For decades, Martha Stewart has been synonymous with elegant entertaining, sophisticated design, and delicious yet approachable cooking. As a lifestyle icon, she’s inspired millions with her carefully curated homes, signature recipes, and attention to detail, setting a high bar for domestic creativity. Now, with the release of her recent Netflix documentary, Martha, audiences get an even closer look at her journey, offering fresh insights into her unique vision and legacy.
From her classic American aesthetic to her effortless blend of elegance and practicality, there’s something in Martha’s world for everyone to emulate. Whether you’re a longtime fan or new to her style, this Rent. guide details Martha Stewart-inspired decor ideas to bring a touch of Martha magic to your home whether you’re looking at homes for sale in New York, NY, thinking about renting a home in Seal Harbor, ME, or looking for your first apartment in Westport, CT.
Martha Stewart’s rise to fame
Martha Stewart’s rise to fame began with her keen eye for aesthetics and a passion for homemaking. After working as a model and a Wall Street stockbroker, Martha transitioned into catering, where her attention to detail and knack for presentation quickly set her apart. In 1982, she published her first book, Entertaining, showcasing her unique approach to food and style, which soon caught the public’s attention.
This success led to a series of books, her own magazine (Martha Stewart Living), and eventually, a television show, solidifying her reputation as a lifestyle authority. Her approachable yet refined style, combined with her expertise in everything from cooking to gardening, made her a trusted source of inspiration for millions, helping to shape how people think about home decor, entertaining, and cooking. Through her media empire, Martha has built a legacy that continues to inspire people to make their everyday lives a little more beautiful.
“As a former editor at the Martha Stewart brand, I share a love for timeless décor — vintage-inspired dishware, neutral linens, and soft lighting. I also enjoy adding my own twist, incorporating vibrant colors or modern touches into the signature traditional Martha Stewart aesthetic. Her influence deeply shapes how I approach both cooking and entertaining, blending sophistication with ease and a transitional interior design. Both our brands emphasize that entertaining is an art — from the perfectly balanced menu to thoughtfully chosen centerpieces, tables, chairs, and ambiance — creating gatherings that are as beautiful as they are delicious.”
– Tara Bench with Tara Teaspoon
Bringing Martha’s design style to life
Martha’s blend of elegance and practicality proves that thoughtful touches can elevate any home. From beautiful tables to timeless colors, here are simple ways to bring her iconic style to life in your own space.
1. Incorporate classic neutrals and pastels in your decor
Martha’s design philosophy often embraces a refined color palette that feels fresh yet timeless. From her kitchens to her living rooms, soft whites, grays, and pastels create a serene atmosphere. Introduce these colors with paint, furniture upholstery, or small accent pieces. Neutral tones not only create a calming space but also provide a versatile backdrop for seasonal decor changes — something Martha always champions.
Tips for your home:
Consider re-painting a room in a soft, neutral color for a fresh, classic look.
Add pastel-colored throw pillows or blankets to your living room for subtle pops of color.
Select classic wood or white furniture that brings timeless charm to any space.
2. Perfect the art of table setting
One of Martha’s strengths is her ability to make any meal feel like a special occasion with her beautifully set tables. She emphasizes details like layered linens, elegant dishware, and polished cutlery, adding both beauty and intention to gatherings.
Tips for your home:
Invest in a versatile set of white or neutral dishes — they’re timeless and can be paired with any seasonal decor.
Try layering your table with a runner, placemats, and napkins for a more dimensional look.
Include a floral centerpiece or a few candles for a simple yet elegant touch.
3. Bring the garden indoors with fresh blooms and greenery
Martha’s passion for gardening is evident in her floral arrangements, which often include freshly picked blooms and greenery. Incorporating natural elements into your home instantly adds life and color to any room. Whether it’s a large bouquet or a single stem in a small vase, fresh flowers are a key aspect of Martha’s aesthetic.
Tips for your home:
Place a small arrangement of seasonal flowers in your entryway to greet guests with warmth.
Mix fresh flowers with greenery from your backyard or local florist for a more organic look.
If you lack space for gardening, consider low-maintenance indoor plants that bring similar vibrancy.
4. Curate your collection of timeless recipes
Martha’s influence on cooking is vast, with a repertoire that spans comforting classics to more adventurous dishes. Her approach often highlights fresh, seasonal ingredients and simple techniques that bring out the best in food. Build your own collection of tried-and-true recipes that speak to your personal tastes, just as Martha has done over the years.
Tips for your kitchen:
Create a recipe binder or digital collection of your favorite dishes and organize them by season or occasion.
Experiment with seasonal ingredients to keep your menu fresh and varied.
Embrace Martha’s “from scratch” approach, even if it’s just for one dish in a meal — it’s an easy way to elevate everyday cooking.
“While Martha Stewart wasn’t the first food blogger in the digital sense, she’s known as a visionary in the world of culinary and lifestyle content creation. Before the internet era, she pioneered a style of sharing recipes, entertaining tips, and homemaking advice through cookbooks, television, and her magazine Martha Stewart Living. In doing so, she created a comprehensive brand around food and lifestyle that laid the groundwork for the kind of personal storytelling, visual presentation, and recipe sharing that became standard in food blogging. So while Stewart didn’t start as a food blogger, her work directly inspired the evolution of food media, influencing many who became the first generation of food bloggers.”
– Mike Cleavenger, The Frizzled Leek
5. Pay attention to detail with personalized projects
Personalization is another area where Martha’s impact is profound. From homemade wreaths to customized place cards, she encourages people to make ordinary objects extraordinary through creativity. Personalized touches show thoughtfulness and make your space feel unique.
Tips for your home:
Try creating homemade decor items like holiday wreaths or hand-painted flowerpots.
Use fabric, ribbon, or paper to customize items around the house, like lampshades or napkin rings.
For a quick project, add monograms or small decorations to everyday items like towels or placemats for a custom feel.
“Personalized touches show thoughtfulness and make your space feel unique. Forget traditions and what Pinterest says interior design should look like, and design a space that you actually want to live in. A space that feels like you – reflects how formal or relaxed you are, how bold or traditional. Infuse your favorite things into shelving designs and art. If your space feels like you, then your guests will always remember that perfect feeling. We channel these same sentiments into the wedding designs that we create for our couples – being authentically YOU will always translate as right.”
– Elyse Jennings, Owner of Elyse Jennings Weddings
6. Embrace seasonal and holiday decor
Martha is known for her festive spirit, seamlessly incorporating seasonal themes into her decor. She finds ways to celebrate every season, making her home feel inviting and cozy year-round. You can create a similar atmosphere by switching up small decorative elements.
Tips for your home:
Display seasonal accents like pinecones in winter or seashells in summer to bring the season indoors.
Incorporate holiday-themed elements subtly — such as swapping out throw pillows or adding seasonal tableware.
For a festive atmosphere, decorate with a few handmade items, like a garland or wreath, that reflect your personal style.
Making Martha’s style your own
“Martha’s influence on young up-and-coming women, artists, and designers has been extraordinary. Martha has proven to all of us that you can make money with your creativity and talents your way and you can do it at any age. You can have failures and successes along the way but she has shown us that you must keep reinventing and expressing yourself your way! Take it from me…I made up my job and I get paid to play!”
– Wendy Baner, The Pipe Cleaner Lady
Martha Stewart’s influence lies not just in the beauty of her style but in her encouragement to make every element feel thoughtful and intentional. By adopting even a few of these ideas, you can infuse Martha’s charm into your home, adding touches of sophistication that make everyday moments feel special.
Wesley Masters works on Redfin’s stellar Content Marketing team as a content writing specialist. She has been with Rent. since 2023 and her previous experiences include non-profit communications, graphic design, and content creation. Wesley lives in Atlanta, GA, and loves outdoor walks, hanging out with her loved ones, and finding new recipes to try on Pinterest. Her ideal home is a brownstone with contemporary interiors.
Are you looking for the best jobs that pay $100,000 a year? Many people dream of making a six-figure salary and making more money. A job that pays $100,000 or more can help you reach your financial goals. It can let you save for the future, pay off debts, or enjoy a comfortable lifestyle. Jobs…
Are you looking for the best jobs that pay $100,000 a year?
Many people dream of making a six-figure salary and making more money. A job that pays $100,000 or more can help you reach your financial goals. It can let you save for the future, pay off debts, or enjoy a comfortable lifestyle.
Jobs that pay $100,000 or more many times need a college degree. But some high-paying jobs only need training.
Best Jobs That Pay $100,000 a Year
Below are the best jobs that pay $100,000 a year.
Recommended reading: 26 High Paying Jobs With No Experience Required
1. Software developer
Software developers are in high demand. They create computer programs and apps that we use every day. This job many times pays over $100,000 a year.
You don’t always need a college degree to become a software developer. Many learn through coding boot camps or teach themselves. The most important thing is having strong programming skills.
This job lets you be creative and solve problems, and you’ll usually work with a team of other developers. Many companies may allow you to work from home (I know a few software developers and they all work from home), and sometimes you may even have flexible hours.
2. Pharmacist
Pharmacists give out medicines and help patients understand how to use them safely. They also check for drug interactions and answer questions about medications.
To become a pharmacist, you’ll need to go to school, and you’ll need a degree called a doctor of pharmacy. It usually takes about 5 to 6 years after high school.
The hard work pays off, though, as pharmacists make over $100,000.
You can work in different places as a pharmacist. Many work in drugstores or grocery stores, and others work in hospitals or clinics.
3. Airline pilot
Many pilots earn over $100,000 a year, especially those who work for major airlines.
As a commercial pilot, you’ll fly passengers and cargo to destinations around the world. You’ll need special training and licenses to do this job. It takes hard work, but the pay can be great!
New pilots usually start at smaller airlines and they may earn less money at first. But as you gain experience, you can move up to bigger airlines that pay more. Some experienced pilots at major airlines can make $200,000 or even $300,000 or more a year!
The job comes with other perks too. You might get free or cheap flights for you and your family. Plus, you’ll get to travel and see new places as part of your work.
4. Blogger
Blogging is what I do, and I make well over $100,000 per year. There have even been many months where I have earned over $100,000 in a single month.
As a blogger, you can write about topics you’re passionate about, whether it’s personal finance, travel, cooking, lifestyle, or something else, while also helping others by sharing useful information.
Making a six-figure income as a blogger typically involves multiple income streams, such as affiliate marketing, sponsored content, ad revenue, and selling digital products or courses (I do all of these to make money on my blog). It takes time and effort to build an audience and establish trust with readers, but once your blog grows, the opportunities are pretty much endless.
The best part is that you don’t need any specific degree to get started – just a willingness to learn, a knack for writing, and a strong work ethic.
You’ll also enjoy flexibility in your schedule and the potential to work from anywhere. Many successful bloggers, including myself, have turned their blogs into full-time, money-making careers.
You can learn more at How To Start A Blog FREE Course and join over 80,000 people who have already taken the course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
5. Nurse practitioner
Nurse practitioners are in high demand and earn great salaries. You can make over $100,000 a year in this role.
To become a nurse practitioner, you’ll need extra schooling after becoming a registered nurse. You’ll need a master’s degree or doctoral nursing degree, as well as pass an exam.
This career lets you care for patients and work in different settings. You might work in hospitals, clinics, or private offices. Some nurse practitioners even run their own practices (many states allow for this).
6. Marketing manager
Marketing managers are in high demand because they help companies (such as in tech, retail, travel, and more) promote products and services to customers. This job can pay $100,000 or more per year.
As a marketing manager, you’d create plans (such as a marketing campaign) to reach target audiences. You might use social media, ads, and other ways to spread the word about a company.
They work with teams to come up with new ideas, and this could include making videos, writing content, or planning events. They also look at data to see what’s working and what’s not.
7. Art director
Art directors can make good money while pursuing their love of art. They get to shape the look of projects. This could be for ads, magazines, movies, or TV shows, and they make big decisions about colors, styles, and layouts.
The pay for art directors is great and many earn over $100,000 a year.
To become an art director, you need a mix of skills. You should be good at art and design. But you also need leadership abilities, as art directors guide teams of artists and designers.
Most art directors have a bachelor’s degree in art or design and many start in lower-level creative jobs first. They work their way up to director roles.
8. Physicians and surgeons
Physicians are among the highest-paid professionals in the medical field. They diagnose and treat illnesses, injuries, and other health problems.
To become a physician, you need to complete medical school and a residency program, and this takes many years of study and hard work.
The average salary for physicians is well over $100,000 per year. Some specialists can earn much more, even over $500,000 or higher.
As a physician, you can choose from many different specialties. These include family medicine, pediatrics, surgery, and more.
Physicians usually work long hours, many times including nights and weekends. But many find the job very rewarding because they help people every day.
Recommended reading: 30 Best Jobs That Help People
9. Copywriter
Are you good with words? Do you love writing? A copywriter job might be perfect for you! Copywriters create content for websites, ads, and more.
Copywriters can make $100,000 or more per year. I personally know many copywriters who make a great income.
Many companies need copywriters. You could work for big businesses, small shops, or even yourself. There are lots of options.
To be a great copywriter, you need to be creative and you also need to understand what makes people want to buy things.
You don’t always need a college degree to be a copywriter. But you do need to be a really good writer.
10. Real estate agent
Real estate agents can make $100,000 a year or more. This job lets you help people buy and sell homes.
You need a license to become an agent. Getting one takes some study and passing a test. Once you have it, you can start working with clients.
Your pay depends on how many homes you sell. Most agents earn a percentage of each sale, so the more expensive the house, the more money you can make.
11. Health services manager
Health services managers play a key role in running healthcare facilities. They oversee daily operations, manage budgets, create work schedules, make sure patients get good care, and more.
To become a health services manager, you’ll need a bachelor’s degree, and many employers prefer a master’s degree in health administration or a related field.
This job is in high demand. As the population ages, more healthcare services are needed. This means more jobs for health services managers.
12. Business operations manager
Business operations managers are in charge of how a company works day-to-day. They make sure everything runs smoothly and this includes things like managing people, money, and resources.
You’d need to be good at solving problems and making decisions. Being organized is also very important.
13. Economist
Economists study how people and businesses use resources. They look at things like money, goods, and services, and they try to understand and predict economic trends.
Economists use math and statistics a lot and need strong problem-solving skills. They might work for the government, banks, or big companies.
To become an economist, you’ll need at least a bachelor’s degree. Many jobs ask for a master’s degree or even a Ph.D.
14. Mathematician
Mathematicians use numbers and formulas to solve complex problems. They work in many fields like science, engineering, and finance.
Many mathematicians work in research roles at universities or government labs. Some find jobs in private industries like tech or insurance companies.
To become a mathematician, you usually need at least a master’s degree in math. Some jobs might require a Ph.D.
15. Architect
Architects design buildings and spaces that shape our world. They might create homes, offices, schools, or even entire cities. It’s a job that mixes art and science.
As an architect, you’ll use your creativity to draw plans and make models. You’ll work with clients to understand their needs and turn their ideas into reality. Math and physics skills are important too, as you need to make sure buildings are safe and strong.
16. Real estate entrepreneur
Real estate entrepreneurs buy, sell, and manage properties to make money. They look for good deals on houses, apartments, commercial buildings, or land.
You can start small with just one property. As you learn, you can grow your business and own more places.
Real estate investors sometimes even fix up old buildings. They make them look nice so they can sell them for more money (this is called flipping).
Some entrepreneurs rent out their properties. They become landlords and collect money from tenants each month.
Recommended reading: 23 Best Real Estate Side Hustles To Make Extra Money
17. Chiropractor
Chiropractors can make a great salary while helping people feel better.
They focus on treating problems with bones, muscles, and joints, and use their hands to adjust patients’ spines and other parts of their bodies.
To become a chiropractor, you need to go to school for several years after college. You’ll learn about the human body and how to treat different issues without surgery or medicine.
Many people visit chiropractors for back pain, neck pain, or headaches. You’d work with patients of all ages, from kids to older adults.
18. Sales manager
Sales managers lead teams of salespeople to meet company goals. You might enjoy this job if you like working with others and hitting targets.
As a sales manager, you’ll set sales goals, train new staff, and track performance. You’ll also work with other departments to create sales plans.
Also, you don’t need to be a sales manager to make over $100,000 each year – there are many sales jobs where you can make good money and not have to manage anyone.
19. Construction manager
Construction managers are in high demand (because construction is booming all over!), and they oversee building construction projects from start to finish. This job can pay over $100,000 a year for top earners.
This job needs good leadership skills as they are in charge of workers, budgets, and schedules. Their job is to make sure everything runs smoothly.
Most construction managers have a bachelor’s degree. You might study construction science, engineering, or business. Some people work their way up from other construction jobs too.
20. IT manager
IT (information technology) managers play an important role in companies, especially nowadays, with nearly all companies using a computer in some way. IT managers oversee computer systems and IT teams. This job typically pays over $100,000 a year.
You’ll need strong tech skills and leadership abilities. IT managers plan projects, set budgets, and manage staff. They also make sure systems run smoothly and stay secure.
To become an IT manager, you typically need a bachelor’s degree in computer science or a related field. Some companies may prefer a master’s degree. Work experience in IT is also very important.
21. Dentist
As a dentist, you can earn well over $100,000 a year by helping people take care of their teeth.
Dentists do many things, such as clean teeth, fill cavities, and fix broken teeth.
To become a dentist, you need to go to dental school after college. It takes about 8 years of school in total – 4 years of undergraduate school and 4 years of dental school.
22. Veterinarian
Vets take care of sick and injured animals, giving them medicine and performing surgeries.
Becoming a vet takes a lot of school (a minimum of 8 years of schooling – 4 years in undergraduate, 4 in veterinary school, and time spent in clinical training), but it can pay off. Many vets earn over $100,000 a year.
Vets don’t just work in animal clinics. They can find jobs in zoos, farms, or research labs.
23. Sell printables
Want to make $100,000 a year? Try selling printables!
Printables are digital designs that people can buy and print at home. You can create all sorts of printables, such as planners, wall art, gift tags, cards, or even party decorations.
The best part? You only need to make each design once. Then you can sell it over and over again.
You can learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
24. Occupational therapist
If you’re looking for a rewarding career that can pay well, becoming an occupational therapist might be a great choice. This job helps people overcome physical and mental challenges to live better lives.
Occupational therapists work with kids, adults, or older people who have injuries, illnesses, or disabilities.
To become an occupational therapist, you’ll need a master’s degree and you’ll also have to get a license to practice.
25. Lawyer
You can earn a good living as a lawyer and this is typically one of the highest-paying jobs in the workforce. Many lawyers make $100,000 or more per year. The highest-paid lawyers can even make well over $200,000 annually.
Lawyers give legal advice, represent clients, and work on different types of cases. These could include criminal law, family law, or business law.
To become a lawyer, you need to go to law school after college, as well as pass the bar exam.
26. HR manager
Human resources managers play a very important role in companies. They handle hiring, employee relations, and workplace policies. Many HR manager jobs pay $100,000 or more per year.
To become an HR manager, you usually need a bachelor’s degree in human resources or a related field. Some jobs may ask for a master’s degree. Experience in HR is also important.
27. Speech-language pathologist
Speech-language pathology might be perfect for you if you are looking for a job that pays well and also helps people. This career lets you work with people of all ages who have trouble speaking or swallowing.
This job is in high demand and you can find work in schools, hospitals, or private clinics. Some speech-language pathologists even work for themselves.
To become one, you’ll need to go to college and get a master’s degree. You’ll also need a license to work.
28. Personal financial advisor
Personal financial advisors help people manage their money and plan for the future. They can make around $100,000 or more a year.
As an advisor, you’d work with clients to set financial goals. You might help them save for retirement, buy a house, or pay for their kids’ college. You might also give advice on investments, insurance, and taxes.
29. Bookkeeper
Bookkeepers keep track of financial records for businesses, record income and expenses, manage payroll, and create financial reports.
To become a bookkeeper, you usually need a high school diploma or equivalent. Some employers might prefer a bachelor’s degree in accounting or a related field.
I have a few friends who provide monthly bookkeeping services to small businesses, and they all really like what they do. Plus, you don’t need a college degree to get started (only one of them has an accounting degree – most do not!) – so this is something you can learn.
You can learn more at Online Bookkeeping Jobs: Learn How To Get Started Today.
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
30. Professor
Teaching professors can earn $100,000 or more per year. This job combines a love for education with the chance to make good money.
You’ll need advanced degrees to become a teaching professor as most schools want you to have a Ph.D. in your field. Some might accept a master’s degree for certain subjects.
Your main job is to teach college students. You’ll create lesson plans, give lectures, and grade assignments.
Many teaching professors work at universities. But you can also find jobs at community colleges or online schools. Some professors teach both in-person and online classes.
31. Chief executive officer
As a CEO, you can earn over $100,000 a year and some earn millions of dollars each year.
CEOs lead companies and make important decisions. They set goals, manage teams, and work with other executives. It’s a fast-paced role that requires strong leadership skills.
To become a CEO, you’ll need lots of experience. Most start in lower roles and work their way up. A business degree can help, but it’s not always required.
32. Engineer
Engineers are some of the highest-paid professionals in the job market today. Many engineering jobs pay salaries well over $100,000 per year, so this makes it an attractive career path for those seeking financial stability.
There are many different types of engineers, such as:
Civil engineer – They design and supervise the construction of infrastructure projects like roads, bridges, and buildings.
Mechanical engineer – They work on designing, developing, and maintaining mechanical systems, from engines to manufacturing equipment.
Electrical engineer –They focus on electrical systems, including power generation, wiring, and electronics.
Software engineer –They create and maintain software applications and systems for computers and other devices.
Aerospace engineer –They design aircraft, spacecraft, and satellites, working on systems for flight and space exploration.
Chemical engineer –They apply chemistry to solve problems in manufacturing, healthcare, and energy, usually working with chemicals, fuels, and drugs.
Environmental engineer –They develop solutions to environmental problems, such as pollution control and waste management.
To become an engineer, you’ll need a strong background in math and science. Most engineering jobs require at least a bachelor’s degree in a related field.
Frequently Asked Questions
Below are answers to common questions about the best jobs that pay $100,000 a year.
Is earning $100,000 every year considered to be a good salary?
Yes, $100,000 is a good salary for most people. It’s more than double the average U.S. income. This amount can give you a comfortable life in many places. Of course, in some areas, $100,000 may not seem like enough. So, a lot depends on where you live.
What jobs pay around $100K a year?
Many jobs can pay $100K or more. Some top choices are software developer, pharmacist, airline pilot, and nurse practitioner. These jobs need special training or a degree but they can lead to high pay and good job security.
What is the easiest job that pays $100K a year?
There’s no truly “easy” job that pays $100K. All high-paying jobs need hard work and skills. But some may feel easier if you enjoy them. For example, if you love writing, being a successful blogger could be a good fit.
What are the best jobs that pay $100,000 a year without a degree?
You can earn $100K without a college degree in some jobs such as real estate agent, sales manager, blogger, and pilot. These jobs usually need special training, apprenticeships, or certifications instead of a degree. There are also jobs that I didn’t talk about in the list above that can make over $100,000 a year without a degree such as working as a firefighter, in law enforcement, as a plumber, and more.
What are $100K jobs that no one wants?
Some high-paying jobs are less popular due to stress or tough conditions. Examples include underwater welder, oil rig worker, and coal miner. These jobs can pay well but may have health risks or unpleasant working conditions.
What are some jobs that pay over $200K a year?
Jobs that can pay over $200K many times need lots of education and experience. Some examples are surgeon, investment banker, CEO, and lawyer. These jobs usually need many years of school and work to reach top pay levels.
What are some jobs that pay $100K a month?
Jobs that pay $100K per month ($1.2 million per year) are more rare. They might include top athletes, famous actors or musicians, successful business owners, and high-level executives at big companies. These jobs are hard to get and often involve fame or running large businesses.
Best Jobs That Pay $100,000 a Year – Summary
I hope you enjoyed my article on the best jobs that pay $100K a year.
Finding a job that pays $100,000 or more can open doors to financial security and a better quality of life. Whether you’re interested in healthcare, technology, or even entrepreneurship, there are many options for jobs that pay a high salary.
Some of these careers require advanced degrees, while others only need specialized training or a willingness to learn new skills.
I hope you are able to find the job and career path that you are looking for!
What do you think are the best jobs that pay $100,000 or more each year?
Fort Wayne is known for its affordable cost of living, growing job market, and friendly people, making it an appealing option for many. That said, like any city, Fort Wayne has its own set of advantages and disadvantages. Let’s take a closer look at 11 of the most impactful pros and cons of living in Fort Wayne to help figure out whether or not it’s the place for you.
Fort Wayne at a glance
Walk Score: 32 | Bike Score: 41 | Transit Score: 22 Median Sale Price: $225,900 | Average Rent for 1-Bedroom Apartment: $1,142 Houses for rent in Fort Wayne | Apartments for rent in Fort Wayne | Homes for sale in Fort Wayne
1. Pro: Affordable housing
Fort Wayne has one of the most affordable housing markets in the U.S. Median home sale prices are well below the national median of $427,496. Apartments in Fort Wayne follow a similar pattern and typically go for around $1,078 on average. This affordability makes it easier for residents to enjoy a comfortable lifestyle without stretching their budgets to the limit.
2. Con: Limited public transportation
While Fort Wayne is easy to navigate by car, the public transportation system is limited. Citilink, the local bus service, covers some areas, but it may not be convenient for all. If you don’t own a car, getting around can be challenging, especially for commuting to certain neighborhoods or reaching destinations on the outskirts of town.
3. Pro: Expanding job market
Fort Wayne’s job market is steadily growing, with particular strengths in manufacturing, healthcare, and education. Large employers like Parkview Health, General Motors, and Steel Dynamics provide ample job opportunities, while the city’s focus on innovation and technology is opening doors for new industries. For those seeking employment or career advancement, Fort Wayne has some solid options.
4. Con: Weather extremes
Fort Wayne experiences a wide range of weather, from hot, humid summers to cold, snowy winters. The unpredictability of the weather can be a drawback for some, especially those unaccustomed to frequent temperature fluctuations. Snow removal can be a hassle, and summer humidity can make outdoor activities less enjoyable.
5. Pro: Thriving arts scene
For a mid-sized city, Fort Wayne has a surprisingly strong arts scene. The Fort Wayne Museum of Art, the Embassy Theatre, and events like the annual Three Rivers Festival provide year-round entertainment.
6. Con: Lack of professional sports teams
If you’re a sports fan, you may find Fort Wayne’s offerings lacking. While the city does have minor league teams like the TinCaps (baseball) and the Komets (hockey), it lacks professional franchises. Sports fans might have to visit friends living in Indianapolis or Chicago for big-league action.
7. Pro: Beautiful parks
Fort Wayne is home to an impressive amount of parks and green spaces. The city’s parks system includes over 80 parks, like the stunning Lakeside Park & Rose Garden and the expansive Franke Park. Rivergreenway Trail, which winds along the St. Marys River, provides scenic paths for walking, biking, and running.
8. Con: Limited nightlife
If you’re looking for a city with elite nightlife, Fort Wayne might not meet your expectations. While there are bars, breweries, and live music venues, the city’s nightlife is more laid-back compared to larger Indiana cities.
9. Pro: Emphasis on education
Fort Wayne is home to several higher education institutions, including Purdue University Fort Wayne and Indiana Tech. These colleges offer a range of programs and cement the city’s status as one of the best college towns in Indiana. The presence of these schools also adds a youthful vibe to the city and provides continuing education opportunities for residents of all ages.
10. Con: Slower pace of life
Despite being one of the better college towns in Indiana, Fort Wayne has a relaxed and slower pace of life. For some, it’s a welcome change from the hustle and buzz of bigger cities. For others, the laid-back atmosphere might feel too quiet. Those who crave constant activity may find themselves seeking more excitement elsewhere.
11. Pro: Convenient location
Fort Wayne’s central location in the Midwest makes it easy to travel to nearby cities like Indianapolis, Chicago, and Detroit. It’s close enough to enjoy weekend trips but still offers the perks of small-town living. The city is also served by the Fort Wayne International Airport, making air travel relatively convenient.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
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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You wake up to find no running water in your house. Pressure from a tree root has collapsed the line between your home and the city’s water main — and because the broken pipe is on your property, you’re on the hook for repairs.
If you want to protect your finances from this type of scenario, consider adding service line coverage to your homeowners insurance policy.
What is service line coverage?
Service line coverage is an optional type of insurance that can pay for repairs to underground utility lines on your property. Depending on your insurer, service line coverage may pay for damage due to:
Wear and tear.
Root invasion from trees and plants.
Mechanical or electrical failure.
Blockage, bursting or collapse.
Rust or corrosion.
Disconnection.
Excavation.
Rodents or other animals.
Service line coverage often comes with a deductible — the amount of a claim you’ll have to pay. Here’s an example of how it might work:
Say a heavy truck parks on your lawn to unload supplies for a new deck, accidentally crushing an underground sewer line. Replacing it will cost $3,000. After subtracting your $500 deductible, your insurance company would pay the remaining $2,500.
What does service line coverage include?
Service line coverage can pay to repair damage to the following types of underground utility lines on your property:
Water, sewer or steam.
Telephone or cable.
Your coverage could pay for services like excavation, replacing damaged piping and restoring landscaping that was disturbed during repairs. If your home is uninhabitable, your policy could also cover the cost of staying in a hotel for a few days.
Some insurance companies may offer a little extra coverage to replace your old service line with more efficient or eco-friendly technology.
What’s not covered?
Service line coverage generally won’t pay to repair utility lines located above ground. And because the coverage is designed for utility lines that link your home to a municipal or commercial service, it may not cover damage to water wells, septic systems or liquid fuel tanks.
🤓Nerdy Tip
Read your policy carefully, as exclusions vary from one insurance company to another. If you have questions, reach out to your agent.
How much does service line coverage cost?
The cost of service line coverage depends on where you live and how much coverage you want. A typical range is $20 to $50 per year, but we saw one company advertising rates as low as $9 per year for newer homes.
Is service line coverage worth it?
Service line coverage isn’t mandatory, so it’s your choice whether you add it to your policy. Keep in mind that utility line repairs could cost thousands of dollars, depending on the severity of the problem. For example, replacing a sewer line costs about $3,200 on average, according to Angi, a home services company.
You might want to consider buying service line coverage if:
You live in an older home with aging utility lines.
Your property has large trees with roots that could encroach on underground pipes.
Paying a little more for extra coverage gives you peace of mind.
Service line coverage may be less useful to you if:
Your home is new.
You live in a rural area without connections to many municipal utilities.
You’d feel comfortable covering an unexpected expense if something happened to one of your utility lines.
Alternatives to service line coverage from your home insurer
You may be able to buy service line insurance through your utility company or the city where you live. Home warranty companies such as Service Line Warranties of America and HomeServe may also offer coverage in your area for service lines.
Look carefully at the terms and cost of each plan before you buy one. You may find that they’re more expensive than the coverage your homeowners insurer can offer for potentially less coverage.
For example, the Service Line Protection Program from the New York City Department of Environmental Protection costs nearly $85 per year for water line coverage and $143 per year for sewer line coverage. That’s a total of $228 for two utility lines. Your home insurer might offer coverage for other service lines, too (such as electric and cable lines) for a lower price.
Which companies offer service line coverage?
Many home insurers offer service line coverage as an add-on, including:
First-time parents can be so preoccupied with the love they feel for their new babies and the constant care required that they may lose sight of their larger financial goals. When you’re busy getting to know your little human, you may not prioritize money management.
But securing your growing family’s finances is an important consideration. You have new needs and goals evolving, such as your child’s education and your retirement. Here’s smart advice to help you manage your money well during this new life stage and beyond.
Key Points
• Parents can avoid overspending on baby gear by considering secondhand items or accepting hand-me-downs.
• Creating a budget using the 50/30/20 rule may help first-time parents manage new expenses like daycare.
• Parents can prepare for unexpected expenses by building an emergency fund in a high-yield savings account.
• New parents should continue to prioritize retirement savings by utilizing employer 401(k) plans or IRAs.
• Parents can start saving early for their child’s education with 529 plans or Coverdell ESAs.
7 Financial Tips for New Parents
Raising a child can cost more than $15,000 a year, according to one recent calculation using U.S. Department of Agriculture data. That can put some serious stress on your finances. Here’s guidance on making your money work for you and your family.
1. Avoid Overspending on Baby Gear
As a first-time parent, you likely have quite a bit of work to do before the baby arrives. You may need to create and furnish a nursery for your child, and stock up on diapers, bottles, clothes, toys, and so much more.
As you’re setting up your new life with a baby, it can feel like buying everything brand-new is the only option, but that can be costly. You might consider taking advantage of used or gifted items so as not to deplete your bank account.
You can buy a lot of items secondhand at a lower cost through online marketplaces or used goods and consignment stores. Or you might see what “freecycle” networks in your area have available at no charge. That’s one way to save money daily.
And if you have friends, family, or neighbors that already have children, they may be looking to unload some of the gear their children no longer use. Families with older kids are often happy to pass on items such as clothes, cribs, playpens, toys, and books. You might check Nextdoor.com and other community sites, which can be a good resource for local families seeking to offload these items.
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2. Don’t Live Without a Safety Net
As a parent, you have a host of new responsibilities, and expenses you never imagined may pop up. So consider these moves:
• An emergency fund becomes even more important when you have a child or one is on the way. You’re now responsible for all of their needs, and there may be unplanned costs that pop up along the way. Or, if you were to endure a job loss, you’d need to continue to provide for your child.
• Saving for an emergency is a process, and it’s okay to start small — even just $25 a week will add up over time. Some people opt to store their emergency fund in a high-yield savings account or checking account. Earning interest that way will help your money grow faster.
• Review your health insurance. You may want to opt for a different plan now that you have a child. An addition to the family is usually a qualifying life event (QLE) that can allow you to make changes regarding your plan outside of the usual open enrollment period.
• Consider life insurance and disability insurance if you don’t already have it or, if you do, see if you want to update your coverage. When a little one is depending on you, you probably want to protect their future if you weren’t able to earn your usual income. Maybe you can only afford a modest policy at this moment. That can be fine; it’s a start and something you can revisit later as you grow your wealth.
3. Keep a Budget
With a baby on board, you likely have a host of new expenses, from the life insurance mentioned above to daycare to toys (and more toys). Making a budget can help you prepare to pay for the extra expenses.
The word “budget” can conjure up fear, but it’s really just a helpful set of financial guardrails that help you balance how much you have coming in and how much is going out towards expenditures and savings.
• You might try the popular 50/30/20 budget rule which says that 50% of your take-home pay should go toward needs, 30% toward wants, and 20% toward savings.
• You could check with your financial institution to see what kinds of tools they provide for tracking your money. This can be a great resource as you work to improve your money management and hit your goals.
• To make a budget, you might also see what apps or websites offer products that could work for you. Check with trusted friends to see what they may recommend.
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4. Don’t Put Off Retirement Savings
Another financial mistake new parents: Learning to pay yourself first isn’t easy for a lot of parents to do, but it’s vital. (For instance, while you can borrow money for college expenses for your child, you can’t likely borrow for your retirement.)
For retirement saving, one way to start is by enrolling in your company’s 401(k) plan if one is offered. Some employers will match your contribution, up to a certain percentage, and you’ll be able to have your contribution taken directly from your paycheck.
If your employer doesn’t offer a 401(k), you could open an individual retirement account, or IRA, instead. Getting in the habit of saving at least a little for your own future can be important as your focus shifts to your new addition.
It’s never too early to start saving for retirement.
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5. Start Savings for Your Child’s College
Saving for your children’s tuition can be an important step for many new parents. That’s because the sooner you start, the better. Your money will have that much more time to grow. College is a big-ticket expense, with estimates of tuition in 18 years being calculated as follows:
• $25,039 per year for a public college
• $48,380 per year for a private college
While a standard savings account may seem like the easy choice, there are other options designed to help you or grandparents save for a child’s education.
• You might opt for the benefits of a 529 college savings plan. There are two types: education savings plans and prepaid tuition plans.
• With an education savings plan, a tax-deferred investment account is used to save for the child’s future qualified higher education expenses, like tuition, fees, room and board, computers, and textbooks. Funds used for qualified expenses are not subject to federal income tax.
• With a prepaid tuition plan, an account holder purchases units or credits at participating colleges and universities for future tuition and fees at current prices for the beneficiary. Money in this fund is guaranteed to rise at the same rate as tuition. Most of the plans have residency requirements for the saver and/or beneficiary.
• A Coverdell Education Savings Account may also be worth looking into. In general, the beneficiary can receive tax-free distributions to pay for qualified education expenses. Contributions to a Coverdell account are limited to $2,000 per year, per beneficiary. The IRS sets no specific limits for 529s.
calculator to check eligibility.
• Adoption Tax Credit: This offers tax incentives to cover the cost incurred if you adopted a child. In 2024, the maximum credit was $16,810 per qualifying child.
You might consult a tax professional to see which of these you can claim.
7. Teach Your Kids About Money
If kids aren’t taught the basics of financial literacy at a young age, they may struggle to make a budget, avoid credit card debt, or save money when they’re older. You can help your children learn what it means to manage money in these ways:
• Kids often love to play store, so go ahead and join in. By exchanging goods for money, they’re already beginning to understand the basic principles of commerce.
• As they get older, you may want to give them an allowance in exchange for chores or homework completion.
• You could even have them make a budget with their earnings, and encourage them to spend, save, and donate.
• You could open a checking account with them, once they are old enough, and teach them how it works.
• You might give them a gift card or prepaid debit card and coach them on sensible spending.
Can You Ever Be Fully Financially Ready for Parenthood?
It’s probably not possible to be fully financially ready for parenthood or for adult life in general. Part of each person’s financial journey is learning how to plan for the unexpected and navigate curveballs. That might mean financing a child’s dance lessons or speech therapy. You might wind up moving to what you consider a better school district and paying more for your mortgage and taxes.
That’s why embracing some of the guidelines above, such as making a budget, stocking an emergency fund with cash (perhaps sending some money there via direct deposit), and saving for the future can be so important.
The Takeaway
Being a new parent is a joyful time but also a challenging one. One priority not to lose track of is your financial health, especially since you are now providing for a little one and their future. By budgeting and spending wisely, saving for the future, and knowing which tax credits you may be able to claim, you can help yourself get on the path to financial security for your family.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
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FAQ
How can you plan financially for parenthood?
Planning financially for parenthood can involve updating your budget, allocating funds to the right insurance policies and long-term goals (such as your child’s education and your own retirement), and creating an emergency fund, if you don’t already have one. Also educate yourself on any tax credits you might qualify for once you become a parent.
What are the biggest unforeseen expenses of parenthood?
Some of the unforeseen expenses of parenthood include your child’s medical, dental, and mental health costs; academic support (such as tutors and prep classes); hobbies (taking tae kwon do classes, perhaps, or traveling with their soccer club); and funding any family travel and vacations.
How much does a child cost per year?
The cost of raising a child per year can vary widely, depending on such factors as medical needs and whether they are attending public or private school. That said, recent studies suggest the current average figure is around $15,000 to $17,500 per year per child.
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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
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Living in Jersey City provides the rare experience of city living, strong local culture, and easy accessibility to the Big Apple. Located right across the Hudson River from Manhattan, it’s a popular choice for those seeking proximity to the action without the stresses that come with living in New York City.
That said, as with any city, there are both upsides and downsides to consider before making the move. Let’s dive into 11 of the most prominent pros and cons of living in Jersey City to see if it’s the place for you.
Jersey City at a glance
Walk Score: 87 | Bike Score: 64 | Transit Score: 70 Median Sale Price: $635,000 | Average Rent for 1-Bedroom Apartment: $3,811 Jersey City neighborhoods | Houses for rent in Jersey City | Apartments for rent in Jersey City | Homes for sale in Jersey City
1. Pro: Proximity to Manhattan
Jersey City has unbeatable access to Manhattan. The PATH train and ferries provide quick commutes into the heart of NYC, making it a great location for professionals working in the city. Beyond that, residents enjoy stunning views of the Manhattan skyline from many parts of Jersey City.
2. Con: High cost of living
While Jersey City is cheaper than Manhattan, it’s still quite expensive. Median home sale prices are well above the national median of $427,496. Apartments in Jersey City follow a similar trend, going for around $3,942 on average.
3. Pro: Waterfront and green spaces
Jersey City is a walkable city with a beautiful waterfront. Liberty State Park accompanies this waterfront with green spaces, walking trails, and shaded areas. The park also benefits from breathtaking views of the Statue of Liberty, Ellis Island, and the New York City skyline, giving residents access to some of the best outdoor spots in the region.
4. Con: Limited parking
If you own a car, parking can be a headache in Jersey City. Street parking is scarce, and parking garages can be expensive. Even residential areas often have restrictions, meaning a car might be more of a hassle than a convenience.
5. Pro: Stellar dining and entertainment
Jersey City is home to a strong food scene, with cuisines from all over the world. Whether you’re craving Indian, Latin American, or Italian, there’s a restaurant for every palate. The nightlife is lively too, with plenty of bars, rooftop lounges, and live music venues to explore.
6. Con: Crowded public transportation
Though Jersey City has excellent public transit options, they can be crowded, especially during rush hour. PATH trains and buses are often packed, leading to longer wait times and an uncomfortable commuting experience for many locals.
7. Pro: Thriving arts scene
The city’s art scene is thriving, with local galleries, street art, and food festivals taking place year-round. The Jersey City Art & Studio Tour, for example, showcases the city’s creative talent and attracts art lovers from across the region. Needless to say, there’s always something to do in Jersey City.
8. Con: Property taxes
If you’re looking to buy a home in Jersey City, beware of the high property taxes. New Jersey already has some of the highest property taxes in the country, and Jersey City is no exception. This can be a significant factor for those considering purchasing a home.
9. Pro: Accessible public schools and universities
Jersey City is home to several respected public schools. Jersey City is also home to universities like New Jersey City University and St. Peter’s University, cementing the city’s status as a solid New Jersey college town.
10. Con: Traffic congestion
Traffic congestion can be a common issue in Jersey City, especially during peak hours. With limited bridges and tunnels into Manhattan, commuters often find themselves stuck in long lines of traffic, particularly if you drive into the city for work.
11. Pro: Job opportunities
Jersey City has become a financial hotspot, offering plenty of job opportunities, particularly in finance, tech, and healthcare. Large corporations, including Goldman Sachs and JPMorgan Chase, have offices here, meaning you can find excellent career opportunities without having to commute into Manhattan.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.