Showing off luxury homes that cost millions of dollars to build is quite the process. Every detail has to be on point, ensuring that the quality materials and high-end finishes are beautifully complemented by just the right decor choices, for maximum impact.
The goal is pretty clear — to showcase the property in the best possible light, and to make it easier for the would-be buyers to imagine themselves living there. And, of course, to make them more amenable to parting with hefty sums of money to make the house their own.
But how can sellers master the art of staging multimillion-dollar homes? In this article, we’ll go over some key strategies to make luxury home staging a success.
Understanding the target buyer and their preferences
To understand the target audience, we will need to first get into how the luxury home market works and what attracts buyers in this price range.
And no, we’re most certainly not suggesting you stalk potential buyers online to find out what their hobbies are and stage the home accordingly — much like Modern Family’s Phil Dunphy once did, in a hilarious episode of the long-lived sitcom.
If you know the price range of the property, the very first thing you should do is your homework: pull up as many similarly priced listings as you can, and start studying each and every one.
What are some of the most common design elements employed throughout? What types of design styles look best? Which types of light fixtures, artwork, and statement decor make the biggest impact? Write down everything that catches your eye and you already have a great starting point.
Photo credit: Pascal Riedel / Dreamstime
Refine your buyer persona
Your next step should be to look into the demographics of potential buyers for your specific property. Who would be most interested in buying the house?
Focus on their age, cultural background, profession etc. Marketing becomes a lot easier when you actually know your customers. Now, divide them into specific categories (e.g., young tech entrepreneurs, international investors, retirees looking for a second home) to understand their preferences.
And from there, it’s a no-brainer. Techbros may prefer homes with cutting-edge technology, international investors might look for strong ROI and a positive legal plus tax environment, while retirees may seek exclusive amenities like a private pool. Find that right fit and things will flow smoothly from there.
Meet them where they’re at
Remember that luxury buyers often make decisions based on emotional appeal or status. Understand what triggers these emotional responses — such as a grand entrance, unique features, or high-end finishes, and try to tap into that.
Costs and investments to keep in mind
Typical McMansions rent over-the-top furniture, art, lighting, and thousands of other types of accessories to appeal to their customers. To move these extremely expensive items, you’ll need professional movers. And if your schedule is tight, you’ll need to cough up some extra bucks. Also, watch out for an additional storage fee if the items can’t be delivered in time.
Working with real estate agents adds another layer of expense. Some stagers work on a commission basis, taking a percentage of the final sale price. There are also costs for joint marketing efforts like professional photography, virtual tours, and brochures to put the home on display.
Overall, the money that goes into staging includes renting luxury furnishings and decor. Which, depending on the property’s size and needs, can range from a few thousand to tens of thousands of dollars. A home value calculator can be a great tool to get a clearer picture of what the price should be — so that you can factor in all of the above costs, and bake them into the listing price.
The science of layout and flow
To make a home functional as well as aesthetically pleasing, you need a clear understanding of how people see and move through space. The next step is to make strategic choices that account for this aspect. Choices that will highlight the home’s best features all the while maintaining a sense of harmony.
Entryway
Photo credit: Witriyani Nurhasanah / Dreamstime
Firstly, the entryway sets the tone for the entire home. Keep it open, uncluttered, and welcoming. Opt for neutral or pastel colors on the walls.
You may also play around with textures without creating visual clutter— like a woven mat or a smooth bench. However, if you would like to incorporate vibrant colors, just make sure your designers know the difference between tacky and tasteful.
Focal points
Photo credit: Andrei Dzemidzenka / Dreamstime
Think about focal points and pathways — every room should have a clear eye-catching focal point. It could be anything like a large window with a view, a piece of art, or a furnace.
The layout for pathways should feel easy to move through. You want to maintain a natural flow, an unobstructed path. So it’s best to not have any large furniture that takes away from the charm.
Lighting
Photo credit: Yulia Ryabokon / Dreamstime
Now, let’s talk about the power of lighting and reflective surfaces. Install pendant lights or scones for warm, inviting lighting. Consider adding a small table lamp or LED strip on the entryway.
Reflective surfaces are amazing at creating a particular mood or ambiance. Mirrors help reduce harsh shadows and distribute light more evenly throughout a room. For example, glass tables, metallic accents, or mirrored furniture are a great way to make an area look polished.
Virtual and augmented reality staging
If investing in quality staging and upscale furniture just isn’t in the budget — especially after a pricey building process — VR and AR can serve as great alternatives to showcase a property for potential buyers (particularly if you’re targeting out-of-state or foreign buyers). Here’s how:
Detailed views: Use VR or AR to create detailed, 360-degree views of standout features like custom-built kitchens, luxury bathrooms, or unique architectural details.
Immersive walkthroughs: Create VR tours that let potential buyers walk through the property as if they were physically there. Keep the focus on spacious living rooms or scenic views, with detailed commentary or annotations.
Virtual open houses: Host virtual open houses using VR to allow foreign investors to explore the property in real-time.
Real-time customization: Include features that allow buyers to make real-time modifications like changing wall colors or flooring options. For instance, light-colored wood floors generally make a room look bigger. Marble can also make a space feel larger, especially if it’s light in color with minimal veining. Both options can work in this context so it is best to have an option to try out both of them.
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While lower mortgage rates have reinvigorated hope for the stalling housing market, 2025 might not wind up much better than 2024.
Sure, lower interest rates boost affordability, but there are other components to a home purchase that remain cost-prohibitive.
Whether it’s simply an asking price that’s out of reach, or rising insurance premiums and lofty property taxes. Or other monthly bills that eat away at the housing budget.
This explains why mortgage origination forecasts for purchase lending continue to be pretty dismal.
However, the emerging trend of rising mortgage refinance volume should get stronger into 2025.
2024 Purchase Volume Has Been Revised Down
A new report from iEmergent revealed that 2024 purchase mortgage originations are projected to fall in terms of loan count when compared to 2023.
In other words, despite lower mortgage rates, the number of home purchase loans is now expected to fall below 2023 levels.
However, thanks to an increase in average loan size, the company believes purchase loan volume will still see a modest increase of 3.5% year-over-year.
To blame is still-high mortgage rates, which peaked about a year ago and have since fallen nearly two percentage points.
But home prices remain elevated, and when combined with a 6% mortgage rate and steep insurance premiums and rising property taxes, the math often doesn’t pencil.
Adding to affordability woes is the continued lack of existing home supply. There simply aren’t enough homes for sale, which has kept prices high in spite of reduced demand.
Refis Expected to Jump Nearly 50% from 2023 Lows
On the other side of the coin, mortgage refinances are finally showing strength thanks to that pronounced decline in mortgage rates.
They bottomed in late 2024 when the 30-year fixed hit the 8% mark, with only a handful of cash out refinances making sense for those in need of payment relief (on other debt).
But since then rate and term refinances have picked up tremendously as recent vintages of mortgages have fallen “into the money” for monthly payment savings.
As noted a week ago, rate and term refis surged 300% in August from a year earlier and the refinance share of total loan production rose to 26%, the highest figure since early 2022.
Chances are it will continue to grow into 2025 as mortgage rates are expected to ease further this year and next.
iEmergent said they “expect rates to finally start declining in the months ahead,” on top of the near-2% decline we’ve already seen.
While many have argued that the rate cuts are mostly baked into mortgage rates already, which explained mortgage rates rising after the Fed cut, there’s still a lot of economic uncertainty ahead.
The 50-basis point came as a surprise to many and another one could be on deck for November, currently holding a 60% probability per CME FedWatch.
If it turns out the Fed has gotten behind the eight ball, 10-year bond yields (which track mortgage rates) could drop more than is already penciled in.
At the same time, there’s still room for mortgage spreads to compress as the market normalizes and adjusts to the new lower rates (and higher loan volumes ahead).
2025 Refinance Volume Slated to Rise Another 38%
Looking forward to 2025, the refinance picture is expected to get even brighter, with such loans rising a further 38% (in dollar amount) from 2024.
This will likely continue to be driven by rate and term refis as interest rates continue to improve and the millions who took out loans since 2022 take advantage of cheaper rates.
But it could also come in the form of cash out refinances, which will become more attractive as well.
Even if an existing homeowner has a rate of say 4%, something in the high-5s or low 6% range could work if they need cash.
This could be a reflection of increasing debts in other departments, as pandemic-era savings run dry.
Ultimately, homeowners have barely touched their equity this housing cycle, so there’s an expectation that it’ll happen at some point, especially with home equity at record highs.
You might also see this in the form of second mortgage lending, with HELOC rates expected to fall another 2% as the prime rate is lowered by that same amount over the next 12 months.
Meanwhile, iEmergent is forecasting a paltry 6.5% increase in purchase volume in 2025, pushing overall dollar volume growth to just 13.3%
As for why purchase lending is projected to be relatively flat next year, it’s a wider economy story.
If economic growth continues to decelerate and a recession takes place, a weaker labor market with higher unemployment could dampen home buyer demand.
So even if mortgage rates decline more as a result, you’ve got fewer willing and able buyers, despite lower monthly payments.
This explains the phenomenon of how home prices and mortgage rates can fall in tandem.
They might not, but it at least debunks the idea of there being an inverse relationship between the two.
Long story short, 2025 should be better for mortgage originators thanks to refis, but don’t get your hopes up on purchase lending seeing a big jump thanks to lower rates.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
When planning for retirement, people often assume Medicare will cover their medical bills, but in fact many retirees will face out-of-pocket costs that, over time, could reach into the six figures.
While it’s difficult to predict for sure what your actual health care costs in retirement will be — especially in light of today’s longevity — it’s wise to work with a ballpark figure in order to create a safety net of savings that will cover you, no matter what your needs will be in the years to come.
Key Points
• Planning for retirement should take health care costs into account, such as potential out-of-pocket costs and long-term care.
• According to research, the average 65-year-old individual may need $165,000 in savings to cover medical expenses in retirement (and double that amount for couples).
• Medicare covers medical costs such as preventive care, doctor visits, prescription drugs, inpatient hospital stays, short-term rehab, and hospice.
• Medicare Advantage Plans are Medicare-approved, private insurance plans that may cover medical basics as well as other expenses, such as vision, hearing, and dental.
• Health savings accounts (HSAs) and long-term care insurance can help pay for medical expenses not covered by Medicare.
Health Care in Retirement
The cost of health care in retirement can be overwhelming. According to the annual Fidelity Retiree Health Care Cost Estimate in 2024, a typical retired couple aged 65 could spend as much as $330,000 in after-tax savings on medical expenses during the course of their retirement.
That figure doesn’t include related health costs such as dental services, over-the-counter medications, or long-term care — which are not currently covered by original Medicare.
Long-term care expenses can be especially onerous, with the median cost of a private room in a nursing home running about $116,800 per year, according to the 2023 Genworth Cost of Care Survey. This, too, is an expense that many people may need to factor into their retirement plans, given the growing number of people living into their 80s and 90s — or longer.
This “new longevity,” as it’s sometimes called, may also lead to additional health-related costs down the line that are difficult to anticipate now, but require educated estimates nonetheless — especially for women, who live on average about five years longer than men.
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How Much to Budget for Health Care Costs in Retirement
To create a realistic plan for retirement, and make optimal financial decisions about investing for retirement, insurance coverage, and the timing of important government benefits — the starting point is to look at how much money will be coming in, and how much will be going out to pay for likely health issues.
Social Security Benefits
While Social Security benefits depend on an individual’s work history, as well as the age when they first file for Social Security, the key thing to know about this source of income is that it’s limited. The average monthly payout, starting in January 2024, was $1,907. And the maximum possible benefit amount is $3,822 per month, for those who retire at full retirement age in 2024.
Individuals can file for Social Security starting at age 62, generally speaking, but “full retirement age” is 67 for those born in 1960 and later. To get a more accurate estimate of your own benefit amount, go to SSA.gov.
Private Sources of Income
Fortunately, most retirees also have savings or a pension, which can add to their income. Nearly 80% of retirees reported having one or more sources of private income, in addition to Social Security, according to the Economic Well-Being of U.S. Households in 2022, by the Federal Reserve Board.
For example, you may have opened a retirement account like an IRA or an employer-sponsored plan, such as a 401(k), that may offer an additional source of income.
If you’re freelance or a small business owner, you may have a SEP IRA or a SIMPLE IRA — common retirement plan options for the self-employed.
The point is to have a grasp of your income sources in retirement, as well as your anticipated cash flow, so that you can cover medical costs in retirement.
Understanding Health Care Costs
As costs vary considerably depending on one’s region, age, and overall health, it can be difficult to estimate the precise amount to set aside for health care in retirement.
Start by assessing your overall health today, and speaking to your doctor(s) about any chronic conditions, genetic predispositions, and any other risk factors that could impact the care you need as you get older.
Unfortunately, there’s almost no way to predict with any accuracy the types of conditions or care you might need, or what they will cost, when preparing for retirement. But in some cases this thought exercise may help you anticipate some upcoming costs, so you can factor that into your overall estimate.
Of course, not all of your medical costs in retirement will be out of pocket; Medicare (and Medicaid, if you qualify) cover many medical expenses. But this insurance is another expense to factor in.
What Does Medicare Cost, What Does It Cover?
Medicare is a medical insurance program offered by the federal government for those 65 years and older, and those who are disabled. Medicare will pay certain health care expenses in retirement, but with restrictions. Dental, vision, and hearing care, including hearing aids, are not covered by Original Medicare, generally known as Parts A and B.
Also, as noted above: Medicare does not cover long-term care, like an assisted living or nursing home facility.
Note that you must apply for Medicare benefits within a certain window, or risk being penalized with higher premiums. Generally, the Initial Enrollment period begins three months before you turn 65, and it ends three months after the month in which you turned 65. Some exceptions apply (for example, if you have health insurance through your employer, or were affected by a natural disaster).
Be sure to check the terms that might apply to your situation to avoid a penalty.
Understanding Medicare Coverage
The following terms generally apply to those with a modified adjusted gross income (MAGI) over $103,000, or $206,000 for a married couple. If your premium is subject to an income adjustment, it could be as high as $594 per month (though according to the Centers for Medicare and Medicaid Services (CMS), the highest rate generally applies to people with incomes over $500,000, or $750,000 for a married couple).
• Medicare Part A covers inpatient hospital stays and treatment, as well as skilled nursing care (i.e. short-term rehab), limited in-home care and hospice. As long as you or your spouse had sufficient Medicare taxes withheld through your job (generally at least 10 years), you won’t pay a monthly premium for Part A. The deductible for Part A is $1,632 in 2024.
• Medicare Part B covers outpatient care, preventive care, and visits to doctors. The monthly premium for Part B is about $174 per month, with a roughly $240 annual deductible in 2024.
• Medicare Part D covers prescription drugs. The monthly premium is about $55.50 in 2024.
Medicare Part C, or Medicare Advantage Plans, is a bit of a separate case. Medicare Advantage plans are private insurance plans that are Medicare-approved, and may cover vision, hearing, or dental needs, as well as the medical basics and prescriptions covered by Parts A, B, and D. Medicare Advantage plans are optional.
While the Advantage Plans are designed to fill in certain gaps in coverage, you want to make sure the costs are manageable, and that you’re not paying for overlapping policies.
Medicare Costs
In other words, assuming at least one hospital stay that requires you to pay the deductible, the basic cost of Medicare alone is about $4,600 per year. Again, that doesn’t include:
• Vision care
• Dental care
• Hearing care or hearing aids
• Long-term care
Most people will need some or all of those types of health care as they get older, which could add to your potential out-of-pocket expenses over time, and speaks to the need for some emergency savings.
Other Ways to Pay for Health Care
In addition to Medicare, there are other ways to pay for medical expenses during retirement, including HSA accounts and long-term care insurance.
Health Savings Account (HSA)
When choosing a health insurance plan before you retire, consider one that comes with a health savings account (HSA) that may help you save money for retirement medical expenses. These accounts generally come with high-deductible health plans (HDHPs), and provide three substantial tax benefits:
• Contribution deductions
• Tax-deferred growth
• Withdrawals without taxation for qualified medical costs
The accounts take pre-tax deposits to cover health care costs that are not covered by insurance. The unspent money in an HSA rolls over from year to year. Most important, the money in an HSA account belongs to you, even when you are no longer participating in the original high-deductible plan.
What Your HSA Savings May Cover
HSA funds can be used to pay for a variety of medical expenses in retirement. For instance, prescription drugs, eyeglasses, hearing aids, and other medical supplies can generally be purchased with HSA funds.
Additionally, you can use HSA savings to cover deductibles and co-payments for medical care. Medicare premiums and long-term care insurance premiums can also be covered using HSA funds.
By utilizing catch-up payments and employer contributions, those who are already over 50 can still get the most out of these programs. A catch-up payment of $1,000 per year, in addition to the maximum contribution limit, is allowed for people 55 and older. One can use an HSA to pay for yearly physicals or other preventative exams covered by an HDHP.
A benefit of utilizing an HSA to cover medical expenses in retirement is that the money in the account can be invested, allowing it to increase in value over time. This might be helpful for people who wish to have a dedicated source of savings to cover medical bills.
It’s worth noting that funds in an HSA must be used for qualified medical expenses in order to be withdrawn tax-free. It’s a good idea to consult a tax professional or review IRS guidelines to ensure that HSA funds are being used appropriately.
Long-Term Care Insurance
Another approach to bridge the Medicare gap is to get long-term care insurance. This kind of insurance can provide a monthly benefit for long-term care, either for a few years or for the rest of one’s life.
The expenses of long-term care such as in-home care, assisted living, and nursing facility care, can be covered in part by long-term care insurance. These services are often required by people who are unable to do activities of daily living on their own, such as eating, dressing, or bathing, due to a chronic disease or disability.
That said, these policies can be complex, as well as expensive, and it may be wise to consult with a professional before purchasing coverage.
The Takeaway
Medical expenses can be a large portion of one’s retirement budget. As daunting as it may seem, calculating these expenditures ahead of time and developing an insurance and spending plan will help you save more of your retirement funds for other needs.
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FAQ
How much does the average person spend on health care in retirement?
Health care costs depend on a variety of factors, but on average a healthy person over age 65 could spend as much as $165,000 during their retirement ($330,000 per couple).
How do I prepare for health care expenses in retirement?
A few ways to prepare include making a retirement budget, saving in a retirement account, funding a health savings account while still employed, making sure to get adequate medical insurance through Medicare and/or private Advantage plans once you turn 65. You may want to consider long-term care insurance as well.
How do I save for out-of-pocket medical expenses?
Ways to save on out-of-pocket medical expenses include shopping around for the best prices on health care services, making use of preventive care services to help reduce the need for more expensive treatments in the future, and purchasing insurance to help cover unexpected medical costs. In addition, funding a health savings account (HSA) when it’s offered is a tax-advantaged way to set aside money for health care costs.
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Grad school can boost your career, but it comes at a price. Those who completed a graduate-level degree in 2020 left school with about $88,220 in student debt, on average, according to the latest data from the National Center of Education Statistics.
Even grad school loans offered by the government can be tough to repay. Federal grad PLUS loans, available to graduate and professional students for education expenses not covered by other financial aid, have a 9.08% interest rate in 2024-25, compared to 6.53% for direct loans for undergraduates.
Bills can quickly become unmanageable. A hypothetical borrower who has $88,220 in grad school debt with a 9.08% interest rate would owe more than $1,100 each month on the standard 10-year repayment plan.
Luckily, you still have loan relief and forgiveness options, especially if you work in certain professions. And with interest rates poised to fall, refinancing with a private lender may help you pay off your debt faster or lower monthly payments. If you’re struggling to pay your monthly grad school loan bill, consider these five key strategies.
1. Switch your repayment plan
Borrowers with federal loans are automatically placed on the standard 10-year repayment plan, which splits all of your debt — undergraduate and graduate — into 120 equal payments, plus interest.
Alternate repayment plans may lower your payments, especially if you have a lot of debt relative to your earnings. Income-driven repayment (IDR) plans cap your monthly bills at 10% to 20% of your income if you have graduate loans. After 20 or 25 years, the government forgives your remaining grad school debt. There are two key IDR plans currently available to most grad school borrowers:
Outside of the IDR program, the government offers two other alternative repayment plans that may lower your bills:
Extended repayment. If you owe at least $30,000, you can extend your repayment period up to 25 years on this plan. Payments can be fixed or they can increase gradually. You’ll likely pay more in total interest, but monthly bills may be smaller.
Graduated repayment. Your monthly payments will start relatively small and increase every two years over a 10-year period.
If you’re not sure which plan to choose, call your federal student loan servicer. Your servicer can walk you through the available options and help you choose a plan that lowers your monthly bills. To get a general idea of your repayment options, you can also use the loan simulator on studentaid.gov.
Private lenders offer fewer flexible repayment plans than the government. To explore your options for private grad school debt, refer to your loan origination documents and contact your lender with questions.
2. Set up autopay
Here’s an easy way to lower your monthly bill: set up automatic student loan payments. If you have federal student loans, autopay will result in a 0.25 percentage point interest rate deduction. For example, a 9.08% interest rate would become 8.83%. Over a 10-year repayment period on $88,220 worth of loans at the 9.08% rate, you’d save about $1,430 by simply enrolling in autopay.
Log into your online federal student loan servicer account to set up autopay.
Some private lenders also offer autopay discounts. Refer to your loan origination documents for details.
3. Explore other student loan forgiveness programs
IDR isn’t the only path to debt relief — there are more than a dozen student loan forgiveness programs available to borrowers. If you have graduate debt, consider these options:
Public Service Loan Forgiveness. Consider working for the government or a nonprofit organization to get loan forgiveness after 10 years. Teachers, firefighters, nurses, humanitarian aid workers, social workers and those in related professions may qualify. During the Biden administration, the average PSLF recipient has gotten $73,150 worth of student debt forgiven, according to a NerdWallet analysis of Education Department data from August 2024.
State and local student loan forgiveness programs. Depending on where you live and your profession, your state or community could forgive a certain amount of your student loan debt. For example, Vermont offers up to $5,000 in student loan repayment assistance if you recently graduated from a Vermont college or university and stay to work for an employer based in the state for at least two years. Many states also offer student loan repayment benefits for medical practitioners, ranging from therapists and social workers to dentists and surgeons.
4. Find an employer that offers student loan benefits
An increasing number of companies offer student loan benefits to employees. Nearly half of all organizations offer tuition assistance, and 9% offer student loan repayment benefits, according to the Society of Human Resource Management’s 2024 Employee Benefits Survey.
Student loan benefits vary by company. Reach out to the HR department of your current or prospective employer to learn about your options.
5. Compare refinancing options
If you’re earning a decent income and have a credit score at least in the high 600s, refinancing could get you a lower interest rate on your grad school loans. A lower rate can decrease both your monthly bills and the amount you’ll pay overall.
However, refinancing federal student loans is risky, because you’ll forfeit flexible repayment options, possible loan forgiveness and key borrower protections, like generous forbearance policies.
Only refinance your federal grad loans if you’re sure you won’t ever need these repayment features. For example, let’s say you have a steady, well-paying consulting career in the private sector. You won’t qualify for PSLF. Since you’re a high earner, an IDR plan may not lower your bill relative to the standard 10-year plan, and you may pay off your debt before reaching the IDR forgiveness threshold. In this case, refinancing to get a lower interest rate could be the best route toward managing your monthly bills and paying off your debt completely.
If you have private grad school loans, you won’t risk losing any federal protections by refinancing, because you didn’t have them in the first place. In this case, refinancing if you can get a lower rate is an easier decision.
The Federal Reserve recently cut interest rates, which could prompt lenders to lower their student loan refinance rates further. There’s no limit to the amount of times you can refinance; if you already have private student loans, consider doing so whenever you can lock in a lower rate.
To begin the process, compare rates and terms offered by different lenders and use a student loan refinance calculator. Prioritize lenders that offer a rate estimate with a soft credit check, so your credit score doesn’t get dinged.
Do you want to learn how to start a personal finance blog? Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere….
Do you want to learn how to start a personal finance blog?
Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere.
What started as a hobby turned into a full-time career, allowing me to help others take control of their finances while earning a great income.
Whether you want to help people save money, get out of debt, or learn how to invest, blogging gives you a platform to make a real impact. Plus, it’s an opportunity to earn some extra income on the side or even turn it into a full-time career.
If you’ve ever thought about sharing your own money journey and helping others improve their financial lives, now is a great time to start. In this How To Start a Finance Blog guide, I’ll walk you through how to create a successful personal finance blog, just like I did.
Quick note: I have a free How To Start A Blog FREE Course you can click here to join. 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.
My background with blogging
Over 10 years ago, I started my blog, Making Sense of Cents, on a whim. I had read an article about personal finance and thought it would be fun to share my own experience. At first, blogging was just a hobby.
I had no idea that people could make money from blogs. But after about six months, a blogger friend introduced me to an advertiser. I made my first $100, and I was hooked.
Since then, the blog has grown beyond my wildest dreams and I have earned over $5,000,000 blogging over the years. Blogging changed my life by giving me financial freedom and the ability to work from anywhere.
Now, I want to help you start your own successful blog.
What is a personal finance blog?
A personal finance blog is a website where you share tips and advice about money. It’s a place where you can help others understand how to save, budget, invest, and spend wisely.
Some examples of topics that a personal finance blog may cover include:
Budgeting
Saving for big purchases
Getting out of debt
Investing in stocks or real estate
Planning for retirement
Side hustles
Financial independence and early retirement
Student loans
Buying a home
Money and mental health
And so much more.
You can choose one or more of these topics to focus on.
Recommended reading: What Is A Blog, How Do Blogs Make Money, & More
Why should you start a personal finance blog?
I think that starting a personal finance blog has many benefits.
You can share your money tips and help others improve their financial situation by sharing advice on saving, budgeting, and investing. I have received countless emails over the years from readers thanking me for helping them change their lives, and these emails are always amazing to read.
Writing a blog also encourages you to learn more about personal finance through research, which can improve your own money skills. I have learned a lot about personal finance because I am constantly reading about it and because I am so active in the personal finance community.
Plus, you can earn extra income through affiliate marketing, ads, and sponsored posts, helping you reach your own financial goals. As I mentioned above, I have earned over $5,000,000 blogging over the years, and I really love running this online business – so it’s been a win all around for me!
For me, I love having a personal finance blog and it’s one of the best decisions that I’ve ever made in my life.
How To Start a Personal Finance Blog
Below is how to start a personal finance blog, step by step!
Here are some of the topics I write about on my personal finance blog.
1. Choose your blog topic
Choosing a finance niche is the first step in starting your personal finance blog. A niche is a specific area of focus that will help your blog stand out.
To help you decide, I recommend thinking about what you’re passionate about. Is it budgeting, saving money, or investing? By picking a topic you love, you’ll enjoy writing and sharing your knowledge.
You should also think about your expertise and experience. What do you know a lot about? If you have experience with paying off debt or improving your credit score, that might be your niche.
Narrowing down your niche helps you become an expert in that area. For example, instead of writing about all things finance, you might focus just on household budgeting tips.
Your niche can also help you make money. Advertisers and sponsors usually look for specific topics to advertise on. If your blog is about investing, you might attract ads from financial services.
Don’t worry if it seems too narrow. There are a lot of people interested in specific topics. Being specific can help you connect better with your readers.
I recommend starting a self-hosted WordPress blog through Bluehost.
2. Start a self-hosted WordPress blog
To start your personal finance blog, I always recommend that you sign up for a self-hosted WordPress site. This means you will own your blog and its content, unlike free blogging platforms.
WordPress is where a blogger writes their blog posts. It’s like the home base for your blog. You can log in, create new blog posts, format them (like adding pictures, headings, or links), and then publish them for your readers to see. WordPress makes it easy to manage everything from your writing to how your blog looks. It’s the platform where you do all the behind-the-scenes work to keep your blog running.
WordPress is a tool that helps you build and manage a blog or website without needing to know how to code. It’s super popular because it’s easy to use and has tons of features to customize your site.
WordPress is what I use for this website (Making Sense of Cents), too!
In short, WordPress is the tool to build your blog, and self-hosting gives you the freedom to control and expand it however you like!
Here are the steps to start a self-hosted WordPress blog:
Get a web hosting service. A popular choice for new bloggers is Bluehost.
Install WordPress. Most web hosts have a one-click installation after you sign up, so it’s quick and easy.
You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions if you want more detail and/or want to see screenshots of the exact things you should click on.
Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name.
3. Pick a blog name
Choosing a blog name is a big first step and it can seem hard to decide on.
Here are some tips for brainstorming a personal finance blog name:
Your blog name should tell readers what your blog is about right away.
Make it unique and easy to remember. A good blog name can help attract more readers. Try to avoid long names, as they might be hard to remember. Short and catchy names work best. Also, I recommend getting a “.com” over any of the others, like “.net”
Use tools like a domain name generator to get ideas. Check if the name is available as a domain. It’s important to have the same name for your blog and website address.
Don’t be afraid to get creative. Mix and match words until you find something that fits. Keep your blog’s purpose in mind and make sure the name reflects it.
Tell friends and family about your ideas for feedback. Sometimes, others can see things you might miss.
P.S. Don’t forget that your domain name (also known as your blog name) is free if you sign up for Bluehost for your blog! You can click here to get your domain name for free.
4. Design your blog layout
The layout of your blog is super important. It helps your readers find what they need and enjoy their visit.
You have three main options when it comes to designing your personal finance blog:
Doing it yourself
Paying a web designer for a custom design
Getting a premade blog layout – this is what I recommend new bloggers do!
Doing it yourself is usually the cheapest, but it can be quite time-consuming. Paying for a custom web design is usually expensive.
I’m a big fan of simply getting a premade design. They are more affordable than a custom design and still look really good. One premade blog design site that I recommend is Restored 316 (my favorite!). If you need to build a website that is custom, professional, and budget-friendly, they have you covered! There is no need to code or stress over graphic design, either. These templates are easy to use.
Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).
5. Create the main pages for your blog
To make your personal finance blog successful, start by setting up key pages.
These pages are important, as they help your readers navigate your site easily and find the information they need.
Your key pages usually include your:
Homepage – This is the first impression your blog readers get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about and gets them to click around your blog further. This should be welcoming and easy to navigate – make it clear what your blog is about and include links to your main blog topics.
About page – This is where you can tell your story. Share who you are, why you started the blog, and what your readers can expect. When I find a new blog, I like heading to their About page to learn more about them and their story – so don’t skip this page!
Contact page – This page makes it easy for readers to reach you. You can add a contact form or your email address (I usually prefer just listing your email address). This allows readers, potential partners, and advertisers to get in touch with you.
Privacy Policy page – This is where you explain how you collect and use data on your site. This is important for building trust and complying with legal requirements. Now, don’t worry if you don’t know what to write, there are many templates online that you can use. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosure page – If you earn money through affiliate links or sponsored posts, let your readers know. This keeps your blog transparent and trustworthy.
There are other pages that you may want to add as well, it just depends on what you want and how detailed you want to get. The above is a great starting point.
Other pages that you can add down the line (you don’t want to overwhelm yourself too much, especially in the beginning) may include a Work With Me page (if you offer any freelance services), FAQ page (to answer common questions readers may have), Resources page (to showcase the products that you use), and a Press page (to show your readers where you have been mentioned in the press).
6. Start social media accounts for your blog
Creating social media accounts can help your blog grow because it can make it easier for more people to find your blog.
The social media accounts that you can start include:
Facebook
Pinterest
Instagram
Twitter
TikTok
Now, you definitely do not need to be active on all of these social media accounts, but I do usually like to claim my blog name on each so that no one else can take it.
Once you have your social media accounts set up, I also recommend that you add the links to your blog’s homepage so that your readers can easily find you on social media.
7. Create a content plan
Your content plan is what you’ll write about on your blog.
First, think about who your audience is. Do they want to save money, get out of debt, or invest wisely? Knowing this helps you create content that speaks to their needs.
Next, brainstorm topics that fit your blog. You can start with basic personal finance tips, budgeting hacks, or ways to save more money each month.
Once you have a list, set up an editorial calendar where you think about how often you’ll publish new posts. It could be once a week, twice a week, or even daily. Consistency is important and I highly recommend writing at least one blog post each week.
Plan ahead by writing down specific ideas for each post. This helps you stay organized and makes sure that you always have something to write about.
Now, your blog content plan doesn’t have to be crazy; it can literally just be a list of blog posts – it all depends on how organized you want to be. For example, you can just make a list of blog posts that you want to write such as:
10 Simple Ways To Save Money Every Month
How To Create a Budget That Actually Works
Beginner’s Guide To Paying Off Debt Faster
How To Build an Emergency Fund on a Tight Budget
Smart Ways To Save for a Vacation Without Stress
Investing 101: How To Start With Just $100
5 Budgeting Mistakes To Avoid if You Want To Save More
How To Meal Plan and Save Money on Groceries
Tips for Teaching Kids About Money
How To Stop Impulse Buying and Save More
Side Hustles That Can Help You Pay Off Debt
How To Improve Your Credit Score in 6 Months
Saving vs. Investing: What’s Best for Your Goals?
Frugal Living Tips That Don’t Feel Like Sacrifice
How To Use Cash Envelopes To Control Spending
These ideas could easily fill up your editorial calendar and help you stay organized and consistent with your posts!
8. Start writing blog posts
Once your blog is set up, it’s time to write your first blog post!
Below are some tips for writing your first personal finance blog post:
Write in a way that is easy to understand. Use short sentences and simple words. Remember, you want to help and not confuse your readers.
Add personal stories or experiences. This makes your blog more relatable and interesting. People love reading about real-life situations.
Break up your text with headings, bullet points, or images to make your posts easier to read. Don’t forget to proofread your work before you publish it.
Ask your readers questions at the end of your posts. This can encourage them to leave comments and interact with your blog.
9. Find ways to make money with your money blog
There are several ways you can earn money with your personal finance blog.
One way is through affiliate marketing. You can partner with companies that have affiliate programs like Amazon. When someone buys an item through your link, you earn a commission. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
Ad revenue (display ads) is another option. You can place ads on your blog using services like Google AdSense, Mediavine, or Raptive Ads. When visitors see or click these ads, you make money.
You might also explore sponsored posts; this is where you partner with a company and they pay you for a review, a mention, or a blog post that talks about their product.
Selling products/services that you create is a good strategy too to make money with a finance blog. You can sell printables, write ebooks, provide consulting services, or teach online courses.
As you can see, there are many ways to make money with a personal finance blog. For me, I like to do a little bit of everything so that I am diversified with my income streams from my blog.
10. Grow your personal finance blog
To get readers to your finance blog, you need to promote it.
Some ways to grow your personal finance blog include:
Start by sharing your blog posts on social media platforms like Facebook, Pinterest (I recommend that you create a new Pinterest pin for all of your blog posts), and Instagram.
Guest post on other finance blogs. This can introduce you to new readers who might be interested in your content. For example, you could guest post and write about how you paid off your debt.
Email marketing is another effective way. I highly recommend that you find ways to get readers to subscribe to your email newsletter so that you can send updates and share new blog posts regularly. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Engage with your readers by responding to their comments and emails. Building this relationship can encourage them to share your blog with others. I ALWAYS respond to comments, emails, and messages because I think it’s the nice thing to do when your readers are taking time out of their day to write something to you.
Use search engine optimization (SEO) techniques and keyword research. This helps your blog show up in search results when people look for topics you’ve written about.
Promoting your blog takes time and effort. It takes time to grow a new personal finance blog, so try not to be too sad in the beginning if it takes time – that is completely normal.
Frequently Asked Questions
If you’re thinking about starting a personal finance blog, you might have some common questions. Here’s what you need to know to get going.
How much money do personal finance bloggers make?
The amount of money that a personal finance blogger can make varies widely. I have made over $5,000,000 blogging over the years, and I know many others who make a full-time income from their personal finance blog as well. Successful bloggers can make thousands of dollars each month through ads, affiliate marketing, sponsored posts, and digital products.
Is it too late to start a personal finance blog?
No, it’s not too late to start a personal finance blog. There’s always room for fresh voices and new perspectives in personal finance.
Do I have to have a degree in finance to start a personal finance blog?
You don’t need a finance degree to start a personal finance blog. Many bloggers share personal experiences, research, and advice.
How can I make my personal finance blog stand out from others?
To make your personal finance blog stand out from others, I recommend that you focus on your unique experience with the topic that you are writing about. For example, you could share personal stories and actionable advice for what you did to pay off your student loans or to start investing.
Is a personal finance blog profitable?
Yes, a personal finance blog can be profitable. I have made over $5,000,000 from my personal finance blog over the years, all by working from home on the internet.
How To Start a Finance Blog – Summary
I hope you enjoyed my article on how to start a finance blog.
I’ve been running this finance blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.
Starting a personal finance blog changed my life, and it could do the same for you. Sharing my money-saving tips not only helped others but also led me to financial freedom and a career I love.
There are so many different finance niches that you could write about, whether it be budgeting tips for beginners or financial advice for those who want to retire early. Plus, you don’t need to be an expert to start a personal finance blog – many people want to hear about real people’s real experiences and insights, including their journey with personal finance (so that they can learn real tips!).
Whether you’re looking to earn a little extra or turn blogging into a full-time job, this guide will help you start a successful personal finance blog that makes a real impact.
Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.
Do you want to learn how to start a personal finance blog?
A debt validation letter is a document — typically from a collections company — that shares the recorded details of an outstanding debt. This letter contains the amount you owe, the name of the original creditor, the date by which you’re required to pay the collections company, and the instructions for how to dispute it. It should also advise you that, if you plan to dispute the debt, the dispute must be filed within 30 days.
Obtaining a debt validation letter is an important step toward disputing a fraudulent debt or repaying a legitimate one. Read on to learn more about how a debt validation letter works and what to do if you receive one.
Defining a Debt Validation Letter
If a debt collector contacts you by phone, you should ask them to contact you in writing instead. That way, you will have an easy-to-reference document in hand, and you may be able to protect yourself from too frequent debt collection calls as well as from scammers.
Once you make your request, the collections agency is required to send you a debt validation letter, which lists the following information:
• Debt collections agency’s information
• Original creditor’s information (for example, a credit card company)
• Account number associated with the debt
• Amount owed
• Information about how to file a dispute, including a tear-off form to make taking the next step easier
Once you have a debt validation letter, you can take a closer look to ensure you recognize the original debt. Then you can make a plan to repay it if it’s legitimate — or begin the dispute process if you have any doubts.
Purpose and Legal Basis
No matter what type of debt they’re seeking repayment for, collections agencies are legally required to offer debt validation letters. These ensure they’re seeking remuneration for legitimate debts only.
There are laws governing how often a debt collections agency can contact you. According to the Debt Collection Rule, which is part of the Fair Debt Collection Practices Act, it’s a violation of the law for debt collectors to call you more than seven times within a seven-day period or within seven days after getting you on the phone about a specific debt.
However, these restrictions do not apply to text messages, emails, or even contact via social media. Fortunately, though, such messages are required to offer a simple opt-out option.
When to Request Debt Validation
If you receive a validation of debt letter and you’d like to file a dispute, you can send a letter requesting proof that you owe the debt in the first place. The collections agency must be able to provide this proof, which is called debt verification, in order to continue to pursue your payment or report the debt to credit bureaus. You can also use this moment to formally ask the creditor not to contact you in any way other than written letters.
However, again, it’s critical that you ask for debt verification in a timely manner — as soon as possible after receiving the original debt validation letter. Debts that are not disputed within 30 days are presumed to be valid by the collector, so be sure to take care of the matter as quickly as possible.
Recommended: How to Pay Off Debt in 9 Steps
Debt Validation Process
Once you request debt verification, the collector must provide proof that you owe the original debt. This may include documentation from the original creditor. Some key next steps to know:
• If the debt collections agency cannot provide this proof, they are legally required to stop pursuing your payment.
• If they continue to do so, or report an invalid, fraudulent debt to the credit bureaus, damaging your credit history and score, you can sue them.
Benefits of Debt Validation Letters
If funds you legitimately owe have gone to collections, paying the debt off as quickly as possible is usually the best policy. Having a debt in collections can be very bad for your credit score, and collections agencies may be able to charge additional interest or even take you to court.
If you do need to pay off the debt, you can explore your options, such as finding a budgeting method that suits your needs or taking out a personal loan.
However, if the debt is not legitimate or the collections agency can’t definitively prove you owe the debt, requesting validation and verification can help you successfully file a dispute. This can also help you avoid paying money you don’t owe (as well as ongoing negative impacts to your credit history).
Recommended: Becoming Debt-Free
Drafting an Effective Debt Dispute Letter
A properly executed debt dispute letter should make it clear that you do not recognize the debt and believe it is not yours in the first place. You should also request documentation that proves you incurred the debt. The Consumer Financial Protection Bureau offers a letter template that you can use in this scenario, which makes the process as simple as personalizing the letter, printing it out, and sending it to the agency.
The Takeaway
A debt validation letter is a document that lists how much you owe, to whom you owe it, and who is trying to collect it. It also informs you about your right to dispute the debt. Once you receive a validation of debt letter, you can begin the dispute process by requesting debt verification. In addition, a debt validation letter can help you move forward if you are dealing with too frequent contact from a creditor or believe a scam may be involved.
Becoming debt free can be challenging — but it’s possible. One helpful tool could be a personal loan.
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FAQ
Do I have to pay a debt if validation is not provided?
If a collections agency contacts you, you should request a debt validation letter — because the agency is required by law to produce validation and verification if they are to continue to pursue your repayment. Additionally, having a debt validation letter in hand is the first step toward filing a dispute if it turns out the debt is illegitimate.
What happens if the creditor doesn’t respond to the validation letter?
If a collections agency does not respond to your request for a debt validation letter, it may be a scam — as all legitimate collections agencies are legally required to validate debts. If the organization continues to harass you, you may want to seek legal counsel in order to ask them to cease and desist.
How long does a creditor have to respond to a debt validation request?
First things first: As the consumer receiving a debt validation letter or notice of collections attempts, you must request debt verification or dispute the debt within 30 days. While there’s not a specific set timeline in which a collector must respond to your debt validation request, if they can prove the debt, their motivation for repayment means you’ll probably hear from them sooner than later.
Photo credit: iStock/sturti
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There is apparently a “home cost crisis,” and a new fintech company called Mesa is looking to solve that.
It’s no secret that home prices are through the roof, and when coupled with much higher mortgage rates and things like skyrocketing homeowners insurance, it can put homeownership out of reach.
Or at the very least, make it a struggle for the average American to keep up. To ease this burden, the company has rolled out a suite of products to make homeownership a little more affordable.
Perhaps ironically, this new company operates out of Austin, Texas, one of the hardest hit housing markets nationwide.
The popular metro has suffered from a glut of housing supply as many remote tech workers packed their bags and moved back to wherever they came from.
What Is Mesa?
Referred to as the “first homeowner membership platform,” Mesa is actually a group of offerings aimed at making homeownership cheaper and more valuable.
This means putting better mortgage deals in front of prospective home buyers and giving them rewards when they make housing-related purchases.
Their first two products are the Mesa Mortgage Marketplace and the Mesa Homeowners Card.
The marketplace appears to operate similar to the Zillow Mortgage Marketplace. Prospective home buyers and existing homeowners looking to refinance can compare lenders in one place.
And aside from maybe scoring a lower rate and/or reduced closing costs, they can earn a portion of the loan amount back in rewards points.
Those who take out a loan via the Marketplace get 1% back in the form of rewards.
For example, a $500,000 loan amount would result in 500,000 rewards points, which would be worth $5,000.
Those points could then be redeemed for things like closing costs on the loan, or for travel, or even reinvested back into the home via an extra mortgage payment.
It’s important to note that Mesa is not a mortgage lender or a mortgage broker, but rather provides advertising for lenders and brokers via the marketplace and earns a fee.
The Mesa Homeowners Card
Their other main product at launch is the “Mesa Homeowners Card,” which they refer to as the first premium credit card designed specifically for homeowners.
We’ve seen other homeowner-centric credit cards in the past, but this one is apparently premium for one reason or another.
Like other cards before it, cardmembers can get rewarded when they use the card to make monthly mortgage payments.
But it goes a step further by offering bonus points on things like HOA fees, utilities, home repairs, and other home-related services like insurance.
Per TechCrunch, you’ll earn 1X when using the card to make mortgage payments, 2X on gas and groceries, and 3X in the home services category.
These points will be eligible for gift card redemptions, mortgage payment redemptions, or transfers to airline & hotel partners.
My understanding is you’ll be able to use the Mesa Homeowners Card to make your mortgage payments, despite credit card issuers commonly not allowing this.
Mesa has partnered with Visa on the deal and has a team that formerly worked at companies like American Express, Capital One, and Bilt, the latter of which wanted to reward customers for paying the mortgage with a credit card.
Bilt currently lets cardholders pay their rent and earn cash back without being subject to a transaction fee.
They had planned to do the same for mortgage payments, but it never came to fruition. Will Mesa succeed where others failed? It remains to be seen, but it has always been a challenge.
Ultimately, mortgage lenders don’t love the idea of homeowners paying the mortgage with a credit card, and for good reason.
So it’s possible Mesa will cut a check or send an ACH if you use their credit card to pay your loan servicer, to ensure payment is accepted.
The Mesa Homeowners Network
Lastly, Mesa has partnered with “brands you love” to provide exclusive discounts and offers.
This might include discounts for memberships at Costco and at other businesses that offer homeowner-centric services.
In addition, the company plans to expand their membership rewards to HELOC originations, home warranty plans, insurance, and other financial products for homeowners. And an app is coming soon as well.
The goal is to make homeownership both more affordable and rewarding by offering discounts and cash back on all related expenses.
Knowing today’s cost pressures go beyond the principal and interest on the mortgage, this could provide some relief to households who are stretched.
For me, the question mark remains whether they’ll be able to let users pay the mortgage with the credit card.
If they’re able to pull that off, it might be worthwhile. If not, you could argue that credit card points earned with other issuers could hypothetically be cashed out and applied toward the mortgage the same way.
For example, I can currently cash out by Chase Ultimate Rewards at a penny apiece and apply extra payments toward my mortgage. But I can’t use my Chase card to pay the mortgage.
So they’ll need something to truly differentiate and add value versus existing options. I’d probably consider it if they let me pay the mortgage each month.
Aside from earning 1% back each month, I’d get a grace period to float the mortgage payment before the payment was due.
The product is currently waitlisted and you can sign up via their website if interested.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Undergraduate students who have financial need can apply for the federal Pell Grant each year to receive aid for their education. If you meet the Department of Education’s requirement for the grant program, be aware that there is a Pell Grant lifetime limit. Eligible students can receive a Pell Grant for about six years, or 12 terms of school.
Once you’ve reached the maximum number of times you can get a Pell Grant, you’ll be ineligible for future awards.
What Is a Pell Grant?
A Pell Grant is a government-sponsored program that offers aid to undergraduate students who demonstrate exceptional financial need. The grant is not available to graduate and professional students. In general, students who have previously earned a bachelor’s degree or higher are not eligible for a Pell Grant.
Students applying for Pell Grant funds for the 2022-23 academic school year can receive up to $6,895.
How many Pell Grants you can get depends on factors including your financial need, your school’s confirmed cost of attendance, whether your enrollment status is part-time or full-time, and how long you plan to attend school in each year.
Upon completing your degree program, Pell Grants generally do not need to be repaid.
FAFSA
To learn if you’re eligible for a Pell Grant, you need to complete a Free Application for Federal Student Aid (FAFSA®). The information on this application is used to determine your eligibility for the Pell Grant as well as other federal, state and school-provided financial aid.
You can submit the FAFSA as early as October 1 before the academic year for which you’re applying for aid. The deadline to submit your FAFSA for the 2022-2023 school year is June 30, 2023. Some aid is awarded on a first-come-first-served basis, so it can behoove you to fill out your FAFSA earlier rather than later.
Recommended: Pell Grant vs FAFSA: What Are the Differences?
Eligibility
The government determines whether an undergraduate student meets the financial need requirement for a Pell Grant by evaluating the student’s Expected Family Contribution (EFC). This is an estimation of how much a student and their family can be expected to pay toward college and it is calculated using information provided on the FAFSA.
For the 2022-23 school year, the maximum EFC for Pell Grant eligibility is $6,206. Students who are at or below this threshold might be able to receive Pell Grant aid.
Students who have been incarcerated in a federal or state institution, or have an involuntatry civil commitment for a sexual offense are ineligible for Pell Grant aid.
How Many Pell Grants Can You Get?
You can apply for a Pell Grant for multiple academic years as long as you maintain your eligibility. As previously mentioned, students can receive the Pell Grant for up to 12 semesters or terms, or approximately six years.
How Lifetime Eligibility Works
Each award year is from July 1 of a calendar year to June 30 of the following year. In an award year, you can receive up to 100% of your eligible Pell Grant award; the Pell Grant lifetime limit that you can use is 600%.
In some situations, you might receive up to 150% of your Pell Grant aid (e.g. if you’re enrolled in fall, spring, and summer terms, full-time). Similarly, you might not always use 100% of your Pell Grant for an award year. This might come up if your enrollment dropped from full-time to part-time, for example.
Calculating Your Pell Grant Usage
To determine the Lifetime Eligibility Used (LEU) on your academic aid account, the Department of Education looks at how much Pell Grant funding you’ve received in a given award year compared to your total available award for that year to arrive at a use percentage.
It then adds your used Pell Grants for each award year to determine whether you’ve reached the lifetime limit for the grant program. If you’d like to track your own LEU percentage, log into your StudentAid.gov account and view the “My Aid” overview.
Alternatives to the Pell Grant
If you’ve reached your Pell Grant lifetime limit, or don’t qualify for the Pell Grant, but still need financial assistance for school, there are other options to consider.
Other Grants
Pell Grants are just one of a handful of grant programs offered by the federal government. The Department of Education also provides:
• Federal Supplemental Educational Opportunity Grants
• Iraq and Afghanistan Service Grants
• Teacher Education Assistance for College and Higher Education (TEACH) Grants
For the most part, grants don’t need to be repaid, except in certain circumstances. Additionally, non-federal grants are provided to students, based on need or merit. These grants are provided by some states and schools, as well as private organizations like nonprofits, businesses, community groups and professional associations.
Recommended: FAFSA Grants & Other Types of Financial Aid
Scholarships
Another financial aid option that you won’t have to repay after graduating are scholarships. Scholarships are earned on merit or are provided to students who are in financial need. They are often one-time awards that are given by similar entities as grants.
In some cases, there may even be unclaimed scholarships that students may be able to apply for in order to bolster the money they have to pay for college.
Recommended: The Differences Between Grants, Scholarships, and Loans
Work-Study
Participating in a federal Work-Study program allows students to earn income that can go toward college costs. Employers that participate in the program might be on campus or off campus, and jobs offer part-time hours.
Your school provides your payment, directly, unless you request otherwise. How much you can earn through the program depends on your financial need, your school’s available funding, and when you apply.
Eligibility for the program is determined by information provided on the student’s FAFSA.
Federal Student Loans
The FAFSA is also used to determine borrower eligibility for Federal Direct Loans. The Department of Education offers undergraduate students loans that are Direct Subsidized or Unsubsidized Loans. The government covers interest on subsidized loans while the borrower is enrolled in school and during qualifying periods of deferment. With an unsubsidized loan, borrowers are responsible for paying accrued interest.
Graduate students are able to borrow Direct Unsubsidized Loans and PLUS loans. PLUS Loans are also available to parents of dependent students.
Federal loans must be paid back with interest, but they offer low fixed interest rates. They also offer student borrowers invaluable benefits, like income-driven repayment plans and generous deferment and forbearance options.
Private Student Loans
Some students find that they still need additional funds for school, despite receiving federal financial aid. If you’ve exhausted your federal aid options and already applied to private scholarships and grants, this private student loan guide could help find options to get you the money you need.
A private student loan must be repaid, plus interest charges, and is provided by nonfederal lenders, like banks, online lenders, and other private institutions. Lenders require applicants to undergo a credit check which determines your eligibility, interest rate, and loan terms.
Borrowing requirements and offers often vary between lenders so always shop around to find a competitive rates and terms for undergraduate private student loans.
The Takeaway
Generally, if you maintain Pell Grant eligibility throughout your college career, you can receive a maximum Pell Grant lifetime limit of six years to receive aid. However, you might reach this limit in a shorter or longer time, depending on your level of enrollment each award year.
If you still need to fund the gap between your existing financial aid and your school’s certified cost of attendance, a SoFi private student loan can help. It’s an easy and fast way to finance your education and you can get pre-approved online in three minutes.
Find out what rates you qualify for in just a few minutes.
FAQ
Can you hit your Pell Grant lifetime limit early?
Yes, it’s possible to reach your Pell Grant lifetime limit before the typical six-year timeline if you take on additional academic terms during an award year. For example, if you enrolled in summer courses and received Pell Grant aid for that period.
Is the Pell Grant disbursed every semester or every year?
Your school will typically disburse Pell Grant awards in a minimum of two disbursements at scheduled intervals throughout the award year.
Is there an age limit for filling out FAFSA?
No, there is no age limit to submit a FAFSA. Some financial aid programs, like the Pell Grant, have restrictions on the academic status of aid recipients, such as whether they’re enrolled as an undergraduate or post baccalaureate student.
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SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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The New York Yankees credit card could be a home run for die-hard fans of the Major League Baseball team.
Image courtesy of Bread Financial.
Issued by Comenity Bank, a subsidiary of Bread Financial, the $0-annual-fee card offers promotions and benefits that could be useful for frequent Yankees-game attendees. Plus, it rewards everyday spending as well.
Still, MLB fans looking for more flexible rewards and redemption options — not to mention more baseball-related perks — might be better off with a card issued by Capital One, the official bank and credit card partner of Major League Baseball.
Here are five things to know about the New York Yankees Mastercard.
1. Yankees fans can score solid rewards
When you use the New York Yankees Mastercard, you’ll earn the following (not as cash back, but as points in the Pinstripe Rewards program):
5x points at Yankee Stadium concession stands.
3x points at restaurants, bars and gas stations, and on rideshare and mass transit.
1x back on all other purchases.
Given concession prices, frequent Yankee Stadium visitors might welcome that 5x reward rate. On top of that, the card’s 3x categories will help holders rack up points for some everyday spending. Those categories — bars, gas, rideshares and mass transit — are also particularly useful for pre- and postgame transportation and activities.
The caveat here, however, is that rewards are earned as Pinstripe points, rather than cash back. Every 100 points you earn will get you $1, meaning points are worth a penny each. That’s good value, but even season ticketholders might need a long while to rack up a meaningful amount of rewards.
🤓Nerdy Tip
You’ll become a member of the Pinstripe Rewards program when you get the New York Yankees credit card. The rewards program is only for Yankees credit card members.
2. Cash-back redemption is flexible …
Pinstripe points can be redeemed for more than just Yankees-related options. You can redeem them for cash back in the form of a direct deposit or statement credit to your account, starting at $1 or 100 points. This is a significantly lower redemption minimum than what some other cards require.
Note that statement credit may take up to six business days to post to your account and that points expire after five years.
3. … But other redemption options feature tough catches
Cardholders also have the option to redeem points for Yankees game tickets, memorabilia and experiences. But there are some hoops to jump through.
Game tickets. There’s no minimum points requirement for redeeming this way, but there are some stipulations that come with game tickets redemptions. You can only redeem points for two game tickets at a time, and those tickets must be for seats in designated areas at select home games played at Yankee Stadium during the regular season. Designated seating areas vary by game but cardholders usually have the choice between main and field level seating locations, according to a representative from Bread Financial. Note that you must redeem tickets through the Yankees account center. You’ll receive tickets within 48 hours before your game starts through the MLB Ballpark App or through a Yankees Ticketmaster account — both of which are free to join.
Yankees memorabilia and experiences. Memorabilia includes items like collectible Yankees baseballs, mini bats and helmets, merchandise and limited-edition items. Experiences include participating in the ceremonial first pitch, on-field batting practice viewing, and game-day stadium tours. Like game ticket redemptions, you don’t need a certain amount of points to redeem for either of these options, but costs will vary depending on the item or experience. As of this writing, participating in a ceremonial first pitch will cost you around 120,000 points, while batting practice viewing and stadium tours plus a pair of tickets will cost around 18,000 each, for example.
4. It offers special promotions for new applicants
New cardholders can earn:
Two free tickets when you spend $100 on the card within 30 days of account opening.
A $50 statement credit when you spend $1,000 outside of Yankee Stadium.
Two free game tickets can be an attractive deal for fans. But again, there are some caveats. Complimentary tickets apply only to home games played at Yankee Stadium and cannot be used for opening day games, the traditional old-timers’ day game, or any home games against the Boston Red Sox, Chicago Cubs, Los Angeles Dodgers and New York Mets. Plus, you can only redeem these tickets for seats in designated seating areas — which are typically located between the foul poles in the outfield section. So if you’re hoping to snag seats behind home plate or near the dugout, for instance, you might be better off redeeming points for cash back and buying your tickets outright.
Note that you can only redeem the free tickets online, and you must have a Ticketmaster account to redeem them.
Also, if you plan on opening the card to score free tickets for an upcoming game, keep in mind that the card’s terms say that new cardholders will receive their ticket redemption code within 60 days of account opening and that the code is not valid for previously purchased tickets. (Note: According to a representative from Bread Financial, tickets are typically fulfilled within days of earning the offer.)
5. It doesn’t hold up against simple cash back
Yankees fans can certainly rack up decent rewards with the New York Yankees credit card. But a number of general cash-back card options can offer more flexibility.
Notably, Capital One is MLB’s official bank and credit card partner, which means all eligible Capital One rewards cardholders can redeem their rewards for MLB tickets from all 30 teams, from opening day through the baseball postseason — including tickets to the World Series. These baseball-related redemption options are more varied and less limiting than what the New York Yankees Mastercard offers.
With an eligible Capital One card, you’ll also get discounts on MLB TV, items purchased though the MLB shop and on visits to the Jackie Robinson museum in New York City, as well as access to VIP experiences like private on-field sessions and batting practice.
More specifically, the $0-annual fee Capital One SavorOne Cash Rewards Credit Card could be a lucrative option for MLB fans. It earns 3% cash back on dining, eligible streaming services, grocery stores and entertainment — and tickets to sporting events qualify for that “entertainment” category.
In some cases, in fact, you might be able to do even better than that. That’s because the card also earns 8% back on purchases through Capital One Entertainment, a portal that includes tickets to sporting events. Rewards earned with this card can also be redeemed as cash back in any amount, and again, this is in addition to the aforementioned MLB-related benefits that Capital One offers cardholders.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
When dealing with debt collectors, you should verify the debt is yours, know your rights and negotiate with the debt collector.
Being in debt can be stressful, and persistent calls from collection agencies can definitely add to that pressure. If you fail to make payments on your debt over a period of time — often three months or more — your debt will likely go to a collection agency which will contact you for payments. Avoiding a collection agency can negatively impact your credit, but knowing your rights and how to deal with debt collectors can help you control the situation.
Nonetheless, there are a few simple yet important steps to take whenever you’re contacted by a debt collector. Read on to learn more about the collection process, your rights and effective ways to deal with debt collectors.
Step 1: Know (and enforce) your rights
Debt collection agencies are bound by the Fair Debt Collection Practices Act (FDCPA), which protects consumers from many behaviors that were once common in the debt collection industry.
For example, the FDCPA prevents debt collectors from harassing or threatening you. It ensures that debt collectors disclose why they are calling you and that they offer validation for the debt when requested. Additionally, this law protects your privacy when collectors call other people about your debt, and gives you the right to request that debt collectors stop contacting you.
Here are a few other ways that debt collection laws regulate debt collectors:
Communication restrictions
Legally, debt collectors can only call you between the hours of 8 a.m. and 9 p.m. They also cannot call you at work if you ask them to stop. According to the FDCPA, debt collectors must provide you with a written notice within five days prior to contacting you.
Disclosures
In the written notice, debt collectors must inform you of the original creditor, the exact amount owed and your right to challenge the debt in writing within 30 days. They also are not allowed to disclose information about these debts to your family members or employers.
Behavior
Debt collectors cannot (and should not) use profane language, threaten you, make false claims about the consequences of nonpayment or lie about what you owe. They are not allowed to harass you in any manner.
If a debt collector violates any of these rules — or you believe that the debt is fraudulent — you can file a complaint. The Federal Trade Commission (FTC) accepts reports of fraud, and the Consumer Financial Protection Bureau (CFPB) enables you to submit a complaint about unlawful behavior by collection agencies. In 2019, the CFPB handled 75,200 complaints on debt collection, and 99 percent were handled by the end of the year.
Once you know your rights as a consumer, you’ll have the communication tools you need to verify the debt.
Step 2: Verify the debt is yours
When a debt collector contacts you, the first step is to verify that the debt is yours. This process, called debt validation, forces the collection agency to provide documentation that shows the debt belongs to you. In general, a collection agency must send you a validation letter when requested.
There are a few important reasons why you should always verify the debt:
Avoid scams. By verifying that the debt is yours and that the collection agency is authorized to accept payment, you can avoid paying scammers for illegitimate debt.
Avoid making an uninformed decision. Instead of responding immediately to the debt collector over the phone, you can look at the validation letter and consider your options with more time.
Avoid paying twice. After receiving a validation letter, you may realize that you have already paid the debt in question. In this case, you can challenge the debt or initiate a credit dispute.
Additionally, it’s important to note that debt is subject to a statute of limitations, which means that debt is only valid for a certain time. The statute of limitations will vary based on the type of debt and the state that you are in, so you may want to consult a credit repair professional to determine if the debt is still valid.
If the debt is legitimate, you’ll need to make a plan to work with the collection agency to pay the debt off. Before doing so, make sure that you know your rights, which are protected by federal law.
Step 3: Communicate wisely and effectively
While you should always remain professional when speaking with debt collectors, you’ll also want to be strategic in your responses. Here are a few do’s and don’ts to keep in mind:
Do: Request communication in writing if you prefer emails and letters over phone calls.
Don’t: Admit the debt is yours unless you’re absolutely certain. You can kindly let them
Do: Ask them to validate the debt in writing. This gives you a paper trail and allows time to investigate the debt’s legitimacy.
Don’t: Yell or be rude. Instead, try your best to remain polite and professional even if the collector displays the opposite behavior.
Simply informing them of your preferred form of communication should suffice. Remember, you can ask debt collectors to stop contacting you at your workplace. Understanding your rights is key to taking control of the situation and avoiding feeling pressured.
Step 4: Negotiate with the debt collector
While it is your responsibility to pay legitimate debts, you’ll want to find a way to work with the debt collector to find an approach that works for your financial situation. Debt can be a burden, but it’s important not to ignore debt collectors, as they may be able to take you to court for failing to pay.
Here are a few things to keep in mind when negotiating with a debt collector:
You may be able to set up a payment plan. In general, debt collectors want to start collecting something from you, so many are open to setting up a payment plan that works with your budget.
You can sometimes settle a debt for less than you owe, but there are drawbacks. You’ll likely need to make a lump-sum payment, and your credit score may drop. Also, know that the amount of debt forgiven may be treated as taxable income.
You should get everything in writing. Oral agreements are generally not enforceable, so make sure to get any agreement for a payment plan or debt settlement in writing before making any payments.
Once you negotiate your debt, you’ll want to begin making payments to get your finances back on track. There are many different strategies for paying off debt, like the snowball method, the avalanche method and the equality method.
Step 5: Seek help when you need it
Unfortunately, even after paying off your collection account, negative items may remain on your credit report for up to seven years, which can continue to impact your credit score over time. If you’re feeling overwhelmed with debt or contacts from debt collectors, there’s help available.
Many people who have collections on their credit report can benefit from working with credit repair consultants, who can assist with short- and long-term strategies for rebuilding your score. Credit repair companies specialize in finding and challenging errors on your credit report, helping remove inaccurate information.
Credit repair assistance
While you’ll likely need to pay back legitimate debt, you should verify the origin and amount before paying a debt collector. Additionally, you can hold debt collectors accountable under federal laws and even negotiate with them. Just be sure to get any agreement in writing.
If you’re concerned about inaccurate or unfairly reported amounts in collections on your credit report, you may need credit repair assistance. With the help of a reputable credit repair company, you’ll have experienced professionals in your corner to challenge inaccuracies and negative marks on your credit report.
With nearly 20 years of experience in credit repair, Lexington Law Firm has represented over 10.8 million people since 2004. Sign up for a free credit assessment today to see if credit repair is right for you.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.