Known for its tropical climate, sandy beaches, and electric cities, Florida provides a lifestyle full of sunshine, but it also comes with its own set of challenges. From the party atmosphere of Miami to the laid-back lifestyle in the Florida Keys, the Sunshine State provides plenty of opportunities, though it may not be for everyone. So, is Florida a good place to live? Here’s a detailed look at the pros and cons of living in Florida to help you determine if it’s the right state for you.
Is Florida a good place to live?
Moving to Florida means embracing warm weather, outdoor activities, and a bustling tourism industry. With its renowned universities like the University of Florida and Florida State University, the state has a range of educational opportunities. Major industries include tourism, aerospace, healthcare, and agriculture, so job prospects are generally plentiful. Large cities in Florida like Miami, Orlando, and Tampa offer lively nightlife, cultural events, and dining, while areas like St. Augustine and Fort Myers offer more relaxed, small-town coastal charm.
When it comes to weather, Florida is known for its year-round heat and humidity. Summers can be scorching, with hurricanes, but the abundance of outdoor activities—from boating and fishing to beach lounging—makes up for it. Here’s what you need to know about life in Florida, broken down into the pros and cons.
Florida state overview
Population
21,538,187
Biggest cities in Florida
Jacksonville, Miami, Tampa
Average rent in Jacksonville
$1,364
Average rent in Miami
$2,731
Average rent in Tampa
$2,147
1. Pro: Tropical weather and endless outdoor activities
Florida’s weather is perfect for those who love the sunshine. With a tropical and subtropical climate, you can enjoy year-round activities like swimming, fishing, and kayaking. From the Everglades to the Gulf of Mexico, Florida’s unique landscapes offer something for everyone’s lifestyle. Whether you want to go deep-sea fishing off the coast of Key West or hike in the Ocala National Forest, you’re never short of things to do outside.
Insider tip: Visit Dry Tortugas National Park for an unforgettable snorkeling experience or take a scenic drive through the Florida Keys for breathtaking ocean views and a taste of island life, there’s plenty to do in Florida.
2. Con: Intense heat and frequent hurricanes
While the warm weather can be a major draw, Florida’s heat and humidity can be overwhelming, especially during the summer months when temperatures regularly exceed 90°F. The state also faces frequent hurricanes and tropical storms, particularly during the peak hurricane season from June to November. This can lead to flooding, property damage, and prolonged power outages.
Local tip: To stay safe during hurricane season, make sure to download local weather apps like Florida Storms, and sign up for alerts from the National Hurricane Center. Having a storm preparedness kit and a backup generator is also key to riding out potential power outages. Staying informed and alert is the best way to protect yourself from Florida’s unpredictable weather.
3. Pro: Strong job market, especially in tourism and healthcare
Florida has a growing job market, particularly in industries such as tourism, aerospace, and healthcare. With top attractions like Disney World and Universal Studios in Orlando, and a booming hospitality industry, the state offers numerous employment opportunities.
4. Con: Traffic congestion and public transportation limitations
Florida’s large cities, particularly Miami and Tampa, are notorious for heavy traffic. With limited public transportation options outside of major metropolitan areas, owning a car is almost a necessity. Traffic jams can turn a short drive into a lengthy commute, especially during tourist season from November to April, when visitors flock to the state.
5. Pro: No state income tax and affordable cost of living
One of the biggest financial benefits of living in Florida is the lack of state income tax, which makes the state an attractive option for those looking to save. While some areas like Miami and Naples are pricier—with Miami’s average rent at $2,731 and Naples at $2,122—more affordable options can be found in cities like Gainesville and Lakeland. In Gainesville, the average rent is around $1,278, while Lakeland offers even more budget-friendly options with rents averaging $1,198. This range of affordability makes Florida appealing for people seeking diverse living arrangements across the state.
6. Con: High humidity and pests
Florida’s high humidity not only makes it feel hotter than it is, but it also attracts a variety of pests. From mosquitoes to palmetto bugs, dealing with insects is a year-round issue in this state. In the summer months, you’ll likely need to invest in pest control or at least stock up on bug spray.
Insider tip: To help manage the humidity and avoid pests, use a dehumidifier in your apartment and regularly check for signs of moisture or leaks that could lead to infestations.
7. Pro: Stunning beaches and waterfront living
With over 1,300 miles of coastline, Florida is home to some of the most beautiful beaches in the U.S. From the sugar-white sands of Destin to the lively shores of South Beach in Miami, there’s a beach for every lifestyle, whether you’re seeking a quiet escape or a vibrant social scene. Many Florida residents enjoy waterfront living, with endless opportunities to boat, fish, paddleboard, or simply relax by the ocean. Coastal living also means access to stunning sunrises on the Atlantic and breathtaking sunsets on the Gulf of Mexico, making Florida’s beaches a year-round attraction
8. Con: Tourism overload
While Florida’s tourism industry supports the local economy, it can be overwhelming for residents. Popular destinations like Orlando, Miami, and the Florida Keys can become incredibly crowded, especially during peak tourist seasons like spring break or winter holidays. Locals often face long lines, higher prices, and crowded attractions.
Insider tip: If you want to avoid tourists, visit popular spots during the off-season and explore lesser-known areas like Amelia Island or Cedar Key for a more tranquil Florida experience.
9. Pro: Diverse culture and entertainment
Florida’s diverse population brings a rich mix of cultural experiences, from fabulous cuisine in Miami to world-class art galleries in Sarasota. With its many festivals, music events, and art shows, Florida offers endless entertainment options.
Travel tip: Attend Miami’s Calle Ocho Festival for a lively celebration of Latin culture or explore the Salvador Dalí Museum in St. Petersburg for a deep dive into surrealist art.
10. Con: Unpredictable wildlife encounters
Living in Florida means you’ll likely encounter some unique wildlife, including alligators, snakes, and invasive species like iguanas. While these creatures usually keep their distance, they can occasionally make unwelcome appearances, especially near bodies of water. Managing wildlife can be a concern, particularly if you live near wetlands or lakes.
Spotting an up-and-coming neighborhood before it booms is both an art and a science. Early identification can yield significant benefits, including real estate appreciation, a vibrant and dynamic lifestyle, and potential financial gain. Investors and homebuyers can get ahead of the curve with the right knowledge and tools. . Here’s a comprehensive guide on what to look for, from infrastructure developments to emerging cultural trends, to help you identify these promising areas before they hit the mainstream.
Research Infrastructure Developments and Urban Planning
When a city or municipality invests in infrastructure, it often indicates plans to boost neighborhood growth. Local governments use infrastructure development to attract new residents, increase accessibility, and support economic growth. Key indicators include:
Transportation Upgrades: New subway lines, bus routes, light rail stations, or bike paths can make previously less accessible neighborhoods more attractive. Pay attention to transportation authority announcements, as new projects can signal a potential future real estate hot spot. For instance, neighborhoods along new transit corridors often see property values and demand rise significantly as the projects near completion.
Highway and Road Expansions: New roadways or highways access points can also be a game-changer for previously isolated neighborhoods. Expanded roads make neighborhoods easier to access for commuters and businesses alike, which boosts appeal for potential homebuyers and renters.
Public Space Revitalization: The addition or improvement of parks, green spaces, walking paths, and community centers suggests a shift towards making the area family-and community-friendly. Look for local government announcements and urban planning reports that include plans for enhancing public spaces.
Zoning and Redevelopment Initiatives: Pay attention to zoning changes that allow for more housing units or commercial properties. Local governments sometimes adjust zoning laws and accommodate growth, signaling a forthcoming influx of both residents and businesses.
Action Step: Check city or municipality websites for updates on infrastructure and zoning changes. Many of these initiatives are documented publicly, and attending city council meetings or tracking local planning agendas can provide first-hand insights.
Observe Retail and Business Expansion
Retail and business expansion is a powerful indicator of growth. Retailers, form big brands to independent entrepreneurs, typically conduct thorough market research before opening new locations, so their interest in an area is worth noting. Here’s what to look for:
Anchor Tenants: Large grocery stores or big box retailers can catalyze neighborhood change. Major retailers usually research an area’s demographics and growth potential before setting up shop, and their presence can transform a neighborhood.
Upscale and Trendy Shops: Independently owned boutiques, cafes, and restaurants often signal the start of a neighborhood’s transition. These businesses often appeal to younger, trend-conscious residents and indicate a demand for unique, local products and experiences. Notably, trendy coffee shops, artisanal bakeries, and specialty stores often establish a foothold early in the neighborhood transformation process.
Co-working Spaces and Start-Ups: the presence of co-working spaces, tech startups, or creative workspaces can signal that a neighborhood is attracting entrepreneurs and remote workers. These spaces contribute to a modern, community-oriented vibe, attracting young professionals who value flexible work environments.
Action Step: Regularly visit areas that interest you to see which new businesses are opening. Following local business announcements, community boards, and social media can help you stay up-to-date.
Track Real Estate Trends and Vacancy Rates
Real estate trends provide concrete, measurable insights into neighborhood growth potential, By understanding what’s happening in the local market, you can gain valuable clues about an area’s future. Key factors to consider include:
Property Value Trends: A gradual rise in property values is a good sign that demand is growing. Sudden spikes might indicate speculation, but steady increases usually signal genuine interest. You can use online real estate platforms to monitor property values over time and compare them with city averages.
Declining Vacancy Rates: When vacancy rates decline in a neighborhood, demand outpaces supply, making the area more attractive to renters and buyers. New residents moving in also stimulate demand for services and amenities, creating a virtuous cycle of growth.
Flipping Activity and Renovations: The presence of flipped properties – homes that are purchased, renovated, and quickly sold – often signals investor interest. Developers often target neighborhoods they believe are on the brink of growth, hoping to capitalize on increased demand. Increased renovations or home improvements by current residents can also reflect a community’s sense of stability and long-term appeal.
Action Step: Use online tools to set up alerts on new listings, price changes, and closed sales in specific neighborhoods.
Look for Cultural Shifts and a Younger Demographic
Demographic shifts can transform a neighborhood, particularly if young professionals, artists, and or other creatives are drawn to an area due to affordability or unique community qualities. Here’s how these cultural factors play a role:
Artistic Communities: Artists often seek affordable housing, leading them to less developed neighborhoods. Their presence contributes to a creative culture that attracts other like-minded individuals. Cities like New York and Los Angeles saw neighborhoods like Williamsburg and Silver Lake evolve from artist enclaves to mainstream hotspots.
Local Events and Community Engagement: Farmers’ markets, art walks, street fairs, and pop-up events bring attention to the area and create a sense of community. Such events can indicate a groundswell of local support and interest, often acting as a precursor to further growth.
Nightlife and Social Spaces: Breweries, art galleries, and music venues can also draw a crowd and shape a neighborhood’s culture, leading to further investment in the area.
Action Step: Follow social media channels and local blogs that report on neighborhood events, culture, and lifestyle trends.
Monitor School Ratings and Family-Friendly Developments
As young families increasingly choose urban areas for both convenience and lifestyle, neighborhoods with improving schools and family amenities attract a steady influx of long-term residents. Here’s what to consider;
School Quality Improvements: When school ratings or new schools are built, the surrounding area often experiences higher demand from families. City investments in educational facilities are also an indicator of a neighborhood’s growth potential. Look at school rating websites for information on school performance.
Family-Friendly Parks and Recreational Facilities: Neighborhoods with new or improved parks, playgrounds, sports fields, and libraries become appealing to young families. Investment in these areas shows a commitment to creating a safe, community-friendly environment.
Action Step: Research school ratings and local amenities, focusing on family-oriented areas that may be on the cusp of growth.
Pay Attention to Crime Rates and Community Safety
Decreasing crime rates and improved safety measures can signal positive changes within a neighborhood. Safe, walkable communities attract families and young professionals alike, boosting demand for housing.
Community Policing Initiatives: When cities implement initiatives that engage community members in safety efforts, it can lead to a decline in crime and an increase in resident satisfaction.
Increased Lighting and Street Clean-Ups: Small but impactful changes like improved lighting, litter reduction, and graffiti removal create a more inviting environment, Cities and developers often invest in these details before larger projects take root.
Notice Emerging Online ‘Buzz’ and Media Attention
Sometimes, the first hints of a neighborhood’s potential come from online discussions and social media. Social platforms are invaluable for getting insights from locals and identifying neighborhood trends.
Social Media Influence: Follow neighborhood-specific accounts or hashtags on Instagram and Facebook, where residents share local happenings, events, and businesses. Social media influencers who live in the area may also highlight the neighborhood, generating buzz and drawing new interest.
Local News Features: News outlets often cover up-and-coming neighborhoods when new businesses, events, or infrastructure projects are introduced. Following local real estate blogs and publications can help you stay informed about emerging areas.
Action Step: Set up Google Alerts or other online tools to follow neighborhood-specific new and blogs, ensuring you stay up-to-date on any developments.
Bringing it All Together
Spotting an up-and-coming neighborhood requires consistent research, patience, and a willingness to explore on the ground. By monitoring infrastructure improvements, business trends, demographic shifts, and community safety, you’ll be equipped to identify areas with high growth potential. Whether you’re an investor or a homebuyer, these strategies can guide your search for neighborhoods on the brink of transformation. .
Final Tips for Your Journey
Visit Frequently: Spend time walking around the neighborhood, chatting with residents, and getting a feel for the local culture. Real-life experience can offer insights that data cannot.
Diverse Data Sources: Use multiple research methods – from real estate sites to local news outlets – to paint a well-rounded picture.
Keep Your Long-Term Goals in Mind: Whether you’re investing, buying to live, or considering renting out a property, understand your own goals and timeline for holding the property.
Spotting an up-and-coming neighborhood isn’t an exact science, but by using these tools you’ll be in a prime position to discover hidden gems – before they’re on everyone else’s radar.
Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how women can excel at investing, overcome financial challenges, and build wealth with practical strategies.
What does it mean to invest like a girl? How can women start investing and overcome financial challenges? Hosts Sean Pyles and Kim Palmer discuss gender differences in investing and practical strategies for women to build wealth. Kim interviews Jessica Spangler, author of Invest Like a Girl: Jump into the Stock Market, Reach Your Money Goals and Build Wealth, about the ways women tend to excel at investing, including taking time to make investment decisions, avoiding rash choices during market downturns, and focusing on long-term goals. They discuss strategies for eliminating high-interest debt, creating a budget that works for your lifestyle, and choosing the right mix of stocks and bonds for personal goals.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Welcome to NerdWallet’s Smart Money podcast. I’m Sean Pyles.
Kim Palmer:
And I’m Kim Palmer.
Sean Pyles:
On Smart Money, we are all about answering your money questions, and today we’re tackling an intriguing one. What does it mean to invest like a girl? Investing might seem like a topic that needn’t be gendered, but it turns out there are some gender differences, and that’s part of what we’ll dive into today. Kim, in her role as the host of our regular book club series, is here to guide the conversation. So Kim, who are you talking with?
Kim Palmer:
I’ll be talking with Jessica Spangler. She’s the author of Invest Like a Girl: Jump into the Stock Market, Reach Your Money Goals and Build Wealth. Jess is also a popular money educator on Instagram and she has a lot of ideas to share on women, investing and personal finance.
Sean Pyles:
Sounds great. Well, we also want to remind listeners that you can enter for a chance to win our book giveaway at nerdwallet.com/bookclub for our next book club pick. And with that, Kim, I’ll let you take things from here.
Kim Palmer:
Great, thank you. Jess, welcome to our show.
Jessica Spangler:
I’m so happy to be here. Thanks for having me.
Kim Palmer:
Let’s start with what really feels like the most awkward question. Why do women need their own investing book? I mean, don’t we all have the same basic rules that apply to us all?
Jessica Spangler:
Absolutely. The title of this book is intentionally ironic, right? Invest Like a Girl. What does that mean? Well, it’s really twofold. First of all, when you walk into any big box store, you’re pretty much bound to find ballpoint pens for women or razors for women or even laxatives for women. Really, there’s nothing fundamentally different about these products. They function just the same for people of all genders. There are differences about investing when it comes to women, even though the fundamentals of investing are the same for everyone.
For example, women are more likely to be the primary caretakers in the home, whether that’s taking career breaks or stepping down to part-time to help raise children or even to take care of our aging parents. On top of that, we are more likely to live longer. And so we have longer periods of retirement and higher health care costs as we age. Those factors compound together to equate to lost savings over time. This investing gap needs to be made up so that we can fund these factors that really differentiate us in retirement.
One might think then, the second half of the irony of the title, Invest Like a Girl, there’s similar sayings, hit like a girl, punch like a girl. Well, the thing about investing actually is that women are very good at it. When you look at the data, Fidelity did an unbelievable, wonderful study called the Women in Investing Study that actually showed that women, while we often hesitate to start investing and while our numbers are growing, we hesitate to get started. But actually, when we do, we wind up earning higher returns on average than men.
Kim Palmer:
That is so fascinating to me and that really jumped out at me from your book. What explains that?
Jessica Spangler:
There are some differences that were noted in the study. In particular, women were more likely to take their time when making investing decisions. In fact, the stereotype that women are probably going to be more emotional investors and might be more likely to make rash decisions, well, in fact, it’s quite the opposite. We actually do more research. We are less likely to make split-second decisions. We’re less likely to sell in a market downturn that is likely just a temporary fluctuation. And we’re more likely to have long-term goals and plans that we see to and stick through even when times get tumultuous.
Kim Palmer:
Given the importance of investing for women for all the reasons you just laid out, how can women get started with investing and make it a little bit easier?
Jessica Spangler:
This book, Invest Like a Girl, it’s really designed to be a guideline that will walk you through step-by-step exactly how to get started investing, and it’s really divided into two parts. The first half is really laying the framework for all of the investing lingo, breaking down all of the background information that you need to know about stocks and bonds and index funds and really getting into the finer details about informed decision-making so that when you get to the second half of the book, you have a whole bunch of sample investment portfolios laid out for you so that you can find one that seems to align the most with your goals, and then you can sort of tweak and tinker with those portfolio samples so that they’re really customized to you using all of the information that you learned in the first half of the book.
Kim Palmer:
You’re also a big advocate of the idea that you don’t have to have a trust fund or a lot of money to get started. Do you have to have a certain amount? I mean, when should you get started?
Jessica Spangler:
There is no denying that people that grow up with money absolutely have a leg up. There’s no denying it. But those people are already going to be investing. They’re already going to be utilizing these age-old tools that they’ve known about for generations, whether we do it or not. No matter how much money you have or what background you come from, there is real power in getting some skin in the game.
And you don’t have to have any amount of money, really. Nowadays, you can start with as little as a dollar to purchase fractional shares of a stock. I think that’s a really common misconception about this barrier of entry. Of course, I want to acknowledge that there is very real wealth inequality and there are people who absolutely have a leg up, but it is possible to improve your financial footing no matter where your starting point is with any amount of money using the tools that are in this book.
Kim Palmer:
Do you think that it’s important, just to take a step back, at someone’s overall personal finances? If you also have a lot of high-interest credit card debt, for example, or you don’t yet have an emergency savings fund, should you focus on that first before you think about investing, or do you suggest kind of just doing everything all at once?
Jessica Spangler:
There’s a great section in the first half of this book called Out of Debt and Into the Game. One of the things that we talk about is differentiating between high-interest debt and low-interest debt. When we think about high-interest debt, these are essentially interest rates that are going to exceed the average returns that you can expect in the stock market. And so, when we have really high-interest debt like credit card debt that can be much higher than 7%, going all the way up into 20%, 30% interest rates, it’s going to be really hard to benefit from investing when that interest rate on the debt is going to be taking two steps back every time you take one step forward.
We do talk about the strategies to eliminating high-interest debt in this book, because that really is important before you get started with investing. And of course, like you said, having an emergency fund is absolutely essential so that you’re not digging into your savings when life throws curveballs at us, as it always does.
Important to say that I do think often we feel as if we need to have no debt at all in order to start investing. This idea of you can’t have any student loans whatsoever, you’ve got to pay off your mortgage, that’s just not the case. If we can optimize our debt so that we are eliminating high-interest debt and still maintaining things that hopefully have a lower interest rate, something like federal student loans, whereas we may pay off our private ones if those have higher interest rates, we can really optimize our personal finances so that we can still benefit from the great wonderful compound interest of investing.
Kim Palmer:
Let’s dive into some of your other specific strategies. I know there’s a lot to unpack, but a few things that jumped out at me that maybe you could give us an overview of. You talk about how important it is to figure out your net worth and think about your cash flow. Could you just help us understand what that means exactly?
Jessica Spangler:
The gist of it is that your net worth is really everything that you own minus everything that you owe. It’s really just a snapshot. It’s a picture in time of what your assets are looking like versus what your liabilities are looking like. It really says nothing about necessarily the future of your financial standing or how successful or not you may be at investing. It’s really just a snapshot of where you’re at right now, how much money do you have in assets that you own, and how much money are you spending on liabilities or debt. We just calculate net worth by subtracting your outstanding debt and the money that you owe from your assets and the money that you own.
Assets may be cash. That’s an easy one. It could also be the value of your home if you own a home. It could be valuables, jewelry, furniture, things that have value, things that you could sell for cash. Whereas liabilities, the money that you owe, often we’re talking about loans here, the value of your student loans, the value of the mortgage on your home. If you have the value of credit card debt, you would subtract that number from your assets to get your net worth, and that’ll give you just a snapshot in time of where you are in terms of what you owe versus what you own.
Kim Palmer:
Perfect. And then you can work on growing that.
Jessica Spangler:
Exactly. It’s important to know where you’re at so that you can figure out where you’re going.
Kim Palmer:
And with the cash flow idea, is that basically you’re trying to get a handle on your budget just to understand your money going in and out before you start making any investing decisions?
Jessica Spangler:
Exactly. I think budgets can be really boring and dry and bland kind of conversation for a lot of people, and it’s something that even I just naturally feel kind of averse to because oftentimes it feels so strict and so stringent that it’s just really hard to find something that fluctuates with daily life as it does. But having a good budget means taking a look at all of your money, where it’s coming in, where it’s going, so that you can make room for things that you value. I think that’s really what differentiates a good budget from just an Excel spreadsheet that isn’t really doing anything for you.
A good budget helps you see what is going on with your money so that you can prioritize spending it on things that you love, whether that’s vacations or time with your family or investing. It’s being able to have an idea of the full clear picture so that way you can set aside that extra money for investing.
Kim Palmer:
And then when you are ready to turn to investing, you talk about picking the right mix of stocks and bonds and other investing vehicles. And obviously the best choices are going to vary so much by person. Can you give us an overview of how someone makes those choices for themselves?
Jessica Spangler:
Like you said, it really is such a personal decision. There are a lot of factors that go into why someone may lean more stock-heavy in their portfolio versus bond-heavy in their portfolio. Generally, we’re thinking about a couple different things. First of all is your risk tolerance. This is how much you can deal with fluctuations in the market.
Stock market crashes are normal. It’s a normal part of the market cycle. Even just normal fluctuations in the market, it’s very normal. Some people are totally comfortable with those fluctuations, and they don’t mind seeing their portfolio drop by 30% one year and be up by 30% the next. That person would be more likely to choose a stock-heavy portfolio where equities can fluctuate more rapidly on a regular basis.
A person who wants less risk in their portfolio, that person may be more likely to purchase something like bonds, where the value is less likely to fluctuate, and as long as you purchase government bonds, you are going to get what you put in at the end plus interest. Those ratios in your portfolio can change accordingly.
The other part of the equation is time horizon. How long you have before you need to access the money can really greatly impact what kinds of decisions you decide to make. For example, if you’re relatively young, you have 30-plus years before retirement, you may be very comfortable investing more heavily into stocks and equities because you have 30 years between now and the time that you have to actually think about withdrawing some of that money in retirement. So whatever kind of roller coaster the stock market takes you on in between now and then is really inconsequential so long as 30 years from now you actually net positive. Whereas somebody who’s retiring in the next couple of years and has built up this really solid nest egg, they might be a lot more cautious when investing 80% or 90% of their money into stocks and equities because when their retirement party is 50-something weeks away, they’re going to want to make sure that their money isn’t fluctuating heavily right before they get to retire and sit on a beach somewhere and enjoy the fruits of their labor.
There’s lots of other things to think about, but those are two of the main factors when it comes to selecting your ratio of equities and bonds and all the other different types of securities that we talk about in the book.
Sean Pyles:
More of Kim’s conversation with Jessica Spangler is coming up in a moment. Stay with us.
Kim Palmer:
A lot of people are also concerned about the social and environmental impact of the companies they’re investing in. Is that a good thing to consider? And if you do want to think about that, what’s the best way to evaluate it?
Jessica Spangler:
That is definitely something that we talk about in the book. Environmentally sustainable investing is a topic of growing importance and growing conversation. And more and more data is really coming out about it. It’s often hard to know what a company is reporting in terms of their financials and how that actually holds up on the back end with what they’re doing to be sustainable. There are some markers that we can look for when it comes to more equitable and sustainable investing, whether or not the companies are really transparent in their reporting process, whether that’s emissions or how they are having their products tested and rated for environmental grading groups.
In the book, you’ll read about various certifications that companies can go through to do that. There’s also the topic of diversity and equity and inclusion in the actual upper ranks of the company and whether or not they’re following through in some of their mission statements to include various groups into the higher levels of the executive company. But that said, and we talk about this in the book as well, it’s important to also look out for greenwashing or this concept of appearing to be particularly sustainable or equitable by using terms that don’t really have a clear definition, terms that make a product perhaps seem as if it may be sustainable when in fact it’s not.
I always encourage investors who are interested in sustainable and equitable investing to look into some of the documents and the literature that each individual company will post as part of their annual report and their reporting documents to the SEC, and those are mentioned in more detail in the book, but it really does require a pretty substantial amount of research to really determine whether or not a company is following through on their promises.
Kim Palmer:
Can you share some of the lessons you’ve learned yourself as an investor? Have you personally changed your strategy at all or made mistakes along the way?
Jessica Spangler:
I think that one of the biggest things that I’ve learned is that more complex is not necessarily better. And what I mean by that is I think there’s this tendency, the more you learn about investing and the more you learn about personal finance, to feel like you have to do these increasingly complicated investing maneuvers like, “Okay, I’ve got to have 4% this and 6% this and 12% that, and I should probably incorporate a little bit of this,” when frankly, most of the data suggests that those of us who invest primarily in a well-diversified balanced index fund that represents either the total stock market or the S&P 500, so the top 500 companies in the United States, we typically statistically outperform some of these major professional hedge fund managers who spend all of their time and money manipulating all of these different ratios and portfolios to find the perfect investment. Really keeping it simple can actually be more profitable, and that’s definitely something that I’ve learned over the years.
Kim Palmer:
In the book, you also say a lot of choices around investing really circle back to what your goals are. What are some examples of a short-term goal and a long-term goal that maybe investing could help us achieve?
Jessica Spangler:
When we think about financial goals, I tend to separate them into three different categories: short-term goals, medium-term goals, and long-term goals. Now, when I think about a short-term goal, I’m talking about one to two years, generally. And for a very short-term goal, like maybe you’re saving for a down payment on a house and a high-yield savings account, that might not be something you actually even want to invest for at all. If a goal is so short that it’s right around the corner and you really want to have that money flexible and available to you, a high-yield savings account might be the perfect place to put that money so that you still have access to it in cash, but you’re getting a higher interest rate than you would in a standard run-of-the-mill savings account.
Now a medium-term goal, which now we’re thinking between three to seven or maybe even as far out as 10 years in the future, this might be something that you’re saving for in the long-term. Maybe you are investing to make a major payment on a loan that you already have. Maybe you are looking to invest in some other property. Maybe you’re looking to invest for retirement or for a really great wonderful vacation or a backpacking trip or something that’s still three to seven years down the road. Once we start to think in that kind of time horizon, that’s when we start to focus a little bit more on investing.
Of course, for longer time horizons—10, 15, 20, 30 years out—that is when investing really shines because the longer your money is able to stay in the market, the longer you are able to take advantage of compound interest and really watch your money grow. It’s a lot harder to say that you will certainly make money in the stock market in a one to two year span when fluctuations are almost certain than it is to say that you’ll make substantial profit three to seven to 10 to 30 years out in the future where you have plenty of time to accumulate that nest egg and really work towards more far-out financial goals.
Kim Palmer:
If you do have money invested, it can be so stressful if there’s a news day where suddenly the stock market is just plunging. Putting it in the context of the fact that some of these goals are long-term, do you recommend we pay attention to these daily swings?
Jessica Spangler:
Personally, absolutely not. I mean, that’s just so stressful. And for what? If your long-term goals are far enough out in the future that it’s really not something you need to pay attention to, the only thing that really matters is that 20 years from now, 30 years from now, whatever that longer-term time horizon is for you, the only thing that matters is that in the future you walk away with more money than you put in today and not less. What happens on the day-to-day is just noise, and there’s really no reason to get caught up in it. If you’ve got your long-term vision in mind and you’ve got your goal at the end, you don’t need to get caught up in all of the market mumbo jumbo.
Kim Palmer:
For anyone listening who’s wondering why it’s so important to learn how to invest and create financial security for yourself, you share a really powerful story at the beginning of the book about your family and what you experienced growing up, what really inspired you to take control of your finances. Do you mind sharing that story here?
Jessica Spangler:
Absolutely. I grew up in a middle-class family. My dad worked in construction as a carpenter and my mom was a stay-at-home mom. When I was seven years old, my dad passed away very suddenly from a heart attack, and nobody saw it coming. He was this tall, manual labor job, slender dude. It was totally out of left field, and it was a life-defining moment for me and for my mom. We lost my dad, which was obviously emotionally devastating on its own, but we also lost our only source of income. And neither of my parents went to college. My mom didn’t have a degree where she could just go out and pick up a good-paying job. She really had to figure it out for herself and for her kids. And as women do when they’re faced with any trying situation, she just got it together. She pulled through. She took some classes and started working in real estate, and went on to become this amazing award-winning realtor. She is my biggest inspiration.
But through this whole time, I really learned by osmosis. I went to listing appointments with her. I went to settlements. I walked through open houses. And as fate would have it, in 2008, the housing market wound up crashing. And once again, we really lost our sense of financial stability. It taught me at a really young age, I don’t want to rely on anyone for money. I want to have my own source of income. I want to be able to provide for myself financially and I want to have a sense of control and choice and power in my own financial life.
Neither of my parents went to college, so of course my first instinct in all of this was that of course, I should go to college. I should go all the way and get a doctorate, which is what I wound up doing. But it wasn’t until so many years later when I learned that my paycheck was enough to survive. It was enough to live. And for that, I’m grateful, so grateful because absolutely not everyone can say that. But it wasn’t really enough to retire. It wasn’t enough to really set away a nest egg and to make sure that I was comfortable forever.
What I really had to start thinking about was investing. How do I actually provide for myself so that I never need to rely on anyone, not now or not in the future? I taught myself to invest. I learned everything I could online about investing and got started doing it myself. And here we are all these years later, writing a book and trying to help in some way so that other women feel empowered and feel that they have agency in their own financial future so that they have the choice to leave a job that doesn’t fulfill them or leave a relationship that isn’t safe or just retire on a beach somewhere. Whatever it is that your goal is, it’s possible to have financial independence and it’s something that I spent my whole life looking to achieve, and here we are.
Kim Palmer:
Thank you so much for sharing that. It is definitely so inspiring. Do you have any closing thoughts to share with our listeners?
Jessica Spangler:
I am a huge proponent of women having the agency and the ability to make their own choices in any capacity. And being financially independent, being financially educated gives you that choice. It gives you access, it gives you agency, and it gives you real independence. I just want women to know that if there’s any doubt that they can’t, they absolutely can. There is an entire book of data and numbers and strategies and step-by-step guidance that will show you that you are more than capable. You are great at it.
Kim Palmer:
I love that. Jessica Spangler, thank you so much for joining us on Smart Money.
Jessica Spangler:
Thank you so much for having me.
Kim Palmer:
Yes, that is all we have for this episode. To share your thoughts on money, shoot us an email at [email protected]. This episode was produced by Sean Pyles and myself. Tess Vigeland helped with editing. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Sean Pyles:
Visit nerdwallet.com/podcast for more info on this episode. And remember to subscribe, rate and review us wherever you’re getting this podcast. You can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
Here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Kim Palmer:
And with that said, until next time, turn to the Nerds.
In some ways, net worth and wealth can be tricky terms to define. To some people, the phrases are synonymous. As others acknowledge, the perception of wealth is influenced by a variety of factors, including where you live, your career, and your age.
Here’s a deep dive into how to calculate individual net worth and some of the factors that may influence our perception of wealth.
Key Points
• Net worth is calculated by subtracting liabilities from the total value of assets, including real estate and investments.
• Assets like cash, life insurance, household items, and jewelry contribute to overall wealth.
• A positive net worth results when assets exceed liabilities, indicating financial health.
• Lifestyle creep can hinder wealth accumulation as higher incomes often lead to increased discretionary spending.
• Middle-income families earn between $56,600 and $169,800 annually, defining economic classes.
How to Calculate Individual Net Worth
An individual’s net worth is the value of all of their combined assets minus any liabilities (that is, outstanding debts). If your assets are worth more than your liabilities, you have a positive net worth. If you owe more than you own, your net worth is negative.
Assets you may use as part of your net worth calculation can include:
• Real estate. Your home, second home, rental property, commercial real estate, or other holdings.
• Cars and other vehicles. Note that automobiles are typically subject to depreciation in value over time.
• Investments. Stocks, bonds, mutual funds, and retirement accounts.
• Cash
• Life insurance. Use the cash value.
• Household items. Furniture, silverware, etc.
• Jewelry. Plus precious gems and metals.
Liabilities are debts such as:
• Balance remaining on your mortgage
• Student loans
• Auto loans
• Credit card debt
Recommended: Does Net Worth Include Home Equity?
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What Is the Difference Between Net Worth and Income?
Net worth and income don’t necessarily go hand in hand. Income is the money that is reported on a tax return, while a high net worth results from owning valuable assets. High net worth could be a result of careful saving, inheriting money, or hanging onto highly appreciated assets.
For example, let’s say someone bought a house in a once-undesirable neighborhood decades ago. Today, that neighborhood is super popular and the house is worth much more. Even if they don’t sell, the homeowner has increased their net worth without a boost in income. (It can be useful to see how net worth changes by age and location.)
On the other hand, a professional with a high salary who carries a lot of debt could have a relatively low net worth, especially if they also maintain a costly lifestyle. That said, various types of income certainly can have a big impact on how much wealth a person is able to accumulate.
Income is also one way that researchers sort individuals into economic classes, though the income ranges that delineate class can vary from year to year and by research methodology.
What Salary Is Considered a Middle-Class Income?
Pew Research Center defines middle-income Americans as those whose annual size-adjusted income is two-thirds to double the median size-adjusted household income. (Size-adjusted household income refers to the number of people within the household.)
A middle-income family of three earned $56,600 to $169,800 in 2022, the most recent information available from Pew Research.
What Salary Is Considered an Upper-Class Income?
Upper-income individuals earn more than double the median size-adjusted household income. This means a family of three may earn more than $169,800.
Wondering how your income compares? It can be helpful to look at the median income for a three-person household in each income tier.
Income Tier
Median Income in 2022
Upper Income
$256,920
Middle Income
$106,092
Lower Income
$35,318
Source: Pew Research Center
Why Wealth Is Relative Person to Person
The definition of “wealthy” differs depending on a person’s background, geography, and age. Consider a law student who earns very little money each year and carries hundreds of thousands in student debt. While their current wealth may be low, their potential future earnings may be quite high, and could catapult them into the wealthiest classes.
Consider, too, that where you live has a big impact on how far your wealth will stretch. A middle-income earner in an expensive city like San Francisco or New York may find it more difficult to make ends meet than someone in a small town in Oklahoma with a lower cost of living.
Ways to Measure Wealth
Wealth and net worth can be considered synonymous in some cases. But there are other factors that play into the perception of wealth and a person’s ability to accumulate it. Examples include demographic differences and potential return on investment, which may not have an immediate impact but can increase future wealth.
Income
As mentioned above, high income does not necessarily lead to high net worth — but it can. High earners may use their income to acquire assets that maintain equity, such as a home. These people may also use their earnings to invest within retirement and brokerage accounts.
Personal Savings
Your personal savings may refer to the cash you have on hand in checking and savings accounts, certificates of deposit, and money market accounts. It may also refer to the savings you have invested in brokerage and retirement accounts.
Ideally, these investments will appreciate over time, increasing net worth and providing a future source of income to maintain your standard of living after you stop working. As you build up your savings, tools like a money tracker app can help you keep tabs on your money.
Investment Rate of Return
An important factor in accumulating wealth is the rate of return (ROR) on your investments. Investment returns are not guaranteed. Stock prices rise and fall according to various trends in the market. Even bonds, which are relatively safe, are subject to default from time to time.
In the past, the stock market tended to rise over the long term. In fact, since 1926, the average annual rate of return for the stock market has been about 10%, surpassing potential returns for other major types of investments, including bonds.
Investors who save more, and hold more of their investment portfolio in stocks, may be better positioned to take advantage of these potential future returns.
Real Estate Assets
One way to think about wealth is as the maintaining of assets. Real estate can be a good place to build equity, and it can appreciate in value. Returns can vary widely depending on what type of real estate you buy — whether a home or commercial property — and where the property is located. Historically, the rate of return on real estate has been close to stock market returns. In the U.S. market, the median return on real estate investment is 8.6% annually, per the S&P 500 Index.
Age and Family Status
Demographic factors can have an impact on how much money you earn and the wealth you can accumulate. For example, median weekly earnings vary by age and gender.
Perhaps unsurprisingly, men and women ages 16 to 24 have the lowest median weekly earnings, with men earning $771 per week and women earning $695 in the second quarter of 2024, according to Bureau of Labor Statistics data.
Men age 35 and over enjoyed the highest median weekly earnings:
• 35 to 44: $1,379
• 45 to 54: $1,470
• 55 to 64: $1,361
Women earned less overall than men:
• 35 to 44: $1,114
• 45 to 54: $1,151
• 55 to 64: $1,048
The number of people in a household has a different impact. More people under one roof may require a larger home and more money spent on things like groceries, clothing, and transportation. As a result, a single individual usually requires less wealth to maintain a certain lifestyle than a family of five.
Good Credit Score
While not exactly a measure of wealth, a good credit score is a measure of financial health. It suggests that you have not taken on more debt than you can handle, and that you are able to make your payments on time.
A good credit score can also help you leverage your wealth to achieve financial goals. For example, lenders will look at your credit score when you apply for a loan to determine your creditworthiness. A good score can help you qualify for loans with lower interest rates. Individuals with bad credit, on the other hand, may be seen as a risk, and lenders may charge higher interest rates to compensate.
As a result, a good credit score can help you qualify for loans, such as a mortgage, at affordable rates that can help you build wealth.
Difference Between Material Wealth vs Spiritual Wealth
Material wealth is dependent on the physical and financial assets that you own and the debts you carry. Spiritual wealth, on the other hand, is not based on tangible items. Rather, it’s based on things like a sense of well-being and happiness.
Are material wealth and spiritual wealth linked? In a 2023 paper, authors Daniel Kahneman, Matthew A. Killingworth, and Barbara Mellers discovered an overall connection between larger incomes and increasing levels of happiness. But they also found that happiness peaks at $100,000 a year and then plateaus in people who are already unhappy.
Appreciating What You Have
One of the reasons that higher income doesn’t always translate into greater wealth is a phenomenon known as “lifestyle creep.” This occurs when increasing income leads to an increase in discretionary spending. A certain amount of lifestyle creep can result from trying to “keep up with the Joneses” — a tendency to accumulate material goods to compete with others in one’s perceived social class.
For example, as a person earns more, they might buy a bigger house, a more expensive car, pricey clothes, and start sending their kids to private school. These costly habits can mean that the individual may not be able to save more than when their salary was lower.
Try to avoid lifestyle creep by putting off grand lifestyle changes, like buying a large home, and putting off big purchases until absolutely necessary. Build and stick to a budget that includes wealth-building line items, such as saving in retirement funds. Track your progress with a budgeting app.
Practice appreciating what you already have, and you may find that some of the upgrades you desire are just wants — not necessities.
Recommended: What Credit Score Is Needed to Buy a Car?
The Takeaway
Net worth and wealth are inextricably linked. Measuring net worth helps people assess how many assets they currently have at their disposal. Accumulating wealth is about acquiring and maintaining assets that hold their value or increase in value. Doing so often requires careful saving and investing, as well as constant monitoring to ensure you stay on track.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What salary is considered middle-class income?
Middle-income Americans have annual incomes that are two-thirds to double the median income, according to Pew Research. For example, a middle-income family of three will earn $56,600 to $169,800.
What salary is considered upper-middle class income?
An upper-middle class income is at the high range of middle class income. According to the U.S. Census Bureau’s “Income in the United States: 2022” report, that’s an average annual income of $94,001 to $153,000.
What salary is considered lower-class income?
Low-income Americans are anyone earning less than two-thirds of the median household income. Per Pew Research Center, that means a family of three would have a household income of less than $56,600.
Photo credit: iStock/fizkes
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
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.
In the not-too-distant past, when couples had kids, one partner stayed home — and essentially gave up their career for a while. Today, however, more companies are accommodating remote work and flexible hours for an expanding roster of jobs. Stay-at-home parents may be surprised to see that the industry they left behind is now open to hiring them back on a part-time or freelance basis.
We’ve rounded up the most promising work-from-home jobs with flexible hours across a range of occupations. Some require a relevant degree or specialized training or experience, while others are more open to motivated generalists.
Key Points
• Remote work and flexible hours are more common, which can help parents who are re-entering the workforce.
• Some work-from-home jobs require specific degrees, while others are open to generalists.
• Companies increasingly accept remote work, with many employees on hybrid or fully remote schedules.
• Sales representatives, advertising sales agents, and public relations specialists have remote work opportunities.
• Financial sector roles like financial analysts and accountants offer good entry-level salaries and remote work options.
Is Working From Home Here to Stay?
Companies are finally accepting that work-from-home situations can be beneficial for businesses and workers. Today, 41% of American workers who have the ability to do their job remotely are working a hybrid schedule, according to a 2023 Pew Research Center survey. And 14% are able to work from home the entire week.
This is great news for the millions of Americans who can’t swing a full-time office job, from job-seeking retirees to self-described “antisocial” folks.
That said, telework is unlikely to be available for occupations that have a need for workers at a jobsite, including trade jobs. But many more professional roles can be fulfilled by remote workers.
Are WFH Jobs and Remote Jobs the Same?
WFH and remote jobs may be different in how they’re set up. Some companies define “work from home” (WFH) as a temporary situation, like working from home on a Friday but coming into the office other days of the week. The expectation for remote workers is that they define their own workday and may never need to go into the office.
Pros and Cons of Raising the Minimum Wage
13 WFH Jobs With Flexible Hours for Moms
If you need or want to work from home, there’s never been a better time. Take a look at these 13 occupations with the most remote opportunities, per the Bureau of Labor Statistics. Some may pay hourly vs. salaried, but all pay considerably higher than minimum wage.
We hope this list will inspire you to pursue a job with flexible hours that previously might have shut you out.
1. Market Research Analyst / Marketing Specialist
Median annual wage: $74,680
Job growth outlook (2023-2033): 8%
Requirements: Bachelor’s degree
What they do: Market research analysts study consumer behavior and preferences, then make recommendations to businesses that promise greater profitability. They also research a company’s position in the marketplace relative to their competitors.
2. Marketing Manager
Median annual wage: $156,580
Job growth outlook (2023-2033): 8%
Requirements: Bachelor’s degree
What they do: Marketing managers create interest in a product or service using advertisements, promotions, and other marketing tactics. They develop pricing strategies and negotiate advertising contracts. This is the highest paying job on our list.
3. Fundraiser
Median annual wage: $64,160
Job growth outlook (2023-2033): 6%
Requirements: Bachelor’s degree
What they do: Fundraisers organize events and campaigns to help raise money for an organization. They may work for political campaigns, nonprofits, or educational institutions.
4. Compensation and Benefits Manager
Median annual wage: $136,380
Job growth outlook (2023-2033: 2%
Requirements: Bachelor’s degree
What they do: Compensation and benefits managers administer an organization’s salary and insurance plans for employees. They analyze market trends to determine competitive pay and perks that attract and retain talent.
5. Claims Adjuster / Examiner / Investigator
Median annual wage: $75,020
Job growth outlook (2023-2033): -5%
Requirements: High school diploma or equivalent
What they do: Claims adjusters, examiners, and investigators are responsible for processing an insurance’s company’s claims. They determine if the claim is eligible and how much should be paid out. It’s one of the few jobs that don’t require college.
6. Financial and Investment Analyst
Median annual wage: $99,890
Job growth outlook (2023-2033): 9%
Requirements: Bachelor’s degree
What they do: Financial and investment analysts help businesses and individuals make decisions to become more profitable. Analysts may work on the “buy-side” (for companies with a lot of money to invest), the “sell-side” (for agents who sell stocks and bonds), or the media. They may specialize in a particular area or market, like tech or energy. The financial sector tends to have very good entry-level salaries.
7. Accountant / Auditor
Median annual wage: $79,880
Job growth outlook (2023-2033): 6%
Requirements: Bachelor’s degree
What they do: Accountants and auditors are responsible for preparing accurate financial reports, analyzing the financial health of an organization, and filing taxes. They may make suggestions to a business about how to reduce costs, eliminate inefficiencies, and improve profitability. Accounting has long been considered a good job for introverts.
8. Computer Systems Analyst
Median annual wage: $103,800
Job growth outlook (2023-2033): 11%
Requirements: Bachelor’s degree
What they do: Computer systems analysts help businesses become more efficient with specific computer technologies. They analyze the cost and benefits of IT systems and help managers decide which are best for their organization. They are sometimes called systems architects and usually specialize in a specific type of computer system.
When you’re earning a six-figure salary, it helps to have a big picture of your money. Tools like a spending app let you keep tabs on your budget and savings goals.
9. Network and Computer Systems Administrator
Median annual wage: $95,360
Job growth outlook (2023-2033): -3%
Requirements: Bachelor’s degree
What they do: Network and computer systems administrators are responsible for the day-to-day operation of computer networks for an organization. They may install, test, make upgrades and repairs, and train users. They manage servers, desktops, and mobile equipment. Much of this can be done remotely.
10. Computer Support Specialist
Median annual wage: $60,810
Job growth outlook (2023-2033): 6%
Requirements: Some college
What they do: Computer support specialists help users with computer network problems. They also maintain existing network systems. The potential as a part time job with flexible hours for students is there.
11. Sales Rep, Wholesale and Manufacturing
Median annual wage: $73,080
Job growth outlook (2023-2033): 1%
Requirements: Bachelor’s degree
What they do: Sales representatives can make money by selling products or services for an employer. They explain the features of the product and help the customer understand how the product can benefit them. They negotiate prices, prepare sales contracts, and submit orders for processing. They maintain a relationship with the client for ongoing business exchanges.
12. Advertising Sales Agent
Median annual wage: $61,270
Job growth outlook (2023-2033): -7%
Requirements: High school diploma or equivalent
What they do: Advertising sales agents sell advertising space to businesses and individuals. They build relationships with clients and explain the design, contracts, and cost of the ad space.
13. Public Relations Specialist
Median annual wage: $66,750
Job growth outlook (2023-2033): 6%
Requirements: Bachelor’s degree
What they do: Public relations specialists are responsible for maintaining a positive image for their clients. They do this by preparing information for the media, running social media programs, and preparing clients for interviews with the media.
Recommended: Jobs That Pay Off Student Loans
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The Takeaway
There’s never been a better time to be a remote worker. Whether you’re an expert in your field or need to make a job transition, remote jobs with flexible hours are now possible for many workers. Sometimes, it’s just a matter of knowing where to look for the jobs and finding the right match for your skills.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What kind of job can I do as a stay-at-home mom?
Any job that can be done remotely is one you can do as a stay-at-home mom. Many well-paying jobs can be done remotely, such as legal work, marketing, sales, and more.
What is the best part-time job for a housewife?
The best part-time job for a housewife is one that fulfills you and helps support your family at the same time. Look for industries, occupations, companies, and individuals that are supportive of your goals and needs. In the competitive labor market we’re in now, you can ask for things that are important to you, such as a flexible schedule or remote work.
Photo credit: iStock/lechatnoir
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
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.
A full-time job isn’t always enough to achieve your financial goals. That’s why nearly 40% of U.S. adults have a side gig, according to a 2023 Bankrate survey. Making extra moneycan help you pay off debt, save to buy a house, or catch up on retirement savings.
Fortunately, there’s a wide range of side hustles and passive income streams that can help you tackle financial to-dos or even take your wealth to the next level, says financial blogger Kelan Kline. A side hustle is typically an additional job a person can take to earn extra money to supplement their primary income. On the other hand, passive income can be income that requires little or no effort to maintain.
Kline should know. When he and his wife Brittany were saddled with student loan debt, they launched The Savvy Couple—a blog focused on side hustles and money management tips—to help them earn extra income.
“It became a full-time business that allowed us to quit our 9-to-5 jobs in law enforcement and helped teach us to fast-track our financial freedom,” Kline says.
While most secondary gigs won’t turn into new careers, they can add a spark to your savings. So, what are some side hustle and passive income ideas that can help you make extra money? Read on to see which types of side hustles and passive income ideas can inspire you to accelerate your financial targets—and learn how your new income streams can work together to generate even more cash.
What is a side hustle?
A side hustle is any income-generating work outside of your primary job—anything from food delivery to selling items online. People use the extra income to improve their financial health, from building up savings to preparing for a big purchase.
What are some side hustle ideas?
“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for,” says Randa Kriss, small business specialist at NerdWallet.
We’ve collected some side hustle ideas you can try without too much previous experience to help you make extra dough—or even find a new job:
(All earnings information courtesy of ZipRecruiter🙂
Ride-sharing
Ride-hailing or ride-sharing apps make it easier for people to get around on demand, while creating a market for drivers and their cars. For many ride-share drivers, this is their primary source of income, but it can also be a convenient side hustle option.
“Driving for a ride-sharing service is a great way to make some extra money,” Kline says. “It allows you to be your own boss and set your own hours, which can be especially beneficial for people who have a flexible schedule or want to supplement their income.”
Approximate earnings: $13 an hour
Delivery driving
Don’t want to drive strangers around? Deliver food instead. Many delivery service apps need drivers to drop off grocery hauls and restaurant takeout.
“Delivery driving is a great way to earn some extra money on the side, while also having some time to decompress,” says Jacqueline DeMarco, a freelance writer specializing in personal finance content. “Driving can be stressful, but it’s a lot less stressful without passengers in the car. You can even listen to podcasts or audiobooks to make it feel like less of a chore.”
Approximate earnings: $18 an hour
Grocery shopping
Grocery delivery services also need people who can shop for items before they’re delivered. Once you sign up and choose a nearby supermarket, customer orders will pop up on your phone. Efficient shoppers who can quickly navigate local stores are making extra money by filling up shopping carts—and you could, too.
“Enjoy the free air conditioning while you fulfill grocery orders,” DeMarco says.
You can even take care of your own grocery needs once your customer orders are fulfilled. You may be less tempted to order expensive takeout if you’re already in a supermarket.
Approximate earnings: $16 an hour
Tour guide
If you love your area and have an engaging personality, become a local tour guide.
Being a tour guide can be a great way to meet new people and show them a city or neighborhood you’re passionate about—all while making extra money. You might need to pass a test to work for certain organizations, and many tours use a pay-what-you-like model so the income can be inconsistent. But it’s a side hustle with growth potential, DeMarco says.
“You can learn the ropes working for a tour guide company or app, then eventually take that knowledge and start your own tour guide business,” she says. “That way, you don’t have to share the profits.”
Approximate earnings: $19 an hour
Virtual assistant
Virtual assistants aren’t algorithms or chatbots—they’re real people. Virtual assistants can work from almost anywhere in the world as they perform digital tasks like scheduling, fielding emails, and even managing social media for companies or individuals.
“It’s an excellent option for people who have administrative and organizational skills, as well as the ability to work independently,” Kline says.
Approximate earnings: $24 an hour
Babysitting
If you’re trustworthy, responsible, and enjoy working with kids, babysitting is a great opportunity. And once you start establishing solid relationships with parents, it can evolve into a regular gig that provides a stable income. You can list your services on online platforms catering to babysitters.
When DeMarco was a babysitter, she also worked on freelance writing assignments while the kids slept, which helped her to maximize her side income opportunities. “If you love kids, it’s a fun way to earn extra cash,” she says.
Approximate earnings: $18 an hour
“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for.”
Pet sitting
Are fur babies more your thing? Countless pet sitting opportunities exist—especially now that more people have returned to on-site work since the pandemic pet adoption boom. Multiple apps and sites allow you to list your pet sitting services. Just make sure you emphasize any experience you have as a pet sitter or a pet owner.
Approximate earnings: $16 an hour
House sitting
Many homeowners prefer to have someone stay over or regularly check in on their property (and also maybe look after their pets). House sitters not only get paid but often have full access to the home’s amenities, which might even include a pool or home theater.
“A lot of my babysitting clients would ask me to house sit or pet sit when they were out of town,” DeMarco says. “The best part about side hustles like this is you only have to say yes to a job when it works for your schedule.”
Approximate earnings: $17 an hour
Studies and focus groups
Research companies always need focus group participants. Whether they meet remotely or in person, these groups may give feedback on new products or provide insights that help organizations develop new services.
“Participating in focus groups and studies can be an interesting way to make extra money,” says Kline. “It is a great option for people who have flexible schedules, as it does require some time commitment and availability.”
Approximate earnings: $27 an hour
Translation work
Are you fluent in multiple languages? If so, you can put that skill to work. Translation duties can include working with marketing copy or medical and legal documents, so additional expertise may be necessary. And certain languages may offer more opportunities—and more money—than others, so research apps and online job boards to gauge the demand for your specific language skills.
Approximate earnings: $28 an hour
Graphic design
You can start a side hustle creating logos, visual assets for social media, or custom stickers for events or companies if you have the skills—or the willingness to learn. Creating designs for a friend or family member at a discount rate and posting them to your online portfolio is one way to gain experience and attract more—and higher-paying—clients.
“Graphic design can be a great side hustle for people who have an eye for design,” Kline says. “It is also a relatively easy and low-cost way to get started.”
Approximate earnings: $27 an hour
DIY for hire
Can you install a light fixture, assemble furniture, shovel snow, or paint a room? You can get paid for those tasks by signing up as a service provider on any freelance labor marketplace or app.
Approximate earnings: Varies depending on the job
Data entry
Data entry can be repetitive work, but the advantages extend beyond the ability to do it from home. Tasks can range from transcribing audio for a documentary filmmaker to inputting a company’s financial records on a spreadsheet. And the work is easy to find, as many job sites list part-time data entry roles.
“Data entry jobs typically require minimal training and can be done on a flexible schedule,” Kline says.
Approximate earnings: $19 an hour
Tutoring
Tutoring can be a flexible side hustle, too. You can work with students remotely or in person—from elementary school kids who need help after school to high school and college students who need weekend guidance to help them cram for exams.
“Tutoring can be a great way to make some extra money if you have the knowledge and skills,” Kline says. “It is also an excellent way to give back and help others.”
Approximate earnings: $20 an hour
Background acting
The people in the background of your favorite movies and TV shows actually get paid. And you don’t need to live in Los Angeles or New York City to find those roles. Production companies and university film students often post online ads for background acting opportunities across major U.S. cities. The time commitment will likely vary, but the extra money—and on-location craft service spreads—can make it worth your time.
“You can learn more about the film industry and meet interesting people,” DeMarco says.
Approximate earnings: $27 an hour
How can a side hustle complement a passive income strategy?
While side hustles and passive income ideas can both add income to your bottom line, they aren’t the same thing. So, what is passive income?
Unlike a job or side hustle, passive income does not require much, if any, additional effort. Examples include stock dividend payments, property rental income, and book or music royalties.1
Of course, no one will show up at your house and start handing you cash. Usually, a passive income stream will require some initial effort and an upfront cost to set up, but ideally, it requires minimal effort once the wheels are in motion. That initial effort or investment might mean that passive income streams won’t be as accessible as side hustles, at least not until a little later in life.
“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom,” Kline says. “For example, you could use the money from your side hustle to invest in stocks and bonds, which can generate dividend payments.” (Please consult your tax advisor with respect to information contained in this article and how it relates to you.)
Or you could use the money earned from a side hustle to eventually purchase a rental property, which can generate long-term passive income, Kline says.
“Ultimately, having both sources of income can help you achieve your financial goals faster,” he adds.
Most passive income streams could be considered a form of investment. But this includes much more than buying and selling stock in companies. Anything you purchase with the intent to make more money from could be considered an investment.
Consider these additional ideas for making extra money:
Dividend investing
“Dividend investing is a great way to earn passive income,” Kline says. “It involves purchasing stocks or bonds that pay out dividends, which could be a great source of income over time.”
You should do research or consult an investment professional to learn which companies offer the best mix of dividend payments versus risk. Most dividend-paying stocks pay out quarterly, though some may pay out more or less frequently. The amount paid will be a percentage of your holdings, likely in the low single digits.
Dividends can be a reliable source of income for retirement, and advocates of the Financial Independence, Retire Early (FIRE) strategy for early retirement often recommend investing in dividend-paying stocks.
“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom.”
Rental income
There are many different types of property you can buy in order to rent out, depending on what’s available in your area or what investments you’re willing to consider.
Consider these different types of rent-based passive income ideas:
Long-term home or apartment rental
Leasing out a home or apartment can be a reliable and significant source of passive income, but it’s also a very involved process. You’ll need to learn the rental regulations for your area and your obligations to your potential tenants. Unless you can afford to pay someone to manage the property, the upkeep may resemble a job of its own.
Short-term rentals
If you have a spare room or vacation property, you could list it on a short-term rental platform or app.
“It’s a relatively easy way to make money by renting out your unused space or investment property,” Kline says.
While this may not provide the same degree of reliable income as a long-term lease, it’s easier to get started. Plus, utilizing black-out dates means you still get to access your space when you want, while having the opportunity to make an income from it when you don’t.
Other rental spaces
A spare parking or storage space can also be a source of passive income, and several apps and services exist for listing them. Best of all, renting out a space you never use, like a garage spot, requires little effort to earn reliable passive income.
Rent out your car
You can even list your car on some auto rental apps to earn money. If you don’t mind the additional wear and tear on your car—or the idea of other folks driving it—this could be a good way to make your car work for you. Just be sure to check with your car insurance provider to see if you need to carry additional coverage before booking your first renter.
What can you do with your additional funds?
Wondering what to do with the extra cash you earn from implementing side hustle ideas and passive income ideas is a great problem to have. But what are your options? Sometimes, you’ll want to reinvest in a side hustle (like upgrading the ties in a car you use for ride-share driving) or in a passive income strategy (such as painting the walls of your rental property).
Often, you’ll need a safe place to store your money that will still give you a generous return so that it keeps growing until you know what to do with it. Here are some low-risk options that can deliver growth on your additional cash:
Savings accounts
Savings accounts can provide a safe place to put your extra cash as long as you’re depositing your funds at an FDIC-insured institution. The interest your deposits earn can also be a source of portfolio income, which can include interest, dividends, and capital gains on investments.
CDs
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A CD, or certificate of deposit, is similar to a standard savings account but with one key difference: CDs tend to have higher interest rates, which means they can also provide portfolio income. As a tradeoff, you’re expected to leave the money in the account for a specific amount of time, and there’s often a fee for early withdrawal. It helps to know how CDs work to get the most out of them.
Money market accounts
Money market accounts are similar to CDs in that they offer greater returns in exchange for restrictions. You won’t need to wait multiple years to withdraw your funds from a money market account, but there likely will be a limit on how often you can withdraw funds, and you might need to maintain a minimum required balance amount.
Retirement accounts
Certain jobs will offer retirement accounts, like 401(k) plans, as a benefit of employment. Whether you have a 401(k) plan or not, you can open up an individual retirement account, known as an IRA—either a traditional IRA or a Roth IRA. The primary difference has to do with when you pay taxes on the money in the account. For a traditional IRA, you pay taxes when you withdraw funds from the account. For a Roth IRA, you pay taxes on the money as it’s put into the account. For either, you may have to pay a fee if you withdraw your money before retirement. Always check with your plan provider for specific rules and fees related to early withdrawals.
There are even more choices to make. For example, you might consider an IRA CD in addition to an IRA Savings Account. IRA CDs function just like other CDs but are intended to build up funds for after you’ve finished working. It could be worth speaking with a retirement planning professional to establish a personal saving strategy.
How can you benefit from side hustles and passive income?
Both side hustles and passive income can add financial comfort and confidence.
Has this tour through passive income and side hustle ideas inspired you to pursue additional income streams to boost your finances? Whether you start a side business or just pick up some gigs via an app, extra income sources paired with passive income streams can be a game-changer for your financial health.
Looking to maximize your financial health? Try using a financial checklist to see how you’re tracking against your financial goals.
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1 The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates. For specific advice about your unique circumstances, you may wish to consult a qualified professional, at your expense.
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Could logging in to your computer from a deluxe treehouse off the coast of Belize be the future of work? Maybe. For many, “freelance” means flexibility, meaningful tasks, and better work-life balance.
Who doesn’t want to create their own hours, love what they do, and work from wherever they want? Freelancing can provide all of that—but that freedom can quickly vanish if you don’t know how to manage finances as a freelancer.
“A lot of the time, you don’t know about these expenses until you are in the trenches,” says Alyssa Goulet, a freelance copywriter. “And that can wreak havoc on your financial situation.”
Some workers may choose to work in a freelance capacity hoping to increase their savings and their feelings of self-sufficiency. But for all its virtues, the cost of going freelance can carry some serious sticker shock.
Most people who freelance for the first time don’t realize that everything—from taxes to business software to retirement planning—is on them. Learning how to manage your finances as a freelancer early on will help set you up for success.
The key to budgeting as a freelancer is to plan for five expenses: taxes, business expenses such as your workspace and tools, health insurance, retirement savings, and general business costs.
1. Taxes for freelancers and the self-employed
First things first: Don’t try to be a hero. When determining how to budget and manage your taxes as a freelancer, you’ll want to consult a financial advisor or tax professional for guidance. A tax expert can help you determine what makes sense for your personal and professional situation and provide financial advice to help you build your freelance business.
For instance, just like regular employees, freelancers owe federal income taxes, as well as Social Security and Medicare taxes. When you’re employed by an organization, you and your employer each pay half of these taxes on your income, according to the IRS. But when you’re self-employed (earning more than $400 a year in net income), you’re expected to file and pay these taxes yourself, the IRS says. And if you think you’ll owe more than $1,000 in taxes for a given year, you may need to pay quarterly taxes.
That can feel like a heavy hit when you’re not used to planning for these costs. “If you’ve been on a salary, you don’t think about taxes really,” says Susan Lee, CFP®, a tax preparer and founder of a website that provides tax information for freelancers. “You think about the take-home pay. With freelance, everything is take-home pay.”
Estimating what you’ll owe
Once you determine how often you’ll need to file taxes, Lee recommends doing a “dummy return,” which is an estimation of your annual self-employment income and expenses. You can come up with this number by looking at past assignments, industry standards, and future projections for your work—which Goulet also finds valuable.
Then, use that number to refine your estimate. “I determine the tax bracket I’m most likely to fall into by taking my projected monthly income and multiplying it by 12,” Goulet says. “If I experience a big income jump because of a new contract, I redo that calculation.”
Budgeting for what you’ll owe
After you estimate your income, you can determine how much money to set aside for your tax payments. Lee recommends saving around 25% of your income to pay your income tax and a self-employment tax (which funds your Medicare and Social Security). Once you subtract your business expenses from your freelance income, however, you may not need to pay that entire amount, according to Lee.
Adjust your estimates often—and always round up. “Let’s say, in one month, a freelancer determines she would owe $1,400 in tax. I’d put away $1,500,” Goulet says.
2. Business expenses for freelancers: Get a handle on two big deductions
For freelancers, tax deductions can yield big savings—if you know where to look for them. From the mileage you log between appointments to supplies for your home office to fees for coworking spaces, many freelance business expenses may be deductible, according to Lee.
The costs of freelancing vary from person to person. Some freelancers are happy to work from their kitchen tables, while others require a sophisticated (read: expensive) setup. Your freelance expenses will also change as you add new tools to your business arsenal.
Here are two budget categories you’ll need to account for as a freelancer:
Renting or furnishing your workspace
Joining a coworking space can help you establish the camaraderie you might miss when working at home alone. Yet these workspaces may charge membership dues, ranging from $20 for a day pass to hundreds of dollars per month for a dedicated desk or private office—something to consider when you’re calculating the cost of freelancing.
Coworking spaces may be all the rage, but you can still rent a traditional office space for several hundred dollars a month or more. However, this fee usually doesn’t include networking events or other membership perks like food and drink.
If you want to avoid office rent or dues but don’t want the kitchen table to pull double duty as your workspace, you might convert another room in your home into an office. When planning a home office on a budget, all it takes is a little creativity and know-how to create a functional, productive workspace.
Amy Hardison, a freelance copywriter and content strategist, retrofitted part of her house into a simple office. “I got a standing desk, a keyboard, one of those adjustable stands for my computer, and a squishy mat to stand on so my feet don’t hurt,” Hardison says.
Start with the absolute necessities. When Hardison launched her freelance career, she purchased a laptop for $299 and worked out of a coworking space—using its office supplies before creating her own workspace at home.
Going digital: freelancing business tools
There are a range of digital tools, including business and accounting software, that can assist with the majority of your business functions. These digital tools for freelancers can save you valuable time, which you can then invest back into growing and marketing your business.
The right business software can also help you avoid financial lapses as you grapple with how to manage finances as a freelancer. Hardison’s freelance business had ramped up to a point where a manual process was costing her money, so using invoicing software became a no-brainer.
“I was sending people attached document invoices for a while and keeping track of them in a spreadsheet,” Hardison says. “And then I lost a few of them, and I just thought, ‘Oh, my God, I can’t be losing things. This is my income!’”
You might use digital business and software tools to help manage scheduling, web hosting, accounting, audio/video conferences, and other business operations. When you’re determining how to budget as a freelancer, remember that the costs for these services depend largely on your needs.
For instance, several invoicing platforms offer options for as low as $9 per month, though the cost increases the more clients you add to your account. Accounting services also scale up based on the features you want and how many clients you’re tracking, though you can find reputable platforms that cost as little as $5 per month.
If you sign up for a business or accounting software platform, start with the “freemium” version, where the first tier of service is always free, Hardison says. Once you have enough clients to warrant the expense, upgrade to the paid level with the lowest cost. Gradually adding services will keep your expenses proportionate to your income.
3. Health insurance for freelancers: Harness an inevitable cost
Saving for healthcare costs can be one of the biggest hurdles to self-employment and successfully learning how to manage finances as a freelancer. In 2024, the average monthly premium under the Affordable Care Act (ACA)—for those who do not receive discounts due to qualifying income—was $469 for a 40-year-old individual and $1,491 for families of four, according to Forbes.
“Buying insurance is really protecting against that catastrophic event that is not likely to happen. But if it does, it could throw everything else in your plan into a complete tailspin,” says Stephen Gunter, CFP®, a financial advisor at a wealth management firm.
Speak with an insurance advisor who can help you determine which plans are best for your health needs—and your budget. An advisor may be willing to offer a free consultation so you can gather important information before making a financial commitment.
4. Retirement savings for the self-employed: Learn to “set it and forget it”
Part of learning how to budget as a freelancer is thinking long-term, which includes estimating retirement expenses. That may seem daunting when you’re navigating new business expenses, but saving for retirement is a big part of budgeting when you’re self-employed, Gunter says.
“It’s kind of the miracle of compound interest,” Gunter says. “The sooner we can get it invested, the sooner we can get it saving.”
His freelance money management tip? Set aside whatever you would have contributed to an employer’s 401(k) plan and put it on autopilot. One way to do this might be to set up an automatic transfer from your primary checking account to your savings or retirement account.
“So, if you would have put in 3% [of your income] each month, commit to saving that 3% on your own,” Gunter says. The Discover® IRA Certificate of Deposit (IRA CD) could be a good fit for helping you enjoy guaranteed returns in retirement by contributing after-tax (Roth IRA CD) or pre-tax (Traditional IRA CD) dollars from your income now.
Prioritize retirement savings every month, not just when you feel flush. “Saying, ‘I’ll save whatever is left over’ isn’t a savings plan because whatever is left over at the end of the month is usually zero,” Gunter says.
5. General business expenses: Update your rates to cover them
With time, you’ll likely find that one of the best financial tips for freelancers is to build your costs into what you charge. “As I’ve discovered more business expenses, I definitely take those into account as I’m determining what my rates are,” Goulet says.
She notes that freelancers sometimes feel guilty for building business costs into their rates, especially when they’re worried about the fees they charge to begin with. But working these costs into your rates is essential to sustainable money management—and building a thriving freelance career.
Your expenses will change over time, so reevaluate the rates you charge annually. It’s also wise to do quarterly and yearly check-ins to assess your income and costs and see if there are any processes you can automate to save time and money.
Knowing how to manage finances as a freelancer is the key to a successful career
When you understand how to manage finances as a freelancer—effectively accounting for the costs of being self-employed—you can build the foundation of a long (and, with luck, lucrative) freelance career. From planning for taxes to saving for retirement, smart money management can provide you with much-needed financial stability and peace of mind if and when you decide to strike out on your own.
“There are many hats you have to wear and expenses you have to take on,” Goulet says. “But for that, you’re gaining a lot of opportunity and flexibility in your life.”
Working as a freelancer has its benefits, but it also means your pay can fluctuate from month to month. If you want to be even more prepared for freelance money management, then find out how to make a budget when you have an irregular income.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. Please consult your tax advisor with respect to information contained in this article and how it relates to you.
When you need help putting together a solid plan for your money, you might seek out financial consulting services. A financial consultant can offer advice and guidance on things like investing, retirement planning, and building wealth. You may also hear financial consultants referred to as financial advisors, as the terms are often used interchangeably, though there may be some slight differences.
What is financial consulting designed to do? In simple terms, it’s all about helping clients formulate a strategy for managing their money. What working with a personal finance consultant looks like for you can depend on your situation and goals.
Key Points
• Broadly speaking, financial consultants help clients identify strategies to help them reach financial goals.
• Services offered by financial consultants may include investment management, estate planning, tax planning, and retirement planning, among others.
• Financial consultants and financial advisors may hold certificates or designations that reflect advanced training, such as Certified Financial Planner (CFP) or Accredited Financial Planner (AFP).
• Choosing the right consultant requires evaluating the scope of services they offer, their professional certifications and designations, their fee structure, and more.
What Is a Financial Consultant?
Broadly speaking, a financial consultant is someone who offers advice about money – be it retirement planning or buying stocks or other securities – in a professional capacity. A financial consultant may work independently or be employed by a financial consulting firm, and they may offer services online or in-person.
Examples of Financial Consulting Services
Financial consultants can offer a variety of services to their clients. Again, those clients may be individual investors, business owners, or even a non-profit organization. The types of services a financial consultant may offer can include:
• Basic financial planning, such as creating a household budget
• Estate planning
• Tax planning and legacy planning
• Retirement planning
• College planning
• Succession planning for clients who own a business
A financial consultant’s overall goal is to help clients create a comprehensive plan for managing their money. Financial consultants may work with a diverse mix of clients, or niche down to offer their services to a specific demographic or client base, such as dual income couples, with no kids or members of the LGBTQ community.
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Financial Consultants vs. Financial Advisors
The terms “financial consultant” and “financial advisor” are often used interchangeably, as their meaning is roughly, but not quite, the same. There are some important differences, including the licensure that each is required to hold in order to practice, and the regulators each operates under. Generally, they both offer financial advice and guidance in a professional capacity, though.
Other Names for Financial Professionals
Financial consultants and financial advisors can go by more specific names, depending on which professional certifications they hold. Certifications and designations signify that a consultant or advisor has completed advanced training and education in a particular area. Here are some of the most common designations for financial professionals:
• Certified Financial Planner (CFP®)
• Chartered Financial Consultant (ChFC)
• Certified Public Accountant (CPA)
• Accredited Financial Planner (AFP)
• Registered Investment Advisor (RIA)
• Certified Annuity Advisor (CAA)
• Certified Financial Consultant (CFC)
• Certified Tax Advisor (CTA)
• Chartered Financial Manager (ChFM)
Navigating the alphabet soup of designations for financial consulting services can be confusing and it helps to understand what type of advice you need.
For instance, if you want to work with an advisor who can help with everything from budgeting to retirement planning, then you might choose a Certified Financial Planner. On the other hand, you might want to work with a registered investment advisor if you’re specifically seeking investment help.
The main thing to know about financial consulting services is that there’s more than one option to choose from. Taking time to research a consultant or advisor’s background and qualifications can make it easier to find the right person to work with when you need consulting services.
When Would You Need Financial Consulting?
Working with a financial consultant is a personal decision. With that in mind, you might start working with a consultant at any time if you feel that you need help managing your finances. If you need more specific examples of when it makes sense to hire a financial consultant, here are a few scenarios to consider:
• Your parents pass away, leaving you $500,000 in assets. You might work with a financial consultant to figure out the best way to maximize your inheritance while minimizing taxes.
• After 15 years of marriage, you and your spouse have decided to divorce. You decide to hire a financial consultant to help you create a plan for managing the assets that you’re leaving the marriage with.
• You’re a parent to a child with special needs who will require long-term care after you’re gone. You reach out to a financial consultant to discuss setting up a trust to pay for their care when the time comes.
Financial consulting services can be an appropriate choice when you have a difficult financial decision to make or you’re trying to navigate a situation that feels overwhelming. Winning the lottery, for instance, could leave you paralyzed with indecision about what to do with the money.
A financial consultant can also help you move through changing life stages. That can include getting married or divorced, having a child, starting or selling a business, or changing careers. Financial consultants can look at the bigger financial picture to help you get through the changes while keeping your long and short-term goals in sight.
Finding the Right Financial Consultant
Finding a financial advisor starts with taking inventory of your needs to determine what kind of advice is appropriate. Once you’ve figured out what kind of help you need, the next step is creating a list of advisors in your area that you might want to work with.
Asking questions can help you get a feel for how an advisor operates. Here are some examples of the types of questions you might want to ask:
• What kind of financial consulting services do you offer?
• Do you hold any professional certifications or designations?
• Do you specialize in working with a particular type of client?
• What is your investment style?
• How are your fees structured and what do you charge for consulting?
• What is your preferred method of communication?
• How often will we meet?
If you’re considering a robo-advisor, then it may be a good idea to look at how the platform manages portfolios, what benefits or features are included, and what you’ll pay for consulting services. Should you choose a robo-advisor vs. financial advisor? There are some pros and cons to consider.
On the pro side, a robo-advisor can be a less expensive way to get financial consulting services. The typical financial advisor cost is around 1% of assets under management per year. Robo-advisors may cost much less, with some offering services charging a fraction of what a human advisor would.
Of course, there’s a trade-off to consider, since you’re not getting financial advice with a human element behind it. For instance, if market volatility sets in and you’re tempted to sell off stocks in a panic, a robo-advisor wouldn’t be able to talk you through it the way a human advisor could. Taking that into consideration can help you decide which one might be right for you.
The Takeaway
A financial consultant’s job is to help you feel more secure and confident when making decisions about your money. Whether you need a consultant’s services or not can depend on where you are financially right now and where you want to go in the future.
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FAQ
Is a financial consultant the same as a financial advisor?
Financial consulting and financial advisory services are typically grouped together, as they generally mean the same thing. A financial consultant or a financial advisor can provide advice about things like investing, retirement planning, and estate planning. The difference is that consultants may offer their services on a one-time basis, while financial advisors may work with clients long-term.
What does a financial consultant cost?
What you’ll pay for financial consulting services can depend largely on the type of professional you’re working with. A typical financial advisor’s fee is around 1% annually, though it’s possible to pay more or less, depending on the kind of services you receive. Robo-advisor financial consulting can cost less, though it does lack the human element.
What does a financial consultant do?
Financial consultants help their clients create a plan for managing money. A financial consultant may work with individual investors, businesses, or organizations to offer financial advice. Financial consulting services may cover a broad scope of topics or concentrate in just one or two areas of financial planning.
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Creating a serene nursery for your little one can make a world of difference when it comes to optimizing your child’s sleep. With the right elements in place, you can foster an environment that promotes restful nights and happy days. So whether you’re welcoming a new baby to your apartment in Boston, moving to a rental home in Baltimore, or upgrading your toddler’s room at your home in Seattle, here’s how to set up a nursery room to promote sleep, from our sleep and home design experts.
Sleep environment is key
While there are many factors that can impact your child’s quality of sleep, two essential elements to the perfect sleep environment are a calm and peaceful space for them to rest at night and during nap times. Child sleep expert Charmian Mead from The Sleeping Baby Routine shares more information about how to set up a nursery room for sleep below:
“To encourage independent and positive sleep habits, it’s essential to create a calm and peaceful sleep environment for your newborn, baby, or toddler. As your baby grows they require a slightly different approach and adjustment to their environment but regardless of age, light, temperature, and calm are key to indicate sleep. Your baby’s or toddler’s room should be a sanctuary, a safe, comfortable place to settle. While an infant’s overall routine hugely influences their sleep, the sleep environment is the finishing touch that provides the security they need to relax and rest.”
We all want our children to have positive sleep experiences. So when planning out how to set up a nursery room, being mindful of the above advice can aid in ensuring that your child has consistent, restful sleep while in your home!
Be mindful of temperature and darkness
As Charmian noted above, room temperature and lighting (or lack of lighting) play a crucial role in optimizing your child’s sleep. While preferences may vary by individual, our experts have shared some amazing tips to help optimize temperature and lighting to aid in getting a great night’s sleep: “Infants and children thrive on routines and consistency, especially with sleep. The ideal environment is 68-72 degrees, completely dark, with white noise playing. Another key is a consistent routine leading up to bedtime. For more information or help getting your infant or child sleeping better, Lisa at Sleepytime Sleep Consulting has got you covered.” Shared Lisa Rietzke, RN, BSN.
Maintaining an appropriate temperature in your child’s nursery is important for their comfort and safety, however, it is sometimes easier said than done – especially during colder months. Katie from Slumber & Sproutsuggests “the use of sleeping bags / sleepsuits for little ones who aren’t yet in a bed because they are a great way to ensure that you have dressed your little one appropriately for sleeping. A comfortable room temperature is between 19-22 degrees Celsius. In the winter we recommend that you warm the room with a safe heater and keep the heater a safe distance from the sleep space to avoid overheating.”
Xan Coffman, founder and certified infant and toddler sleep expert at My Baby Sleepology also shared some great insights on the effect of proper lighting for your child’s nursery, stating that “Creating the perfect sleep environment for your baby is key to fostering restful nights and naps. Start by keeping the room dark with blackout curtains to block any outside light, helping your baby understand that it’s time for sleep and to elevate their natural levels of melatonin.
White noise machines or a gentle fan can work wonders by masking household sounds and creating a soothing atmosphere.”
Consider using white noise machines
As Xan mentioned above, white noise machines can be a game changer for child sleep. They help drown out household noises and create a consistent sound environment that can comfort babies. Katie from Slumber & Sprout also provided great information on the best techniques for noise control:
“We recommend the use of continuous white noise throughout the entire night and for all naps. Babies are used to noise. The womb is as loud as a vacuum cleaner, so to a baby, the sound of white noise is very soothing. We recommend using it at safe volumes of no louder than 50Db and positioned at least 2 meters away from your baby’s sleep space. You can download an app called “dB Meter” to test the dB level. As babies get older, the use of white noise is soothing but it’s also helpful in filtering out any noise disturbances (creaky floorboards, morning work alarms, dogs barking, traffic, etc.).”
Look for machines with adjustable volume settings and various sound options, such as ocean waves or gentle rain. You should also consider soundproofing options to promote a peaceful environment. Rugs and fabric wall hangings can be used to absorb sound, and door sweeps and weather stripping to block outside noise.
Safe bedding and mattress selection
Choosing the right bedding is vital to creating the perfect sleeping environment for your child. The team at Rockabye Rockies shared that “For babies ages 0-12 months old a safe sleep environment is critical for their safety and wellbeing. A crib with a firm mattress and no pillows, bumpers, stuffed animals, or cords nearby will prevent strangulation and suffocation.” With infants being especially vulnerable to safety concerns that arise with certain types of sleeping environments, ensure that you remain mindful and hyper-vigilant when creating their nursery!
Seemingly small factors can make a significant difference in your baby’s sleep. Dr. Summer Hartman from Newborn Sleep Company expresses that “Designing a newborn’s nursery with the perfect sleep environment is important for healthy development. To create a peaceful atmosphere, opt for soft, neutral colors, and a red night light and invest in a comfortable crib mattress.
I recommend Newton Mattress, Swaddle (Miracle Blanket), and using brown noise machines to mask external sounds. Consider placing the crib away from windows and doors to minimize disturbances. Using a firm, flat mattress that fits snugly in the crib to prevent any gaps and sticking with fitted sheets made of breathable materials creates a safe environment for your child. We also suggest reading reviews and choosing reputable brands that prioritize the safety of your little one.”
Use night lights to help your child sleep
As several of our stellar experts have mentioned above, investing in noise machines and night lights can make a big difference in figuring out how to set up a nursery room for your child’s sleep. “For older children ages 2+, I recommend adding a low voltage red or orange-hued nightlight to their bedroom. Developmentally, their imagination begins to introduce ideas like ghosts in the corner and monsters in the closet, so allowing them to see around the room after lights out can help alleviate these fears,” shared the team at Rockabye Rockies.
Khadijah from My Night Light elaborated on the use of night lights, adding that “Fear of the dark is one of the main reasons children often feel anxious at bedtime, especially when transitioning to sleeping on their own.
Creating a comforting atmosphere, including a warm light, can foster positive sleep experiences. Sleep specialists recommend using red light at night because it doesn’t disrupt sleep hormones like bright, blue-white lights can. This makes Duski Night Lights an excellent choice for parents who want to create a calm, secure environment that encourages restful sleep for their little ones.” It’s also helpful to note that night lights can provide a gentle glow, making nighttime feedings and diaper changes easier without fully waking your baby.”
Establish a sleep routine
While the room environment cannot be discounted when exploring how to set up a nursery room to optimize your child’s sleep, consistency is also vital. Establishing a sleep routine that follows the same steps each night is key to signaling to your baby that it’s time to wind down.
Dr. Aubrie, founder of Sleepfull Baby suggests that you “avoid screens, bright lights, and overstimulation before bed, and try to stick to a regular, early bedtime. Including a consistent bedtime routine is also essential in establishing healthy sleep habits over time. A warm bath, a gentle massage, stories, or lullabies are all you need to help signal that it’s time to sleep. The perfect sleep environment is safe, cozy, and promotes restorative sleep.”
Photo courtesy of @thesleepingbabyroutine
If you are looking for help establishing a consistent routine for your child, Charmian Mead from The Sleeping Baby Routine also recommended a great routine that will help aid consistency as your child grows and their needs evolve:
“On the 7 pm to 7 am Sleeping Baby Routine, the ideal sleep setup evolves as your child moves from newborn to toddler.
0-3 months: Create a quiet, dark bedroom, and use a sleep position in which you swaddle your infant and tuck them into a Moses basket or crib with a cellular blanket. Ensure that the room temperature is 18-21 degrees Celsius.
4-8 months: Maintain a quiet and blacked-out bedroom, alter their sleeping position to a sleeping bag in a cot, and keep the room temperature between 18-21 degrees Celsius.
8 months – 2 years: Ensure a quiet room and draw the curtains. Place your child in a sleeping bag and comforter to settle for the night. It’s recommended to introduce a nightlight or wake-up clock at 2 years of age.”
Establishing a good sleep environment helps ensure deep, uninterrupted sleep, making settling easier — and as they say, “sleep breeds sleep.” Consistency in routine is no easy feat, but putting effort into a set sleep routine will set your child up for sleep success as they grow and develop!
Improve your child’s sleep in a family bedroom
While it may be a dream of yours to create a solo sleep space for your child, sometimes children (through necessity or preference) will find themselves sleeping with you. Below Tiffany Belanger, a safe cosleeping educator from the Cosleepy blog, has great tips to make cosleeping safe and rewarding:
“If you have a young child who sleeps better when they’re in your bedroom, my advice is to go with it! Move clutter and nonessentials out of the room to create a calm, comfortable “family bedroom” that maximizes sleep for everyone in the family. You’ll want a big, firm mattress to support your little one’s growing body. If you put it directly on the ground, you’ll enjoy cooler air throughout the night and you won’t have to worry about anyone falling off the bed. Enjoy your giant nest, if you can, because this is a temporary season of life! Your little one will be big, and in their own bedroom, in the blink of an eye.”
Regardless of your child’s sleeping situation, safety should always be the top priority. Don’t fret if your child prefers to sleep with you, enjoy the time while it lasts and achieve a safe environment using the simple tips above.
How to set up a nursery room for sleep: in a nutshell
Improving your child’s sleep involves thoughtful attention to various factors, from temperature and lighting to safety and organization. By creating a cozy and calming environment, you can help your little one enjoy the restful nights and peaceful days that both you and your child deserve.
Creating a coffee bar at home is a great way to elevate your daily coffee experience and add a personal touch to your kitchen or living space, even in a rental. Whether you’re renting a home in Portland, OR, buying a home in Burlington, VT, or searching for an apartment in New York City, NY, having a dedicated space for your coffee essentials can transform your morning routine into a more enjoyable and relaxing ritual. From the smell of freshly brewed coffee to the convenience of having all your favorite beans, mugs, and brewing equipment within reach, a home coffee station is a perfect blend of function and style.
Designing a coffee bar at home that suits your taste involves considering things like space, equipment, and aesthetics. With a little planning, you can create a coffee corner that reflects your personal style while ensuring you have everything you need to craft the perfect cup. With tips from experts in the coffee and home design fields, we’ll show you step-by-step how to create an at-home coffee bar that caters to your unique needs and enhances your home coffee experience.
1. Figure out your space
When planning a coffee bar at home, the first step is determining the best spot for it. “Creating a space that suits how you want to make coffee and is enjoyable to use is the best way to grow your love of creating the perfect-tasting coffee at home,” shares Toby, the coffee expert behind Coffee with Conscience.
The good news is that you don’t need a large area to create a functional and stylish coffee setup. Whether you have an entire countertop to dedicate or just a small corner to spare, the key is to work with what you have.
Counter top vs coffee cart
“Creating the perfect home coffee station is all about thoughtful organization and quality essentials,” advises Brigette Romanek, interior designer and blogger at HomeDecorFull. “Start with a dedicated counter space near an outlet, using a small shelf or cart if space is limited.”
Whether you’re passionate about having a variety of brewing equipment on display or just tight on counter space, “Consider using a rolling cart for a flexible coffee station that can move around your space,” recommends blogger Gina Dickson of Intentional Hospitality, a blog providing tips and advice on hosting at home.
Stick to the essentials
Once you’ve identified the perfect spot for your home coffee bar, consider the flow of your daily routine and the accessibility of your coffee essentials. “Keep your most-used items within easy reach, arranging them by workflow (like grinder, filter, brewer, then cups),” recommends Romanek from HomeDecorFull.
No matter the size of the space, the goal is to make your at-home coffee bar an organized, inviting spot that streamlines your coffee-making process. “Avoid cluttering your coffee space with unnecessary gadgets,” shares Matthew Barry, roaster and owner of Ember Coffee Co. in Big Lake, MN. “Ensure that at least half of your setup has open space for cup placement; keeping it clean and minimal makes it easy to stay organized while showing off your beautiful setup.”
Image by Bruvi
Compact is key
A minimalist setup not only saves space but also keeps your area looking tidy and visually open.
“When space is at a premium, I like to opt for compact brewers that don’t require much counter space,” suggests Jon Clark from the Nomad Coffee Club, a premium coffee bean subscription service.
“Even space-challenged coffee lovers can set up a coffee bar,” agrees Diane Kuyoomjian at Bruvi, one of the freshest and most versatile pod coffee brewers on the scene. “Whether you use a kitchen counter or a free standing cart, a versatile single-serve brewer that makes both coffee and espresso will provide all the barista vibes in a small footprint.”
Maximize a small space
In small spaces, every inch counts, so keep your coffee bar clutter-free by sticking to the essentials and storing extras out of sight. “Maximize vertical storage with stackable storage canisters for beans and accessories, while a small tray beneath your equipment protects surfaces and keeps everything tidy,” says Robert Gomez from Kaffe Products, a company where you can find all the essentials for coffee at home.
Even the smallest corner, windowsill, or unused wall can be transformed into a functional coffee station with the right organization. “A wall-mounted shelf or a pegboard and stackable storage containers can add an aesthetic backdrop for your coffee bar while also providing storage for beans, reusable filters and coffee scoops,” recommends the team at Nomad Coffee Club.
2. Choose home brewing equipment for your coffee bar at home
After you figure out your space, the next step to creating your coffee bar at home is in choosing the right equipment to get the job done. The type of coffee brewer you should choose for your home coffee setup largely depends on what kind of coffee you like to drink, the amount of space you have, and of course, personal preference.
“It may sound simple, but there’s no point in spending hundreds of dollars on a shiny espresso machine if it just collects dust once the novelty wears off,” shares Toby of Coffee With Conscience. “Good coffee is about the taste as much as the art of creation.”
“As a passionate home brewer, it’s easy to get caught up in buying every new device,” confides Syeh Naveed, the face behind the blog The Need for Coffee. “While fancy equipment can be tempting, if your brewing space isn’t clean and organized, it detracts from the experience. And worst of all, having too many brewers can lead to decision fatigue.”
Naveed suggests simplifying your home coffee setup by sticking to one or two devices, helping to keep things simple while still maintaining your options. Your home coffee bar might have multiple coffee contraptions, but make sure they are each serving a distinct purpose, focusing on the following brewing methods.
Pour-over
Pour-over coffee is a hands-on brewing method that gives you more control over how your coffee turns out, letting you really bring out the unique flavors of the beans. You simply pour hot water slowly and evenly over ground coffee in a filter, which results in a clean, smooth cup with lots of depth. Since you can tweak things like the water temperature, grind size, and how you pour, it’s perfect for anyone who loves experimenting to create their ideal brew. Plus, it’s simple and has a nice, relaxing ritual to it, which makes it a go-to for many coffee lovers.
“You don’t need a ton of fancy gear to brew amazing coffee at home – just stick to what makes you happy,” suggests Alejo Galindo, one half of the duo at friendly coffee resource The Coffee Nerds. “A glass flask style brewer is a solid choice for manual pour-overs and easy to store when not in use. Just make sure to have a decent grinder and a water kettle for best results.”
Handheld presses, plungers, and stovetop espresso
Handheld tools, like portable espresso makers, manual presses, or stovetop brewers, are a great option for coffee lovers who want to enjoy stronger coffee on the go, in small spaces, or on a budget. These compact devices use manual pressure to brew rich, concentrated coffee without needing a bulky machine. While they require a bit more effort compared to automatic machines, they offer tasty results and the flexibility to brew anywhere, whether you’re at home, traveling, or camping.
“If you love espresso and are short on space, a manual coffee press will take your love for coffee out of this world. Easy to use and easy to clean this brewer provides a fantastic concentrated coffee with a unique design and consistent results,” shares Matt Milletto, owner of classic Portland, OR roaster, Water Avenue Coffee.
“Handheld espresso makers are perfect for espresso-based drinks without taking up any counter space,” Galindo agrees.
Another recommendation comes from the experts at Pawling Coffee Roasters in Pawling, NY. “A plunger-style coffee device is ideal because it brews high-quality coffee without taking up much space. Once you gauge how much coffee you use per batch, you can eyeball it going forward. As long as your setup is organized, it looks great and lets you focus on what really matters: the delicious taste and aroma of freshly brewed coffee.”
Jim D’Andrea from Maker’s Coffee Company adds, “Brewers like these fit any kitchen and produce amazing results. An electric kettle adds a simple way of heating water to ideal brewing temperatures which makes a huge difference in taste.”
Automatic machines
Home coffee machines are a great investment for coffee lovers who want to enjoy cafe-quality brews right from their kitchen. These machines come in various types, ranging from manual and semi-automatic to fully automatic and super-automatic models, each offering different levels of control over the brewing process.
“When creating your home coffee station, there are many options,” agrees Home Coffee Tips author Ben Farrer, a trusted source for many types of brewing equipment. “For something modern, easy to use and space-saving, I would recommend a pod machine for convenient espresso. If you want to take it to the next level, I advise a home espresso machine and an electric burr grinder.” To complement your espresso-making setup, Ferrer adds, “You can buy plenty of coffee brewing accessories to match your kitchen aesthetic, like wooden tampers and coffee mats.”
Drip coffee makers are another automated classic that give you an easy and consistent brew every morning. “My favorite drip coffee maker is my go-to for the best drip coffee every morning,” says Milletto from Water Avenue Coffee. “It’s compact, precise, and delivers 8 perfectly brewed cups, bringing the local coffee shop into your kitchen.”
“Treat yourself to a good espresso machine, steam pitcher, tamping mat, and knock box to elevate your coffee space,” adds Carol from decaf coffee provider based in Springdale, AR, Talking Crow Coffee Roasters.
“Finish off your coffee brewing setup with a scale,” Carol continues. A scale can be used for multiple different brewing methods to help find consistency by measuring the amount of coffee and water used in your brewing process, ensuring a more predictable cup every time.
As the professionals at Seattle-based Langskip Coffee suggest, experimenting with different brewing methods to find your ideal cup of coffee is one of the key steps to creating the perfect coffee bar at home.
3. Invest in a burr grinder
If you’re looking for the quickest way to elevate your home coffee experience, burr grinders are essential if you value consistency and control over the grind size of your coffee beans. Mindful consumption blogger Laura Yoder at Black Coffee Beautiful nods her head to the importance of a grinder, sharing, “A grinder gives renters an opportunity for high-end flavors, even if space is limited and the budget is tight.”
Unlike blade grinders, burr grinders use two abrasive surfaces (burrs) to crush coffee beans evenly, resulting in a more uniform grind that enhances the flavor and quality of the brew. “The biggest difference between average and great coffee is the quality of the grind, and a burr grinder delivers consistent results,” confirms Berry of Ember Coffee Co.
“Don’t skimp on your grinder while you splurge on your brewer – flip that around,” seconds Matt Boshart, owner and head roaster of Reboot Roasting located in Omaha, NE. “A high-quality burr grinder should be the focus of your home setup.”
4. Use good quality coffee beans
Whether you’re using a simple drip machine or an elaborate espresso setup, starting with quality coffee beans ensures that your brewing efforts result in the best possible taste, making every cup more tasty. “You don’t need a complicated setup for delicious coffee at home,” confides owner of Florida-based Coast to Coast Coffee, Matthew. “The two most effective tips to achieve coffee nirvana are to first, get your hands on freshly roasted beans. Second, grind them right before brewing.”
Keep your beans fresh
The freshness of the beans you’re using is important—treat coffee like an item with an expiration date, and don’t grind the beans until right before brewing for more flavor. To keep your beans staying fresh, Michelle Kaliher from the spooky themed roaster Sinister Coffee and Creamery in Portland, OR recommends storing your beans in an airtight container, away from light and heat. “Whether you prefer the bold richness of plunger coffee or the clean, smooth taste of a pour-over, this keeps the beans fresh and full of flavor,” Kaliher advises.
Try a coffee bean subscription
Coffee bean subscriptions are another way to ensure a steady supply of fresh, high-quality coffee delivered right to your door. Francesca from the Lux Cafe Club, a service that provides customers with high quality coffees, reminds that the key to a great home coffee experience is freshly roasted beans. A subscription service allows for delivery of premium coffee at intervals that suit your coffee habits, with a range of options allowing you to select your preferred roast level, grind size (or whole beans), and even specific flavor profiles.
Sample different flavor profiles
If you’re looking for a fan favorite, “Try a medium roast, which offers a bright and balanced flavor that everyone can enjoy,” says Claudia at Haymaker Coffee. By using high quality coffee beans in your daily coffee ritual, you can tailor your coffee experience to your taste preferences. Whether you enjoy light, fruity notes or deep, rich flavors, investing in quality coffee beans is essential for unlocking the full potential of your home coffee bar.
5. Keep your at-home coffee bar organized
As you develop your coffee bar at home, staying organized is crucial for both efficiency and aesthetics, ensuring that your space is easy to use and visually appealing. “If you want to create the perfect home coffee space, the best one is the one you’ll use,” advises Toby of Coffee with Conscience.
“Focus on keeping things simple with quality brewing equipment and smart storage solutions for your beans,” says Katie, author of motherhood and coffee blog KT Likes Coffee. “A clutter-free setup makes your morning coffee ritual smoother and more enjoyable.”
Tips and tools for an organized coffee bar
“Home coffee setups can take up quite a bit of counter space, especially if you dive deeper into the hobby,” confides Andrew Richter, founder and head roaster at New York-based Gotham Coffee Roasters. “My most recent coffee bar additions have been a mountable power strip to free up outlet clutter, and a dedicated paint brush to clean my messy grinder. Keeping a work area neat helps free up space whether you’re at home or in a professional shop.”
“Use space-saving organizers like hooks to hang your cups and dosing vials for your favorite specialty coffees,” adds Ember Coffee Co’s owner. “Efficiency is everything—plus, storing your beans in neat little vials helps you keep the space tidy and stylish.”
The professionals at Haymaker Coffee suggest keeping organized by using clear containers for your coffee and tools, making everything you need for making coffee at home easy to find. Clear, labeled jars not only help you quickly find what you need but also add a clean, decorative touch to your coffee bar.
By maintaining an organized home coffee station, you create a space that’s both functional and beautiful, making your coffee routine smoother and more enjoyable.
6. Let your coffee station be an expression of your style
As you develop your coffee bar at home, personal touches are what make a coffee station feel like it belongs in your space. Styling your coffee corner is an opportunity to have fun and express your creativity while making your coffee routine more enjoyable. “A plant or two, a jar of cinnamon sticks, and a cozy mug make the space feel warm and inviting,” affirms Lauren Dryer from the Scandi-inspired Langskip Coffee.
However, there are many ways to help your home coffee bar feel more personalized.
Image by Pottery with Eleni
Display unique mugs and drinkware
“The perfect home coffee station combines style and functionality, creating a cozy corner to elevate your daily ritual,” emphasizes Eleni, the potter behind Pottery by Eleni. “Start by adding a special touch with a handmade mug, offering both beauty and comfort with each sip. Complete the look with a cream and sugar set, a charming countertop accent that keeps essentials within easy reach while adding an artisanal flair to your space.”
Double-walled glass mugs also offer a stylish touch to your space while keeping your coffee at the perfect drinking temperature, and come recommended from the experts at Kaffe Products.
“Set out a coordinated set of mugs for a cohesive look,” agrees Diane from the pod machine company Bruvi. “Showcase your style with sugar and spoons in attractive containers like neutral ceramics or baskets on a small tray.”
Use decorative organization
“Our mantra is to minimize clutter but maximize style,” continues the coffee experts at Bruvi. “Clear glass or acrylic canisters don’t take up visual space but are a great way to display coffee pods.”
For easy clean-up and mess-free brewing, Nomad Coffee Club recommends adding a stylish coffee tray to minimize messy grinds or coffee stains on your countertops.
“Use a small, dedicated corner with floating shelves for easy access to mugs and coffee beans,” adds Gunnar Monson, the face behind Sasquatch Coffee in Oregon. “Keep your home coffee bar organized with labeled jars for beans and tools, making your morning brew as seamless as it is enjoyable.”
Add art and other personal touches
“Don’t be afraid to showcase your personality through quirky signs, vintage finds, or color schemes that speak to you,” advises Stephanie LeBlanc, author of the home styling blog Celebrated Nest. “Remember, your coffee bar should reflect your taste while still being practical – it’s all about making your daily brew feel special.”
“I love tying in personal touches,” agrees Maggie, the creator behind Coffee With Maggie and the early bird newsletter. “My coffee corner has a few plants, and features a custom painting my best friend, By Annie B., did of the cups from all my favorite coffee shops which ties the whole space together.”
Customize your space with renter-friendly style options
When creating a rental-friendly home coffee bar, it’s important to focus on styling options that won’t require permanent changes or damage to the space. “For personalization, go for renter-friendly options like peel-and-stick wallpaper or removable hooks to hang mugs or decor without damaging walls,” recommends hosting expert Gina Dickson of Intentional Hospitality.
You can also focus on the aesthetics of your brewing equipment to bring more style to your at-home coffee bar with practically no effort. “Your morning coffee sets the tone for the rest of your day, so regardless of your favorite brew method be sure to choose one or two products that are unique, expressive of your personality, and elevate your daily routine,” says Aby Henry, the owner of Portland’s Bridgetown Sparrow Ceramics. Artfully crafted, matching pour over and mug sets are one of Henry’s favorite ways to add flair to any home coffee bar.
Finish off your renter-friendly coffee space with colorful trays, baskets, or countertop organizers for an easy and aesthetic corner of your home.
Image by Bridgetown Sparrow Ceramics
Change up your home coffee bar to match the seasons
If you love to change things up in your home for each season, your home coffee bar is the perfect place to start celebrating. “Provide a functional and pretty space for your guests to enjoy a cup of coffee, starting with styling the space with seasonal decor items,” says country living blogger Lynn Langford with At Home in the Wildwood. “Risers and tier trays are perfect for decorating the area for the holidays or seasons. I also like to keep tea and hot cocoa supplies in the same area for those who might not be coffee lovers, but want a hot beverage.”
“Refreshing your coffee bar for each season is my favorite way to infuse personal style into our vintage farmhouse kitchen,” adds the author of Celebrated Nest. “I love expressing my style by swapping out mugs on a tiered tray or hanging seasonal wreaths – easily adaptable ideas for any space. The key is to keep your essentials in place and decorate around them with easily changeable pieces, allowing you to transform your coffee station from summer refresh to fall cozy without any permanent changes.”
Choose a color theme
Using color in your home coffee station is a fun way to add personality and vibrancy to the space while enhancing its overall aesthetic. Incorporate pops of color throughout for a more balanced look, or use color to highlight your coffee bar as a focal point in your home.
“I get the most compliments on our very pink to-go cup station. It includes matching cup sleeves adorned with our family monogram that I’ve designed and hand stamped, plus pink straws and hot coffee lids to match my iced/hot latte mood accordingly for the full custom cafe moment,” reveals lifestyle and home blogger Elle Wagner. “Our guests always get a huge kick out of how extra it is,” she laughs.
The key to personalizing your home coffee bar is to balance style and practicality, ensuring that your decorative elements don’t overwhelm the space but instead contribute to creating an organized, beautiful area that enhances your coffee-making experience.
7. Focus on technique for perfect coffee at home
The final step in elevating your at-home coffee bar is to make sure the coffee you’re making tastes great. If you’re getting the perfect flavor every time, you’ll be more inspired to use your home coffee station regularly.
Women-lead roasters Coroco Coffee Roaster Collective, based in Sycamore, IL, and Tostado Coffee Roasters in Portland, OR are powerful workhouses in the coffee space, and were happy to share the secrets to making coffee at home that mimic the professional cafe experience.
Image by Coroco Coffee Roasters Collective
Use filtered or distilled water
Water plays a crucial role in brewing coffee at home, as it makes up about 98% of your final cup and acts as the primary solvent to extract flavors from the coffee grounds. The quality of the water you use directly affects the taste and balance of your coffee.
“Use filtered water and keep your equipment clean to ensure each cup tastes fresh,” emphasizes Adriana Lopez, the woman behind Tostado Coffee Roasters. Filtered water can remove impurities like chlorine, which can give your coffee an off-flavor.
“Consider using distilled water combined with a mineral enhancer to create the ideal mineral profile for brewing,” shares Karen Weckerly, roaster and owner of Coroco. Too-soft or distilled water can result in a flat or dull taste, but certain minerals in water are needed to bring out the coffee’s full flavor profile.
Get your water temperature right
The temperature of your water also matters, with ideal brewing temperatures for any manual coffee being just off boiling, around 202°F, continues Weckerly. Water that’s too hot (above 205°F) can over-extract the coffee, leading to a bitter taste, while water that’s too cool (below 195°F) might under-extract, resulting in weak or sour flavors.
Use one part coffee to a higher amount of water
“Experiment with water-to-coffee ratios and brewing methods to find your ideal strength,” recommends Lopez.
“The golden ratio for coffee is 1:15 to 1:18 which means one part coffee to 15-18 parts water,” explains Weckerly. “This is perfect for a lot of brewing methods, including pour-overs, drip, and plungers.”
You can use a scale at first to get the hang of what this looks like, then as you get more comfortable, eyeball the amount of coffee and water you use each day for a truly seamless (and delicious) home coffee experience.
Pay attention to your grind size
Grind size is one of the most important factors in making great coffee at home, as it directly influences the overall flavor of your brew. The size of your coffee grounds determines how quickly water passes through them and extracts the flavors.
“A good double shot requires 17-20 grams of very finely ground coffee – think flour like consistency,” advises Weckerly.
A medium grind, with a texture resembling sand, works well for drip coffee makers and pour-over methods, balancing extraction time and flavor. For brewing methods like French press or cold brew, a coarse grind is ideal, as the slower brewing process requires larger grounds to prevent over-extraction and bitterness.
Lopez encourages home coffee enthusiasts to experiment with grind size and brewing methods to highlight the unique flavors of your favorite beans, giving you the best experience in your new home coffee bar.
Go forth and create your perfect coffee bar at home
“For some, at-home coffee bars are a simple budgeting hack—but for me, it’s truly a daily luxury that I miss when I’m traveling,” admits lifestyle and home blogger Elle Wagner. “The key to an iconic coffee bar is how custom you’re willing to make yours. Investing in the right coffee makers, stocking and importing my favorite beans, pods, syrups, and milks, and even matching everything to my favorite color just for fun has made all the difference to using my setup on the daily.”
As you start creating your own coffee bar at home, remember that it’s all about making the space your own. Whether you invest in high-end equipment or start with the essentials, make sure you craft a setup that enhances both your coffee experience and your living space. With a bit of inspiration and planning, your at-home coffee bar can become the perfect spot to fuel your day and indulge in your love for coffee.