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Purchasing a home is one thing, but purchasing a luxury home is a project at a different level. And if you’re planning to take out a $700,000 mortgage — one that’s just shy of the 2024 conforming loan limit of $766,550 — you’re going to need some pretty serious income to repay that debt. We’re talking about an annual income of around $180,000 – $200,000.

When it comes to qualifying for a mortgage, it’s more than just income that matters — and there’s no one-size-fits-all answer to the question, “What income do I need for a $700K mortgage?” That said, there are some important rules of thumb around how much of your income should be spent on a mortgage that can help you determine what’s appropriate for your income — and other factors that mortgage lenders look at during the qualification process.

Income Needed for a $700,000 Mortgage

Again, there’s no set income level required for a $700,000 mortgage — but a mortgage that large is likely to have a hefty monthly payment, which means you’ll need some decent cash flow to be able to make it work.

One rule of thumb states that your housing costs should be no more than 30% of your gross monthly income — that is, your income before taxes or any other deductions. We can use this rule to estimate how much income you need to make a $700,000 mortgage payment feasible.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

How Much Do You Need to Make to Get a $700K Mortgage?

Let’s start by using a mortgage calculator to get a rough estimate of how much money per month a $700,000 mortgage will cost.

To create an example, we’ll assume the property value is $750,000, and that you start out with a $50,000 down payment. While your interest rate will vary depending on factors like market conditions and your credit score, we’ll put it at 7.00%, which is fairly typical as of the second quarter of 2024.

Plugging those numbers into the calculator, you’ll see that the estimated monthly payment comes out to about $4,657 per month. To make our 30% rule above even simpler, we can multiply that total by three to get a low-end ballpark income that’s appropriate for a payment that large. That figure comes to around $170,000 per year. Keep in mind, though, that this figure doesn’t include taxes and insurance, which can add an appreciable amount to that monthly bill. And if you’re putting down a smaller down payment, you’ll also have to pay private mortgage insurance (PMI). Add all that to the mix and you’re looking at an annual income requirement that is closer to $180,000 – $200,000.

For many Americans, that income requirement probably sounds pretty hefty: Per the most recent Census data from 2022, the median household income in the United States is $74,580. (Of course, exact income and cost-of-living figures vary by state.) Still, such a large loan may be within reach for some households — though it’s not just income that matters.

Recommended: The Best Affordable Places to Live by State

What Determines How Much House You Can Afford?

Income is obviously an important part of what qualifies you for a mortgage. After all, lenders are interested in your being able to repay the loan over time. However, your ability to earn enough money to support the payment is only one factor that goes into their overall assessment. While each lender has its own specific requirements and criteria, they all look at similar factors.

What Mortgage Lenders Look For

Some of the factors lenders consider when qualifying a borrower for a mortgage include:

•   Income

•   Job stability

•   Credit history and credit score

•   Existing debt

•   Existing assets, such as bank and investment accounts

•   Money available for down payment

To verify all this information, your mortgage loan officer will likely ask for documentation including your tax returns, W-2s, pay stubs, bank statements, and potentially more. Speak with your loan officer directly to learn exactly what you’ll need to submit as part of the mortgage preapproval process.

What Is a Good Debt-to-Income Ratio?

Let’s take a closer look at one very important part of your mortgage application: your debt-to-income (DTI) ratio. This important measurement is expressed as a percentage, and shows lenders how the debt you already carry compares to your available monthly income. It’s calculated by dividing your monthly debts over your gross monthly income.

While, again, specific requirements vary, most lenders require a DTI of 36% or lower, though in some cases borrowers can be qualified with a DTI of up to 50%. Generally speaking, though, the lower your DTI, the better; even if you can qualify with a higher amount of debt, it’ll be more difficult to make your monthly payments.

$700,000 Mortgage Breakdown Examples

As we’ve seen above, in order to qualify for a $700,000 mortgage loan, you’ll likely need a household income of at least about $180,000 per year — although again, whether or not you qualify will depend on many factors aside from your income, like your credit score and existing level of debt.

One way to get a good sense of how much house you can afford at your current income level is to use a home affordability calculator. If you toggle the “advanced” settings, you can also include costs like homeowners insurance and property taxes along with your income and existing debts. The calculator will spit out an estimate of how much house you can afford given all these circumstances — but remember, again, that this is only an estimate and not a guarantee.

Pros and Cons of a $700,000 Mortgage

Like any financial product (and anything in life), a $700,000 mortgage has both drawbacks and benefits to consider. Here are a few to keep in mind.

Pros of a $700,000 Mortgage

•   Home appreciation may pay for the amount you spend in interest and prove a worthwhile investment

•   Home ownership offers stability

•   If you make timely payments, your mortgage could reflect positively on your credit history — and boost your credit score over time

Cons of a $700,000 Mortgage

•   A mortgage is still a form of debt, and you will pay for the loan in the form of interest

•   When you own your home, you’re responsible for any and all maintenance and repairs — which isn’t true for those who rent

•   Depending on your interest rate, you may end up paying far more than the original home price over the loan’s lifetime

How Much Will You Need for a Down Payment?

There’s an old rule of thumb that states you should save up at least 20% of the home’s purchase price for a down payment. On a property listed for more than $700,000, that would come out to at least $140,000 — a pretty sizable chunk of change to save up!

However, these days, even conventional loans allow some first-time borrowers to put down as little as 3.00% on their home purchase — which, in this case, comes out to a far more reasonable $21,000. There is a caveat to be aware of, though: Borrowers who put down less than 20% will likely be required to pay PMI, which can add a few hundred dollars a month to your mortgage payment. Still, for those who have the cash flow to support this additional cost, it can be a worthy trade for earlier access to homeownership.

Can You Buy a $700K Home With No Money Down?

Some mortgage programs do allow borrowers to take out a mortgage with no money down — though you may have to meet certain eligibility requirements to qualify. For example, government-backed loans from the U.S. Veterans Administration (VA) and U.S. Department of Agriculture (USDA) loans don’t have a minimum required down payment, though these are only available to service members, veterans, and their families or to those looking in designated rural areas, respectively.

Is a $700K Mortgage With No Down Payment a Good Idea?

Even if you do qualify for a $700,000 mortgage with no down payment, it may not be the best idea financially speaking. Along with potentially being on the hook for the additional expense of mortgage insurance, you’ll start out with very low equity in your new investment, and your monthly payments may be substantially higher than they would be otherwise.

Can You Buy a $700K Home With a Small Down Payment?

Short answer: Maybe! As we’ve discussed, your ability to qualify for a mortgage is multifactorial, and the size of your down payment is only one of the many pieces mortgage lenders will consider. If the rest of your application is solid, a lender may qualify you for a $700,000 mortgage with a down payment as low as 3.00% ($21,000) if you’re a first-time homebuyer. Again, though, the only way to know for sure is to actually apply.

Can’t Afford a $700K Mortgage With No Down Payment?

If you’re not yet in financial shape to afford a $700,000 mortgage, or the process of saving up a down payment is getting you, well, down, there are steps you can take to get ready to make the purchase.

Pay Off Debt

It may be one of the most common tips to qualify for a mortgage — but it’s for good reason. Having even a small amount of debt can seriously impact your buying power, so paying off what you can and lowering your DTI can go a long way toward making a larger mortgage possible.

Look into First-Time Homebuyer Programs

If you’re a first-time buyer, it’s worth looking into first-time buyer programs that may be able to help you with your down payment or qualify you for a mortgage when you might otherwise not. One of the best-known first-time homebuyer programs is the FHA mortgage, which is backed by the Federal Housing Administration and may help you qualify even with a lower credit score.

Build Up Credit

Along with lowering your overall debt, building up your credit score can also help you qualify for a lower interest rate — which, over the course of a 30-year loan, can translate to big savings. Even a percentage point difference could save you thousands of dollars in the long run, so taking the time to repair or strengthen your credit today may be a well-placed effort.

Start Budgeting

If you don’t yet have a budget, the time before you purchase a home is a great time to start one. After all, homeownership usually comes with its own slate of expenses, from repairs to maintenance items and more, so ensuring you know where your money is going will help you prepare to meet those financial needs. (And, in the meantime, you may find some areas where you can make cuts that will make the upfront expenses, like your down payment, more feasible.)

Recommended: Refinance Your Mortgage and Save

Alternatives to Conventional Mortgage Loans

While conventional mortgages are the most common — and one of the most affordable options for those who qualify — there are different types of mortgage loans to consider. For example, as discussed, if you’re a first-time homebuyer, you may be able to qualify for an FHA loan from the Federal Housing Administration, which helps buyers qualify with lower credit scores than a conventional loan requires.

USDA and VA loans are also viable options for those looking in rural areas or who are (or are married to) service members or veterans.

Mortgage Tips

Need more mortgage help? Visit a home loan help center to study up on everything from amortization to escrow.

The Takeaway

While it takes a higher income to qualify for (and successfully pay off) a $700,000 loan, for many borrowers, it’s within reach — especially once you’ve found the right lender. Getting a mortgage doesn’t only depend on your income. There are multiple factors in play and learning the right mix could land you in a new home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much income do I need for a $700K mortgage?

While there’s no one set income level that will automatically qualify you for a $700,000 mortgage, using the rule of thumb that your housing payment should be no more than a third of your gross monthly income, you’ll likely need somewhere between $180,000 and $200,000 per year to qualify, depending on other factors like your interest rate.

What is the monthly payment on a $700K mortgage?

Specific payment amounts depend on a wide range of factors including the interest rate you qualify for, the property taxes in your location, and the size of your down payment. In an example where you’re purchasing a $750,000 home with a $50,000 down payment at a 7.00% interest rate, your monthly payment would be close to $4,700 before insurance or taxes.

Can I afford a million-dollar home if I make $100K?

Again, how much money you make is only one factor that qualifies you for a mortgage — no matter its size. That said, because of the size of the monthly payment of a large mortgage, a $100,000 salary likely wouldn’t be enough to get you into a million-dollar home.

Photo credit: iStock/DMP

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SOHL-Q224-1843070-V1

Source: sofi.com

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Want to know what the best businesses that run themselves are? Have you ever dreamed of having a business that runs by itself? Whether you want extra income or a full-time job, these businesses make money without needing you all the time. Having a business that runs itself means more time for you to do…

Want to know what the best businesses that run themselves are?

Have you ever dreamed of having a business that runs by itself? Whether you want extra income or a full-time job, these businesses make money without needing you all the time.

Having a business that runs itself means more time for you to do what you love. This could be more family time, traveling, pursuing passions, or starting another venture. These kinds of businesses are perfect for making your dreams a reality.

Now, that doesn’t mean that all of the businesses below will require zero hours of work from you – they will need varying amounts of time dedicated to them. Maybe some time in the beginning to get it started, some time to maintain it, or even hiring an employee to keep it going or check in occasionally.

Recommended reading: 18 Passive Income Ideas To Earn $1,000+ Each Month

Businesses That Run Themselves

Below are the best businesses that run themselves.

1. Self-service laundromat

A laundromat business can be a great business idea if you want something that mostly runs itself.

With the right setup, you might only need to check in occasionally. Laundromats can give you a steady source of income because people always need clean clothes.

The day-to-day operations of a laundromat include opening the business up in the morning, maintaining machines (the washers and dryers) and keeping the business clean, stocking detergents, and having someone handle the finances. The average self-service laundromat has 2 employees or less, so this is a business where you can outsource that job even.

Running a laundromat can be rewarding and mostly hands-off, making it a popular choice among business owners. If you’re looking for a steady income with minimal daily effort, this could be the option for you.

Recommended reading: Are Laundromats Profitable? How Much Do Laundromats Make?

2. Sell printables

Digital products, such as printables, can be a great way to have a business that runs itself.

Making printables on Etsy can be a great idea because you just need to create one digital file per product, which you can then sell an unlimited number of times. This is what makes it a great passive income opportunity, plus, you can make printables without anything other than just your laptop/computer and internet connection.

Printables are digital products that customers can download and print themselves at home. Examples of printables include:

  • Grocery shopping checklists
  • Gift tags
  • Candy bar wrappers
  • Printable quotes for wall art
  • Patterns
  • Planners
  • Coloring sheets
  • Stickers

These items are designed to be easily printed from a computer or other devices, being convenient for buyers who want to customize and use them right away.

Recommended reading: How I Make Money Selling Printables On Etsy

Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.

3. Blogging

Blogging can be a business that runs itself mostly, but it’s not passive, especially at the beginning. It requires a lot of hard work and can take up most of your time when you’re starting out. Over the years, I’ve automated much of my blog so that it runs with about 10 hours of maintenance from me each week.

Starting a successful blog is challenging – it’s not something everyone can easily do!

That said, learning how to start a blog has been one of the best decisions I’ve made. It’s a great way to earn semi-passive income and extra money.

I think it’s one of the best businesses that run themselves, and it’s something that I have been doing for years. I can take weeks off at a time and still earn a great income during that time.

Blogging can generate passive income because you can create a blog post (high-quality content is key) and continue to earn money from it for years. This income can come from affiliate marketing or display advertising. Unlike traditional jobs where you have to work daily to earn money, a blog allows you to make money around the clock – even while you sleep – thanks to the work you’ve already done in the past.

I have a free training that you can take – How To Start A Blog FREE Course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.

4. Affiliate marketing

Affiliate marketing is a great way to make money with a business that mostly runs itself and can make money in your sleep.

Among these businesses that practically run themselves, this one is my favorite. I’ve earned more than $2,000,000 through affiliate marketing over the years, and much of it is semi-passive. I can earn money while I’m on vacation, without internet, while I’m sleeping, and more.

Affiliate marketing is when you earn money by placing a special link on your website or social media. When people buy something through your link, you get a commission. For example, if you link to a book on Amazon (after joining the Amazon affiliate program) from your website and someone buys it through your link, you earn a commission. Companies like Amazon value good affiliates because they help promote their products and services.

You earn a commission by promoting other companies’ products or services. When someone buys through your link, you get paid.

Now, this doesn’t mean that affiliate marketing completely runs itself. You will need to write the content that draws readers in and find ways to get page views. But, once you get things started, you can earn money without always actively working for it.

Recommended reading: Affiliate Marketing Tips For Beginners – Free eBook

5. Rental real estate and rental properties

Being a property owner and managing properties can be a great way to run a business that makes money on its own.

One way to earn extra money is by listing your property on Airbnb or another short-term rental platform. You can rent out your entire house, apartment, or just a room to travelers looking for short stays.

Another way to earn money is through long-term rentals. Long-term rentals involve renting out a property for an extended period, typically six months to a year or more. For example, you might rent out an apartment or house to a family who will live there full-time.

One advantage of long-term rentals is the stable and consistent income they provide. By leasing your property to tenants for a longer duration, you establish a steady stream of rental payments. This reliability can be particularly appealing for those seeking a reliable source of passive income. Plus, managing a long-term rental is usually less demanding than a short-term rental since you don’t need to clean the property frequently or find new renters regularly.

Whether you rent out your property short-term or long-term, you can lessen your involvement by hiring a property manager to do any of the day-to-day work that may be needed. This can make your rental property business more of a hands-off business model.

Recommended reading: 23 Best Real Estate Side Hustles To Make Extra Money

6. Online courses

Creating and selling online courses can be a great way to earn passive income. Once you develop the content and put it on a platform like Teachable, it mostly takes care of itself.

With an online course, you share what you know with others. Maybe you’re good at math, photography, or playing guitar. You can turn those skills into a course.

Creating online courses is a smart way to take what you know and turn it into a business that runs almost by itself. It can be fun too, and you can help a lot of people at once.

I created Making Sense of Affiliate Marketing, my first online course, several years ago and have earned over $2,000,000 from it.

Creating a course is not the easiest way to start a business that runs itself, but it can be a great way to earn an income around the clock. Most of the work is done in the very beginning, and then there is some maintenance along the way to keep the course updated, help students, and so on.

Recommended reading: How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.

7. Storage facility

Running a storage facility is a great way to have a business that can largely manage itself. Plus, this can be a steady income stream, and many storage facilities have long waiting lists and are in high demand.

Self-storage facilities are places where people store their belongings, like boxes of their keepsakes, vehicles, RVs, and more, in storage units or in a big lot.

Owning a self-storage business can be a way to earn money with low expenses. These businesses usually only need a couple of employees.

Often, when I visit a self-storage lot, it’s just the owner or one employee working, and there are very few customers around. Sometimes, no one is working and I just use a code to go in and out.

Another idea similar to this is to rent out your storage space on Neighbor.

Neighbor.com is a platform where you can rent out your space to people who need storage for their belongings such as boxes, furniture, and even cars. You can list spaces like your driveway, garage, closet, and more on Neighbor.com. It’s similar to Airbnb but for storage – no one stays overnight, just their belongings! Depending on demand in your area and the type of storage space you have, you can earn between $100 to $400 or more each month.

Recommended reading: How To Invest In Self-Storage For Beginners

8. Stock photography

Stock photography is a great way to start a business that will eventually run itself. With this type of business, you take photos and upload them to stock photo websites. When someone buys your photo, you get paid.

Once your photos are online, they can sell again and again too.

Stock photos have many different purposes for websites, companies, blogs, and more. Businesses use stock photos because they may not have the resources to photograph everything they need. Instead, they can use stock photos to improve the visual appeal of their content, website, or business.

I personally use stock photos in my blog posts, as do many others. All the photos in this article are stock photos, actually.

There are several well-known stock photo websites such as Shutterstock, iStock by Getty Images, Adobe Stock, and Dreamstime.

To sell photos on these sites, you’ll need to create a contributor account and upload your images following the site’s rules. Each time someone downloads your photos, you earn a commission.

On stock photo websites, having high-quality photos is very important, but having a larger portfolio also matters. The more pictures you have in your stock photo collection, the more potential income you can generate.

Recommended reading: 18 Ways To Get Paid To Take Pictures

9. Car washes

Running a car wash business can be a great way to earn money with minimal effort. Automatic and self-serve car washes are especially popular because they require less work to manage day-to-day.

A self-service car wash is a place where customers pay to use equipment to wash their own cars.

An automatic car wash is a place where customers drive through a tunnel where machines do all the cleaning.

Starting a car wash can be cost-effective over time. The equipment can handle many customers with little human help. You just need to check the machines and refill supplies.

10. Write ebooks

Creating ebooks can be a great way to generate passive income streams. Once you write and publish an ebook, it can keep earning you money with very little effort.

Writing a book can provide passive income because you only need to write it once, yet you can continue to earn money from it for years. While you may need to do some promotion to keep readers engaged, the writing itself is a one-time effort. This makes it possible for the income to be passive over time.

Plus, you can start by self-publishing an ebook and selling it directly on Amazon or on your own website.

11. Dropshipping

Dropshipping is a popular business model that lets you sell products without keeping any inventory. You simply partner with a supplier who ships the items directly to your customers.

Dropshipping can be a great choice because there are low start-up costs as you don’t need to buy stock or rent a warehouse. This keeps costs down at the beginning.

Plus, there’s a lot of flexibility. You can run your dropshipping business from anywhere with an internet connection. This makes it perfect for those who like to travel or work from home.

There are many different things you can sell in a dropshipping business, such as T-shirts (you could even have a print-on-demand business), home decor, mugs, kitchen tools, pet supplies, and baby items.

12. Run a membership website

Membership websites are a great way to run a business that can almost take care of itself. These are websites where people pay regularly to access exclusive content or services.

Now, these will require work and some maintenance. But, you can earn recurring income 24/7, without actively needing to work.

Plus, as more people join, your income grows without adding lots more work.

Some examples of membership sites can include running a Patreon for your YouTube channel, a stock photo membership site, a paid forum, and an online school.

13. ATM business

If you want a low-maintenance business idea that almost runs itself, you may want to look into ATMs.

ATMs can be great because they don’t need much daily work. Once set up, you just need to check them regularly and refill cash.

To start, you’ll need one or more ATM machines (these typically cost around $2,000 to $10,000), you’ll need to find locations (such as convenience stores, malls, gas stations, etc.), set up the ATM (connect it to a network), and monitor and maintain it.

You would earn money through the ATM transaction fees that people are charged when they withdraw money.

Using ATMs can be a good way to make extra money without a lot of effort. They need some work at first but can become a reliable source of income.

14. Parking lots

Parking lots can be great businesses that mostly run themselves.

People always need places to park, such as in cities, near popular venues, at airports, and at shopping centers. If you can find a good location, your parking lot can bring in steady income without much daily work from you.

To get started, all you need is a plot of land. You can set up pay stations to handle money collection. Some lots even use apps for payments, making the process easier for everyone.

And, with the right setup, you can keep things running smoothly with just occasional cleaning and repairs.

15. App development

If you have technical skills, developing and selling an app can be a way to start a business that operates autonomously.

Creating your own app, whether it’s a useful tool, a fun game, or something else, can be profitable.

Although it requires initial effort and investment, once your app is available in app stores, it can generate revenue around the clock through in-app purchases or with the initial download.

You can create mobile apps like a budget tracker, meal planner, fitness tracker, meditation guide, travel planner, and others that cater to specific needs or interests.

16. Billboards

A billboard business is a great way to make passive income. Once set up, it needs little maintenance. You can rent the advertising space to companies for their ads.

Now, building new billboards isn’t allowed everywhere, but in many places, you can still add them onto your own land or buy one that already exists. You’ll want to check local laws to know more before you begin.

Billboards require minimal upkeep, which makes it a great business that runs itself. Regular checks and occasional repairs are needed. Digital billboards need more maintenance, but they can display multiple ads and increase income.

17. Sell on Amazon

Amazon FBA (Fulfillment by Amazon) allows sellers to store their products in Amazon’s warehouses. Amazon takes care of shipping to customers, handling returns, and managing customer service for the seller. This setup frees sellers from storing inventory or dealing with shipping logistics.

While you still need to find products to sell, Amazon FBA makes it possible for anyone, even without experience, to earn money selling items like household goods, toys, books, electronics, and more through their platform.

Recommended reading: How To Work From Home Selling On Amazon FBA

18. Vending machine business

A vending machine business can be a great way to earn passive income. With some initial investment and a bit of planning, you can start making money with minimal effort. Vending machines typically need minimal upkeep and the hours are low.

You can start with as little as $1,500 to $3,000, and even buy used or refurbished vending machines to save money.

Vending machines can be placed in high-traffic areas (with permission and an agreement, of course), such as schools, offices, gyms, hospitals, and more. You may need to pay 5% to 25% of your earnings to use their space.

Vending machines run on their own for the most part. You will have to refill the machines regularly and make any needed repairs.

A vending machine business can be a smart way to generate passive income while requiring little hands-on work. With the right location and products, you can see steady profits.

Recommended reading: How To Start A Vending Machine Business – How I Make $7,000 Monthly

Frequently Asked Questions

If you are thinking about having a self-running business, here are some common questions and helpful answers that might guide you in the right direction.

How can I start a business that doesn’t need me to be there all the time?

To start a business that doesn’t need you to be there all the time, I recommend finding a business model that can be easily automated. Examples include online stores using dropshipping or print-on-demand services. These models let you automate order processing and inventory management, reducing your need to be involved in daily operations. Other businesses include running a laundromat, selling printables on Etsy, blogging, rental real estate, and stock photography.

What are some top businesses known for making money while the owner sleeps?

The best businesses known for making money while the owner sleeps include rental real estate, blogging, stock photography, dropshipping, ATMs, developing an app, and selling an online course. These businesses have systems in place that handle most tasks automatically, allowing you to earn money with minimal hands-on management.

How to have a business that runs itself?

To have a business that runs itself, you need to try something like vending machines, ATMs, blogging, stock photography, dropshipping, and more. Then, you can either automate as much as you can, or outsource the hours where something needs to be done (such as refilling the vending machine).

What is the easiest business to start and run?

Among the easiest businesses to start are online stores using dropshipping, vending machines, and digital products like printables. These business ventures require low upfront investment and minimal ongoing management, making them accessible for beginners.

How do you find a self running business for sale?

To find a self-running business for sale, you can look for listings on business-for-sale websites or contact business brokers. Many websites list businesses for sale, such as BizBuySell and LoopNet. Always research and vet any business thoroughly before buying.

Businesses That Run Themselves – Summary

I hope you enjoyed this article on the best businesses that run themselves.

Self-sustaining business examples include online businesses like blogging and affiliate marketing, where you create content or promote products and enjoy passive income.

Even offline options like laundromats and car washes can be mostly self-sustaining, needing only occasional maintenance. Another good example is a vending machine business. You just put your machines in good spots and let them do the work.

Managing a rental business can be another way to have a business plan that doesn’t require a lot of active hours from you.

For me, I have a business that I work a low amount of hours and can run itself for the most part. I have automated a lot to make this possible, as well as have worked a lot of hours in the beginning. I love having a business that can run itself, as it means that I have more time for other things in life.

What do you think are the best businesses that run themselves?

Recommended reading:

Source: makingsenseofcents.com

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Salary vs. hourly pay are two ways that businesses classify workers, based on how and when their compensation is doled out. Hourly employees, as you might guess, are paid for every hour of work that they do. Salaried employees, on the other hand, receive a fixed amount of compensation in exchange for their labor, regardless of how long it takes.

There are pros and cons to each, both for employers and employees, and there are numerous rules and laws that can come into play as well. But it boils down to this: Hourly employees’ compensation is tied to the time worked, plus applicable overtime. Salaried employees get a fixed amount.

Recommended: Does Net Worth Include Home Equity

What Is An Hourly Rate?

An hourly rate is the set per-hour compensation a worker or employee earns in accordance with their employment contract. That hourly rate can be any number above the federal wage floor, or minimum wage, of $7.25 per hour.

The lowest that an hourly worker in the U.S. can earn is $2.13 per hour, as set by federal law, for workers who receive at least $30 per month in tips. No matter the amount, an hourly rate is how much an employee earns for one hour of work.

What Is a Salary Rate?

As mentioned, salaried employees earn a fixed amount regardless of how many hours they work. As such, a salary rate is what an employee would earn over a fixed amount of time, such as a traditional 40-hour workweek. Since we typically discuss salaries on a yearly basis (for example, Job X pays a salary of $50,000 per year), a salary rate could be $961.54 per week ($50,000 annual salary divided by 52 weeks in a year).

The big difference, when it comes to salaried workers, is that there is no potential to earn overtime for working more than the predetermined number of hours (usually 40) as specified by their employer and applicable laws.

As for what’s a good salary, there are several factors to consider. But if you want to find out what is a good entry-level salary, you can do some research into averages in your industry and geographic area to get an idea.

Recommended: The Highest Paying Jobs by State

Why Are Some Jobs Hourly and Others Salary?

Federal laws and regulations determine whether some jobs can be exempt from overtime pay rules — in other words, salaried. This is to protect some workers from being classified as salaried when they may end up working many more hours in a given week than the standard 40.

Depending on the state you live in, there may be additional rules that stipulate why a position may pay hourly vs. salary.

The Big Difference Between Salary vs Hourly Pay

It’s all about overtime. Whether or not a worker earns overtime pay is the single biggest difference between a salaried employee and one who is paid hourly. Overtime pay is paid out at a rate of 1.5 times the normal hourly rate, which is commonly phrased as “time and a half.”

Another way to describe salary vs. hourly pay is “exempt” vs. “non-exempt.” “Exempt,” in this sense, means exempt from overtime wages. Non-exempt employees are owed overtime wages for working more than 40 hours per week.

There are situations in which an employer may end up paying a salaried employee more for working more than 40 hours per week, but it depends on the specific agreement or contract between the two parties.

Additionally, salaried jobs tend to be more administrative, “professional,”or “white collar,” and may offer more or better benefits than hourly jobs. That’s not always the case, but if you’re climbing the corporate ladder and become a salaried employee, you may notice that the entire compensation package is a bit beefier than packages for hourly workers.

Salary Pay

As noted above, salaried employees earn a fixed amount regardless of how long they work. There are some obvious pros and cons to salaried positions, too:

Pros of Salary Pay

The clearest advantage of a salaried position is that an employee will earn the same amount of money during a given time period no matter how long they work. So, if they end up working 30 hours in one week, they still get paid the same as they would have if they worked 40.

Also, as discussed, salaried jobs often have better benefits, such as employer-sponsored health insurance and paid vacation days. Salaried jobs can also be a bit more secure than hourly positions, and may offer workers more opportunities for advancement.

Cons of Salary Pay

Salary pay can be double-edged: While you’ll be paid for 40 hours even if you work only 30, you’ll earn the same if you work 50 hours, too. There is no chance for overtime pay if you work more than a standard week. That can be a big drawback for some workers.

Similarly, depending on the specifics of the position, it may be harder to keep your personal and professional life separate. Salaried positions may provide more benefits and job security, but that comes at a cost of more demanding work that may encroach on your personal time.

Hourly Pay

Hourly workers earn their paycheck by the hour. That, like salaried positions, can have pros and cons as well:

Pros of Hourly Pay

It’s worth stating again: The biggest plus to an hourly job is that you are eligible to earn overtime pay. That doesn’t mean hourly workers always will get overtime — many employers go to great lengths to make sure that they don’t — but it’s a possibility. And that can help ensure that you’re not working 50- or 60-hour weeks, which may be more common for salaried employees.

Also, hourly workers may earn double their standard wages on certain days, like holidays. And depending on the industry, working overtime may be standard or expected. That can help push an hourly worker’s earnings above salaried workers’, in some circumstances.

Cons of Hourly Pay

A big disadvantage to hourly-paying jobs is that they can be less secure than salaried positions. Turnover can be high, for example, and if the economy takes a turn for the worse, hourly workers may see their hours reduced, or their positions furloughed or eliminated. Further, hourly jobs aren’t usually very flexible, and may not offer paid time off or sick days to workers, either.

Recommended: What Credit Score is Needed to Buy a Car

The Takeaway

Salaried workers receive a fixed paycheck regardless of the number of hours worked, whereas hourly workers are paid based on the number of hours they clocked. The big differentiator between the two is that salaried workers are not eligible for overtime pay, which is 50% more than their standard hourly rate. Each type of employment has its pros and cons, but usually, salaried positions are more secure.

Regardless of how you’re paid, it can be helpful to keep your finances in order by using a budget planner app, complete with a debt payoff planner to help you get ahead. That’s where SoFi enters the fray: Use it to track your spending, monitor your credit score, and more!

Looking to get a handle on your finances? SoFi’s money tracking app can help.

FAQ

Is it better to be paid a salary or an hourly rate?

Generally, salaried positions are often seen as more prestigious, and can offer more job security and benefits. Many workers feel it’s better to be paid a salary because one receives a predictable paycheck. But it ultimately depends on the position and the employee’s personal preferences.

What is the advantage of salary pay?

The biggest and most obvious advantage of salary pay is that you have a fixed paycheck coming your way no matter how much (or little) you worked during a given time period. Of course, that can be a disadvantage, too, if you regularly work more than 40 hours per week.

Which are the budget challenges of being a salaried employee?

Salaried employees are, in a sense, on a fixed income; they’re earning the same amount all through the year, and can’t go for a bigger paycheck by working overtime. If they don’t receive an annual raise annually, they may see their effective pay decline due to inflation, which can end up straining their budgets.

Photo credit: iStock/.shock

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

SORL0522020

Source: sofi.com

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Real estate technology firm Knock announced Thursday that its bridge loan product is being integrated into the borrower application process at Baltimore-based NFM Lending.

The bridge loan estimate is being integrated into the lender’s workflow through an Encompass plugin. NFM loan officers will be automatically notified when a homeowner can tap into the equity of their current home to buy a new one before selling.

The Knock option is available to loan officers and real estate agents in 22 states across the country, the company explained in its announcement. The product is designed to make buyer offers more attractive to sellers by removing contingencies. The financing can be used to make a down payment, pay down debt, or cover repairs and moving expenses.

“Over the past 18 months, Knock has become our go-to solution for helping homeowners compete and win in today’s housing market,” Bob Tyson, president and chief operating officer at NFM Lending, said in a statement.

“With so many of our lending officers turning to the Knock Bridge Loan as a financing solution, this integration will streamline the approval process. More importantly, it gives them another tool to differentiate themselves and provide more personalized and tailored service to their clients.”

According to Knock’s website, the company charges a fixed fee of 2.25% of the estimated list price of a client’s departing property, plus a closing fee that can vary based on the loan amount and state-specific regulations. The loan includes no interest for six months.

The Knock bridge loan also includes a “purchase guarantee,” meaning that Knock will buy the departing residence if it does not sell in timely fashion. The company claims that “the majority of our customers sell their home to someone other than Knock,” that 92% of its homes are on the market for less than 90 days, and that its average sale-to-list price has exceeded 100% over the past three years.

“NFM was the first to work with us when we gave lenders the added power of using our financing solution to help their clients access the money tied up in their current house to purchase their next home, and they are the perfect partner to launch our Encompass plugin with,” Knock co-founder and CEO Sean Black said in a statement.

“In today’s limited inventory, high interest rate environment, the biggest value a service provider can offer is helping homeowners get unstuck. The Knock Bridge Loan solves this problem by allowing homeowners to tap into the equity in their current home before they sell. They become more competitive buyers and can flip the process to move on their own terms.”

NFM Lending is licensed in 49 states and Washington, D.C. Its subsidiaries include Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans and Element Home Loans.

According to data from Scotsman Guide, NFM was the 21st-largest lender in the country last year, originating nearly 15,600 mortgages with an aggregate volume of $5.62 billion.

Source: housingwire.com

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Amazon

,

Amazon

A dreamy pastel duvet cover set

The set comes with one duvet cover and two pillow shams — be sure to grab a duvet insert if you need it!

Promising review: “In the process of giving our bedroom a new makeover. Needed new bedding ASAP for our new mattress. I work 12–13 hours a night in healthcare; I’m exhausted and the last thing I want to do is shop. I took a chance with this duvet cover. Couldn’t beat the price! If I could give the quality and comfort of this duvet cover and pillowcases 10 stars, I would!! Definitely a great buy at an extremely affordable price. The quality exceeded my expectations. It is so soft, true to size and color, wrinkle-free, and has a well-made zipper at the bottom. There are also ties on the inside to keep your duvet in place. I absolutely LOVE everything about this cover. Can’t wait to get home in my bed after a long, exhausting work shift on my feet. My furbaby loves it too! Thanks Amazon for simplifying my life! ❤️” —Theresa

Source: huffpost.com

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Categories

Real Estate

June 19, 2024
by Mark Ferguson

Finding an affordable city to buy a house can be challenging. Getting a good deal is key to my investing strategy. To help you find the best investment opportunities, here’s a list of the top ten most affordable large cities to buy houses in the US. These cities offer not only affordable housing but also promising growth prospects and quality of life.

To measure, we’ll look at housing prices and wages.

Table of Contents

Overview

Of course, a low price doesn’t necessarily mean a great deal. To learn more about finding great deals, check out my Master the Deal course.

This data is from May 2024 and comes from National Association of Realtors (NAR), the Zillow Home Value Index, U.S. Census Bureau, Local Economic Development Reports, and the U.S. Bureau of Labor Statistics (BLS).

There are many smaller towns that are even more affordable in many areas of the country. It may surprise many people but people making lower wages actuallty have a better shot of buying a house than many who make much more in expensive areas.

Top Ten Most Affordable Cities (Wages and House Prices)

1. Detroit, Michigan

Detroit has been making a remarkable comeback over the past decade. The city is known for its affordable housing market, with the median home price around $70,000.

The median wage in Detroit is approximately $36,000.

With ongoing revitalization projects and a growing tech scene, Detroit is becoming an attractive option for first-time homebuyers and investors alike.

2. Cleveland, Ohio

Cleveland offers a blend of affordable housing and vibrant cultural life. The median home price in Cleveland is approximately $85,000.

The median wage in Cleveland is around $38,000.

The city’s diverse economy, driven by healthcare, education, and manufacturing sectors, makes it a target for real estate investment.

3. Pittsburgh, Pennsylvania

Pittsburgh is another city where affordability meets opportunity, with a median home price of about $150,000.

The median wage in Pittsburgh is approximately $42,000.

Pittsburgh provides a strong job market, particularly in technology, healthcare, and education. The city’s rich history and growing infrastructure add to its appeal.

4. Indianapolis, Indiana

Indianapolis combines affordability with a high quality of life. The median home price is around $175,000.

The median wage in Indianapolis is about $44,000.

The city is known for its strong job market, excellent schools, and vibrant cultural scene. Indianapolis may be ideal for families and investors seeking long-term growth.

5. Buffalo, New York

Buffalo is experiencing a resurgence, with a median home price of approximately $130,000.

The median wage in Buffalo is around $40,000.

The city’s affordable cost of living, coupled with its robust job market in healthcare and education, makes it an attractive place for homebuyers.

6. Memphis, Tennessee

Memphis offers an affordable housing market with a median home price of about $120,000.

The median wage in Memphis is approximately $37,000.

Known for its rich musical heritage and vibrant culture, Memphis also boasts a strong economy driven by transportation, healthcare, and education sectors.

7. Birmingham, Alabama

Birmingham combines affordability with economic growth. The median home price is around $160,000.

The median wage in Birmingham is about $38,000.

The city’s economy is diverse, with strong sectors in finance, healthcare, and manufacturing. Birmingham’s southern charm and historical significance make it a desirable place to live.

8. Kansas City, Missouri

Kansas City offers affordable housing with a median home price of approximately $190,000.

The median wage in Kansas City is around $45,000.

The city is known for its robust job market, particularly in the finance, healthcare, and engineering sectors. Kansas City’s thriving arts scene and friendly community add to its appeal.

9. Oklahoma City, Oklahoma

Oklahoma City provides affordable housing with a median home price of about $160,000.

The median wage in Oklahoma City is approximately $40,000.

The city has a growing economy driven by energy, aerospace, and biotechnology industries. Oklahoma City’s low cost of living and family-friendly environment make it an excellent place to buy a home.

10. St. Louis, Missouri

St. Louis rounds out our list with a median home price of around $150,000.

The median wage in St. Louis is about $41,000.

The city offers a diverse economy with strong healthcare, education, and manufacturing sectors. St. Louis’ rich history, cultural attractions, and affordable housing market make it an interesting place to invest.

This table summarizes the information here. The Affordability Ratio is the wages divided by home price. The higher the Affordability Ratio, the more affordable.

City Median Home Price Median Wage Affordability Ratio
Detroit, Michigan $70,000 $36,000 0.51
Cleveland, Ohio $85,000 $38,000 0.45
Buffalo, New York $130,000 $40,000 0.31
Memphis, Tennessee $120,000 $37,000 0.31
Pittsburgh, Pennsylvania $150,000 $42,000 0.28
St. Louis, Missouri $150,000 $41,000 0.27
Indianapolis, Indiana $175,000 $44,000 0.25
Oklahoma City, Oklahoma $160,000 $40,000 0.25
Birmingham, Alabama $160,000 $38,000 0.24
Kansas City, Missouri $190,000 $45,000 0.24

Conclusion

These ten cities offer some of the most affordable housing markets in the US, each with its unique blend of economic opportunities, cultural attractions, and quality of life. Whether you are a first-time homebuyer or an investor looking for promising real estate markets, these cities provide a great starting point.

What do you think of this list? Let me know in the comments below.

Source: investfourmore.com

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Real estate investment trust Redwood Trust is expected to close on Tuesday on the offering of $85 million in debt, following on the heels of other companies in this space. Analysts say the resources could be used to buy back other outstanding notes or improve the company’s cash position in the near term. 

Redwood’s unsecured debt consists of senior notes due in 2029 that pay 9% annually. The offering can be increased by $12.75 million in aggregate principal amount available for 30 days to cover over-allotments.

The company said the proceeds of the debt offering are expected to fund, among other things, the firm’s residential lending business, the acquisition of mortgage-backed securities (MBS), and strategic acquisitions and investments. 

It can also repay indebtedness, such as a subsidiary’s 5.75% exchangeable senior notes due in 2025 and Redwood’s 7.75% convertible senior notes due in 2027.

BTIG analysts Eric Hagen and Jake Katsikas estimate that the debt offering will bring the company’s total unsecured debt stack to $850 million, supported by about $1 billion in stockholder equity.

According to the analysts, at wider spreads, the company “could look to buy back its 2025 and 2026 notes with a portion of the proceeds.”

In the near term, however, the analysts expect Redwood’s leadership to “opportunistically keep a higher cash balance,” mainly because a new facility will provide $150 million in borrowing capacity. 

Morgan Stanley; Goldman Sachs; RBC Capital Markets; Wells Fargo Securities; Keefe, Bruyette & Woods; and Piper Sandler were the book-running managers for the offering. The notes, which had an investment grade rating of BBB from Egan-Jones Ratings Co., are expected to be listed on the New York Stock Exchange. 

Other companies in the space have also recently issued or are about to issue debt.

loanDepot plans to extend its $497.8 million in senior notes due in the fourth quarter of 2025. Mr. Cooper issued senior notes to qualified investors in January that will mature in 2032 and bear interest at 7.125% per year.

In addition, Pennymac issued new debt last year that will mature in December 2029 and pay 7.875% annually. And Rithm Capital priced an offering of $775 million in aggregate principal of senior unsecured notes due in 2029 at 8% per year.

Source: housingwire.com

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This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

For many people, budgeting can be really tedious, and feel like it traps their freedom and spirit. While there are plenty of advantages of budgeting, it is nice to have one area of free-spending with money.

That is where a slush fund comes in.

A place to spend money with freedom and not worry about ruining your budget and the inability of not being able to reach your money goals.

When you work hard for your money, it is hard to be disciplined with your money every single step of the way.

You want to reward yourself and treat yourself! Specifically with no questions asked.

That is where the slush fund comes into play.

What is a Slush Fund?

The definition of slush money or pocket money is simple – money set aside to spend as you see fit.

A reserve of money set aside for an unknown and undetermined purpose.

Everyone will have their own meaning for their personal slush fund. That is because we all have ways we want to spend our little reserve of fun money.

And this one thing can save a marriage and many, many arguments!

Slush Fund Examples

Each person will have their own purposes for spending their fun money. Here are some slush fund examples:

  • Spa Treatments
  • Car Accessories
  • Lunch Dates
  • Helping others
  • Music or cable subscription
  • Golf outings
  • Happy hour fun
  • Crafting

Honestly, the best slush fund example is something both people do not want to include in their budget. It could be something they do not agree with, or the cost, or the need.

Did you know all of the names for the slush fund?!?! Call it what you want… the purpose is still the same:

  • Pocket Money
  • Spending Cash
  • Pocket Change
  • Allowance
  • Petty Cash
  • Kitty Fund
  • Chump change

Just pick your favorite name for it and understand it is money set aside to spend how you choose.

Regardless of what you call slush fund money, one meaning holds true.

It is a small amount of money earmarked for one person to spend as they choose.

How to Create a Slush Fund?

These are the four rules of slush fund money. It is not hard or difficult to create a slush fund.

You just need to decide in advance how a few line items we will cover shortly.

Nothing complicated. Pretty simple. You just need to follow them.

1. Agree on amount Given to Slush Fund

Every month or week a predetermined amount is given out for each person’s slush money. Remember, the slush fund meaning is their reserve of cash to spend or save as they deem fit.

In the Money Bliss Cents Plan, there are 3 lines dedicated to Slush Fund Money – His, Hers, and Kids.

Slush fund money is just as important for adults – probably more important than any age group.

Everyone in the household can have a little chump change to spend as they see fit. So many times, we hear of using pocket money for kids. However, very few people use it as adults.

2. Fun Spending Your Way – No Questions Asked

The biggest ground rule is no questions can be asked about how or why you spent your slush fund money in this or that way. Period.

Don’t test the boundaries. Respect the rule of no questions asked.

It is hard for a couple not to argue on every single line when they make a budget. So, agree on a slush fund amount and stop pestering the other party on how they spend their money.

3. Cash Only (Or Seperate Cashless Account)

Spending must be in cash. And cash only. At the very minimum, that chump change account is only used for your fun spending.

The temptation to overspend is way too great especially when it is spent on ourselves. Staying away from credit cards is necessary. Especially because it helps with #2 rule of no questions asked.

Here are great options to help you succeed:

4. No Judging

Human nature is quick to judge. Someone spent their money in a way you don’t agree with and you want to speak up to say something.

Not up to you to judge.

Slush money is meant for whatever you want to spend money on. This is not the time or place to be judging how to spend under $20-100 per month.

Plus – Don’t Be an Idiot

This isn’t the time or place to be sneaking behind your significant other’s back. If you are unable to honestly say how you spent the money, then you are on a slippery slope.

Honest and open communication is the key to success.

This isn’t an opportunity to start hiding your actions.

Bonus Tip for Kids –

***A side note on the Kid’s Slush Fund Money…this is how we introduce paying commissions to our kids for jobs done around the house.

That in itself is another post for another day. But, the same rule holds true, we can’t judge how they use their “spend” money.

Advantages of Slush Fund Money

There are many benefits of using a slush account when you are budgeting money. This is especially true at the beginning of your proper money management and budget journey.

You need freedom in your life if not you will be so constricted that you will not meet the smart financial goals you planned for yourself.

1. Agreed Upon Amount

First of all, the amount of money designated to each person’s slush fund money is set at the beginning of the month (or week). Everyone agreed to the budget, so no changing money in the funds.

Sit down and discuss what amount is doable based on your situation. This is based on your budget.

The key is to stick to the agreed amount of money. Use cash to stick to the agreed-upon amount.

2. No Arguments

Remember, no questions can be asked!

No judgments can be made!

A very simple way to steer clear of arguing. One person spends their money before the first week of the month is up – more power to them! Another person saves their slush fund money for a bigger purchase – high five!

There are bigger things to discuss in the journey to financial freedom than how someone spends their slush money.

Pick your battles.

Money is one of the leading causes of divorce. Save your marriage and use a slush fund account. That right there is one of the huge advantages of pocket money.

Related Post: How to Talk about Money with your Spouse

3. Breath of Fresh Air / Freedom

Many people find living in a budget or Cents Plan very constricting and overbearing.

This is why slush fund money is SO very important. It provides a breath of fresh air. A moment to spend money and not worry about the money spent.

Freedom to savor life’s little moments. Enjoy!

Especially if you are struggling to make ends meet, this is a big advantage of pocket money.

4. No Guilt

The last advantage of slush money is not carrying guilt. Regardless of how an adult decides to spend their pocket money, there is no guilty feeling about buying x, y, or z.

Remember rule #3 – no judging, you are free to purchase whatever your heart desires and not be overwhelmed by guilt.

Disadvantage of Slush Fund Money

After listing out all of the advantages of pocket money, you may be thinking there have to be disadvantages, right?

Honestly, the only disadvantage is it is one more category to track and separate out money.

However, that is menial given the advantages of slush money.

Related Post: Complete Guide to Sinking Funds; Why They are So Important?

Ready for Your Slush Account?

This is a key point to remember…

Regardless of where you are on your journey to Financial Freedom, slush fund money is utterly important.

The key to money is to build a strong foundation. That includes how you spend money, how you save money, and how you discuss money.

Even if you start at $5 or $10, you will begin to reap the benefits and advantages of pocket money. The small amount of money will change your perspective and how you relate to money.

As you get further in your journey, you can increase your slush amount to $100+ of fun money!

Just remember the rules of slush fund money in order to see the advantages in your household!

Further reading:

From all of the free and paid budgeting apps, here are our top budgeting apps to check out!

This section may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. Please read the full disclosure below.

Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss  for new leads. Money Bliss  is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

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Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Change your relationship with money!

Personal Capital is wealth management for the Internet Age. The online platform combines digital technology with highly personalized service to provide a holistic view of a unique financial picture (AKA your net worth). 

Make sure to connect all of your accounts within 7 days to set up your Personal Financial dashboard.

Tiller is the only tool that automatically updates Google Sheets and Microsoft Excel with your spending, transactions, and balances each day. 

Start your free trial.

Automate your financial plan with set-and-forget money tools that fit right into your daily life.

That’s why Qapital puts your goals front and center, then helps you plan your spending, saving, and investing around them.

Manage your money less in 5 minutes each week. Reach your money goals with confidence! The personal finance app gives you something to look forward to. 

“The easiest, most comprehensive way to both see where your money is going and plan for future expenses.”

Your automated financial assistant and budget tracker are designed to put you back in control of your money.

Stay on top of your spending, easily track bills, cancel unwanted subscriptions, and find ways to improve! 

Photo Credit:
moneybliss.org

HoneyMoney increases your awareness about your money habits. Being fully aware of your money naturally changes how you spend it.

Great way to use cash flow budgeting. Plus uses “envelopes” to budget.

Start your free trial.

Moneyspire is user-friendly personal finance and small business accounting software that brings your entire finances together in one place.

Have total control over your financial life in one click.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org