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Inside: Unlock the secrets of debt types and management. Explore everything from mortgages to student loans, and devise savvy debt strategies for financial health.

Understanding debt is essential as it is a common financial obligation that, must be managed wisely, if mismanaged, can lead to financial strain.

Most importantly, comprehending the fundamentals of debt is crucial for financial literacy. Debt spans various forms of credit, from mortgages to personal loans to credit cards.

Debt is a powerful force in the consumer’s financial life; it has the power to either create opportunities or trigger economic stress.

You must realize the multifaceted role that debt plays is a prerequisite for achieving and maintaining financial stability. As such, a comprehensive understanding of the various types of debts is not merely beneficial—it is indispensable.

Right now, consumer debt has reached $17.1 Trillion in 2023. 1

With this knowledge, you can navigate the financial tides with confidence, distinguish between advantageous and precarious borrowing, and ultimately wield debt as a tool for prosperity.

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The Mainstream Maze Examples of Debt Types

Understanding the various types of debt is crucial for anyone looking to maintain or improve their financial health.

Debt, often viewed in a negative light, can actually be leveraged as a powerful tool if managed correctly. Each category of debt — from secured to unsecured, installment to revolving — functions differently and influences your financial profile in its own unique way.

Recognizing these differences enables individuals to make informed borrowing decisions, repay their debts more effectively, and develop strategies tailored to their personal financial goals.

With this background in mind, let’s understand the different types of debt:

Navigating Through Secured and Unsecured Loans

  1. Secured loans require collateral, reducing risk for the lender, like a mortgage or auto loan.
  2. Unsecured loans rely on creditworthiness and come with tighter requirements.

Understanding Revolving vs. Installment Debt

  • Revolving debts, like credit cards, offer flexible borrowing limits.
  • Installment debts involve fixed payments over a period.

Fixed-Rate vs. Variable-Rate

Choosing between fixed-rate and variable-rate debt shapes your financial commitment and interest rate.

  • Fixed rates provide predictability in repayments.
  • Whereas variable rates fluctuate with market trends, potentially lowering costs or introducing variability.

Short-Term Debt vs. Long-Term Debt

  • Short-term debt, to be settled within a year, requires immediate attention.
  • Long-term debt, with extended maturities, often permits strategic repayment over time.

Defining Callable Debt vs. Noncallable Debt

  • Callable debt allows issuers an early exit option, granting them the ability to retire debt before maturity.
  • Noncallable debt, in contrast, guarantees the term’s completion, offering predictability for both investor and issuer.

Delving into Secured Debt Details

Secured debt plays a pivotal role as it hinges on collateral to assure lenders of repayment.

This type of debt brings with it the potential for lower interest rates and higher approval chances, but also the risk of losing valuable assets should a borrower default.

Collateral Commitment: Risks and Rewards

Rewards of Secured Debt Risks of Secured Debt
Lower interest rates due to reduced lender risk. Risk of losing the collateral property, such as a house or car, on failure to make payments.
Access to larger loan amounts because of collateral provision. Limited use of borrowed funds typically for a specific purpose (e.g., a home or vehicle).
With continued payments, a credit score increase is likely. Possibility of incurring additional fees or penalties if the loan goes into default and the property is seized.
Increased likelihood of loan approval because the loan is secured by an asset. Potential negative impact on credit score and financial stability if unable to repay the loan.

Notable Nuances of Mortgages, Auto Loans, and More

Mortgage interest rates generally fluctuate between 3% and 5%, influenced by economic conditions, with the option of fixed rates or adjustable rates that can change annually within set limits. Typically, a fixed interest rate is the best option for homeowners. Most common mortgage lengths are 15 or 30 year terms.

In contrast, auto loan interest rates tend to be high with shorter terms of 5 or 7 years. Many times, these loans are often subsidized by automakers’ promotional offers to attract buyers with good credit, thereby varying considerably based on the loan’s duration and the borrower’s creditworthiness. Another option is to secure a car loan at a local credit union.

With mortgages tied to real estate and auto loans to vehicles, both present unique terms and implications for borrowers navigating the nuances of substantial purchases.

National Debt Relief

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Unmasking Unsecured Debt

Unsecured debt is a form of financing that does not require borrowers to pledge assets as collateral.

This type of debt is granted based on an individual’s creditworthiness and typically carries a higher interest rate due to the increased risk to lenders. The typical interest rates start at about 15% and go upwards from there.

Credit Cards and Personal Loans: No Collateral Needed

Credit cards and personal loans exemplify unsecured debt, with no collateral needed to secure them. Their accessibility hinges on the borrower’s credit history, representing a choice for financing without asset risk.

Many college students start with their first credit card and have no idea how it works.

The Pros and Perils of Unsecured Borrowing

Unsecured borrowing can offer financial flexibility without collateral, a clear advantage.

However, the perils include higher interest rates and the potential for a strained credit history if repayments falter, necessitating cautious consideration. This is how many people quickly rack up large amounts of debt without realizing the consequences of their actions.

Thus, why young adults need basic financial literacy.

Rolling with Revolving Debt

Revolving debt is a type of credit that lets you borrow money up to a certain limit, repay it, and then borrow again as needed, often seen with credit cards or home equity lines of credit (HELOC).

Unlike fixed installment loans, this type of credit emphasizes the borrower’s ability to manage and repay borrowed funds over time, which can have a significant influence on their credit score.

Mastering the Mechanics of Credit Lines

Credit lines empower consumers with fluid financial options, replenishing funds as balances are paid. Understanding their mechanics is critical in leveraging such revolving credit without succumbing to debt traps through accumulated interest.

Evaluating the Ubiquity and Utility of Credit Cards

Credit cards are ubiquitous in modern-day finance, serving as a versatile tool for electronic payments. They offer convenience and the potential for rewards but can lead to costly interest charges for those who fail to manage them judiciously.

Personally, I received a $942 cash back from my credit card. But, I pay off my balance monthly.

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Installment Debt Explored

Installment debt is a financial mechanism that allows individuals to borrow a lump-sum amount of money and repay it over a fixed period through regular payments, known as installments.

These debts, which can be secured or unsecured, usually involve fixed interest rates and include common financial products like mortgages, auto loans, student loans, and personal loans.

How Student Loans and Mortgages Shape Long-term Debt

Student loans and mortgages are pivotal in shaping long-term debt landscapes. They represent significant financial commitments with enduring impacts, facilitating education and homeownership while posing substantial repayment responsibilities.

You need to be wise in how much you decide to take out for either student loans or a mortgage. It is always best to take out less than offered by your lender.

Paying Off Different Types of Debt

Around here at Money Bliss, I stress the importance of paying off debt fast!

  • To effectively pay off different types of debt, starting with high-interest rate debts, such as credit cards, is essential because it reduces the amount of money paid on interest over time, allowing for more significant savings. This is the core idea behind the “avalanche” approach.
  • Alternatively, paying off smaller balances first using the “snowball” method can provide psychological wins and motivate continued debt repayment efforts.
  • For structured debts like student loans and mortgages with lower interest rates, adhering to the standard repayment plan while focusing extra payments on higher-interest debt can be a balanced strategy.
  • Additionally, employing methods like debt consolidation or transfers to lower APR vehicles can further aid in reducing the cost of borrowing and accelerate debt payoff.

Learn more about debt snowball vs debt avalanche.

Striking a Balance: Managing Varied Debts Wisely

Crafting an effective debt management strategy is a fundamental step toward financial health.

Implementing tailored repayment plans, such as debt consolidation or debt management programs, can alleviate the stress of multiple liabilities.

You don’t want to be at a point where you must get out of debt ASAP. Employing debt payoff methods such as the Snowball and Avalanche techniques can accelerate the journey toward being debt-free.

Credit counseling is often necessary to dig into the root of spending problems because it provides professional guidance on budgeting and debt management. Thus, helping individuals restructure their financial practices and develop a targeted plan to overcome excessive spending habits.

Frequently Asked Questions (FAQs)

Debt represents money owed across various agreements, while a loan is a specific form of debt where money is borrowed under agreed repayment terms and interest rates.

The most common debts include mortgage debt, credit card debt, auto loans, and student loans, reflecting the widespread financial needs for housing, education, transportation, and consumer spending.

Opting to pay off higher-interest revolving debt first generally saves money and boosts credit scores more effectively than tackling installment loans, due to the compounding effect of revolving debt interest.

This is a personal decision and one you must decide on yourself.

Which Consumer Debts Make Sense to You?

In conclusion, the takeaways are not all debt is created equal, and each type can affect your financial future differently. By recognizing whether a debt is secured or unsecured, or if it revolves or is due in installments, you can better strategize how to handle your obligations.

This knowledge is not only beneficial for making decisions about new loans or credit lines but also for creating a robust plan to tackle existing debt.

Comprehending this area of financial literacy, you position yourself to make wiser decisions that align with your financial aspirations. Ultimately, striving for a future where debt works for you, not against you.

By gaining a deeper understanding of the characteristics and consequences of each debt type, you can not only avoid common pitfalls but also harness debt as an instrument to build wealth and secure a robust financial future.

Then, you can stick with these debt free living habits.

Source

  1. Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed May 7, 2024.

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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

Treasury securities are like the rock-solid foundation of the financial world. In essence, they are IOUs that the U.S. government offers to investors in order to borrow money. There are various types, each with unique characteristics, including Treasury bonds, bills, and notes.

Since they are seen as extremely safe investments, those seeking financial stability frequently choose them. Let’s examine Treasury securities in more detail and see why they are important.

What Are Treasury Securities?

In essence, Treasury securities are loans made by investors to the United States government. Treasury bonds, Treasury bills, and Treasury notes are the three primary varieties. Purchasing one of these securities is equivalent to making a fixed-term loan to the government that may last anywhere from a few days to thirty years.

The government agrees to reimburse you for your initial investment (the principal) plus interest in exchange. The Treasury yield, which is this interest rate, is used as a standard by which other interest rates in the economy are measured. Because they are backed by the full faith and credit of the United States government, Treasury securities are typically considered to be among the safest investments available.

What Are Treasury Bonds?

The United States government issues Treasury bonds, which are long-term debt instruments with maturities of ten years or longer. Purchasing a Treasury bond is akin to making a fixed-term loan to the government, typically for a duration of 20 or 30 years. In exchange, you get interest payments from the government every six months until the bond matures, at which time you are paid the bond’s whole face value.

Since the U.S. government backs Treasury bonds with its full faith and credit, they are among the safest investments available. Additionally, they are quite liquid, making it simple to buy and sell them on the open market. Investors looking for a dependable means of capital preservation and a consistent income source frequently utilize Treasury bonds.

Difference from US Savings Bonds

The U.S. government issues both Treasury bonds and U.S. Savings Bonds, but there are a few significant distinctions between the two.

U.S. Savings Bonds normally have shorter periods, typically between 20 and 30 years, while Treasury bonds typically have longer maturities, ranging from 10 to 30 years. Interest on Treasury bonds is paid semi-annually, whereas interest on U.S. Savings Bonds is paid monthly and compounded semi-annually.

Another difference is that U.S. Savings Bonds are offered at a discount to face value and earn a fixed rate of interest over time, whereas Treasury bonds are sold at face value and pay a fixed interest rate.

While U.S. Savings Bonds are frequently bought by individuals as a means of saving for short- or medium-term financial goals, such as retirement or schooling expenses, Treasury bonds are typically purchased by institutional investors and individuals seeking long-term investment possibilities. Both kinds of bonds are offered by the U.S. government and are low-risk investment options, but they have different uses and meet various demands from investors.

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What Are Treasury Notes?

The United States government issues medium-term debt securities called Treasury notes, which have maturities of two to ten years. Essentially, investors who buy Treasury notes are making a fixed-term loan to the government. Until the note matures and the investor obtains the full face value of the note, the government pays them interest every six months in exchange.

Since they are backed by the full faith and credit of the United States government, Treasury notes are thought to be less risky than many other investment options. Investors seeking a compromise between the short-term flexibility of Treasury bills and the long-term stability of Treasury bonds frequently choose them.

In addition to the ease of buying and selling on the open market, Treasury notes are extremely liquid, which makes them a preferred option for investors looking to combine flexibility and security in their investment portfolios.

The Significance of the 10-year Treasury Yield

In the financial world, the 10-year Treasury yield is very important since it is a key benchmark for other interest rates throughout the economy. The yield on a 10-year Treasury bond is the annual return that an investor can expect. As such, it reflects investor sentiment regarding future economic conditions, inflation expectations, and monetary policy outlook.

Variations in the yield on the 10-year Treasury note have the potential to impact not only corporate borrowing rates but also mortgage rates, vehicle loan rates, and consumer borrowing costs.

Additionally, it has an impact on the value of other financial assets since investors weigh their future returns against the comparatively safe yields of Treasury securities when valuing stocks and bonds. As a crucial indicator of general market mood and economic conditions, central banks and policymakers regularly monitor movements in the 10-year Treasury yield to assess the state of the economy and modify monetary policies accordingly.

What Are Treasury Bills?

The U.S. government issues Treasury bills, sometimes known as T-bills, which are short-term debt securities with maturities of one year or less.

In essence, investors who buy Treasury bills are making a short-term loan to the government. Treasury bills don’t pay interest on a regular basis like Treasury bonds and notes do. Rather, they are offered to investors at a price below face value, with the entire face amount due upon the bill’s maturity.

Since they are guaranteed by the full faith and credit of the United States government, Treasury bills tend to be considered some of the least-risky investments on the market. Because of their high liquidity and minimal risk, investors frequently utilize them as a short-term cash management tool or as a means of preserving capital.

Treasury notes are an essential part of the economy since they act as a base for a variety of financial transactions and as a benchmark for short-term interest rates.

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Who Should Invest in Treasury Securities?

Investors can benefit from investing in Treasury securities because of their consistent yields and low relative risk. Treasury securities are attractive to people who value capital preservation over large returns, particularly those who are approaching retirement or want to protect their resources. Treasury securities are a popular choice among conservative investors and those with low risk tolerance.

To comply with regulations and reduce risk, institutional investors like banks, insurance firms, and pension funds also set aside a percentage of their portfolio allocation for Treasury securities. Treasury securities are crucial components of diverse investment portfolios and a key part of any investor’s financial plan who is looking for a dependable and safe choice.

Pros and Cons of Treasury Investments

There are both benefits and downsides to Treasury Investments:

Benefits of Treasury Investments

•   Low Relative Risk: Because they are backed by the full faith and credit of the United States government, Treasury securities tend to be less risky than other investment types.

•   Guaranteed Yield: They give investors a steady source of income with a guaranteed rate of return – or, as close to a guarantee as an investor is likely going to find.

•   Treasury securities are highly liquid, which allows investors flexibility as they can be quickly bought and sold on the secondary market.

Drawbacks of Treasury Investments

•   Low Yield: Treasury securities usually have lower yields when compared to alternative investment options like equities or corporate bonds.

•   Interest Rate Risk: Interest rate fluctuations can have an impact on Treasury securities. The value of current Treasury securities may decline if interest rates rise.

•   Inflation Risk: Although Treasury securities are generally low risk, they might not yield enough returns in the long run to beat inflation, which might reduce one’s purchasing power.

•   Market Risk: While unlikely, there’s a chance that shifts in investor sentiment or market disruptions could have an impact on the price of Treasury securities.

How Can You Invest in Treasuries?

Individuals can invest in Treasuries with relative ease and accessibility. Investors can buy Treasury securities straight from the U.S. Department of Treasury via website, TreasuryDirect.gov.

Investors can also purchase them via a financial institution, bank, or broker. Mutual funds and exchange-traded funds (ETFs) that contain Treasury securities in their portfolios are another way for people to indirectly invest in Treasury securities.

Through TreasuryDirect.gov

Bonds, bills, and notes issued by the U.S. government can be directly purchased by individuals by using TreasuryDirect.gov. Without going via a broker or other financial middleman, investors can purchase, manage, and redeem Treasury securities using this online platform.

Treasury auctions, in which the public is offered newly issued securities, can be attended by investors via TreasuryDirect.gov. Investors can enter these auctions with competitive or non-competitive bids to buy Treasury securities at fixed yields or interest rates.

Non-competitive bids accept the yield that is decided by the auction, whereas competitive bids indicate the desired yield. Investors can interact directly with the U.S. Treasury Department to purchase Treasury assets through an open and easily accessible process, giving them more power over their financial choices.

Through a Broker or Bank

An additional way for investors to obtain these assets is by buying Treasury securities through a bank or broker. Treasury securities can be purchased and held alongside other financial products by investors through the investment services provided by numerous banks and brokerage firms. Financial experts can assist in customizing investing plans to meet the specific needs and objectives of each investor.

Purchasing through a bank or broker may provide access to a greater selection of investment options, including Treasury bills, notes, and bonds with different maturities and yields. Although there can be commissions or transaction costs associated with this approach, investors benefit from the ease of having all of their investment accounts combined into one location.

Purchasing Treasury securities via a bank or broker provides investors with ease, flexibility, and individualized assistance in creating a diverse investment portfolio.

ETFs and Mutual Funds

Investors can buy Treasury Securities in a convenient way through ETFs and mutual funds that hold bonds, bills, and notes. Investors can benefit from professional management and experience choosing and overseeing Treasury securities within the fund’s portfolio by making an investment in these funds.

Mutual funds and ETFs provide liquidity, enabling investors to buy and sell shares on the open market at any time. Investors can easily modify their exposure to Treasury securities in response to shifting market conditions or investing goals.

Mutual funds and ETFs often have lower expense ratios than actively managed funds, so investing in Treasury securities using this method can be an affordable way to access a diverse portfolio of Treasury securities.

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How Are Treasury Bonds, Bill, and Notes Taxed?

Since they are subject to unique tax laws, investors looking for tax-efficient investment options may find Treasury bonds, bills, and notes appealing. State and local income taxes are not applicable to interest income collected on Treasury securities, but it is subject to federal income tax.

Taxation applies to any capital gains upon the selling of Treasury securities. An investor will have a capital gain that is liable to capital gains tax if they sell a Treasury asset for more money than they paid for it.

On the other hand, the investor can experience a capital loss if they sell the investment for less than what they paid for it. This loss can be applied to offset capital gains and lower their taxable income.

What Are Other Types of Treasury Securities?

The U.S. Treasury offers a variety of securities in addition to Treasury bonds, bills, and notes. By basing the principal value of Treasury Inflation-Protected Securities (TIPS) on fluctuations in the Consumer Price Index (CPI), TIPS offer protection against inflation.

By guaranteeing a rate of return, this helps investors maintain their purchasing power over time. Investors are protected against interest rate risk by Floating Rate Notes (FRNs), which have variable interest rates that fluctuate based on changes in market interest rates.

The U.S. Treasury issues savings bonds such as Series I and Series EE that provide people with a convenient and secure long-term means of saving money. Series EE Savings Bonds pay a set rate of interest for a maximum of 30 years, while Series I Savings Bonds protect against inflation.

The Takeaway

Treasury securities give investors a range of choices to achieve their financial objectives, including long-term savings, inflation protection, and income generation. In the ever-changing world of financial markets, investors can protect capital, reduce risk, and reach their goals through Treasury bonds, bills, notes, and other securities like TIPS and savings bonds.

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FAQ

What is the meaning of Treasury Security?

The U.S. Department of the Treasury issues debt obligations known as Treasury securities, which include Treasury bills, notes, and bonds. Because they are backed by the full faith and credit of the United States government, Treasury securities are among the safest investments.

What is an example of Treasury securities?

Treasury Bills, Treasury Notes, Treasury Bonds, Treasury Inflation-Protected Securities (TIPS), and Floating Rate Notes (FRNs) are the five categories of marketable securities offered by the U.S. Treasury.

Are Treasury securities risky?

Because the U.S. government completely backs Treasury bonds, there is very little chance that they would default, making them a popular choice for investors looking to avoid risk. Investors need to be aware that interest rate risk exists even with U.S. government bonds.

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The National Association for the Self-Employed’s membership has grown dramatically over the last few years, says Keith Hall, the group’s president and CEO. And while that growth has slowed since its COVID-era peak in 2022, he thinks flexible work is here to stay.

The boom in self-employment started when “a lot of people had to do it because of COVID. They didn’t choose to do it; they had to do it,” Hall says. “Many others saw and learned and read that you can do this. You don’t need to be tied to the desk in corporate America.”

Below is NerdWallet’s 2024 list of the 10 best U.S. metro areas for freelancers and the self-employed. Our analysis used recent metro-area data from the U.S. Census Bureau and state-level data from the Tax Foundation. The top metro areas are those where a significant percentage of the workforce is self-employed already, rent is relatively affordable, unemployment is low, worker mobility is high and state income taxes are relatively low.

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Top 10 metro areas for freelancers and the self-employed

  1. Nashville-Davidson-Murfreesboro-Franklin, Tennessee.

  2. North Port-Bradenton-Sarasota, Florida.

  3. Chattanooga, Tennessee.

  4. Knoxville, Tennessee.

  5. Austin-Round Rock-San Marcos, Texas.

  6. Lancaster, Pennsylvania. 

  7. Boise City, Idaho.

  8. Columbus, Ohio

  9. Bridgeport-Stamford-Danbury, Connecticut.

  10. Portland-South Portland, Maine 

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Key findings

  • Of our top 10 cities, Bridgeport-Stamford-Danbury, Connecticut, and North Port-Bradenton-Sarasota, Florida, have the largest percentages of the workforce that are already self-employed (8.5% and 8.2%, respectively). The median of all metro areas in our dataset is 5.3%. 

  • Housing affordability continues to benefit communities like Chattanooga and Knoxville, Tennessee; Lancaster, Pennsylvania; and Portland, Maine — all places in which more than half of renters spend less than 30% of their income on rent. 

  • Tennessee, Florida and Texas all have no state income tax, which can keep a portion of income in self-employed workers’ pockets. That said, “It’s rare when I personally hear an individual relocating states just because of the tax code,” Hall says.

  • Columbus, Ohio, was boosted by a significant increase in the number of people moving to the city for work between the end of 2022 and the beginning of 2023. While those people weren’t necessarily freelancers, we use this data point to better understand economic vibrancy.

Identify your self-employment goals when considering a move

What might self-employment look like for you? That depends on what you hope to get out of it.

1. Desired industry

Though some industries have shifted broadly toward remote work, others still benefit from proximity.

Brian Rood, a certified financial planner and owner of Artisan Financial Planning, knows that firsthand: He spent 27 years playing trumpet in the Kansas City Symphony before shifting to financial planning and now works primarily with artists.

In highly specialized fields like the performing arts, “you really do go where the work is,” Rood says. That might mean an industry-specific location, like New York or Los Angeles, or a small city where you landed an orchestra job and then built a network of students and professional contacts.

Seth Hodes, co-founder and managing partner at Able Wealth Management, also works primarily with artists and creatives. He says his clients often move from creative agencies to tech companies to freelance portfolios and then back again based on what opportunities arise. Living in regions that have active job markets and lots of opportunities in their industries helps facilitate such mobility.

“The artist freelancer has always been adaptable,” Hodes says. “It’s a grind out there — you’re going to have to survive and work up a certain kind of cultural capital.”

2. Financial goals

Self-employed workers typically need to set aside 25% to 30% of their income for tax payments.

Next, Rood adapts the 50/30/20 budget to each client; the budget is a framework that recommends spending 50% of your income on expenses, 30% on “wants” and 20% on savings. “It’s a little high on the first parts and a little low on the savings,” he says, but it’s a useful jumping-off point.

Rood encourages self-employed clients to have a larger-than-average emergency fund. For some performing artists, he recommends six to 12 months of living expenses.

That math can get difficult when the cost of living is high, and it can tempt people to move, especially if they can take work with them or are scaling back on hours.

When his clients leave a high-cost-of-living city, Rood says, “it’s because they either are going to retire, and so they want to go somewhere cheaper and they don’t need the work, or the rat race is too much and they want to do something else.”

Hall says he’s seen lots of older Americans strike out on their own, too. If your freelance work is a transition step out of full-time work, you may lean toward the place where you want to spend your retirement.

3. Identity, safety and values

Self-employment can afford you the freedom to live in a place for personal reasons, not just professional or financial ones.

For some, self-employment may support a move that lets them live more safely. According to a 2022 survey from the National Center for Transgender Equality, 5% of trans people had moved out of state due to laws targeting their community and 47% of respondents had thought about it.

And Hall says family ties and hometown memories are common reasons for relocation.

“We do hear a lot from NASE members and from small-business owners moving to a different community,” Hall says. “Maybe they grew up in a small city when they were younger and they had the need to go to the big city, because that’s where the jobs were. Now they’re going back home.”

Hodes says he works with his clients to find harmony between their financial goals and how they want to live their lives more broadly.

“You have to plan for the future, but it has to be a balance,” Hodes says. “Don’t sacrifice too much in the present.”

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Methodology

To create the Best Cities for Freelancers and Self-Employed Workers 2024 list, NerdWallet pulled data for major U.S. metropolitan areas from the U.S. Census Bureau. We also pulled state tax rates from the Tax Foundation and calculated the tax rate for a household earning the median U.S. household income. We weighted the impact of each factor depending on how important we felt that factor would be in the potential financial success of a freelancer. We excluded metro areas for which there was negative or no Job-to-Job Flows Census data.

NerdWallet’s analysis includes data from the following sources:

  • U.S. Census 2022 American Community Survey data for the unemployment rate, percentage of people in Census-designated metro areas who identified as self-employed in non-incorporated businesses, and percentage of renters in a Census-designated metro area who spend less than 30% of their household income on rent.

  • U.S. Census Q4 2022 and Q4 2023 Job-to-Job Explorer data.

  • The 2024 state tax rate for the median U.S. household (which earned $74,580 in 2023, according to Census data), according to the Tax Foundation.

Source: nerdwallet.com

Apache is functioning normally

The following Five Surveys Review is a sponsored partnership with Five Surveys. Welcome to my Five Surveys Review! If you want to earn extra cash from home on your own schedule, I recommend trying out Five Surveys. This honest review of Five Surveys is going to explain what Five Surveys is, how Five Surveys works,…

The following Five Surveys Review is a sponsored partnership with Five Surveys.

Welcome to my Five Surveys Review!

If you want to earn extra cash from home on your own schedule, I recommend trying out Five Surveys.

This honest review of Five Surveys is going to explain what Five Surveys is, how Five Surveys works, and how you can earn spare cash with paid online surveys on Five Surveys.

If you’re interested in earning money online, you might have come across Five Surveys. This site pays users to complete surveys, giving an easy way to make extra cash from home. Unlike other survey sites that pay low amounts, Five Surveys has a simple deal: complete five surveys and earn $5.

I’ve been taking surveys for years, and I find it to be an easy way to earn extra money in my spare time.

I personally signed up for Five Surveys and have started taking surveys to test it out for you, my reader. One thing I really love about Five Surveys so far is the amount of surveys that are available. Already on the first day, there were 42 surveys that I could get started with, with more being added all the time.

Please click here to sign up for Five Surveys.

Five Surveys Review

Below is my Five Surveys review.

What Is Five Surveys?

Five Surveys, also known as 5 Surveys, is a website where you get paid to answer surveys online.

For every five surveys you finish, you can earn $5. Yes, once you answer your fifth survey, you can make quick cash, and they have a lot of available surveys for you to get started with.

If you’re all about making some extra cash, Five Surveys could be your go-to. Here are some reasons why I personally like Five Surveys:

  • This survey site is easy to use – Everything can be found right from the dashboard once you log in.
  • There are lots of surveys available – There are tons of surveys waiting for you, anytime. Whether it’s day or night, you can log in and find a survey to answer.
  • Fair payment for your time – For every 5 surveys you finish, you get $5. That means you’re earning $1 per survey, which is good for a few minutes of sharing your thoughts.
  • Get paid now, not later – Hate waiting? With Five Surveys, there’s no more watching the clock. After you complete 5 surveys, you can redeem your earnings.
  • Great customer service – They have a 24/7 live chat support team for any questions that you have.

When I first signed up for Five Surveys, I immediately received 42 surveys that I could start with. They ranged anywhere from 1 minute to 29 minutes. And, the way that the Five Surveys online platform works is that you need to answer 5 surveys to get the $5.

The surveys that you will see once you sign up for Five Surveys.

How Five Surveys works

Five Surveys is a platform where you can earn money just by sharing your thoughts and input through surveys.

Here’s how to get started on Five Surveys:

  1. Sign up – First, you need to create an account. It’s free! You can join Five Surveys for free here.
  2. Verify email – After signing up, check your email to find a verification link. Click it to activate your account.
  3. Take surveys – Once your account is all set, you can start taking surveys. These surveys are a way for you to share your opinion on different things.
  4. Earn money – For every 5 surveys you take, you get paid $5. That’s like getting $1 for each survey you complete!
  5. Cash out – When you’re ready, you can take this money and put it in your pocket. The cash out process is simple and quick.

You may occasionally come across screen-outs (this is when you start a qualification survey but are deemed not their intended target market), but the more surveys that you take then the easier it is for Five Surveys to match you with better surveys with your customer profile. For example, the qualifier may ask if you have children, but the survey’s target criteria may actually be looking for households with no children. So, you will see less inconvenience when it comes to these with the more surveys that you take.

Note: The answers for the pre-survey questions need to be accurate and detailed so the you have more relevant surveys available.

Why does Five Surveys pay you to answer surveys?

Ever wondered why companies pay for your thoughts on surveys? It’s because your opinions matter! Companies want to know what you think about their products and services because they want to create things that you’ll like and want to buy.

Market research firms act like detectives for companies, gathering clues about what people want. They create surveys for us to fill out, which helps them figure out what products should be like. As a thank-you for your help, these companies reward you with cash and other payment methods.

What kind of questions are asked in surveys?

When you visit online survey sites to earn extra cash, you might wonder what kinds of questions you’ll be asked.

The questions can vary from survey to survey, but they tend to focus on your opinions about products or services, your preferences, and sometimes personal details such as whether you have pets or children at home and geographical characteristics (where do you live?).

I have taken over 100 surveys in my lifetime, and I have never once come across a hard question. They are always super easy and quick to answer.

Here’s a sneak peek into some typical questions that you may see:

  • How frequently do you eat out?
  • Is cost a big deal for you when shopping for something?
  • What do you value in a product like ____?
  • How much do you use items such as ____?
  • How much money do you make each year?
  • What fills up your free time?
  • Do you do a lot of research before you buy something? Or, do you impulse shop?
  • How many trips do you make to the grocery store in a month?

Survey creators design these questions to be easy—they don’t require you to be an expert or a genius.

In some surveys, you might come across detailed questions about specific items, while others might be broader and aim to understand you better. This helps companies figure out why certain products or services might be a good fit for you.

Here are some of the payment options you will see on Five Surveys.

How to cash out with Five Surveys

Getting your earnings from Five Surveys is quick and easy.

You simply go to your Five Surveys account and choose your withdrawal method. You can choose between PayPal cash, bank transfer, Venmo, and gift cards.

They have gift cards to places such as Walmart, Olive Garden, Southwest Airlines, Chewy, Apple, and more. There are over 187 different rewards that you can choose from actually.

Frequently Asked Questions

Below are answers to common questions about getting paid to take surveys with Five Surveys.

Is Five Surveys legit?

Yes, Five Surveys is a legitimate survey site known for rewarding people who complete surveys. On TrustPilot, Five Surveys has over 1,600 reviews with a good rating of 4.2 out of 5 stars (that means that most people have a positive experience on this site!). Some of the positive Five Surveys reviews that I read on TrustPilot talked about how Five Surveys is the best survey site due to the number of easy surveys available that pay a decent amount.

Can you actually earn money by completing surveys?

You can earn money by completing surveys on Five Surveys. The platform pays out cash and other rewards for the feedback you provide in surveys. Remember, the amount you earn will depend on the number of surveys you complete.

Does Five Surveys really pay?

Five Surveys does pay its users. Upon reaching a minimum account balance, you can redeem your earnings through different methods like PayPal, bank transfer, or Venmo, and also in the form of gift cards.

Is Five Surveys worth my time?

Whether Five Surveys is worth your time depends on your goals. It is an easy way to earn small amounts of money, but like most survey sites, it won’t replace a full-time income. It’s a decent option for earning a little extra on the side.

Is Five Surveys free?

Signing up for Five Surveys is free.

Five Surveys Review – Summary

I hope you enjoyed my Five Surveys Review.

Understanding how Five Surveys works is easy. Once you complete five surveys, you’ve earned $5, which you can cash out using the payout options offered by the site (such as PayPal cash and free Amazon gift cards).

For me, I love how easy it is to get paid to answer online surveys. You can take surveys while watching TV, while waiting for some food to cook, while doing chores, and more. It is super flexible and you can do it right from your phone or computer.

Please click here to sign up for Five Surveys.

Do you like to take surveys to earn extra cash? What other questions do you have for my Five Surveys Review?

Recommended reading: Prime Opinion Review: How Much Does Prime Opinion Pay?

Source: makingsenseofcents.com