Charleston, South Carolina, often evokes images of historic homes, charming cobblestone streets, and world-renowned Southern cuisine. While popular spots like the Battery and Rainbow Row are must-sees, this vibrant city is also home to many lesser-known treasures that offer a more intimate glimpse into its rich history and culture. Whether you’re a long-time resident or are looking to buy a home, rent an apartment, or find a rental home in Charleston, you’re sure to find something to add to your list beyond the usual tourist attractions in this Rent. guide.
1. Shop ’til you drop
Charleston is known for its vast array of shopping and boutiques. “Hermosa Jewelry is a southern jewelry brand, local to Charleston, that specializes in versatile jewelry that magnifies your beauty and confidence. They are known for being the pioneers of bringing the permanent jewelry trend to the Charleston shopping scene. With a store downtown and in Mount Pleasant, they are the go-to gift shop for Lowcountry ladies to accessorize,” shares Mia Benvenuto with Hermosa Jewelry.
“In the heart of Charleston’s famed shopping district, Savannah Bee Company is a charming store that offers honey gifts and daily honey tastings, luxury body care all made from hive ingredients, and mead flights to cool you off on your walk down King Street,” notes Alexa Sims with Savannah Bee Company. “Famous for its immersive shopping experience and friendly, informative staff, Savannah Bee Company is a must-do stop on your tour of Charleston.”
2. Experience Lowcountry cuisine
It’s hard to beat food in the southeastern U.S., especially in the Lowcountry. “Charleston has plenty of restaurants to choose from, all of which have great seafood dishes to enjoy,” shares Jason Shamis with Quartermaster Properties. “With the draw of people to the Lowcountry based on history and especially seafood, small local restaurants are always the best to get the fresh local seafood taste that big chains can’t give you. We love the Marina Variety Store which provides a laid-back environment along with some of the freshest-tasting seafood around! Go check it out and you may even run into some local celebrities,” Shamis recommends.
3. Sip ‘n sit, the southern way
Embrace the Southern way of life by doing some outdoor wining, dining, and easy listening. “One spot we’d recommend is the Elliotborough Mini Bar, a cozy and eclectic bar nestled in the heart of the Elliotborough neighborhood,” Tim Sumer with CHS Thrive suggests. “This local favorite offers a laid-back atmosphere, unique craft cocktails, and live music, making it a perfect spot for both locals and visitors looking to experience Charleston’s vibrant nightlife away from the usual tourist spots,” Sumer says.
Also recommended by CHS Thrive, Charleston Tea Garden, located on picturesque Wadmalaw Island is a delightful, off-the-beaten-path experience for both tea enthusiasts and casual visitors. “Just a 30-minute drive from downtown Charleston and sheltered under acres of live oaks, Wadmalaw Island is refreshingly unpopulated and authentically local realm of the low country and home to a unique visitor experience,” shares Dijana Avramovic with UAS International Trip Support.
“The Charleston Tea Garden is located on America’s only tea farm. The garden continues a legacy that began in the late 1800s and offers visitors a charming experience touring the tea fields, learning about the traditional tea production process, and exploring the beautiful factory. The serene setting and educational experience make it a delightful and under-the-radar gem for those looking for something unique and off the beaten track.”
4. Take a boat tour
When you’re in a beach town like Charleston, getting out on the water is a must-do activity. “Blue Life Charters offers luxury private boat tours in Charleston Harbor,” explains Wit Morris, owner and captain of Blue Life Charters. “Enjoy personalized daytime or sunset cruises on state-of-the-art vessels. All tours are BYOB and provide exceptional onboard service. Experience breathtaking views, iconic landmarks, and local wildlife. Perfect for couples, families, and small groups,” Morris concludes.
5. Indulge in a range of bites
“Located in downtown CHS, Sushi-Wa is a neighborhood intimate omakase experience featuring edomae-style sushi that leaves you feeling full and adventurous,” shares Hanna Geiger with Hanna Geiger Real Estate. “Seating is very limited, so you’ll need to book online — reservations open only 30 days in advance. It’s likely it will sell out, so you can join the waitlist and be notified of any cancellations, but you’ll need to act quickly when you get that notification. Sushi-Wa is open Wednesday through Sunday, with reservations available for parties of up to four. You can BYOB or opt for their sake pairing to complement your meal,” Geiger notes.
Another great eatery option is Cru Café. “A hidden gem in downtown Charleston since 2002, executive chef and owner John Zucker delivers a gourmet twist to traditional comfort food,” Jasmine Powell shares. “Housed in a classic 18th-century Charleston single-style home, Cru Café is consistently known for its elevated approach to its culinary program, drawing inspiration from Italian, Asian, Southern, Southwestern, and Caribbean fare. In recent years, Cru Café has expanded its seating options to include a quaint “backyard” patio, where guests can dine al fresco while listening to the soft clip-clop of nearby horse carriages.”
6. Get your adventure on
Perfect for families and outdoor lovers alike, Wild Blue Ropes is a must-see stop. “Perfectly positioned between historic downtown Charleston and Folly Beach, this amazing outdoor adventure park features a great selection of outdoor activities for individuals, families, businesses, and schools,” Jacqueline Corcoran with Wild Blue Ropes recommends. “From climbing to laser tag, team building to parties, Wild Blue Ropes has what it takes to put a bounce in your step and a smile on your face.”
7. Take a trip to Old Village
“Charleston’s crown jewel is a hidden gem, Old Village, Mount Pleasant — where the day-to-day rhythms of local culture intertwine with rich history,” shares Rebellion Roads eBike Rentals & Tours staff. “Cruise along Pitt Street to Pitt Street Bridge for unforgettable sunsets & harbor views of Downtown. Explore Shem Creek’s vibrant waterfront, filled with charming eateries and a lively atmosphere. Shop and dine in the Old Village Business district as you wander through the historic streets, where George Washington once visited. Don’t miss this timeless place and see it all with Rebellion Roads eBike Rentals & Tours.”
Image courtesy of The Palmetto and JB McCabe
8. Experience the luxury of a boutique hotel
Treat yourself to a luxury hotel stay in Charleston. “The Palmetto is a charming boutique hotel in the heart of the French Quarter. The cozy Lobby Bar is a favorite among locals and hotel guests alike, serving up arguably the city’s best espresso martini,” shares Palmetto Hotel’s Director of Sales and Marketing, Shannon Hartman. “Insider tip: In true Southern fashion, use the secret password phrase “Bless Your Heart” for a little surcee (a local term for a “just because” gift) from your bartender.”
9. Delve into Charleston’s haunted history
As spooky season approaches, take a tour of Charleston’s more haunted history, which has served as inspiration for countless Southern Gothic tales. “Stories in the Cemetery provides an interactive ghost-hunting experience where guests are the ghost hunters using real paranormal equipment. All guests receive all recorded media and a scientific report of their findings the following day,” shares Nicholas McGirr.
Image courtesy of Shem Creek Inn
10. Stay on Shem Creek
“Just minutes from downtown Charleston, discover a laid-back waterfront destination and treasured local secret,” recommends Shem Creek Inn General Manager, Emily Hagen. “Shem Creek Inn is an easygoing dockside hideaway within walking distance of local restaurants, bars, and adventures. Whether you step into a kayak straight from the boardwalk or watch boats go by from the comfort of your guest room, make memories to last a lifetime on the banks of Shem Creek,” Cress concludes.
Uncovering the heart of Charleston
Charleston is a city that rewards those who take the time to explore its hidden corners. From tranquil graveyards and vibrant neighborhoods to historic sites and natural wonders, these hidden gems offer a deeper connection to the city’s soul. Whether you’re a first-time visitor or a Charleston veteran, these lesser-known spots will add a layer of discovery and enchantment to your journey through the Holy City.
Wesley Masters works on Redfin’s stellar Content Marketing team as a content writing specialist. She has been with Rent. since 2023 and her previous experiences include non-profit communications, graphic design, and content creation. Wesley lives in Atlanta, GA, and loves outdoor walks, hanging out with her loved ones, and finding new recipes to try on Pinterest. Her ideal home is a brownstone with contemporary interiors.
A passbook loan is a loan that allows you to borrow against the money you have in your savings account. In other words, your savings serve as collateral for the loan.
While you will likely have to pay interest when borrowing money in this way (which you wouldn’t have to do if you used your savings directly), a passbook loan can help you build credit if your financial institution reports the activity to the credit bureaus and you manage the loan well. Passbook loans may also be a valuable financial tool if you’re having trouble securing a personal loan or find their interest rates to be higher than you can afford.
Keep reading for all the details about how passbook loans work, plus their pros and cons.
Understanding Passbook Loans
Here, learn more about the definition and history of passbook loans as well as how they usually work.
Definition and Historical Background
Passbook loans (often called share-secured or savings-secured loans) are a way to borrow funds, typically at a lower interest rate, by using your savings as collateral.
Passbooks are physical books that record a bank account holder’s transactions. These passport-sized books originated in the 18th century; bank tellers and postmasters could record account transactions in them. For example, a bank teller could write the date of a transaction, the amount deposited or withdrawn, and the amount of money available to the customer. In the late 20th century, bank statements began to make their appearance and replaced passbooks to a large degree. (For those who want them, however, passbook accounts are still available from some financial institutions and can provide a customer with a classic booklet to track transactions.)
A passbook loan borrows from the name of these old-fashioned books. With passbook loans, you use your savings account, held at the same institution, as collateral for a loan, and you may pay a relatively low interest rate. Putting the money in your account up for collateral, however, means your lender can seize that cash if you default on your loan payments.
How Passbook Loans Work
Here’s how a passbook loan works:
• First, you’ll have to find a bank or lending institution that offers passbook loans. Most banks don’t offer them, so you might consider checking at a credit union.
• Once you find a potential lender and establish a savings account or a certificate of deposit (CD) there, the financial institution will usually let you borrow up to 90% to 100% of the money in your savings account. For example, if you have $20,000 in your savings account, you may be able to borrow $18,000 to $20,000. Check with the lender to learn the exact amount.
• Once you receive the loan from your financial institution, it’s important to note that you can’t access your savings. The financial institution might put a hold on your account, or you might have to hand over your savings passbook until the loan is repaid.
• As you repay your loan with interest, your lender will usually release the amount you repay from your withheld savings.
• Your payments may be reported to the national credit bureaus, but check with your lender to be sure. Timely payments can help build your credit score, while making late payments on your passbook loan can damage your score.
Obtaining a Passbook Loan
Next, take a closer look at the usual eligibility and requirements, interest rates, and repayment terms for passbook loans.
Eligibility and Requirements
You’ll need a funded savings account or certificate of deposit to be eligible for a passbook loan, and it’ll typically have to be held at the institution you plan to borrow from. These types of loans are usually easier to get and less risky to the lender because they use collateral to back them (unlike unsecured loans, which don’t require collateral).
Interest Rates and Repayment Terms
It’s important to understand passbook loan interest rates (the amount you repay in addition to the principal), particularly because you’re basically paying interest on your own money.
These loans can offer some of the lowest interest rates of any type of loan, likely because, since they are secured, they pose less risk to your financial institution. For instance, BankFive charges passbook loan rates of 3.00% to 3.50% APR (annual percentage rate) over the interest rate of the savings account used as collateral.
You repay the loan in regular, monthly installments over a specified period, such as three years.
Application Process
You’ll have to fill out an application for a passbook loan. Each bank or credit union has its own application. Simply request the application from your financial institution. Depending on the lender’s requirements, you may be able to complete the application online, in person, over the phone, or via mail.
You may find the paperwork simpler and shorter than what is required for other kinds of loans. That can reflect the fact that you are already a customer of the financial institution and that you are borrowing against your own money.
Advantages and Disadvantages of Passbook Loans
It’s important to consider the pros and cons of passbook loans before you pursue one.
Benefits of Passbook Loans
First, the upsides of passbook loans:
• Lower interest rates: Passbook loans typically carry a lower interest rate than other types of loans, which means the amount you pay back (principal plus interest) could total less than what you’d pay for other types of loans.
• Credit building: Passbook loans may help you build credit, provided your lender reports the loan activity to the credit bureaus and you make your payments on time.
• Few approval requirements: You usually don’t have to meet as many approval requirements to get a passbook loan as you would with other types of loans. That’s because your savings account, typically at the same financial institution, serves as collateral.
Potential Drawbacks and Risks
Now, the downsides of passbook loans:
• Credit may not improve: Though unlikely, your lender may not report your passbook loan payments to the credit bureaus. In that case, a passbook loan might not help you build your credit, even if you are meticulous about paying it back on time. It’s wise to check this point in advance. (Also, you must manage the debt responsibly to build credit if the lender does report your activity.)
• Uses your account as collateral: If you fail to make your payments on your passbook loan, your financial institution can take the money from your savings account.
• Cannot access your money while you borrow: You cannot access your savings account when you borrow money using a passbook loan. This can put you in a tricky situation if you need money immediately.
• Paying the bank for your own funds: At a basic level, a passbook loan means you’re paying the bank to borrow your own money.
• Restricted amount: In a best-case scenario, you can only borrow the amount you have in the bank. So if you have $3,000 in your savings account but are hoping to borrow $10,000 via a passbook loan to buy a car, you won’t be able to do so.
Alternatives to Consider
Passbook loans may not be the right fit for your situation, so you might consider these options instead.
• Personal loans: Personal loans, which generally range between $1,000 to $50,000, are unsecured loans that come from a wide variety of financial institutions, including banks and credit unions. You can use them for any purpose, including home improvements, debt consolidation, and more. Personal loans may cost you more in interest compared to passbook loans, and repayment terms usually range from two to seven years.
However, you typically don’t need collateral for a personal loan, unless it’s a secured personal loan.
Use a personal loan calculator to learn more about how much a personal loan might cost you.
• Credit-builder loans: If you have little to no credit, a credit-builder loan may help you improve your credit score. These loans, which usually range between $300 and $1,000, involve depositing money into a certificate of deposit (CD) or savings account, which the lender holds as collateral. You don’t receive a lump-sum disbursement upfront, as you do with many loans. Instead, you make fixed monthly payments toward the loan (principal plus interest). Your lender may release some of the borrowed funds when you make a monthly payment, or they might hold the full amount till you make the final payment. Interest and fees are usually deducted from the amount you receive. This activity is reported to credit bureaus and contribute to an uptick in your score.
• Secured credit cards: You may want to consider a secured credit credit card instead of a passbook loan. A secured credit card is a credit card that requires a security deposit, which becomes your line of credit. If you don’t make your payments on time or default on your loan, your lender can take your deposit. However, using the credit card responsibly can help you build credit because your lender typically reports your payments to the three major credit-reporting agencies — Experian®, Equifax®, and TransUnion®.
Recommended: What Is the Average Interest Rate on a Personal Loan?
Using Passbook Loans for Different Purposes
There are many uses for funds borrowed via a passbook loan, such as:
• Purchases, such as a new laptop
• Expenses, like homeowners insurance or summer camp for the kids
• Debt consolidation, such as paying off your credit card bill
• Buying a car
• Home improvement projects
• Wedding costs
• Medical or educational expenses
• Vacations
Ultimately, you can use a passbook loan for whatever you want.
Future of Passbook Loans
Will passbook loans be part of the future financial landscape? Given all the other financial products currently available (such as the personal loans described above), consumers may not want to pay interest to borrow against their own savings.
Decline in Popularity
Passbook loans are not very common, having seen their popularity ebb over the years. Their usefulness is often limited to those who want to build their credit in this particular way or are seeking an especially low interest rate. If you find yourself in that situation, you may want to check with various lenders, especially credit unions, to see what’s available.
On the other hand, market data indicates that personal loans are gaining popularity.
The Takeaway
Passbook loans are a way of borrowing money against your savings, which can be useful for some people looking to build their credit. Ultimately, however, you end up paying a financial institution to borrow your own money with a passbook loan.
If you’re looking to access funds for debt consolidation, home improvement projects, a wedding, or other needs, you might want to consider a personal loan instead.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Are passbook loans still available today?
Yes, passbook loans are still available today. Not every lender offers them, so search online for options. You may find that credit unions are more likely to fund these loans.
Can I get a passbook loan without a savings account?
Typically, you need a savings account or a certificate of deposit (CD) account for a passbook loan, typically with the institution you intend to borrow from.
What happens if I default on a passbook loan?
If you default on a passbook loan, your lender could seize your savings (the loan’s collateral) to repay the delinquent balance. Defaulting on your loan can also hurt your credit score.
Photo credit: iStock/Jinda Noipho
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Kids, it turns out, need their parents even after they’re all grown up.
About 6 in 10 parents say they’ve helped their young adult children financially within the past year, according to a report released earlier this year from the Pew Research Center. The most common forms of assistance? Household expenses, cell phone bills and subscriptions to streaming services.
“Parents have always helped their children, but one of the real questions is, ‘How much is too much?’” says Anne Lester, author of “Your Best Financial Life.” The answer, she explains, depends on how much parents can afford to help, as well as each family’s parenting values.
To navigate the challenge of helping young adults achieve financial independence, money experts suggest these strategies:
Talk about money early
Setting up young adults for self-sufficiency starts when they’re younger and still living at home, says Mindy Oglesby, certified financial planner and founder of Oglesby Wealth Strategies in Watkinsville, Georgia.
To help children become financially independent as adults, she says, “it’s important to help them with the mindset of making small sacrifices for something they want,” she says. For example, kids can earn an allowance by doing chores around the house.
Then, Oglesby adds, once they have their own money to manage, parents can show them how to apply a budgeting strategy and immediately put some of that money into a savings account for the future. They can also use a portion to buy something they want, like a toy. “It teaches them to set goals and work for things,” she says.
Rose Niang, CFP and director of financial planning at Edelman Financial Engines, says it’s also helpful to talk to your children about money steps you’ve taken for yourself, such as paying off credit card debt or saving for retirement. “These are conversations that can be sprinkled in anytime, and it will help them later,” she says.
Consider charging rent
As those kids become adults, living at home with parents is a popular way to delay bigger expenses. About 57% of young adults between ages 18 and 24 live with their parents, according to the Pew report. Most say they contribute financially to the household in some way. That can include paying for groceries, bills or rent.
Charging young adults to live at home is a good way to foster financial independence, Oglesby says, especially if the parent puts those “rent” payments into a savings account for the child to one day use toward their own home.
The ideal amount of “rent” really depends on each individual situation, she says, adding that “not everyone will be able to contribute,” and that’s OK, too. It can be a goal they work toward.
Help with specific purchases
Instead of providing blanket financial support, Lester suggests assisting young adults with specific expenses, such as helping them make a down payment on a first home or covering food and rent while they are looking for a job or in school. “Because if you just have an open checkbook, nobody learns,” she adds.
Niang says it can also be helpful to focus on helping a young adult with their “needs,” such as food and housing, while letting them figure out how to handle “wants,” such as a new car or concert tickets, on their own.
Set realistic deadlines
Niang suggests setting and communicating realistic deadlines so your kids can prepare for when parental support runs out. For example, you could tell your child that as soon as they start their first real job with a steady paycheck, they will be taking over payments for their cell phone bill.
Coinciding with milestones, like a first job, helps greatly, Niang adds.
Elaine King, CFP and founder of the firm Family and Money Matters, says withdrawing financial support is easier on young adults if it’s done slowly. Parents might want to reduce their support of lifestyle costs from 100% to 80%, then 50% before getting to zero. “Don’t do it all at once so they can get an additional job or adjust,” she says.
Help them build their own wealth
Lynnette Khalfani-Cox, a personal finance expert and author of “Bounce Back: The Ultimate Guide to Financial Resilience,” suggests helping young adult children in ways that help them build their own wealth, a technique she calls the “wealth starter kit.”
For some, this approach can include purchasing property for children, which she did for her own kids. When her daughter was in college, she and her husband bought a condo for her to help her establish in-state residency for school. That helped keep tuition costs down while also providing her a place to live and an asset that grew in value over time.
“This investment strategy paid off in spades,” Khalfani-Cox says. It worked so well that she and her husband repeated the strategy with their son. She emphasizes that each child is different and some may need more support than others.
A similar but less expensive way to help adult kids build their wealth could be to help them set up retirement accounts and figure out an ongoing strategy for helping them grow.
Protect your own finances along the way
One of the most important rules for parents is to first make sure their own finances are shored up before offering support to their adult children. According to the Pew report, 36% of parents who helped their young adult children financially in the past year say it has hurt their own personal finance situation at least some amount.
“Try to show them in your own life that you are being financially stable,” Oglesby suggests. “You’re leading by example.”
A minor drop in your credit score — like the less-than-five-point drop you’ll temporarily encounter after a hard inquiry when applying for credit — is nothing to sweat in the long term. But a 40-point drop is more worrisome.
Are you asking yourself, “Why did my credit score drop 40 points after paying off debt,” following a credit dispute or for no reason at all? We’ll break down what might be happening to your score below.
Why Did Your Credit Score Drop 40 Points?
Your credit score is a number based on several factors that appear on your credit reports from various credit bureaus. And in fact, you have more than one credit score, though the most common one people refer to is your FICO Score. Because it’s complex — and there’s more than one — there are many reasons your credit score may have dropped 40 points.
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Reasons Your Credit Score Went Down
There are several reasons your credit score could have gone down. Here are the main culprits:
• You made a late payment (or several late payments), which were reported to the credit bureaus. A spending app can help you track upcoming bills so you don’t miss a due date.
• You paid off a loan or credit card, which decreased your average age of credit and your credit mix and also affected your credit utilization.
• You applied for a new loan, which resulted in a hard inquiry.
• You’ve increased your credit utilization, perhaps by maxing out your credit cards.
Often, a sudden 40-point decrease in your credit score is the result of two or more of these actions happening all at once or close together. A hard inquiry, for instance, results in only a five-point decrease in your credit score. But if that hard inquiry was for a credit card that you immediately maxed out and then missed a payment on, you’re much more likely to see a larger decrease in your credit score.
There’s one other important reason your credit score may have dropped 40 points: You could be the victim of identity theft, meaning someone is using your personal information to open new lines of credit in your name and then maxing them out to purchase things for them.
Recommended: How Do I Check My Credit Score Without Paying?
Should You Be Worried About Your Credit Score Dropping?
A minimal drop in your credit score is no cause for concern, but a larger drop, such as 40 points, should be alarming.
If your credit score dropped because of your own actions — overspending on credit cards, missing payments, etc. — do your best to get your financial habits back on track. Tools like a money tracker can help you monitor your spending and credit score.
However, if your credit score dropped by 40 points for no reason, you could be the victim of identity theft. Check your credit reports for signs of suspicious activity. If you notice any, you need to freeze your credit reports and begin the remediation process. Here’s how to report identity theft.
What Can You Do If Your Credit Score Dropped by 40 Points?
If your credit score has dropped by 40 points, here are some things you can do:
• Make on-time payments. Ensure all your bills are paid on time and in full, every month.
• Reduce your credit utilization. Stop swiping your credit card unless you can immediately pay it off. Pay off as much of your card as you can, but resist the temptation to spend more with it. Lowering your credit utilization is crucial to repairing your credit score.
• Keep old accounts open. Average age of credit is one of the major factors that affect your credit score. Keeping an old account open, even if you don’t use it, will help keep your score from falling further.
• Review your credit report for errors. Simple reporting errors could be hurting your score. It’s a good idea to familiarize yourself with common credit report errors and how to dispute them.
• Report identity theft. If someone has opened a credit card in your name, follow the proper steps to report the identity theft to the lender, the credit bureaus, and the authorities.
Recommended: Why Did My Credit Score Drop After a Dispute?
How to Build Credit
While establishing and improving credit takes time, there are several steps you can take now to help repair your score after a 40-point drop. Here are some basic actions you can take:
• Make on-time payments. Turn on autopay for all your bills, and make sure there’s always enough money in your checking account to cover the costs.
• Stop spending on credit. Having a credit card with a high credit limit makes it easy to spend more than you should. But you should only use a credit card if you have the money to pay it off immediately (or for emergencies).
• Keep old cards open. Don’t forget — old cards that you don’t use help keep your credit utilization down and help keep your average age of credit higher.
• Monitor your credit. Regularly monitor your credit report and dispute any errors.
• Don’t apply for credit often. Apply for credit only if you absolutely need it, like to buy a car or a house.
What Factors Impact Credit Scores?
Several factors impact your two main credit scores (FICO Score and VantageScore). The two scoring companies use different algorithms to calculate your score; we’ll focus on FICO because it’s more common.
Here are the five major factors that affect your credit score — and how much weight each one has on your score:
• Payment history: This accounts for 35% of your score. Lenders want to see that you make on-time payments for all your debts. Mortgage and rent payments, utility bills, and other loan repayments (such as credit cards or personal loans) will show up on your credit report.
• Amounts owed: This is your credit utilization, and it accounts for 30% of your score. Creditors love to see that you have a high credit limit available to you, but that you use very little of it. This shows you’re a responsible borrower.
• Length of credit history: This accounts for 15% and is why keeping old cards and accounts open is important. It demonstrates to lenders that you’ve been borrowing responsibly for a long time.
• Credit mix: This makes up 10% of your FICO Score. Lenders like seeing that you can manage a healthy mix of credit accounts (credit cards, installment loans, home loans, etc.).
• New credit: If you open too much new credit all at once, that sends a sign to creditors that you may be a high risk. This makes up 10% of your score.
Allow Some Time Before Checking Your Score
After a major drop, it’s tempting to want to monitor your credit score every day for signs of an upswing. But be patient — it can take time before you see an improvement.
While credit score updates happen fairly often, they don’t happen on a set date. That’s because a lender or creditor can send information to the main credit bureaus at different times, which will impact when a score changes. That said, you can plan on an update occurring at least every 45 days.
Closing a Credit Card Account Can Hurt Your Score
Considering closing a credit card account? You may want to think twice, as doing so could negatively impact your credit score.
When you close a credit card, the amount of your available credit decreases. This, in turn, may lead to a higher credit utilization, which as we mentioned above counts for 30% of your score. Closing a card also decreases the length of your credit history, which makes up 15% of your score.
However, there might be times when closing a credit card makes the most sense for you, such as a separation or divorce or a card with a high annual fee. The good news is, there are ways to cancel a credit card without affecting your credit score.
How to Monitor Your Credit Score
You can monitor your credit score in a number of ways. Your bank or credit card issuer may offer credit score insights in your mobile banking app, and you can check your FICO Score for free with Experian. Several money management apps offer free credit score monitoring, including access to your FICO Score or VantageScore.
Pros and Cons of Credit Monitoring
Credit monitoring services offer several advantages, but there may be drawbacks to consider.
Pros
• Real-time alerts when your score changes
• Analysis and insights to help change borrowing behavior
• Identity theft protection
Cons
• Potential cost
• May not offer insights to all three bureaus
The Takeaway
A sudden, unexpected drop in your credit score can be scary. This is especially true if you’re trying to build credit and have been responsibly paying your bills on time and keeping your credit utilization in check. It’s wise to use credit monitoring services so you’re always updated when something changes on your credit report, as it can help you spot errors or even stop identity theft before it gets out of hand.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
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FAQ
Why is my credit score going down if I pay everything on time?
Even if you make on-time payments, your credit score can drop if you open too many new accounts at once or use up all your available credit every month. A major drop in your credit score could also indicate errors on your credit report or, even worse, identity theft.
Why has my credit score gone down when nothing has changed?
If nothing has truly changed in your finances, your credit score would likely only drop because of an error on your credit report or identity theft. It’s always important to monitor your credit to stay aware of these things. If it’s not a case of error or identity theft, consider your recent credit actions: Did you max out a card or close an old account? These can lead to drops in your credit score.
Why did my credit score drop 40 points when nothing changed?
If your credit score dropped 40 points and nothing changed on your end, check your credit reports with all three major credit bureaus immediately. It’s possible there is an error or that you are the victim of identity theft, meaning someone is using your name to open new credit accounts.
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In the Blue Mounds Driftless Area of Black Earth, Wisconsin, a $4,500,000 property offers ranch-worthy acreage, a grand 5-bedroom home, a custom horse barn, and a slew of standout amenities.
Among them: a private airstrip and helicopter pad, so the future owners won’t have to spend any time in traffic trying to get here.
The property is listed with Shelly Sprinkman of Sprinkman Real Estate — but not for long. The listing is already marked as “Contingent” on Zillow.com, which means Shelly may have already secured a buyer in the short time the house has spent on the market (it was listed merely a month ago).
So let’s take a quick look at this sprawling Wisconsin property — before a buyer takes it off the market.
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A 234-acre spread anchored by a 5-bedroom main house
Photo credit: Menocal Pictures / Sprinkman Real Estate
Summing up the merits of the Blue Mounds property, listing agent Shelly Sprinkman with Sprinkman Real Estate tells us that “This beautifully updated home sits on an expansive 234 acres, offering a unique combination of amenities rarely found in one place.
“With its own airstrip, helicopter pad, private pond, and a custom barn featuring five horse stalls, this property is truly one-of-a-kind. It’s not just a home; it’s a lifestyle.”
The main house has over 5,000 square feet
Photo credit: Menocal Pictures / Sprinkman Real Estate
At the center of it all stands a two-story home with 5,180 square feet of living space, 4 bedrooms, a gourmet kitchen, and a primary ensuite with vaulted ceilings.
The interiors have been extensively renovated
Photo credit: Menocal Pictures / Sprinkman Real Estate
Originally built in 1993, the Wisconsin house has been extensively renovated at the hands of Associated Housewrights, a Madison-based residential design-build firm specializing in remodeling, additions, and new home projects for south-central Wisconsin clientele.
And feature an open floorplan and gourmet kitchen
Photo credit: Menocal Pictures / Sprinkman Real Estate
Inside, we find bright, light-filled interiors thanks to the open floor plan with soaring wood-planked ceilings. Highlights include a captivating grand staircase, and a gourmet kitchen with premium Sub-Zero + Wolf appliances.
There’s a barn with 5 horse stalls
Photo credit: Menocal Pictures / Sprinkman Real Estate
Also on the grounds of the property, we find a masterfully constructed barn featuring 5 horse stalls and panoramic views.
See also: Inside a luxury $7.75M Southampton house with Kentucky Derby-winning horse ties
An equestrian lover’s dream
Photo credit: Menocal Pictures / Sprinkman Real Estate
“The custom barn, designed with five horse stalls, adds to the property’s unique appeal, making it perfect for equestrian enthusiasts or those looking for unparalleled space and luxury,” Sprinkman says.
A collection of outdoor amenities
Photo credit: Menocal Pictures / Sprinkman Real Estate
Outside amenities include a spacious deck, a sweeping paver patio, covered seating areas with al-fresco dining, and a large pond visible from inside the house (and from most of the seating areas). The generous acreage also allows for many more amenities to be added.
Including an airstrip & helicopter pad
Photo credit: Menocal Pictures / Sprinkman Real Estate
The highlight of the property’s amenity roster caters to the ultra-rich: the Wisconsin house has an airstrip and helicopter pad, ensuring future owners won’t have to spend time in traffic when heading to their 234-acre Wisconsin compound.
“Nothing else like it” on the market
Photo credit: Menocal Pictures / Sprinkman Real Estate
As the listing agent rightfully points out, “This property represents a once-in-a-lifetime opportunity in this area. There is nothing else like it currently on the market. With the combination of a beautifully updated home, extensive land, and extraordinary amenities, it’s an exceptional value at $4.5 million.”
But interested parties should act quickly, Shelly shares: “Given the current market conditions, this property is a rare gem that is unlikely to be available for long.”
Window of opportunity closing fast
Photo credit: Menocal Pictures / Sprinkman Real Estate
As previously mentioned, the house is already under contract, a little over a month after listing for sale, an unusually short amount of time for million-dollar listings, which typically take far longer to secure a buyer. This means Shelly was proven right when she said that it likely won’t be available for long.
Nevertheless, potential buyers should still reach out to her — just in case the deal falls through.
More stories
You can buy the house Prince built for his mom near Minneapolis for $699K
Taliesin, Frank Lloyd Wright’s Wisconsin house and its three (tragic) lives
Where does Warren Buffett live? The billionaire’s modest house in Omaha
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how you could save money by caring less about what other people think and how to weigh the pros and cons of a job offer.
How can you save money by not caring about others’ opinions? How does commute time factor into whether you should take an in-person job? Hosts Sean Pyles and Sara Rathner discuss freeing yourself from the pressures of social validation and adopting smart spending habits to help you understand how these approaches can boost your financial well-being. They begin with a discussion of saving money by “not caring,” with tips and tricks on avoiding unnecessary spending influenced by social media influencers, focusing on purchases that genuinely make you happy, and recognizing the fleeting dopamine rush from new buys. They also delve into strategies such as choosing unique vintage clothing, the benefits of a capsule wardrobe, and making thoughtful car-buying decisions.
Then, hosts Elizabeth Ayoola and Sara Rathner talk to Andrew, a listener in Miami, about his decision to start a new job that would increase both his salary and his commute time. They discuss the trade-offs of job changes, the impact on work-life balance, and questions you can ask yourself to help align your career progression with core values.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Teddy Roosevelt once said, “Comparison is the thief of joy.” But if you’re not careful, it can also be the thief of your hard-earned money.
Sara Rathner:
In this episode, we’ll help you find ways to save money by simply not giving a hoot about what people think.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Sara Rathner:
And I’m Sara Rathner. Later in this episode, I am joined by our co-host, Elizabeth Ayoola, to talk with a listener about how they should weigh the pros and cons of accepting a job offer that requires a big lifestyle change. Is a bump in salary necessarily worth it?
Sean Pyles:
But first, we’re going to talk about how you can save money and probably your self-esteem by not caring what people think or comparing yourself to others. If you are a millennial who was bullied into purchasing crew socks because the TikTok youths made you feel bad about your ankle socks, this segment is for you.
So, Sara, I know this idea of not caring what other people think, not basing your self-worth on how you stack up to others, and using it as a way to save money is something that’s been top of mind for you lately, right?
Sara Rathner:
It actually came up in a Slack conversation with a coworker where we joked about having to Google certain Gen Z phrases to find out what they mean. And I remember being 22 in my first full-time job, and coworkers at the time would ask me to define millennial slang, and now I’m the old. It’s kind of freeing not understanding what people are talking about sometimes.
Sean Pyles:
That’s true.
Sara Rathner:
I mean, part of it is the lived experience. You just let time pass, and you become more comfortable just being you. You’ve just been you for a longer period of time, and you accept your flaws. Also, part of it is just buying stuff over the years and then coming to an understanding as to what purchases will bring me greater happiness long-term, and then which won’t. So if something doesn’t matter to me, I don’t follow the trend. A friend of mine who’s a couple of years older than me once told me that the decade of life I’ve just entered is the FU 40s, where you reach this level of peace. You focus on what’s important to you, and the rest just kind of fades away. And you know what? She was right. The second I turned 40, my ability to care just really went down. It might be because I have a toddler and my ability to care is just pretty low.
Sean Pyles:
Yeah. Your priorities have shifted.
Sara Rathner:
Yeah, mostly it’s just about preventing him from falling off of stuff at this point.
Sean Pyles:
That’s a good thing to focus on.
Sara Rathner:
I don’t have time to care about anything else.
Sean Pyles:
Sara Rathner:
So anyway, my point is this: I am going to continue to use the ankle socks I already own and love. Thank you.
Sean Pyles:
And that is your right. Okay. Let’s talk about how people can vanquish the allure of comparison or caring what people think about you and using consumer purchases to prop up the image that you project to the world. I have a few quick tips here.
First, please remember this simple humbling fact: No one thinks about you as much as you think about you. People are not thinking days later about the new outfit that you wore into the office or the vacation pics that you posted on Instagram because they are too busy thinking about their outfits and their photos that they posted on Instagram.
Next, realize that the dopamine bump that you get from a purchase just doesn’t last. It won’t be long before you are hunting for something else to spend money on that makes you feel good. And put those two facts together, and you can begin to see why spending money on something with the hopes of impressing people just isn’t the best investment.
Sara Rathner:
And again, if something you love is, say, fashion, you’re spending money on something that brings you a lot of joy, you enjoy the creativity of putting outfits together, you enjoy hunting for something that you love in stores, then do it. Just put more of your budget into that and maybe avoid purchases that don’t matter as much so you have more money to fund the things that you love and then also fund your savings because that’s important, but you’re not really spending money to impress people in other areas. I’m not knocking people who like buying clothes. I like it too. Just understand that if there’s one thing you love, you can’t have everything.
Sean Pyles:
Yeah, you’re doing it because you want to do it to make yourself happy, not because you’re trying to impress this vague idea of someone else who might think that you look cool.
Sara Rathner:
Right. And if you’re spending a lot of time scrolling on your phone, you kind of develop these parasocial relationships with social media influencers. They’re not your friends. They’re trying to sell you stuff. They get paid when they sell you stuff. This is a very one-sided relationship, and they’re the only ones that benefit.
Let’s talk about a few specific areas where you can easily cut back on just spending money to look cool. And we’ve talked about fashion and your wardrobe. And the thing is, compared to years ago, clothing quality is total crap even for more expensive items. But on the lower-cost side, you buy a T-shirt or a sweater, wear it once, wash it once, and then it becomes a tissue. Chasing trends, you know, this shape of clothing is in style this season, and this detail is in style that season, and then this color, and constantly buying new and going on these clothing hauls, you are going to have a closet full of garbage after a while.
Sean Pyles:
One of my personal and financial goals for this year was to rethink the way that I consume clothes because I am one of those people that likes to have clothes that make me feel good and that are kind of unique and different. So I set out to not buy any new articles of clothing, as in brand new pieces of clothing from a store. Since I do like getting unique vintage pieces, I allowed myself to shop on eBay where I find a lot of cool stuff or at local thrift stores, and I did let myself purchase things from there. So far this year, I found that I’m spending less on clothing, my environmental impact is lower, and I’m also just much less likely to buy something for the sake of updating my wardrobe to get the latest style or cut of jeans or whatever.
Sara Rathner:
And one thing, if you’re trying to minimize how much clothing you buy as some sort of personal challenge, you could try the capsule wardrobe thing, wear the same 20 pieces of clothing in different ways for a month, and force yourself to be creative, and in a way, that can make you fall in love with some of your old clothing again.
Sean Pyles:
Yeah, God, I have so many pieces of clothing that I’ve not worn in over a year, but I will not get rid of them because maybe one day I will wear them again.
All right, well, let’s talk about another area where you can stop trying to impress people — your car. A lot of people buy or lease a flashy car as a status symbol, but that can be one of the riskiest financial decisions that you can make, especially since the average price of a new car was north of $48,000 in July of 2024 according to Cox Automotive. And new vehicles, which often come with loads of computers and sensors, are also more expensive to repair. So you have an expensive car payment, insurance is not going to be cheap, and repairs will also be pricey. There’s nothing wrong with getting an affordable, reliable used car and just driving it until the wheels fall off. So, Sara, I know that your household recently bought a car, right? So how did you approach that?
Sara Rathner:
Yeah, we bought a used 2022 Honda CR-V hybrid a year ago when prices on used cars finally started to come down somewhat. We traded in a 14-year-old compact car that was worth maybe $1,200 at that point because we needed a car that fit the car seat and the stroller and all that stuff, and the compact car didn’t. We had to push the front passenger seat up all the way to fit the car seat. So, not ideal. It wasn’t great for longer-term family use, and we share one car, my husband and I. So we needed something that worked for all of us—both adults, the baby, and the giant dog.
So I have to say, honestly, this is one of the nicest cars I’ve ever driven. It has all of those fancy safety sensors that are standard now. I have a backup camera for the first time in my life. The thing is, this is not a sexy car; it’s a mom-mobile. The trunk always has reusable grocery bags in it. I’m just in that phase of life, and I hope that we drive this thing long enough that the backseat is eventually filled with my future preteen son and his sweaty friends after soccer practice.
Sean Pyles:
Well, that sounds really well thought out. It’s like the kind of car that fits your needs for where you are in life right now.
Sara Rathner:
Yeah, I was saying maybe one day we’ll hand it to him, and it’ll be his car, and it’ll be like, “This car is older than you.” And it’ll still drive well. That would be ideal.
All right, so Sean, you bought a car a couple of years ago. How did you think about that purchase?
Sean Pyles:
Well, here’s the part where I say that buying a car for the right reasons doesn’t mean that you have to buy a total clunker or something that’s completely utilitarian. I drive a lovely 2016 BMW X1, which I named Bette Midnight after the character Bette Porter from the show The L Word. Maybe TMI, but I do really love my car, and having a BMW might sound fancy and obnoxious, but I got an amazing deal on my car back in May 2020, and my payment is a little under $350 monthly. I justify it however I want to, basically, but here’s why I bought this car.
In high school and in college, I drove a severely busted Honda Civic where the muffler was rusted out and literally dragged on the road behind me. When it came time to get my first big-boy car, I wanted something just a little nicer than that. I will admit that as much as I love my car, I do live with a certain amount of cognitive dissonance where whenever I see a BMW driver on the road, I think, “Wow, that guy’s such a jerk.” And then I realize that that’s me, that I’m the jerk now.
Sara Rathner:
Yeah, I think if every one of us took a moment to really think about it, we’re all the jerk sometimes.
Sean Pyles:
Sara Rathner:
Yeah. So when you see your own face reflected in the window of a BMW that you don’t actually drive, you can just live with that emotion.
Sean Pyles:
Yeah. Give yourself some grace for being a jerk every so often, but within reason.
Sara Rathner:
Yeah, and then just try to be better.
Sean Pyles:
Sara Rathner:
Sean Pyles:
Well, I would say go back to what we talked about in the beginning. Get the car that you want for the right reasons because it’ll make you happy and not because you’re trying to look cool. Also, do a lot of research on the kind of car that you want. When I bought my car back in 2020, I had a spreadsheet, of course, and I listed the models that I was considering, their average annual repair cost, their miles per gallon, among other factors. And then also know your personal numbers, as in how much car you can afford. NerdWallet recommends spending no more than 10% of your monthly take-home pay on your auto payment alone. That’s not including insurance, gas, etc. And if you want to see how much car you can really afford, check out NerdWallet’s Auto Loan Calculator. You can find a link in this episode’s show notes post or by just searching “NerdWallet Auto Loan Calculator.”
Sara Rathner:
Yeah. And once you figure out what you could comfortably afford, then you can just stroll into a car dealership with a bit more confidence. And you should do that because car salespeople can smell uncertainty from several miles away, and they will pounce on you, and then you’ll end up buying the car that is not right for you because of pressure. So you don’t want to deal with that situation. So switching gears…
Sean Pyles:
Pun intended.
Sara Rathner:
Hard joke, right? Pun intended. Let’s talk about one more area where you could save money by not trying to impress people. And that is when you go out of your way to do really expensive stuff just for the goal of bragging about it online. I’m talking meals out where you photograph every dish or taking vacations just so you can post photos of the Eiffel Tower or whatever on social media. And the thing is, if expensive vacations or nice dinners bring you joy, that’s great. I love vacations. I take them as often as I can. That can be a priority in your budget, but just doing it to show off and then going into debt to do those sorts of things isn’t a great idea.
Sean Pyles:
Yeah. I was recently having dinner with a group of people, and one of the folks at the table was talking about their recent travels and how they went to X, Y, Z locale just to check the box and say they’ve been there, not because they particularly cared about the place’s historical or cultural significance. And that struck me as a little bit odd. When you’re traveling, you want to see the important destinations, of course, but that should be because you want to do it for yourself, not because you are impressing people in your social media feed who, again, don’t really care that much about whatever you’ve seen.
Sara Rathner:
Yeah. If you want to go to Venice, Venice is beautiful. You should see it. It’s a lovely city, and I recommend it, but not just for the ‘gram.
Sean Pyles:
Sara Rathner:
It should be because you actually want to go and immerse yourself and get to know people there and just really have a wonderful time and not just hop in for a day, check the box, and run out. Cities deserve our attention. They always do. So this gets to a good question that people should ask themselves whenever they’re making any sort of discretionary purchase, which is simply, why? Why are you spending money on this thing or this experience, and what do you expect it to do for you?
Sean Pyles:
Sometimes the answer is just, “It’ll make me happy.” And that’s actually one of the best answers that you can give. And so far as saving money, there are some really easy ways to have great experiences and not break the bank. Travel-wise, we Nerds often recommend traveling in the off-season if your schedule is flexible. You’re likely to find cheaper airfare, plus you won’t have to elbow your way through hordes of strangers to see the sites.
Sara Rathner:
I think that’s enough on how to save money by not giving a… You could fill in that throat-clearing section with any word you’d like. Before we move on to this episode’s money question segment, a reminder, listener, that we are running another book giveaway sweepstakes ahead of our next Nerdy Book Club episode. Our next guest is Jannese Torres, author of Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa. That means powerful, by the way, which offers tips to young people on how to get started with managing their money.
Sean Pyles:
To enter for a chance to win our book giveaway, send an email to [email protected] with the subject “Book Sweepstakes” during the sweepstakes period. Entries must be received by 11:59 PM Pacific Time on August 22nd. Include the following information: your first and last name, email address, zip code, and phone number. For more information, please visit our official sweepstakes rules page.
Sara Rathner:
All right. Now, let’s get into my conversation with our co-host, Elizabeth Ayoola, and a listener about a big job change that listener is considering.
Welcome to NerdWallet’s Smart Money Podcast, where you send us your money questions, and we answer them with the help of our genius Nerds. I’m Sara Rathner.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola. Now, if you have a money question for the Nerds, call or text us on the Nerd hotline at 901-730-6373. Again, that’s 901-730-NERD. You can also email us at [email protected].
Sara Rathner:
Follow us wherever you get your podcasts. And if you like what you hear, leave us a review and tell a friend. We are back, and we’re joined by a listener, Andrew, who has some questions about the trade-offs of leaving a work-from-home job for one that might pay more. Andrew is 37 years old and lives in South Florida. Welcome to Smart Money, Andrew.
Thanks. Thanks for having me. Big fan.
Sara Rathner:
So before we get into the conversation, a quick reminder that we’re not here to give you individualized financial advice. Our goal is to provide the information you need to make the most informed financial decision for your situation. Does that make sense?
Yes, ma’am.
Elizabeth Ayoola:
All right, awesome. So let’s get into it, Andrew. Now, I know you have some really good questions for us about the trade-offs of leaving your work-from-home gig for one that is in the office but pays more. However, before we get into that, can you talk to us about your financial situation generally right now? Tell us, what are your financial goals, and what are some of your pain points?
Currently, I am building up my emergency fund, which I know you guys are well-versed with that. Three to six months of expenses, erring more towards the six. After that, just looking to automate everything—529, Roth contributions, saving for vacations, saving for a new car. Real estate-wise, we’re all set. We own one, are landlords on two others. Not looking to rent, not looking to move anytime soon. So I’d say we’re stable. We only have the mortgages, no other debt.
Sara Rathner:
And tell us a little bit about your home and family situation. Who else lives with you? Who are you supporting? What are you working for basically?
I got the missus and two little ones. One is in grade school now, so that daycare payment stopped, thankfully, but the other one is still in it for another two years. That’s a pain point just because there’s not going to be any tuition or scholarship until she’s four. So we have at least a year or two of these monthly payments. That’d be the biggest pain point right now.
Sara Rathner:
And you mentioned having a spouse. Are they also working?
She’s a props master, which is a super cool job—gets to make things and see them on stage in theater productions—but that doesn’t pay what I would call a living wage, and that’s also part-time. She’s the primary transporter of the children and making sure they’re clothed and shuttled around to all their activities.
Sara Rathner:
So you got a call from a recruiter about a new job that might pay a decent amount more, might be enough of an incentive to leave the job that you have now, but it’s in an office and you live in a really high-traffic city. So you want to tell us a little bit about that and what questions that potential opportunity has brought up for you?
Definitely. As we know, a couple of years ago, we experienced quite the phenomenon worldwide, which shifted everyone to working from home. Honestly, it was kind of a dream for me, even pre-pandemic. 2016, 2017, I thought to myself, “All I need is a laptop, and I can do almost everything from home” at the job that I was at. And I did do that sometimes, even back then. I’d come home and work more; I’d still have to go to work in the morning.
So post-pandemic, it’s been a blessing for a lot of people. I feel, at least me personally, I’ve gotten to get in shape and hang out in a very pivotal time in the kids’ lives, from zero to six. But Miami, in particular, poses its challenges. One, it’s a high-cost-of-living city. The switching costs of moving closer to our central business districts is not easy. The traffic is pretty bad, but what’s worse is likely the road rage, as Miami is the first and third place road rage capital of the country. So that’s where the stress versus money payoff comes into play.
Sara Rathner:
And I will say this, that I loved your question because Elizabeth and I are both intimately acquainted with South Florida traffic. I’m from Miami originally, Elizabeth is living in South Florida. I learned to drive in Miami, so I know that road rage too well. How long would your commute be, and how much more money are we talking?
So commute minimum would be an hour, and this is 20 miles, maybe less.
Sara Rathner:
And this is each way?
Each way. It’s likely closer to 80 minutes, 90 minutes. And if there’s an accident or something, it might even be two hours each way. And I believe the position when I first emailed you guys was four days a week in the office, maybe five days a week in the office. For where that one was located geographically, it just didn’t make sense to basically give up 10, 12, 14 hours a week just in the car. I’d get to listen to a lot of your guys’ podcast for sure, but I’d run out of that pretty quick. The money, anywhere from $60,000 to $70,000 increase. I tried running an analysis—extra gas, extra wear and tear, oil, increased tax. Given where that one was, I think the resounding response and what all the Redditors told me was absolutely not.
Elizabeth Ayoola:
What comes to mind for me, I always find these scenarios a great way to revisit your core values. I think a good way, especially for listeners who may be in this kind of dilemma, to weigh it out is to think about what your values are and think about what your ideal life looks like. I know for me personally in my career, that has been a guiding light for me. I know before this job, I was working at a job that was pretty comfortable, but I had to go to the office every day, and one of my highest values is flexibility and freedom. So being able to have the freedom to work from home and choose my lunchtime or maybe do a quick workout in between meetings is really important to me. So did you find that you weighed your values when you were kind of making this decision as well? I know you just mentioned things like taxes and other kind of quantifiable things, but did you think about your values as well?
I did. And I don’t know if it’s a faux pas to mention another money expert on this show, but I listened to and read Ramit Sethi, which I’m sure you guys are familiar with him, and he talks about the concept of your rich life. And for the majority of the people he talked to, fixed income is way too high. Their income-to-housing cost is way too high. We’re in an okay position there to where I don’t need necessarily to earn $50,000 more, but part of my rich life, as silly as it may sound, is now Brazilian jiu-jitsu, and the gym is 12 minutes away, and I can go every night or as much as my wife would allow.
If I’m working a downtown job, getting home at 6:45, hungry, have to go to the bathroom, then I don’t know that I’m going to have the energy to then go out and fight. And that’s my primary way of keeping in shape. So I just know that if I take a downtown job where I’m there every day, getting my Chipotle every day for lunch, it’s likely going to cause some health implications.
Sara Rathner:
It’s funny because when you sent us this question, it seemed like you hadn’t yet made the decision, and in that time you have, and in this case, you decided not to pursue this opportunity. But in the future, if you were faced with a similar potential opportunity, a similar decision, is there a number or a type of role that would make you say yes? What in your value system might make you make a different decision in the future?
Interesting you should mention that because a mere 90 minutes ago, I was talking to a recruiter who messaged me on LinkedIn, but she presented a pretty interesting opportunity. The increase in base pay would be about $42,000, which is less than the other job, but it’s also closer. And this one’s hybrid—three in, two home. So despite less money, I do get two days back, and it’s about an hour total, less commuting per day. The role itself is non-managerial, which at this stage, that interests me a little more just with the little ones that I’m already managing at home. I don’t necessarily want a team of five or six analysts under me that I need to manage as well. The talk went fine with the recruiter, and she’s going to pass along my info to the in-house recruiter. So that one’s a little bit more compelling, even though it’s less money, which I guess reveals to me that I really do value the time and the travel more than the dollars.
Sara Rathner:
And I asked some questions about your family life because I think when you have a two-partner household and maybe one person brings in more money, it’s very easy to continue chasing even more money because that’s your role. You’re the one that is largely the financial breadwinner. And I like to hear that you’re also thinking about the effect it might have on everybody that’s at home, not just your children but also your wife, because your greater absence would put more on her plate with no additional income on her part, and it might even interrupt her ability to continue earning an income because there’s just more at home to do while you are not physically there. It’s not just about the money; it’s also about the time, and getting to use your own bathroom is the best.
Yeah, that’s true.
Elizabeth Ayoola:
It is. And I will just add, I personally think there are some scenarios where you may sacrifice convenience a little bit if you have a financial goal. I definitely know last year that was the situation for me. I was behind on my retirement savings, and I basically picked up a whole bunch of freelance work to try to boost my retirement savings. So it did mean that I had less free time. But it’s nice to have a timeframe. If someone else, again, another listener, is in this scenario and decides, “Hey, I really need that extra $60,000 or $70,000,” to maybe have a timeframe to it and say, “Maybe I can do this for two or three years just so I can accomplish my goal.” And then I can circle back to whatever lifestyle I was living before, if that is a possibility.
Yeah. And I think from a long-term goal, my experience has been that whenever I’ve switched jobs, I’ve gotten more, and that more has now become my new floor. I’ve never taken a pay decrease, fortunately. That might not be the experience for everyone, but that’s been my experience. It’d be almost preposterous for me to two or three years from now request $175,000 as a base, getting paid what I’m getting paid now. Whereas this most recent opportunity would put me in striking distance, base and bonus, of the 200s. So there’s also the long-term 5-10 year consideration. But what if we have more children? What if we want private school? What if we want to buy a single-family in the city? That’s at least a million dollars to buy a single-family in the city. Those are some other considerations I’m going through.
Sara Rathner:
Yeah, braces and summer camp don’t pay for themselves, unfortunately.
Elizabeth Ayoola:
Sara Rathner:
As your kids get older, your family’s needs get more complicated. Just when you think daycare tuition is off your plate…
Sara Rathner:
…in come the travel sports.
Sara Rathner:
So Andrew, you mentioned that obviously a really great way to boost your salary over time is to switch jobs. You typically get bigger salary bumps when you switch companies than you would if you were to stay put and just accept periodic raises. But in your current job, in your current industry, your current employer, do you see opportunities to bloom where you’re currently planted and perhaps pursue higher salary positions, promotions, or even just make the case for a major salary bump and not have to switch jobs and start going into an office?
I would say yes. I work for a very, very large bank, which means we have a lot of departments. Fortunately, the powers that be are very pro-horizontal mobility, get experience in this department, this specialty area, and then not necessarily, you could always come back, every department has their staffing need, but you still have those relationships, which is a very cool culture and one of the reasons I like where I’m at. I’ve also been promoted once, asked for a decent raise—nothing out of this world, a couple percentage points—but they’ve been granted.
There is some wiggle room within my position, and then if I’m willing to make sort of a not horizontal, not vertical move, sort of a lateral move, diagonal, that could be $10,000 to $15,000. And lastly, my boss has expressed interest in me taking their job and then them getting promoted. Honestly, that’s not something I’m looking to do right now. Again, don’t want to add stress, but again, I might hit a ceiling in my rank, and that’s the next logical step. So I’ve been thinking about that, but not something I’m really wanting to do within the next six months, I would say. So there is some opportunity where I’m at, but I can’t just come out and say, “Hey, I want a 40% raise. Look what they’re trying to pay me.”
Sara Rathner:
Another thing to think about too is as you move up the ranks in your career and you’re approaching your 40s, for a lot of people, it means management or at least a senior-level position that’s not management, but also recognizing what extra hours are you potentially going to have to work in this new role? Are you still going to be able to cut it at a 40, maybe 50 hours a week position, or suddenly there are going to be increased demands on your time?
Yeah, I think company culture is huge. At my former employer a couple of employers ago, they had what I would call a Wall Street culture, which personally, it just wasn’t for me—the 7:00 to 7:00 minimum and then the ambitious people working Saturday and Sunday. Kudos, I hope you have a yacht by now, but that just wasn’t for me. Fortunately, where I’m at has more of a Main Street culture. Obviously, as a manager, I would be subject to more deadlines and responsibilities to those above me and managing the people below me to make sure that we can fulfill all our deadlines. But I wouldn’t see myself working till 6:30 or 7:00. They’re very big on PTO, and when you’re on PTO, they’re very good on work-life balance, which is another reason I like where I’m at.
Sara Rathner:
So one more thing to think about, if you were to take an opportunity in the future that even is a hybrid role, and this is something that people might realize if they transition from work-from-home to hybrid or a fully in-person position: are there any home tasks that you will need to pay to outsource to make up for the fact that you’re not physically present to help with those tasks? And is that something that you would need to work into your budget to make working away from home possible for you?
For the first one, even though it was even more money than the second one, I thought, “Well, I’m just going to have to hire a maid and a chauffeur.” So what’s even the point when I could do those things and it’d be a wash? I’d be working more, and then I guess I’d stimulate the economy by hiring two people. But I’m not really looking to be an economic stimulant other than through spending. As we free up cash flow from what were former debt payments, we could bring someone in to tidy the home. I think that’s the first thing people usually look to do, at least us upwardly mobile Miamians. If I’m meeting all my investment quotas, then why not?
Sara Rathner:
That’s definitely the first thing I outsourced in the home. Using your money to free up your time is, to me, such a tremendous use of money. It can be used to add convenience, not just stuff, but also the absence of something that you have to do is incredibly powerful. So yes, definitely, if you increase your salary and want to increase your quality of life in some ways by outsourcing some tasks, then that is a great use of money. It allows you to be around for your family more often too.
I think a lot of it is how you frame it as well. My friend, who’s in construction, does it quite well. He’s willing to take a pay decrease if he can work a third less hours because he always calculates on a per-hour basis. Which if someone tells me their hourly salary now, I couldn’t tell you if that’s a lot or little because I haven’t been hourly in years. So him being salaried, he always does that exercise, and he’s like, “Oh, I’m getting paid $6 more per hour, but I have to work 30% more. Absolutely not worth it.” Like, what does $6 get you? But I just did the exercise for role two, and I did it on a monthly after-tax, what it would come out to. And it’s enough to cover mortgage and daycare—just the raise after tax.
So when it’s framed like that, that tells a pretty compelling story. Like, “Oh, would you switch jobs and have to drive eight more hours if just the increase would pay for your mortgage and your daycare?” which are most people’s biggest expenses. That sounds pretty good. But when you frame it, do you want to spend 8 to 10 hours a week in Miami traffic and possibly get rear-ended and have people cutting you off? There’s almost no amount of money that you’d want to get paid to do that. So I think the framing is just a very, very interesting concept as well.
Elizabeth Ayoola:
So Andrew, tell us now, we’ve had this conversation, after this conversation, what are you thinking? Do you feel like you have more tools to consider if or when another tantalizing offer comes along for a new job?
I think I do. And shout out to the NerdWallet website, there’s a tax estimator calculator on there where you can put your filing status, your age, your household income. From a strictly math standpoint, I think it’s easy. From a value standpoint, it’s definitely more nuanced. So thank you guys for your time and your input as well.
Sara Rathner:
Yeah, no, we’re happy to be part of your decision-making journey because this is something that I think a lot of people go through as they progress in their careers and as their lives get more full and potentially more complicated in hopefully good ways, but sometimes hard ways too. So if you’re out there listening and you’re weighing a potential job change or you’re itching to change jobs, it’s absolutely not just a financial exercise, but it is also a values exercise.
Elizabeth Ayoola:
It absolutely is. And for me, values usually take the cake. But I say that knowing that I have certain privileges, and I’m able to choose. I know not everyone has that option.
So on that note, that’s all we have for this episode. Now remember, we are here for you and your money decisions. So turn to the Nerds and call or text us your question at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more information on this episode. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio. And what happens there is you’re able to automatically download new episodes.
Sara Rathner:
And here’s our brief disclaimer: We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Elizabeth Ayoola:
And with that said, until next time… turn to the Nerds.
Rising costs tighten margins for business owners. And to make up for that increased pressure, businesses usually have to raise prices — which, when it’s done month after month, can start to wear on customers.
Customers are facing “price increase fatigue,” says Kirk Jackisch, president of consulting firm Iris Pricing Solutions. “They’re done. They can’t take it anymore — just across-the-board price increases. So you have to look at more surgical solutions.”
Targeting price increases carefully and communicating them clearly can help ease the pain customers feel, Jackisch says. Here’s how you can go about it — and what you need to avoid as legislators across the U.S. focus on fees and surcharges.
Balance price increases with new deals
Matthew Heaggans is co-owner of Preston’s: A Burger Joint, a restaurant in Columbus, Ohio. When sambal, an ingredient they used in a signature sauce, more than doubled in price, Preston’s began buying chili peppers to make their own — but then those tripled in price, too.
In light of such rising costs, Heaggans says Preston’s raised prices by about 7% on average. But that doesn’t mean they’ve raised every price by 7%.
For example, while a burger might be more expensive than it used to be, sides are now cheaper when you buy them as part of a combo.
“People are driven very significantly in our market by price,” Heaggans says, so it’s essential that Preston’s keeps prices competitive.
If you’re concerned about the long-term impact of price increases, you can opt to adjust them temporarily to account for cost shocks. For example, as egg prices spiked in 2023, some restaurants temporarily increased the prices of dishes containing eggs. Shipping companies have long adjusted their fuel surcharges as gas prices rise and fall.
Fortunately, for all of the “agonizing” he put into price changes, Heaggans says customers didn’t mind.
“My constant plea to consumers is that if you really, really like a thing, you should support it or it’s going to go away,” Heaggans says.
Don’t inflate your fees to avoid raising sticker prices
Customers often feel duped by last-minute or opaque fees — and regulators are taking aim at them, too.
At the federal level, the Biden administration has announced plans to crack down on junk fees on everything from event ticketing to college textbooks. And as of July 1, California has banned “drip pricing,” or advertising a price that doesn’t include mandatory additional fees and surcharges.
California’s law is designed to target last-minute, high-cost service fees on products and services like concert tickets and hotel rooms, says David W. Wright, an attorney at Pillsbury Winthrop Shaw Pittman LLP in Los Angeles.
The law is “not necessarily preventing businesses from trying to recoup those costs, but instead trying to make it so that businesses disclose those costs up front so consumers know what they’re getting themselves into,” Wright says.
Under California’s rule, handling fees have to be listed as part of the advertised price. “Reasonable” shipping fees and taxes, however, do not.
“The safest way to protect yourself is to include all prices” within the sticker price, Wright says.
Other states limit pricing practices in additional ways. For instance, some companies pass credit card charges onto customers to offset their payment processing costs. But several states restrict the practice. For example, New York requires you to include these fees in the posted price but allows you to charge a lower price for customers paying cash. And Colorado caps credit card surcharges at 2%.
Offer customers fee-free alternatives when possible
Jackisch also recommends increasing prices in ways that focus on the customers who cost the most to serve — like those that request rush jobs or ask for last-minute changes.
For example, if your company typically delivers orders in four weeks and a customer requests a two-week turnaround, you might apply a rush charge. After all, your business will have to absorb the costs of disrupting your normal operations to meet that customer’s needs.
Most customers see fees tacked onto their bills as “punitive,” Jackisch says. The key is to make sure there’s a way to avoid those fees and explain what it is.
The fee-free alternative in this case? For the customer to wait the typical four weeks.
Salespeople should be able to explain that when it comes to customer requests, “we’re happy to do it. But just recognize that there’s a cost to us, and we’re passing some of that along to you,” Jackisch says. “That communicates the value and the fairness of the fee.”
There is no such thing as no-deposit car insurance. All insurers require payment before activating coverage.
You can lower your initial payment by taking advantage of discounts, only purchasing coverage you need and comparing rates to find the cheapest insurance company for you.
Your first car insurance payment can be as low as $29, according to NerdWallet’s August2024 analysis of minimum coverage rates from the country’s largest insurers.
A car insurance “deposit” counts toward your total premium. It’s not an additional fee.
Car insurance with no deposit doesn’t exist. Legitimate insurers require some money down before they’ll provide coverage. The good news is that an auto policy’s initial “deposit” isn’t a separate fee, but the first payment you’ll make towards buying and maintaining your coverage.
Most auto insurers will let you either pay in monthly increments or in full for the entire policy period, which is typically six months or a year. If you’re looking for the lowest possible payment to start your auto insurance coverage, the cheapest option will likely be to pay only your first month’s premium payment.
Even though you’ll have to put some money down to get car insurance, your initial payment doesn’t have to be astronomical. Read more to learn how to find cheap car insurance with a low initial payment.
Table of Contents
How to find car insurance with a very cheap “deposit”
Just because a policy requires a payment upfront doesn’t necessarily mean you’re overpaying for your auto insurance coverage. Still, there are ways to make sure you are paying as little as possible in that first transaction.
Here’s how to lower your first car insurance payment.
Shop around. Your “deposit” will likely just be your first premium payment, so look for the lowest possible premium. The best way to do that is to compare car insurance quotes from at least three insurers. Not sure where to start? Take a look at NerdWallet’s list of the cheapest car insurance companies.
Ask about discounts. You may be surprised by the variety of discounts some insurers offer, so be sure to ask your insurer or agent for any discounts you might qualify for. You could get a lower price for making electronic payments, being a good student, insuring multiple vehicles or even driving a low amount of miles.
Only get the coverage you need. Look over your policy and drop any coverage you don’t really need. For example, if you drive an older car that’s not worth much, you likely don’t need comprehensive and collision coverage, which only cover your vehicle up to its current market value, minus your deductible.
Lower your deductible. If you have enough of a cushion in your emergency savings, you can choose a higher car insurance deductible. Although this would require you to pay more out-of-pocket before your insurance pays for a covered claim, your monthly premium would decrease.
Pay month-to-month. Most insurers give the option to pay for coverage in full or monthly installments. If you want to lower the initial cost for your coverage, pay month-to-month.
🤓Nerdy Tip
Keep in mind, paying for the full six or twelve months of coverage can end up being cheaper in the long run if your insurer offers a pay-in-full discount.
How much does a car insurance initial payment cost?
The initial payment for a car insurance policy can be as low as your monthly policy rate, and can vary based on the overall cost of your policy and the payment plan you agree upon with your insurer.
Cheapest car insurance “deposits” for minimum coverage
Below are the five cheapest large insurers for minimum coverage, according to NerdWallet’s August2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
Cheapest car insurance “deposits” for full coverage
Below are the five cheapest large insurers for full coverage, according to NerdWallet’s August2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
Cheap coverage could leave you underinsured
When you’re shopping for a policy with a very low monthly payment, keep in mind that it may offer very limited coverage.
The absolute cheapest policies will provide only the minimum-required coverage in your state, which typically only includes a limited amount of liability insurance. This pays for damage and injuries you may cause to others in an accident, up to your policy limits. But it won’t cover things like damage to your car or for your own injuries if you’re hit by an uninsured or underinsured driver. In most cases, your state’s minimum required limits are probably not enough to protect you financially in the event of a serious accident.
Before you buy the cheapest car insurance you can find, make sure you’re getting enough coverage to protect you financially. Unsure of what the different types of car insurance are? Use our tool below to learn about what each type pays for.
I started making extra money and side hustling around 15 years ago, and since then I have done over 20 different side hustles. I started so that I could stop living paycheck to paycheck, and so that I could pay off my student loans quickly (I ended up paying off $40,000 in student loans in…
I started making extra money and side hustling around 15 years ago, and since then I have done over 20 different side hustles.
I started so that I could stop living paycheck to paycheck, and so that I could pay off my student loans quickly (I ended up paying off $40,000 in student loans in just 7 months thanks to side hustling!).
Some were short-lived, while others turned into steady streams of income (and are even my full-time income today). Each side job taught me something valuable about money, time, and effort. I juggled everything from reselling clothes online to being a virtual assistant, mystery shopping, answering online surveys, having roommates, and more.
There isn’t one best way to make extra money; it depends on what you’re good at, what you like, how much time you have, and more.
If you want to start a side job, my experiences can help you decide. I’ll tell you what I learned from each one I tried, so you can see the pros and cons of each.
My Side Hustles Review
Below is my review of the different side hustles I have tried over the years. These are in no particular order.
A picture of me blogging from several years ago 🙂
1. Blogging
Blogging can be a great way to earn money while writing about topics you love. I’ve done it for years and have seen how it can grow from a hobby into a full-time job.
I enjoy blogging for many reasons such as:
It’s flexible – You can blog from anywhere, anytime.
It’s affordable to start – You just need a computer and internet.
It’s a great creative outlet – Share your thoughts and passions with the world. I enjoy blogging and running a website.
While there are a lot of great reasons to start a blog, there are some challenges such as it can be time-consuming and there is no guarantee that you will make money.
When I first started my blog, I was working over 40 hours a week on it and making nothing. It took me 6 months to make my first $100 from it, actually!
But, it was all worth it in the end.
Blogging used to be my side hustle and it is now my full-time job where I have earned over $5,000,000 over the years.
I would definitely say that blogging is my favorite side hustle.
For me, it was a great second job because I could work on my blog before my day job, during lunch, after work, and on weekends. You can make your own schedule, which is a big bonus!
You can learn more about how to begin in my free How To Start a Blog Course here.
2. Paid online surveys
Paid online surveys are a way to make some extra cash when you have spare time. With just a few clicks and some honest answers, you can see money rolling in.
Companies want to know what customers think about their products and services and that is why they pay for surveys. By sharing your opinions, you help them improve and develop better offerings. In turn, they pay you for your time and insights.
You usually can earn anywhere from $0.50 to $5 per survey, depending on the length and how hard the survey is. And, surveys can take anywhere from around 10 minutes to an hour, so they are not high paying.
I’ve taken a lot of surveys over the years, and what I like about them is that you can do them whenever you want – in the morning, during lunch, before bed – whenever it works for you. There’s no strict schedule, and they are really easy to do.
My tips for success:
Sign up for multiple sites: This increases your chances of getting more surveys and making more money.
Complete your profile: Some survey sites match you to surveys based on your profile.
Be honest: Giving truthful answers ensures you stay eligible for more surveys.
Payment methods are typically cash via PayPal, bank transfer, or free gift cards (such as to Amazon, Walmart, Starbucks, and more).
You won’t get rich from these surveys, but it’s a nice way to earn some side cash. I know that some people think that surveys are a waste of time – but I know several people (including myself) who liked doing them because they are so flexible. I think the right mindset to have is that they will definitely not make you rich, and some can take a long(er) time to earn $5.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
3. Focus groups and paid research studies
You can make money by participating in focus groups. Companies pay for your opinions to improve their products and services.
This is similar to paid online surveys, but paid research studies and focus groups typically pay more.
User Interviews is a popular site where you can find paid research studies and focus groups.
Big companies like Pinterest, Spotify, Macy’s, Home Depot, Trip Advisor, and Amazon use User Interviews to get feedback on their new products, apps, and websites.
You can make $50 to $100 per hour, or even more, just by sharing your thoughts and feedback.
I did a user interview myself and got paid $400 for just one hour of work. It was easy, and everything was done online through a video call where they asked for my opinion on a new feature for a website.
Please click here to learn more about User Interviews.
Also, if you’re interested in paid medical research studies, then that can be a high-paying option as well. When my husband was younger, he took part in a few medical research studies to help us make extra money. He usually got paid about $1,000 for a week’s worth of time.
4. Dividends
Okay, so this isn’t exactly a side hustle, but it is a way that you can make more money so I wanted to include it here, especially since it’s one of my favorite ways to increase my income.
Dividends are an awesome way to earn passive income. You don’t need to do much work, and the money comes in. Many companies pay dividends to their shareholders regularly.
Here are a few benefits of investing in dividend stocks:
Regular income: You can receive payments quarterly or even monthly.
Low effort: Once you buy the stock, you don’t have to do much else.
A dividend is a portion of a company’s profits given to its eligible shareholders. You can receive dividends in cash, stock, or even options to buy more stock.
If you own shares in a company that pays dividends, you’ll get a dividend for each share you own.
For example, if you have 10 shares in Company XYZ and they pay $5 in cash dividends each year, you’ll get $50 in dividends for the year. Dividends are usually paid out quarterly, which means 4 times a year. So, in the example, the $5 in yearly dividends would likely be paid as $1.25 per quarter for each share you own.
You can learn more at What Are Dividends & How Do They Work? A Beginner’s Guide.
5. Buy and sell flipping
Flipping items is a great side hustle, and this is when you buy items at a low price and sell them for more.
The benefits of buy and sell flipping include:
Flexibility: You can flip items in your free time.
Profitable: Potential to earn anywhere from $50 to $5000 a month.
Fun: The thrill of finding good deals and making a profit.
I have flipped many items for resale over the years, and I even had a small reselling business at one point. It’s a fun way to make extra money.
While flipping items by buying and selling them for profit can be exciting, it has some downsides. One big risk is that you might not always make a profit, especially if the market drops or you overestimate the item’s value. It can also take a lot of time to research products, find good deals, and manage your listings. There’s tough competition too, as many people are trying to flip items, which can lower prices.
You can learn more at How I Made $40,000 In One Year Flipping Items.
6. Sold clothing
Selling used clothing can be a great way to make extra money. You can find clothes to sell in many places: thrift stores, clearance aisles, garage sales, and even your own closet.
For me, I liked to sell clothing on eBay as well as in person to places like Plato’s Closet. There are many more options these days, such as Poshmark and Facebook Marketplace.
Selling used clothes as a side hustle has its ups and downs. On the plus side, it has low start-up costs because you can start with clothes you already own, and it’s eco-friendly, supporting sustainable fashion. You also get to work on your own schedule, and there’s a high demand for secondhand clothes, especially trendy or vintage items. But it can take a lot of time to sort, clean, photograph, and list the clothes. Plus, shipping costs can cut into your profits, especially for heavier items.
I’ve sold a lot of clothing over the years, both online and in person (I also used to work at a secondhand clothing store for many years). I even had a small clothing resale business at one point, so I have plenty of experience in selling used clothes!
You can learn more at 16 Best Places To Sell Clothes For Cash.
7. Social media management
Social media management is a great side hustle if you enjoy creating content and engaging with people online.
Social media managers handle businesses’ social media accounts like Facebook, Instagram, and Twitter. They create posts, reply to comments, and help grow their followers.
Some benefits include:
Flexible hours: Many times, you can work anytime, making it easy to fit around your main job. This is because you can schedule social media posts to go out at the exact time that you want.
You can be creative: You can express your creativity through different types of content.
Work from anywhere: All you need is a laptop and internet.
But, there are some cons too. This wasn’t my favorite side hustle, mainly because it was stressful at times. It is very time-consuming (creating good content and engaging with followers can take a lot of time), there is constant learning (social media trends change quickly, so you need to keep learning new skills), and some clients may have high expectations and tight deadlines.
If you like being creative and spending time online, social media management can be a fun and rewarding side hustle.
8. Virtual assistant
Being a virtual assistant is one of my favorite side hustles. It’s flexible, and you can work from anywhere. You handle tasks for other people or businesses, like managing emails, scheduling appointments, or doing research.
Why I like virtual assisting:
Flexible hours: You set your own schedule.
Work from home: No need to commute.
Variety of tasks: You can decide what virtual assistant tasks you want to provide.
Working as a virtual assistant is a great way to make extra money. It gives you flexibility, a variety of tasks, and you can get started with just a computer and an internet connection.
You can learn more at Best Ways To Find Virtual Assistant Jobs.
9. Freelance writer
As a freelance writer, you get to write for different clients and websites. You can work from home and set your own hours. This side hustle can be very flexible, especially if you enjoy writing.
I’ve been a freelance writer for many years, and I really enjoy it. I’ve written for lots of different websites and companies, and I’ve made good money doing it.
The positives of being a freelance writer include:
Flexible schedule: You can write during your free time.
You get to decide what you want to write about: You get to write about different topics.
Work from home: No need for a commute.
There are some cons, though, such as income can vary, with some months being busy while others are slower. Finding clients requires actively searching to keep work steady. Plus, meeting deadlines can also be stressful, adding pressure to the job.
Freelance writing is a great side hustle if you love to write and want to make extra money. It takes time to build a steady income, but it can be very rewarding.
You can learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).
10. Receipt scanning apps
Using receipt scanning apps is an easy way to earn some extra money. You just take a picture of your receipts from shopping, and these apps give you points or cash back. Here are some of the best apps to try:
I’ve been using receipt-scanning apps for years, and I love how easy they are to use. You can earn points or cash without spending much time. Plus, since I already have the receipts, it’s great to make some extra money by doing almost nothing.
My favorite receipt-scanning apps are:
I like to use both Fetch Rewards and Ibotta on all of my receipts (yes, at the same time to stack rewards).
Receipt-scanning apps can be handy, but they do have some downsides. One of the main drawbacks is that the rewards are usually small, so it can take a while to earn a significant amount. You also have to remember to scan receipts regularly, which can be time-consuming and easy to forget.
For me, though, I like to use them on all of my receipts as it only takes a quick moment to do.
11. Mystery shopping
When I had student loans to pay off, I turned to mystery shopping to make extra money. It didn’t make me rich, but it helped increase my income and allowed me to enjoy some free meals and free stuff (like free makeup and household goods).
Mystery shopping involves acting like a regular customer and then reporting on your experience. You might review a restaurant, shop at a store, or even evaluate a phone call. Companies use your feedback to improve their service.
What I like about mystery shopping:
Extra cash (typically $10 to $15 per mystery shopping task)
Free items or meals (you’re usually given an amount to spend in the store or restaurant)
Flexible schedule
Mystery shopping helped me make around $100 to $200 a month.
Joining a reliable mystery shopping company is important, though, as there are a lot of scams. I used Bestmark and had a good experience with them.
Mystery shopping won’t replace a full-time job, but it’s a fun way to make some extra money.
You can learn more at How To Become A Mystery Shopper.
12. Babysitter
Being a babysitter is a flexible side hustle. You can choose your own hours and accept jobs that fit your schedule.
Parents often need help on weekends or evenings, which can be perfect if you are busy during the day.
What I liked about babysitting:
Good pay – around $15 to $25 per hour (depending on where you live)
Helps develop responsibility
Flexible hours
Of course, there are downsides to being a babysitter, such as it can be tiring watching kids for long periods, and sometimes this side job means that you’ll be working late nights or weekends.
I was a babysitter when I was younger and I really liked it. The kids I babysat were fun to be around!
13. Coaching
Coaching can be a great side hustle. You get to help people grow and achieve their goals. It also offers flexibility because you get to be your own boss and decide your work hours.
I used to offer blog coaching in the past, and I enjoyed helping people learn how to grow their blogs and make money blogging.
It was also really easy for me to do, as I have been blogging for many years and have learned a lot about what to do and what not to do.
If you have the expertise and enjoy motivating others to improve, then there is probably a topic that you can coach others on.
14. Course creator
Creating an online course can be a game changer for your income. I launched my first course, Making Sense of Affiliate Marketing, in July 2016. Within the first year, it brought in around $434,698. This wasn’t due to any fancy marketing techniques but mainly through word-of-mouth.
Even though the course was successful, it didn’t come easy. I was nervous about it, especially since it was my first. I had worries that no one would be interested. Plus, many people said that your first course usually isn’t great.
Yet, the desire to help others understand affiliate marketing kept me going. By sharing my knowledge, I aimed to help bloggers increase their income. Online courses are beneficial because they can include interactive materials, workbooks, and community support, which go beyond what an ebook offers.
Here are some success stories from my course:
One student increased their monthly income from $272 to $4,400.
A new blogger got their first affiliate sale just two days after taking the course.
Another went from earning $87 a month to over $1,700 the next month.
And I have helped countless bloggers earn well over $100,000 a year from their blog and turn it into a full-time income.
Creating a course is a lot of work, but it can also be very rewarding. It allows you to reach a wider audience and can become a substantial income stream. If you have knowledge to share, you may want to try creating your own online course.
This is a business idea that I recommend more people start! I enjoy taking courses from people and sign up for them all the time. I love learning, and so do others.
You can learn more at How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.
15. Affiliate marketing
Affiliate marketing is one of the most popular side hustles. It’s easy to start and doesn’t need a lot of money up front.
You promote products and earn a commission for every sale made through your referral link. This can be done on social media, a blog, a YouTube channel, and more.
What I like about affiliate marketing:
Low start-up cost: You don’t need much money to start.
Flexible schedule: Work when you want.
Passive income: You can earn money even when you’re not working.
Affiliate marketing can be a fun and profitable side hustle. Just remember to stay patient and persistent!
You can learn more at What You Need To Know About Affiliate Marketing For Beginners.
This small house we owned had 4 bedrooms and we rented out two of them.
16. Rent out a room in your home
Renting out a room in your house can be a simple way to make extra money. If you have unused space, like a spare bedroom or basement, you can turn it into a rental.
I have had several roommates in the past, and I liked this side hustle a lot.
What I liked about making extra money by renting out a spare room:
Extra income to help pay the mortgage
If you have unused space, then this can be a good way to fill it
Of course, there are challenges to having a roommate, and it isn’t always perfect. Sometimes, it can be hard to share common spaces (like the kitchen and bathroom), and it can also take time to adjust to someone else’s lifestyle.
Renting out a room isn’t for everyone, but it can provide steady income with minimal effort.
17. Shop at cash back websites
Shopping at cash back websites is an easy way to earn extra money. These sites give you a percentage of your purchase back as cash. You just have to sign up, shop through their site, app, or browser extension, and earn rewards.
I like cash back sites because they are easy to use and you don’t have to pay anything extra for using them.
Shopping through cash back sites can give you a nice little bonus on things you already planned to buy. It’s like getting paid to shop.
My favorite cash back sites are:
Rakuten (for online shopping like clothing, home goods, etc.)
Upside (for gas)
Honey (for online shopping like clothing, home goods, etc.)
Fetch Rewards (for groceries)
18. Earn credit card rewards
Using credit cards (the smart way) can help you earn rewards like cash, travel points, and more.
I’ve been using rewards credit cards for years, and now they’re the only cards I use. They help me save money on travel, earn cash back, and more.
By choosing the right credit card and using it wisely, you can enjoy great rewards and make the most of your spending.
Remember, carrying a balance on your credit card can lead to interest charges, which can outweigh the benefits of rewards. Always try to pay off your full balance each month to avoid these fees.
You can see my favorite credit card rewards at Best Rewards Credit Cards For This Year | What You Need To Know.
19. Brand ambassador
Being a brand ambassador is one of the more popular side hustles.
You represent a company and help promote its products. Often, you act as a public spokesperson. You can find opportunities on Facebook and many cities have brand ambassador groups where gigs are posted.
Brand ambassadors can earn between $15 to $20 per hour. Some high-end gigs can pay up to $100 per hour.
Benefits of this side hustle include flexible hours and the chance to work for brands you like. You may be able to get free products or swag, too, and this is one thing I really liked about being a brand ambassador in the past.
20. Newspaper delivery
Delivering newspapers can be an easy way to make money. It’s a job you can do before school or work, and it lets you get exercise too. You may drive, ride your bike, or walk to each house and leave the newspaper by the door.
The benefits of newspaper delivery include:
Exercise: If you walk or ride your bike, you can get plenty of fresh air and exercise.
Scheduling: Most routes are in the early morning, so you still have the rest of the day free.
Tips: Some customers might give you tips during holidays or for good service.
But, there are some downsides, with the main one being that you typically have to wake up really early for this job. For newspaper delivery, you usually have to wake up very early in the morning, often around 3:00 to 5:00 AM. The exact time depends on how big your delivery route is and what the newspaper company requires. The goal is to have all the newspapers delivered by the time most people wake up, usually around 6:00 or 7:00 AM, so starting early is really important.
The other main negative is that a big collection of newspapers is, of course, heavy!
When I was younger, I helped a friend’s family with their newspaper run whenever I slept over at their house. They used their van to deliver a bunch of newspapers, and I got to tag along.
21. Help others with their resume
Helping others with their resume can be a rewarding side hustle. You can earn extra money while also making a big difference in someone’s job hunt.
When I was in my last year of college as well as about a year after I graduated, I helped several people with their resumes. I didn’t charge a lot (and many times worked for free or for a free meal), but I liked looking at resumes and finding ways to make everything sound better.
I was also really good at it and it came so easy to me!
Some benefits of this side hustle include:
Flexibility: You can do this from home.
High demand: Many people need help with their resumes.
Work at your own pace: There’s no rush, and you can take on as many clients as you want.
By helping others with their resumes, you can earn money and provide help. It’s a great way to use your skills and make a difference in someone’s life.
22. Enter contests and giveaways
Entering contests and giveaways can be a fun and rewarding side hustle. You will definitely not win every time, but the more you enter, the higher your chances. People have won cash, gift cards, vacations, and electronics through these events.
You can spend a little time each week entering different contests. You can find them online, on social media, and in emails from brands you follow. Some people set aside about an hour each week to enter as many as they can find.
I found success this way. For example, I once won $10,000 from a financial blog’s anniversary contest, and this was a major win early on in my side hustle journey.
Remember, entering contests should be fun. Think of it as a hobby that could pay off with some great surprises. You most likely won’t get rich nor win the lottery doing this.
This is a screenshot from this month. I earned around $300 playing games on my phone.
23. Rewards sites (GPT sites)
Rewards sites, also known as GPT (Get-Paid-To) sites, are platforms where you can earn money by doing simple tasks online.
Tasks you might do include:
Taking surveys
Reading emails
Playing games
Shopping online
Trying new apps and services
Clicking ads
Rewards sites have been around for a while and have proven to be a reliable way to earn some extra cash. Though the payouts are often small, they can add up over time. For instance, Swagbucks has paid out over $80 million to its users.
Using multiple sites can help maximize your earnings. It’s easy to do tasks during your free time, making it a flexible way to earn money without a huge time commitment.
It’s key to choose reputable sites to make sure that you get paid for your efforts, so I recommend that you stick with popular, well-reviewed platforms to avoid scams.
Rewards sites will most likely not replace a full-time income, but they can be a fun way to get some extra spending money.
Here’s a quick list of the best GPT sites:
24. Test websites (User Testing)
Testing websites, also known as user testing, is a popular side hustle. You get paid to visit a website or app and give feedback on your experience.
You will need a computer, a reliable internet connection, and sometimes a microphone.
User testing is flexible. You can do it in your free time from the comfort of your home. This side hustle is great if you like trying new things and providing feedback.
I have personally been paid to do user testing in the past, as well as paid others to do user testing on this very website, Making Sense of Cents. I thought it was an easy side hustle where you just share what you honestly think of a website.
25. College textbook resale
Selling your college textbooks is a great way to make some extra money.
When I was in college, I sold all of my college textbooks once I was done, and I always tried to make the most money (so, that typically meant that I never sold it directly back to my college bookstore, because they usually paid the least amount).
Reselling college textbooks as a side hustle has its ups and downs.
On the plus side, there’s a high demand for cheaper, used textbooks, so you can make good money if you buy low and sell high. It’s easy to start, especially if you begin with your own used books, and it’s a great way to encourage reusing materials.
But the market is seasonal, with most demand at the start of each semester, so your income might be inconsistent. New editions can come out, making older books less valuable, and storing a lot of books can be tough. Plus, shipping heavy textbooks can cut into your profits if you’re not careful.
Recommended reading: 17 Best Places To Sell Used Books For Cash
Frequently Asked Questions
Below are answers to common questions about finding the best side hustle.
What are the top side hustles that can bring in good money?
Top side hustles that can bring in good money include freelancing, blogging, flipping items for resale, and renting out rooms in your home.
How can I find side hustles that pay me every week?
You can find weekly pay side hustles through gig economy platforms like Uber, Lyft, and DoorDash. Freelancing on websites like Upwork or Fiverr might also pay weekly, depending on your agreement with clients. Another option is finding part-time jobs at local businesses that pay weekly wages.
Can you suggest some side hustle ideas I can do from my house?
There are several home-based side hustles. You can start freelancing in areas like writing, graphic design, or social media management. Another idea is to sell virtual assistant services. Teaching online courses or tutoring students in subjects you excel at is also a great way to earn from home.
What side jobs are out there for someone with no experience?
There are many side jobs for beginners. You can try pet sitting or dog walking through apps like Rover. Babysitting is another option if you like spending time with children. Delivery driving for companies like Uber Eats or Instacart doesn’t require much experience and can be started quickly too.
My Favorite Side Hustles – Summary
Now that we have gone over my full list, I want to talk about one of the main deciding factors of a side hustle.
Your time is important. Some side jobs take a lot of time but don’t pay well, while others pay more with less time.
Think about how much free time you have after your main job and how much money you want to make. This balance is very important. Track the hours you work and the money you earn to see if it’s worth it. The best side job fits into your life without stressing you out.
Also, another important deciding factor is choosing a side hustle that aligns with your skills and lifestyle. If you’re good at something, you’re likely to enjoy it more and perform better.
So, I recommend thinking about your current skills and hobbies. Matching your side hustle to your skills makes it easier and more enjoyable. Plus, you’re more likely to find success and earn extra income.
At the risk of jinxing it, things are looking up for home buyers.
The average rate on a 30-year fixed rate mortgage has dropped for three consecutive months (and counting). Competition has calmed down a bit — and inflation has, too. And while we’re still technically in a sellers’ market, the inventory of homes for sale in June reached its highest level in more than four years.
Hoping to buy in 2024? If you’re well prepared with a budget and a mortgage preapproval, you might not even need to knock on wood. Let’s look at the good news, the challenges and the wild cards that remain for home buyers this year.
Good news: Mortgage rates drop to a one-year low
Finally, some relief: In the week ending Aug. 15, 30-year mortgage rates dropped to an average 6.28%, their lowest weekly average since February 2023. That’s welcome news for shoppers who have felt burned by high rates — or maybe even put their house hunt on ice until the cost of borrowing cooled down.
Over the past two years, buyers have been at the mercy of mortgage rates’ meteoric rise, holding on as the average 30-year fixed rate climbed from 3% to nearly 7% in 2022. In October 2023, rates topped 8% for the first time since 2000 — a surprise even many top economists didn’t predict. Higher interest rates make it more expensive to get a mortgage.
To put that in perspective: Let’s say you can afford $1,800 per month in principal and interest. At a 7% interest rate, you could afford to borrow $270,600. But at a 6% interest rate, you could afford to borrow $300,200 — nearly $30,000 more — for the same amount per month. When interest rates go down, home shoppers’ purchasing power goes up.
For now, economic signals suggest more positive news for buyers in the latter half of 2024. Dan Moralez, regional vice president at Dart Bank in Holland, Michigan, points to a cooling economy and a potential cut to the federal funds rate. “All of that stuff really lends itself to mortgage rates getting better and the cost to borrow getting cheaper, which is really good for those people who have maybe sat on the sidelines hoping to see rates get better,” Moralez says.
More good news: It’s nearly certain the Federal Reserve will cut the federal funds rate by at least 25 basis points at its next meeting Sept. 17-18, according to CME Group’s FedWatch tool. (A basis point is one one-hundredth of one percent.) While the Fed doesn’t set mortgage rates directly, the federal funds rate influences the cost of long-term loans, including mortgages.
Your strategy: If you’re ready to buy, jump in now
A potential Fed rate cut is welcome news, but in the meantime, it’s not a reason to put off your search. Changes take time to trickle down, so avoid the self-induced pressure of timing the market perfectly. Instead, focus on shopping within your budget right now.
Also: When rates go down, competition goes up — another reason there’s no time like the present to start house hunting.
Whichever way rates move in the remainder of 2024, you’ll save money if you shop around. Aim to get an estimate from at least three mortgage lenders. The Consumer Financial Protection Bureau estimates borrowers can save $100 per month (or more) this way. And look at the annual percentage rate, or APR, to understand the total cost of the loan, which includes fees and other charges.
One final tip about rates: Do your research before picking a mortgage lender with the flashiest discount. This year, some lenders have been advertising “buy now, refinance later” offers. Others are offering temporary buydowns, where the buyer’s effective monthly payment is reduced for a year (or a few). Each option could potentially save money, but Moralez says it could also be “smoke and mirrors” if the deal is offset by higher fees.
“It’s one of those things where I tell folks, ‘There’s no free lunch, OK?’” he says. “You know, somebody is paying for it somewhere.”
Good news: More inventory, less intense competition
Recently, the supply of homes for sale could be summed up in two words: Slim pickings.
But in June, shoppers got some good news: The number of existing homes for sale reached a four-year high, according to the National Association of Realtors (NAR). Nationwide, there was a 4.1-month supply of homes for sale, meaning it would take just over four months at the current pace for all properties to sell. The U.S. market hasn’t seen that much housing inventory since May 2020, when the supply was 4.5 months.
Demand still outpaces supply, but with more homes to choose from, buyers are less likely to encounter intense bidding wars reminiscent of the pandemic years. Houses for sale are getting fewer offers compared to last year, according to the NAR’s June 2024 Realtors Confidence Index, a survey of its members. In June, a home listed for sale received an average 2.9 offers, compared to 3.5 offers in June 2023.
Another sign of cooling competition: Houses are staying on the market longer. In June, 65% of homes sold in less than a month, compared to 75% at the same time last year. The median time on the market in June was 22 days, a full four days longer than June 2023, when the median time on the market was 18 days.
With pending home sales also on the rise in June, NAR Chief Economist Lawrence Yun says he expects to see even more houses getting listed ahead of typical seasonal declines in winter. “The rise in housing inventory is beginning to lead to more contract signings,” Yun said in a news release. “Multiple offers are less intense, and buyers are in a more favorable position.”
Your strategy: Cast a wide net
While an improvement from recent years, a 4.1-month supply of homes for sale is still technically a seller’s market. A balanced market has about a six-month supply of homes for sale; a buyer’s market has more than six months’ worth.
You can’t control who puts their house on the market, so in the meantime, focus on the options available now. Let go of the fantasy of finding the perfect home when a “good enough” home can get your foot in the door sooner. That’s especially true for first-time home buyers who are eager to build equity.
“Last year, we certainly didn’t have enough houses — and we still don’t,” says Ellie Kowalchik, a real estate agent who leads the Move2Team with Keller Williams Pinnacle Group in Cincinnati, Ohio. “Don’t wait until the spring to start looking.”
For now, maybe you expand your search to include condos or townhouses. Maybe you settle for fewer bathrooms or a dated interior. Keep your chin up — even if you have to tolerate less square footage or weird linoleum floors for a while, you’ll have equity to remodel or sell in a few years.
Still challenging: Home prices climb to record highs
While some aspects of homebuying have gotten easier as 2024 rolls on, one challenge remains: home prices. The sales price of existing homes has risen for 12 straight months, according to the NAR. In June, the national median sales price hit a record high of $426,900.
As more inventory hits the market, though, the degree of home price growth has slowed somewhat over the summer, according to an August 2024 report from ICE Mortgage Technology. Still, if you compare the cost of buying a house to the median household income, July 2024 was one of the least affordable months to buy a home in more than three decades. Why? Home prices are growing faster than wages, and on top of that, high mortgage rates increase the cost of borrowing.
Until supply catches up to demand, prices are unlikely to fall. Realtor.com estimates prices will fall less than 2% by the end of 2024. No one can predict exactly what the market will do, but if you’re an optimist, there’s reason to be hopeful that prices are reaching a plateau.
“Even as the median home price reached a new record high, further large accelerations are unlikely,” Yun said in a press release. “Supply and demand dynamics are nearing a balanced market condition.”
That’s another reason to jump in now: A big drop in prices could trigger more competition.
Your strategy: Make a budget and stick to it
If you’re Zillow-stalking houses you can’t afford, stop. Instead, channel that energy toward your plan to shop for a house in real life — starting with setting a realistic budget.
First, talk to a financial advisor or use an online calculator to see how much house you can afford. Understand how mortgage lenders will determine your eligibility, including analyzing your credit score, cash savings and monthly debt payments.
Next, find a buyer’s agent who knows how far your budget can go in your local market. An experienced agent can advocate for you and help you snag a good deal.
Wild card: Changes to real estate commissions
One of the year’s biggest shakeups has been a major legal settlement with the NAR, which changes the way your buyer’s agent gets paid. While the NAR admitted to no wrongdoing, it will pay $418 million to settle more than a dozen antitrust lawsuits accusing the organization of enforcing rules that inflated real estate commissions. These changes take effect Aug. 17.
Previously, home sellers generally set the agents’ commission — typically 5% to 6% of the home sale price that was then split between the buyer’s and seller’s agent. Now, a new system is in place: You’ll have to sign a contract with your buyer’s agent, which spells out the terms of how they get paid.
For now, many real estate brokerages will likely stick with the familiar commission structure of a percentage of the sales price. But the settlement opens the door for new ways for agents to get paid, such as a flat fee or an hourly rate. Time will tell what becomes the new standard.
Your strategy: Brush up on your negotiating skills
When hiring a buyer’s agent, be polite but firm when negotiating. If the commission is more than you want to spend, ask if the agent would be willing to lower it. Point out any fees you don’t understand. And if you still aren’t comfortable with the terms, it’s OK to shop around or walk away.
While the new rules are more complex, they also give you, the buyer, more leverage in negotiating for your best interests. Buying a home is a big journey, and when you sign that contract with a buyer’s agent, you should feel supported and empowered about the business relationship that lies ahead.
The bottom line: Set realistic expectations
Things are looking better compared to the beginning of this year, but if you haven’t found a house yet, it’s fair to feel bummed out about high costs and complexity.
The solution: Think long-term. Holding out for lower rates or “perfect” buying conditions likely means you’ll face steeper prices and more competition. So if you’re determined to buy, find a place that suits your needs and budget as-is. Expecting perfection often means setting yourself up for disappointment.
“Sometimes I have clients that think they’re going to hit a home run the very first house they buy,” Moralez says. “And a lot of times I tell clients, well, sometimes it’s OK to be happy just getting on base.”