The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
It is better to leave a credit card with a zero balance open because removing the account could negatively impact several credit factors.
However, canceling a credit card can be a smart financial move in certain situations. For example, if you have a card with a high annual fee and rarely use it, canceling it might be a good idea to avoid unnecessary charges.
If you’ve successfully paid down a credit card, you may be wondering if it’s better to close it or leave it open with zero balance. While it’s recommended that you keep unused credit cards open instead of canceling, there are certain instances when canceling that credit card may be in your best interest financially.
Let’s examine the pros and cons of keeping and closing your zero-balance
Is it better to cancel zero-balance or keep them?
The general rule of thumb is that it’s best to keep your unused cards rather than cancel them. Open credit cards, even ones you aren’t actively using, help you build up your credit history and increase your available credit. That increase helps lower your credit utilization rate, which is the percentage of available credit you have used. These details are important because they relate to two factors that credit bureaus rely on when determining your credit score.
If you choose to keep a credit card open, try to use it occasionally to prevent the card issuer from decreasing your credit limit or closing your account due to inactivity.
On the flip side, sometimes the knowledge that you have a credit card available for purchases is too big of a temptation. If you’re having trouble controlling your credit card spending or if your credit card has a high annual fee, you may be better off canceling your card.
How does closing a credit card could impact your credit?
Canceling a credit card, particularly an older one, can lead to a credit score drop. The two primary potential causes of this drop are:
An increase in your credit utilization rate because you have less available credit
A decrease in the average age of your credit history
Let’s look more closely at how these two factors can directly impact your credit score. Understanding each one can help you determine whether or not you should close your zero-balance credit card account.
Your credit utilization rate could skyrocket
Even if you aren’t making purchases on a credit card, that available credit is helping to boost your credit utilization rate, which accounts for 30 percent of your credit score. The more available credit you’re using, the worse off your credit score will be.
To understand how your credit utilization ratio — and thus your credit score — could be affected by closing a credit card, here’s a helpful example. Let’s say you have two credit cards:
One has a $3,000 limit and a $3,000 balance (this is the money you owe).
The other has a $3,000 limit and $0 balance.
Your credit card utilization rate between both cards is 50 percent ($3,000 total balance divided by $6,000 total limit multiplied by 100 = 50 percent utilization).
However, if you close the credit card with the $0 balance, your credit utilization rate jumps to 100 percent ($3,000 total balance divided by $3,000 total limit multiplied by 100 = 100 percent utilization).
According to FICO®, the goal should be to keep your utilization ratio below 30 percent. There’s an easy formula you can use to calculate your credit utilization ratio:
Step 1. Divide the total amount of your overall credit debt by the total credit limit available across all of your credit cards.
Step 2. Multiply the result by 100 to produce your credit utilization ratio.
Pro tip: Before you close a credit card, take some time to determine what your credit utilization ratio would be. If that number will jump significantly, it may be a better idea to keep your zero-balance card open until you can pay down your total credit card balance.
The length of your credit history could decrease
The longer you’ve had a credit card open, the better. This helps to build your credit history, which accounts for 15 percent of your credit score. If you have a positive history associated with your credit card paired with years of having that card in your name, it’s a good idea to keep that card open and in use, as it improves the length of your credit history.
One easy way to keep a credit card in use without driving up your balance is to only use it for recurring payments for things like streaming services or other subscriptions. That way, you’ll know exactly how much is going on that card each month and can easily pay off the balance in full.
When should you close your zero-balance credit card?
Depending on your financial situation, there can be compelling reasons to cancel your unused credit card.
The card has a high annual fee
If you’re charged a high annual fee by your credit issuer, canceling may be a smart money move. However, it’s worth trying to have the fee waived before you decide to cancel, especially if you receive rewards through the card such as travel credits and perks. Call your credit card issuer to ask for the annual fee to be waived and mention that you’re considering closing your account. It never hurts to ask.
You’re a victim of fraud
If your credit card is lost or stolen, the issuer will usually close the account and send you a replacement. But, if a business continues to allow unauthorized charges even after you report the issue, closing the card might be the best financial move to protect yourself from further fraud.
You’re going through a divorce
If you’re separated or getting a divorce, it’s a good idea to close any accounts you share with your ex, as you could end up saddled with a credit card balance they’ve accrued on the account.
You’re out of debt
Everyone is different, and for some, the temptation to keep a credit card and not use it is too high. For those struggling to get out of debt or for those who recently climbed out of credit card debt, it might be a good idea to cancel your unused credit card and stick to using cash or your debit cards to avoid sinking back into revolving credit card debt.
How to cancel your credit card in 6 steps
If you do decide to close your credit card, there are several steps you should take to ensure you’ve properly closed your account.
Redeem rewards points: Refer to your credit card’s redemption rules to learn how to redeem your points prior to closing your account.
Pay off your balance to zero (if it isn’t already): Pay off any remaining balance on your card before attempting to cancel it.
Confirm your zero balance: Contact your credit card issuer online or via phone to make sure that your balance is zero.
Make it official with certified mail: Send a certified letter to the company that issued your card requesting they send you a written letter verifying the zero balance and the closed status of your account. Keeping a paper trail is a great way to maintain a record of when the account was closed in case you need to contest any information on your credit report down the line.
Monitor your credit reports: Check your credit report 30-45 days after your card is closed to make sure the card is officially reported as “closed.”
Dispute any errors: Once you’ve reviewed your updated credit report, be sure to dispute any incorrect information you may find.
Bottom line: It depends on your financial situation
Deciding if it’s better to close a zero-balance credit card or leave it open is a personal decision — the answer will depend on your unique financial circumstances. No matter your situation, it’s important to cancel any unused cards in a way that keeps your financial health intact and minimally impacts your credit score.
For some, having unused credit cards may be no temptation whatsoever, but for others, the knowledge of having a card available to use could be difficult to ignore. Canceling a credit card won’t necessarily change your spending habits in the long run, so it’s important to develop a healthy approach to your personal finances by creating a realistic budget and sticking to it.
Tame your credit card debt with Lexington Law Firm
When you have a credit card with a zero balance, the decision whether to keep it open or not depends on your credit score goals. If inaccurate information on your credit reports is dragging your score down, credit repair services can help you challenge these errors and potentially boost your score.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
They say the kitchen is the heart of the home. So it’s not surprising that a kitchen remodel is one of the most expensive home refreshes you can do—and it can be one of the best projects for generating an eventual return on investment, per Investopedia.
Bankrate reports that remodeling your kitchen can cost as much as six figures, and even when remodeling on a budget, you can expect to spend a minimum of $14,000. That’s a huge range to navigate, and many homeowners dreaming of a new kitchen may wonder how they can effectively budget for one.
Elizabeth H., an Atlanta homeowner, spent years saving up to make over her home and recently completed a series of renovations—including a kitchen remodel. “It was a pretty massive thing,” she says. “But now that it’s over, it’s fantastic.”
As a result of her experience, Elizabeth can offer some insight into how to plan for a budget kitchen remodel—from doing lots of research to preparing for the unexpected. She also has some surprising tips for cutting costs.
Establish your priorities
When creating her kitchen remodel budget, Elizabeth thought long and hard about what updates would have the most impact aesthetically and practically.
“I thought about which things I use the most and which would have the biggest impact,” she explains. For example, when her friends and family come over, they tend to gather around the kitchen island. “I thought, I definitely don’t want to skimp on the island because that’s going to be a focal point for me on a day-to-day basis and when my friends come over, whereas with the flooring I can choose something more modest.”
Elizabeth opted to focus more of her budget on the areas of her kitchen that would help her enjoy the space and cut back on things that didn’t matter to her as much. Once she settled on her priorities, she could plan her budget more strategically.
Tip: Cabinets are typically the priciest part of a kitchen renovation, accounting for roughly 30% of the total job, according to the same Bankrate study. Shopping around for a style that fits both your taste and your budget could be time well spent.
Set your budget
Elizabeth heavily researched what a remodel would cost her—even factoring in expenses unrelated to labor costs and materials. For example, when renovating a kitchen on a budget, she recommends earmarking funds for dining out, takeout, and any other solutions you need to pursue while your kitchen is out of commission. “You need a pizza fund,” she jokes.
You may also need to budget for alternate housing. Elizabeth rented a short-term apartment to live in while her home was uninhabitable. Once she had a realistic budget that took into account these extra costs, she spent a few years saving up to reach that goal.
Staying focused and being patient enough to reach her goal helped her avoid financial stress when it came time to start the work. While looking for new appliances and cabinets as soon as you start daydreaming about your project can be tempting, you also want to be realistic. “Save first, shop later,” Elizabeth suggests.
Tip: If you’re saving for a renovation, stash your funds in a money market account or online savings account. You’ll earn interest and grow your savings faster.
Expect the unexpected
The tricky thing about redoing a kitchen on a budget is predicting how much the final cost will be.
“Whatever you think your budget will be, go over by a good bit,” Elizabeth warns. “A lot of people say plan for 25% extra, but I think the older your home is, the more of a buffer you need. Once they start opening up walls, they may find more issues that need repairing.”
A budget kitchen remodel typically comes with unexpected hurdles, and Elizabeth recommends being prepared for surprises so they don’t shock you. This mindset also applies to how long a kitchen remodel will take, not just how much it will cost. “You just have to roll with it,” she says. “I think whatever timeline they give you up front, it’s important to recognize they’re probably not going to stick to it.”
The bottom line is that there will always be surprises and hiccups. “No matter how much you plan or how much you prepare, no matter how organized you are or what research you do, there will still be things that vary,” Elizabeth says. “Having really good construction partners you can trust is the best way to navigate the process overall.”
Once you’ve figured out your kitchen renovation budget, start growing your savings to pay for it with confidence. A Discover® Online Savings Account offers competitive yields with no monthly fees.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
If you’ve been saving money in a certificate of deposit (CD), great job! CDs can be a safe and smart way to see your money grow, especially when interest rates are high. But CDs don’t lock your money away forever—and that’s a good thing. When your CD reaches its maturity date, you’ll need to decide what to do next with the money you’ve invested.
Do CDs automatically renew? In many cases, yes. However, you generally have to choose one of three options when CDs mature. You can:
Renew the full amount of the CD for the same term.
Renew the CD but change the amount of money invested and/or its term length.
Close the CD and withdraw the money.
Considerations before and at CD maturity
Your money goals
What are you saving for? Is it a short-term goal, like a vacation or a down payment on a car? Or a longer-term goal, like retirement or your child’s college fund? If you need the money sooner rather than later, you might want to renew the CD for a shorter term or close it. If your goal is further in the future, renewing for a longer term could help you earn more interest.
Your timeline for needing access to the funds
CDs are best for money you know you won’t need immediately, since most have early withdrawal penalties. If there’s a chance you’ll need the money before the CD matures, consider a shorter-term CD or a different type of account like a money market.
With Discover® non-individual retirement account (IRA) CDs, you can opt to have your interest paid out monthly to give you some access to funds during the CD’s lifetime.1 You can also change your interest payment settings at any time.
Tip:Build a CD ladder for more flexibility: If you’re attracted to the higher interest rates CDs offer but prefer being able to access some of your money periodically, a CD ladder strategy might help.
To build a ladder, you split your money among two or more CDs with different maturity dates. For example, you could open 1-year, 2-year, and 3-year CDs at the same time. When each CD matures, you can withdraw the money if it’s needed or renew the CD to continue earning interest. This gives you the option to access some of your money periodically while keeping the rest saved at higher interest rates.
How CDs compare to other savings options
CDs typically offer fixed interest rates—unlike the variable rates offered by most traditional savings, checking, and money market accounts. In exchange for this fixed rate, you agree to leave your money in the CD for the full term.
Savings and money market accounts allow you to withdraw money at any time, but their interest rates are not guaranteed. However, CDs may offer a higher interest rate than these other types of accounts. Consider comparing rates across different types of savings products, and keep in mind that different CD terms may have different rates.
It’s also worth comparing CDs to other investment options like stocks or bonds. With CDs, you know exactly how much interest you’ll earn, and your principal is protected up to Federal Deposit Insurance Corporation (FDIC) limits.
Earn guaranteed returns with a fixed-rate CD
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Investments like stocks have the potential for higher returns but a greater risk of losing money. Diversification across asset classes is often a smart decision—but the right way to allocate your savings and investments will depend on your risk tolerance and time horizon.
With these considerations in mind, determine what works best for you. Keep in mind that the renewal policies below are specific to Discover non-IRA CDs. Other banks might handle renewals differently, so check your bank’s specific policies.
Option 1: Renew the full amount of the CD for the same term
If you do nothing when your CD matures, Discover will automatically renew it for you after a 9-day grace period. The new CD will have the same term as the old one. So if your CD was for 1 year, the new one will also be for a 1-year term.
The interest rate on the new CD will reflect Discover’s current rate for that term on the day the CD matures. This rate might be higher or lower than the rate you had before. If you want to simply renew the CD for the same amount of money and length of time, you don’t have to actively do anything.
However, if you’d like provide instructions online or via the mobile app, you can do so starting 30 days before the maturity date and your CD will be renewed on the maturity date. Please note that if you contact Discover via phone or through the Secure Message Center to renew your CD for the same amount and term, the agent will simply allow the CD to auto-renew as scheduled.
Remember, the new interest rate is not locked in until the maturity date of the CD you had previously, even if you give instructions before that time. Your new rate will reflect what’s available on the day the CD matures for your selected term.
Option 2: Renew the CD but change the amount of money invested and/or its term length
You can choose to renew your CD but make changes by updating the amount of money you put in and/or the length of the new term. For example, you could add more money to the CD to help it grow faster. Or you could select a different term that offers a higher interest rate.
To update your CD terms, you can provide Discover with instructions starting 30 days before the CD’s maturity date. You also can make changes during a grace period of up to 9 days after the maturity date. If you give instructions before the CD matures, Discover will make the changes on the maturity date, and the CD maturity grace period will no longer apply.
To set renewal instructions for your CD on the Discover mobile app:
Log in and select your CD.
Tap View Account Details at the bottom.
Select Maturity Instructions, then Modify and Renew.
Follow the steps to make changes.
To set your renewal instructions online:
Log in to the Discover banking website and select your CD.
Click Account Settings, then Edit next to Maturity Instructions.
Follow the steps to make changes.
You can also add or receive funds online via an internal transfer (between Discover accounts) or an ACH transfer from a linked external account. If you want to add to or take money from the CD by check or wire transfer, contact Discover by phone or secure message.
Option 3: Close the CD and withdraw the money
When your CD matures, you can choose to close it and withdraw all of the funds.
In order to cash out a CD at maturity, contact Discover by phone or secure message. Tell us that you want to close your CD and specify how you want to withdraw the money. There are several options for how to withdraw money from a CD account. You can transfer it to another eligible Discover deposit account or linked external account. You can also get your money sent to you by check or wire transfer.
Penalty for early CD withdrawal
Can you close a CD early? Technically, yes. But if you close a CD before its maturity date, you’ll probably pay a penalty. So it’s best to wait until the CD matures to close it—unless you really need the money sooner.
Tip:If you close your Discover CD before its maturity date, you may face an early withdrawal penalty. Discover’s CD early withdrawal penalty structure is as follows (see the account agreement for more details)2:
For CDs with terms of less than 1 year: 3 months’ simple interest
For CDs with terms of 1 year to less than 4 years: 6 months’ simple interest
For CDs with terms of 4 years to less than 5 years: 9 months’ simple interest
For CDs with terms of 5 years to less than 7 years: 18 months’ simple interest
For CDs with terms of 7 years to 10 years: 24 months’ simple interest
Why choose Discover for your CDs?
Discover is a great place to open CDs for a few reasons:
We offer a wide range of CD terms to choose from, including IRA CDs. This means you can find a CD that fits your money goals and timeline.
We have competitive interest rates on our CDs. Having a better interest rate helps your money grow faster.
We keep your money safe. Discover CDs are FDIC-insured up to $250,000 per depositor, per deposit ownership category.
There are no fees to open a Discover CD.3
Remember, you worked hard to save this money! Make sure it keeps working hard for you. With a Discover CD, you’ve got a safe place for your money to grow until you need it.
Ready to open a new CD or renew an existing one? Visit Discover’s website or log into your account to get started today.
1 This interest arrangement is specific to Non-IRA CDs. If the interest payment has already posted to the account, there are no penalties if interest funds are withdrawn.
2 Beginning on the 8th day after your CD is opened and funded—and for the next 22 calendar days—we will deduct each day’s simple interest on the issue amount withdrawn from the funding date to the date of withdrawal. Thereafter, the Early Withdrawal Penalty will be calculated as described above. See the account agreement for more details.
3 A penalty may be charged for early withdrawal from a CD.
There is no minimum deposit required to open a Discover CD. You have 45 days after opening the CD to fund the account.
The APY will be determined and fixed for entire IRA CD term once account is opened and correctly completed documentation and funding is received. We will send you written confirmation of the interest rate, APY and maturity date of your IRA CD after it is opened or funded. Applies to personal accounts only. A penalty may be charged for early withdrawal. No minimum deposit required to open an account. The account must be funded within 60 days of account opening. Consult a financial advisor or tax professional for guidance.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.
There’s a lot to consider when blending your life with your partner. Whether you’re moving in together or officially tying the knot, some of the most important decisions are around how—or if—to combine your finances.
One important topic: Should you open a joint savings account?
A joint savings account can be a great way to work together on your financial goals—but there’s a lot to know before making the leap. Read on to learn more about opening a joint savings account with your partner.
What is a joint bank account?
A joint bank account is shared by two or more individuals. It can be a joint savings account or a joint checking account.
Joint accounts function just like typical bank accounts. The primary difference is that both account holders (you and your partner) have full access to the account and have equal ownership of the funds.
If you’re considering a joint account, you might first want to learn more about what to consider before combining finances with your partner.
How does a joint savings account work?
With a shared savings account, both account holders have equal power over the account. That means you and your partner can both deposit and withdraw funds. And you’ll both be able to see all account activity.
With a joint account, there is no difference between the funds you or your partner contribute—they all go into one shared pool of funds. Both account holders can withdraw or spend from the pool, even if they weren’t the contributor.
Pros and cons of a joint savings account for couples
As with all financial decisions, there are potential pros and cons you’ll want to consider. One major advantage of joint accounts is that they may actually strengthen your relationship, according to a recent study, “Common Cents: Bank Account Structure and Couples’ Relationship Dynamics,” by Jenny Olson, Ph.D., an assistant professor of marketing at Indiana University.
“Couples with joint accounts were significantly better off than couples with separate accounts,” says Olson. “While relationship quality tends to decline over time, on average, we found that couples randomly assigned to merge their finances were buffered against that decline.”
Call it a sunny day fund—online savings with no monthly fees
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Benefits of a joint bank account
“A joint bank account is associated with greater financial goal alignment,” says Olson. “It promotes a more communal view of your marriage. You’re accessing the same pool of shared resources, so you need to work together when managing those resources. You tend to be more on the same page.”
Here are just a few other notable advantages of a joint account:
Convenience: One of the biggest perks of a joint account is having a shared pool of assets, which can streamline how you save and spend as a couple—no more worrying about paying each other back or keeping track of who contributes what.
Openness: With a shared account, you and your partner have a new window into the other’s financial situation and decision making. This transparency can help promote honest and open conversations about finances. “It facilitates communication and transparency, two benefits we know are good for marriage,” says Olson.
Helps you work on shared goals: A critical part of a relationship is sharing common goals, whether that’s traveling the world or saving for a house. No matter your objectives, a joint account can help you align your short- and long-term financial goals.
More savings: A shared account can help increase your saving power by combining your assets. And if you have an interest-bearing joint account, you can take advantage of the power of compound interest and earn even more over time, thanks to a typically higher balance.
Potential disadvantages of a joint bank account
While there are plenty of good reasons for opening a joint savings account, there are also potential pitfalls you’ll need to understand and consider:
Possibly too much transparency: When you open a joint savings account, you’ll sacrifice a level of financial privacy that you would have had with a solo savings account.
All contributions are subject to creditors: If your partner is having financial troubles, your contributions to the shared account could be used by creditors to pay off any debts.
A breakup could be even more messy: Ending a relationship can be complicated, but intertwined finances can make things even more messy. Remember that if you split, your partner might be entitled to their share of the balance in your joint account.
Money may be harder to track: Keeping track of the exact amount of money going in or out of a joint account can be tricky if more than one person is making transactions. Therefore, effective communication is vital to keep accurate tabs on your balance and to avoid issues with spending and tracking expenses.
Considering all the factors before pooling your assets into a joint savings account is essential. You need to assess and understand your and your partner’s financial situations, your shared goals, and the state of your relationship.
“We’re not saying a joint bank account is the only option or best option for all couples,” says Olson. “There are important nuances. There are going to be some situations where choosing an account structure warrants a conversation. Take a step back and talk to your partner about what will be best for you and your unique financial circumstances.”
Still weighing your options? Learn more about the pros and cons of opening a joint account.
FAQs about joint savings accounts for couples
Question: Are joint savings accounts insured by the Federal Deposit Insurance Corporation (FDIC)?
Answer: Yes, joint savings accounts are FDIC-insured bank accounts, if the bank is FDIC-insured. Each account holder is insured up to $250,000 per depositor, per account ownership category, which means you and your partner will be insured for a total of $500,000 per account category, assuming you maintain joint ownership of the account. (If a couple has joint ownership of, for example, a money market account and a CD at the same institution, each deposit type may be insured up to $500,000, per the FDIC, for total coverage of $1,000,000.)
Question: Can you open a joint savings account if you’re not married?
Answer: Yes, you can open a joint savings account regardless of your legal marital status. However, taxes on a joint account can get complicated for unmarried couples. Married couples can file together, but unmarried partners will need to file separately and might need to consult with a professional come tax time.
Question: Are joint savings accounts a good idea?
Answer: There’s no simple answer, but joint bank accounts have significant benefits. Check out the section below or speak with a financial advisor, if appropriate, to help determine whether a joint account is appropriate for your situation.
Question: Who owns the money in a joint account?
Answer: In most situations, all of the money in a shared account belongs to all account holders equally. In other words, if you have a joint savings account with your partner, you both own all its funds, regardless of your individual contributions.
Question: What happens to a joint account if one account holder dies?
Answer: Typically, the surviving account holder becomes the sole owner of all the funds in a joint account. This is called automatic rights of survivorship. Per the FDIC, the account holder will continue receiving FDIC coverage for joint ownership up to $500,000 until six months after the death, providing time to distribute the funds to other insured accounts as needed. After the six-month period, the surviving account holder will only be insured up to $250,000 for that account.
Ready to get started? Learn more about how to open an online savings account.
Is a joint savings account right for you?
When it comes to financial decisions, nothing is one size fits all. So how do you decide whether a joint bank account is the right move for you and your partner? Here are some signs a shared savings account may benefit both of you.
You live together and want to put money away for household expenses, like rent payments or home repairs.
You are saving for shared goals, like retirement, travel, or a child’s college fund.
You communicate openly and honestly about your spending and saving habits.
You understand each other’s financial background, and neither of you has unaddressed debts or other issues that might negatively affect a shared account.
You already have a joint checking account and are looking for more ways to organize your financial life.
How to open a joint savings account
The process of opening a joint savings account for couples is similar to opening a savings account on your own.
If you are opening a new account, you can either visit a branch or apply online. You and your partner will need to complete an application that includes personal information for both account owners.
If you want to add a co-owner to an existing account, you can fill out a joint owner authorization form and submit it by mail, fax, or through your online account.
Are you and your partner ready to start using a joint savings account? The Discover® Online Savings Account might be your perfect match, with a high annual percentage yield and no monthly fees or minimum deposit.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
This article is for informational purposes only and is not intended as a substitute for professional advice. For specific advice about your unique circumstances, you may wish to consult a qualified professional, at your expense.
That means every LO using ARIVE gets a unique URL for applications, Hulett explained, which they can share and customize through – for instance – a video or special messaging for their customers. A co-branded POS link can also be created for every partner they might have, whether a builder, financial planner, or title agent. … [Read more…]
When you need help putting together a solid plan for your money, you might seek out financial consulting services. A financial consultant can offer advice and guidance on things like investing, retirement planning, and building wealth. You may also hear financial consultants referred to as financial advisors, as the terms are often used interchangeably, though there may be some slight differences.
What is financial consulting designed to do? In simple terms, it’s all about helping clients formulate a strategy for managing their money. What working with a personal finance consultant looks like for you can depend on your situation and goals.
Key Points
• Broadly speaking, financial consultants help clients identify strategies to help them reach financial goals.
• Services offered by financial consultants may include investment management, estate planning, tax planning, and retirement planning, among others.
• Financial consultants and financial advisors may hold certificates or designations that reflect advanced training, such as Certified Financial Planner (CFP) or Accredited Financial Planner (AFP).
• Choosing the right consultant requires evaluating the scope of services they offer, their professional certifications and designations, their fee structure, and more.
What Is a Financial Consultant?
Broadly speaking, a financial consultant is someone who offers advice about money – be it retirement planning or buying stocks or other securities – in a professional capacity. A financial consultant may work independently or be employed by a financial consulting firm, and they may offer services online or in-person.
Examples of Financial Consulting Services
Financial consultants can offer a variety of services to their clients. Again, those clients may be individual investors, business owners, or even a non-profit organization. The types of services a financial consultant may offer can include:
• Basic financial planning, such as creating a household budget
• Estate planning
• Tax planning and legacy planning
• Retirement planning
• College planning
• Succession planning for clients who own a business
A financial consultant’s overall goal is to help clients create a comprehensive plan for managing their money. Financial consultants may work with a diverse mix of clients, or niche down to offer their services to a specific demographic or client base, such as dual income couples, with no kids or members of the LGBTQ community.
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Financial Consultants vs. Financial Advisors
The terms “financial consultant” and “financial advisor” are often used interchangeably, as their meaning is roughly, but not quite, the same. There are some important differences, including the licensure that each is required to hold in order to practice, and the regulators each operates under. Generally, they both offer financial advice and guidance in a professional capacity, though.
Other Names for Financial Professionals
Financial consultants and financial advisors can go by more specific names, depending on which professional certifications they hold. Certifications and designations signify that a consultant or advisor has completed advanced training and education in a particular area. Here are some of the most common designations for financial professionals:
• Certified Financial Planner (CFP®)
• Chartered Financial Consultant (ChFC)
• Certified Public Accountant (CPA)
• Accredited Financial Planner (AFP)
• Registered Investment Advisor (RIA)
• Certified Annuity Advisor (CAA)
• Certified Financial Consultant (CFC)
• Certified Tax Advisor (CTA)
• Chartered Financial Manager (ChFM)
Navigating the alphabet soup of designations for financial consulting services can be confusing and it helps to understand what type of advice you need.
For instance, if you want to work with an advisor who can help with everything from budgeting to retirement planning, then you might choose a Certified Financial Planner. On the other hand, you might want to work with a registered investment advisor if you’re specifically seeking investment help.
The main thing to know about financial consulting services is that there’s more than one option to choose from. Taking time to research a consultant or advisor’s background and qualifications can make it easier to find the right person to work with when you need consulting services.
When Would You Need Financial Consulting?
Working with a financial consultant is a personal decision. With that in mind, you might start working with a consultant at any time if you feel that you need help managing your finances. If you need more specific examples of when it makes sense to hire a financial consultant, here are a few scenarios to consider:
• Your parents pass away, leaving you $500,000 in assets. You might work with a financial consultant to figure out the best way to maximize your inheritance while minimizing taxes.
• After 15 years of marriage, you and your spouse have decided to divorce. You decide to hire a financial consultant to help you create a plan for managing the assets that you’re leaving the marriage with.
• You’re a parent to a child with special needs who will require long-term care after you’re gone. You reach out to a financial consultant to discuss setting up a trust to pay for their care when the time comes.
Financial consulting services can be an appropriate choice when you have a difficult financial decision to make or you’re trying to navigate a situation that feels overwhelming. Winning the lottery, for instance, could leave you paralyzed with indecision about what to do with the money.
A financial consultant can also help you move through changing life stages. That can include getting married or divorced, having a child, starting or selling a business, or changing careers. Financial consultants can look at the bigger financial picture to help you get through the changes while keeping your long and short-term goals in sight.
Finding the Right Financial Consultant
Finding a financial advisor starts with taking inventory of your needs to determine what kind of advice is appropriate. Once you’ve figured out what kind of help you need, the next step is creating a list of advisors in your area that you might want to work with.
Asking questions can help you get a feel for how an advisor operates. Here are some examples of the types of questions you might want to ask:
• What kind of financial consulting services do you offer?
• Do you hold any professional certifications or designations?
• Do you specialize in working with a particular type of client?
• What is your investment style?
• How are your fees structured and what do you charge for consulting?
• What is your preferred method of communication?
• How often will we meet?
If you’re considering a robo-advisor, then it may be a good idea to look at how the platform manages portfolios, what benefits or features are included, and what you’ll pay for consulting services. Should you choose a robo-advisor vs. financial advisor? There are some pros and cons to consider.
On the pro side, a robo-advisor can be a less expensive way to get financial consulting services. The typical financial advisor cost is around 1% of assets under management per year. Robo-advisors may cost much less, with some offering services charging a fraction of what a human advisor would.
Of course, there’s a trade-off to consider, since you’re not getting financial advice with a human element behind it. For instance, if market volatility sets in and you’re tempted to sell off stocks in a panic, a robo-advisor wouldn’t be able to talk you through it the way a human advisor could. Taking that into consideration can help you decide which one might be right for you.
The Takeaway
A financial consultant’s job is to help you feel more secure and confident when making decisions about your money. Whether you need a consultant’s services or not can depend on where you are financially right now and where you want to go in the future.
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FAQ
Is a financial consultant the same as a financial advisor?
Financial consulting and financial advisory services are typically grouped together, as they generally mean the same thing. A financial consultant or a financial advisor can provide advice about things like investing, retirement planning, and estate planning. The difference is that consultants may offer their services on a one-time basis, while financial advisors may work with clients long-term.
What does a financial consultant cost?
What you’ll pay for financial consulting services can depend largely on the type of professional you’re working with. A typical financial advisor’s fee is around 1% annually, though it’s possible to pay more or less, depending on the kind of services you receive. Robo-advisor financial consulting can cost less, though it does lack the human element.
What does a financial consultant do?
Financial consultants help their clients create a plan for managing money. A financial consultant may work with individual investors, businesses, or organizations to offer financial advice. Financial consulting services may cover a broad scope of topics or concentrate in just one or two areas of financial planning.
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Creating a coffee bar at home is a great way to elevate your daily coffee experience and add a personal touch to your kitchen or living space, even in a rental. Whether you’re renting a home in Portland, OR, buying a home in Burlington, VT, or searching for an apartment in New York City, NY, having a dedicated space for your coffee essentials can transform your morning routine into a more enjoyable and relaxing ritual. From the smell of freshly brewed coffee to the convenience of having all your favorite beans, mugs, and brewing equipment within reach, a home coffee station is a perfect blend of function and style.
Designing a coffee bar at home that suits your taste involves considering things like space, equipment, and aesthetics. With a little planning, you can create a coffee corner that reflects your personal style while ensuring you have everything you need to craft the perfect cup. With tips from experts in the coffee and home design fields, we’ll show you step-by-step how to create an at-home coffee bar that caters to your unique needs and enhances your home coffee experience.
1. Figure out your space
When planning a coffee bar at home, the first step is determining the best spot for it. “Creating a space that suits how you want to make coffee and is enjoyable to use is the best way to grow your love of creating the perfect-tasting coffee at home,” shares Toby, the coffee expert behind Coffee with Conscience.
The good news is that you don’t need a large area to create a functional and stylish coffee setup. Whether you have an entire countertop to dedicate or just a small corner to spare, the key is to work with what you have.
Counter top vs coffee cart
“Creating the perfect home coffee station is all about thoughtful organization and quality essentials,” advises Brigette Romanek, interior designer and blogger at HomeDecorFull. “Start with a dedicated counter space near an outlet, using a small shelf or cart if space is limited.”
Whether you’re passionate about having a variety of brewing equipment on display or just tight on counter space, “Consider using a rolling cart for a flexible coffee station that can move around your space,” recommends blogger Gina Dickson of Intentional Hospitality, a blog providing tips and advice on hosting at home.
Stick to the essentials
Once you’ve identified the perfect spot for your home coffee bar, consider the flow of your daily routine and the accessibility of your coffee essentials. “Keep your most-used items within easy reach, arranging them by workflow (like grinder, filter, brewer, then cups),” recommends Romanek from HomeDecorFull.
No matter the size of the space, the goal is to make your at-home coffee bar an organized, inviting spot that streamlines your coffee-making process. “Avoid cluttering your coffee space with unnecessary gadgets,” shares Matthew Barry, roaster and owner of Ember Coffee Co. in Big Lake, MN. “Ensure that at least half of your setup has open space for cup placement; keeping it clean and minimal makes it easy to stay organized while showing off your beautiful setup.”
Image by Bruvi
Compact is key
A minimalist setup not only saves space but also keeps your area looking tidy and visually open.
“When space is at a premium, I like to opt for compact brewers that don’t require much counter space,” suggests Jon Clark from the Nomad Coffee Club, a premium coffee bean subscription service.
“Even space-challenged coffee lovers can set up a coffee bar,” agrees Diane Kuyoomjian at Bruvi, one of the freshest and most versatile pod coffee brewers on the scene. “Whether you use a kitchen counter or a free standing cart, a versatile single-serve brewer that makes both coffee and espresso will provide all the barista vibes in a small footprint.”
Maximize a small space
In small spaces, every inch counts, so keep your coffee bar clutter-free by sticking to the essentials and storing extras out of sight. “Maximize vertical storage with stackable storage canisters for beans and accessories, while a small tray beneath your equipment protects surfaces and keeps everything tidy,” says Robert Gomez from Kaffe Products, a company where you can find all the essentials for coffee at home.
Even the smallest corner, windowsill, or unused wall can be transformed into a functional coffee station with the right organization. “A wall-mounted shelf or a pegboard and stackable storage containers can add an aesthetic backdrop for your coffee bar while also providing storage for beans, reusable filters and coffee scoops,” recommends the team at Nomad Coffee Club.
2. Choose home brewing equipment for your coffee bar at home
After you figure out your space, the next step to creating your coffee bar at home is in choosing the right equipment to get the job done. The type of coffee brewer you should choose for your home coffee setup largely depends on what kind of coffee you like to drink, the amount of space you have, and of course, personal preference.
“It may sound simple, but there’s no point in spending hundreds of dollars on a shiny espresso machine if it just collects dust once the novelty wears off,” shares Toby of Coffee With Conscience. “Good coffee is about the taste as much as the art of creation.”
“As a passionate home brewer, it’s easy to get caught up in buying every new device,” confides Syeh Naveed, the face behind the blog The Need for Coffee. “While fancy equipment can be tempting, if your brewing space isn’t clean and organized, it detracts from the experience. And worst of all, having too many brewers can lead to decision fatigue.”
Naveed suggests simplifying your home coffee setup by sticking to one or two devices, helping to keep things simple while still maintaining your options. Your home coffee bar might have multiple coffee contraptions, but make sure they are each serving a distinct purpose, focusing on the following brewing methods.
Pour-over
Pour-over coffee is a hands-on brewing method that gives you more control over how your coffee turns out, letting you really bring out the unique flavors of the beans. You simply pour hot water slowly and evenly over ground coffee in a filter, which results in a clean, smooth cup with lots of depth. Since you can tweak things like the water temperature, grind size, and how you pour, it’s perfect for anyone who loves experimenting to create their ideal brew. Plus, it’s simple and has a nice, relaxing ritual to it, which makes it a go-to for many coffee lovers.
“You don’t need a ton of fancy gear to brew amazing coffee at home – just stick to what makes you happy,” suggests Alejo Galindo, one half of the duo at friendly coffee resource The Coffee Nerds. “A glass flask style brewer is a solid choice for manual pour-overs and easy to store when not in use. Just make sure to have a decent grinder and a water kettle for best results.”
Handheld presses, plungers, and stovetop espresso
Handheld tools, like portable espresso makers, manual presses, or stovetop brewers, are a great option for coffee lovers who want to enjoy stronger coffee on the go, in small spaces, or on a budget. These compact devices use manual pressure to brew rich, concentrated coffee without needing a bulky machine. While they require a bit more effort compared to automatic machines, they offer tasty results and the flexibility to brew anywhere, whether you’re at home, traveling, or camping.
“If you love espresso and are short on space, a manual coffee press will take your love for coffee out of this world. Easy to use and easy to clean this brewer provides a fantastic concentrated coffee with a unique design and consistent results,” shares Matt Milletto, owner of classic Portland, OR roaster, Water Avenue Coffee.
“Handheld espresso makers are perfect for espresso-based drinks without taking up any counter space,” Galindo agrees.
Another recommendation comes from the experts at Pawling Coffee Roasters in Pawling, NY. “A plunger-style coffee device is ideal because it brews high-quality coffee without taking up much space. Once you gauge how much coffee you use per batch, you can eyeball it going forward. As long as your setup is organized, it looks great and lets you focus on what really matters: the delicious taste and aroma of freshly brewed coffee.”
Jim D’Andrea from Maker’s Coffee Company adds, “Brewers like these fit any kitchen and produce amazing results. An electric kettle adds a simple way of heating water to ideal brewing temperatures which makes a huge difference in taste.”
Automatic machines
Home coffee machines are a great investment for coffee lovers who want to enjoy cafe-quality brews right from their kitchen. These machines come in various types, ranging from manual and semi-automatic to fully automatic and super-automatic models, each offering different levels of control over the brewing process.
“When creating your home coffee station, there are many options,” agrees Home Coffee Tips author Ben Farrer, a trusted source for many types of brewing equipment. “For something modern, easy to use and space-saving, I would recommend a pod machine for convenient espresso. If you want to take it to the next level, I advise a home espresso machine and an electric burr grinder.” To complement your espresso-making setup, Ferrer adds, “You can buy plenty of coffee brewing accessories to match your kitchen aesthetic, like wooden tampers and coffee mats.”
Drip coffee makers are another automated classic that give you an easy and consistent brew every morning. “My favorite drip coffee maker is my go-to for the best drip coffee every morning,” says Milletto from Water Avenue Coffee. “It’s compact, precise, and delivers 8 perfectly brewed cups, bringing the local coffee shop into your kitchen.”
“Treat yourself to a good espresso machine, steam pitcher, tamping mat, and knock box to elevate your coffee space,” adds Carol from decaf coffee provider based in Springdale, AR, Talking Crow Coffee Roasters.
“Finish off your coffee brewing setup with a scale,” Carol continues. A scale can be used for multiple different brewing methods to help find consistency by measuring the amount of coffee and water used in your brewing process, ensuring a more predictable cup every time.
As the professionals at Seattle-based Langskip Coffee suggest, experimenting with different brewing methods to find your ideal cup of coffee is one of the key steps to creating the perfect coffee bar at home.
3. Invest in a burr grinder
If you’re looking for the quickest way to elevate your home coffee experience, burr grinders are essential if you value consistency and control over the grind size of your coffee beans. Mindful consumption blogger Laura Yoder at Black Coffee Beautiful nods her head to the importance of a grinder, sharing, “A grinder gives renters an opportunity for high-end flavors, even if space is limited and the budget is tight.”
Unlike blade grinders, burr grinders use two abrasive surfaces (burrs) to crush coffee beans evenly, resulting in a more uniform grind that enhances the flavor and quality of the brew. “The biggest difference between average and great coffee is the quality of the grind, and a burr grinder delivers consistent results,” confirms Berry of Ember Coffee Co.
“Don’t skimp on your grinder while you splurge on your brewer – flip that around,” seconds Matt Boshart, owner and head roaster of Reboot Roasting located in Omaha, NE. “A high-quality burr grinder should be the focus of your home setup.”
4. Use good quality coffee beans
Whether you’re using a simple drip machine or an elaborate espresso setup, starting with quality coffee beans ensures that your brewing efforts result in the best possible taste, making every cup more tasty. “You don’t need a complicated setup for delicious coffee at home,” confides owner of Florida-based Coast to Coast Coffee, Matthew. “The two most effective tips to achieve coffee nirvana are to first, get your hands on freshly roasted beans. Second, grind them right before brewing.”
Keep your beans fresh
The freshness of the beans you’re using is important—treat coffee like an item with an expiration date, and don’t grind the beans until right before brewing for more flavor. To keep your beans staying fresh, Michelle Kaliher from the spooky themed roaster Sinister Coffee and Creamery in Portland, OR recommends storing your beans in an airtight container, away from light and heat. “Whether you prefer the bold richness of plunger coffee or the clean, smooth taste of a pour-over, this keeps the beans fresh and full of flavor,” Kaliher advises.
Try a coffee bean subscription
Coffee bean subscriptions are another way to ensure a steady supply of fresh, high-quality coffee delivered right to your door. Francesca from the Lux Cafe Club, a service that provides customers with high quality coffees, reminds that the key to a great home coffee experience is freshly roasted beans. A subscription service allows for delivery of premium coffee at intervals that suit your coffee habits, with a range of options allowing you to select your preferred roast level, grind size (or whole beans), and even specific flavor profiles.
Sample different flavor profiles
If you’re looking for a fan favorite, “Try a medium roast, which offers a bright and balanced flavor that everyone can enjoy,” says Claudia at Haymaker Coffee. By using high quality coffee beans in your daily coffee ritual, you can tailor your coffee experience to your taste preferences. Whether you enjoy light, fruity notes or deep, rich flavors, investing in quality coffee beans is essential for unlocking the full potential of your home coffee bar.
5. Keep your at-home coffee bar organized
As you develop your coffee bar at home, staying organized is crucial for both efficiency and aesthetics, ensuring that your space is easy to use and visually appealing. “If you want to create the perfect home coffee space, the best one is the one you’ll use,” advises Toby of Coffee with Conscience.
“Focus on keeping things simple with quality brewing equipment and smart storage solutions for your beans,” says Katie, author of motherhood and coffee blog KT Likes Coffee. “A clutter-free setup makes your morning coffee ritual smoother and more enjoyable.”
Tips and tools for an organized coffee bar
“Home coffee setups can take up quite a bit of counter space, especially if you dive deeper into the hobby,” confides Andrew Richter, founder and head roaster at New York-based Gotham Coffee Roasters. “My most recent coffee bar additions have been a mountable power strip to free up outlet clutter, and a dedicated paint brush to clean my messy grinder. Keeping a work area neat helps free up space whether you’re at home or in a professional shop.”
“Use space-saving organizers like hooks to hang your cups and dosing vials for your favorite specialty coffees,” adds Ember Coffee Co’s owner. “Efficiency is everything—plus, storing your beans in neat little vials helps you keep the space tidy and stylish.”
The professionals at Haymaker Coffee suggest keeping organized by using clear containers for your coffee and tools, making everything you need for making coffee at home easy to find. Clear, labeled jars not only help you quickly find what you need but also add a clean, decorative touch to your coffee bar.
By maintaining an organized home coffee station, you create a space that’s both functional and beautiful, making your coffee routine smoother and more enjoyable.
6. Let your coffee station be an expression of your style
As you develop your coffee bar at home, personal touches are what make a coffee station feel like it belongs in your space. Styling your coffee corner is an opportunity to have fun and express your creativity while making your coffee routine more enjoyable. “A plant or two, a jar of cinnamon sticks, and a cozy mug make the space feel warm and inviting,” affirms Lauren Dryer from the Scandi-inspired Langskip Coffee.
However, there are many ways to help your home coffee bar feel more personalized.
Image by Pottery with Eleni
Display unique mugs and drinkware
“The perfect home coffee station combines style and functionality, creating a cozy corner to elevate your daily ritual,” emphasizes Eleni, the potter behind Pottery by Eleni. “Start by adding a special touch with a handmade mug, offering both beauty and comfort with each sip. Complete the look with a cream and sugar set, a charming countertop accent that keeps essentials within easy reach while adding an artisanal flair to your space.”
Double-walled glass mugs also offer a stylish touch to your space while keeping your coffee at the perfect drinking temperature, and come recommended from the experts at Kaffe Products.
“Set out a coordinated set of mugs for a cohesive look,” agrees Diane from the pod machine company Bruvi. “Showcase your style with sugar and spoons in attractive containers like neutral ceramics or baskets on a small tray.”
Use decorative organization
“Our mantra is to minimize clutter but maximize style,” continues the coffee experts at Bruvi. “Clear glass or acrylic canisters don’t take up visual space but are a great way to display coffee pods.”
For easy clean-up and mess-free brewing, Nomad Coffee Club recommends adding a stylish coffee tray to minimize messy grinds or coffee stains on your countertops.
“Use a small, dedicated corner with floating shelves for easy access to mugs and coffee beans,” adds Gunnar Monson, the face behind Sasquatch Coffee in Oregon. “Keep your home coffee bar organized with labeled jars for beans and tools, making your morning brew as seamless as it is enjoyable.”
Add art and other personal touches
“Don’t be afraid to showcase your personality through quirky signs, vintage finds, or color schemes that speak to you,” advises Stephanie LeBlanc, author of the home styling blog Celebrated Nest. “Remember, your coffee bar should reflect your taste while still being practical – it’s all about making your daily brew feel special.”
“I love tying in personal touches,” agrees Maggie, the creator behind Coffee With Maggie and the early bird newsletter. “My coffee corner has a few plants, and features a custom painting my best friend, By Annie B., did of the cups from all my favorite coffee shops which ties the whole space together.”
Customize your space with renter-friendly style options
When creating a rental-friendly home coffee bar, it’s important to focus on styling options that won’t require permanent changes or damage to the space. “For personalization, go for renter-friendly options like peel-and-stick wallpaper or removable hooks to hang mugs or decor without damaging walls,” recommends hosting expert Gina Dickson of Intentional Hospitality.
You can also focus on the aesthetics of your brewing equipment to bring more style to your at-home coffee bar with practically no effort. “Your morning coffee sets the tone for the rest of your day, so regardless of your favorite brew method be sure to choose one or two products that are unique, expressive of your personality, and elevate your daily routine,” says Aby Henry, the owner of Portland’s Bridgetown Sparrow Ceramics. Artfully crafted, matching pour over and mug sets are one of Henry’s favorite ways to add flair to any home coffee bar.
Finish off your renter-friendly coffee space with colorful trays, baskets, or countertop organizers for an easy and aesthetic corner of your home.
Image by Bridgetown Sparrow Ceramics
Change up your home coffee bar to match the seasons
If you love to change things up in your home for each season, your home coffee bar is the perfect place to start celebrating. “Provide a functional and pretty space for your guests to enjoy a cup of coffee, starting with styling the space with seasonal decor items,” says country living blogger Lynn Langford with At Home in the Wildwood. “Risers and tier trays are perfect for decorating the area for the holidays or seasons. I also like to keep tea and hot cocoa supplies in the same area for those who might not be coffee lovers, but want a hot beverage.”
“Refreshing your coffee bar for each season is my favorite way to infuse personal style into our vintage farmhouse kitchen,” adds the author of Celebrated Nest. “I love expressing my style by swapping out mugs on a tiered tray or hanging seasonal wreaths – easily adaptable ideas for any space. The key is to keep your essentials in place and decorate around them with easily changeable pieces, allowing you to transform your coffee station from summer refresh to fall cozy without any permanent changes.”
Choose a color theme
Using color in your home coffee station is a fun way to add personality and vibrancy to the space while enhancing its overall aesthetic. Incorporate pops of color throughout for a more balanced look, or use color to highlight your coffee bar as a focal point in your home.
“I get the most compliments on our very pink to-go cup station. It includes matching cup sleeves adorned with our family monogram that I’ve designed and hand stamped, plus pink straws and hot coffee lids to match my iced/hot latte mood accordingly for the full custom cafe moment,” reveals lifestyle and home blogger Elle Wagner. “Our guests always get a huge kick out of how extra it is,” she laughs.
The key to personalizing your home coffee bar is to balance style and practicality, ensuring that your decorative elements don’t overwhelm the space but instead contribute to creating an organized, beautiful area that enhances your coffee-making experience.
7. Focus on technique for perfect coffee at home
The final step in elevating your at-home coffee bar is to make sure the coffee you’re making tastes great. If you’re getting the perfect flavor every time, you’ll be more inspired to use your home coffee station regularly.
Women-lead roasters Coroco Coffee Roaster Collective, based in Sycamore, IL, and Tostado Coffee Roasters in Portland, OR are powerful workhouses in the coffee space, and were happy to share the secrets to making coffee at home that mimic the professional cafe experience.
Image by Coroco Coffee Roasters Collective
Use filtered or distilled water
Water plays a crucial role in brewing coffee at home, as it makes up about 98% of your final cup and acts as the primary solvent to extract flavors from the coffee grounds. The quality of the water you use directly affects the taste and balance of your coffee.
“Use filtered water and keep your equipment clean to ensure each cup tastes fresh,” emphasizes Adriana Lopez, the woman behind Tostado Coffee Roasters. Filtered water can remove impurities like chlorine, which can give your coffee an off-flavor.
“Consider using distilled water combined with a mineral enhancer to create the ideal mineral profile for brewing,” shares Karen Weckerly, roaster and owner of Coroco. Too-soft or distilled water can result in a flat or dull taste, but certain minerals in water are needed to bring out the coffee’s full flavor profile.
Get your water temperature right
The temperature of your water also matters, with ideal brewing temperatures for any manual coffee being just off boiling, around 202°F, continues Weckerly. Water that’s too hot (above 205°F) can over-extract the coffee, leading to a bitter taste, while water that’s too cool (below 195°F) might under-extract, resulting in weak or sour flavors.
Use one part coffee to a higher amount of water
“Experiment with water-to-coffee ratios and brewing methods to find your ideal strength,” recommends Lopez.
“The golden ratio for coffee is 1:15 to 1:18 which means one part coffee to 15-18 parts water,” explains Weckerly. “This is perfect for a lot of brewing methods, including pour-overs, drip, and plungers.”
You can use a scale at first to get the hang of what this looks like, then as you get more comfortable, eyeball the amount of coffee and water you use each day for a truly seamless (and delicious) home coffee experience.
Pay attention to your grind size
Grind size is one of the most important factors in making great coffee at home, as it directly influences the overall flavor of your brew. The size of your coffee grounds determines how quickly water passes through them and extracts the flavors.
“A good double shot requires 17-20 grams of very finely ground coffee – think flour like consistency,” advises Weckerly.
A medium grind, with a texture resembling sand, works well for drip coffee makers and pour-over methods, balancing extraction time and flavor. For brewing methods like French press or cold brew, a coarse grind is ideal, as the slower brewing process requires larger grounds to prevent over-extraction and bitterness.
Lopez encourages home coffee enthusiasts to experiment with grind size and brewing methods to highlight the unique flavors of your favorite beans, giving you the best experience in your new home coffee bar.
Go forth and create your perfect coffee bar at home
“For some, at-home coffee bars are a simple budgeting hack—but for me, it’s truly a daily luxury that I miss when I’m traveling,” admits lifestyle and home blogger Elle Wagner. “The key to an iconic coffee bar is how custom you’re willing to make yours. Investing in the right coffee makers, stocking and importing my favorite beans, pods, syrups, and milks, and even matching everything to my favorite color just for fun has made all the difference to using my setup on the daily.”
As you start creating your own coffee bar at home, remember that it’s all about making the space your own. Whether you invest in high-end equipment or start with the essentials, make sure you craft a setup that enhances both your coffee experience and your living space. With a bit of inspiration and planning, your at-home coffee bar can become the perfect spot to fuel your day and indulge in your love for coffee.
Vice President Kamala Harris is pledging to increase the housing supply and make it more affordable, especially for first-time home buyers.
She’s preaching to the choir of voters who rank housing affordability as a top-three issue in the election — about 25%, according to the results of a survey by Ipsos and Redfin, released on Oct. 15. Unsurprisingly, more renters (31.6%) rank housing affordability as a priority issue compared to already existing homeowners (17.1%).
The current housing affordability crisis is the result of the construction industry’s sluggish return to form following the 2007-2008 housing collapse and the basic laws of supply and demand. As is, there isn’t enough housing available for the number of buyers: The housing deficit grew to 4.5 million in 2022 up from 4.3 million in 2021, according to Zillow, a real estate website.
Housing shortages push up prices and keep them high. When a lack of available housing is combined with years of persistently elevated mortgage rates, it becomes even harder for would-be first-time homebuyers to break into the market.
Then, as fewer people trade renting for home ownership, it puts pressure on the rental market, keeping those prices high, too. As a result, shelter, which includes both home buying and renting, has remained the greatest factor in core inflation growth for years.
The only way to effectively combat a lack of affordable homes is by building more housing. Harris’ housing plans are ambitious — and possibly unrealistic, experts say.
Build new housing
Harris has outlined policies aimed at creating 3 million new housing units over the next four years — a 50% increase over the current rate of home building, according to the nonprofit Urban Institute.
In an Aug. 21 Washington Post editorial, Mark Zandi, chief economist of Moody’s Analytics, and Jim Parrott, a housing expert at the Urban Institute, called her plans “the most aggressive supply-side push since the national investment in housing that followed World War II.”
To achieve her end goal, Harris wants to provide several tax incentives to kickstart construction:
A new Neighborhood Homes Tax Credit to construct or rehabilitate 400,000 homes in lower income communities. The homes must be owner-occupied. The incentive would operate similarly to the Low Income Housing Tax Credit (LIHTC) in that states would receive an allocation of credits for specific projects based on local need.
A tax cut for builders that construct affordable starter homes.
A $40 billion innovation fund to incentivize state and local governments, as well as private developers and homebuilders, to find new strategies to expand the housing supply, primarily through regulatory reform and cutting red tape.
Open up certain federal lands for new housing developments. Her campaign has not specified which federal lands.
An analysis of Harris’ proposal by the Urban Institute says Harris’ plans to increase new housing are not out of line with historic standards. But 50% growth is still a daunting task, and would rely on a number of factors outside a president’s direct control. “What she’s proposed will probably only go sort of halfway or part of the way in achieving that, because achieving a 50% increase in housing production is gigantic,” says Yonah Freemark, a principal research associate in the Metropolitan Housing and Communities Policy Center at the Urban Institute and the research director of the Land Use Lab at Urban.
Other observers see the 50% target as unrealistic. “For anyone who has any knowledge of commercial real estate and the housing industry, that seems like an unachievable number,” says Brian Connolly, assistant professor of business law at the University of Michigan. “But good for her for trying to get there.”
“What she’s proposed will probably only go sort of halfway or part of the way in achieving that, because achieving a 50% increase in housing production is gigantic.”
Yonah Freemark, research associate, Urban Institute
However, her proposals could help spur more construction even if they don’t reach the target, says Connolly. He adds that if the government supports homebuilding through new tax incentives that make it more profitable to build new housing and attract skilled labor, then it could make a meaningful impact on the housing supply.
Harris would need Congress to enact much of what she pledges to do. Of the innovation fund, for example, Connolly says, “She couldn’t just sort of pluck $40 billion out of thin air to deliver to the local government; that would be something that would presumably require congressional authorization.”
What there is bipartisan appetite in Congress for, says Freemark, is reducing regulatory restraints on construction. He says there may also be support for expanding the Low Income Housing Tax Credit, which goes toward acquiring, rehabilitating or constructing rental housing for lower-income households. The Democratic National Committee includes expanding LIHTC in its platform.
Make home buying more affordable
A cornerstone of Harris’ housing plans aims to make home ownership — the most traditional vehicle for wealth-building in America — more accessible to first-time buyers. She pledges to provide up to $25,000 in down payment assistance for first-time home buyers and an unspecified, greater amount of assistance for first-generation homebuyers.
Starter-home buyers could use the help since those homes are much more expensive than they were before the pandemic — 51.1% higher than August 2019, according to a Redfin report released on Sept. 30. But there is one recent positive sign for buyers: Starter homes are less expensive now than a year ago for the first time since August 2020. Homebuyers currently need to earn $76,995 annually to afford a home at the median price of $250,000.
There are already places in the U.S. that provide down payment assistance, so Harris’ proposal isn’t new per se, but its size and scope is, says Freemark. “I think that it has the potential to be quite impactful in terms of expanding access to home-purchasing for a large segment of the population that currently, simply, doesn’t have the ability to assemble enough funds,” he adds.
But when it comes to how assistance is delivered, the devil is in the details. “It will take a lot of thought and, potentially, some experimentation on the part of agencies and others that would be implementing this strategy,” Freemark adds. “Also, this is a potentially very expensive program, so I’m not sure I’ve heard broad enough support in Congress.”
It’s much easier to increase demand than it is to increase supply, says Ed Pinto, a senior fellow and co-director of the AEI Housing Center at the American Enterprise Institute, a conservative think tank, and Harris’ down payment assistance plan would serve to add buyers to what is now a strong seller’s market. “Unless that were to change, any efforts along the lines of demand increases would lead to substantial increases in prices,” says Pinto.
Connolly agrees. “If we’re not building those housing units and we’re providing people with $25,000 in credits to go out and buy within a stock of housing that is not sufficient, that’s going to result in bidding up housing prices,” he says.
Still, providing credits to first-time homebuyers could be something that both sides of the aisle support, says Connolly. “I tend to be a little more of an optimist about the bipartisan nature of this problem,” he says.
Make rent more affordable
About two-thirds of all homes are owned by the people who live in them, according to the U.S. Census Bureau. The other third are occupied by renters and Harris has plans to make their lives less expensive, too. The natural outcome to her plan to make home ownership more accessible would be freed-up rental housing. But she also wants to target corporate landlords in two ways:
End rental price-fixing practices by landlords of large multi-family units that raise rents based on algorithms. She is calling on Congress to pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act.
Remove tax benefits for large corporate landlords that own single-family rental homes. She is calling on Congress to pass the Stop Predatory Investing Act.
Freemark says that generally, there hasn’t been much support from Republicans in Congress to fund housing affordability policies for renters. If Democrats gained control in both houses, then there is some potential to expand funding for those purposes, he says.
But there has been some bipartisan interest in stopping large private investors from purchasing a large share of homes in communities throughout the country, says Freemark. “Getting that policy right is not obvious,” he says. “Just because you don’t like private investors doesn’t mean they’re not playing an important role in the overall housing market. And, you know, you’re playing with a very large industry when you start talking about sort of critiquing the ownership of large corporations. So I don’t know. I’m a little skeptical”
Meanwhile, Connolly isn’t so sure that focusing on price-fixing will be impactful in alleviating high rent prices. “I’m a bit skeptical that, you know, going after representing algorithms is really going to result in decreases in rent or slowed appreciation of rent,” he says. “But to the extent that there’s any impact on the rental market at the margins, that might be possible.”
Cut red tape
Experts agree that reducing regulatory burdens to building new housing is necessary and has bipartisan support. Both candidates have, at least, nodded to that need — Republicans in their party platform and Harris with her $40 billion innovation fund.
“Republicans tend to be more pro-business; they tend to provide tax breaks to businesses,” says Connolly. “And Democrats want to see more housing supply and housing affordability. So that looks like a good way to kind of, you know, marry those two sides of the aisle.”
Still, authority over housing regulations is concentrated at the local level, so there may be limits to what Congress can achieve on the issue.
Open up federal lands for housing
In the past former President Donald Trump has floated a vision of 10 “freedom cities” on undeveloped federal lands (his utopian vision for these cities also includes flying cars). Harris has also said she supports opening up federal lands to build housing, but hasn’t provided details.
The Federal Government is the largest landholder in the country (the Bureau of Land Management, or BLM, manages one in every 10 acres in the U.S.) so there’s an inventory of possible land available for development. But there’s a key difficulty with the proposal, says Freemark: “A lot of federal land is not land you would want to build housing on.”
Connolly agrees: “When you look at the map of U.S. federal lands, a lot of them are in very lightly populated areas across the western U.S. where there’s not going to be any demand for housing. There may be federal properties that are underutilized in larger cities that would be appropriate places to build housing … but at this point, I think that proposal, you know, from both sides of the aisle is really unclear in terms of its scope and where that would occur.”
The majority of government-owned land is in the West, and there is precedent for opening it to home building. In July, the Bureau of Land Management announced actions that it said would create thousands of affordable housing units on federal land in Nevada.
Pinto is optimistic about the possibilities. “In areas where there’s plenty of land, you could build an entirely new city,” he says. “Let’s take Utah … the federal government owns [the majority] of land in Utah. Half of that land we’ll call ‘Smokey the Bear’ — national parks, national forests, national monuments, things like that. The other half is just owned by the Bureau of Land Management.”
Trump’s deportation plans could stymie construction
Housing hasn’t been the focus of Trump’s campaign, but the cornerstone promise of his campaign — deportation of millions of undocumented immigrants — could have a direct impact on the housing market.
Trump has claimed that his deportation plans would free up housing, but experts say it would actually worsen the housing crisis since the construction workforce is largely reliant on immigrant labor.
Immigration has not been at the root of the U.S. housing crisis, says Connolly. “To the extent that you have migrants who are, generally speaking, low income or very low income people entering into the market … they’re facing much more dire circumstances than people who are trying to buy their first home or something like that,” he says.
But what Trump’s deportation plans could do is exacerbate a shortage of construction workers.
“I would suspect it is causing some concern for home builders and people in the building industry, because immigrant labor has long been a source of labor for the building industry and not just immigrants from Central and South America, but going back across really our entire history,” says Connolly. “Think of Italian bricklayers, Irish laborers in the 1800s and early 1900s. We have always relied on immigrant labor for work in our building industry. And yeah, the idea that we’re going to go deport a bunch of immigrants, you know, particularly in a time period when we need to be building housing is particularly bad policy.”
Freemark says, “Trump deporting millions of people would be horribly destructive for the housing market. It would make it very difficult to build homes throughout much of the country and it would increase the cost of homes.”
NerdWallet’s 2024 election deep dives
What would the Trump economy look like? Find out where former President Donald Trump stands on economic issues like battling inflation, medical debt, jobs, health care, housing, child care, small businesses and more.
How Trump and Harris aim to address your health care When it comes to health care, the candidates have been light on the details. Harris has focused on things like lowering prescription drug prices; expanding Medicare care coverage; and restoring federal abortion rights. Trump says he supports IVF coverage, but wants to leave abortion to the states. He also said that he has only a “concept” of a plan to replace the Affordable Care Act.
Smart Money’s 2024 Presidential Election Series
Hosts Sean Pyles and Anna Helhoski discuss the grand economic promises made by presidential candidates and the intricate realities of presidential influence on the economy to help you understand the real effects on your daily finances.
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If you feel like your company’s growth has stagnated, it may be time to look at inorganic growth strategies. Inorganic growth involves expanding through mergers and acquisitions rather than increasing your company’s current activities. It’s generally considered faster than organic growth but requires a larger upfront investment and comes with some risk.
Read on for a closer look at inorganic growth, including its pros and cons, how it compares to organic growth, and strategies for achieving (and funding) inorganic growth.
Key Points
• Inorganic growth often involves acquiring or merging with other companies to expand market share, product offerings, or geographic reach.
• Inorganic growth allows businesses to grow more quickly compared to organic growth, bypassing slower internal processes.
• It enables entry into new markets or industries, providing immediate access to customers and distribution channels.
• Inorganic growth can be riskier than organic growth, involving significant capital investment and the challenge of integrating different company cultures.
• Inorganic growth can be funded by small business loans, equity fundraising, and invoice financing.
What Is Inorganic Growth?
Inorganic business growth is growth that is created using resources outside of the company. It typically involves mergers and acquisitions, joint ventures, or adding locations. This is in contrast to organic growth, which occurs through harnessing a company’s existing resources.
While organic growth tends to be slow and gradual, inorganic growth enables a company to expand rapidly by entering a new market that may be related to or different from its original business line. Inorganic growth typically involves a more dramatic shift in how a business operates. It also requires a larger upfront investment than organic growth. Owners will often use small business loans to fund inorganic growth.
Example of Inorganic Growth
An example of inorganic business growth is Facebook’s acquisition of Instagram in 2012. Rather than building a similar platform from scratch, Facebook purchased Instagram for $1 billion to expand its presence in the social media and photo-sharing space.
This acquisition allowed Facebook to tap into Instagram’s growing user base and capitalize on its unique features. The move provided immediate access to Instagram’s established brand and audience, fueling Facebook’s growth in new demographics.
This strategic inorganic growth decision helped Facebook maintain its dominance in the social media industry while reducing competition and diversifying its service offerings.
Recommended: IPO vs Acquisition: Advantages and Disadvantages
What Is Balanced Growth?
Balanced business growth refers to the strategy of achieving a steady and sustainable expansion by integrating both organic and inorganic methods. It involves growing through internal efforts, like improving sales, launching new products, and enhancing operational efficiency, while also leveraging external growth opportunities, such as mergers, acquisitions, or partnerships.
The goal is to balance short-term gains from inorganic growth with the long-term stability of organic development. This approach helps businesses minimize risks, maintain operational control, and ensure that growth is sustainable, scalable, and aligned with the company’s strategic objectives over time.
Inorganic Growth vs Organic Growth
Both inorganic and organic growth serve the same purpose — taking your business to the next level. But each takes a very different path to get there.
Inorganic Growth
Organic Growth
Seeks external sources for growth
Leverages internal sources for growth
Requires large up front investment
Investment is gradual
Growth is fast
Growth takes time
Inorganic growth involves using resources outside of the company, such as engaging in mergers and acquisitions. Organic growth, on the other hand, uses inside opportunities — such as cost-cutting measures, internal research and development, and operational improvements — to spur growth.
Another key difference is that inorganic growth typically requires a large initial investment, whereas organic growth generally involves gradually investing in marketing, human resources, and operations over time. As a result, inorganic growth usually requires taking out a business loan, whereas organic growth may or may not require financing.
Inorganic vs. organic growth also comes down to speed. Inorganic growth generally leads to a much faster increase in revenues and profits than organic growth.
Pros and Cons of Inorganic Growth
To help you decide if an inorganic growth strategy is the right fit for you, here’s a look at some of the benefits and drawbacks of inorganic growth.
Pros of Inorganic Growth
Cons of Inorganic Growth
Enables faster growth than you can achieve through organic growth
High upfront costs
Allows you to take over a proven business model rather than start from scratch
Merging workforces can lead to redundancies, as well as friction
Increasing your business size can make it easier to access additional capital for further growth
Investing in another business or location can be risky
Pros
Unlike organic growth, which can take time, inorganic growth results in rapid expansion, since the company you are acquiring or partnering with already has established systems, customers, and revenues.
Growing through mergers and acquisitions also gives your business access to valuable resources and assets, such as technology, intellectual property, equipment, and staff. In addition, it can expand your market share and reduce competition. Becoming a larger company can also make it easier to access capital through business loans when you need it.
Recommended: 10 Business Growth Strategies
Cons
Inorganic growth generally requires a large upfront investment, which may involve taking on debt. If your company is currently small, getting the financing you need might require collateral, which can put personal or business assets at risk.
Acquiring a new business or adding a new location can also result in management challenges. In the case of a merger or acquisition, you may end up with multiple people in the same roles and need to consolidate. Merging with another company can also lead to friction.
While inorganic growth can result in rapid growth, success is not guaranteed. Investing in another business or location can be risky.
5 Inorganic Growth Strategies
There are several inorganic growth business strategies to consider, depending on how your business is set up and how willing you are to give up your company’s independence.
1. Acquisition
Purchasing an already-established business is one way to instantly increase your business’s revenues and profits. An acquisition allows you to take over a proven business model with customers and systems already in place rather than having to build it from scratch.
Recommended: Top Business Acquisition Loans
2. Merger
In a merger, two firms agree to become partners in a larger business. To achieve inorganic growth through a merger, you might join forces with a competitor. This takes your competition out of the marketplace and allows you to absorb its market share. It also gives you access to its technology, products, and workforce.
3. New Location
Opening a new location for your existing business leverages the hard work you’ve already put into your brand. You won’t have to develop new management or marketing strategies, other than extending what you’re already doing at your original location. If you sell products, you may be able to negotiate a lower per-unit cost if you need to increase the size of your orders from suppliers to outfit a new location.
4. Strategic Alliance
When two brands see benefits in working together but don’t want to give up their individual independence by merging, you have a strategic alliance. Perhaps Company A has the audience that the other wants to reach, while Company B has technology that Company A can leverage.
5. Joint Venture
Similar to a strategic alliance, a joint venture involves two or more companies coming together to take on a particular business activity for a limited period of time. A joint venture creates a new business entity that is separate from the participating businesses. This allows the participating businesses to grow while maintaining their independence and individual brands.
Recommended: How to Grow a Business
Funding Inorganic Growth
Here’s a look at some ways your business may be able come up with the capital it needs to fund inorganic growth.
Business Loans
There are many different types of small business loans, including business acquisition loans. If you have good credit, you may qualify for a bank loan with low interest rates and favorable terms. If your business is new or you have fair credit, you may be able to get financing for inorganic growth through an online lender. These alternative lenders often have more flexible qualification criteria than banks, and also provide faster funding. However, loan amounts may be smaller and interest rates can be higher.
Equity Fundraising
Another option for funding inorganic growth is to bring on private equity investors. These individuals (or firms) can provide capital for you to acquire, merge with, or partner with another business, in exchange for equity in the company. Keep in mind, though, that investors may want a say in strategic decisions.
Invoice Financing
If you are looking for a smaller amount of financing to help fund a joint venture or strategic alliance, you might consider invoice financing. This allows you to leverage the value of unpaid invoices to get access to cash quickly. With invoice financing, lenders advance a percentage of your unpaid invoice amount (often as much as 90%). When your customer pays the invoice, you repay the lender the advance amount, plus fees.
Because invoice financing is backed by your invoices, it can be easier to qualify for compared to other types of business loans. However, invoice financing tends to cost more than other types of financing.
The Takeaway
Inorganic growth involves buying or joining forces with other businesses or opening new locations. It contrasts with organic growth, which is growth from within the company. Both inorganic and organic growth may involve outside financing. However, inorganic growth generally requires significantly more capital than organic growth.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What is the difference between organic growth and inorganic growth?
Organic growth happens over time and involves using internal resources to increase revenues and customers. Inorganic growth, on the other hand, happens quickly and typically involves acquiring, merging with, or partnering with another company.
What is a benefit of inorganic growth?
Inorganic growth enables your business to expand rapidly, since the company you acquire or partner with typically already has established systems, customers, and revenues.
What are the methods of inorganic growth?
Inorganic growth strategies include acquisitions, mergers, opening a new location, joint ventures, and strategic alliances.
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Yes, college is expensive. The real surprise: Housing can be pricier than tuition. At public four-year colleges in 2023-24, the average cost for housing and food was $12,770 — higher than the $11,260 for tuition and fees, according to a 2023 College Board report. Students at community colleges and private schools also faced similarly high housing costs.
High housing prices can impact a student’s ability to thrive at college or complete their degree. According to a 2019 report by Temple University’s Hope Center in Philadelphia, about 56% of surveyed students said they experienced housing insecurity — including the inability to pay rent — in the previous year.
“We see escalating prices and escalating costs whether you’re on- or off-campus, and so it’s becoming a bigger piece of the college education funding puzzle for a lot of families,” says Olan Garrett, associate vice president of student affairs at Temple University.
There are strategies to lower your college housing costs, from getting roommates to carefully comparing on- and off-campus options. Advisors at your college can guide you toward affordable options, even in emergency situations.
Before you take out more student loans than necessary to pay for college housing, consider these expert-approved tips.
Start early and do your research
Start looking for housing as early as possible — for many students looking off-campus, that will be mid- to late-fall for the next academic year, says Garrett. You may have more time if you want to live on-campus: that selection process typically opens in the spring, he says.
“The later you wait, the fewer options there will be,” Garrett says.
One way to get ahead of the curve: reach out to leasing agents in your community. “For example, if you’re going to an open house or an apartment tour, find the leasing agent and get in contact with them about what other available units might come up,” suggests Matt Aini, chair of the Student HOMES Coalition, a student-run organization that promotes affordable student housing policies. This could help you find apartments that aren’t yet listed online.
Do some research on your potential landlord or rental management company before signing a binding lease. Reach out to friends and peers and look up online reviews.
“How have people perceived the way the landlord works? Is it a landlord that’s very responsive to requests?” says Garrett.
Compare on-campus and off-campus options
Off-campus living may come with more independence and cheaper rent — but when it comes to comparing costs with on-campus options, it’s not always “apples to apples,” says Garrett.
With on-campus living, utilities like heat, water, electricity, trash and WiFi are typically baked into your housing fee. The dorm may also come fully furnished. Off-campus rent doesn’t usually include these services, so you’ll have extra college expenses. Off-campus apartments may also require a security deposit and first month’s rent upfront.
Most college websites offer online cost-of-living calculators that can help you compare average costs of living on- or off-campus.
If your school is close to home and you have the option to continue living there, you may consider commuting to save money on housing.
Aini, who is a senior at the University of California, Berkeley, lives with his parents nearby and commutes to campus.
“I made a very conscious decision,” Aini says. “And among other things, you see the cost. And I think it just makes things easier.”
Get roommates and manage expectations
Having a roommate is part of the quintessential college experience for many freshmen at American universities. Even after freshman year, living with roommates allows you to split rent and utility bills.
“I do believe there’s value in roommates or shared living environments,” says Brenda Ice, senior associate dean and senior director of residential life at Brown University in Providence, R.I. “This isn’t me saying, ‘try to pack in as many people as you can in a particular house or apartment,’ but I do believe there is both a social benefit of living with more than one person in a shared space, while also helping to cut down on costs.”
Be willing to compromise on amenities to get a place that’s within your budget. You may not be able to live in a brand new or recently renovated residence hall without roommates.
“Understand the first goal of this is to be able to live in a place of comfort that allows you to sleep, study, do the things you need to do,” Garrett says.
Reach out to university resources
For help navigating housing options, reach out to your university’s housing and residence life office. School administrators can walk you though on-campus options, and some can help with off-campus housing.
“Have a conversation with a housing officer,” Garret says. “In most cases, one size does not fit all.”
Many colleges offer off-campus housing databases with vetted landlords and properties. Some may even offer free workshops. For example, Brown works with a campus partner to teach students about financial literacy, understanding leases, connecting with neighbors and more, Ice says.
Even if your school doesn’t offer such robust housing resources, it likely has a housing officer. At North Seattle College, a community college, housing resource specialist Shannon Thomas helps students through emergency housing situations.
“I make connections with agencies and programs all throughout the area, whether it’s community service organizations, city or state programming, private landlords, or other schools and agencies,” Thomas explains.
Submit the FAFSA to minimize borrowing costs
If you need to take out student loans for housing, then prioritize federal student loans, which have more generous protections and flexible repayment options. You must submit the FAFSA to qualify for federal student loans and need-based Pell Grants. If you’ve borrowed the maximum amount in federal loans, consider private student loans as a last resort to fill in any funding gaps.
Read your lease and communicate with landlords
If you plan to live off campus, understand that leases are binding legal documents with major financial implications. Violating your lease terms may result in extra fees, eviction and a stain on your record that could make it difficult to rent an apartment in the future.
Some schools, like Brown, employ attorneys to help students with legal advice, including reviewing lease terms and navigating landlord disputes. You can also bring your lease documents to a free legal clinic at your school or in your community, says Aini.
If you’re already living off-campus and foresee an issue paying rent, reach out to your landlord proactively, Garrett says.
“I’m channeling my wife here, who’s a property manager, she would say, ‘communicate with your landlord early … if you know you’re going to be an issue, let them know you’re going to be an issue.’ Most landlords are willing to work with you up front,” he explains.
Apply for emergency housing grants
According to the 2019 Hope Center survey, 14% of students at four-year colleges said they experienced homelessness in the past 12 months. At community colleges, that figure was 18%. The vast majority of these students temporarily stayed with a relative or friend, the survey found.
Grants can help you get by in emergency situations where you’re at risk of losing housing. States, cities and institutions usually offer these grants. To learn about your options, reach out to the housing officer at your institution.
For example, colleges in Washington state can dole out the Washington Student Achievement Council (WSAC) emergency grant.
To apply for the WSAC grant, students typically first meet with a housing coordinator at their school, says Thomas, who oversees the WSAC grant program at North Seattle College. The amount of money students can get from this grant is flexible, though Thomas says it goes up to roughly $3,000.
“We will assess their housing needs, their basic needs and then we’ll prioritize what those are and set a course for finding them,” Thomas says. “A student might drop in and say, ‘we’re moving into an apartment that’s going to cost us ‘X’ amount of money. I only have so much. I am not receiving assistance from my family, or can’t pay for a variety of reasons. And so can you help me with this?’ And so what happens is, we take a request for financial assistance and we explore it as a team.”
In an urgent situation, Thomas says he may refer students to a shelter or arrange for a stay in a motel.
“It’s pretty clear that if you’re addressing the basic needs of your students, that you’re going to improve your retention rates … and you’re also going to improve the quality of community on your campus,” Thomas says.