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Apache is functioning normally

May 31, 2024 by Brett Tams

Inside: Learn how much your 80k salary is hourly. Plus find tips to make more money and live the lifestyle you want.

You want to know to look into this… 80k salary is a good hourly wage when you think about it.

When you get a job and you are making about $19 an hour, making over $80,000 a year seems like it would provide amazing opportunities for you. Right?

The median household income was $70,084 in 2021 not much different from the previous year (source). Think of it as a bell curve with $70 at the top; the median means half of the population makes less than that and half makes more money.

The average income in the U.S. is $55,350 for a 40-hour workweek; that is an increase of 1.1% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.

Obviously, $80k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher-than-average salary.

But, the question remains…can you truly live off 80,000 per year in today’s society? The question you want to ask all of your friends is $80000 per year a good salary.

In this post, we are going to dive into everything that you need to know about a $80000 salary including hourly pay and a sample budget on how to spend and save your money.

These key facts will help you with money management and learn how much per hour $80k is as well as what you make per month, weekly, and biweekly.

Typically at this salary, you enjoy sharing what do you do for a living.

Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…

Can I make a living on this salary?

$80000 a year is How Much an Hour?

When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 80k a year hourly. That way you can decide whether or not the job is worthwhile for you.

$80000 a year is $38.46 per hour

Breakdown of how much is 80k a year hourly

Let’s break down, how that 80000 salary to hourly number is calculated.

For our calculations to figure out how much is 80K salary hourly, we used the average five working days of 40 hours a week.

Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $80000 by 2,080 working hours and the result is $38.46 per hour.

80000 salary / 2080 hours = $38.46 per hour

That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.

You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.

What If I Increased My Salary?

Just an interesting note… if you were to increase your annual salary by $4K, it would increase your hourly wage by $1.92 per hour.

To break it down – 84k a year is how much an hour = $40.38

That isn’t a huge amount of money, but every dollar adds up to over $40 an hour.

How Much is $80K salary Per Month?

On average, the monthly amount would be $6,666.67.

Annual Salary of $80,000 ÷ 12 months = $6,666.67 per month

This is how much you make a month if you get paid 80000 a year.

What is $80k a year Weekly?

This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $80k salary a year, how much can I expect to make at the end of the week for my effort?

Once again, the assumption is 40 hours worked.

Annual Salary of $80000/52 weeks = $1,538 per week.

$80000 a year is how much biweekly?

For this calculation, take the average weekly pay of $1,538 and double it.

$1,538 per week x 2 = $3,076

Also, the other way to calculate this is:

Annual Salary of $80000 / 26 weeks = $3,076 biweekly.

How Much Is $80K Salary Per Day

This depends on how many hours you work in a day. For this example, we are going to use an eight-hour work day.

8 hours x 52 weeks = 260 working days

Annual Salary of $80000 / 260 working days = $307 per day

If you work a 10-hour day on 208 days throughout the year, you make $384 per day.

$80000 Salary is…

$80000 a year is how much an hour (Full Time)	Total Income
Yearly (52 weeks)	$80,000
Monthly	$6,667
Weekly (40 Hours)	$1,538
Bi-Weekly (80 Hours)	$3,077
Daily Wage (8 Hours)	$307
Daily Wage (10 Hours)	$384
Hourly Wage	$38.46
Net Estimated Monthly Income	$5,090
Net Estimated Hourly Income	$29.37

^{**These are assumptions based on simple scenarios.}

80k A Year Is How Much An Hour After Taxes

Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with a salary range of up to $160,200.

When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.

Every single tax situation is different.

On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.

So, how much an hour is 80000 a year after taxes?

Gross Annual Salary: $80,000

Federal Taxes of 12%: $9,600
State Taxes of 4%: $3,200
Social Security and Medicare of 7.65%: $6,120

$80k Per Year After Taxes is $61,080.

This would be your annual net income after taxes.

Hourly Wage after Taxes

To turn that back into an hourly wage, the assumption is working 2,080 hours.

$61080 ÷ 2,080 hours = $29.37 per hour

After estimated taxes and FICA, you are netting $61,080 per year, which is $18,920 per year less than what you expect.

***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, use a tax calculator to help you figure out how much your net paycheck would be.***

Consider the Cost of State Income Taxes

In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody who lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.

Thus, your yearly gross $80000 income can range from $54,680 to $64,280 depending on your state income taxes.

That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously, you need to pay taxes.

But, it can also put a huge dent in your ability to live the lifestyle you want on an $80,000 income.

$80k salary to Hourly

We calculated how much $80,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.

So, here is a handy calculator to figure out your exact hourly salary wage.

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80k salary lifestyle

Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person?

And there’s no wrong or right, it is what works best for you.

One of the biggest factors to consider is your cost of living.

In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $80,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.

To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.

As we noted earlier in the post, $80,000 a year is just above the median income by $20000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.

A stretch goal would be learning how to save 20000 in a year.

What a $80,000 lifestyle will buy you:

If you are debt-free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.

You can afford a home in a great neighborhood in MCOL city.
You should be able to easily meet your expenses each and every month.
Love life being financially stable.
Saving at least 15% of your income each month and working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.

When A $80,000 Salary Will Hold You Back:

However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 80k a year is going to be pretty darn difficult.

Three factors will keep holding you back:

You must pay off debt and cut all fun spending until that happens.
Break the paycheck-to-paycheck cycle.
Live a lifestyle that you can afford – not one you cannot.

It is possible to get ahead with money!

It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.

You can find out success is the best revenge when you cross over this salary threshold.

$80K a year Budget – Example

As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money left is for fun spending.

This is how zero based budgeting works.

If you want to know how to manage 80k salary the best, then this is a prime example for you to compare your spending.

You can compare your budget to the ideal household budget percentages.

recommended budget percentages based on $80000 a year salary:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$533
Savings	15-25%	$1000
Housing	20-30%	$1600
Utilities	4-7%	$267
Groceries	5-12%	$553
Clothing	1-4%	$67
Transportation	4-10%	$333
Medical	5-12%	$400
Life Insurance	1%	$20
Education	1-4%	$50
Personal	2-7%	$67
Recreation / Entertainment	3-8%	$200
Debts	0% – Goal	$0
Government Tax (including Income Taxes, Social Security & Medicare)	15-25%	$1577
Total Gross Income		$6,667

^**^{In this budget, prioritization was given to savings, basic expenses and no debt.}

Is $80,000 a year Good Money?

As we stated earlier if you are able to make $80,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.

You shouldn’t be questioning yourself if 80000 is a good salary.

However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.

This $80k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.

Check: Are you in the middle class?

In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).

The question you need to ask yourself with your 80k salary is:

Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?

In the future years and with possible inflation, in some expensive cities, 80,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 80,000 per year.

If you are looking for a career change, you want to find jobs paying six figures.

Is 80k a good salary for a Single Person?

Simply put, yes.

You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.

Learn exactly what is a good salary for a single person today.

Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $80000 per year.

This is a great opportunity to double $10k quickly in your spare time!

And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.

Is 80k a good salary for a family?

Many of the same principles apply above on whether $80000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.

The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child. Plus this does not include college.

The cost of raising a child is expensive! Any of us can relate to that!

So, the question really remains… can you provide a good life for your family by making $80,000 a year? This is the hardest part because each family has different choices, priorities, and values.

More or less, it comes down to two things:

The location where you live in.
Your lifestyle choices.

You can live comfortably as a family on this salary, but you will not be able to afford everything you want.

Many times when raising a family, it is helpful to have a dual-income household. That way you can provide the necessary expenses if both parties were making 80,000 per year, then the combined income for the household would be $160,000. Thus making your combined salary a very good income.

Learn how much money a family of 4 needs in each state.

Can you Live on $80000 Per Year?

As we outlined earlier in the post, $80,000 a year:

$38.46 Per Hour
$307-384 Per Day (depending on the length of day worked)
$1538 Per Week
$3076 Per Biweekly
$6666 Per Month

Next up is making $90000 a year.

Like anything else in life, you get to decide how to spend, save and give your money.

That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.

In addition, if you are early in your career, starting out around 45,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $80K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.

In fact, this might be a good time to learn how to trade stocks with the best Travel and Travel course.

Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.

But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.

Learn exactly how much do I make per year…

Did the post resonate with you?

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

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

Source: moneybliss.org

Apache is functioning normally

May 30, 2024 by Brett Tams

Inside: Get a financial budget binder to help stay on track with spending and saving goals. Learn how to use it as a guide to help you reach your financial goals! Stay motivated.

I know that when my family and I set a goal for saving money in our budget binder, we’re more likely to do so because we have visual reminders throughout the year of how much has been saved and what still needs to be done.

When it comes to financial goals, we want them all.

For example, you are trying to save more money or pay off debt, but you cannot track the progress you are making or find ways to make it happen.

You need to create a cute budget binder so you know the overall picture of finances and how it lines up with other events in your life.

It can be time-consuming to create a financial plan because most people lack what needs to be included. Save yourself some time and energy by using a personalized budget binder.

This in-depth guide provides step-by-step instructions on how to set up your budget binder along with downloadable worksheets to help get you started.

Learn how to create your budget binder and what tasks you can break up into sections for each week of the year.

Also, find out why it is important to be specific with your goals and how goal-setting can help us reach our financial goals faster!

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

What is a Budget Binder?

Budget binders are designed to keep track of expenses and income.

A budget binder is a tool that helps you organize your finances and plan for the future.

They can be used for various purposes, such as budgeting, tracking your spending habits, maintaining a financial diary, or even identifying the best times to save money.

Why a Budget Binder Matters?

It’s important to start this as early as possible because it will help keep you on track with your money goals and make sure you’re saving enough money for them.

A budget binder is a place where you can keep your personal finance worksheets. Each budget sheet found in the budget binder is tailored specifically to each person, so if there are certain aspects of managing your finances that aren’t working well for you, then it would be best to bring those sheets up with someone who can help fix them.

You can use it to create your own budgets from scratch or use a paid template.

If you’re creating your own personal budget sheets, don’t worry too much about making them Pinterest perfect! If they work for you, that’s what matters.

The Benefits Of a Budget Binder

It is important to have a budget binder. This is especially true for those who are looking to pay off debt or manage their finances in the future.

The benefits of using this budget binder as a tool include:

Helping you organize your finances and stay on track with your financial goals.
Providing insight into how much money you spend, where it goes, and what can be done about that.
Showing you exactly what steps will help you fix your current situation.

Ultimately, budget binders can help people with their personal finances by helping them stay out of the red and save for a rainy day.

It also helps in managing expenses and debt, which is important for saving up to live off of while still having some convenience. Plus anyone has access to the binder if they need it and can pick it up without skipping a beat.

With financial freedom comes an easier life where you don’t have to worry about money management and enjoy time freedom from your busy schedule because it all becomes automated!

Plus… This budget binder is also a great tool to use with children because it teaches them about saving up for their goals. This will teach kids that they can’t have everything right now and need to save.

How To Make a Budget Binder

A “Budget Binder” is a binder that contains the various budget printables for different places on the internet. These include sheets to help you get started, and use whatever sheets apply to your needs.

If you are tired of losing track of your finances and overspending money more than you would like. You don’t want to stress about what you spend or how much money is left over for retirement.

Let’s keep things simple with a custom budget binder!

This space-saving product will help you organize all of your receipts and bills so that nothing falls through the cracks, while still being stylish at the same time!

To help you get started, check out the Money Bliss Budget Binder.

What supplies do I need to put together a Budget Binder?

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

The budget binder can be as simple or fancy as you like and that’s the beauty of it – you’re creating something that you actually stick with!

At the end of the day, you need something to stay organized and keep you motivated.

Here are the supplies you need for your binder:

Binder: A 3-ring binder will do just fine. I use a 1″ inch binder and that suits my needs just perfectly. Here are some binders to choose from.

Dividers: Your budget binder will be divided into sections. So you need 5 or 8 tab dividers. Here are the ones with binder pockets (that I prefer) or ones without pockets.

Clear Sleeves: These are great to keep your vision board front and center as well as any other current financial goals you are working on.

Fun Colorful Pens: You need pens that will motivate you to actually use the binder. When I first started using my budget, it was hard because not many people know about this system. So what I did is I bought a pack of pens in my favorite color and I put them right on the inside cover. These are the pens I love!

Highlighter Set: This is a necessity. I have found color coding to be helpful and it makes the process of bill paying more fun. Especially, when you are coloring in your debt payoff chart or saving money chart. These are the marker set I use!

Sticky Notes: Let’s face it… we all love to use sticky notes.

Cash Envelopes: This is extremely helpful if you use the cash envelope system. You always know where your envelopes are located. Find cash envelopes that fit into your binder.

Printer: You have one of two options. You can print all of your budget binder printables from home or you can take them to get printed. The choice is totally yours. Personally, I have found laser printers to have the best value for printing at home.

Hole Punch: I would recommend a heavy-duty hole punch. This is something that will get heavy use and is easy to slide into a desk drawer.

Paper: Lastly, let’s talk about the paper. For the budget printables you use the most, you may want to upgrade from the basic 20# copy paper. You will see the difference by using at least 24#.

Budget Binder Categories

In your budget binder, you will need various sections to help you reach your money goals and improve your money management skills.

Specifically, this is what should be in a budget binder:

How many accounts do you have
How many credit cards are open
Any outstanding debt unpaid
How you want to live your life with money
When your bills are due
How to handle that stack of paperwork and mail
A budget
Your net worth
Your credit score
Investment summary
Your first money goal
Your vision board

You can also use these printable binders for keeping track of bills, debts, savings, expenses, and more!

Whatever your goal is for the financial aspect of your life, you can create a binder that will help motivate and inspire you to work towards it.

Budget Binder Printables

A budget is the most important tool to get your finances under control.

The Budget Binder Printables are a great way for you to create and stick with your own personal budget that has goals, targets, and an overall financial plan. It allows you to stay on track of what’s going into each account so that it can be tracked regularly throughout the year (and even before then).

A budget binder is a living and constantly used document that contains all of your financial and personal information, such as income and expenses.

These are the types of budget binder printables you need:

Establishing a budget.
Listing monthly goals as well as long term vision.
Organizing personal information into categories.
Tracking income and expenses.
Bill Payment tracker
Saving tracker
Debt payment tracker

The Budget Binder Printables is a great way to stay motivated with your financial goals.

It will give you the motivation and tools that you need in order to achieve what it takes.

It’s important to keep track of your income and expenses so you can stay on track with your goals.

Budget Binder Ideas

Many people have their own budget binders in order to help them practice spending only the amount that they earn and to motivate them to earn more income.

By creating your own budget binder, you are able to utilize whatever inspiration you want which is why one can use their binder as whatever motivates them. If you are looking to save money, then the budget binder can be full of pictures and graphics about saving up or getting out of debt.

Typically, I recommend making your own budget binder because it gives you the flexibility to add to it.

Many people rave about their budget binder with envelopes as well.

However, looking at other budget binders will give you the best budget binder ideas. Here are some great examples:

Budget Binder from Walmart

Here are the Budget Binders you can find at Walmart. As always, we look for those with higher reviews!

Walmart is known when you need somewhere cheap to buy all their necessities, that is the place to go!

Pen+Gear 5.5″ x 7.5″ Budget Planner, 80 Pages

Track your spending and set your financial goals with our Pen+Gear Budget Planner.

This colorful 80-page planner is designed to help you keep your budget on track while staying organized when it comes to your spending. With guided prompts for tracking spending and financial goals, this handy-dandy planner is a must-have item for any parent, student, traveler, busy body, or young professional.

Use the labeled sections to keep track of things like housing costs, entertainment spending, your emergency savings account, and even charitable donations. Plus, its compact size makes it easy to plan your budget from anywhere you are, wherever you go.

Buy Now on Walmart

12-Month Budget Planner Bill Tracker Organizer with Calendar and Pockets

Whether you’re managing your household finances, just venturing out on your own or running a small business, the Budget Binder is your comprehensive guidebook to help you stay on track to your dreams (and thrive within your means!).

Knowing your financial status each day/week/month is powerful intel that you can use to make good decisions about your money. Good decisions add up to a financial future you dream of! The first step of this journey is yours.

Buy Now on Walmart

Budget Binder on Etsy

Handmade items are becoming more popular, and Etsy is a great place to find them. If you are interested in purchasing an item that has been personalized, the seller might still be able to do so for you.

An Etsy budget binder is a unique way of keeping your financial goals in one easy-to-access location. It can be made from any material you choose – paper, cloth, or even wood! You can use it as a planner or just have it sit on your desk as a decoration.

Here are our personal favorites:

Paycheck Budget Planner, Printable, PDF, Instant Download

This PAYCHECK BUDGET planner is perfect for those who want to track their planned paycheck income, savings, and expenses against the actual amounts. Use this either to track your income and expenses during each paycheck period, or for the month.

Flexible to use for either traditional budgeting or for zero-based budgeting. With zero-based budgeting, all of your income is accounted for specific expenses and savings.

Buy Now on Etsy

Budget Planner Printable Finance Planner Bi-weekly Budget

This Budget Planner’ is based on the zero-based budget method, which is a great way to keep your finances in order and gives every dollar you earn a job to do.

By using this budget planner, you can understand exactly where your money is going and help you get on track with your finances.

You will be able to notice patterns in your spending behavior, whether good or bad, and gain control over your spending habits to reach your financial goals.

Buy Now on Etsy

Digital Budget Planner

If you’re ready to take control of your money, this is the tool for you. This digital budget planner was created to help you think critically about your spending habits and make better decisions with your money.

A hyperlinked PDF that can be used with your Apple iPad or Android device, stylus and favorite annotation app.

It includes a monthly and paycheck budget, along with a debt, expense & bill tracker, just to name a few. It’s the perfect tool for anyone looking to get their finances in order.

Buy Now on Etsy

Printable Finance Planner Print at Home Budget Plan Budget

This print at home page is one of our many, printable planner pages. It is perfect to assist you in planning your life, and keeping on top of your day-to-day life.

You will receive (instant download) .pdf files, which are ready to be printed at home or sent to a printing company for more professional printing.

Buy Now on Etsy

Budget Binder at Amazon

The best part of shopping for Budget Binders at Amazon is two-day shipping. Also, the prices tend to be more competitive than you would find elsewhere.

Even if you cannot decide which one you like put it in your cart for later or create a wish list of the budget binders you are considering.

Clever Fox Budget Planner & Monthly Bill Organizer with Pockets

Are you looking for the best monthly budget planner to keep your finances organized?

Clever Fox Budget Book will help you keep your money organized, spend well, start saving, set and achieve financial goals.

It can help you to manage all your personal finances, savings, budgets, debt, payments, bills due, cash flow and expense tracking in 1 place.

Buy Now on Amazon

02/19/2024 11:52 am GMT

Smart Planner Budget Book

63,28 €

Take control of your personal finances with our 12-month budget planner.

Containing a wide variety of trackers, calendars and budget planning sheets. This financial planner is ideal for tracking your income, expenses, budget, savings and money goals.

Buy Now on Amazon

02/19/2024 11:57 am GMT

Gogirl Budget Planner and Monthly Bill Organizer

Are you looking for the best compact monthly budget planner to keep your finances organized?

GoGirl Finance Planner will help you keep your money organized, spend well, start saving, and set and achieve your financial goals. It can help you to manage all your personal finances, savings, budgets, debt, payments, bills due, cash flow and expense tracking in one place.

Buy Now on Amazon

02/19/2024 11:53 am GMT

Lamare Budget Planner

A budget planner should help you gain control over your finances – but too many people LACK THE TOOLS to truly make a change.

The Lamare Budget Planner and money saver features highly effective money planner tools, including a Daily Spending & Budget Tracker, bill tracker, Money Saving Organizer, Debt Tracker, goal setter, and Monthly & Yearly budget overviews.
A 12 month plan to get you on your way to financial freedom.

Buy Now on Amazon

02/19/2024 11:57 am GMT

Budget Binder at Target

Most women like to shop at Target. they want clothes that are affordable without sacrificing style. Consumers flock to the chain for its wide selection of trendy items, reasonable prices, and convenient location.

Plus with curbside service, you can order online and pick-up same day!

Budget Binder Cover Ideas

Every personal goal, small and large, starts with a dream.

Without knowing it intuitively, we can think of something we want or want to do and you can make it a reality.

With your cute budget binder, create a cover page that you will love and inspire you.

This is something you will identify once you make your smart financial goals.

Are you ready to Make Your Budget Binder DIY

A budget binder is a DIY money tool for beginners and everyone along their money journey.

It contains a worksheet with the different parts of your budget and an open-ended spreadsheet to track how much you spend on each area.

If you want to live life with intention, creating a budget binder will help your progress faster.

Since the budget binder is a physical binder in which you keep all of your monthly bills, receipts, and other expenses. It is best to create a Budget Binder DIY.

It is easier for you to live life on your terms when you live below your means. The budget binder, whether in paper or digital format, can help you organize your tasks for productivity and success.

Once you finish yours, please share pictures with us!

This is one tool that will help you find long term financial success.

Whether you track your spending or use an app like Simplifi, having this tool at hand can help with staying on track financially even though there are always going to be unexpected expenses such as a broken appliance.

Now, learn how to budget on a low income.

Did the post resonate with you?

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

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

Source: moneybliss.org

Apache is functioning normally

May 30, 2024 by Brett Tams

Do you want to learn how to make $50 a day? Whether you are looking to make extra income with a side hustle or if you are looking for a full-time career, there are many ways to make $50 or more each day. There are many ways to make $50 a day, like working from…

Do you want to learn how to make $50 a day?

Whether you are looking to make extra income with a side hustle or if you are looking for a full-time career, there are many ways to make $50 or more each day.

There are many ways to make $50 a day, like working from home or selling things online. Learning how to make extra money can change your life, whether it’s for daily expenses, saving for big goals, or even early retirement. Making $50 a day can be a stepping stone or a big achievement.

Best Ways To Make $50 a Day

Below are the best ways to make $50 a day.

Recommended reading: How To Make $100 A Day

1. Sell printables

Earning $50 a day can be possible with printables. Making and selling things on Etsy is a super creative way to earn money on the internet. It’s especially great for people who are into art and creativity to make some extra cash.

Printables are digital files that customers can download and print on their own. Some examples of what you can sell on Etsy include shopping lists, gift tags, art you can print and hang on your wall, travel checklists, and coloring pages.

Plus, if you want to learn how to make $50 dollars a day in passive income, then selling digital products like printables is one option to start with.

I recommend reading How I Make Money Selling Printables On Etsy to learn more.

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

2. Proofreading

Earning $50 a day might seem tricky, but it’s totally possible if you try proofreading. That’s when you read writing to catch and fix mistakes.

If you like spotting mistakes in writing and want to make $50 every day, then learning to proofread could be a good fit for you.

Proofreading can be something you do on the side or turn into a full-time job that you can do from home. And yes, you can definitely make $50 a day with it. Lots of proofreaders make around $40,000 a year or even more.

To learn more about proofreading, please read How To Start A Proofreading Business And Make $4,000+ Monthly (this is actually an interview with my sister-in-law, who is a very successful proofreader and editor!).

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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.

3. Blogging

When I first started blogging, one of my goals was to make $50 a day. I have now completely surpassed that goal by a lot, so I know that it is possible!

Starting a blog can be an exciting way to earn some extra cash. You might be surprised to find out that blogging can be quite affordable to start. With a little bit of effort, your blog just might become a place where you can share what you love, and earn money doing it.

A blog is a website that can be about whatever topic you are interested in writing about, such as personal finance, travel, food, organization, family, pets, and more.

You can learn how to start a blog for free at How To Start A Blog FREE Course. In this free course, I teach you what you need to know about starting a blog, from the technical stuff to making your first money and getting people to read it.

There are also many other ways to make money similar to this as well, such as by starting a YouTube channel or TikTok.

4. Answering paid online surveys

Making $50 a day from just surveys would be hard, I will not lie. But, you can combine answering paid online surveys with some other side hustles so that you can reach your $50 a day goal.

When I was paying off my student loans, I made sure to fill out lots of surveys every week. I did it before work, during my lunch break, or after work. It was great because I could earn money from survey sites whenever I had free time.

Survey companies pay you to do things like answer surveys, watch videos, and try out products. Sometimes, they even give you free products so you can test them out and give your opinion.

Here are some online survey companies that pay you for your opinions:

American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
User Interviews – This is a great site for online focus groups that pay over $50.
Pinecone Research – This is a great site that occasionally lets you test out physical products (I was once sent toilet paper to review).

5. Bookkeeping

If you’re good with numbers, bookkeeping is a way to make $50 a day. Bookkeepers help businesses keep track of their finances. This job can be done from home, making it super flexible.

You don’t need to be an accountant or have any previous experience. This is a skill that anyone can learn and then do from home.

This job can make you more than $40,000 a year, and there’s a lot of potential for advancement. Many different kinds of businesses need bookkeepers, so it’s a great career choice to begin with.

Recommended reading: Online Bookkeeping Jobs: Learn How To Get Started Today

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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.

6. Sell dog treats

Starting a dog treat business at home is a fun way to make an extra $50 a day.

People love their pets and are willing to spend money on homemade, quality treats. With a low starting cost, you can bake treats right in your kitchen!

You can create all sorts of goodies like cupcakes, cookies, cakes, and more, just for dogs.

You can learn more at How I Make $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).

7. Walk dogs

You can easily start getting clients by offering to walk dogs or pet sit in your neighborhood or town.

Many people need trustworthy people to look after their pets while they’re at work or away, and by offering this service, you can earn a good amount of money each day.

Here are some possible earnings:

Dog walking usually earns you between $15 to $35 an hour per dog.
For overnight pet sitting, rates can start at $25 per day and go up.
If you watch two dogs a day at $50 each, that’s a neat $100 per day.

I really like using Rover for dog walking, and it’s what I’ve used in the past. I like how user-friendly the site is, and there are always a bunch of pet owners searching for dog walkers, which means there’s plenty of demand. There are also other great sites out there, depending on what you’re interested in!

My sister and my mother-in-law are both pet sitters, and they really enjoy it!

8. Flip items for resale

Flipping items for a profit is a way to make an extra $50 a day. Flipping means you buy something at a lower price and sell it for more. And, you can start by selling stuff that you already have!

I have sold a lot of things online over the years, from clothing to furniture and even old tires.

You might have clothes you don’t wear, an old phone, books, unused gift cards, CDs, DVDs, kitchen items, jewelry, and more to sell. The possibilities are endless. I’ve heard that the typical household has about 300,000 things, so I bet you could look around your home and find some items to sell pretty easily.

And, if you want to learn how to make $50 in 10 minutes (or any other short amount of time), then selling something you already have is usually one of the quickest options.

You can sell on many different sites and online platforms as well, such as eBay, Craigslist, Facebook Marketplace, and more.

I recommend watching the free webinar Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days to learn how to make money by flipping items.

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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.

9. Play games online

Earning $50 a day can be as fun as playing games on your computer or phone and being able to make money online.

Game apps pay real money rewards (as well as free gift cards) because they make their money from ads and in-app purchases. They share some of their earnings with you to keep you playing their games.

Here’s a quick list of the top game apps that pay real cash:

KashKick
Swagbucks
InboxDollars

You can get paid to play games like Coin Master, Monopoly, Yahtzee, and Bingo.

Recommended reading: 23 Best Game Apps To Win Real Money

10. Deliver groceries

Instacart is a popular website where you can earn extra cash by shopping for and delivering groceries. It lets you use your spare time to make some additional money.

I have used Instacart many times to order groceries for myself, and it is such a helpful service.

When you work with Instacart, you can make up to $25 per hour in the best cases, but typically, most drivers earn around $15 per hour.

You can learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?

11. Deliver food

Earning $50 a day can be as simple as delivering food!

With the boom of food delivery apps, you have many options to choose from. Apps like Grubhub, DoorDash, and Uber Eats let you pick up food from restaurants and deliver it to hungry customers.

12. Freelance writing

If you want to earn $50 a day, freelance writing is a smart choice. You can write about things you know and love, and there are plenty of places looking for your words!

New freelance writers can typically make around $50 per article that they write. And, as you gain experience, you can increase your fee. I know many freelance writers who make $200+ per article and even some who make $1,000 or more per article.

Being a freelance writer has been one of my gigs for many years, and it is a great way to earn extra cash. You get to make your own schedule, call the shots as your own boss, write about topics you’re interested in, and more.

Recommended reading: 14 Places To Find Freelance Writing Jobs – (Start With No Experience!)

13. Online tutoring

Would you like to earn extra cash by sharing your knowledge? Online tutoring could be a great fit for you! With the internet, you can connect with students all over the world.

As a tutor, you might spend 30 minutes to an hour teaching a lesson, answering questions online, or doing one-on-one video sessions with students.

The amount of money you can make depends on factors like the subject you’re tutoring, the length of the session, and more. For instance, tutoring in advanced subjects like college calculus usually pays more than tutoring in elementary school math.

14. Sell photos

Did you know your photography skills can become a way to earn some extra cash? It’s true! With the right approach, you can start making $50 a day or more by selling your photographs.

One of the easiest ways to start earning from your photos is by selling them on stock photo websites. These sites act as a middleman between you and customers who need photos for their own projects. You can sell pictures that you’ve already taken or capture new images for this purpose.

Places to sell photos include:

Shutterstock – This is a well-known site where you can upload photos and earn money every time they’re downloaded.
iStock by Getty Images – Here, you can sell your images across different platforms, and whenever someone downloads them, you earn income.
Adobe Stock – If you join Adobe Stock, you can potentially earn from the images that users download for their creative needs.

Recommended reading: 18 Ways You Can Get Paid To Take Pictures

15. Virtual assistant

Are you good at organizing things and helping others stay on track? If yes, then virtual assisting might be a great way for you to make $50 a day.

As a virtual assistant, you might handle tasks like managing social media, formatting and editing content, scheduling appointments or travel, managing emails, and much more. Essentially, you get paid to take care of any task in someone’s business that they don’t have to do themselves.

Typically, you can start making around $15 to $20 per hour as a virtual assistant, but sometimes you might even earn double or triple that when you’re just starting out.

Recommended reading: Best Ways To Find Virtual Assistant Jobs

16. Online transcription

Transcription work is becoming more popular, and you can find online jobs from home as a transcriptionist. Your job would involve listening to audio and turning it into written text.

The average pay for online transcriptionists usually falls between $15 to $30 per hour, with newbies often starting at the lower end of that scale.

A helpful free workshop to take is Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.

17. Affiliate marketing

Affiliate marketing lets you make money by promoting products or services online, and you don’t need anything special to begin.

With affiliate marketing, when someone you refer buys a product through your special link, you earn a commission. It’s as straightforward as that.

First, choose products you genuinely like and think others will enjoy too. Next, join their affiliate program. They’ll give you a unique affiliate link. This link keeps track of who clicks on it and makes a purchase based on your recommendation.

For me, I love affiliate marketing. I think it’s one of the best ways to make at least $50 a day, and it is what I do to make money with my online business.

I recommend signing up for Affiliate Marketing Tips For Bloggers – Free eBook to learn more.

18. Rent out your spare room

If you have an extra room in your home, renting it out could be a smart way to earn some additional cash.

Having a roommate, whether it’s someone living with you full-time or occasionally renting out a spare room on Airbnb, can help you earn extra cash every month.

It might not add up to $50 every day, but by having a roommate or renting out a spare room on Airbnb, you could make several hundred dollars a month, or even over $1,000 extra each month.

Some people take it even further by purchasing a large house with multiple bedrooms and renting out every single room (also known as house hacking). This way, you might have three or four renters living with you. This arrangement could cover your entire mortgage payment and maybe even leave you with some extra spending money on top of what you earn from having roommates.

Over the years, I’ve had many roommates. When I owned a home, I often rented out one or even two spare bedrooms to long-term renters, including a friend and my sister, to earn extra money. This helped us manage our monthly expenses better, reducing financial stress. We could earn around $300 to $400 per month for each bedroom. Although living with roommates isn’t always smooth sailing (arguments can happen), setting clear ground rules and having a contract can help prevent conflicts.

19. Rent out your RV

If you have an RV just sitting around, you might be able to earn $50 to $300 a day, or even more, by renting it out.

Many people have RVs that they don’t use very often. Instead of letting it sit there, you could earn extra cash by renting it out. Indeed, you might be able to make $100 a day or more by renting out your RV to others.

RVshare is helping travelers save money by cutting out the middleman through renting RVs directly from owners.

It’s like Airbnb, but for RVs.

Recommended reading: How To Make Extra Money By Renting Out Your RV.

Frequently Asked Questions

Below are answers to common questions about how to make $50 a day.

How to make $50 in one day?

You can make $50 in one day by selling services like pet sitting, house cleaning, or freelancing online. Platforms like TaskRabbit connect you with people who need quick assistance with chores and other odd jobs as well.

How can I make $100 in one day?

To earn $100 in one day, you might want to try a combination of gigs such as driving for Uber or Lyft, starting a freelance business (like writing, graphic design, or proofreading), or selling high-demand items online.

How to make $50 dollars in 10 minutes?

Making $50 in 10 minutes can be a challenge, but it can be possible by selling something online where you can get cash immediately. For example, you may be able to sell something that you have, like an old cell phone that you no longer use, and get cash for it.

What are some easy ways to earn $50 a day without leaving home?

You can earn $50 a day from home by tutoring online, transcribing audio files, or selling your craft on websites like Etsy. I make over $50 online every day from home, so it is definitely possible.

What are some quick methods to make $50 fast for beginners?

Beginners can make $50 quickly by doing tasks like yard work, signing up for food delivery services, or selling unused items on local marketplaces.

How can a kid earn $50 in just one day?

Kids can earn $50 in one day by setting up a lemonade stand, doing extra chores for neighbors, babysitting, or tutoring younger children.

How to make $50 dollars a day in passive income?

To earn $50 a day in passive income, you may want to rent out rental properties, invest in dividend stocks, or create online courses or ebooks that sell over time.

How To Make $50 a Day – Summary

I hope you enjoyed this article on how to make $50 a day.

You have lots of choices when it comes to being able to make $50 a day, so I recommend starting by picking gigs that match what you like and how you live.

For example, if you like giving your opinions, online surveys can make you money. Or, if you enjoy being out and about, delivering food or groceries might be good for you. If you’re into freelance work, there are tons of opportunities in writing, helping online, and teaching.

It’s possible to make $50 every day, and with some help, you can try out these options to see what works best for you.

What would you do to make $50 a day or more?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

May 30, 2024 by Brett Tams

Inside: Learn what 22 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.

You’re probably wondering if I made $22 a year, how much do I truly make? What will that add up to over the course of the year when working?

Is $22 an hour good?

Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $22.50 an hour annually?

In this post, we’re going to detail exactly what $22 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.

That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.

By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.

The ultimate goal with money success is to be wise with how you spend your money.

If that is something you want too, then keep reading. You are in the right place.

$22 an Hour is How Much a Year?

When we ran all of our numbers to figure out how much is $22 per hour is an annual salary, we used the average working day of 40 hours a week.

40 hours x 52 weeks x $22 = $45,760

$45,760 is the gross annual salary with a $22 per hour wage.

As of June 2023, the average hourly wage is $33.58 (source).

Let’s breakdown how that number is calculated

Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours.

Then, multiply the hourly salary of $22 times 2,080 working hours, and the result is $45,760.

That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.

Very close to $46000 a year.

Work Part Time?

But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $22 an hour.

Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $22 times 1,040 working hours, and the result is $22,880.

How Much is $22 Per Month?

On average, the monthly amount would average $3,813.

Annual Amount of $45,760 ÷ 12 months = $3,813 per month

Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.

Plus by increasing your wage from $18 an hour, you average an extra $8000 per year. So, yes a few more dollars an hour add up!

Work Part Time?

Only 20 hours per week. Then, the monthly amount would average $1,906.

How Much is $22 per Hour Per Week

This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?

Once again, the assumption is 40 hours worked.

40 hours x $22 = $880 per week.

Work Part Time?

Only 20 hours per week. Then, the weekly amount would be $440.

How Much is $22 per Hour Bi-Weekly

For this calculation, take the average weekly pay of $880 and double it.

$880 per week x 2 = $1,760

Also, the other way to calculate this is:

40 hours x 2 weeks x $22 an hour = $1,760

Work Part Time?

Only 20 hours per week. Then, the bi-weekly amount would be $880.

How Much is $22 Per Hour Per Day

This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.

8 hours x $22 per hour = $176 per day.

If you work 10 hours a day for four days, then you would make $220 per day. (10 hours x $22 per hour)

Work Part Time?

Only 4 hours per day. Then, the daily amount would be $88.

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

This is the perfect side hustle if you don’t have much time, experience, or money.

Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.

If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!

This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.

Virtual Savvy

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Swipe our exact methods to start earning a living from anywhere as a VA – no experience needed!

Learn More

Download Free Checklist

$22 Per Hour is…

$22 per Hour – Full Time	Total Income
Yearly Salary (52 weeks)	$45,760
Yearly Salary (50 weeks)	$44,000
Monthly Salary (173 hours)	$3,813
Weekly Wage (40 Hours)	$880
Bi-Weekly Wage (80 Hours)	$1,760
Daily Wage (8 Hours)	$176
Net Estimated Monthly Income	$2,911

^{**These are assumptions based on simple scenarios.}

Paid Time Off Earning 22 Dollars an Hour

Does your employer offer paid time off?

As an hourly employee, you may or may not get paid time off.

So, here are the scenarios for both cases.

For general purposes, we are going to assume you work 40 hours per week over the course of the year.

Case # 1 – With Paid Time Off

Most hourly employees, get two weeks of paid time off which is equivalent to 2 weeks of paid time off.

In this case, you would make $45,760 per year.

This is the same as the example above for an annual salary making $22 per hour.

Case #2 – No Paid Time Off

Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.

Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.

So, let’s assume you take 2 weeks off without paid time off.

That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $22 times 2,000 working hours, and the result is $44,000.

40 hours x 50 weeks x $22 = $44,000

You would average $176 per working day and nothing when you don’t work.

$22 an Hour is How Much a year After Taxes

Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.

Also, every single person’s tax situation is different.

On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.

Gross Annual Salary: $45,760

Federal Taxes of 12%: $5,491
State Taxes of 4%: $1,830
Social Security and Medicare of 7.65%: $3501

$22 an Hour per Year after Taxes: $34,938

This would be your net annual salary after taxes.

To turn that back into an hourly wage, the assumption is working 2,080 hours.

$34,938 ÷ 2,080 hours = $16.80 per hour

After estimated taxes and FICA, you are netting $16.80 an hour. That is $5.20 an hour less than what you thought you were paid.

This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.

Plus budgeting on a $16 an hour wage is much different.

Understand the difference between gross pay vs net pay.

$22 an Hour Salary

Now, you get to figure out how much you make based on your hours worked or if you make a wage between $22.01-22.99.

This is super helpful if you make $22.25, 22.40, or $22.66.

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$22 an Hour Budget – Example

You are probably wondering can I live on my own making 22 dollars an hour? How much rent can you afford at 22 an hour?

We have figured out how much is $18 an hour annually is $45,760.

Using our Cents Plan Formula, this is the best case scenario on how to budget your $22 per hour paycheck.

When using these percentages, it is best to use net income because taxes must be paid.

In this example, we calculated $22 an hour was $16.80 after taxes. That would average $2,911 per month.

According to the Cents Plan Formula, here is the high level view of a $22 per hour budget:

Basic Expenses of 50% = $1455.74
Save Money of 20% = $582.30
Give Money of 10% = $291.15
Fun Spending of 20% = $582.30
Debt of 0% = $0

Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and have fun money.

To further break down an example budget of $22 per hour, then using the ideal household percentages is extremely helpful.

recommended budget percentages based on $22 per hour wage:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$301
Savings	15-25%	$610
Housing	20-30%	$915
Utilities	4-7%	$191
Groceries	5-12%	$305
Clothing	1-4%	$38
Transportation	4-10%	$153
Medical	5-12%	$191
Life Insurance	1%	$15
Education	1-4%	$21
Personal	2-7%	$57
Recreation / Entertainment	3-8%	$114
Debts	0% – Goal	$0
Government Tax (including Income Taxes, Social Security & Medicare)	15-25%	$902
Total Gross Income		$3,813

^**^{In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.}

Can I Live off $22 Per Hour?

At this $22 hourly wage, you are close to double the minimum wage. Things should be easy to live off this $22 hourly salary or about $45,000 a year.

However, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.

Is it doable? Absolutely.

In fact, $22 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.

Can you truly live off $22 an hour annually?

You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.

If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.

You need to do is change your money mindset.

This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 22 dollars per hour. No going into debt for me. I will start saving money.

In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $22 an hour.

Yes, you can do it, and as you can see that it is possible with the sample budget of $22 per hour.

Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.

Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.

5 Ways to Increase Your Hourly Wage

This right here is the most important section of this post.

You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.

Even an increase of 50 cents to $22.50 will add up over the year. An increase to $23 an hour is even better!

1. Ask for a Raise

The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.

If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.

2. Look for A New Job

Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.

It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $22 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.

3. Find a New Career

Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.

For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.

It is important to uncover what should I do for a living.

4. Find Alternative Ways to Make Money

In today’s society, you need to find ways to make more money. Period.

There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.

So, you need to find side hustle – another way to make money.

Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.

5. Earn Passive Income

The last way to increase your hourly wage is to start earning passive income.

This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially sound happens.

By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.

Here is an example:

You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.

One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.

Related Question: How Fast Can you Make Money in Stocks? The Real Answer

Tips to Live on $22 an Hour

In this last section, grasp these tips on how to live on $22 an hour. On our site, you can find lots of money saving tips to help stretch your income further.

Here are the most important tips to live on $22 an hour. Highlight these!

1. Spend Less Than You Make

First, you must learn to spend less than you make.

If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.

In order to break that dreadful cycle, it means your expenses must be less than your income.

And when I say income, it’s not the $22 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $22 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.

So, your net income has to be less than your gross income.

2. Living Below Your Means

You need to be happy. And living on less can actually make you happier. Studies prove that less is better.

Finding contentment in life is one thing that is a struggle for most.

We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.

Have you ever taken a step back and looked at what you really need?

Once you are able to find contentment with life, then you are going to be set for the long term with your finances.

Here is our story on owning less stuff. We have been happier since.

3. Make Saving Money Fun

You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!

It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Try the 100 envelope challenge to save $5000.

Find new ways of saving money and have fun with it.

Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.

Here are plenty of things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.

And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.

4. Make More Money

If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.

You need to be an advocate for yourself.

Find ways to make more money.

It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.

Whatever path you take, that’s fine. Just find ways to make more money. Period.

Check out these low stress jobs that pay well without a degree!

5. No State Taxes

Paying taxes is one option to increase what you take home in each paycheck.

These are the states that don’t pay state income taxes on wages:

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.

Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher-income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.

6. Stick to a Budget

You need to learn how to start a budget. We have tons of budgeting resources for you.

While creating a budget is great, you need to learn how to use one.

You do not have to budget down to every last penny.

You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.

Budget Help:

7. Pay Off Debt Quickly

The amount that you pay interest on debt is absolutely absurd.

Unfortunately, that is how many of these companies make their money from the interest you pay on debt.

If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.

Here’s a debt calculator to help you. Figure out your debt free date.

Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.

It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.

Here are resources now for you to pay off your debt:

Jobs that Pay $22 an Hour

You can find jobs that pay $22 per hour. Polish up that resume, cover letter, and interview skills.

Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.

First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.

Possible Ideas:

Virtual Assistant – Get free training NOW!
Customer service representatives
Bank tellers
Freelance writers
Restaurant Kitchen staff
Truck driver
Uber /Lyft driver
Security guard
Movers
Warehouse workers
Companies that pay more than $22 per hour: Target, In-and-Out Burger, Panera Bread, Burger King, Costco, Wayfair, Amazon, Best Buy, Target, Wells Fargo, Disney World, Disney Land, Bank of America, JP Morgan, Cigna, Aetna

$22 Per Hour Annual Salary

In this post, we detailed 22 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.

How much is 22 dollars an hour annually…

$45,760

This is right between $45000 per year and $46k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.

Use the sample budget as a starting point with your expenses.

You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!

Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.

Learn exactly how much do I make per year…

Did the post resonate with you?

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

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

Source: moneybliss.org

Apache is functioning normally

May 30, 2024 by Brett Tams

Retail banking involves offering financial services to individual consumers rather than businesses or other banks. It encompasses a range of products and services, such as checking and savings accounts, mortgages, personal loans, credit cards, certificates of deposit (CDs), and more.

Retail banking is different from corporate banking, which is the part of the banking industry that serves large companies and corporate customers. Retail banks can be local community banks, online banks, or the divisions of large commercial banks. Credit unions also offer retail banking.

Read on for a closer look at what retail banking is and how it differs from corporate banking.

What Is Retail Banking?

Retail banking, also known as personal or consumer banking, refers to financial services provided to individuals. This type of banking is designed to serve the general public and to help people and families manage their money, obtain credit, and save for the future.

Retail banks focus on making banking services easily accessible, either through physical branches, ATMs, and/or online platforms. These banks play a crucial role in the economy by offering checking accounts, high-yield savings accounts, certificates of deposit, loans, and other financial products that help individuals safely store, manage, and grow their money.

Though some retail banks also work with small businesses, retail banking is different from corporate (also known as commercial) banking, which involves working with commercial entities, such as large businesses, governments, and institutions.

Most large-scale banks have retail banking divisions. Credit unions and smaller banks, on the other hand, may be exclusively focused on retail banking.

Recommended: 12 Things To Consider When Choosing A Bank

How Does Retail Banking Work?

Retail banking works by offering financial products and services tailored to consumers. These services are designed to help individuals and families manage their finances efficiently, save for the future, and access credit cards and loans. Retail banks make money primarily through interest on loans, fees for services, and charges for various banking products.

Features of Retail Banking

Retail banking offers a hub for all of your basic financial transactions. Here’s a look at some of the products and services they provide.

• Savings and checking accounts: Retail banks offer savings and checking accounts to help individuals manage their money. Savings accounts typically earn interest, while checking accounts provide easy access to funds for day-to-day transactions.

• Consumer loans: Retail banks commonly offer personal loans, auto loans, and home mortgages. These loans can help people finance significant purchases or investments, such as buying a home or car.

• Credit Cards: Retail banks issue credit cards that allow consumers to borrow money up to a certain limit for purchases. These cards often come with rewards, cash back, and other incentives.

• Online and mobile banking: Retail banks typically provide online and mobile banking services, allowing you to manage your accounts, transfer money, pay bills, and access other banking services from your computer or smartphone.

• Investment services: Some retail banks offer investment products like mutual funds, retirement accounts, and brokerage services to help customers build wealth over time.

• Customer service: Retail banks typically emphasize customer service. Many provide personalized financial assistance through branch staff, call centers, and online support.

Types of Retail Banks

Retail banks come in various forms, each catering to different customer needs and preferences. Here’s a look at some of the main types of retail banks.

• Commercial banks: Many people access retail banking through one of the large, commercial banks, which generally offer a retail banking division along with corporate banking services.

• Credit unions: Credit unions are nonprofit financial institutions owned by their members. They often provide similar services to commercial banks but with a focus on serving the financial needs of their members, usually offering lower fees and better interest rates.

• Online banks: Online banks operate exclusively online, without physical branches, though you typically have access to a partner network of ATMs. They often offer higher interest rates on savings accounts and lower fees due to reduced overhead costs.

• Community Banks: Community banks are smaller, locally-focused institutions that prioritize serving the needs of their local communities. They offer personalized customer service and often have a strong understanding of their local markets.

Recommended: Big Banks vs Small Banks: Key Differences?

How Is Retail Banking Different From Corporate Banking?

Retail banking and corporate banking represent two different sectors of the banking industry, each serving different customer bases and offering different services.

Retail banking focuses on individual consumers, providing them with products like bank accounts, personal loans, and credit cards. Corporate banking, on the other hand, serves businesses and corporations, offering services like business bank accounts, commercial loans, trade finance, and employer services.

Transactions in retail banking are typically smaller in size and higher in volume compared to corporate banking, which tends to focus on larger, more complex transactions.

If you’re wondering whether you would be better served by retail vs. corporate banking, here’s a snapshot how the two compare.

	Retail Banking	Corporate Banking
Client base	Individual consumers	Businesses, institutions, banks, government entities
Products and services	Personal checking/savings accounts, mortgages, personal loans, credit cards	Business checking/saving accounts, business loans, merchant services, global trade services, employee benefits plans
Loan amounts	Lower	Higher
Transaction frequency and amounts	High number of transactions for low amounts	Low volume of transactions for more significant amounts

The Takeaway

Retail banking is the public face of banking that provides banking services directly to individual consumers rather than businesses or other banks. Most of us bank at a retail bank or retail division of a large commercial bank whether we realize it or not.

Whether you use a brick-and-mortar bank, online bank, or credit union, retail banking offers products and services that allow you to manage your money, access credit, save for the future, and work toward your financial goals.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is an example of retail banking?

An example of retail banking, also known as consumer banking, is when an individual opens a savings account at a local bank. The bank then allows them to deposit funds, withdraw money, and earn interest on their deposits. The same bank might also offer them a checking account for daily transactions, a mortgage to buy a home, and a credit card for everyday purchases. These services are all examples of retail banking, which is aimed at meeting the personal financial needs of individual consumers.

What are the largest retail banks?

The largest banks in the U.S. that offer retail banking include:

• Chase

• Bank of America

• Wells Fargo

• Citibank

• U.S. Bank

• PNC Bank

• Goldman Sachs Bank

• Truist Bank

• Capital One

• TD Bank

Who uses retail banking?

Retail banking is used by individual consumers to manage their personal finances. This includes:

• Students

• Young adults

• Working professionals

• Couples

• Families

• Retirees and seniors

• Small business owners

What are the retail banking products?

Retail banking offers a variety of products and services tailored to the financial needs of individual consumers. These include:

• Savings accounts

• Checking accounts

• Personal loans

• Mortgages

• Credit cards

• Certificates of deposit (CDs)

• Investment products

• Online and mobile banking services

• Debit cards

Photo credit: iStock/Passakorn Prothien

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

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

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

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

SOBK-Q224-1885621-V1

Source: sofi.com

Apache is functioning normally

May 29, 2024 by Brett Tams

Inside: How to become financially independent? This is something you want to read. Don’t worry — there are steps you can take and strategies you can use!

One of the biggest struggles for most people is how to become financially independent.

There are many different ways you can be more successful in your finances, but there really isn’t one perfect answer. It’s important to think about what your goals are and then develop a strategy that will help you achieve them.

However, you may feel lost on what to do now.

There is no one way to make a living and there are endless ways to do it.

The concept of becoming financially independent may feel impossible to reach.

But, I am here to tell you that becoming financially independent is easier than you think.

I want you to join me on an adventure where we explore how being financially independent doesn’t have to be a huge sacrifice in your life. Just imagine what you could do with all that free time, money, and energy!

In this post, I am going to break down how being financially independent can actually create an amazing way that you live your life.

Financial freedom is the reason for your desire to be financially independent.

What is Financial Independence?

Financial independence is when a person or family has achieved a high level of financial stability and money does not control their lives.

You are working towards financial freedom that is when your assets have reached a point in which you estimate they will cover all of your expenses for the remaining part of your life. There is no need to work unless you desire.

These terms are heavily intertwined in their meanings.

This is something most people haven’t achieved as they are constantly living paycheck to paycheck.

Overall, by becoming financially independent, you have more choices in life.

We will discuss how it’s possible to create a generous and financially independent lifestyle while also staying grounded in your values.

How to Become Financially Independent

Financial independence is the idea that you can be completely free from money becoming a factor in your life.

In order to achieve this, you must find ways to reduce debt while increasing retirement contributions and having money on hand for emergencies.

There are two simple steps to achieving financial independence.

1. What you Want to Do with your Life

This one may seem overwhelming for most people to think about. You are working to the grind just to make money and focused on how much I make a year.

Everyone dreams of living a financially free life, where honesty isn’t needed, emotional attachments aren’t needed, and money can just come into your bank account without you spending a single cent making it.

But creating such a life isn’t easy; to make it happen, the first step is to take stock of what you want to do in your life and find the ways to obtain the following:

Your most fulfilled you have ever been, whether it’s artistic or financial. The freedom of not needing to check in with anyone, not feeling guilty about spending money you worked for.
Your time to do the things you love, whether it’s with family or friends or travel
The best relationships that are healthy and supportive in your life
The best physical health and emotional well-being that you can find.

By making those things your priorities, then you start to design the life you want.

The concept of time freedom is something that will become more important to you as you move from becoming financially independent to ultimately reaching financial freedom.

To create a life of financial independence, it is important to take stock of what one wants in their life and find ways to obtain that.

2. Matching your Money to Desires

You must take personal responsibility for your own finances.

If you don’t make the changes to reach your financial goals, then you will be stuck on a hamster wheel.

For example, debt will hold you back. Period. Until you finally get out of debt, you are a slave to money.

Another example that happens many times is out-of-control spending. The inability to spend less money than you make.

There are many ways for people to become financially independent. You have to craft a plan to match your money to the life you desire.

One way is by living within your means, another is to start making money on the side.

Your lifestyle must match your desires and what you can truly afford.

These two steps are essential in achieving financial independence.

Ways to Become to Reach Financial Independence

Financial independence is the idea that you can achieve financial freedom and continue to work or stay home without worry. Achieving this goal starts with savings and reducing debt, as well as monitoring progress as you work toward your goals.

If you want to learn how to become financially independent in 5 years, then this is exactly what you need to do today.

Making it happen will take hard work but with positivity and willpower, you’ll get there!

1. Know Where You Stand Financially

The first step towards financial independence is to find out where you stand right now (spoiler alert: it might not be where you think it is).

If they are not at zero savings how were they able to get there?

This means you need to understand your net worth.

You determine your net worth by subtracting all of your debts from your assets.

If you have a significant amount of debt, then it is likely you will be starting with a negative net worth. That is okay! You can dig yourself out.

To become financially free, you need to reach a magic number with your liquid net worth to quit working and retire early.

2. Income is Less than Expenses

First, you need to write out your income.

Next, add up all of your monthly expenses.

Take your income minus your expenses.

If your expenses are greater than your income, you will never become financially free and will live stuck in a debt trap.

If your income is higher than your expenses, that is great news! Make sure you start saving money for your future self.

3. Budget

Budgeting is a core principle of financial wellness. Budgeting your money, using the snowball method, and saving for emergencies are all keys to becoming financially independent.

A budget is a tool used to help organize finances and plan for the future.

It can be as simple as writing down what you spend on food each week or as complex as creating a full financial picture of your life.

To create a budget, decide how much income you want to generate in one month and compare that amount to what you currently spend.

Start by listing all your income and expenses for at least the last six months. Then make a plan to tackle any problem areas.

4. Reduce Debt to become Financially Independent

Financial independence is when you have paid off all your debts and are living below your means. This gives you the freedom to do whatever you want, knowing that you don’t need anyone else’s help and are not a slave to debt.

Debtors should find ways to pay off their debt and avoid creating new debt in order to become financially independent.

Pay off your credit card balance before interest or late fees are charged
Avoid taking on any additional charges by using debit cards for purchases
Borrowers should build debt payments into the monthly budget

Debt is inescapable: Drowning and leaning on others until you pay off your debt for good.

5. Save Money

Whether you’re 26 or 66, saving is an integral part of becoming financially free.

This is how you become financially stable.

It’s never too late to start saving money or learn how to invest it in different places.

Enjoy one of these fun money saving challenges!

6. Understand Your Needs & Wants

Achieving financial independence is about creating a life with only needs and wants. It’s about getting rid of the things that make us feel inadequate or less important, like debt, credit cards, and wasting time on social media.

Needs are things like food, rent/mortgage, utilities, transportation, and clothing.

Wants are all the things that make us feel like we’re keeping up with the Joneses’ or how we spend without thinking.

Most people do not have a clue on what is a need and what is a want. Most wants fall into fun spending. A no spend challenge is great for discovering what is truly a need!

7. Spend Less Than you Make

Financial independence is the ability to create a generous, balanced life without relying on others for financial support. That cannot happen if your expenses are greater than your income.

It is about spending less than you make and saving the extra money from your budget at the end of every month.

Track your spending for a few months, then analyze it to find out where you can cut back or save more money.

Look at how can you cut expenses. This could be as simple as cutting back or drastic ways to cut expenses.

8. Create a Rainy Day Fund

Financial independence is a term used to describe a person who has enough wealth that they do not have to work for money. A rainy day fund will help you to achieve this.

A rainy day fund takes your emergency fund one big step further.

Experts agree that a rainy day fund should have at least 6 months’ worth of expenses saved up in case life goes south.

Ideally, money should be pulled from the same day you receive your paycheck, so it never even touches your hands, avoiding temptation entirely.

9. Set Goals

Financial independence is a measure of personal finance that includes three components: financial goals, financial milestones, and knowing what you want your money to be used for.

You must set smart financial goals to become financially free.

Goals may depend on age and where you are in life. You must get clear about your vision for the future.

Ask yourself questions like:

How much should you have in your bank account?
What lifestyle do you want to enjoy? When is it achieved?
What your net worth should be.

Figure out what you need to do to reach your money goals.

10. Lifelong Learner

No matter how much you know, there is always room for more knowledge

Money, investments, and new technologies allow the possibility to grow your money exponentially. With a rich understanding of fiscal responsibility and a desire to progress, there are many ways to find financial liberation.

That happens by investing in learning about money, finances, and investing. Here are the best finance books I recommend.

Fastest Way to Become Financially Independent

It’s never too late to start investing in your financial independence. If you wait until the last minute, it will be difficult for you to make significant progress on your plan and stay on track with what needs to happen first.

You need to find ways to diversify your income and make more money.

That is the key for those who reach financial independence in 5 years or less.

Diversifying your income will help balance out how much money you make. You know the saying, “Don’t put all of your eggs in one basket;” the same holds true for your income.

This could be starting a side hustle that turns into a small business. Or freelancing your services. Even more important, learning how to make passive income in the stock market.

Stick around Money Bliss… We have lots of ways for you to make more money.

The Secret to Becoming Financially Independent

The secret to becoming financially independent is to take on one small financial challenge that will open up your eyes and help you understand the world of investing.

Investing is when you put money into stocks, bonds, or other low-risk investments that generate income without any work on your part. It’s called “passive” income because it happens without your involvement.

Investing in the stock market is one of the most common ways to invest, but there are other choices you might want to consider too. You can invest in bonds or look at real estate.

This is the secret of those who already have become financially independent.

How to Become Financially Independent from Parents

More than half of millennials over 21 are receiving financial help from a parent or guardian. However, many young people are beginning to realize that they can become financially independent from their parents by developing their own skills and connections in the workforce.

– Achieving personal independence is not always easy but does come with some benefits.

– It gives you more control over your life and allows you to pursue passions without feeling weighed down by debt or other obligations.

But, parents should also work on changes to help their children. For example, they can focus on showing proper money management skills and talking through financial decisions.

That way when high schoolers or young adults are ready to make their own financial decisions they have a strong foundation of knowledge of money.

How can young adults become financially independent?

Young adults are often advised to focus on building wealth in order to become financially independent.

Young adults must learn how to track expenses and make a budget.

Saving money needs to be a priority for them, so sharing housing with friends will lower expenses.

Young adults should also take into consideration their future income potential and consider whether or not they plan on continuing higher education after graduation.

What parents can do to encourage financial independence

Parents should encourage their children to become financially independent as it will benefit them in the future.

If parents always step in and solve problems, they may be preventing their kids from learning important skills that would allow them to meet their needs while putting off wants for the future.

This will only lengthen the amount of time needed to reach financial independence and this will eventually prevent an individual from reaching FI.

As parents, even if you have not been wise with money, teach those valuable lessons to your kids. Then, they can learn from your mistakes and change the trajectory of their lives.

Start Working toward your Financial Independence Today

Millions of Americans are financially dependent on someone else.

There is a lot to be said about financial independence and the perks that come along with it.

Do you want to avoid having a life of financial worry and debt?

There are numerous ways to become financially independent. Above, we have shared how to FI, ways to make financial independence happen faster, and the secrets to success.

Just to recap…

Budgeting can help you make sure you have enough income to achieve your financial goals.
Start by looking at areas of life that would be easiest for you to change, like your spending habits. The more you change how you spend, the easier it will be for that money to go farther and last longer.
If saving is another area that’s difficult for you, you might want to think about how much your spending is and then try to save that amount each week. Setting aside a specific chunk of money will make saving more manageable and help you meet the goal quicker.
Creating a generous lifestyle that includes leisure time and spending money on experiences over material things
Using the power of compounding interest
Living within your means.
Build wealth through investing in stocks, bonds, mutual funds, and other forms of investments.

In the long run, these principles will help you focus on what matters most to you so that your life is more meaningful and rewarding in general.

Now, learn how to become a millionaire with no money.

Did the post resonate with you?

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

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

Source: moneybliss.org

Apache is functioning normally

May 29, 2024 by Brett Tams

An irrevocable letter of credit (or ILOC) is a written agreement between a buyer (often an importer) and a bank. As part of the agreement, the bank agrees to pay the seller (typically an exporter) as soon as certain conditions of the transaction are met. These letters help reduce a seller’s concern that an unknown buyer won’t pay for the goods they receive. It also helps eliminate a buyer’s concern that an unknown seller won’t send the goods the buyer has paid for.

Irrevocable letters of credit are often found in international trade, though they can be used in other types of financial arrangements to ensure that a seller will be paid, even if the buyer fails to uphold their end of the bargain.

Key Points

• An irrevocable letter of credit is a written agreement between a bank and a buyer to guarantee payment, ensuring that the seller will be paid even if the buyer fails to fulfill their obligations.

• Irrevocable letters of credit cannot be canceled or modified in any way without the explicit agreement of all parties involved.

• Irrevocable letters of credit are commonly used in international transactions but can be used in other situations as well.

• Alternatives to irrevocable letters of credit include trade credit insurance and standard letters of credit, which offer different levels of flexibility and protection.

What Is an Irrevocable Letter of Credit?

Simply defined, an irrevocable letter of credit represents an agreement between a bank and a buyer involved in a financial transaction. The bank guarantees payment will be made to the seller according to the terms of the agreement. Since the letter is irrevocable, that means it cannot be changed without the consent and agreement of all parties involved.

Irrevocable letters of credit can also be referred to as standby letters of credit. Once an irrevocable letter of credit is issued, all parties are contractually bound by it. This means that even if the buyer in a transaction doesn’t pay, the bank is obligated to make payment to the seller to satisfy the agreement.

Having an irrevocable letter of credit in place is a form of risk management. The seller is guaranteed payment from the bank, which can help to reduce concerns about the buyer failing to pay. And it ensures that the seller will follow through on their obligations by providing whatever is being purchased through the agreement. In simpler terms, a standby letter of credit or irrevocable letter of credit is a sign of good faith on the part of everyone involved in a transaction.
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How Does an Irrevocable Letter of Credit Work?

An irrevocable letter of credit establishes a contractual agreement between a buyer, a seller, and their respective banks. It effectively creates a safeguard for both the buyer and the seller, in that:

• Buyers are not required to forward payment until the seller provides the goods or services that have been purchased.

• Sellers can collect payment for goods and services, as long as the conditions outlined in the letter of credit are met.

The bank issuing the letter of credit acts as a go-between for both sides, guaranteeing payment to the seller even if the buyer doesn’t pay. Assuming the buyer does fulfill their obligations, they would then make payment back to the bank. In a sense, this allows the buyer to borrow from the bank without formally establishing credit in the form of a loan or credit line. (Check with your financial institution to learn what fees may be involved.)

Before an irrevocable letter of credit is issued, the bank will first verify the buyer’s creditworthiness. Assuming the bank is reassured that the buyer will, in fact, repay what’s owed to complete the purchase, it will then establish the irrevocable letter of credit to facilitate the transaction between the buyer and seller. Irrevocable letters of credit are communicated and sent through the SWIFT banking system.

Recommended: How Do Banks Make Money?

Irrevocable Letter of Credit Specifications

The exact details included in an irrevocable letter of credit can depend on the situation in which it’s being used. The conditions that are set for the completion of the transaction will also matter. But generally, you can expect an irrevocable letter of credit to include:

• Buyer’s name and banking information (that is, their bank account number and other details)

• Seller’s name and banking information

• Name of the intermediary bank issuing the letter of credit

• Amount of credit that’s being issued

• Date that the letter of credit is issued and the date it will expire

An irrevocable letter of credit will also detail the conditions that must be met by both the buyer and seller in order for the contract to be valid. For example, the seller may need to provide written verification that the goods or services referenced in the agreement have been provided before payment can be issued. The letter of credit must be signed by an authorized bank representative. It may need to be printed on bank letterhead to be valid.

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Do I Need an Irrevocable Letter of Credit?

You may need an irrevocable letter of credit if you’re doing business with someone in a foreign country. You may also require one if you are conducting a transaction with a new company or individual (one with which you don’t yet have an established relationship).

Irrevocable letters of credit can help to mitigate some of the risk that goes along with international transactions. These letters ensure that if you’re the seller, you get paid for any products or services you’re providing. They also protect you if you’re the buyer, promising that products or services are delivered to you.

An irrevocable letter of credit could also come in handy if you’re still working on building credit for your business and you’re the buyer in a transaction. The bank will pay the money to the seller; you’ll then repay the bank. Payment may be required in a lump sum from your business bank account or another source. Or the bank may also offer the option of repaying it in installments over time. Repaying your obligation could help to raise your business’s creditworthiness in the bank’s eyes. This may make it easier to take out other loans or lines of credit later.
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Alternatives to Irrevocable Letters of Credit

An irrevocable letter of credit is not the only way to do business when engaging in international transactions. You may also consider trade credit insurance or another type of letter of credit instead.

Trade Credit Insurance

Trade credit insurance, also referred to as accounts receivable insurance or AR insurance, is used to insure businesses against financial losses resulting from unpaid debts. You can use trade credit insurance to cover all transactions or limit them to ones where you believe there may be a heightened risk of loss, such as transactions involving foreign businesses.

A trade credit insurance policy protects your business in the event that the other party to a financial agreement defaults. It can insulate your accounts receivable against losses if an unpaid account turns into a bad debt. Purchasing trade credit insurance may be an easier way to manage risk for your business overall, as it’s less involved than an irrevocable letter of credit.

Recommended: Business Loan vs Personal Loan: Which is Right for You?

Letters of Credit

A letter of credit guarantees payment from the buyer’s bank to the seller’s bank in a financial transaction. Like an irrevocable letter of credit, it establishes certain conditions that must be met in order for the transaction to be completed. But unlike an irrevocable letter of credit, a standard letter of credit can be revoked or modified.

You might opt for this kind of letter of credit if you’re doing business with someone you don’t know and you want reassurance that the transaction will be completed smoothly. A regular letter of credit may also be preferable if you’d like the option to modify or cancel the agreement.

The Takeaway

An irrevocable letter of credit is something you may need to use from time to time if you run a business and regularly deal with international transactions. It adds a layer of protection to buying and selling, as a bank is saying it will cover the transaction. An ILOC, as it’s sometimes known, can provide reassurance when working with a new business or establishing your company overseas. The letter cannot be changed, so you’re getting solid peace of mind.

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FAQ

What is the difference between a letter of credit and an irrevocable letter of credit?

A letter of credit and irrevocable letter of credit are largely the same, in terms of what they’re designed to and in what situations they can be used. The main difference is that unless a letter of credit specifies that it is irrevocable, it can be changed or modified by the parties involved.

What is the cost of an irrevocable letter of credit?

You generally need to pay a transaction fee for an irrevocable letter of credit. The fee is typically a small percentage of the transaction amount. The rate will vary from bank to bank.

Does an irrevocable letter of credit expire?

Yes, an irrevocable letter of credit will typically state the date by which the seller must submit the necessary paperwork in order to receive payment.

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