Buying Archives - Page 9 of 938

Apache is functioning normally

September 29, 2024 by Brett Tams

When it comes to investing, there are certain rules of thumb that investors are often encouraged to follow. One of the most-repeated adages in investing is to try and “buy low, sell high.”

Buying low and selling high simply means purchasing securities at one price, then selling them later at a higher price. This bit of investing wisdom offers a relatively straightforward take on how to realize profits in the market. But figuring out how to buy low and sell high — and make this strategy work — is a bit more complicated. Timing the market is not a perfect science, and understanding that implementing a buy low, sell high strategy is more complicated than it sounds is critical to investor success.

Key Points

• Buy low, sell high is an investment strategy that involves purchasing securities at a lower price and selling them later at a higher price.

• Timing the market and implementing this strategy can be challenging, as market movements are unpredictable.

• Understanding stock market cycles and trends can help determine when to buy low and sell high.

• Technical indicators and moving averages can assist in identifying pricing trends and points of resistance.

• Investor biases and herd mentality can impact decision-making, so it’s important to make rational choices based on research and analysis.

What Does It Mean to “Buy Low, Sell High”?

“Buy low, sell high” is an investment philosophy that advocates buying stocks or other securities at one price, and then selling them later when they’ve (hopefully) gained value. This is the opposite of buying high and selling low, which effectively results in investors selling stocks at a loss.

When investors buy low and sell high, they may do so to maximize profits. For example, a day trader may purchase shares of XYZ stock at $10 in the morning, then turn around and sell them for $30 per share in the afternoon if the stock’s price increases. The result is a $20 profit per share, less trading fees or commissions. Of course, a price increase of that magnitude within a single day is highly unlikely.

Likewise, a buy and hold investor may purchase stocks, exchange-traded funds (ETFs), or mutual funds and hold onto them for years or even decades. The payoff comes if they sell those securities later for more than what they paid for them.

Recommended: How to Know When to Sell a Stock

4 Tips on How to Buy Low and Sell High

The following tips may help investors develop a buy low, sell high strategy (or avoid the buy high, sell low trap).

1. Investing with the Business Cycle

Understanding stock market cycles and their correlation to the business cycle can help when determining how to buy low and sell high.

The business cycle is the rise and fall in economic activity that an economy experiences over time. If the business cycle is in an expansion phase and the economy is growing, for instance, then stock prices may be on the upswing as well. On the other hand, if it’s become apparent that economic growth has peaked, that could be a signal for stock price drops to come as an economy slows or enters into a recession.

But like most strategies that aim to buy low and sell high, investing with the business cycle can be challenging.

It’s also important to remember that security prices typically don’t move in a straight line up or down in lockstep with a specific phase of the business cycle. Instead, most securities experience a level of volatility, where prices move up or down (or both) in the short term before reverting to the mean.

2. Look at Stock Pricing Trends

Investors who want to buy low may find it helpful to pay attention to pricing trends or technical indicators. Tracking trends for individual securities, for a particular stock market sector, or the market as a whole can help investors get a sense of what kind of momentum is driving prices.

For instance, an investor wondering how low a stock price can go can look at technical indicator trends to identify significant pricing dips or rises in the stock’s history. This could, potentially, help determine when a stock or security has reached its bottom, opening the door for buying opportunities. Conversely, investors may also use trends to evaluate when a stock has likely reached its high point, indicating that it’s prime time to sell.

3. Use Moving Averages

Moving averages are a commonly used indicator for technical analysis. A moving average represents the average price of a security over a set time period. So to find a simple moving average, for example, an investor would choose a time period to measure. Then they’d add up the stock’s closing price each day for that time period and divide it by the number of days.

The moving average formula can help compare stock pricing and determine points of resistance. In other words, they can tell investors where stock prices have topped out or bottomed out over time. Moving averages can smooth out occasional pricing blips that temporarily push stock prices up or down.

Comparing one moving average to another, such as the 50-day moving average to the 200-day moving average, can also help investors to spot sustainable up or down pricing trends. All this can help when deciding when to buy low or sell high.

4. Beware of Investor Bias

An investor bias is a pattern of behavior that influences reactions to a changing market. For example, noise trading happens when an investor makes a trade without considering the state of the market or timing. The investor may follow pricing trends but make trades without considering whether the time is right to buy or sell.

Investors who give in to biases may find themselves following a herd mentality when it comes to making trades. If news of a pending interest rate hike sparks fear in the markets, investors may start panic selling in droves. This can, in turn, cause stock prices to drop. On the other hand, irrational exuberance for a specific stock or type of security can push prices up, causing an unsustainable market bubble.

Investors who can refrain from being influenced by the crowd stand a better chance of making rational decisions about when to buy or when to sell to either maximize profits or minimize losses.

Pros and Cons of Buy Low, Sell High

A buy low, sell high strategy can work for investors, but while it’s a worthy goal, the implementation can be difficult. Investors who are too focused on timing the stock market can run into difficulties.

Benefits of Buy Low, Sell High

Buying low and selling high can yield these advantages to investors.

• Potential bargain-buying opportunities. If investor sentiment is causing fear and panic to take over the market and push stock prices down, that could open a door for buy low, sell high investors as they buy the dip. Individuals who ignore market panic could purchase stocks and other securities at a discount, only to benefit later once the market rebounds and prices begin to rise again.

• Potential for high returns. An investor skilled at spotting trendings and reading the market cycle could reap sizable profits using a buy low, sell high strategy. The wider the gap between a stock’s purchase and sale price, the higher the profit margin.

• Beat the market. A buy low, sell high approach could also help investors to beat the market if their portfolio performs better than expected. This might be preferable for active traders who forgo a passive or indexing approach to investing.

Disadvantages of Buy Low, Sell High

Attempting to buy low and sell high also holds some risks for investors.

• Timing the market is imperfect. There’s no way to time the market and which way stock prices will go at any given moment with 100% accuracy. So there’s still some risk for investors who jump the gun on when to buy or sell if stocks have yet to reach their respective lowest or highest points.

• Being left out of the market. Investors who want to buy low and sell high would not want to buy securities when the market is up. That practice, however, could lead to substantial time out of the market entirely, especially during bull markets.

• Biases can influence decision-making. Investment biases and herd mentality can wreak havoc in a portfolio if an investor allows it. Instead of buying low and selling at a profit later, investors may find themselves in a buy high, sell low cycle where they lose money on investments.

• Pricing doesn’t tell the whole story. While tracking stock pricing trends and moving averages can be useful, they don’t offer a complete picture of what drives pricing changes. For that reason, it’s important for investors also to consider other factors, such as consumer sentiment, the possibility of a merger, or geopolitical events, influencing stock prices.

Alternatives to Buy Low, Sell High

Buying low and selling high is not a foolproof way to match or beat the market’s performance. It’s easy to make mistakes and lose money when attempting to time the market unless, of course, you possess a crystal ball or psychic abilities.

There are, however, other ways to invest without trying to time the market. Take dollar-cost averaging, for example. This strategy involves staying invested in the market continuously through its changing cycles. Instead of trying to time when to buy or sell, investors continue making new investments. Over time, the highs and lows in stock pricing tend to average out.

A dividend reinvestment plan (DRIP) is another option. Investors who own dividend-paying stocks may have the opportunity to enroll in a DRIP. Instead of receiving dividend payouts as cash, they’re reinvesting into additional shares of the same stock. Similar to dollar-cost averaging, this approach could make it easier to ride out the ups and downs of the market over time and eliminate the stress of deciding when to buy or sell.

Investing with SoFi

A buy low, sell high investment strategy is fairly simple, in that it involves buying a security at one price, and selling it after, or if, it appreciates. Obviously, there’s no guarantee that any asset will appreciate, so it’s possible investors could lose money – but they could also see positive returns, too.

Further, the strategy can be challenging to implement. Executing a buy low, sell high plan successfully means researching and doing due diligence to understand how the market works.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Is buying low and selling high a good strategy?

Buying low and selling high can generally be a good strategy as it allows you to take advantage of price movements in the market. However, there is no guarantee that this strategy will always be successful, and you may end up losing money if the market conditions are not favorable.

Is it illegal to buy low and sell high?

There is no law against buying low and selling high. Most investors make money by buying a security at a low price and then selling it later at a higher price.

Why do you sell high and buy low?

Many investors sell high and buy low because they want to take advantage of market conditions to realize a positive return. When the market is high, investors may sell an investment they purchased at a lower price to make a profit.

Photo credit: iStock/katleho Seisa

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Apache is functioning normally

September 28, 2024 by Brett Tams

If you are like many people, you may have asked yourself at some point in life, “Will I be rich one day?” No one knows for sure what the future holds, but there are a few things you can do to increase your chances of becoming a millionaire.

One of the best ways to amass wealth is to invest in assets that will appreciate over time. But while that sounds good, finding a starting point can be challenging for some. For example, you can start your own business or work hard to climb the corporate ladder, but which is the better option? And you’ll want to invest the money you earn. But where?

Whatever you do, it’s smart to remember that it’s okay to take risks and make mistakes; learning from your experiences is a critical component of success. Above all, remember that wealth accumulation is a marathon, not a sprint. It takes patience, commitment, and perseverance to achieve financial security.

Table of Contents

Key Points

• Early financial success, such as earning money from a young age, can set the stage for future wealth.

• Taking decisive action and managing finances proactively are common traits among those accumulating wealth.

• Outspokenness and a unique personal style often distinguish wealthy individuals in social settings.

• A strong sense of urgency and goal-oriented behavior are typical among successful wealth builders.

• Distinguishing between needs and wants is crucial for effective financial management and wealth accumulation.

What Is a Sign of Wealth?

Often, specific aspects of one’s physical appearance such as luxury cars and designer clothes are taken as a sign of being rich or wealthy. Unfortunately, these signs aren’t always reliable. For example, some people may live in an extravagant home, giving off the appearance of wealth, but it may simply mean that they can access money — perhaps through credit, savings, or even family.

Real signs of wealth are often more attitudinal, and many can be cultivated through patience and practice. Here are a few people who were early millionaires due, in large part, to their drive and focus.

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Recommended: What Credit Score is Needed to Buy a Car

Examples of Millionaires Under 30

With the advent of the tech industry, smart investments, business ventures, or inheritances — i.e., the great wealth transfer — millionaires under 30 are becoming increasingly common. Here are three examples of millionaires who earned their fortunes before turning 30.

Mark Zuckerberg: Zuckerberg created Facebook at age 19 while attending Harvard University. The idea was to match photos with the names of other students. And in just a few short years, Zuckerberg became a self-made millionaire at age 22.

Sergey Brin: Brin is a Russian American computer scientist who, at the age of 25, co-founded Google, Inc., and became a millionaire. Google is one of the world’s most valuable companies, and today, Brin’s net worth is estimated to be upwards of $120 billion.

Alexandr Wang: Wang founded Scale AI in 2016 as a way to analyze data far faster than any human could. Today, Scale AI’s technology has been used by the U.S. Airforce and U.S. Army, as well as 300+ companies. Today, Wang’s net worth is estimated to be over $2 billion, and at age 27, he’s among the youngest self-made billionaires.

Recommended: Does Net Worth Include Home Equity?

9 Signs of Wealth to Look Out For

In the U.S. 1% of earners take home nearly 30% of the country’s income, so it’s essential to know what signs to look for when trying to identify if someone is wealthy. While there’s no one-size-fits-all definition of wealth, some cues can give you a good idea of whether you or someone you know is doing well financially. (And a net worth calculator can help you tally up your own assets.)

Here are six signs of wealth to look out for that indicate you’re on track to becoming wealthy:

1. You’re an Overachiever

It’s hard to be modest when you’re an overachiever. You know you’re good at your work and are not afraid to let everyone know. Overachievers work hard and try harder. While this may make some people uncomfortable, it comes naturally to you.

2. You Started Making Money At a Young Age

It is not uncommon to see young adults with successful careers in today’s society. While some people played with toys as a child, others learned how to make money. For example, it could mean that you had a paper route or a babysitting business.

Making money at a young age, or any age for that matter, is not always easy. But an early start in earning, tracking your money, and investing can put you on an accelerated schedule when it comes to building your wealth and becoming a millionaire.

3. You Take Action

There will be times when things happen that are out of your control. You may feel stuck and as if you have no way to change your circumstances. However, these are the times when you must take action to create the life you want to live. For example, it might mean organizing your finances to get what you want. And, sometimes you’ll have to take some risks and go for it. It can be scary, but it’s worth it to achieve your goals.

When faced with a difficult situation, it’s essential to remember that you always have a choice. You can choose to give up, or you can choose to fight for what you want. Only by taking action can you make progress and take a step towards achieving financial wellness. So don’t be afraid to step up and take on whatever life throws your way — you can do it!

4. You Are Outspoken

In a society where people get judged by how much money they have, it is no surprise that many go out of their way to keep up appearances. And while some may try to blend in with the wealthy crowd, a wealthy person will often stand out with his unique style or outgoing sense of humor. Wealthy people tend to feel less inhibited and are more likely to speak their minds. They may also be less concerned with the rules and more likely to take risks.

5. You Possess a Sense of Urgency

When it comes to the wealthy, there are a few telltale signs that set them apart. One of these is their sense of urgency — they don’t like wasting time and are always moving forward. This urgency allows them to set financial goals, achieve them, and maintain their wealth. It’s also one of the reasons why they may seem constantly stressed out — they’re always trying to do more.

6. You’re Focused More on Saving Than Earning

It doesn’t matter if you earn $50,000 or $250,000 a year. Unless you consistently spend less than you make, you’ll never get ahead financially. People who focus on their budget and saving their disposable income understand how to live within their means and focus on what’s most important: saving money for the future.

7. You Know the Difference Between Needs and Wants

In our materialistic society, getting caught up in the “must-have” mentality is easy. Advertisements are everywhere, and social media posts tell us we need the next latest and greatest products. It can be challenging to discern between the things we need and want.

A sign of a wealthy person is their ability to distinguish between the two. They know which items are essential for their well-being and those which would be nice to have. Advertising or peer pressure doesn’t work on rich people, and their possessions don’t rule them.

Recommended: Should I Sell My House Now or Wait?

Spiritual Signs You Will Be Rich

Are there spiritual signs that you can be a wealthy person? Some people believe steadfastly in spiritual and other signs of wealth and luck. Here are a couple of examples:

Gravitating to the Lucky Number, 8

In Chinese culture, the number 8 is considered a lucky number. Individuals who gravitate toward this number may believe it will bring them good fortune. Some people might even go as far as to change their phone number or social media handle to include the digit 8.

A Psychic Confirms Wealth is Coming

Some people consult psychics to get guidance on anything from love to health and even money. While many psychics will say they can tune into your energy and give you specific information about your future, and many people believe their predictions, you may be better off putting the money you’d pay the psychic into savings.

Pros and Cons of Having Signs of Wealth

There are very few times when it can be helpful to show off your wealth to others. Indeed, showing off can make others feel intimidated. Additionally, it can attract unwanted attention from criminals or others who want to take what you have. And having too many signs of wealth can make you a target for scams or other fraudulent schemes.

The Takeaway

If you identify with any of these habits you’re likely well on your way to building a significant amount of wealth. However, it is essential to remember that wealth accumulation is not a one-time event; it’s a way of life. It’s something you’ll need to make a habit of, if you want to succeed. For many people who work hard, stay focused, and are disciplined, it is possible.

And as you’re building your wealth, tracking your income and expenses is one of the primary ways to manage your money. SoFi’s money tracker app can help you keep track of your funds so you can make the best spending decisions and start building your very own fortune today.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

At what point is someone considered wealthy?

There is no magic dollar amount that indicates someone is wealthy and one person’s definition may not be the same as another’s. But in 2022, the top 1% of earners took home an average of $785,968, according to the Economic Policy Institute. Of course the amount you earn is only part of the wealth story. How much of your income (or inherited wealth) you retain is affected by your spending habits.

What are invisible signs of wealth?

People who are stealthily wealthy still might have a “tell” that gives them away. Use of private banking or wealth management services would be one example. Another might be not working but being able to maintain an expensive hobby such as riding horses or boating. Buying bespoke products, whether tailor-made clothing or custom-designed furniture, is another subtle giveaway.

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Source: sofi.com

Apache is functioning normally

September 28, 2024 by Brett Tams

Columbia is a South Carolina city full of history, culture, and southern charm. It’s home to a thriving university and provides a range of benefits for locals.

Whether you’re considering moving to Columbia for work, school, or a new start, there are a few factors to weigh before making your decision. Below, we’ve outlined 11 of the top pros and cons to help you determine if living in Columbia is right for you.

Columbia at a glance

1. Pro: Home to the University of South Carolina

Living in Columbia means calling one of the best South Carolina college towns home. The University of South Carolina (USC) is not only a world-class university but also a key player in the city’s economy and culture. From sports to concerts, there’s always something happening on or around campus.

2. Con: Hot and humid summers

While not one of the hottest cities in the U.S., the city’s summers can be brutal. Temperatures in Columbia often soar into the high 90s, with humidity levels making it feel even hotter. For those unaccustomed to such weather, adjusting to Columbia’s summer heat might be a challenge.

3. Pro: Affordable cost of living

One of the most attractive aspects of living in Columbia is its affordability. The cost of housing is significantly lower compared to the national median of $434,050. Apartments in Columbia are reasonable as well, going for around $1,196 on average. Whether you’re renting or buying, you’ll likely find more affordable options in Columbia.

4. Con: Lacking public transportation

Columbia is a car-dependent city, and its public transportation options are limited. The COMET bus system operates throughout the city, but coverage is sparse, and services may not be frequent enough for those relying solely on public transit. If you plan on living in Columbia, owning a car will likely be necessary as walkability varies greatly throughout the city.

5. Pro: Historical attractions

Columbia is full of history, and residents enjoy visiting landmarks like the South Carolina State House and the Columbia Museum of Art. With a strong sense of Southern heritage, the city provides plenty of opportunities for historical exploration and cultural enrichment.

6. Con: Pollen and allergies

Spring in Columbia brings beautiful blooms, but also a high pollen count. For those who suffer from allergies, living in Columbia might mean dealing with frequent bouts of congestion and sneezing during the spring and early summer months.

7. Pro: Growing job market

Columbia has a growing job market, particularly in education, healthcare, and government. With USC, numerous hospitals, and the state government headquartered in the city, there are plenty of employment opportunities. Major companies like BlueCross BlueShield of South Carolina and Michelin also contribute to the job market.

8. Con: Student-focused nightlife

Despite being one of the best college towns in South Carolina, the nightlife in Columbia doesn’t compare to larger South Carolina cities. Many of the city’s late night spots are concentrated around USC’s campus, meaning the selection can be student-oriented. For those seeking a wide variety of nightlife options, the scene here may feel limited.

9. Pro: Stunning natural beauty

Nature lovers will appreciate the abundance of outdoor spaces in and around Columbia. Riverfront Park and Congaree National Park offer excellent hiking, kayaking, and wildlife observation. You won’t have to travel far from the city to enjoy some of the most beautiful scenery in all of South Carolina.

10. Con: Traffic congestion

Columbia’s traffic can be frustrating, particularly during rush hour or when major events are happening at USC. The city’s roadways weren’t designed for high volumes of cars, and this can lead to congestion, especially on key routes like I-26 and I-20.

11. Pro: Mild winters

If you’re tired of harsh winters, Columbia’s mild climate will be a relief. Winter temperatures in the city rarely dip below freezing, making it an ideal place for those who prefer a warmer climate year-round. The lack of snow also means fewer weather-related disruptions.

A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.

Source: rent.com

Apache is functioning normally

September 27, 2024 by Brett Tams

A tradeline is the term used by the three major credit reporting bureaus — Equifax®, Experian®, and TransUnion® — to describe any one of the accounts listed on your credit report. Each account has its own tradeline, and each tradeline contains information about the creditor, your account, and your debt.

Tradelines make up a good portion of your credit report, which means the information within them plays a big role in determining your credit score. And, as you probably know, your credit score is an important number that can prove your creditworthiness and help you snag lower rates on loans, among other benefits.

The more you understand about what a tradeline is and what creditors see when they read your credit report, the better equipped you’ll be to use that information to maintain the best credit score possible.

What Is a Credit Tradeline?

A tradeline in a credit report is a record for each of the credit accounts that you have. This includes revolving credit accounts, such as credit cards, and installments loans, such as student loans, auto loans, mortgages, and personal loans.

Each tradeline may contain a host of information reported by the creditor about themselves and your debt.

Recommended: Tips for Using a Credit Card Responsibly

What Information Is Reported by a Creditor?

When it comes to knowing what a tradeline is on a credit report, you may be surprised by just how much intel is shared. Quite a lot of information is reported about a creditor and your debt. The list includes:

• Creditor’s name and address

• Type of account

• Partial account number

• Date the account was opened

• The account’s current status

• Date of latest activity

• Original loan amount

• Credit limit

• Current or recent balance

• Monthly payment

• Payment history

• Date the account was closed, if this situation applies

By looking at a tradeline, you can view all of the most recent information reported by your creditors to the three credit reporting bureaus, all in one place. This is the information that will have an impact on your credit score.

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Recommended: When Are Credit Card Payments Due?

What Other Information Is Gathered by the Credit Bureaus?

In addition to the information listed above, the credit reporting bureaus will also gather:

• Personal information, including your name, date of birth, Social Security number, home address, phone number and employer

• Information from the public record, including bankruptcies

• Who has made recent inquiries about your credit and when (for example, if you’ve applied for new credit and a hard inquiry has been made)

The credit bureaus don’t know everything about you, however. They don’t have access to information such as your income, bank account balances, or marital status, though the report could include a spouse’s name if a creditor reports it.

How a Credit Tradeline Works

Tradelines are like the heartbeat of your credit report. Without them, you can’t have a score. If you are keeping your credit utilization low (that is, keeping your balance low vs. your limit on credit cards), paying your bills on time, and showing that you are a dependable borrower, your tradelines will be positive. Your three-digit credit score number should be in good shape.

If, on the other hand, you pay your bills late, skip payments, and rack up loads of debt, your tradelines will reveal negative information. Your score is likely to be low or decline.

What Are Tradelines for Credit Used for?

Creditors use your score to help them determine whether or not to extend credit to you and what terms and interest rates they’re willing to offer. Good credit is important. For example, if you have a good credit score, your lender may see you as less of a risk and offer a lower interest rate on a loan.

Higher-risk loan applicants with lower scores may be offered much higher rates. In other words, buying a car or home will be that much more expensive if your score is low.

While your credit score gives lenders an overall sense of the shape of your personal finances and credit history, it doesn’t give them any details. For those, they may look at individual tradelines contained within your credit report.

How Tradelines May Affect Your Credit and Banking

Your tradelines have a direct impact on your credit, since activity within the account is used to calculate your credit score.

Here’s a closer look at the five factors used to generate your FICO® score, and the weightings used for each.

• Payment history: 35%

• Amounts owed: 30%

• Length of credit history: 15%

• New credit: 10%

• Credit mix: 10%.

Any credit activity that pertains to one of those categories can have an impact on your score when reported in your tradeline. For example, delinquent payments could damage your credit history. Or closing an account may have an impact on your length of credit history.

When Are Credit Tradelines Removed?

From time to time, a tradeline can be removed from your credit report. For example, if you’re an authorized user of a credit card and you are removed from the account, the tradeline will be dropped from your credit report in about two months.

When you close an account, the tradeline isn’t removed immediately. In fact, if that account has a positive impact on your credit score, the tradeline may stay on your report for as long as 10 years. Nice!

Worth noting: If a tradeline was opened fraudulently — someone opened a credit line or took on a loan in your name without your knowledge — you may ask to have the tradeline removed. In fact, it can be a very good idea to do so. It can help build your credit score since many fraudulent accounts contain negative credit information.

What Happens to Your Banking When a Tradeline Is Removed?

Removing a tradeline can be a positive or negative thing for your credit. If the tradeline was associated with positive information, removing it can hurt your credit. Luckily, a positive closed account stays on your report for a decade.

Closing an account with negative information can be a plus for your credit score. If an account is delinquent when it’s closed, the entire account will be removed after seven years.

How Is This Information Collected?

Creditors report the information collected in the tradelines to the credit reporting bureaus. They do so voluntarily, at their discretion, and on their own timeline, though the credit bureaus prefer that credit information is updated every month.

Each credit bureau may use different sourcing for the information they gather. What’s more, while some creditors will report to all three bureaus, some may only report to two, one, or even none of them.

Why You Should Check for Errors

As we’ve mentioned above, your tradelines are the source of information that determines your credit score. So it’s important to check your credit report regularly to make sure that there are no errors negatively impacting your score. Inaccurate information could also be a sign of identity theft.

You can request one free credit report from each of the three major credit reporting bureaus each year, according to the Fair and Accurate Credit Transactions Act. Since you can get three reports each year, you could even request one report every four months, to help ensure your finances are as up-to-date as possible. A popular site to check your credit report is Annualcreditreport.com .

You may also consider signing up with a credit score monitoring service.

Can You Buy New Tradelines?

Some companies will offer the opportunity to buy tradelines to help build your score. It’s not necessarily advisable to purchase from these third-party services.

First, a little background info: When you’re trying to build credit, one common strategy is to become an authorized user on an already existing account. For example, your parents might make you a user on their credit card. Good credit history and maintaining a low balance on this account could help you build credit.

When you purchase a tradeline, you enter into a similar agreement with a stranger. You’ll pay a third-party service to set up the transaction. You won’t know the person whose account you’re joining, and you will not be able to use the account. The account will usually remain open to you for a short period of time only.

You are paying for the privilege of being on this account, which will supposedly help positively impact your credit rating.

Is Buying Tradelines Legal?

Technically speaking, buying tradelines through a reliable tradeline service is legal. Congress has said that under the Equal Credit Opportunity Act, authorized users cannot be denied on existing credit accounts, even if the person being authorized is a stranger.

That said, there are times when working with a tradeline service can lead to serious issues:

• A company may say you can hide bad credit or a bankruptcy using a credit privacy number. In reality, this might be someone else’s Social Security number, landing you in the middle of an identity theft scam.

• You might also find yourself buying into an account that’s gone into default. You could end up as the primary owner of the account, which could hurt your credit.

• Also, watch out for companies that use a process called address merging in which the company claims the authorized user (that would be you) lives at the same address as the account holder. This is fraudulent, and it indicates that you are not working with a reliable company.

Risks of Buying Credit Tradelines

Whenever you give out your personal information, including to a tradeline supplier, you are putting yourself at risk of identity theft.

By attempting to take a shortcut to build credit, you also won’t be doing yourself any favors. Beyond the risk of identity theft and other entanglements, you’ll be robbing yourself of the chance to build good financial habits. And this could come back to bite you in the end if you never learn to manage debt responsibly on your own.

How Banking Can Improve Your Credit Report

If you’re looking to positively impact your credit score, there are a number of alternatives to buying tradelines that you can pursue.

• Always pay your bills on time. Your payment history makes up the bulk of your credit score. Pay close attention to your checking account and bills; make sure you can and do make regular debt payments on time and in full. Consider automated bill pay to help ensure you never miss a payment.

• Pay down debts. Your available credit plays a large role in the calculation of your credit score. Your credit card utilization ratio, as we mentioned above, shows how much or your available credit you’re using. You can calculate your ratio by dividing credit card balance by loan limit. If your utilization rate is over 30%, build your credit score by paying down your balance. If possible, aim to keep your score at under 10%.

• Check your credit reports regularly. Learn to read your credit report. Alert the credit bureaus to any inaccuracies. Your credit score should change for the better shortly after a mistake is corrected.

Alternatives to Credit Tradelines

If you’re trying to build credit over time, there are also alternatives to tradelines.

• Become an authorized user. You may wonder, “Isn’t this what purchasing a tradeline is?” The answer is yes, but it’s far better to become an authorized user on the account of someone you know well or are related to. You’ll have the opportunity to use the account and learn healthy credit habits. Just don’t abuse this privilege.

• Apply for a secured credit card. Secured credit cards require you to make a security deposit to receive a line of credit. This deposit often becomes your credit limit. These cards are easier for people with no credit history to qualify for, and they help you build credit.

• Get credit for paying bills. You might look into services that allow you to get credit for on-time payment of bills that usually don’t count towards your credit score. This may include bills for everything from your utilities to your streaming service.

The Takeaway

The tradeline for each of your revolving credit or installment accounts contains all the information necessary to generate your credit score. Understanding your tradelines can help you understand the ways in which you can build your score. Manage those tradelines well, and you may unlock lower interest rates on loans and other elements of financial health.

Here’s another way to boost your financial health: Find the right banking partner.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

Are tradelines good for credit?

The information contained with your tradelines is used to generate your credit score. It reflects how well you manage credit and can therefore be either good or bad, depending on such factors as whether you have been paying back debt on time and how much debt you are carrying.

How much will a tradeline build my credit?

Adding a tradeline can actually lower your credit in the short-term. For example, it will lower the average age of your accounts, which can have a negative impact on your length of credit history. However, if you can maintain the account over the long-term and keep up with payments, the new account may help build your credit score.

How do I get tradelines on my credit?

Tradelines are added to your credit report when you open new lines of credit or take out new loans. A tradeline is also added when you become an authorized user on another person’s account.

Photo credit: iStock/miniseries

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SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

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Apache is functioning normally

September 27, 2024 by Brett Tams

While there’s no official guideline on what makes a salary “good,” a $20,000 salary is not typically enough for a household to live comfortably in most parts of the United States. Certainly, each person’s situation is unique in terms of their assets and expenses, but an individual making $20K a year may have a hard time making ends meet. They might need to rely on assistance from family, friends, and/or the government to afford basic necessities.

A $20,000 salary puts a single person above the poverty threshold for 2024. An individual supporting themselves plus one or more people on $20K a year, however, will live below the poverty threshold. With the record-high inflation we’ve seen in recent years, affording basic needs on a $20,000 salary has become even more challenging.

So is $20K a year good? While a $20,000 salary averages out to more than the federal minimum wage of $7.25/hour for full-time work, it is likely not an adequate income for anyone living independently and especially those with a family. In this piece, we’ll cover:

• The current American median income.

• Is $20K a year good?

• A breakdown of a $20,000 salary.

• The best and worst places to live on $20,000.

• Tips for living on $20K a year.

Factors to Determine if a $20,000 Salary Is Good

A $20,000 salary will be challenging for anyone to live on, but a few factors may determine if it can be done — or if it’s impossible:

• Taxes: If you are filing singly, a $20,000 salary will put you at the 12% federal income tax bracket. You may owe additional taxes for your state, city, and/or school district. For the sake of example, assume a flat 15%. That means, although you make $20,000, you only bring home $17,000 after taxes.

• Family size: Single individuals without children can make $20,000 stretch more easily. Two or more people living off a $20,000 salary will face more challenges.

• Location: Money goes further in some places more than others. If you live in an area with a low cost of living, a $20,000 salary may be more manageable. But if you live in a popular city, $20,000 a year may not even cover rent.

• Debt: If you have debt, it can be more challenging to allocate your limited money to basic necessities and important financial goals, like building an emergency savings fund. If you are dealing with high-interest debt, you probably know how quickly this debt can grow when you are only paying the minimum amount due.

How Does a $20,000 Salary Compare to the American Median Income?

According to the most recent U.S. Census Bureau report, median household income was $80,610 in 2023. Keep in mind, though, that this number represents all households, which may include more than one earner. According to the Bureau of Labor Statistics, median weekly earnings for American workers was $1,117 in 2023, which comes out to $58,084.

Either way, $20,000 is far below either estimate for a median income. If you earn $20,000 and have a domestic partner or spouse who earns additional income, your salaries together might get you closer to the median income level.

$20,000 Salary Breakdown

Again, no judgment here: It’s not a matter of if a $20,000 salary is good or bad. To someone just out of high school, $20K a year might look like a good entry-level salary. But anyone who has handled monthly bills like rent and utilities will likely recognize that a $20,000 salary may be insufficient.

Here’s how a $20,000 annual salary breaks down:

• Monthly income: $1,666.66

• Biweekly paycheck: $769.23

• Weekly income: $384.62

• Daily income: $76.92 based on working 260 days a year

• Hourly income: $9.62 based on working 2,080 hours a year

These estimates do not account for taxes. In the example above, a $20,000 salary may shrink to $17,000 after Uncle Sam has taken his cut.

Recommended: Is Making $100K a Year Good?

Can You Live Individually on a $20,000 Income?

It is possible to live individually on a $20,000 income, but you will likely only be able to afford the items on your basic living expenses list if you aren’t able to supplement your income. Living comfortably — with easy access to good health care (including mental health), balanced nutrition, safe housing, and efficient transportation — may be far more challenging on $20,000 a year.

If you make $20,000 a year, you might be able to minimize monthly expenses by looking for government assistance, getting a roommate or moving in with family, cooking at home, and using an online bank account with a high interest rate and automatic savings features.

How Much Rent Can You Afford Living on a $20,000 Income?

Wondering how much you can afford to spend on rent? Researchers have long argued that you should spend no more than 30% of your income on housing. With rising inflation and increasing rent prices, however, that’s not always possible.

If you were to stick to the 30% rule (and forget about income taxes for the sake of the example), that means you can spend $6,000 a year on rent, or $500 a month. But the median cost of rent in the U.S. was $2,100 as of September 2024, according to Zillow. That’s about four times what you could afford on $20K a year.

To afford rent on a $20,000 salary, it’s a good idea to live in a place with a very low cost of living and to have one or more roommates who can help share living expenses of rent and utilities with you. Moving in with family is also a solution if you cannot afford rent on your salary.

Best Places to Live on a $20,000 Salary

If you are making $20,000 a year (or $9.62 an hour), it might be a good idea to explore cities and states with a low cost of living.

These are the five least expensive cities to live in for 2024-2025, per U.S. News:

• Fort Wayne, Indiana

• Huntsville, Alabama

• Wichita, Kansas

• Springfield, Missouri

• Davenport, Iowa

Living outside a city altogether is usually more affordable. Consider a rural location in one of these five cheapest states to live in:

• Arkansas

• Mississippi

• Alabama

• West Virginia

• South Dakota

Recommended: Typical Monthly Expenses for a Single Person

Worst Places to Live on a $20,000 Salary

On the flip side, there are some major cities that are exorbitantly expensive to live in. If possible, it’s a good idea to avoid living in the following locations when you are living on $20,000 a year:

• Hartford, Connecticut

• Los Angeles, California

• Miami, Florida

• New Haven, Connecticut

• New York City, New York

California cities clearly carry a high cost of living, but other states are also expensive. If you have a $20,000 annual salary, it’s a good idea to steer clear of any of the five most expensive states to live in:

• Hawaii

• New York

• California

• Massachusetts

• Oregon

Is a $20,000 Salary Considered Poverty?

A $20,000 salary is above the poverty line for an individual, but if you are a couple or a family of three or more people living on a $20,000 salary, the government considers you to be below the poverty line.

These numbers do not consider factors like variable cost of living. A localized poverty line could be more telling, especially if you live in a place with a high cost of living. If you are, say, living in a pricey city and earning $20,000 a year, you might be feeling the financial pinch more.

Get up to $300 when you bank with SoFi.

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Tips for Living on a $20,000 Budget

While advocating for a higher salary can infuse your line item budget with more funds, you can’t necessarily count on a raise. Taking other steps now may make it easier to live on your $20,000 salary.

Finding Out What Assistance You Qualify For

If you are making $20,000 or less, you may qualify for government assistance. Here are a few actions to consider taking:

• Work with the U.S. Department of Housing and Urban Development for assistance with rent, including the Section 8 program.

• Determine if you are eligible for assistance with grocery bills through the Supplemental Nutrition Assistance Program (SNAP).

• Research the Low Income Home Energy Assistance Program (LIHEAP) to help with utilities.

• See if you can lower your phone bill through the Lifeline Modernization Order .

• Find out if you are eligible for free or low-cost health coverage through Medicaid and the Children’s Health Insurance Program (CHIP).

Coming Up With a Housing Plan

If you do not qualify for rental assistance from the government, you may need to come up with another plan to avoid high rent costs. Roommates can be a good way to keep rent low.

Alternatively, family and friends may be willing to offer free lodging while you save money. While it can be hard to lean on others in this way, it can be a form of financial self-care to do so until you are able to be out on your own. If you do move in with a loved one, just remember to be helpful around the house and chip in with utilities and groceries if you’re able.

Cutting Costs

After reducing your largest cost (rent), it may be possible to reduce other costs in your budget. For example, a car payment, gas, and car insurance can be costly monthly expenses. If you live in an area with great public transportation or are comfortable walking and riding a bike, you may be able to get around without owning your own vehicle.

Other costs you might be able to cut include streaming services, gym memberships, and bills from dining out.

Getting on a Budget

After finding low-cost housing and trimming unnecessary expenses, it’s a good idea to make a monthly budget that accounts for your post-tax income and your monthly expenses.

Not sure how to budget on a $20K salary? Taking care of all necessary bills (housing, utilities, groceries) is the perfect first step. Once you’ve accounted for those monthly expenses, see how much you can allocate to paying down debt or building your savings.

Recommended: How to Save Money From Your Salary

Avoiding the Wrong Kinds of Debt

Taking on debt is often necessary — when buying a house, purchasing a car, or even going to college. But when you make a low salary and struggle to pay the bills, it can be tempting to take out a payday loan or overuse a high-interest credit card.

When possible, it’s a good idea to avoid high-interest loans. In fact, instead of taking on more credit card debt, you may be able to take control of your bad debt by applying for a debt consolidation loan. These are typically personal loans that charge an interest rate that may be significantly lower than your credit cards’ rates. You use the loan to pay off the cards and then you work to eliminate the personal loan.

You might also meet with a counselor from a nonprofit debt counseling organization like the National Foundation for Credit Counseling, or NFCC .

Recommended: Debt Repayment Strategies

Supplementing Your Basic Income

You might also consider ways to bring in more income to pump up your spending power. This could include seeing if additional hours are available at your primary workplace, as well as taking on a seasonal part-time job or starting a side hustle. These are all ways to use some of your leisure time to bump up your income.

The Takeaway

A $20,000 is usually not enough for a family to live on, and it may be difficult for individuals to get by on this salary too. It may be wise to research government assistance, look for roommates to lower housing costs, and build (and stick to) a monthly budget that prioritizes paying down debt and building emergency savings. These steps can help you live on a $20,000 annual income.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

Can you live comfortably on $20,000 a year?

It can be difficult for an individual to live comfortably on $20,000 a year. With the right assistance from friends, family, and the government, however, it may be possible to meet basic needs. Families will face more challenges living off $20,000 a year.

What can I afford making $20K a year?

A $20,000 salary may leave room in your budget for the most basic expenses: rent, utilities, transportation, and groceries. Even then, getting government assistance and a roommate might be necessary for managing monthly expenses on $20K a year.

Is $20,000 a year middle class?

According to the most recent data from the Pew Research Center, middle class, middle-income households have incomes ranging from about $56,600 to $169,800. Thus, a family living on $20,000 is not middle class; it’s actually below the poverty level. While an individual earning $20,000 a year is not below the poverty line, they are still not considered middle class.

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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOBNK-Q324-098

Source: sofi.com

Apache is functioning normally

September 27, 2024 by Brett Tams

In the early hours of July 19, cybersecurity company CrowdStrike (CRWD) published a faulty software update that temporarily disabled more than 8.5 million PCs that use its services.

The outage caused chaos across banking, airlines, health care and several other industries, and it sent CrowdStrike shares plummeting more than 20% over the following two trading days.

It also drew attention to the importance of reliable cybersecurity companies — and to the potential volatility of cybersecurity stocks.

What are cybersecurity stocks?

Cybersecurity stocks are shares of publicly-traded companies that protect computer systems from digital threats.

Some, such as CrowdStrike, Fortinet and Palo Alto Networks, are completely focused on cybersecurity, while others, such as Datadog, Cisco, Broadcom and Dell, are diversified technology companies that provide cybersecurity services along with other offerings.

How do major glitches and cyberattacks affect cybersecurity stocks?

According to Roosevelt Bowman, an investment strategist with Bernstein Private Wealth Management, the effect of major technical outages on cybersecurity companies is hard to predict. “It’s not often that you see a single event ‘doom’ a company,” Bowman says. However, he described two ways in which a bad-news event such as an outage can push down a stock’s price in the long term.

The first is if the event in question pushes down a company’s expected future earnings to a point where it looks too expensive at its current price.

The second way in which a scandal such as a technical outage can hurt the long-term trajectory of a stock, according to Bowman, is if there are “subsequent failures.” CrowdStrike’s software has been linked with minor computer outages before, although it has never experienced an outage on the scale of the July 19 incident. Only time will tell if it can rebuild its reputation from here.



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7 best-performing cybersecurity stocks as of September 2024

Below are the seven best-performing stocks in the Nasdaq CTA Cybersecurity Index that trade on major U.S. exchanges, ranked by one-year performance.

		Performance (Year)
	Broadcom Inc
	Varonis Systems Inc
	Crowdstrike Holdings Inc
	Leidos Holdings Inc
	CyberArk Software Ltd
	SentinelOne Inc
	Palo Alto Networks Inc

Source: Finviz. Data is current as of Sep. 24, 2024, and for informational purposes only.

How to buy cybersecurity stocks or cybersecurity ETFs

Bowman says that his firm is “following” cybersecurity stocks, in light of the rising volume of consumer data that needs to be protected from threats. He notes that the shift from in-person shopping to online shopping over the last decade has created “opportunity” for the industry.

You’ll need a brokerage account to buy cybersecurity stocks — and you’ll also need to choose between buying individual cybersecurity stocks, like the ones shown in the tables above, or cybersecurity exchange-traded funds (ETFs).

There are four cybersecurity ETFs with at least $500 million in assets on the market today. They’re listed below in order of one-year performance.

		Performance (Year)
	Amplify Cybersecurity ETF
	First Trust NASDAQ Cybersecurity ETF
	iShares Cybersecurity and Tech ETF
	Global X Cybersecurity ETF

Source: Finviz. Data is current as of Sep. 24, 2024, and for informational purposes only.

Each of these ETFs gives investors exposure to dozens of cybersecurity stocks with a single purchase.

However, it’s still important to research an ETF, just as you’d research stocks, before buying. Check out a fund’s fees and holdings to make sure it’s a good match for your portfolio.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.

Source: nerdwallet.com

Apache is functioning normally

September 27, 2024 by Brett Tams

That’s because expectations of a “gangbusters” spring market are growing. “Going back to maybe the first three to five months of the year, the narrative I was putting out there to people was… we’ve got limited supply,” he said. “Once demand goes up, so will prices. Would you rather buy a house at $500,000 today, … [Read more…]

Apache is functioning normally

September 26, 2024 by Brett Tams

Cars and trucks tend to lose value as they age and experience wear and tear through everyday use. This loss of value is known as depreciation. How much these vehicles tend to depreciate will vary. For example, trucks tend to hold their value better than cars.

That said, depreciation depends on a number of factors, such as make and model, age, mileage, and accident history. Here’s a closer look at what impacts car and truck value, and how depreciation can differ between the types.

What Is Vehicle Depreciation?

Cars and trucks lose value each year due to normal wear and tear. The rate of depreciation will vary depending on the make and model of a car. However, the first year tends to see the greatest depreciation, when cars lose as much as 20% of their starting value. For that reason, some consumers believe it’s wiser to buy a used car than a new car. Within the first five years of ownership, a vehicle can depreciate by as much as 60%.

Depreciation is not necessarily an accurate representation of wear and tear on a vehicle. You may find that after a number of years, your car has lost significant value even if it’s in pristine, like-new condition. Deprecation will continue to affect the value of your car until it reaches $0 on paper. At that point, your car no longer has any equity, and is not considered a financial asset. The only value left is the value of the metal for scrap.

Depreciation is an important factor to understand whether you are buying a used car, a new car, or if you plan to lease a vehicle. When leasing a car, your monthly payment will cover the cost of depreciation.

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How Is My Car Value and Truck Value Depreciation Calculated?

There are various sources that supply car depreciation figures, including Kelley Blue Book and Edmunds. Each company has its own algorithm that accounts for the factors that affect depreciation, such as:

Mileage

How much a car or truck has been driven is often seen as a proxy for wear and tear. The more something is used, the more likely it is to wear out. As a result, vehicles that have been driven less tend to fetch higher values.

Make and Model

You can think of the make and model of a vehicle as the brand and specific product on offer. For example, Toyota is the make, while Tacoma is a specific type of truck the company builds. There may be a series of letters and numbers after the model name that further delineates the trim level of the vehicle. Trim level can refer to different features, engine size, or materials used in the making of the car or truck.

Some makes and models are more popular than others, and some models have higher trim levels. Both can help a vehicle hold its value longer.

Reputation

A vehicle’s reputation for safety and reliability can play a big role in its popularity. The higher the demand for a particular make and model, the more slowly it may depreciate.

Larger vehicles are typically safer than smaller cars, which helps explain why trucks tend to hold their value longer.

Fuel Economy

More fuel-efficient vehicles may also hold their value better than gas-guzzling counterparts, especially when fuel prices are high. Diesel trucks may depreciate more slowly than gasoline-powered cars and trucks because they tend to have more powerful engines, better fuel economy, and emit less carbon dioxide. A gallon of diesel contains roughly 10% to 15% more energy than a gallon of gasoline, and as a result, a diesel engine can go 20% to 35% farther on a gallon of fuel.

Local Market

Your local automobile market can also have a big impact on how much your car depreciates. For example, trucks may be in higher demand in rural areas, while cars may be more popular in urban settings. Vehicles with four-wheel drive may be more sought after in places with snow, while convertibles may be in higher demand in warm, sunny climates.

You may be asked for your zip code when you look up the value of your car. This can help valuation companies zero in on how much your car is worth in your locale. You can also use a money tracker app, like SoFi’s, to discover real-time vehicle values in just a few clicks.

Recommended: What Credit Score Is Needed to Buy a Car?

Average Truck Value vs Car Value Depreciation Comparison

Cars and trucks begin to depreciate as soon as they leave the lot. As mentioned above, they can lose as much as 20% in the first year alone, and up to 10% each year after that. By year five, a vehicle may have depreciated by as much as 60%.

That said, various types of cars and trucks tend to depreciate at different rates. And depreciation can vary a lot depending on current market conditions. For instance, iSeeCars research found that all types of vehicles held their value better in 2023 than they did in 2019, thanks in part to fewer new cars being produced and fewer used cars for sale.

In 2023, the average five-year-old vehicle depreciated by 38.8%, compared to 49.6% in 2019. And trucks held their value best of all vehicles, depreciating just 34.8% over five years in 2023, compared to 42.7% in 2019.
Here’s a look at of how different types of vehicles have depreciated over a five-year span:

Type of Vehicle	5-year Depreciation
Overall	38.8%
Trucks	34.8%
Hybrids	37.4%
SUVs	41.2%
Electric Vehicles	49.1%

Source:iSeeCars

Recommended: What Should Your Average Car Payment Be?

The Takeaway

While all cars are holding their value better than they did in 2019, recent research confirms that trucks hold their value the best of all vehicles. If you plan to trade in your car or truck after a few years, consider buying a vehicle that is likely to hold its value longer to get a better trade-in value.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

At what mileage do cars lose value?

Cars and trucks unfortunately start to lose value as soon as you drive them off the lot. After that, depreciation is calculated each year.

Does mileage affect car value?

Mileage is one of the most important factors that go into car valuation. The higher the mileage, the more wear and tear the vehicle is presumed to have, and the less the vehicle will be worth.

At what age does a vehicle depreciate most?

Cars and trucks depreciate most in their first year, when they can lose 20% or more of their value.

Photo credit: iStock/timnewman

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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SORL-Q324-004

Source: sofi.com

Apache is functioning normally

September 26, 2024 by Brett Tams

Showing off luxury homes that cost millions of dollars to build is quite the process. Every detail has to be on point, ensuring that the quality materials and high-end finishes are beautifully complemented by just the right decor choices, for maximum impact.

The goal is pretty clear — to showcase the property in the best possible light, and to make it easier for the would-be buyers to imagine themselves living there. And, of course, to make them more amenable to parting with hefty sums of money to make the house their own.

But how can sellers master the art of staging multimillion-dollar homes? In this article, we’ll go over some key strategies to make luxury home staging a success.

Understanding the target buyer and their preferences

To understand the target audience, we will need to first get into how the luxury home market works and what attracts buyers in this price range.

And no, we’re most certainly not suggesting you stalk potential buyers online to find out what their hobbies are and stage the home accordingly — much like Modern Family’s Phil Dunphy once did, in a hilarious episode of the long-lived sitcom.

If you know the price range of the property, the very first thing you should do is your homework: pull up as many similarly priced listings as you can, and start studying each and every one.

What are some of the most common design elements employed throughout? What types of design styles look best? Which types of light fixtures, artwork, and statement decor make the biggest impact? Write down everything that catches your eye and you already have a great starting point.

Photo credit: Pascal Riedel / Dreamstime

Refine your buyer persona

Your next step should be to look into the demographics of potential buyers for your specific property. Who would be most interested in buying the house?

Focus on their age, cultural background, profession etc. Marketing becomes a lot easier when you actually know your customers. Now, divide them into specific categories (e.g., young tech entrepreneurs, international investors, retirees looking for a second home) to understand their preferences.

And from there, it’s a no-brainer. Techbros may prefer homes with cutting-edge technology, international investors might look for strong ROI and a positive legal plus tax environment, while retirees may seek exclusive amenities like a private pool. Find that right fit and things will flow smoothly from there.

Meet them where they’re at

Remember that luxury buyers often make decisions based on emotional appeal or status. Understand what triggers these emotional responses — such as a grand entrance, unique features, or high-end finishes, and try to tap into that.

Costs and investments to keep in mind

Typical McMansions rent over-the-top furniture, art, lighting, and thousands of other types of accessories to appeal to their customers. To move these extremely expensive items, you’ll need professional movers. And if your schedule is tight, you’ll need to cough up some extra bucks. Also, watch out for an additional storage fee if the items can’t be delivered in time.

Working with real estate agents adds another layer of expense. Some stagers work on a commission basis, taking a percentage of the final sale price. There are also costs for joint marketing efforts like professional photography, virtual tours, and brochures to put the home on display.

Overall, the money that goes into staging includes renting luxury furnishings and decor. Which, depending on the property’s size and needs, can range from a few thousand to tens of thousands of dollars. A home value calculator can be a great tool to get a clearer picture of what the price should be — so that you can factor in all of the above costs, and bake them into the listing price.

The science of layout and flow

To make a home functional as well as aesthetically pleasing, you need a clear understanding of how people see and move through space. The next step is to make strategic choices that account for this aspect. Choices that will highlight the home’s best features all the while maintaining a sense of harmony.

Entryway

Photo credit: Witriyani Nurhasanah / Dreamstime

Firstly, the entryway sets the tone for the entire home. Keep it open, uncluttered, and welcoming. Opt for neutral or pastel colors on the walls.

You may also play around with textures without creating visual clutter— like a woven mat or a smooth bench. However, if you would like to incorporate vibrant colors, just make sure your designers know the difference between tacky and tasteful.

Focal points

Photo credit: Andrei Dzemidzenka / Dreamstime

Think about focal points and pathways — every room should have a clear eye-catching focal point. It could be anything like a large window with a view, a piece of art, or a furnace.

The layout for pathways should feel easy to move through. You want to maintain a natural flow, an unobstructed path. So it’s best to not have any large furniture that takes away from the charm.

Lighting

Photo credit: Yulia Ryabokon / Dreamstime

Now, let’s talk about the power of lighting and reflective surfaces. Install pendant lights or scones for warm, inviting lighting. Consider adding a small table lamp or LED strip on the entryway.

Reflective surfaces are amazing at creating a particular mood or ambiance. Mirrors help reduce harsh shadows and distribute light more evenly throughout a room. For example, glass tables, metallic accents, or mirrored furniture are a great way to make an area look polished.

Virtual and augmented reality staging

If investing in quality staging and upscale furniture just isn’t in the budget — especially after a pricey building process — VR and AR can serve as great alternatives to showcase a property for potential buyers (particularly if you’re targeting out-of-state or foreign buyers). Here’s how:

Detailed views: Use VR or AR to create detailed, 360-degree views of standout features like custom-built kitchens, luxury bathrooms, or unique architectural details.
Immersive walkthroughs: Create VR tours that let potential buyers walk through the property as if they were physically there. Keep the focus on spacious living rooms or scenic views, with detailed commentary or annotations.
Virtual open houses: Host virtual open houses using VR to allow foreign investors to explore the property in real-time.
Real-time customization: Include features that allow buyers to make real-time modifications like changing wall colors or flooring options. For instance, light-colored wood floors generally make a room look bigger. Marble can also make a space feel larger, especially if it’s light in color with minimal veining. Both options can work in this context so it is best to have an option to try out both of them.

More stories

Do You Pay Taxes When Selling Your House?

Great Ways to Increase the Value of Your Home: the 3 Areas with the Biggest ROI

A Complete Guide to Flipping Houses

Source: fancypantshomes.com

Apache is functioning normally

September 25, 2024 by Brett Tams

Do you want to learn how to start a personal finance blog? Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere….

Do you want to learn how to start a personal finance blog?

Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere.

What started as a hobby turned into a full-time career, allowing me to help others take control of their finances while earning a great income.

Whether you want to help people save money, get out of debt, or learn how to invest, blogging gives you a platform to make a real impact. Plus, it’s an opportunity to earn some extra income on the side or even turn it into a full-time career.

If you’ve ever thought about sharing your own money journey and helping others improve their financial lives, now is a great time to start. In this How To Start a Finance Blog guide, I’ll walk you through how to create a successful personal finance blog, just like I did.

Quick note: I have a free How To Start A Blog FREE Course you can click here to join. 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.

My background with blogging

Over 10 years ago, I started my blog, Making Sense of Cents, on a whim. I had read an article about personal finance and thought it would be fun to share my own experience. At first, blogging was just a hobby.

I had no idea that people could make money from blogs. But after about six months, a blogger friend introduced me to an advertiser. I made my first $100, and I was hooked.

Since then, the blog has grown beyond my wildest dreams and I have earned over $5,000,000 blogging over the years. Blogging changed my life by giving me financial freedom and the ability to work from anywhere.

Now, I want to help you start your own successful blog.

What is a personal finance blog?

A personal finance blog is a website where you share tips and advice about money. It’s a place where you can help others understand how to save, budget, invest, and spend wisely.

Some examples of topics that a personal finance blog may cover include:

Budgeting
Saving for big purchases
Getting out of debt
Investing in stocks or real estate
Planning for retirement
Side hustles
Financial independence and early retirement
Student loans
Buying a home
Money and mental health

And so much more.

You can choose one or more of these topics to focus on.

Recommended reading: What Is A Blog, How Do Blogs Make Money, & More

Why should you start a personal finance blog?

I think that starting a personal finance blog has many benefits.

You can share your money tips and help others improve their financial situation by sharing advice on saving, budgeting, and investing. I have received countless emails over the years from readers thanking me for helping them change their lives, and these emails are always amazing to read.

Writing a blog also encourages you to learn more about personal finance through research, which can improve your own money skills. I have learned a lot about personal finance because I am constantly reading about it and because I am so active in the personal finance community.

Plus, you can earn extra income through affiliate marketing, ads, and sponsored posts, helping you reach your own financial goals. As I mentioned above, I have earned over $5,000,000 blogging over the years, and I really love running this online business – so it’s been a win all around for me!

For me, I love having a personal finance blog and it’s one of the best decisions that I’ve ever made in my life.

How To Start a Personal Finance Blog

Below is how to start a personal finance blog, step by step!

Here are some of the topics I write about on my personal finance blog.

1. Choose your blog topic

Choosing a finance niche is the first step in starting your personal finance blog. A niche is a specific area of focus that will help your blog stand out.

To help you decide, I recommend thinking about what you’re passionate about. Is it budgeting, saving money, or investing? By picking a topic you love, you’ll enjoy writing and sharing your knowledge.

You should also think about your expertise and experience. What do you know a lot about? If you have experience with paying off debt or improving your credit score, that might be your niche.

Narrowing down your niche helps you become an expert in that area. For example, instead of writing about all things finance, you might focus just on household budgeting tips.

Your niche can also help you make money. Advertisers and sponsors usually look for specific topics to advertise on. If your blog is about investing, you might attract ads from financial services.

Don’t worry if it seems too narrow. There are a lot of people interested in specific topics. Being specific can help you connect better with your readers.

I recommend starting a self-hosted WordPress blog through Bluehost.

2. Start a self-hosted WordPress blog

To start your personal finance blog, I always recommend that you sign up for a self-hosted WordPress site. This means you will own your blog and its content, unlike free blogging platforms.

WordPress is where a blogger writes their blog posts. It’s like the home base for your blog. You can log in, create new blog posts, format them (like adding pictures, headings, or links), and then publish them for your readers to see. WordPress makes it easy to manage everything from your writing to how your blog looks. It’s the platform where you do all the behind-the-scenes work to keep your blog running.

WordPress is a tool that helps you build and manage a blog or website without needing to know how to code. It’s super popular because it’s easy to use and has tons of features to customize your site.

WordPress is what I use for this website (Making Sense of Cents), too!

In short, WordPress is the tool to build your blog, and self-hosting gives you the freedom to control and expand it however you like!

Here are the steps to start a self-hosted WordPress blog:

Get a web hosting service. A popular choice for new bloggers is Bluehost.
Install WordPress. Most web hosts have a one-click installation after you sign up, so it’s quick and easy.

You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions if you want more detail and/or want to see screenshots of the exact things you should click on.

Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name.

3. Pick a blog name

Choosing a blog name is a big first step and it can seem hard to decide on.

Here are some tips for brainstorming a personal finance blog name:

Your blog name should tell readers what your blog is about right away.
Make it unique and easy to remember. A good blog name can help attract more readers. Try to avoid long names, as they might be hard to remember. Short and catchy names work best. Also, I recommend getting a “.com” over any of the others, like “.net”
Use tools like a domain name generator to get ideas. Check if the name is available as a domain. It’s important to have the same name for your blog and website address.
Don’t be afraid to get creative. Mix and match words until you find something that fits. Keep your blog’s purpose in mind and make sure the name reflects it.
Tell friends and family about your ideas for feedback. Sometimes, others can see things you might miss.

P.S. Don’t forget that your domain name (also known as your blog name) is free if you sign up for Bluehost for your blog! You can click here to get your domain name for free.

4. Design your blog layout

The layout of your blog is super important. It helps your readers find what they need and enjoy their visit.

You have three main options when it comes to designing your personal finance blog:

Doing it yourself
Paying a web designer for a custom design
Getting a premade blog layout – this is what I recommend new bloggers do!

Doing it yourself is usually the cheapest, but it can be quite time-consuming. Paying for a custom web design is usually expensive.

I’m a big fan of simply getting a premade design. They are more affordable than a custom design and still look really good. One premade blog design site that I recommend is Restored 316 (my favorite!). If you need to build a website that is custom, professional, and budget-friendly, they have you covered! There is no need to code or stress over graphic design, either. These templates are easy to use.

Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).

5. Create the main pages for your blog

To make your personal finance blog successful, start by setting up key pages.

These pages are important, as they help your readers navigate your site easily and find the information they need.

Your key pages usually include your:

Homepage – This is the first impression your blog readers get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about and gets them to click around your blog further. This should be welcoming and easy to navigate – make it clear what your blog is about and include links to your main blog topics.
About page – This is where you can tell your story. Share who you are, why you started the blog, and what your readers can expect. When I find a new blog, I like heading to their About page to learn more about them and their story – so don’t skip this page!
Contact page – This page makes it easy for readers to reach you. You can add a contact form or your email address (I usually prefer just listing your email address). This allows readers, potential partners, and advertisers to get in touch with you.
Privacy Policy page – This is where you explain how you collect and use data on your site. This is important for building trust and complying with legal requirements. Now, don’t worry if you don’t know what to write, there are many templates online that you can use. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosure page – If you earn money through affiliate links or sponsored posts, let your readers know. This keeps your blog transparent and trustworthy.

There are other pages that you may want to add as well, it just depends on what you want and how detailed you want to get. The above is a great starting point.

Other pages that you can add down the line (you don’t want to overwhelm yourself too much, especially in the beginning) may include a Work With Me page (if you offer any freelance services), FAQ page (to answer common questions readers may have), Resources page (to showcase the products that you use), and a Press page (to show your readers where you have been mentioned in the press).

6. Start social media accounts for your blog

Creating social media accounts can help your blog grow because it can make it easier for more people to find your blog.

The social media accounts that you can start include:

Facebook
Pinterest
Instagram
Twitter
TikTok

Now, you definitely do not need to be active on all of these social media accounts, but I do usually like to claim my blog name on each so that no one else can take it.

Once you have your social media accounts set up, I also recommend that you add the links to your blog’s homepage so that your readers can easily find you on social media.

7. Create a content plan

Your content plan is what you’ll write about on your blog.

First, think about who your audience is. Do they want to save money, get out of debt, or invest wisely? Knowing this helps you create content that speaks to their needs.

Next, brainstorm topics that fit your blog. You can start with basic personal finance tips, budgeting hacks, or ways to save more money each month.

Once you have a list, set up an editorial calendar where you think about how often you’ll publish new posts. It could be once a week, twice a week, or even daily. Consistency is important and I highly recommend writing at least one blog post each week.

Plan ahead by writing down specific ideas for each post. This helps you stay organized and makes sure that you always have something to write about.

Now, your blog content plan doesn’t have to be crazy; it can literally just be a list of blog posts – it all depends on how organized you want to be. For example, you can just make a list of blog posts that you want to write such as:

10 Simple Ways To Save Money Every Month
How To Create a Budget That Actually Works
Beginner’s Guide To Paying Off Debt Faster
How To Build an Emergency Fund on a Tight Budget
Smart Ways To Save for a Vacation Without Stress
Investing 101: How To Start With Just $100
5 Budgeting Mistakes To Avoid if You Want To Save More
How To Meal Plan and Save Money on Groceries
Tips for Teaching Kids About Money
How To Stop Impulse Buying and Save More
Side Hustles That Can Help You Pay Off Debt
How To Improve Your Credit Score in 6 Months
Saving vs. Investing: What’s Best for Your Goals?
Frugal Living Tips That Don’t Feel Like Sacrifice
How To Use Cash Envelopes To Control Spending

These ideas could easily fill up your editorial calendar and help you stay organized and consistent with your posts!

8. Start writing blog posts

Once your blog is set up, it’s time to write your first blog post!

Below are some tips for writing your first personal finance blog post:

Write in a way that is easy to understand. Use short sentences and simple words. Remember, you want to help and not confuse your readers.
Add personal stories or experiences. This makes your blog more relatable and interesting. People love reading about real-life situations.
Break up your text with headings, bullet points, or images to make your posts easier to read. Don’t forget to proofread your work before you publish it.
Ask your readers questions at the end of your posts. This can encourage them to leave comments and interact with your blog.

9. Find ways to make money with your money blog

There are several ways you can earn money with your personal finance blog.

One way is through affiliate marketing. You can partner with companies that have affiliate programs like Amazon. When someone buys an item through your link, you earn a commission. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.

Ad revenue (display ads) is another option. You can place ads on your blog using services like Google AdSense, Mediavine, or Raptive Ads. When visitors see or click these ads, you make money.

You might also explore sponsored posts; this is where you partner with a company and they pay you for a review, a mention, or a blog post that talks about their product.

Selling products/services that you create is a good strategy too to make money with a finance blog. You can sell printables, write ebooks, provide consulting services, or teach online courses.

As you can see, there are many ways to make money with a personal finance blog. For me, I like to do a little bit of everything so that I am diversified with my income streams from my blog.

10. Grow your personal finance blog

To get readers to your finance blog, you need to promote it.

Some ways to grow your personal finance blog include:

Start by sharing your blog posts on social media platforms like Facebook, Pinterest (I recommend that you create a new Pinterest pin for all of your blog posts), and Instagram.
Guest post on other finance blogs. This can introduce you to new readers who might be interested in your content. For example, you could guest post and write about how you paid off your debt.
Email marketing is another effective way. I highly recommend that you find ways to get readers to subscribe to your email newsletter so that you can send updates and share new blog posts regularly. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Engage with your readers by responding to their comments and emails. Building this relationship can encourage them to share your blog with others. I ALWAYS respond to comments, emails, and messages because I think it’s the nice thing to do when your readers are taking time out of their day to write something to you.
Use search engine optimization (SEO) techniques and keyword research. This helps your blog show up in search results when people look for topics you’ve written about.

Promoting your blog takes time and effort. It takes time to grow a new personal finance blog, so try not to be too sad in the beginning if it takes time – that is completely normal.

Frequently Asked Questions

If you’re thinking about starting a personal finance blog, you might have some common questions. Here’s what you need to know to get going.

How much money do personal finance bloggers make?

The amount of money that a personal finance blogger can make varies widely. I have made over $5,000,000 blogging over the years, and I know many others who make a full-time income from their personal finance blog as well. Successful bloggers can make thousands of dollars each month through ads, affiliate marketing, sponsored posts, and digital products.

Is it too late to start a personal finance blog?

No, it’s not too late to start a personal finance blog. There’s always room for fresh voices and new perspectives in personal finance.

Do I have to have a degree in finance to start a personal finance blog?

You don’t need a finance degree to start a personal finance blog. Many bloggers share personal experiences, research, and advice.

How can I make my personal finance blog stand out from others?

To make your personal finance blog stand out from others, I recommend that you focus on your unique experience with the topic that you are writing about. For example, you could share personal stories and actionable advice for what you did to pay off your student loans or to start investing.

Is a personal finance blog profitable?

Yes, a personal finance blog can be profitable. I have made over $5,000,000 from my personal finance blog over the years, all by working from home on the internet.

How To Start a Finance Blog – Summary

I hope you enjoyed my article on how to start a finance blog.

I’ve been running this finance blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.

Starting a personal finance blog changed my life, and it could do the same for you. Sharing my money-saving tips not only helped others but also led me to financial freedom and a career I love.

There are so many different finance niches that you could write about, whether it be budgeting tips for beginners or financial advice for those who want to retire early. Plus, you don’t need to be an expert to start a personal finance blog – many people want to hear about real people’s real experiences and insights, including their journey with personal finance (so that they can learn real tips!).

Whether you’re looking to earn a little extra or turn blogging into a full-time job, this guide will help you start a successful personal finance blog that makes a real impact.

Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.

Do you want to learn how to start a personal finance blog?

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Source: makingsenseofcents.com