Teach Others about your Hobby: What is your passion? Teach others about your favorite hobby. Who knows… maybe you can turn it into a side hustle and earn extra cash.
14. Scavenger Hunt: Kids love scavenger hunts and guess what… inside every adult is someone who loves a good scavenger hunt. Plenty of free scavenger hunt ideas with a little Google search.
15. People Watch: This is probably one of my favorite money-free activities to do when bored especially at IKEA. Just head to any local place and people-watch. Many times it is better than TV sitcoms. Grab a friend and you can create stories to attach to those you are observing.
16. Puzzles: When is the last time you have taken on a puzzle? Research shows it is one of the best things we can do to slow aging and diseases like Alzheimer’s. More than likely, you don’t have an extra puzzle lying around. Ask to borrow some from friends. Also, you can get ones for free on Next-door or Buy Nothing Facebook groups.
17. Host a Vision Board Party: This is a trending activity right now! There is no better time to manifest your dreams and goals than with your favorite people. Plus you can create a better life for yourself. Learn how to host a vision board party today!
18. Museums and Zoos: Many of the smaller museums and zoos are free entry. To check out the major museums and zoos, check their website to see when they offer free days. Most local cities are required to offer many free days in order to get funding from the city. Another way to get free admission is with your credit card, business affiliation, or college affiliation.
19. Free Tours: These are places to go when you have no money, especially in a big city. The options are endless on the types of businesses in the area. Some free tours include the U.S. Mint, candy factories, capital building, parks, brewery tours, etc. The list can be endless when finding free tours.
20. Apple Classes: Want to learn how to use your phone and be more productive? Need to cap your kid’s time on their devices? Want to learn how to take better pictures with your iPhone? You can do that in one of the many classes. Look for classes near you.
21. Pinterest Party: Let’s face it… We pin a lot of things that we want to do. Recipes we want to cook. Desserts to book. Crafts to make. Skills to learn. Time to brush off those Pinterest boards and find something to do.
22. Movie Marathon: Time to sit back and enjoy all of your favorite movies! If you don’t already have cable or Netflix, then you can still do this without spending money. Start a free Paramount+ trial (just make sure to cancel it), head to the local library, or swap movies with friends.
23. Learn a New Skill: Another productive way to use your spare time is learning a new skill. With learning, the options are endless. With the library and YouTube, it is easy to learn new skills without paying for lessons. The new skill I want to learn is how to play the drums. What is the new skill you want to learn?
24. Local Events Calendar: Hello free activities! Every city will offer some local activities throughout the year. Just mark your calendar. These events are perfect for hanging out with friends and for local fun.
25. Go for a Walk or Run: This is the ultimate no money activity. Grab your shoes and head outside to clear your head. The fresh air will do wonders and doesn’t cost a thing. Maybe this is the time to challenge yourself for that 5K or half marathon?
26. Go for a Bike Ride: For those who own a bike, it would be time to dust it off and go for a bike ride. This is a great way to exercise without a gym membership. Plus, if you are a spender on the way home from work, then look at commuting on your bike to avoid temptations. Personally, I enjoyed cycling so much that it made sense to upgrade my road bike. There may be a small cost to maintaining a cycling lifestyle, but it brings hours of exercise and I am too tired to do anything later.
27. Go Hiking: Find a local hiking trail. Before you go, make sure you have water and some sunscreen.
28. Make a Meal: The caveat is you can only use ingredients that you have currently in your house. No running to the store and spending money. Create a meal from what you have available.
29. Go on a Picnic: This is a favorite in our house! Change up your lunch or dinner by eating in a different location. Load uptake food, choose a spot, and go! You can go on foot, on bike, or take a little trip by car. Either way, you have to eat!
30. Write a Letter: When was the last time you wrote a letter? Not an email, text, or social media post. An actual letter that can be given to someone or mailed for a tiny price. Another great idea is to write a letter to someone to open at a future date. Some examples include: to your kids on their 16th birthday or when they get married.
31. Swap Items: This is one of the best ways to not spend money and get something in return!! Go shopping through someone else’s stuff and swap. You can create a host a swap party for items like clothing, toys, games, kitchen supplies, home decor, books, tools, etc. One person’s trash is another person’s treasure. This is something that you can do in person or online.
32. Birdwatch: Never been bird-watching? Then, grab a bird-watching book from your local library to make sure you can tell the birds apart and learn a few new facts.
33. Pick up a Book: What do you prefer – fiction or nonfiction? There are plenty of books to keep you entertained for hours. Also, you could ask a friend to read the same book and then plan a time to discuss it. If your local library doesn’t offer what you are looking for, then start a free trial of Kindle Unlimited.
34. Check Out a Local Gym: Almost all gyms want people to check out their place. Many will offer a free class or up to a free week. Try out a new spin class, yoga class, pilates class, or CrossFit. There are so many gyms popping up on every block that this can keep you busy and fit for a couple of months.
35. Photography: We all know that we have one of the best cameras at our disposal, but do you use the camera in your phone to the best of its ability? You can fiddle around with it, check out some YouTube channels, or head to the Apple store for a free class.
36. Photo Shoot: I stopped buying professional pictures of my kids a long time ago. There wasn’t a point in spending the extra money because as a parent I seriously have taken thousands (if not hundreds of thousands) pictures of them. And we have saved tons of money over the years, especially on sports and team photos.
37. Slideshows: Now, that we have tons of photos… what should we do with them? Turn them into a slideshow or some other digital way to view your photos.
38. Nature Walks: These types of walks have a purpose. To explore and realize the nature around you. Typically, in our house, the goal is to find 10 different types of objects (smooth, rough, prickly, big, small, etc.) or look for something with the same characteristics (like various rocks). The list of types of nature walks you can come up with is endless.
39. Go Sightseeing: There are so many beautiful places to look at in our cities. You can head up to the mountains, the beach, or even urban areas. You can plenty of things to do around here. Don’t forget your camera!!
40. Clean Your House: Really? Does this have to go on the list of ways to spend weekends with no spending money?!?! But, what a great way to spend your time especially when bored. Plus you will have something to show for your elbow grease and hard work.
41. Projects You Put Off: Raise your hand if you can think of a project or two (or ten) that you have put off. When you don’t want to spend money, it is a great time to dust off that list and dig in.
42. Make a Budget: If you are broke or struggling with no money, then it is time for a budget. A budget isn’t meant to be constricting. It is designed to help you spend money the way you want to. Manage your money ahead of time. Learn how to make a budget.
43. Take Surveys for Money: Have spare time, then make some extra money by taking surveys. One of the easiest things to do and not spend money. The best surveys to do include:
44. Declutter: This is one of my favorite things to do, but also one of the hardest. Why? I realize all of the money I spend on wasteful items that we don’t even use in the house. Many were impulse purchases or out of boredom. Then, it is hard for me to declutter and get rid of the items because of wasted money. However, living with less stuff means more meaningful time on things that matter.
45. Dive into Basement Storage: You could be doing one of two things. Cleaning out the basement area and getting rid of the unnecessary stuff burdening your life. Or pull out some of your favorite treasures and find a way to use them.
46. Clear Out Garage: This one makes me cringe, too! A great way to make productive use of your time on a no spend day is to clean out the garage. Clean out the unnecessary items and organize what is left. That way you can find a screwdriver the first time you look.
47. Neighborhood Cleanup: Since we are in the cleaning mood, let’s spread out to your local neighborhood. This is a great activity to do with a group of friends. With just a trash bag, you can leave a beautiful area for many to enjoy.
48. Redecorate a Room: What is more fun than a refreshed space? This is easy to do when changing out seasonal decor. Or just move the furniture around to create a whole new look. We did that with our dining room table direction and people would always think we did something massive!
49. Take a Nap: Who doesn’t want a nap (except for that young child who needs a nap)? Take care of yourself and take a step back from the busyness of life. Nap time is a special treat. Plus you can’t spend money when you are sleeping!
50. Video Gamer Competition: You can get free games through your library or with a free trial on Twitch. Just make sure to grab a friend to join you for a little bit of people socialization.
51. Playgrounds: Something that is easy things to do around here is found right in your neighborhood. Head to the local playground and run around crazy after your kids. Play tag and you will wish you had all of the energy they do! Change things up and find a new playground to check out.
52. Dump Debt: I always felt broke when I was in debt. If I spent money, I felt guilty about it. Figure out your debt free date and learn how to pay off debt faster. Use an app called Tally to help you overcome your debt.
53. Play Chess: This is a classic game that everyone should learn how to play. Plus it is one of the best free no no-money activities. Many cities have full-size chess pieces in local parks that make playing that much more fun!
54. Watch a Documentary: This is spare time well spent. A documentary will open your eyes to various views and perspectives. This is a productive use of your time.
55. Dance Party: This is always a hit, especially with kids. You don’t need to worry about where to go when you have no money. You can bring the party to you! There are so many free ways to listen to tunes and no money is spent for moving your body.
56. Delete Unused Apps: Take a few moments and delete any unused apps off your phone. This will help improve phone efficiency.
57. Art Supplies: Gather up all of the art supplies and see what type of creations you can make with stuff that you already have. Double bonus if you create some gifts, too! This is a great idea of things to do with friends! Here are things to draw when bored.
58. Cancel Unused Subscriptions: When you are broke, you need things to do, then look at what you spend money on but don’t use. This is a great money-saving tip! Use a service like Trim or Paribus to help you.
59. Daydream Life Without Debt: Okay, one of the top reasons people are broke is because of debt. We were in that situation too. I would always daydream about life without debt. And then it happened! Read more about our story on why we became debt free. Now, you can start to daydream about life without debt, too!
60. Listen to Podcasts: This is a great way to increase your knowledge around a certain subject or topic. Find your favorite podcast.
61. Post Skills & Make Money: Do you have a specialized skill or service that you can offer? You can post your skills and services on NextDoor, TaskRabbit, or Fiverr. It could be something as simple as shoveling walks or raking leaves. This is great if you want to double $10k quickly.
62. Make Extra Money: One of the best things to do instead of spending money is to be making money. There are plenty of ways to keep you entertained and not bored. Check out this list 20 Genius Ways on How to Make Money Fast. This cannot be stressed enough!
63. Feed the Ducks: Okay, well today, you aren’t allowed to feed the ducks. But, they are interesting creatures to watch and keep you entertained. But, this is somewhere to go when you have no money.
64. Memory Lane: Let’s take a stroll down memory lane. Pull out old photo books, find your keepsake box, and scroll to the of your pictures and videos. Grab some Kleenex and take a walk down memory lane.
65. Visit a Nursing Home: Looking where to go when you have no money? Then, look no further than the closest nursing home. Their residents are always looking for people to interact with. After striking up a conversation or two, you will walk away with golden nuggets of life lessons and a chance to learn from your mistakes.
66. Meal Plan: This one is a productive use of time plus will save you money over the next week. Use this money saving tip and learn how to meal plan like a pro.
67. Mediation: We are constantly on the go. When was the last time, you were just still? Take time and meditate. Start with mindfulness meditation. This is when you learn to pay attention to your breath as it goes in and out. Clear your mind.
68. Try a Budgeting App: This is a great time to stop living paycheck to paycheck and truly figure out where you spend money. Here are some great budgeting apps:
69. Set Goals: When you are asking yourself, “How can I spend weekends with no money?” Start by setting goals. Without an idea of where you go in life, you will be just bobbing along from one thing to another. Get help on making money goals.
70. Bake: More than likely, you probably have all of the baking necessities on hand. Try a new recipe or make an old favorite. Grab a friend or family member to make it more fun! Have too many cookies? Take them to a fire station or a nursing home.
71. Open Houses: In the market for a house, looking to remodel, or just want to redecorate, then check out open houses for ideas and inspiration. There are hundreds each week and a great way to spend weekends with no money. To add more fun, create a persona and a story on why you are looking at houses.
72. Watch a Sunrise: What better way to experience the wonderful beauty of nature! Find a spot to watch a sunrise and soak up the morning rays. Maybe even combine it with a short hike.
73. Watch a Sunset: The sunsets are us can be magical and absolutely colorful. There are so many spots to watch a sunset. Plus no two sunsets will be the same. Maybe even back a picnic.
74. Time Capsule: Make yourself a time capsule to be opened on a big birthday or in a big life year.
75. Craw Dad Fishing: Calling all dads (and maybe moms)! Head to a local creek with some sticks and hot dogs as bait. This is probably my kid’s favorite summertime activity.
76. Build a Fort: This is the only reason I keep so many blankets on hand. Kids can spend hours on end creating a fort with blankets. Pull in the chairs and start building. This will also include STEM learning because it is a science to get blankets to stay up on the fort without caving in.
77. Camp in Your Fort: Yay! Spend the night in your fort and pretend you are camping. This is a great stay-at-home idea for young kids.
78. Play in the Snow:I will admit it is snowing while I type this. All you need to do is head outside and find plenty of things to do without spending money. You can make snow angels, have a snowball fight, color the snow funny colors, catch snowflakes on your tongue, or shovel for extra money.
79. Built an Igloo Fort: This takes me back to feeling like a kid (at least until the soreness kicks in). Building a fort out of snow is so much fun! You can quickly spend hours outside and have a blast. Then, have fort wars!
80. Visit a Farmer’s Market: Learn what fruits and vegetables are local to your area. This is one of my favorite activities especially in small towns.
81. Learn a Foreign Language: With so many cool apps and websites, you can teach yourself how to speak a foreign language. Maybe you just need to brush up on those high school classes. Then, you can volunteer at a local community center to practice!
82. Find a Pet to Love: Head to your local animal shelter and love some pets that need to be rescued. This is a great way to not spend money and help the community. Maybe donate extra blankets to help out the rescue.
83. Figure Out Your Net Worth: This one hasn’t been popular with many of my readers. But, your net worth has to start somewhere (even if it is negative). However, we have been working to increase our liquid net worth this past year. If your goal is to become a millionaire next store, you have to start somewhere.
84. Dress Rehearsal. This one may be harder to find, but an awesome idea if you can. Some venues will allow people to attend their dress rehearsals for big shows. You won’t have the same experience as the real show. At the end of the show, you will save lots of money and may be asked to provide feedback.
85. Sound Checks: Is your favorite bank headed to town and you can’t afford to go? Then, go a couple of hours before the start of the concert and keep your fingers crossed they are doing sound checks. This works really well for outdoor concert venues. I have a cousin who has become a pro at this!
86. Get on a Realtor’s Mailing List: Realtors are always marketing their services and vying for attention. Many realtors will send out mailers with local activities that you can explore for free. Others may invite you to special events that are really fun and totally free for you!
87. Minute to Win It: Play this game against the clock which will have you laughing for hours. Most of the minute to win it games are with items you can find all throughout your house. This one is a winner to hang out with friends, kids, or families!
88. Find Grand Openings: This is where to go when you have no money. Search for grand openings in your local area. Many times you will walk away with freebies and other goodies! Plus more than likely you will have a story to share about your experience.
89. Free Exercise Routines: No need for a gym anymore! You can download apps for plenty of workouts to keep you fit and healthy. Scroll YouTube for yoga classes. If your goal is to lose weight, then try Healthywage and get paid for losing weight.
90. The Bad Gift Exchange: Plan a party with friends and tell everyone to bring the worst gift they got from the previous holiday. Hold a funny white elephant exchange and laugh at what people spend money on.
91. Free Class at Community Colleges: Check out your local community college for the free classes they are offering. You should be pleasantly surprised at how many free classes you can take.
92. Free Classes at Stores: Hitting up stores may seem backward on where to go when you have no money. However, many stores offer free classes or projects. The goal for stores is to get you in the store in hopes that you will buy one or two things while you are there. Resist the urge to buy something and go for the free projects. Stores I know that offer free classes, projects, and crafts: Ikea, Home Depot, Lowe’s, Joann’s, Michaels, and smaller mall stores.
93. Favorite Recipes List: Too many times we forget some of our favorite recipes and they go un-made for months. Create your go-to recipes that everyone in your family loves. This will make your meal planning much easier and faster. Even better… convert your recipes to a digital file.
94. Research your Genealogy: If you want to know more about your family history, then you can spend hours learning more on the various genealogy websites. Even better, call the family historian to learn more about your heritage.
95. Fly a Kite: Don’t worry about having to buy a kite in order to have fun! Get creative and make your own. This is something my kids have figured out how to do on their own with store grocery bags and string.
96. Invite Your Kid’s Friends Over: Kids always want time to hang out with friends. They can always find something to do with their friends. Then, you can get some quiet time. You don’t need to spend any money for everyone to have fun. It is a win-win situation.
97. Get Your Personal Finances in Order: This is one of the most important things to do. Yet, it always slips to the bottom of your list. Learn how to organize your personal finances and make sure your wills are up to date.
98. Make a To-Do List: There is no better time to power through your to-do list. It is a great idea to not spend money and be productive. You may have to DIY projects or save money to finish them another day. But, you can tackle the hard stuff.
99. Last Text Message: Scroll all the way to the bottom of your text message list and find that friend you haven’t talked to in a long time. Invite them over and have a conversation.
100. Free Apps: There are so many free apps available. You can learn a new skill, play a game, organize your life, sharpen your brain, and connect with friends. The options are endless on this one!
101. Local Festivals or Events: Once again, there are so many free activities. Check out your local area for weekend activities. Bonus hint: pack your own food and snacks so you aren’t tempted to spend money with the food vendors.
102. Camp in Your Backyard: You don’t need to drive anywhere to camp. My kids love setting up the tent to camp right here at home. The tent gets more use and the bathrooms are mighty convenient.
103. Check Newspapers. From Money Bliss reader, Elizabeth recommends checking the local newspaper as they list out all of the local events in the community. Her money saving tip is to use the library’s copy for free. Also, the online digital version may have the same info.
104. Free Trials: When you are looking for things to do for free and that don’t cost money, then look no further for free trials. The options are endless because people want to try out their product. At a bike event, I was able to do a free trial for a road bike. It was a great way to check out what I liked and not spend any money.
Ideas for possible free trials:
Just make sure to cancel before the trial ends!!
105. Count Your Blessing: Too many times we take for granted everything that we have. Take the time a start writing a list of everything you are grateful for. These blessings have enriched your life. Find ways to enrich someone’s life.
The popular book of coupons is now a downloadable app!
The Entertainment® Book and Digital Membership offer 2-for-1 and up to 50% off discounts, all conveniently accessed on our mobile app, online or in the book.
Great way to save money on local restaurants, activities, hotels, adventures, and more!
Groupon’s top deals updated daily.
Discover and save on thousands of great deals at nearby restaurants, spas, things to do, and more.
The popular book of coupons is now a downloadable app!
The Entertainment® Book and Digital Membership offer 2-for-1 and up to 50% off discounts, all conveniently accessed on our mobile app, online or in the book.
Great way to save money on local restaurants, activities, hotels, adventures, and more!
Groupon’s top deals updated daily.
Discover and save on thousands of great deals at nearby restaurants, spas, things to do, and more.
How do you have fun without spending money?
Now, we have covered an extensive list of things to do with no money. Hopefully, you have learned that you don’t need to spend money to have fun.
You can enjoy your time and not spend money. You can be productive when bored.
You will always have an answer to what do you do for fun!
There are so many ideas to help you through your no spend days.
That should be a smile on your face (and your bank account).
You can figure out what should I do today.
The less money you spend each day the more money you can save for one of our money saving challenges. That is one of the best things you can do for your finances.
Don’t Miss… 90+ Fun Things to Do on Christmas Day
What are your favorite places to go with friends when you have no money? If I missed one of them, please tell me in the comments.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Counterintuitive Weakness Early, But Inconsequential in Bigger Picture
By:
Matthew Graham
Thu, Jun 20 2024, 3:26 PM
Counterintuitive Weakness Early, But Inconsequential in Bigger Picture
The past two trading days each had their own version of counterintuitive movement. Today’s installment featured bond yields rising after a batch of mostly weaker economic data. The only way to justify it using the data itself would be to assume the market’s nearly exclusive focus was on the inflation implications associated with higher Philly Fed prices (a component of the Philly Fed Index). Apart from that, we can consider position-driven trading which may have been behind Tuesday’s gains and now today’s offsetting losses. Regardless, none of the above matters considering the well-contained size of each move. Yields remain just shy of recent lows and have been trading a narrow range ever since last week’s rally concluded.
Jobless Claims
238k vs 235k f’cast, 243k prev
Continued Claims
1828k vs 1810k f’cast, 1813k prev
Philly Fed Index
1.3 vs 5.0 f’cast, 4.5 prev
Philly Fed Prices
22.5 vs 18.7 prev
Housing Starts
1.277m vs 1.37m f’cast, 1.352m prev
09:46 AM
paradoxically weaker after data. 10yr up 6bps at 4.284. MBS down 6 ticks
11:39 AM
gradually off the lows. MBS down an eighth and 10yr up 4.5bps at 4.269
02:32 PM
A bit more healing in Treasuries with 10yr up 2.6bps at 4.249. MBS still down almost an eighth.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Want to know what the best businesses that run themselves are? Have you ever dreamed of having a business that runs by itself? Whether you want extra income or a full-time job, these businesses make money without needing you all the time. Having a business that runs itself means more time for you to do…
Want to know what the best businesses that run themselves are?
Have you ever dreamed of having a business that runs by itself? Whether you want extra income or a full-time job, these businesses make money without needing you all the time.
Having a business that runs itself means more time for you to do what you love. This could be more family time, traveling, pursuing passions, or starting another venture. These kinds of businesses are perfect for making your dreams a reality.
Now, that doesn’t mean that all of the businesses below will require zero hours of work from you – they will need varying amounts of time dedicated to them. Maybe some time in the beginning to get it started, some time to maintain it, or even hiring an employee to keep it going or check in occasionally.
Recommended reading: 18 Passive Income Ideas To Earn $1,000+ Each Month
Businesses That Run Themselves
Below are the best businesses that run themselves.
1. Self-service laundromat
A laundromat business can be a great business idea if you want something that mostly runs itself.
With the right setup, you might only need to check in occasionally. Laundromats can give you a steady source of income because people always need clean clothes.
The day-to-day operations of a laundromat include opening the business up in the morning, maintaining machines (the washers and dryers) and keeping the business clean, stocking detergents, and having someone handle the finances. The average self-service laundromat has 2 employees or less, so this is a business where you can outsource that job even.
Running a laundromat can be rewarding and mostly hands-off, making it a popular choice among business owners. If you’re looking for a steady income with minimal daily effort, this could be the option for you.
Recommended reading: Are Laundromats Profitable? How Much Do Laundromats Make?
2. Sell printables
Digital products, such as printables, can be a great way to have a business that runs itself.
Making printables on Etsy can be a great idea because you just need to create one digital file per product, which you can then sell an unlimited number of times. This is what makes it a great passive income opportunity, plus, you can make printables without anything other than just your laptop/computer and internet connection.
Printables are digital products that customers can download and print themselves at home. Examples of printables include:
Grocery shopping checklists
Gift tags
Candy bar wrappers
Printable quotes for wall art
Patterns
Planners
Coloring sheets
Stickers
These items are designed to be easily printed from a computer or other devices, being convenient for buyers who want to customize and use them right away.
Recommended reading: How I Make Money Selling Printables On Etsy
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
3. Blogging
Blogging can be a business that runs itself mostly, but it’s not passive, especially at the beginning. It requires a lot of hard work and can take up most of your time when you’re starting out. Over the years, I’ve automated much of my blog so that it runs with about 10 hours of maintenance from me each week.
Starting a successful blog is challenging – it’s not something everyone can easily do!
That said, learning how to start a blog has been one of the best decisions I’ve made. It’s a great way to earn semi-passive income and extra money.
I think it’s one of the best businesses that run themselves, and it’s something that I have been doing for years. I can take weeks off at a time and still earn a great income during that time.
Blogging can generate passive income because you can create a blog post (high-quality content is key) and continue to earn money from it for years. This income can come from affiliate marketing or display advertising. Unlike traditional jobs where you have to work daily to earn money, a blog allows you to make money around the clock – even while you sleep – thanks to the work you’ve already done in the past.
I have a free training that you can take – How To Start A Blog FREE Course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
4. Affiliate marketing
Affiliate marketing is a great way to make money with a business that mostly runs itself and can make money in your sleep.
Among these businesses that practically run themselves, this one is my favorite. I’ve earned more than $2,000,000 through affiliate marketing over the years, and much of it is semi-passive. I can earn money while I’m on vacation, without internet, while I’m sleeping, and more.
Affiliate marketing is when you earn money by placing a special link on your website or social media. When people buy something through your link, you get a commission. For example, if you link to a book on Amazon (after joining the Amazon affiliate program) from your website and someone buys it through your link, you earn a commission. Companies like Amazon value good affiliates because they help promote their products and services.
You earn a commission by promoting other companies’ products or services. When someone buys through your link, you get paid.
Now, this doesn’t mean that affiliate marketing completely runs itself. You will need to write the content that draws readers in and find ways to get page views. But, once you get things started, you can earn money without always actively working for it.
Recommended reading: Affiliate Marketing Tips For Beginners – Free eBook
5. Rental real estate and rental properties
Being a property owner and managing properties can be a great way to run a business that makes money on its own.
One way to earn extra money is by listing your property on Airbnb or another short-term rental platform. You can rent out your entire house, apartment, or just a room to travelers looking for short stays.
Another way to earn money is through long-term rentals. Long-term rentals involve renting out a property for an extended period, typically six months to a year or more. For example, you might rent out an apartment or house to a family who will live there full-time.
One advantage of long-term rentals is the stable and consistent income they provide. By leasing your property to tenants for a longer duration, you establish a steady stream of rental payments. This reliability can be particularly appealing for those seeking a reliable source of passive income. Plus, managing a long-term rental is usually less demanding than a short-term rental since you don’t need to clean the property frequently or find new renters regularly.
Whether you rent out your property short-term or long-term, you can lessen your involvement by hiring a property manager to do any of the day-to-day work that may be needed. This can make your rental property business more of a hands-off business model.
Recommended reading: 23 Best Real Estate Side Hustles To Make Extra Money
6. Online courses
Creating and selling online courses can be a great way to earn passive income. Once you develop the content and put it on a platform like Teachable, it mostly takes care of itself.
With an online course, you share what you know with others. Maybe you’re good at math, photography, or playing guitar. You can turn those skills into a course.
Creating online courses is a smart way to take what you know and turn it into a business that runs almost by itself. It can be fun too, and you can help a lot of people at once.
I created Making Sense of Affiliate Marketing, my first online course, several years ago and have earned over $2,000,000 from it.
Creating a course is not the easiest way to start a business that runs itself, but it can be a great way to earn an income around the clock. Most of the work is done in the very beginning, and then there is some maintenance along the way to keep the course updated, help students, and so on.
Recommended reading: How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.
7. Storage facility
Running a storage facility is a great way to have a business that can largely manage itself. Plus, this can be a steady income stream, and many storage facilities have long waiting lists and are in high demand.
Self-storage facilities are places where people store their belongings, like boxes of their keepsakes, vehicles, RVs, and more, in storage units or in a big lot.
Owning a self-storage business can be a way to earn money with low expenses. These businesses usually only need a couple of employees.
Often, when I visit a self-storage lot, it’s just the owner or one employee working, and there are very few customers around. Sometimes, no one is working and I just use a code to go in and out.
Another idea similar to this is to rent out your storage space on Neighbor.
Neighbor.com is a platform where you can rent out your space to people who need storage for their belongings such as boxes, furniture, and even cars. You can list spaces like your driveway, garage, closet, and more on Neighbor.com. It’s similar to Airbnb but for storage – no one stays overnight, just their belongings! Depending on demand in your area and the type of storage space you have, you can earn between $100 to $400 or more each month.
Recommended reading: How To Invest In Self-Storage For Beginners
8. Stock photography
Stock photography is a great way to start a business that will eventually run itself. With this type of business, you take photos and upload them to stock photo websites. When someone buys your photo, you get paid.
Once your photos are online, they can sell again and again too.
Stock photos have many different purposes for websites, companies, blogs, and more. Businesses use stock photos because they may not have the resources to photograph everything they need. Instead, they can use stock photos to improve the visual appeal of their content, website, or business.
I personally use stock photos in my blog posts, as do many others. All the photos in this article are stock photos, actually.
There are several well-known stock photo websites such as Shutterstock, iStock by Getty Images, Adobe Stock, and Dreamstime.
To sell photos on these sites, you’ll need to create a contributor account and upload your images following the site’s rules. Each time someone downloads your photos, you earn a commission.
On stock photo websites, having high-quality photos is very important, but having a larger portfolio also matters. The more pictures you have in your stock photo collection, the more potential income you can generate.
Recommended reading: 18 Ways To Get Paid To Take Pictures
9. Car washes
Running a car wash business can be a great way to earn money with minimal effort. Automatic and self-serve car washes are especially popular because they require less work to manage day-to-day.
A self-service car wash is a place where customers pay to use equipment to wash their own cars.
An automatic car wash is a place where customers drive through a tunnel where machines do all the cleaning.
Starting a car wash can be cost-effective over time. The equipment can handle many customers with little human help. You just need to check the machines and refill supplies.
10. Write ebooks
Creating ebooks can be a great way to generate passive income streams. Once you write and publish an ebook, it can keep earning you money with very little effort.
Writing a book can provide passive income because you only need to write it once, yet you can continue to earn money from it for years. While you may need to do some promotion to keep readers engaged, the writing itself is a one-time effort. This makes it possible for the income to be passive over time.
Plus, you can start by self-publishing an ebook and selling it directly on Amazon or on your own website.
11. Dropshipping
Dropshipping is a popular business model that lets you sell products without keeping any inventory. You simply partner with a supplier who ships the items directly to your customers.
Dropshipping can be a great choice because there are low start-up costs as you don’t need to buy stock or rent a warehouse. This keeps costs down at the beginning.
Plus, there’s a lot of flexibility. You can run your dropshipping business from anywhere with an internet connection. This makes it perfect for those who like to travel or work from home.
There are many different things you can sell in a dropshipping business, such as T-shirts (you could even have a print-on-demand business), home decor, mugs, kitchen tools, pet supplies, and baby items.
12. Run a membership website
Membership websites are a great way to run a business that can almost take care of itself. These are websites where people pay regularly to access exclusive content or services.
Now, these will require work and some maintenance. But, you can earn recurring income 24/7, without actively needing to work.
Plus, as more people join, your income grows without adding lots more work.
Some examples of membership sites can include running a Patreon for your YouTube channel, a stock photo membership site, a paid forum, and an online school.
13. ATM business
If you want a low-maintenance business idea that almost runs itself, you may want to look into ATMs.
ATMs can be great because they don’t need much daily work. Once set up, you just need to check them regularly and refill cash.
To start, you’ll need one or more ATM machines (these typically cost around $2,000 to $10,000), you’ll need to find locations (such as convenience stores, malls, gas stations, etc.), set up the ATM (connect it to a network), and monitor and maintain it.
You would earn money through the ATM transaction fees that people are charged when they withdraw money.
Using ATMs can be a good way to make extra money without a lot of effort. They need some work at first but can become a reliable source of income.
14. Parking lots
Parking lots can be great businesses that mostly run themselves.
People always need places to park, such as in cities, near popular venues, at airports, and at shopping centers. If you can find a good location, your parking lot can bring in steady income without much daily work from you.
To get started, all you need is a plot of land. You can set up pay stations to handle money collection. Some lots even use apps for payments, making the process easier for everyone.
And, with the right setup, you can keep things running smoothly with just occasional cleaning and repairs.
15. App development
If you have technical skills, developing and selling an app can be a way to start a business that operates autonomously.
Creating your own app, whether it’s a useful tool, a fun game, or something else, can be profitable.
Although it requires initial effort and investment, once your app is available in app stores, it can generate revenue around the clock through in-app purchases or with the initial download.
You can create mobile apps like a budget tracker, meal planner, fitness tracker, meditation guide, travel planner, and others that cater to specific needs or interests.
16. Billboards
A billboard business is a great way to make passive income. Once set up, it needs little maintenance. You can rent the advertising space to companies for their ads.
Now, building new billboards isn’t allowed everywhere, but in many places, you can still add them onto your own land or buy one that already exists. You’ll want to check local laws to know more before you begin.
Billboards require minimal upkeep, which makes it a great business that runs itself. Regular checks and occasional repairs are needed. Digital billboards need more maintenance, but they can display multiple ads and increase income.
17. Sell on Amazon
Amazon FBA (Fulfillment by Amazon) allows sellers to store their products in Amazon’s warehouses. Amazon takes care of shipping to customers, handling returns, and managing customer service for the seller. This setup frees sellers from storing inventory or dealing with shipping logistics.
While you still need to find products to sell, Amazon FBA makes it possible for anyone, even without experience, to earn money selling items like household goods, toys, books, electronics, and more through their platform.
Recommended reading: How To Work From Home Selling On Amazon FBA
18. Vending machine business
A vending machine business can be a great way to earn passive income. With some initial investment and a bit of planning, you can start making money with minimal effort. Vending machines typically need minimal upkeep and the hours are low.
You can start with as little as $1,500 to $3,000, and even buy used or refurbished vending machines to save money.
Vending machines can be placed in high-traffic areas (with permission and an agreement, of course), such as schools, offices, gyms, hospitals, and more. You may need to pay 5% to 25% of your earnings to use their space.
Vending machines run on their own for the most part. You will have to refill the machines regularly and make any needed repairs.
A vending machine business can be a smart way to generate passive income while requiring little hands-on work. With the right location and products, you can see steady profits.
Recommended reading: How To Start A Vending Machine Business – How I Make $7,000 Monthly
Frequently Asked Questions
If you are thinking about having a self-running business, here are some common questions and helpful answers that might guide you in the right direction.
How can I start a business that doesn’t need me to be there all the time?
To start a business that doesn’t need you to be there all the time, I recommend finding a business model that can be easily automated. Examples include online stores using dropshipping or print-on-demand services. These models let you automate order processing and inventory management, reducing your need to be involved in daily operations. Other businesses include running a laundromat, selling printables on Etsy, blogging, rental real estate, and stock photography.
What are some top businesses known for making money while the owner sleeps?
The best businesses known for making money while the owner sleeps include rental real estate, blogging, stock photography, dropshipping, ATMs, developing an app, and selling an online course. These businesses have systems in place that handle most tasks automatically, allowing you to earn money with minimal hands-on management.
How to have a business that runs itself?
To have a business that runs itself, you need to try something like vending machines, ATMs, blogging, stock photography, dropshipping, and more. Then, you can either automate as much as you can, or outsource the hours where something needs to be done (such as refilling the vending machine).
What is the easiest business to start and run?
Among the easiest businesses to start are online stores using dropshipping, vending machines, and digital products like printables. These business ventures require low upfront investment and minimal ongoing management, making them accessible for beginners.
How do you find a self running business for sale?
To find a self-running business for sale, you can look for listings on business-for-sale websites or contact business brokers. Many websites list businesses for sale, such as BizBuySell and LoopNet. Always research and vet any business thoroughly before buying.
Businesses That Run Themselves – Summary
I hope you enjoyed this article on the best businesses that run themselves.
Self-sustaining business examples include online businesses like blogging and affiliate marketing, where you create content or promote products and enjoy passive income.
Even offline options like laundromats and car washes can be mostly self-sustaining, needing only occasional maintenance. Another good example is a vending machine business. You just put your machines in good spots and let them do the work.
Managing a rental business can be another way to have a business plan that doesn’t require a lot of active hours from you.
For me, I have a business that I work a low amount of hours and can run itself for the most part. I have automated a lot to make this possible, as well as have worked a lot of hours in the beginning. I love having a business that can run itself, as it means that I have more time for other things in life.
What do you think are the best businesses that run themselves?
Salary vs. hourly pay are two ways that businesses classify workers, based on how and when their compensation is doled out. Hourly employees, as you might guess, are paid for every hour of work that they do. Salaried employees, on the other hand, receive a fixed amount of compensation in exchange for their labor, regardless of how long it takes.
There are pros and cons to each, both for employers and employees, and there are numerous rules and laws that can come into play as well. But it boils down to this: Hourly employees’ compensation is tied to the time worked, plus applicable overtime. Salaried employees get a fixed amount.
Recommended: Does Net Worth Include Home Equity
What Is An Hourly Rate?
An hourly rate is the set per-hour compensation a worker or employee earns in accordance with their employment contract. That hourly rate can be any number above the federal wage floor, or minimum wage, of $7.25 per hour.
The lowest that an hourly worker in the U.S. can earn is $2.13 per hour, as set by federal law, for workers who receive at least $30 per month in tips. No matter the amount, an hourly rate is how much an employee earns for one hour of work.
What Is a Salary Rate?
As mentioned, salaried employees earn a fixed amount regardless of how many hours they work. As such, a salary rate is what an employee would earn over a fixed amount of time, such as a traditional 40-hour workweek. Since we typically discuss salaries on a yearly basis (for example, Job X pays a salary of $50,000 per year), a salary rate could be $961.54 per week ($50,000 annual salary divided by 52 weeks in a year).
The big difference, when it comes to salaried workers, is that there is no potential to earn overtime for working more than the predetermined number of hours (usually 40) as specified by their employer and applicable laws.
As for what’s a good salary, there are several factors to consider. But if you want to find out what is a good entry-level salary, you can do some research into averages in your industry and geographic area to get an idea.
Recommended: The Highest Paying Jobs by State
Why Are Some Jobs Hourly and Others Salary?
Federal laws and regulations determine whether some jobs can be exempt from overtime pay rules — in other words, salaried. This is to protect some workers from being classified as salaried when they may end up working many more hours in a given week than the standard 40.
Depending on the state you live in, there may be additional rules that stipulate why a position may pay hourly vs. salary.
The Big Difference Between Salary vs Hourly Pay
It’s all about overtime. Whether or not a worker earns overtime pay is the single biggest difference between a salaried employee and one who is paid hourly. Overtime pay is paid out at a rate of 1.5 times the normal hourly rate, which is commonly phrased as “time and a half.”
Another way to describe salary vs. hourly pay is “exempt” vs. “non-exempt.” “Exempt,” in this sense, means exempt from overtime wages. Non-exempt employees are owed overtime wages for working more than 40 hours per week.
There are situations in which an employer may end up paying a salaried employee more for working more than 40 hours per week, but it depends on the specific agreement or contract between the two parties.
Additionally, salaried jobs tend to be more administrative, “professional,”or “white collar,” and may offer more or better benefits than hourly jobs. That’s not always the case, but if you’re climbing the corporate ladder and become a salaried employee, you may notice that the entire compensation package is a bit beefier than packages for hourly workers.
Salary Pay
As noted above, salaried employees earn a fixed amount regardless of how long they work. There are some obvious pros and cons to salaried positions, too:
Pros of Salary Pay
The clearest advantage of a salaried position is that an employee will earn the same amount of money during a given time period no matter how long they work. So, if they end up working 30 hours in one week, they still get paid the same as they would have if they worked 40.
Also, as discussed, salaried jobs often have better benefits, such as employer-sponsored health insurance and paid vacation days. Salaried jobs can also be a bit more secure than hourly positions, and may offer workers more opportunities for advancement.
Cons of Salary Pay
Salary pay can be double-edged: While you’ll be paid for 40 hours even if you work only 30, you’ll earn the same if you work 50 hours, too. There is no chance for overtime pay if you work more than a standard week. That can be a big drawback for some workers.
Similarly, depending on the specifics of the position, it may be harder to keep your personal and professional life separate. Salaried positions may provide more benefits and job security, but that comes at a cost of more demanding work that may encroach on your personal time.
Hourly Pay
Hourly workers earn their paycheck by the hour. That, like salaried positions, can have pros and cons as well:
Pros of Hourly Pay
It’s worth stating again: The biggest plus to an hourly job is that you are eligible to earn overtime pay. That doesn’t mean hourly workers always will get overtime — many employers go to great lengths to make sure that they don’t — but it’s a possibility. And that can help ensure that you’re not working 50- or 60-hour weeks, which may be more common for salaried employees.
Also, hourly workers may earn double their standard wages on certain days, like holidays. And depending on the industry, working overtime may be standard or expected. That can help push an hourly worker’s earnings above salaried workers’, in some circumstances.
Cons of Hourly Pay
A big disadvantage to hourly-paying jobs is that they can be less secure than salaried positions. Turnover can be high, for example, and if the economy takes a turn for the worse, hourly workers may see their hours reduced, or their positions furloughed or eliminated. Further, hourly jobs aren’t usually very flexible, and may not offer paid time off or sick days to workers, either.
Recommended: What Credit Score is Needed to Buy a Car
The Takeaway
Salaried workers receive a fixed paycheck regardless of the number of hours worked, whereas hourly workers are paid based on the number of hours they clocked. The big differentiator between the two is that salaried workers are not eligible for overtime pay, which is 50% more than their standard hourly rate. Each type of employment has its pros and cons, but usually, salaried positions are more secure.
Regardless of how you’re paid, it can be helpful to keep your finances in order by using a budget planner app, complete with a debt payoff planner to help you get ahead. That’s where SoFi enters the fray: Use it to track your spending, monitor your credit score, and more!
Looking to get a handle on your finances? SoFi’s money tracking app can help.
FAQ
Is it better to be paid a salary or an hourly rate?
Generally, salaried positions are often seen as more prestigious, and can offer more job security and benefits. Many workers feel it’s better to be paid a salary because one receives a predictable paycheck. But it ultimately depends on the position and the employee’s personal preferences.
What is the advantage of salary pay?
The biggest and most obvious advantage of salary pay is that you have a fixed paycheck coming your way no matter how much (or little) you worked during a given time period. Of course, that can be a disadvantage, too, if you regularly work more than 40 hours per week.
Which are the budget challenges of being a salaried employee?
Salaried employees are, in a sense, on a fixed income; they’re earning the same amount all through the year, and can’t go for a bigger paycheck by working overtime. If they don’t receive an annual raise annually, they may see their effective pay decline due to inflation, which can end up straining their budgets.
Photo credit: iStock/.shock
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.