Soaring mortgage rates got you down? If you’re thinking about buying a home, you’re probably wondering: what will mortgage rates be doing in 2025? Experts predict a drop in 2025 but will they be right? Buckle up, because while predicting the future is no walk in the park, we can explore what the experts are saying and unpack some key factors that will likely influence mortgage rates next year.
As of May 30th, 2024, the 30-year fixed-rate mortgage (FRM) averaged 7.03%, according to the Primary Mortgage Market Survey®️. Here’s a quick snapshot of current mortgage rate trends:
1-Week Change: +0.09%
1-Year Change: +0.24%
4-Week Average: 7.02%
52-Week Average: 7.00%
52-Week Range: 6.60% – 7.79%
This information provides a helpful baseline as we delve into the predictions for 2025. But, factors such as inflation, economic growth, monetary policy, and global market conditions all play a role in shaping the future of mortgage rates. Let’s Lock In On the Forecasts.
Mortgage Rate Forecast: Experts Predict a Drop (Will They Be Right?)
Experts are gazing into their crystal balls and offering predictions about mortgage rates for 2025. Here’s a breakdown of what they’re saying:
A Gradual Downward Slope for Rates:
Major industry players like Fannie Mae and the Mortgage Bankers Association are forecasting a downward trend in rates throughout 2025. Their estimates range from 5.5% to 6.0% by the fourth quarter, which would be a welcome relief for potential homebuyers.
This would represent a significant decrease from the current rates hovering around 6.8%, offering a more attractive borrowing environment for those looking to lock in a mortgage.
Major industry players are also forecasting a downward trend in rates throughout 2025. Here’s a peek at what some of them are predicting:
U.S. News: Expects the 30-year fixed mortgage rate to be in the high-5% range by the end of 2025.
Mortgage Bankers Association (MBA): Predicts a rate of 5.9% in Q1 2025.
CBS News: Projects rates could be 6% or below by Q1 2025.
Wells Fargo: Forecasts a rate of 5.8% by the end of 2025.
However, it’s important to note that these predictions come with a degree of uncertainty. As a result, forecasters often advise caution and suggest that these projections are best viewed as guidelines rather than guarantees.
The Fed Factor:
The Federal Reserve plays a central role in setting interest rates, which in turn influences mortgage rates. In 2023, the Fed raised interest rates in an effort to combat inflation. If inflation remains high in 2025, the Fed may continue to raise rates, or keep them steady at a higher level.
This could limit the potential for significant decreases in mortgage rates. Conversely, if the Fed feels that inflation is under control and the economy is starting to slow down, they may decide to cut interest rates. This would likely lead to a decrease in mortgage rates as well.
So, the Fed’s actions regarding interest rates will be a major factor to watch in 2025. By following the Fed’s pronouncements and economic data releases, you can get a better sense of where interest rates are headed and how that might impact mortgage rates.
What Else Matters?
While expert forecasts are a good starting point, there’s more to the story. Here are some additional factors that could influence mortgage rates in 2025:
The Inflation Rollercoaster: Inflation is a major concern right now. As of May 2024, Morningstar expects inflation to average 1.9% from 2024 to 2028, which is slightly below the Federal Reserve’s (Fed) 2% inflation target. This forecast suggests a potential for a “soft landing” where inflation gradually returns to normal without causing a recession. However, if inflation is higher than expected, the Fed may be forced to take more drastic measures, such as raising interest rates more aggressively, to control inflation. This could put upward pressure on mortgage rates.
The Housing Market: If home prices continue to rise, even a slight decrease in mortgage rates might not make much of a difference in affordability for potential buyers. In fact, it could even create a situation where lower rates fuel further increases in home prices, essentially canceling out the benefit of the lower rate. This is because lower rates allow buyers to qualify for larger loans, which can drive up competition and push prices even higher. Additionally, if overall economic conditions weaken in 2025, it could lead to a decrease in buyer demand. This could help to stabilize or even cool off home prices, making them more affordable for buyers, even if mortgage rates don’t fall significantly.
The Takeaway: Be Prepared, Not Paranoid
Predicting mortgage rates is like predicting the weather – it’s not an exact science. But here’s the good news: even with some uncertainty, you can still make smart decisions about buying a home.
Do Your Homework: Stay informed about economic trends and the Fed’s actions. The more you know, the better prepared you’ll be to make informed choices.
Work with a Pro: A good mortgage lender will walk you through your options and help you find the best rate for your situation. Don’t hesitate to shop around and compare rates from different lenders.
Focus on Affordability: Don’t get hung up on the absolute interest rate number. What truly matters is whether the monthly payment fits comfortably within your budget.
Remember, buying a home is a long-term investment. While getting a good interest rate is important, it shouldn’t be the sole factor driving your decision. By carefully considering your financial situation and keeping an eye on the market, you can position yourself to make a confident move when the time is right.
ALSO READ:
Interest Rates Predictions for 5 Years: Where Are Rates Headed?
When is the Next Fed Meeting on Interest Rates in 2024?
Projected Interest Rates in 5 Years: A Look at the Forecasts
Mortgage Rate Predictions for Next 5 Years
Mortgage Rate Predictions for the Next 2 Years
Mortgage Rate Predictions for Next 3 Years: Double Digit Rise
Mortgage Rate Predictions for Next Month: June 2024
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Welcome to the 30 Day Money Challenge!
Today, you will learn how to make your money work for you. You don’t have to be a millionaire before knowing these things, but it’s important for everyone who wants financial stability.
Remember these keywords: saving and investing? This is where they come into play for long term success.
It’s not too late to make the right financial decisions.
But, finances are complicated and intimidating for most people so it can be hard to get started.
The 30 Day Money Challenge is here to help with that.
This 30 day financial challenge will help you create a strategy that can save, spend less, and make more by the end of this month!
Are you ready to dig into this month-long money challenge?
What is the 30 Day Money Challenge?
A money challenge is a plan for how to make your finances work better.
It can be as simple as spending less or eating out less, or something more complicated like saving up for retirement or buying a house.
During this month’s timeframe, you will dig into all areas of your finances to make sure you are on track to reach your money goals.
If you do not have financial goals, then we will make sure you do at the end of this money challenge.
I’ve seen a lot of spending challenges out there that are basically just a saving money chart telling you how much money to save each day to save $1000 or $500 in one month, but they don’t tell you how to save the money. That is where the rubber meets the road and this challenge will motivate you to improve your money habits.
Overall, you will learn more about your finances than you did previously.
Why a Money Challenge is Important
A 30 day challenge is a great way to get yourself motivated and focused on saving money and improving your money management.
The goal is not enough, you need the why behind it in order to see your savings grow.
This can be as simple as:
– Setting up a direct deposit from your paycheck to an account you control and only spending what’s in that account.
– Spending less on impulse buys.
– Cutting back on luxury items to save money.
– Living more in cash and less in credit card debt.
You can also take knowledge in knowing the number of our readers who have taken the challenge to improve their money management skills.
3 Steps to Start the Money Challenge
The 30 Day Money Challenge is a simple process that starts with 3 steps.
Your reward for participating in the challenge is pretty appealing, but the process can be hard for some.
So, know these steps before you start the challenge.
1. Pick a Time
While there is no good time to start, you need to find a time when you have the highest probability of success.
Starting the money challenge during the holidays will leave you defeated. Maybe starting as a New Year’s Resolution. Or during a quieter time throughout the year.
You need to find the “right” time because you will have to dedicate at least 10-30 minutes per day. However, the longer you put it off, the less likely you are to start.
2. Be Prepared
More than likely, you will be ripping off the band-aid on some old money failures and defeats. This is common.
You have to be mentally prepared to overcome these negative feelings towards money in order to find that breakthrough moment.
3. Accountability
Find someone to keep you accountable during the challenge.
There will be points when you want to accept defeat and run back to your old money ways. It’s great to create a support system for managing money wisely.
If those old money habits didn’t serve you well before, then how will they serve you moving forward.
You need to keep your eye on the prize!
Thirty Days of Money Challenges
A 30-day money challenge is a popular type of personal finance experiment in which participants take a pledge to review their finances and overcome any obstacles that are preventing them from long term financial stability.
The goal is to teach people how quickly they can change the trajectory of their personal finances before they snowball into a serious money problem.
Day 1 – Get Organized
If you don’t have an understanding of how many accounts you have, credit cards you have open, or debt payments that are due, then you must get your personal finances organized.
Start here to learn how to organize personal finances.
Day 2 – Understand your Income
If you do not know how much do I make a year, then you must figure that out first.
It is impossible to manage money if you do not know how much money is coming in.
Also, consider all types of income sources – earned, passive or investment.
Day 3 – Understand your Expenses
Understand where your paycheck is going. When you understand how much of your money is going to things like rent, utilities, and mortgage, you can make better decisions about spending.
This is not the time for “this-is-where-I-hope-my-spending-goes;” this is the true reality of how you spend money.
Day 4 – Pay Yourself First
This is a must for long-term success. Every time you get paid, you need to pay yourself first. Put a percentage of your paycheck into savings each month before anything else is spent on non-essential items.
We suggest starting with at least 5% of your income. Even better, you want to start with 20% of your income.
You must cut your fun spending until you can save money first.
When saving becomes an automatic habit, start investing through high yield accounts like IRAs and 401(K)s.
Day 5 – Automate your Emergency Savings
Set up a transfer to put $50 into your Emergency Fund every time you get paid.
Learn how much you need in your emergency fund. Remember, the goal is never to use your emergency fund, but you always want one – just in case!
Day 6 – Create Money Goals
Figure out what your financial goals are and how much they will cost over time, then come up with a strategy to achieve them.
You need to make a plan to reach your money goals.
If you skip this step, you may be lucky and still reach your goals. But, you can find better prosperity but writing out those money goals and maybe even using a vision board.
Learn how to create smart financial goals.
Day 7 – Budget Time
Crazy! I know. Most people would think that creating a budget would need to be first. But, it isn’t. You need to figure out days 1-6 first before you dig into budgeting.
Begin tracking your expenses on paper or online as soon as possible. Here are the best budgeting apps available.
The goal with the budget is to focus on saving first, then your expenses. you must spend less than you make.
Day 8 – Make More Money
Come up with ways to generate more income. Period. You need to make your money work for you.
You need to learn how to make your income work for you by creating streams of income outside of your primary work or “earned” income.
Theoretically, if multiple streams of revenue exist at your full-time job, you can work fewer hours than necessary.
Ways to Make Money:
Day 9 – Enough with Debt
Debt will hold you back. Period.
You need to recognize that paying off your debt is the best thing you can do for your finances. However, during this 30 day financial challenge, it is not the time to focus on paying off debt.
Calculate the total amount of debt (except mortgage).
Put down getting out of debt as one of your money goals and the timeframe to make it happen.
For now, don’t take on more debt, and make sure you’re paying the minimum on your credit card balance.
Day 10 – Understand Investing
Investing is a way of giving your money the opportunity to work for you. In other words, you are using what you have now in order to make more out of what you have in the future.
This is the first step to earning investment income that will fund your lifestyle.
Typically, most people associate investing in the stock market. Many people invest with their 401ks or IRAs. However, you can invest your personal income as well.
What if you could earn a return on that opportunity cost? For example, what if you invested the $10 in your wallet and it grew to be $20?
Learn how to start investing.
Trade and Travel 2.0
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
Day 11 – Control Excess Spending
Every time you spend money, it is an opportunity cost to your future self. You are trading away your future self’s money to buy something today.
Is that what you want?
More than likely, no.
Learn how to drastically cut expenses.
Day 12 – Autopay your Bills
Consider setting up an autopay feature for your bills. It can help you avoid late fees and will have a steadier flow of money coming in.
This will help you to make sure you have the cash flow available to meet your expenses.
Day 13 – Avoid Fees
One of the best ways to save money is by avoiding fees.
If you have a credit card, consider switching to one with no annual fee or an introductory offer that expires after one year.
Check your bank and credit card statements for any fees you may not be aware of.
If there is a fee, call the company and negotiate to have it removed or reduced.
Day 14 – Automate Retirement Contributions
You should automatically make a certain percentage of your salary go to a 401k or other savings account, and the other percentage goes to your checking account for spending money.
This is something your human resources department can help you set up.
Day 15 – Increase your Retirement Contributions
Now, that you have automated your retirement contribution, you want to increase you much your contribution each year until you are maxed out by IRS limits.
Start to increase your retirement contributions by 1%.
Set a five-year goal to fully max your retirement contributions!
Halfway Point!!
You’re halfway through the 30 day money challenge!
Keep up the good work and keep reaching for your goals.
You’ve made it this far, so just imagine what you’ll be able to do in another month of working hard towards saving more money.
Day 16 – Communication
Don’t think money has to be a taboo topic. In fact, you need to be comfortable talking about money.
The key is to be on the same page with key family members about where money should go. This is something that we struggled with our marriage and had to overcome. Thankfully, we did and we made way more progress than previously.
Day 17: Invest in yourself
I know you’re probably tired of hearing about investing in yourself, but it’s important. Investing means putting money into something that will make more money back. You might not think this applies to you, but it really can! You might not have a big budget for investing in stocks or mutual funds right now, so let’s talk about something you do spend money on every day: you.
You only learn by growing.
Day 18 – Start Reading About Personal FInance
This isn’t something that you do once or twice. Make it a goal to read books on money or personal finances each month.
Importantly, make sure you are reading books, regardless of what aspect they look at money. It is never too late to pick up new tricks or ideas.
Plus learning from others’ money stories is powerful.
Day 19 – Free Fun
Participating in only free activities for 30 days, and refusing to spend a single penny, we created a guide to make that happen for you.
101+ Things to Do with No Money
After writing that post, we discovered this is one of the best money saving ideas out there. This guide not only teaches you how to save money but also teaches about where you want to spend money and the importance of living a purposeful life.
Day 20 – Review Insurance
You need to make sure you are properly covered with insurance as well as not paying too much money for your policies.
There are all of the types of insurance you need to review:
This is something you should do once a year.
Day 21 – Waste Less Food
You need to learn to save money by wasting less food.
This doesn’t mean you have to make homemade meals every night of the week! The goal is not to throw food away – that is hard earned cash going right down the trash.
Ways to Save Money on Groceries:
Day 22 – Buy Second Hand
Consider second-hand stores and consignment sales as options for buying used items. Thrift stores are also great to save money on clothes and other household items.
The same is true for buying cars, baby equipment, kids clothes, etc. Plus you protect our world.
Day 23 – Save Money
So, this day is all about saving money and I think that it’s the most important one of them all because if you’re not saving your money, then what are you doing with it? You’re throwing it away.
So today, I want to talk about two different types of saving money – physical and mental. The first one is all about physically saving your money. This is the easiest one because it doesn’t require any effort on your part to do so, but it’s also very important as well.
The second type of saving money is mental saving. This is all about saving your money because you know that something better will come along soon and it gives you hope for the future!
So, I think these two types of savings are both really important.
Day 24 – Give Back
This is the time to give back to others, donate money to charities, and put small contributions into charity.
By hoarding money, you are not learning the principles of helping others just like you have been helped along the way.
Day 25 – Renegoite Interest Rates
Right now, we are not starting to pay off debt. We are looking for ways to save on higher interest payments.
Make calls to renegotiate your interest rates on your debt. If the credit card company says no, then look at a zero interest transfer.
Just no more debt.
Day 26 – Avoid Scarity Mindset
You have to believe in yourself that you are capable of achieving great things and that includes success money.
However, we get caught in this trap of hoarding materialistic items in order to make up for the dollars in our bank account or money that was wasted in buying them.
If you don’t believe how poverty mentality overwhelms your life, then read this story of reclaiming your home with decluttering.
Day 27 – Cut Out What you Don’t Need
If you are not using something, sell it or give it away to someone who can use it more than you do!
You’ll save money and make room in your budget for the things that matter.
We learned a lot when we started to own less stuff.
Day 28 – Prepare for a No Spend Challenge
If you have not been able to keep your spending in check, this is an excellent opportunity for you to try out a no spend challenge once this challenge finishes.
A no spend challenge will help you to review your budget and see what areas of spending need more attention in order to increase savings or pay down debt.
Also, it will help you focus on what area are important to spend money.
Day 29 – Reward Yourself
This is the biggest lesson I learned when paying off debt and trying to increase our savings percentage. I became unable to spend money. I would feel guilty about spending money.
That is not the type of life you want. You must be comfortable spending money (especially if you are a thrifty person).
Pick rewards to match your smart financial goals. Keep motivated with those rewards.
Day 30 – Stay on Track
Proper money management does not end just because the end of the 30 day challenge is over. This is a lifelong skill to master and perfect.
Keep focused by not going over budget limits and being honest about where you really stand financially today as opposed to where you want it to be in the future.
You can stay on track if you have a deep desire to continue.
30 Day Money Saving Challenge
This one is just about saving money. Period.
Each day, you save money to reach your goal.
For many people, the 30 day money saving challenge will make sure you are on track with your goals and objectives.
At the minimum, you should be able to save $500 in 30 days. But, you need to decide what you want to save in a month.
The challenge is open to everyone, so this might be the perfect opportunity for you!
What is the 30 Day Money saving Challenge?
The 30 day money saving challenge is saving a set amount of money during the month.
Keep in mind, not everyone will be able to save this much in 30 days and that’s perfectly okay.
You need to make it work with your budget.
Another option for the 30 Day Money Challenge is committing to give up one or more expenses for the whole month. For instance, pick ten things that cost you money and give them up for 30 days.
How to get started with the 30 day savings challenge
The 30 day savings challenge is a simple but effective way to get started saving money.
You can choose any of these methods:
Take the amount you want to save and divide by 30. That is how much to save daily.
Determine the amount to save and take that immediately when you are paid.
It is easy to go in order or skip around depending on what amount you want to save each day.
Keep change hidden in jars and watch it add up over time, then put the money away every day and see where they rank at the end of the month.
Give up a certain expense and save that money.
Try a modified version of the 100 day challenge.
You can find plenty of money saving challenge printable or PDF in our resource library.
Want more easy money saving challenges?
Are you in for this 30 Day Money Reset Challenge?
This is only a 30 day money challenge because it’s a short period of time to gain a win. That is what you need to keep up the motivation as well as have a strong kickstart to your finances.
In order to build wealth through their finances, these are 30 smart moves that require no time on some days.
Don’t lose momentum. If you miss a day, then jump back into the challenge the next day.
The key to success for 2021 is to take control of your finances.
Photo Credit:
www.rakuten.com
The Shopping Trick to Save Hundreds of Dollars
Personally, I love to shop online from the convenience of my own home and have packages delivered to my house. Plus you can get paid to shop online!! The process is super simple.
Just head here to get an Rakuten/Ebates account, click on the retailer you are shopping online, and then complete your checkout process as normal.
Already a Rakuten / Ebtaes member? Make sure you have the Extension Buttonfor automatic savings!
Photo Credit:
www.asktrim.com
Perfect for the person who hates to hassle with canceling subscriptions and checking spending. Trim is a virtual personal assistant that constantly works to save users money.
Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.
Photo Credit:
ibotta.com
Ibotta can be used for grocery stores, drugstores or online shopping. Once you accrue $20 in your account, you can transfer it to PayPal or venmo or buy gift cards to selected retailers.
Just for signing up, they will give you a bonus when you use use this link. Ibotta rocks at bonus categories and offers. This is where your cash back can really add up fast.
Photo Credit:
checkout51.com
Checkout 51 can be used for grocery stores or drugstores. Their offers are valid each week from Thursday-Wednesday. With new offers released each Thursday.
One of my favorite offers is the “Pick your own offer” – it is a selection of 5 fruits of veggies to redeem for extra cents cash back. Once your account balance is over $20, they will mail you a check.
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.
The statement noted that a discussion makes “good sense” given home price appreciation and the swift rise in inflation that has taken place over the last couple of years. “Mortgage lenders fully and transparently disclose costs to every borrower on forms developed and prescribed by Congress in the Dodd-Frank Act and implemented by the CFPB,” … [Read more…]
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Money is a tricky concept.
It can be both the best and worst thing in your life depending on how you manage it.
Understand how to manage your money wisely and apply a few helpful tactics to your daily life. Simple habits will help you manage money better every day.
You must make money management easier and understand what types of pitfalls to avoid while we’re at it!
The following are a few ways to manage money. You can save it, spend it, or invest it.
There are many ways to manage your money wisely, but you should always start with your own control. You might not make all the choices that are right for you, but you must be prepared for the future.
This blog post provides tips for managing money, avoiding common mistakes by other people, reducing debt, spending wisely – these are just some examples of topics covered.
If you are ready to learn how to manage your money like a millionaire, then you are in the right place!
How to Manage Money Wisely
The key to managing your money is following the steps that are outlined in this article.
Financial stress can be managed by following the steps of managing money wisely. It is important to prioritize spending, don’t overspend on things that are not necessary, and learn about saving too because it will help you move towards financial stability.
You can learn how to properly manage your money with these swift mindset changes.
Below are 10 money management tips that will help you make better use of your finances.
1. Build a Firm Foundation
In order to make money better, people should set a firm foundation for themselves. This means setting up a financial strategy and making sure you have a plan in place. It also means having the right mentality about money and spending less than what you earn every month to avoid debt.
The first step is to establish a firm financial foundation, which means you must spend less than you make, save money for emergencies, and get out of consumer debt.
2. Design a Money Management Blueprint
A financial blueprint is a tool that can help you to build and maintain your money.
The problem for most people is they are starting at one place in their financial journey and are stuck on how to move to where they want to be.
That is where you need to follow the Money Bliss Steps to Financial Freedom. These are the exact steps to help guide your journey and a helpful blueprint to follow.
By taking each step one at a time, you will be able to make progress faster.
3. Define Your Goals
You must identify what your financial goals are.
What do you want?
Are you looking for more income?
Work fewer hours?
Something else entirely?
By setting money goals, this process will help you set a timeline and map out your journey.
4. Analyze Your Current Situation
This step is about taking stock of what you currently have to work with, such as income and expenditures, debts and assets, and savings.
This will help you decide what changes need to be made so that your goals can happen.
Honestly, this is probably the hardest step, and when most people give up. Taking a look at your true financial picture can be scary and painful to do.
5. Get on a Budget
Money is a source of stress for many people. It can be difficult to manage money when it’s not well-organized and set up properly.
In order to make sure that your money does not continue being a source of stress, create a budget and track spending!
A budget is a plan that helps you organize your money so that it can be spent effectively. It also shows where your money goes and what you are spending it on. Budgeting is an important part of managing money wisely because it helps you stay within your financial means, which ultimately saves you from living paycheck to paycheck or needing to borrow more than needed.
To create a budget, first set aside time for research and planning (this will take one day). Then create and write down the basic budget in a well-organized manner. It is important that you have a budget that works with your lifestyle and spending habits, so take the time to create one that fits what you need.
Some people go into budgeting with the goal of changing everything, but this is not necessary.
It’s important to make sure you’re realistic about your goals and target in order to get the most out of it. This will ensure you can meet your financial targets without breaking account after account or losing track of what has been spent already.
6. Say No to Debt and Create a Plan to Pay Off Debt
Creating a plan to pay off debt is crucial in order to reach financial goals.
It is important to create a plan to pay off your debts in order for you to be able to manage them better. High-interest rates should be tackled first, then work your way down through the rest of the debts.
The other key aspect is to stay out of debt. There is no need to buy something you cannot pay for in cash today.
Tools and tips to help you pay off debt:
This includes creating a budget and sticking with it, getting out of the habit of using credit cards, and saving money for an emergency fund.
7. Track Spending
Tracking expenses can help you see where your money is going so that you can make better decisions. For example, tracking your spending will allow you to know if the $200 concert was worth it.
Tracking spending will help you manage your money better.
It is important to be aware of how much we spend and what we spend it on so that you can make the best financial decisions possible.
This will help you to manage bills and save money.
8. Save Money
Every month, save money and put it in another account to be used in the future.
In order to make large purchases, it is important to have money set aside for that purpose. It is also a good idea to budget and save money in case there is an emergency.
An important phase in making smart money management tactics is to start investing as soon as you can. This is how you make your money work for you. Learn how to start investing.
9. Invest in your Financial Future
Almost a third of older Americans have nothing saved for retirement. That is a statistic you do not want to be a part of.
It’s never too early or too late to start saving for your retirement.
You should always be mindful of the future and plan accordingly. Whether it is through a 401k, IRA, Roth IRA, or other investment vehicles that you can contribute to in order to save up money for when you retire; make sure that whatever vehicle you choose gives an appropriate return on your invested funds (e.g., stocks).
In order to learn how to properly manage money wisely, you must be contributing to your retirement accounts. It may seem like a long way off until it is not.
10. Be Persistent
Managing your money can be a difficult task.
There are many ways that you can take control of your money situation and make it easier for yourself.
When it comes to managing your money, persistence is key. You’ll need to be persistent at all income levels in order for your savings and investments to grow.
How to Manage Money Effectively Now
Only do what you need to, not what you want to or can afford. Set up a budget and stick with it. Pay yourself first before buying anything else. Always save for the future, even if that means sacrificing now on some luxuries like eating out more often or setting aside money for retirement since your employer doesn’t offer one of those options yet.
A budget is a plan for how much money you will spend in each category every month. This will help you to pay off debt and reach your financial goals.
1) Create a monthly budget.
2) Track your progress in the spreadsheet throughout the year.
3) Make sure you’re saving at least 10% of your income/income minus loan payments, bills, and other expenses for emergencies and savings.
4) Pick one of these how to manage money books.
Take Action!
This step is all about taking the necessary steps to achieve your goals.
Again, this will vary for each individual and goal setter, but might include: cutting out unnecessary spending on luxuries; increasing income by asking for a raise or starting up a side hustle; and spending less on debt repayment by extending the term of your loan.
Be Patient!
This step is about being mindful that not every goal can be accomplished overnight, but it will happen with dedication and patience.
Be patient with yourself, your progress, and the change that is happening in your life as you work on achieving these new goals!
Are you Ready to Manage Money Better?
Learning how to manage money can be overwhelming when you haven’t built a strong foundation with money.
We have covered ways to make your life easy and money management better.
You need to learn how to manage your money.
You have to be the one to implement these tactics.
Proper money management ensures better outcomes with your finances.
From all of the free and paid budgeting apps, here are our top budgeting apps to check out!
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In a largely anticipated move following weeks of criticism from its director, the Consumer Financial Protection Bureau issued an inquiry to examine the impact mortgage closing costs and fees have on borrowers.
In the past several months, CFPB Director Rohit Chopra has issued a stream of comments questioning the fairness of various housing related charges to consumers and other expenses he collectively deemed “junk fees.” But the request potentially foreshadows future CFPB rulemaking that might impose limits on what can be charged, according to some legal experts.
Among the items Chopra has criticized are interest rate buydowns, property inspections and title insurance.
“Junk fees and excessive closing costs can drain down payments and push up monthly mortgage costs,” said CFPB Director Rohit Chopra, in a press release. “The CFPB is looking for ways to reduce anticompetitive fees that harm both homebuyers and lenders.”
During a May speech at a leading mortgage industry conference, Chopra directed criticism at the credit reporting industry for steep increases in fees for score data. In those same remarks, he called out prices for employment verification services, and said that many of the fees charged to consumers still amounted to unreasonable and unfair burdens on consumers warranting examination even when disclosed upfront.
In its latest announcement, the bureau again singled out charges related to credit scores and title insurance. The request for information, or RFI, asked for public comment specifically addressing fees that are currently subject to competition, how they are set and if they have changed in recent years.
“Even if disclosed, borrowers are compelled to pay the fees and may have no control over cost. In 2022, median closing costs were $6,000, and these fees can quickly erode home equity and undercut homeownership,” the CFPB said.
Comments are open until Aug. 2 and can be made by email or through the federal government’s eRulemaking portal.
Chopra finds himself regularly at odds with many in the mortgage industry, and the CFPB’s inquiry quickly garnered a mix of reactions ranging from praise to disapproval among industry stakeholders. While trade groups have characterized the CFPB’s actions as overregulation that display a lack of understanding about the way the mortgage process works, some lenders also appreciate the efforts to drive down costs that negatively impact their bottom line.
The Community Home Lenders of America welcomed the inquiry “for highlighting third-party mortgage service provider junk fees, which can harm consumers and reduce access to homeownership,” according to its executive director, Scott Olson
“In particular, we are pleased the CFPB focused on two areas of concern to our members, credit scoring and title insurance,” Olson also noted in a press release.
But a consortium of industry trade groups, including the Mortgage Bankers Association, Housing Policy Council and American Bankers Association pointed out many of the fees questioned by the CFPB were required by federal statutes and other regulators as a condition of buying and insuring loans. Many of the rules currently in place received the stamp of approval from the CFPB, they added.
“The industry invested considerable resources to implement these new rules just a decade ago,” a joint statement read.
“If the CFPB is now modifying its previous position and is considering changing this complex regulatory disclosure regime, a rule-making process governed by the Administrative Procedure Act — and supported by a robust cost-benefit analysis — is the only appropriate vehicle to initiate that work,” the trade groups said.
“Given the significant home-price appreciation and swift inflation that consumers have encountered in recent years, a discussion about policies that address affordability burdens while maintaining healthy and competitive mortgage markets makes good sense,” they added.
Meanwhile, the American Land Title Association, which finds itself in the public eye after the announcement of a pilot program aimed at reducing borrower expenses that could offer alternatives or waivers to its products, also took issue with the “junk fee” label but said it appreciated the opportunity to educate federal agencies the value its members provided.
“Fees for title insurance and other closing costs must be provided and disclosed to consumers under a federally mandated rule that the CFPB itself developed in 2015,” ALTA said in a statement. “Lumping title insurance and settlement services into the category of ‘junk fees’ conflicts with the White House’s own definition, which cites the lack of disclosure of the fee being charged.”
But analyst Bose George of Keefe, Bruyette & Woods said any changes related to title insurance charges would only occur in the event of a second Biden presidential term and may not result in major changes, given the CFPB’s role in creating current regulations.
“We think a change like this, which might just move the title cost into the mortgage rate and effectively be passed on to the borrower in that sense, might not warrant a wholesale change to the closing process,” George said.
Attorneys serving the mortgage industry took a harsher tone toward the CFPB, with Richard Horn, co-managing partner of Garris Horn raising a red flag for the home finance community in a blog post.
“It appears to be an attempt to create an administrative record for a future rulemaking that substantively restricts closing costs in some way,” he wrote.
Meanwhile, Peter Idziak, senior associate to Polunsky Beitel Green, claimed the CFPB was engaging in some “sleight of hand” in its announcement, particularly when it came to labeling rate discount points as junk fees.
“It’s not surprising that more borrowers are choosing to pay points with interest rates more than double what they were in 2021, but it’s misleading for the bureau to lump these voluntary costs in with fees that are truly unavoidable,” Idziak said in a statement.
At the same time, Idziak said the CFPB deserved some of the blame for the current state of housing costs.
“A more accurate title of the CFPB’s press release could be, “Well, Well, Well, If it isn’t the ‘Consequences of My Own Actions.’ Completely absent from the bureau’s request for information is any acknowledgment that increasing and overburdensome government regulations and actions by FHFA as conservator of Fannie and Freddie have increased costs of doing business substantially for lenders.”
Inside: Learn how much your 80k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
You want to know to look into this… 80k salary is a good hourly wage when you think about it.
When you get a job and you are making about $19 an hour, making over $80,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income was $70,084 in 2021 not much different from the previous year (source). Think of it as a bell curve with $70 at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $55,350 for a 40-hour workweek; that is an increase of 1.1% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
Obviously, $80k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher-than-average salary.
But, the question remains…can you truly live off 80,000 per year in today’s society? The question you want to ask all of your friends is $80000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $80000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $80k is as well as what you make per month, weekly, and biweekly.
Typically at this salary, you enjoy sharing what do you do for a living.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$80000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 80k a year hourly. That way you can decide whether or not the job is worthwhile for you.
$80000 a year is $38.46 per hour
Breakdown of how much is 80k a year hourly
Let’s break down, how that 80000 salary to hourly number is calculated.
For our calculations to figure out how much is 80K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $80000 by 2,080 working hours and the result is $38.46 per hour.
80000 salary / 2080 hours = $38.46 per hour
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $4K, it would increase your hourly wage by $1.92 per hour.
To break it down – 84k a year is how much an hour = $40.38
That isn’t a huge amount of money, but every dollar adds up to over $40 an hour.
How Much is $80K salary Per Month?
On average, the monthly amount would be $6,666.67.
Annual Salary of $80,000 ÷ 12 months = $6,666.67 per month
This is how much you make a month if you get paid 80000 a year.
What is $80k a year Weekly?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $80k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$80000/52 weeks = $1,538 per week.
$80000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,538 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$80000 / 260 working days = $307 per day
If you work a 10-hour day on 208 days throughout the year, you make $384 per day.
$80000 Salary is…
$80000 a year is how much an hour (Full Time)
Total Income
Yearly (52 weeks)
$80,000
Monthly
$6,667
Weekly (40 Hours)
$1,538
Bi-Weekly (80 Hours)
$3,077
Daily Wage (8 Hours)
$307
Daily Wage (10 Hours)
$384
Hourly Wage
$38.46
Net Estimated Monthly Income
$5,090
Net Estimated Hourly Income
$29.37
**These are assumptions based on simple scenarios.
80k A Year Is How Much An Hour After Taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with a salary range of up to $160,200.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 80000 a year after taxes?
Gross Annual Salary: $80,000
Federal Taxes of 12%: $9,600
State Taxes of 4%: $3,200
Social Security and Medicare of 7.65%: $6,120
$80k Per Year After Taxes is $61,080.
This would be your annual net income after taxes.
Hourly Wage after Taxes
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$61080 ÷ 2,080 hours = $29.37 per hour
After estimated taxes and FICA, you are netting $61,080 per year, which is $18,920 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, use a tax calculator to help you figure out how much your net paycheck would be.***
Consider the Cost of State Income Taxes
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody who lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $80000 income can range from $54,680 to $64,280 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously, you need to pay taxes.
But, it can also put a huge dent in your ability to live the lifestyle you want on an $80,000 income.
$80k salary to Hourly
We calculated how much $80,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person?
And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $80,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $80,000 a year is just above the median income by $20000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.
A stretch goal would be learning how to save 20000 in a year.
What a $80,000 lifestyle will buy you:
If you are debt-free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You can afford a home in a great neighborhood in MCOL city.
You should be able to easily meet your expenses each and every month.
Love life being financially stable.
Saving at least 15% of your income each month and working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.
When A $80,000 Salary Will Hold You Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 80k a year is going to be pretty darn difficult.
Three factors will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck-to-paycheck cycle.
Live a lifestyle that you can afford – not one you cannot.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
You can find out success is the best revenge when you cross over this salary threshold.
$80K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money left is for fun spending.
This is how zero based budgeting works.
If you want to know how to manage 80k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $80000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$533
Savings
15-25%
$1000
Housing
20-30%
$1600
Utilities
4-7%
$267
Groceries
5-12%
$553
Clothing
1-4%
$67
Transportation
4-10%
$333
Medical
5-12%
$400
Life Insurance
1%
$20
Education
1-4%
$50
Personal
2-7%
$67
Recreation / Entertainment
3-8%
$200
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1577
Total Gross Income
$6,667
**In this budget, prioritization was given to savings, basic expenses and no debt.
Is $80,000 a year Good Money?
As we stated earlier if you are able to make $80,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if 80000 is a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $80k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 80k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 80,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 80,000 per year.
If you are looking for a career change, you want to find jobs paying six figures.
Is 80k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $80000 per year.
This is a great opportunity to double $10k quickly in your spare time!
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 80k a good salary for a family?
Many of the same principles apply above on whether $80000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child. Plus this does not include college.
The cost of raising a child is expensive! Any of us can relate to that!
So, the question really remains… can you provide a good life for your family by making $80,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you can provide the necessary expenses if both parties were making 80,000 per year, then the combined income for the household would be $160,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $80000 Per Year?
As we outlined earlier in the post, $80,000 a year:
$38.46 Per Hour
$307-384 Per Day (depending on the length of day worked)
$1538 Per Week
$3076 Per Biweekly
$6666 Per Month
Next up is making $90000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 45,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $80K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
In fact, this might be a good time to learn how to trade stocks with the best Travel and Travel course.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
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.
Pending home sales fell another 7.7 percent in April according to the National Association of Realtors® (NAR). NAR’s Pending Home Sales Index (PHSI) for the month was 72.3 compared to 78.3 in March. Based on purchase contracts for previously owned single-family homes, townhouses, condominiums, and cooperative apartments, the Index was also down 7.4 percent from its level in April 2023.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
The slowdown in the home sale market is clear when looking at the national PHSI since the Federal Reserve started raising interest rates. The index averaged 115.2 in 2022 and 91.9 in 2023. It has not exceeded 78.5 at any point in 2024.
All four major regions lost ground for the month and year-over-year. In the Northeast, the PHSI level of 62.9 was down 3.5 percent from March and 3.1 percent on an annual basis. The Midwest index dropped 9.5 percent to 70.7 percent, a decline of 8.7 percent from one year ago.
The South lost 7.6 percent and 8.2 percent compared to the two earlier periods to a reading of 88.6. The West’s Index was at 55.9, a decline of 8.5 percent from March and 7.3 percent from the previous April.
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”
The PHSI is considered a leading indicator of existing home sales over the next two months. An index of 100 is equal to the level of contract activity in 2001. The NAR will release existing home sales numbers for May on June 21.
It’s hard to believe Amazon.com started back in July 1995 as an online retailer that sold books only. Almost 30 years later, it’s likely the first place you look when you get the idea to buy anything.
Retailers like Walmart, Best Buy and Target can be quite competitive with Amazon. Still, with the number of Amazon Prime members in the U.S. at 180 million, according to an estimate by Consumer Intelligence Research Partners in March, dependence on Amazon runs deep. If you shop there, lead with needs over wants to save money where it counts. Here’s a short list of the best things to buy (and a couple to skip) on Amazon.
Before you build a budget
NerdWallet breaks down your spending and shows you ways to save.
Buy: Personal care items you can put on autopilot
Product purchases new parents can knock out at Amazon include baby wipes and diapers. Items like these are competitively priced on Amazon, especially when using “Subscribe & Save,” said Kallie Branciforte, a blogger and YouTuber in Connecticut, in an email.
“I am always surprised by how many people don’t take advantage of ‘Subscribe & Save,’” she said. “It’s the easiest way to save on the stuff you use all the time.”
When you subscribe to a product, you can set a schedule that aligns with when you’ll run out. Branciforte, who reaches millions of viewers with her “That Practical Mom” YouTube channel, lets Amazon replenish vitamins, diaper cream, her kids’ body wash and more to make life easier, and often cheaper.
Try subscribing to unique essentials, like nasal strips that let you breathe freely at night, or electric toothbrush heads to make healthy living habitual. Buying items like these on Amazon is more about selection and convenience than price.
As an incentive, Amazon offers up to 15% off when you receive five or more eligible products in one automatic delivery to the same address. “It’s such a simple way to save on things you’re already buying, completely on autopilot,” said Branciforte.
Buy: Pet food and litter
Putting pet food on auto-order is another convenience play for Prime members. Nobody likes scanning 25 tiny cans of Fancy Feast at the grocery store self-checkout lane. You can save the hassle and try to beat the per-can price by ordering the 30-pack on Amazon.
You can save your back by getting big bags of dog food or a 38-pound box of cat litter delivered.
Skip: Clothes you want to fit well and feel comfortable
Clothing can be hard to get right on Amazon, says Trae Bodge, the shopping expert at truetrae.com.
Bodge bought a dress on Amazon last year and loves the look, but says it’s scratchy inside. She prefers a store like Target for affordable pieces she can feel first.
When it comes to jeans and sneakers, you might be able to do better by buying from the source. Joining the Levi’s rewards program, for example, gets you free shipping and returns on Levi.com. “What you’ll find is that the style selection is broader, the size selection is broader,” says Bodge.
Nike is another brand that incentivizes customers to shop on its site. Members get free shipping on orders $50 or more, and shoes and apparel at Nike.com regularly go on sale.
Buy: Batteries, cables and phone cases
Back to the essentials, the Amazon Basics brand of batteries is an exceptional deal. At $12.52 for an 8-pack of 9-volt batteries (at the time of writing), you can add it and a pack of AA and AAAs to your cart the next time you checkout. Compare that with the 8-pack of Duracell 9-volt batteries we spotted at the Home Depot for $29.05.
Make Amazon your first stop after you buy a new or used iPhone or Android too. Apple’s $49 silicone case is highway robbery when you compare it with cases on Amazon that look, feel and protect the same for under $15. Amazon is also the place for power adapters, cables and wireless charging pads at prices that are cheaper than at Apple.
Buy: Amazon bestsellers
A helpful hack Branciforte shares in one of her YouTube videos is to use Amazon’s “Best Sellers” lists to narrow down searches.
It’s a little out of the way, but you get there by navigating to the top left of the desktop site and clicking the three bars to open the menu. Select “Best Sellers,” and from there, you can dive down by department to find popular buys in specific product categories.
Let’s say, for example, you’re looking for a shower head with better water pressure than the one you have. Rather than roll the dice on something from Home Depot or Lowe’s, you can look up bestsellers in the bath section on Amazon. Scroll down to the first or second one, likely the AquaCare HighPressure 8-mode handheld shower head for around $25, then buy it. This paragraph isn’t sponsored, but this Nerdy writer can attest to the power of this particular model.
Skip: Large furniture pieces that can be painful to return
Bodge avoids buying larger items at Amazon that you have to assemble. The perceived burden of sending it back could compel you to keep something you don’t want. And even if you do like it, the cardboard and other packing material that comes with a coffee table can be a royal pain in the trash.
Now that it’s normal to frequent stores again, it can save you time and strife to pick something out and buy it in person. You can also save by buying used. Thrift stores, antique shops and Facebook Marketplace are great places to score cheap furniture pieces from yesteryear that are still in style (and probably better made).
Advice: Read reviews and check price history before buying
Whatever you buy from Amazon, it’s important to read the reviews and it’s better when there are plenty of them, said Branciforte. She tends to be leery of items with few ratings unless the category is very niche.
“I’d rather buy something with 4.3 stars and 1,000+ reviews than 4.8 stars and 15 reviews because I know the first has been on the site longer, making it more trustworthy and valid,” she said.
Given that other retailers are working hard to outprice Amazon, Bodge says it pays to check the price history and look around before buying. Shopping browser extensions like PayPal Honey and the Camelizer make light work of making sure you aren’t overpaying. And it’s easy to do a quick Google search for any product.
With Prime Day in July, better deals could be on the horizon. “I think it can be worthwhile to wait,” said Branciforte.
You can still shop, though. Just put it in your cart and select “save for later.”
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Should landlords report rent payments to credit bureaus? In this post, I’ll discuss the pros and cons for landlords and tenants. This topic is often misunderstood, with many believing landlords are against the idea to keep tenants from building good credit.
In reality, landlords might benefit from this more than tenants, while the implications for tenants can be complex and sometimes detrimental. Let’s dive in.
Table of Contents
Video Overview
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The Current State of Rent Reporting
Rent payments are not typically reported to credit bureaus. Some property management companies and national property management software providers do report rent, but it’s not widespread. As a landlord, I have reviewed many tenant credit reports and rarely, if ever, see late rent payments reported. Instead, credit issues related to rent usually show up as judgments or evictions, which are public records.
What is the Best Way to Screen Tenants for Rentals?
The Pros and Cons for Landlords
Pros:
Better Tenant Screening: Reporting rent payments could help landlords identify reliable tenants who pay on time, thus reducing the risk of late payments and potential evictions.
Incentivizes Timely Payments: Knowing that late or missed rent payments will affect their credit scores, tenants might be more motivated to pay on time.
Improved Tenant Credit: For tenants who consistently pay on time, rent reporting can help build their credit history, potentially aiding them in future financial endeavors such as buying a home.
Cons:
Cost: Some rent reporting services charge fees to landlords, which can add up over time.
Administrative Burden: Setting up and managing rent reporting requires additional time and effort from landlords.
Tenant Pushback: Tenants who are concerned about the impact of potential late payments on their credit might resist renting properties where rent is reported.
The Pros and Cons for Tenants
Pros:
Credit Building: Regular, on-time rent payments can help tenants build or improve their credit scores, making it easier to secure loans or credit in the future.
Financial Accountability: Knowing their rent payments are being reported might encourage tenants to budget more effectively and prioritize timely payments.
Cons:
Risk of Negative Impact: Late or missed rent payments could significantly damage a tenant’s credit score, making it harder to secure future housing or loans.
Increased Scrutiny: Tenants with less-than-perfect payment histories might struggle to find landlords willing to rent to them if rent reporting becomes widespread.
Legal and Practical Considerations
Before landlords start reporting rent payments, they must consider the legal implications and ensure they comply with local laws. Some states have stringent tenant protection laws that could impact the ability to report rent payments. For example, in Colorado, landlords cannot check credit reports if the tenant’s rent is entirely paid by public assistance. Always consult with a legal professional to navigate these complexities.
Should you use a property manager?
How to Report Rent Payments
Several services facilitate rent reporting for both landlords and tenants. These include:
Experian Boost: Tenants can add their rent payments, as well as utility, cell phone, and streaming service payments, to their credit reports through Experian Boost.
RentTrack: This service reports to Experian, TransUnion, and Equifax, and can include past rental payments for an additional fee.
ClearNow: Tenants pay rent through a portal, which then reports the payments to Experian.
What is the best way to manage rentals?
Conclusion
Reporting rent payments to credit bureaus has potential benefits for both landlords and tenants. But it also carries significant risks. It is crucial to weigh these pros and cons carefully and consider the specific legal context in your state. For landlords, this could mean better tenant screening and incentivizing timely payments, but it also comes with costs and administrative challenges. For tenants, it could help build credit but also pose risks if payments are late.
As an experienced real estate investor and landlord, I see the value in rent reporting but also understand the potential downsides. It’s a complex issue that requires careful consideration and legal guidance.
I’d love to hear your thoughts on this topic. Should rent payments be automatically reported to credit bureaus? Should it be a choice left to landlords and tenants? Let me know in the comments below!
Renting a car with a credit card is easier than renting a car without a credit card, but both methods are possible at many major car rental agencies. Car rental companies typically put customers through more hoops to rent a car without a credit card.
In this guide, we’ll cover how to rent a car without a credit card — but also explore the potential perks of paying for a rental car with a credit card, when possible.
Is It Possible to Rent a Car Without a Credit Card?
So do you need a credit card to rent a car? Technically, no, you do not have to have a credit card to rent a car. It’s possible to rent a car with a debit card at some major rental agencies. Some agencies even accept prepaid gift cards, cash, or money orders as a form of payment at the end of the rental.
Each rental agency has its own stipulations about paying by debit card. Some franchises may not follow corporate policy, so it’s always a good idea to call the specific rental agency location to ask about payment options before arriving at your destination.
Common requirements for customers paying for a rental without a credit card include:
• Security deposit: Many agencies will put a hold on your debit card for the cost of the rental, plus an additional amount. You will not be able to use the money being held for the duration of your trip, which can make funding your vacation more challenging.
• Credit check: If you are paying with a debit card (or cash), some rental car agencies may perform a credit check. This could result in a hard inquiry on your credit report, which might temporarily lower your score.
• Identification: Renting a car without a credit card might mean that the rental agency needs to see multiple valid forms of ID.
• Age: While 25 is often the magic number to rent a car, it is possible to rent a car as a younger driver. Many agencies charge “young driver fees” to do so. However, if you are renting a car with a debit card, agencies may not allow drivers under the age of 25.
• Proof of return travel: If renting from an airport with a debit card, many agencies want to see a ticketed return travel itinerary as an extra assurance that you will return with the car.
• Logos: Some rental car agencies require debit or prepaid cards to carry the logo of a major credit card company, like Mastercard, Visa, or Discover.
The following rental car agencies allow you to rent a car without a credit card at participating franchises if you meet their specific requirements (though note this is not an exhaustive list):
• Alamo
• Avis
• Budget
• Dollar
• Enterprise
• Hertz
• National
• Sixt
• Thrifty
• Turo
Recommended: Buying a Car with a Credit Card
Why Rental Car Agencies Typically Require a Credit Card to Rent a Car
Why do you need a credit card to rent a car at some agencies, and why do others impose a number of requirements for debit card payments? Here are the reasons rental car agencies require a credit card or other information.
Proof of Reliability
Having a credit card inherently demonstrates to a rental car agency that a creditor trusts you enough to borrow their money. Because rental car agencies can ascertain your creditworthiness from a credit card in your name, they don’t need to run a credit check before loaning you a $25,000 piece of machinery.
Ability to Collect Repair Fees
If you return the car damaged, the rental car agency will need to pay for these repairs. Car insurance (whether through your own policy, credit card travel insurance, or the agency’s policy) may cover most of the charges, but you still might owe a deductible. Without proper insurance, there is a risk that the repair costs will exceed your security deposit.
Though you can rent a car without a credit card, if you pay with a debit card, the rental agency runs the risk of your checking account not having enough funds to cover the cost. There is a better chance the agency can charge your credit card without hitting your credit limit.
Ability to Collect Tickets and Fees
Similarly, if you go through any electronic toll booths or receive a ticket without being pulled over (e.g., through a traffic camera), the rental car agency can charge your credit card to pay the outstanding balance. Again, they face less risk of maxing out a credit card than overdrawing a checking account, which is why some agencies prefer customers renting a car with a credit card.
Benefits of Using a Credit Card for a Car Rental
Here are just a few potential perks of swiping your credit card for a car rental:
• It’s easier. As discussed above, renting a car without a credit card can complicate the process.
• You might have insurance. Some travel credit cards offer car insurance when you use them to pay for a rental car. Research your card’s policy carefully to understand what coverage it provides and how to use it. For example, many credit cards with travel insurance require that you decline the rental agency’s insurance; some only offer secondary insurance, meaning you need to file claims through your own auto insurance first.
• You might get discounts. Some credit cards offer special discounts at select car rental agencies. Check your card’s policy to understand where and how to get discounted rates.
• You could earn rewards. As mentioned above, you might qualify for cash back rewards when you opt to cover your rental car with a credit card payment. Other cards may pay out rewards as miles or points. Travel credit cards might even offer extra points for travel-related expenses, like rental cars.
Typical Rental Car Credit Card Interest Charges
When you rent a car, the agency typically puts a hold on your credit card for a set amount, often the value of the rental car agreement; this is commonly called a security deposit. During the rental period, these funds will count toward your credit limit.
When you return the car, the agency will charge you the amount of the rental, plus any fees incurred during the rental (damages, extra days, late drop-off, etc.). If the initial hold was more than the final cost of the rental, the agency will put that amount back on your card.
Because you pay interest on money borrowed with a credit card, it’s possible you might incur interest on the held security deposit. However, paying off a credit card in full every month is a smart strategy for avoiding interest charges given how credit cards work.
Recommended: When Are Credit Card Payments Due?
The Takeaway
Renting a car with a credit card makes the process much easier and can have benefits for the renter as well. However, it is possible to rent a car without a credit card. Just be prepared to take additional steps to get behind the wheel.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options so you can use your credit card responsibly.
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FAQ
Do I need a credit card for rental car insurance?
You do not need a credit card to purchase rental car insurance. While using a credit card makes it easier to secure a rental, most agencies allow you to pay upon your return with a credit card, debit card, or even cash, a gift card, or a money order. That includes the cost of insurance provided by the rental agency.
However, many car insurance providers cover rental cars in their policies, especially in the United States. Check with your agent to see if you’re covered. Additionally, some credit cards offer rental car insurance when you use them to pay for the rental. Your credit card benefits administrator can explain how, if, and when coverage applies.
Is it easier to rent a car with a credit card or debit card?
Renting a car with a credit card is easier than renting a car with a debit card. Many agencies will let you rent with a debit card; they just have additional requirements for you to meet before renting.
What form of payments are accepted for renting a car?
While rental agencies generally prefer credit cards for payment, some agencies allow you to book and rent a car with a debit card. Upon return, you may be able to pay for the car with a prepaid gift card, cash, or money order.
Can I use someone else’s credit card to rent a car?
If you use someone else’s credit card to rent a car, that person must be present to pick up the rental and be the main driver. If you intend to drive the rental, you will likely have to pay a fee for an additional driver, as you can’t be listed as the primary driver when using someone else’s credit card.
Photo credit: iStock/skynesher
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