By Peter AndersonLeave a Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 28, 2009.
No matter how much you want, laziness won’t help a bit, but hard work will reward you with more than enough. Proverbs 13:4
I know there are days where I just want to lay on the couch, play a video game and not do a thing. This verse tells us, however, that laziness won’t help us a bit in anything we do. Hard work will reward us, and we will be given more than enough.
I’ve been thinking lately about the value of a college education. I earned a B.A. in Psychology from Willamette University in 1991 (with a minor in English Lit, and almost another minor in Speech Com). What have I done with this degree? Almost nothing. Yet I do not regret the money and years I spent working to earn it.
The Financial Value of a College Degree
Does earning a college degree make a difference to your future? Absolutely. The facts are striking. On average, those who have a college degree earn almost twice as much as those who do not. According to the U.S. Census Bureau:
Adults with advanced degrees earn four times more than those with less than a high school diploma. Workers 18 and older with a master’s, professional or doctoral degree earned an average of $82,320 in 2006, while those with less than a high school diploma earned $20,873.
Workers with a bachelor’s degree earned an average of $56,788 in 2006; those with a high school diploma earned $31,071. This flurry of numbers makes more sense when viewed in a table:
Education
Avg. Income
Increase
Drop-out
$20,873
—
High school
$31,071
48.9%
College
$56,788
82.8%
Advanced
$82,320
45.0%
Completing college is huge. Over a life-time, a college degree is generally worth almost a million dollars. That’s money that can be used for saving, for fun, for whatever. The financial benefits of a college education are significant, and they’re very real.
Other Benefits of a College Degree
Obtaining a college degree isn’t just about making more money. According to Katharine Hansen at Quintessential Careers, a college education is associated with other benefits, such as:
Longer life-spans
Greater economic stability and security
More prestigious employment and greater job satisfaction
Less dependency on government assistance
Greater participation in leisure and artistic activities
Greater community service and leadership
More self-confidence
A college education also gives you a broad base of knowledge on which to build. It teaches you to solve more of life’s problems. It gives you future reference points for discussing art, entertainment, politics, and history.
College offers other learning opportunities, too. Much of what I gained in college came from learning outside the classroom, from participating in clubs and other campus organizations. Many degree programs allow students to “test-drive” careers through internships and practicums.
The Label on Your Degree Does NOT Matter
I asked Michael Hampton, director of career development at Western Oregon University, what advice he would offer a student who is deciding whether or not to attend college. He replied:
Unless you are going to be an engineer, architect, teacher, lawyer, the label on your degree does not matter. The degree is a check-mark (as opposed to the focus) in most job requirements. Many job ads will state: “Business, Communications or other degree required.” Most folks have the “other”.
I have a BA in Speech, Telecommunications & Film. As a television news photographer, youth director, communications director, substitute school teacher, sports marketing manager, career programs coordinator, no one ever said to me: “You know what? We would like to hire you, but we’re not sure what that label is on your degree.”
Honestly, at the University of Oregon, I was looking for an “easy” degree because I was not a book-smart student. I was able to take mostly film & television classes to earn my BA, so I signed up. The experiences I took advantage of (internships, volunteering, and part-time jobs) in college set me up to be marketable to employers. Again, the jobs I went after required degrees, but the label on the degree was not a barrier.
Here are some more prominent examples:
What was Alan Greenspan‘s major? Econ, but he studied music first
What was Michael Jordan‘s major? Math, then Geography (dropped out to play professional basketball, later returned to earn his degree)
What was Lisa Kudrow‘s major? Biology
What was Cindy Crawford‘s major? Chemical Engineering (dropped out for modeling career)
What was Ted Turner‘s major? Classics (expelled for hanky-panky)
What was former HP CEO Carly Fiorina‘s major? Philosophy
What was George W. Bush‘s major? History
What was Jay Leno‘s major? Philosophy
If a student is struggling to get good grades, I encourage them to look at the course catalog and choose a major based on the likability of most of the classes they would have to take, their positive experiences with the professors in the major, and the number of credits they have already taken that are compatible. They should set themselves up to be successful. Getting through the pre-reqs is a major barrier for some. Combine some “fun” classes with the challenging required courses to try and make the experience more enjoyable.
Against the Grain
But what if, instead of paying for your child’s education, you provided this lump sum to them in a one-year certificate of deposit, earning the current highest return available (2.24% as of the writing of this article, according to Bankrate.com)? Now the child’s salary would be greatly reduced; the lifetime earning potential would only be $4.2 million assuming the same circumstances as before.
However, assuming that in both scenarios the child in question was able to save 5% of their annual income (assumed to be a lump-sum deposit at the beginning of the year to keep calculations simple), the child with the high school education will have accumulated $646,532 in the one-year CDs by the time they’ve reached retirement age. The child with the college degree would only accumulate $438.132, a difference of $208,400.
Perhaps it could be argued that the child with the college degree could live with the same expense basis as the one with the high school education, thereby freeing up more money for saving and investing. However, I would encourage a recognition of Parkinson’s Second Law, which tells us that “expenses rise to meet income”.
Rich or poor, thrifty or not, the current savings rate as of the end of May for Americans was only 6.9%. For much of the recent past it’s been lower than that, even to the point of occasionally becoming negative. For as many responsible people who are reading these words, there are many more who would be swept along by circumstances and society, spending exactly what they make (or more), year after year.
Public vs. Private
What if one were to assume a lower university bill? Perhaps a private school isn’t in the cards for these two kids (and their parents), but a public four-year institution could be.
The current median cost of four years at a public university for the 2009-2010 school year is only $29,021. At that rate, assuming the same parameters as before (rate of salary increase and inflation, etc.), the college grad does come out ahead, but only by $26,090 at age 65. Certainly, that’s a much smaller margin than I would have assumed, and I would guess it surprises many of you, as well.
In fact, for the lifetime earnings calculation to balance (that is, for both the high school and college grad to show the same dollar figure in savings at retirement age), the high school graduate would only need a “head start” fund of $38,030! Just think, for less than the price of a new SUV, four years of college-educated earning power can be rendered moot. This result, frankly, surprised the heck out of me.
Other scenarios could be run, as well. What if you’re not able to provide any funds at all for your son or daughter? My folks didn’t pay for any of my college expenses; I expect many of you are/were in that same boat. One could look at the opportunity cost of college loan repayment vs. a clean slate for a high school grad with no debt encumbrance.
For a graduate of an average private university, repaying a college loan bill of $114,626 at 6% interest (remember, student loan interest is capitalized while the student is in school) will take 10 years and $152,710. That’s assuming they’re able to make the monthly loan payments of $1,273 right out of college, and don’t have to go with a longer-term repayment plan. After this is done, the college grad will only amass $37,272 more in savings than the high school grad, simply due to the long repayment period they must overcome.
Be Cool — Stay in School
While a college education statistically provides a better shot at obtaining wealth, it does not guarantee success. There are English majors who end up with convenience store careers. There are high school drop-outs who go on to run multi-million dollar corporations. But obtaining a college education improves your odds.
For some young adults, college can seem like a waste of time. (Or worse, a waste of money.) Other things seem more important. I had friends who dropped out of school to pursue girlfriends across the country. I had friends who were convinced they could make more money by skipping college altogether. Student loans can be so enormous that they make a person lose sight of the fact that they’re an almost guaranteed investment in the future.
I personally had problems finding a career path — I simply had no idea what I wanted to do. When I went entered college, I wanted to be a religion major. Then I wanted to be a writer. Then I wanted to be a grade school teacher. Ultimately I earned a psychology degree, which has had little direct benefit to my life. But the education I obtained, my campus experience, and the contacts I made have been invaluable. A large part of who I am today was forged by my experiences in college. The value of a college isn’t just in the destination, but in the journey.
Resources
In preparing this article, I relied heavily on the following sources:
How many of you attended college? Are you glad you did? If you didn’t get a degree, do you regret it? If you could talk to your 18-year-old self, what would you tell her? If I had a chance, I’d tell the young J.D.: “Set goals. Study more. Find a direction for life!”
Update: As usual, there are some great comments. Many have noted that education does not cause all these wonderful things — it’s simply correlated with them. (It may be that people who obtain an education would live longer even without one.) Also — and this is key — more important than education is doing what you love. Passion and drive can bring success, no matter what level of schooling you have.
This is a guest post by Hank Coleman who writes about personal finance, investing, and retirement on his blog, Money Q&A. Hank shares his story about how he and his wife decided to become landlords.
I will tell you that I don’t know the first thing about this topic, so I would encourage anyone that is considering it, to read this first before becoming a landlord. I know there are pros and cons into becoming a landlord, so weigh all your options before diving in. Enter Hank…..
Many corporations in America require their employees to move every so often in order to give them with career progression, new opportunities, and challenges as they move up the ranks.
My employer is no different and recently told me of an impending move.
Like many Americans, I’m faced with a daunting choice.
Do I try and sell my home or become a reluctant landlord?
The anxiety of losing large sums of money or equity is one of the greatest fears for most homeowners with an impending move. I wanted to share with you some of my family’s thought process as to how we came to our decision to become landlords for the first time instead of selling.
It wasn’t an easy decision, and everyone’s situation is different. You have to look at it almost like a business and weigh the cost and benefits of your decision before taking the leap.
The Drawback Of Selling Our Home
There are several drawbacks to selling our home. Even though my wife and I live in an area of the country that has not seen the dramatic nosedive in real estate values, we have not seen any appreciation in our home’s value either. We could sell our house for pretty much the exact same price that we purchased it for four years earlier. The real problem with that scenario is that it is dramatically still a buyer’s market when it comes to buying and selling a home.
The buyers call all the shots, and they can make a lot of demands. Most sellers can expect to pay most if not all of the closing costs for both parties. They can also see demands for fixing up the home or even large price reductions. Trying to negotiate with a buyer will not do much good either because there are so many houses still currently on the market. A buyer can literally go down the street in most cases and find a more accommodating seller who needs to close in a hurry.
The Benefits Of Being A Landlord
Now, you may be thinking to yourself that you don’t want to be a landlord. I really don’t want to be one either and have to deal with finding tenants, evicting them when they don’t pay, checking credit reports, fixing broken toilets, showing my house to potential renters, and all of that other garbage. That’s why I hired a property management company to do all of that for me. But, I do want to increase my family’s net worth over the long-term, and owning real estate even if it is just adding one house every few years or so is one way to continue to build wealth.
There are other financial benefits of being a landlord too that many people may not immediately associate with the job. Like any homeowner, landlords enjoy many tax breaks.
In fact, there are more tax breaks for rental real estate owners than regular homeowners. Landlords are eligible to deduct their costs of operating their new rental business from their taxes.
You can deduct the cost of things like your property manager’s fee, maintenance costs, insurance, mortgage interest, home warranties, and a host of other expenses that start eating into your profit.
Renting Our Home At A Loss
Even renting out your home at a loss may be a better option than selling it outright. Of course, most of these calculations depend on your individual situation, your mortgage, how much down payment you used, and a host of other factors. For my wife and I, the comparables for renting a home like ours was $1,300 per month in rent. Currently, our mortgage, PMI, insurance, and property taxes cost $1,350 per month.
Additionally, we chose to use a property management company to help us rent our home, and they charge 10% of the monthly rent ($130 in our case). So, right off the bat, we have a negative cash flow of $180 that we are paying out of pocket every month. But, I’m very happy doing so, and I will tell you why.
Using a closing cost calculator, I can estimate that it will cost me about $14,000 or more in real estate brokerage commissions and fees to sell my $200,000 home. If I am losing $180 per month or $2,160 per year, it would take me about six and a half years to equal that $14,000 upfront cost. It is the difference between dying a thousand cuts or getting my head chopped off in one fell swoop. I’ll wait the market out. Eventually, home values in America will start to rebound…eventually.
Just like home values, rents will not stay low forever either. In fact, rents in American a rising year after year. There is nothing holding me back from raising the rent on my home in a few years and generating positive cash flow later. Almost anything is better in my book than losing $14,000 upfront and watching almost every penny of my equity disappear by selling.
According to the US Labor Department, rents across America have been rising 2.4% year over year, and that data is not even adjusted for inflation. At that rate alone, I could raise the rent on my to $1,500 over the next six years just to keep up with the times.
Eventually, your home could become a mini pension fund during retirement. At our current rate of repayment, my wife and I will have our home paid off thanks to the help of our renters at about the same time that we will be retiring to play golf and live on the beach. Even if I still charged $1,300 per month at that same house 26 years from now, the $1,170 after paying the property manager will be pure profit every month straight into our pockets.
A few more homes providing passive income like that would allow me to completely replace my pre-retirement income. While becoming a landlord is not a dream occupation that everyone aspires to, it is not something to be completely dismissed before you even consider it. There are great opportunities to choose something other than simply selling your home, taking a big financial hit, and moving on.
Pros Cons Becoming a Landlord
Everyone’s situation is different. Some people thrive being their own landlord, finding tenants, and are handy with a hammer. Some people want to get out of a house or an area at all costs and do not mind eating the closing costs in order to do so. Everyone has to make their own choices in the best interest of their family, but I wanted to let everyone know that they should not feel backed into a corner.
There are other options out there rather than simply succumbing to a realization that you have to lose money in order to move to a new home or a new city. All it may take in your situation is a little bit of cost benefit analysis on which course of action is right for you and your family’s well-being.
Hank Coleman is currently an officer in the US Army and also spends his free time as a finance writer who has written extensively for many financial websites and publications in addition to his own blog, Money Q&A. Hank has a Master’s Degree in Finance, a Graduate Certificate in Personal Financial Planning, and is currently studying and constantly putting off taking the Certified Financial Planner exam. His dream is to one day retire from the Army, open his own financial planning firm, and try to be just like his CFP® Idol, Jeff Rose.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Christmas is a time filled with joy and wonder. It’s the best season of the year to celebrate all that life has given us.
I wanted to share 93 things you can do on Christmas Day, from spending quality time with your family over a cozy fire in your fireplace or at an outdoor party, playing games around the house (even if it means taking turns), making food for others during holiday celebrations, going outside for walks during snowfall so we stay active and healthy this winter, and even taking a day off from work to do something relaxing.
Are you looking for a list of activities to do on Christmas Day that is fun?
Don’t worry, I got your back. Here is my list of over 90 ideas so you can spend the day with friends and family in style!
To be honest, this is my list of favorite things to do on Christmas Day.
If you need ideas, then start here…
What to do on Christmas day?
There are a variety of things you can do on Christmas day to make the most of the holiday.
You have to decide how you want to spend the day.
We will cover ideas with family, in the kitchen, with kids, at home, and just for you!
Quick Christmas Things to Do
You could help your loved ones decorate the yard with some inflatables– there are plenty of options available, from classic characters like Santa and snowmen to silly options like dinosaurs and unicorns.
If you’re feeling adventurous, you could even head out for a hike in the morning- nothing beats fresh air and stunning views in winter.
Once you’ve worked up an appetite, why not prepare a festive feast? There are plenty of recipes online that will let you show off your culinary skills. Or if cooking isn’t really your fancy, take advantage of convenient delivery services and enjoy Christmas dinner without having to lift a finger.
Once everyone’s bellies are full, it’s time for some fun (or a nap)!
Get the family together for some party Christmas games or put on a movie marathon. Whatever you choose to do, make sure to savor every moment spent with your loved ones- after all, Christmas only comes once a year!
What are some traditions people have on Christmas day?
There are many different family Christmas traditions that people partake in.
Some common traditions include:
Counting down to Christmas
Doing crafts on December 25th
Exchanging gifts.
These traditions are often passed down from generation to generation and are a lot of fun for both children and adults.
Another popular tradition is saying “Merry Christmas” to one another. This usually happens when family members gather together to celebrate the holiday.
Families come from all over to spend time with each other on Christmas day, and the joyous atmosphere is something that can’t be replicated any other time of year.
What do people typically eat on Christmas day?
Christmas is a time when many people come together to celebrate. While the exact traditions may vary, there are some acts that remain the same. For example, many people will eat turkey, mashed potatoes, and cookies on Christmas day (source).
If you’re looking to give back to your local community this Christmas, consider donating to your local food bank. Many food banks are able to help those in need during the holiday season and beyond.
Things to Do on Christmas Day with Family
Every year in December, the holiday season brings a rush of family time.
Christmas is a day that you can spend with your family, and there are plenty of things for the whole family to enjoy on this special day.
Here are some activities to enjoy with your loved ones on Christmas Day that you might not have thought about:
1. Spend time with family and friends. This is probably the best part of Christmas day! Enjoying good company is what makes this holiday special.
2. Karaoke Time. If you have a talent (or not) for singing, take turns with your family and friends by caroling the Christmas classics..
3. Watch Christmas Movies. Pick one of the many Christmas-themed movies that are on TV or streaming online to get into the spirit of Christmas. Watch classic holiday films like “It’s a Wonderful Life” or “A Christmas Story.”
4. Game Night. There are a lot of fun and interactive ways to keep you entertained this holiday season, including board games and card games! Start a family competition with bragging rights for the whole year!
5. Eat Christmas Snacks. What is Christmas without the traditional treats? Enjoy some of your favorite holiday foods, like cookies and candy canes.
6. Christmas crafts. There are a lot of fun DIY projects you could do this year to celebrate the holiday season, like making decorations or ornaments.
7. Host a Christmas party. If you’re hosting a Christmas party this year, make sure to get into the spirit of the holiday event by decorating your house and putting up a Christmas tree!
8. Refine Your Christmas traditions. There are some fun family traditions you can do this year, like baking cookies or watching classic holiday movies. Pick a handful of activities you want to do each year.
9. Prepare Christmas dinner. The Christmas meal is a big part of the holiday tradition, and there are lots of different foods you can make for your family this year — from ham and turkey to yummy desserts!
10. Make cookies. If you want to make Christmas cookies, now is the time to start thinking about what kind of treats you’d like to make. You can use a recipe, or you can make up your own recipe.
11. Video Chat with Your Family. Time to say hello to your family that you don’t get to see in person. Get on Zoom, Whatsapp, or Facetime with your family, even if they’re not in the same country.
12. Have a Family Meeting. What are some matters you can do as a family to help you focus on the true meaning of Christmas? Write them down and discuss how you can incorporate these into your holiday.
13. Puzzle. At my aunt’s house, there was always a puzzle on the table. Family members would stop and put a puzzle piece together while chatting and laughing.
14. Stream the Nutcracker Performance. Do you have a favorite performance of The Nutcracker? Be sure to watch it on Christmas day, even if it’s just for an hour or so.
15. Make Gingerbread Cookies. If you want to do something really special for someone, try making gingerbread cookies! Bake up a batch of gingerbread cookies with your family.
16. Craft a Gingerbread House. Cut out gingerbread men, stars, and snowflakes from construction paper or cardstock, then use them to decorate a gingerbread house. You don’t have to use the traditional kit with frosting.
17. Listen to Christmas Music. There’s nothing like listening to some holiday music while you’re baking cookies or hanging out with family and friends on Christmas Day.
18. Play the Game “Secret Santa.” If you’re hosting a holiday party this year, why not play the game “Secret Santa”? Everyone brings an inexpensive gift to the party, and then one person is chosen to be Secret Santa. Everyone draws a number, and the person with #1 picks out a gift from Secret Santa’s pile to open. Then everyone else has to figure out who their Secret Santa is by guessing which person brought them their gift.
19. Ugly Sweater Contest. You might even want to combine it with a white elephant gift exchange!
20. Christmas Scavenger Hunt Game. This is a fun activity for the whole family. Have each person do some research about Christmas traditions from around the world, and then come up with an item to bring back that symbolizes one of those countries. Or press the easy button and pick a ready-to-go Christmas scavenger hunt game.
More Things to Do on Christmas Day at Home
Christmas is a time for family get-togethers and relaxing with loved ones. Whether you celebrate Christmas or not, it’s still a fun day to have some activities that are holiday-oriented.
As the saying goes, “The home is where the heart is.” Here is a list of more fun things to do on Christmas Day at home.
21. Read a Christmas book. Pick up JK Rowling’s latest, The Christmas Pig.
22. Write Letters to Open on Milestone Christmases. Write a letter to your future self on Christmas day, putting any sort of advice you give to yourself as well as predictions you have. Pick milestone years. For example, when you celebrate Christmas with your baby, when your kids leave for college, or even the first Christmas without a parent.
23. Create a “Christmas Bucket List.” What are some undertakings that you want to experience in your life? Create lists for everything. For example, family trips in which everyone gets to pick the destination, a Christmas wedding, or even watching your children give their first speech.
24. Eat Christmas Cookies. Bake some sugar cookies and spread a bunch of frosting over them to make them look like Christmas trees.
25. Christmas Movie Marathon. Watch all of the Christmas movies!
26. Listen to Christmas songs. You could listen to some of your favorite Christmas songs while hanging out with friends and family. you’re decorating the tree or wrapping presents.
27. Shop Online for What You Didn’t Get. Buying a gift for your future self is a bit of an existential dilemma: what do you want to have? Truly people didn’t listen to what do I want from Christmas.
28. Send Christmas cards. If you’re going to be sending out Christmas cards this year, now is the time to start thinking about who you want to send them to! Better late than never!
29. Host a Party. Plan an open house for Christmas, and invite friends and neighbors to enjoy food, games, and gifts together.
30. Book Reservations. Those experience gift ideas need to be booked and put on the calendar.
Things to Do on Christmas Day In the Kitchen & Food to Eat
As Christmas Day approaches, now is a great time of the year to start planning what you plan to eat, make and bake in the kitchen. Whether you like cooking or not, there is something for everyone on this list from the kitchen to the backyard.
The Christmas season is a time to celebrate with family and friends. And food brings people together.
So, here are some fun activities you can bake on Christmas Day:
31. Make Christmas Star Bread. This is one of the traditions in our house. Please note, that you need to start this a day in advance. Here is our favorite Christmas star bread recipe.
32. Christmas Morning Brunch. This is a Sunday tradition in our house, but for Christmas, we have the favorite egg casserole prepared in advance for no work needed during opening gift time! Always cooked and ready to be enjoyed once everyone is done opening presents.
33. Bake and Decorate Christmas Cookies. My friend, Haley, over at If You Give a Blonde a Kitchen, always has great cookie ideas. And they are delicious!!
34. Cook a Fancy Meal. Let’s be honest… You more than likely don’t have the extra time to spend time in the kitchen and try a new recipe you have been wanting to try! Christmas is the perfect day to spend time cooking to your heart’s content.
35. Plan a Themed Christmas Dinner. Say bye-bye to classic turkey, ham, and beef! Each year choose a new theme for dinner. Here are some of our favorite themed ideas: Italian, Mexican, Indian, Chinese, Mediterranean, or Costa Rican Casado. Even football favorite appetizers! Every seven years there is guaranteed to be football on.
36. Mix a Christmas Cocktail. Enjoy being by a nice fire and enjoy watching the snowflakes fall. It sounds perfect, right?
37. S’mores by the Fire. Who says, campfires and summer are the only time for smores. Grab the sweet supplies, jackets, and blankets, and nestle around a firepit.
38. Serve Cake for Dinner. Serve your family a big slice of cake for dinner instead of turkey or ham. Can you see their faces of amazement!?!?
39. Make a Christmas Tree Out of Fruit and Vegetables. This is a fun activity for kids of all ages.
40. Cook Frozen Pizza. This doesn’t happen often, but it is always well received by my crowd. Pizza for the win!
Things to Do on Christmas Day with Kids
Christmas Day is a time for family, and often children are the ones who make it so memorable.
To help you find something fun to do with your children on Christmas day we have compiled an extensive list of activities that you and the kids can do together.
41. Open Christmas Gifts. Yes, this is what kids look forward to the most each Christmas. In fact, here are $10 gifts approved by my own kids.
42. Play in the snow. Throw a snowball, build a snowman, or make snow angels. Kids NEED to get outside and burn off their energy.
43. Play hide-n-seek outside. No snow? Don’t worry. Start a game of hide-n-seek outside. The last one to be found picks the next activity.
44. Candy Cane Hunt. First of all, you need a lot of candy canes and some good hiding places. Make sure you count all of the candy canes before to make sure you find them all!
45. Make Christmas Tree Ornaments. This project is perfect for the kids in your life! I love how easy they are to make and that they can be decorated however you choose.
46. Decorate Windows with Paper Snowflakes. This is one of the best activities for kids to improve their motor skills. How many can you make? And what size snowflakes? This is a great project for kids! They can make them any size they want and hang them on the tree or around the house.
47. Visit Local Attractions. Every city may have something cool on Christmas Day that is open. Check out Living on the Cheap for your closest city for local attractions.
48. Art4Kidz Hub. Seriously, they have some of the best videos on how to draw! Hours of entertainment. Plus their artwork can turn into thank you cards!
49. Make Kid Christmas crafts. This is a fun way to do something different from presents. Spend quality time making various crafts. Just make sure to buy the craft supplies in advance!
50. Play kid-approved board games. Time for a family game night or afternoon. Invite friends and family over for a game of Uno, Connect Four, or Apples to Apples! Even Scrabble or Monopoly- so many fun options!
List of Crafty Things to Do on Christmas Day
Christmas is one of the most exciting and fun holidays to be a part of. But everyone loves it when they get something in return for all their hard work, right?
So, spend the day doing the craft projects you always want to do!
Here are some great ways to give your friends and family something special.
51. Photo Book. Photo Books are a great way to preserve memories for special occasions. Plus, they can be shared with other people so everyone is able to see the good times! You can create a printable photo book or a digital photo book.
52. Make Christmas Ornaments. Christmas is the best time of year to wear new ornaments! You can make some really fun and unique ornaments using recycled materials, like bottle caps.
53. Make Christmas Headbands. These are so adorable for little kids and adults alike! They can be made in any colors you choose.
54. Decorate Homemade Gift Bags. Gift bags are a great way to personalize your gifts and make them look extra special!
55. Make A Holiday Recipe Book. Create a recipe book for all of your holiday dinner favorites. You can include the recipes for stuffing, mashed potatoes, green beans, and any other dishes that you love to cook during the holidays. Here is the digital recipe book organizer I use.
56. Create a Card Christmas Tree. Arrange photos and Christmas cards to make a Christmas tree on the wall. Even wrapping paper can be reused to “build” your tree.
57. Make New Year’s Cards. Seriously, it is SO stressful trying to get Christmas cards out in advance. So, let’s start sending New Year’s cards instead.
58. Make a Christmas Tree skirt. This one has been on my list forever. So, I decided to dedicate time on Christmas to finally complete my project.
59. Put Together A Memory Box. This is easy, but thoughtful idea that you can give as a gift to your family. You can fill the box with photos, recipes, and other special items that you have collected over time.
60. Make Salt Dough Ornaments. This is a fun and easy project. I love how they look on the tree, too!
Outdoor City Attractions to Do on Christmas Day
Open the door and enjoy the weather. Whether you go for a walk, play in the snow, or go for a drive, getting some fresh air is always a good idea.
On Christmas Day, many attractions and businesses are closed. So, opt for open parks and space for your wintery fun!
You can even pair the outing with these National Park gifts.
Snow is here, but it doesn’t have to be all about snow. Take advantage of the winter weather and get outside for some fun activities!
61. Run a Christmas 5k. Running has become a prominent form of health and fitness activity in recent years. Have fun during a fast-paced run (or walk) by taking on a Christmas 5k. Challenge your friends and family to join you!
62. Take an ice-skating lesson. If you’ve never tried ice skating before, this is a great way to dip your toes in.
63. Go sledding! You may not have the equipment for traditional snow tubing, but taking a trip down a hill is just as much fun.
64. Go ice fishing! If you don’t want to go too far, make your own pond in the backyard.
65. Play in the snow. This can lead to hours of fun! Don’t dread the snow because you have to shovel it. Think of ways to build a snow fort, throw snowballs or just play around.
66. Play tennis, golf, or pickleball. Not every year will there be snow on the ground. On those sunny days, pick up your racket or golf clubs and get a game or two in.
67. Go cross-country skiing. Time to get some exercise and burn calories. Cross-country skiing is a great way to get outside and hit your fitness goals.
68. Watch a movie in the snow. How fun does that sound? Thanks to technology you can snuggle up while watching a Christmas classic. Make sure to buy a projector ahead of time!
69. Ride roller coasters. Sounds thrilling, right?!?! But check to see if they are open first.
70. Drive Around to See Christmas Lights. A simple and classic activity to do on Christmas day. Go around and find the best light display!
Things to Do on Christmas Day to Refresh Your Soul
Do you often get bored of the same old ideas on Christmas Day? The answer to that question is probably a resounding “yes” if your answer has been anything like mine.
Here is a compiled list of relaxing Christmas Day activities for people who are looking to enjoy their day while rejuvenating their souls.
71. Relax and take it easy. There’s no need to stress out about anything – just relax and enjoy yourself!
72. Enjoy a LuxuriousHotBath. Time to destress from the hustle and bustle of the season. Grab some must-have bath essentials to make your experience more spa-like.
73. Treat Yourself. What is one intention you’ve always wanted to do? Buy it for yourself or give yourself the gift of time and allow yourself to enjoy that experience.
74. Escape on a Christmas Vacation. Do you always want to try something new for Christmas? Let’s make this year the best one yet and plan that special Christmas trip!
75. Take a walk in nature. Enjoy the sun and soak up some Vitamin D!
76. At Home Manicure/Pedicure Experience. While it’s not the same as being pampered in the salon, there are many at-home manicure and pedicure sets, that you can use all year round.
77. Personalized Playlist. Spend time finding new songs that revitalize your mind.
78. Stay in Christmas Pajamas. Even better plan matching PJs for the whole family!
79. Spend time cuddling on the couch. A dream come true for a busy mom or dad!
80. Make a List. Make a list of activities to do or places to go that are not centered around Christmas. Focus on items that you are grateful or blessed to have in your life. This will help you avoid the “Xmas” overload and keep you focused on what is really important.
81. Attend a Christmas Eve Service. What is one church in your area that you’ve never visited? Take the opportunity to attend a service on Christmas Eve.
Ways to Show Generosity on Christmas
Giving is always better than receiving.
Christmas is a time of giving, but it can be difficult to know how much you should give.
This doesn’t mean that Christmas has to be all about presents or expensive gifts for your loved ones, but you can still show your gratitude with small acts of kindness. Here are some ways to do that:
82. Volunteer at a Homeless Shelter. This is a great way to serve and be appreciative of what you have been blessed with. Find your nearest homeless shelter and volunteer to serve a meal, or help set up cots for a cold night. Maybe set fundraising parties to help gather monetary donations.
83. Take a Meal to Someone. Many people don’t want to cook on Christmas because they are by themselves or unable to spend hours in the kitchen anymore. Bless them with a cooked meal and your decorated Christmas cookies.
84. Write Thank You Notes. We all know this needs to be done. So, practice writing thank-yous before you start playing and using the gift you received.
85. St. Nick’s Giveaway Day. St Nicholas was known for giving out toys to all the children. Pay it forward by passing along toys, clothes, or other furnishings you don’t need anymore.
86. Be a Santa. Adopt a family for Christmas and provide gifts, food, or other items that they would enjoy.
87. Random Acts of Kindness. Write a list of ways you can bless people with random acts of kindness. Small actions go a long way toward making someone’s day, especially around the holidays.
88. Serve Others. Visit a nursing home or assisted living facility. Bring them cookies, sing Christmas carols with them, read to them and spend time with people who may not have the opportunity to see you on another day.
89. Pray for Others. What is one way to pray on this day that would make someone else’s life better?
Things to Do on Christmas Day for Adults
Christmas is an exciting time of the year, but it can also be a very stressful holiday due to work and family commitments.
There are many different activities that adults can enjoy on Christmas day.
90. Cook a Traditional Meal. One popular option is cooking a traditional Christmas meal. This can be a great way to learn about other cultures and traditions.
91. Ice Skating. There is no shortage of places to go ice skating on Christmas Day.
92. Ugly Sweater Time. Wearing an ugly sweater is always a festive tradition, and it can be especially fun on Christmas Day when everyone else is dressed up too. Just make sure you’re prepared for people to make fun of your outfit!
93. Be Alone. Some people prefer to spend Christmas day alone, either because they don’t have any family nearby or because they simply want some time to themselves. There are plenty of activities that can be done by oneself without requiring any specific skills or knowledge. For example, reading a good book, watching a movie, or taking a walk in the park are all enjoyable ways to spend the day.
Honestly, as an adult, you can choose any of the above activities that would be a perfect way to celebrate Christmas day.
What are some unique or interesting ways to celebrate Christmas day?
There are many unique ways to celebrate Christmas.
Honestly, it comes down to your preferred traditions. This is something you will find over the years about how you want to spend the day.
One popular way is to place an elf in your child’s bedroom to monitor their behavior! Another fun tradition is singing carols or skating on the ice. If you’re looking for something a bit more unique, consider driving down a festive pathway or reconnecting with old friends over dinner.
No matter how you choose to celebrate, make sure to enjoy yourself and have some fun!
More tips for making the most of Christmas day
Christmas is a time for family, friends, and fun.
Christmas day can be a lot of fun, but it’s important to make the most of it!
The best tips for making the most of Christmas day include spending time with your family and having a good time.
Here are some important tips to keep in mind when celebrating.
Tip #1 – Watch for Stressors
Make sure to take a break from the “seasonal grind” and forget to enjoy the holidays yourself.
Before Christmas day arrives, make a list of the stressors you tend to experience on this joyous holiday. Make a conscious decision to avoid the stressors as much as possible. If you cannot completely avoid one of them, then limit your time and plan for decompress time afterward.
Tip #2 – Spend Quality Time with Family
Christmas is a time of celebration and family gatherings.
However, you must make sure you are spending quality time with your loved ones can make the holiday much more enjoyable.
This may be easy or difficult depending on your family situation. Yes, spending time with your family and friends during the holidays is important- especially for kids! Just make sure you can look back and enjoy the day.
Tip #3 – Get Outdoors
On Christmas Day, go outside and enjoy all the fitness opportunities that a cold day has to offer.
Many people stay inside their buildings and homes for the holidays, but outdoor time is actually beneficial. The colder the weather, the better, because when your body is cold even a small outing helps release some of the heat that has been gathering in your body.
Getting outside will help you stay away from any possible triggers, too!
Tip #4 – Spend Less Money
It’s Christmas, the most wonderful time of the year.
Christmas is often a heavy financial burden for many individuals who are required to buy gifts and arrange an evening meal for loved ones.
All the extra expense can sap people of the energy and life they relish in the rest of the year, hence leading to depression which leads to a number of other health complications.
So, plan your Christmas budget ahead of time, so you can walk away happy.
Tip #5 – Remember the True Reason for Christmas
Christmas Day is one day of the year that is meant to be enjoyed and celebrated.
Yet, we tend to forget the true reason for the season – the birth of Jesus Christ.
While we are called to celebrate in community, keep the real reason at the center of your get-togethers with family and friends, and enjoy some of the traditional festivities.
What activities are open on Christmas day?
First of all, before you go, check online or call to see if the business is open.
Typically, you can find convenience stores, gas stations, movie theaters, and some restaurants open on Christmas.
Also, many local attractions may be open as they are focused on the activities they can provide.
Just be prepared for possible long wait times and always be sure to tip well.
Best Holiday Memories for the Season
Ultimately, those are the fun things to do on Christmas day are activities to experience.
Christmas is a time of joys and festivities, giving gifts to friends and family, and decorating your home with Christmas lights or greenery. But the best day always comes when it’s over!
Just remember…
Have Fun!
Remember that Christmas is a time to enjoy and celebrate the birth of Jesus Christ. It is not just about shopping, eating, and being with family.
Relax! Take a break from your hectic schedule and enjoy the priceless gifts you have been given.
Find More: 101 Fun Things To Do With No Money
Know someone else that needs this, too? Then, please share!!
Shortly after my daughter, now 14, was born, I got the best advice: “Travel with her soon, ideally when she’s 6 or 7 months. That’s old enough to be engaged but young enough to be portable.”
My wife and I soon whisked her off to Amsterdam. We strolled along canals, sipped white beers with lunch, and explored art and history museums. Contrary to what many new parents believe, it could not have been better timing.
Pros and Cons of Traveling With a Baby
The most obvious perk of traveling with a baby: You don’t need to pay for their airplane seat until they reach age two! Besides that, the upsides and downsides depend on your approach to parenting.
Generally speaking, traveling around the 6-month mark is mostly positive. Before babies start crawling, they don’t struggle to be put down or need a baby-proofed hotel room in which to roam. You can ditch the stroller and opt for a carrier as you explore, and the baby can either nap or observe the scenery.
There’s also a good chance your baby isn’t yet relying on solid food — we actually delayed kickoff by a month or two until after our travels — so there’s no need to hunt down special infant meals. If you’re breastfeeding, keep it up through your trip and you’ll barely need to pack a thing for your baby. Otherwise, just bring enough formula (yes, TSA will allow it through) and you’ll be good to go.
With infants younger than 6 months, you may face more fussiness. And depending on the conditions your little one needs to get to sleep, your schedule may have to revolve around nap times. After they’ve started to crawl or toddle, you’ll want to be more vigilant of potential hazards in your hotel, rental, or host’s home.
When planning your day, keep in mind that picky eaters can take time to satisfy. But what better way to expand your kid’s palate than in another country? Our daughter tried her first taste of pancakes in Amsterdam, while sitting in her first-ever high chair, and it remains one of our favorite early-parenting memories.
By the way, we also have good tips for new parents wondering how families afford to travel.
Pre-Trip Checklist
Before you go anywhere, you’ll want to check a few important items off your to-do list.
Collect Your Baby’s Travel Documents
When you’re traveling within the United States, your baby is good to go. Just be sure to have their birth certificate on hand and, if only one parent is present, a letter of consent from the other, to avoid any custody dramas while you’re trying to enjoy a vacation.
If you’re traveling internationally, via plane, your little one will need a passport just like every other U.S. citizen. When traveling by sea, you’ll want to bring the birth certificate and consent letter from a parent who stays at home.
To apply for your baby’s passport, be sure to start the process as early as possible by filling out form DS-11 , found on the State Department’s site. You’ll be asked for evidence of a birth certificate (and/or other options to prove citizenship, if they apply to you) and a properly formatted photo. This image will be used until your kid is 5 and needs an updated passport — a source of great amusement for them until then, guaranteed.
Recommended: How to Balance the Urge to Travel and the Need to Save
Visit the Pediatrician
Consider bringing your baby to the pediatrician about a month before your departure, and make sure they are up-to-date on routine vaccinations. Additional shots may be required depending on your destination.
Check the Centers for Disease Control and Prevention (CDC) website for other travel alerts. And be sure to pack any medications your child might need, such as baby acetaminophen in case of teething pain or fever.
(By the way, this article will tell you what to do if you or your baby get sick on vacation.)
Pack or Reserve Baby Items
Think about what you might need at your destination: bassinet, Pack ‘n Play, etc. You may be able to call to request larger items at your hotel or rental, attached to your reservation. If you plan on renting a car, make sure you reserve a car seat.
If you don’t already have a baby-wearing sling or pack that’s light and comfortable, consider investing in one. The structured Ergobaby and Tula are two excellent options. If you’re not a baby-wearing type and your baby is old enough to sit up, think about getting a lightweight folding stroller (Maclaren has a range of great options) that’s easy to carry and maneuver (and should meet all carry-on specifications). Leave your souped-up fancy version at home.
Flying With a Baby
What to Bring
The things you’ll need when traveling with a baby are not so different from what you need for a day in the park. Besides a stroller or carrier, you’ll want to make sure you’ve got enough amusements on hand to get your baby (and those around you) through the flight without much drama. I remember getting great new-parent tips from others about flying, including the advice to bring a small bag stuffed with distractions: board books, her Sophie the Giraffe teether, a light-up rattle. It was an excellent idea, even though she wound up happily playing with an empty plastic water bottle for much of our time in the air — anything that works!
If you’ve got a toddler who likes to snack, have plenty of their favorites with you (for yourself, too, as they’re not the only one who needs to be distracted from grumpiness). Other useful items to bring in your carry-on: plenty of diapers, wipes, a travel diaper pad to use in the cramped bathroom (not fun), formula, and a small cozy blanket.
Recommended: Air Fares: What You Need to Know
Dealing With Air Pressure Changes
When flying with a baby, take-off and landing are likely to be the toughest parts, due to air-pressure changes in the cabin that can plug up their little ears. Start breastfeeding or bottle-feeding a few minutes before the actual take-off or landing. The sucking and swallowing actions will help their ears keep popping. Your little one will be blissfully unaware that they’re supposed to start screaming.
At Your Destination
When traveling, think of your baby as a mini-version of you, and take all precautions (and then some) that you’d take for yourself. For summer travel in warm climates, apply mosquito repellant, use plenty of sunscreen (don’t forget to reapply!), and dress them in long-sleeved rash guards while swimming or on the beach. In new countries, avoid tap water.
Consider nap times, and where you’d like to be to help facilitate your baby falling asleep in a strange environment. Finally, be prepared to adjust your plan as you go to accommodate any fussiness and meltdowns.
Recommended: Responsible Tourism: How Travelers Can Support Local Economies
The Takeaway
Don’t stress out about traveling with your infant — enjoy it! Now, when your little one is still portable and not yet making their own demands, might be your last chance to feel free as a bird while exploring a new place. No, they won’t remember the experience, but you will. And you’ll have the pictures and stories to prove it.
Photo credit: iStock/tatyana_tomsickova
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. SOCC0323044
Save more, spend smarter, and make your money go further
Last year this time– right around Halloween – my wallet was stolen from my son’s stroller. (Okay I shouldn’t have placed it in the stroller in the first place, but I never imagined anyone would steal it. It was only slightly visible, tucked inside a pouch.)
You can guess the rest.
In a store elevator, while a woman to my right started talking me up and gushing over my then 1 year old son’s shoes (they were really cute), her quiet accomplice (to my left) crept her fingers into my stroller pouch and nabbed the wallet.
An hour later, when I realized the wallet had disappeared, I rushed home to check my bank and credit card accounts. As expected, the thieves had spared no time. They’d racked up over $500 in charges at the very department store where they’d stolen my wallet. They also purchased a number of monthly subway passes on their way out of the crime scene.
Some serious professionals had defrauded me right in my own neighborhood!
Lesson learned: Keep your wallet out of sight and reach.
But, sadly, wallet theft is not the only way or even the most common way fraudsters can get a hold of our financial accounts. Much of it happens online via hacks or breaches. Fraud devices or “skimmers” at ATM machines and card readers can also be sources of fraud.
This Halloween here’s some advice on how to prevent your financial info from getting in the wrong hands and what to do in case you become a victim of fraud.
Double Down on Password Protection
A wise rule of thumb is to use various passwords for various accounts. Don’t just use one universal password for every website since it makes it all too easy for a fraudster to access your bank accounts, payment sites, etc. if he or she gets ahold of your secret alpha-numeric-symbolic code.
But few of us actually follow that rule of thumb. Nearly three out of four consumers use a duplicate password, many of which haven’t been changed in the last five years, according to a recent survey.
If you’re worried about remembering all your passwords, consider using password management tools that provide a secure and virtual “vault” for all your passwords. LastPass and TrueKey offer free basic memberships.
As for how often should you change your passwords? Do better than every five years, but don’t worry about changing them every month. A study by the University of North Carolina at Chapel Hill found it’s better to change passwords infrequently.
While some sites and offices require you to change your password every few months, this can actually backfire, the study found, because when we are forced to change our passwords so many times we don’t get very creative. We may add a “1” or make a slight variation from the last password. And this makes our passwords all the more predictable to hackers.
In fact, for 17% of the accounts in the study, knowing a user’s previous password let researchers to correctly guess their next password in fewer than 5 guesses.
It’s fine to change your password once or twice a year, as long as it is made of a random variation of text including different cases of letters, numbers and symbols. And stay away from the obvious like your birthdate or a sequence of letters and numbers (e.g. ABC123)
Stick With Credit
You may notice when you go to checkout with a card, you’re now asked to dip instead of swipe. The U.S. recently moved to EMV chip card technology, in an effort to combat counterfeit card fraud. In time paying with a credit card should get safer.
Meantime, if you’re ever wondering whether it’s safer to use a debit or credit card, stick with credit. In the event of fraud, it will be easier to dispute the claims.
According to the Fair Credit Billing Act your maximum liability for fraudulent credit card transactions is $50. But if you report your card lost or stolen prior to fraudulent transactions your liability could even be $0.
With debit card fraud, on the other hand, you’re sometimes at a loss until the claim is resolved. What’s more, if you don’t report your card lost or stolen within sixty days your liability limit is up to $500.
Scan Your Statements
Keep a watchful eye on your accounts. Even if you’re a fan of auto-pay, it’s worth reviewing your bills regularly for unfamiliar charges. Card issuers and banks are getting better at alerting us of suspicious charges, but it’s always helpful to play an active role ourselves, too.
If you suspect your account’s been compromised contact your bank or card company immediately and have them investigate. In the meantime, they may shut off the account and send you a new card with a new account number just to be on the safe side.
Another place to look for red flags is your credit report. You can receive a free credit report from each of the three major credit-reporting agencies – Equifax, Experian and TransUnion – once a year at annualcreditreport.com. If you don’t recognize some of the items on your credit report such as random credit inquiries or unfamiliar card accounts immediately reach out to the credit reporting agency or agencies that’s listing the false information and explain the situation. Here’s a list of their phone numbers:
Experian: 1-888-EXPERIAN or 1-888-397-3742
Equifax: 1-800-525-6285
TransUnion: 1-800-680-7289
You may want to place an extended fraud alert or credit freeze on your account. You can find more information on how to do this on the Federal Trade Commission’s website.
Avoid Random ATM Machines
Fraudsters and ID thieves may secretly install special equipment in credit card readers either at the ATM, gas pump machine or any other card swiping device to capture or “skim” our personal information on our credit or debt card each time we swipe. The reader makes two copies of your credit or debit card information: one to process the transaction and one to later download the information to the ID thieves.
To play it safe, use trusted ATM locations. Your bank branch’s ATM is usually a safe bet, since a security officer or camera often guards it. It’s a lot more difficult for ID thieves to compromise an indoor bank ATM than say, a random ATM on the street corner outside a convenient store.
Trim Down Your Wallet
While it’s not realistic to say, “Don’t carry your credit cards or cash in your wallet,” there are some other sensitive items a few of us DO carry in our wallets that aren’t necessary. The Identity Theft Resource Center recommends five things you should never carry in your wallet including your social security card or even a copy of your social security number, your birth certificate, bank account or routing numbers and password cheat sheets.
It’s best to keep these items tucked away in a safe and hidden place…and by no means in your child’s stroller!
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected].
Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.
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Check out the best cities for remote work to ensure all of your lifestyle needs are met when living and working remotely.
Since 2020, work-from-home (WFH) has become the new normal in the workplace. While some companies are pushing for a return to office, others are embracing remote work indefinitely. When the world is your oyster, where should you go to live and work remotely?
Well, the team at Rent. did our research to put together a list of the best cities for remote work. So, if you’re ready to explore the country while working remotely, consider any one of these top best cities for remote work.
The 10 best cities for remote work
As a remote worker, your physical location hardly matters. As long as you have a productive workspace and a strong internet connection, you can pretty much work wherever your heart desires. Do you enjoy sitting on a patio while you take your Zoom calls? Well, as long as your connection is strong you’re good to go!
We looked at a few things to make our recommendations:
Median rent and rent change year-over-year
Access to the internet and average internet speeds
WFH population and number of coworking spaces
If you’re a digital nomad who wants to fully embrace WFH, consider these top 10 locations across the country that have been named the best cities for remote work.
Median rent: $2,075
Average Mbps: 83.46
Number of coworking spaces: 68
% of population WFH: 19 percent
Orlando is the number one best city for remote work based on our ranking methodology. With a population of 309,154 people, it’s a perfect mid-sized city in the sunny state of Florida.
You’ve got well-known amusement parks. You’ve got crystal blue beaches and sunny skies. And, you’ve got a solid environment for remote work. Retirees and young professionals alike are flocking to Orlando and it’s easy to figure out why. Consider this city if you want to be a remote worker.
Median rent: $1,528
Average Mbps: 117.89
Number of coworking spaces: 78
% of population WFH: 38 percent
Austin is the second-best city for remote workers. It’s a hopping metro with a young millennial crowd. The rent is reasonably priced and there is no state income tax, which is a bonus for remote workers and residents alike. Austin is particularly appealing to the IT sector and is commonly called “Silicon Hills.”
So, if you’re a remote IT worker, this city is even better for you! But if IT isn’t your field of work, don’t fret: You can still live in Austin and enjoy the benefits of remote work in your chosen industry.
Median rent: $1,339
Average Mbps: 80.71
Number of coworking spaces: 11
% of population WFH: 13.2 percent
Ranking third on our list is the city of North Charleston in South Carolina. With a smaller population just shy of 120,000 people, this city is the perfect place to settle down to get a mix of big-city life with small-town charm.
People rave about the dining scene, so you can work remotely from a coffee shop or restaurant! This city is full of history and has a diverse cultural scene and stunning scenery. If you’re looking for a place that seemingly has it all, check out North Charleston.
Median rent: $1,338
Average Mbps: 76.26
Number of coworking spaces: 23
% of population WFH: 15.7 percent
Grand Rapids is a great city for outdoor recreation and beer scene. If you’re a digital nomad who wants to flex the Midwestern value of “work hard, play hard,” this is the city for you.
The city alone has over 40 breweries. You’ll be able to go on a nice trail walk and cool down with a beer. Additionally, it’s one of the largest office furniture-making cities in the U.S. So, you can definitely find yourself a sweet office set up for your remote work office here.
Median rent: $977
Average Mbps: 129.12
Number of coworking spaces: 7
% of population WFH: 12 percent
Columbus, GA, is the fifth city on our list of best cities for remote work. If you’re looking for a family-friendly place to live, consider Columbus. This city is rising in popularity as it’s an easy-going town with friendly people.
There are lots of parks, restaurants and bars so you’ll have a good mix of outdoor and indoor activities when you’re not working. One thing to note is that you may experience severe weather in this pocket of the country.
Median rent: $2,220
Average Mbps: 92.68
Number of coworking spaces: 92
% of population WFH: 38 percent
Because it’s a large metro, Atlanta is a great place to live and work remotely — or to look for an in-office job if you tire of the WFH life. You also have several large corporations headquartered here, such as Delta and Coca-Cola, so job options are plentiful and rent reasonable compared to similar-sized metros.
Median rent: $1,183
Average Mbps: 55.53
Number of coworking spaces: 15
% of population WFH: 12 percent
You don’t have to be a Packers fan to live in Green Bay (although it wouldn’t hurt!) People love this family-friendly city and rave about the small-town community traditions and vibe you experience living here.
Ranking seventh on our list of best places for remote workers, Green Bay has affordable living and is recently experiencing an influx of people moving here. Enjoy football games or farmer’s markets when you’re not working from home.
Median rent: $1,444
Average Mbps: 94.95
Number of coworking spaces: 128
% of population WFH: 15.6 percent
Houston is another Texas city that made our list of the best places for remote workers. It’s a larger city, compared to Austin, so if you’re looking for a big metro area in Texas, consider the nation’s fourth-largest city.
This metro is known for its diverse food and entertainment scene. Since it’s a huge city, you pretty much have a good mix of everything to do. Plus, rent is fairly inexpensive, making the cost of living affordable.
Median rent: $1,613
Average Mbps: 119.41
Number of coworking spaces: 26
% of population WFH: 33.1 percent
Another southern city makes our list of the top 10 best places to work remotely. Raleigh has great weather, so if you’re looking for a beautiful and mild place to live, this is for you.
Additionally, it’s known to be a great city for small businesses and entrepreneurs, which is good news for remote workers hoping to branch out on their own and network. It’s also been ranked as the most climate-resilient city, the best for work/life balance and one of the best places for college students to live.
Median rent: $1,041
Average Mbps: 82.95
Number of coworking spaces: 9
% of population WFH: 16.7 percent
Last but not least is Appleton, WI. With a population just shy of 75,000 people, Appleton is the smallest town on our top 10 list. So, if you’re looking for a quiet, small city to live and work remotely, this is the place for you.
Residents like the mix of outdoor activities and in-town activities. It’s also been named one of the best places to raise children. Check out Appleton if you’re wanting a great city to be a remote worker and raise a family.
Other cities to consider when working remotely
We’ve listed the cities that rank in the top 10 best places for remote work, but there are several other places across the U.S. that made our list, as well. Check out the top 100 cities in the nation that remote workers can call home.
Daytona Beach, FL
Savannah, GA
Rapid City, SD
Greenville, SC
San Fransisco
Chicago
Pittsburgh
South Bend, IN
Dallas
Waukesha, WI
Fort Lauderdale, FL
Chattanooga, TN
Greensboro, NC
San Antonio
Shreveport, LA
Interesting findings from the top 25 best cities for remote work
While looking at the data, we found some interesting highlights that are worth calling out.
24 of the 25 best cities for remote work are in the South or Midwestern United States.
Only one of the top 25 best cities for remote work is on the West Coast. San Francisco is the only West Coast city to make our list.
Florida, Georgia and South Carolina all rank well for remote workers with three cities in each state making the top 25 best cities for remote work.
The majority of the best cities for remote work have populations under 250,000 residents. While there are a few outliers, the best cities to WFH are generally smaller cities compared to large metro areas.
What to consider when working remotely
Regardless of where you choose to live to work remotely, there are a few common things you must consider to be a successful WFH employee. Here are a few considerations and questions to ask yourself when choosing a city for remote work.
How much internet speed do you need? Depending on your location — rural, suburban, or urban — your internet needs will vary. Having a strong internet connection and the right internet speed is crucial for success as a remote worker.
Do you have the right office set up? Relaxing poolside while responding to emails is appealing, but there are times when you’ll need a physical office or desk set up. Make sure you have the right desk, chair and computer equipment
How long do you plan to stay in your location? Some people choose to settle down in one place and others move frequently. Your choice will determine the length of your lease. You’ll want to consider if a fixed lease or month-to-month is better for your lifestyle.
Is your job remote-first indefinitely? Before you pack up and hit the road, ensure that your job is going to be WFH long-term. You don’t want to make a cross-country move only for your company to demand a return-to-office six months later.
Find the right city for you
With so many WFH options available, you really can go anywhere in the U.S. or the world, for that matter. We hope our data and insights on the best cities for remote work help you as you decide where to move and pursue a WFH lifestyle.
Remember, these are the best cities for remote work according to our methodology; however, there are several places in the country that may work for you. Do your research before moving and you are bound to find an apartment and place to live that fits all of your lifestyle needs.
Methodology
Cities were ranked and scored based on the following:
Rents: 30 points
Median Rent: 20 points
Rent Change YoY: 10 points
Internet Speed and Access: 40 points
Num. Int, Providers, 100mbps: 10 points
Avg. Mbps.: 20 points
Lowest Cost Int. Plan: 10 points
WFH Population and Coworking Spaces: 30 points
% Population WFH: 10 points
Coworking per 1,000 WFH: 20 points
Our rent prices and changes are from Rent.com’s Rent Report. Internet speed and access numbers are from Broadband Now.
The number of coworking spaces is from FourSquare. Population numbers and proportion of people working from home is from the Census’ American Community Survey (ACS).
Cities with insufficient data were excluded.
The rent information in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
When it comes to living in Atlanta, boredom should be the last thing filling your calendar. With so many things to see and do year-round in the city, it’s easy to get out, explore, meet new people, and discover what makes Atlanta an exciting place to live. The best part of it all? You don’t even have to break the bank to have a good time. Check out the list below for fun things you can do in the ATL for free:
Discover the Great Outdoors
If you need to get away from the hustle and bustle of city life, you don’t have to look far for a green space oasis. Atlanta boasts dozens of scenic parks and trails where you can bike, run, hike, play sports, walk the dog, or just simply sit and take it all in. Here are some places to check out:
The Atlanta Beltline:
Once a former railway corridor, the Beltline has become the place for avid outdoor city adventurers, with 33 miles of multi-use trails, green space, a skate park, public art, and city parks that run through 45 in-town neighborhoods.
Piedmont Park:
Otherwise known as Atlanta’s answer to NYC’s Central Park, this scenic in-town park has everything you could ever want — including a dog park, bocce ball court, swimming pool, lakes and more. It also hosts a number of popular festivals and concerts throughout the year.
Sandy Springs Playable Art Park:
If you have kids who like to swing, jump and climb on everything, take them out to Abernathy Greenway to enjoy this one-of-kind art park made for all kinds of play.
Centennial Olympic Park:
This 21-acre park, built to welcome the world during 1996 Olympic Games, continues to draw crowds with the world’s largest interactive fountain featuring the Olympic Rings. The park also hosts free music concerts and family-friendly events year-round.
Markets
Looking for more than the typical shopping mall fare? Explore some of Atlanta’s trendiest new spaces for unique shops and atmosphere.
Krog Street Market:
Enjoy the vibes of this 1920s industrial space full of culture, stores and people watching in Inman Park.
Ponce City Market:
Once a Sears, Roebuck & Co building decades ago, the space has been transformed into a shopping mecca with many cool things to explore under one roof.
Your Dekalb Farmer’s Market:
One of the largest farmer’s markets in the state of Georgia, Your Dekalb Farmer’s Market offers a range of fresh food items from cheeses, breads, seafood, poultry and beef in cuts and portions of your choosing. This market also boasts a large, global wine selection and spices from around the world.
Find Your Muse
If you love art, you’ll love experiencing variations on a theme through Atlanta’s vibrant museum scene for free:
High Museum of Art:
(First Saturdays and Second Sundays) Complete with more than 15,000 works of art — from classic to contemporary — you’ll find artistic beauty at every turn. The museum is free to Fulton County residents the first Saturday of each month and free to the public for Second Sunday Fundays, which includes family-friendly programs from 1:00 to 4:00 p.m.
Imagine it! The Children’s Museum of Atlanta:
(Free Second Tuesdays) Learning about the world has never been so fun with hands-on, creative exhibits and innovative programming that will entertain your child.
Lit.:
(Books, Booze and Beats) This is not your mom’s book club. Held on the last Thursday of each month at the Edgewood Speakeasy, this monthly event has been dubbed “karaoke for books.” Ten guests from the crowd read excerpts from a chosen book based on the theme of the month. Admission to the event is one new, old or gently used book donation.
Make History
History is present at every turn in Atlanta — from historic sites to historic homes. Explore a few of Atlanta’s famous attractions for free:
Martin Luther King Jr. National Historic Site:
Tour the birth home of Dr. King and the Historic Ebenezer Baptist Church, visit the galleries, walk the world peace rose garden and more.
Oakland Cemetery:
Walk among the beauty of Victorian sculptures, a botanical garden, a wildlife habitat and the graves of Atlanta’s most well-known statesmen.
Go Wild
Lions and tigers and bears are just a few of the wild and exotic animals that also call Atlanta home. Here’s where you can visit a few for free.
Noah’s Ark:
See some of the 1,500 furry and reptilian faces that make up this animal refuge with a free, self-guided tour from noon to 3 p.m. every Tuesday through Saturday. Donations are always welcomed. Call before your visit.
Georgia Aquarium:
(Free on Birthday) Georgia residents can celebrate their birthday with free admission (just show a valid ID or birth certificate) and explore all galleries and shows the aquarium has to offer.
When planning for the overall financial security for yourself and those you love, life insurance should typically play a part. This is because the proceeds from a life insurance policy can be used to ensure that dependents and survivors won’t be left with having to pay a debt or other expenses out of their own pockets. These funds can also be used for ensuring that the daily living expenditures of a spouse and children can continue – without those you care about having to go into a financial hardship, or even to change their lives drastically.
If you are in the process of shopping for life insurance – or you soon will be – then several key factors are important to keep in mind. These include securing the right type and amount of insurance coverage, as well as making sure that the company you plan to purchase the coverage through is safe and stable financially, and that it also has an excellent reputation for paying out its policy holders’ claims. One carrier that meets these standards is Primerica.
The History of Primerica Insurance Company
Primerica has been in the business of offering term life insurance that is affordable since 1977. Since its beginning, the company has had a key focus on serving middle America’s “Main Street” families in neighborhoods across the country. Primerica was started by Arthur (Art) Williams, a former high school football coach turned life insurance advisor.
Within just the first few years of operation, the company contracted with Massachusetts Indemnity and Life Insurance Company – and by 1982, the company had gone public and started trading its stock on the NASDAQ market.
The company takes more of an educational approach, and in addition to insurance coverage, it also focuses on educating its prospects and customers. For instance, the company’s complimentary Financial Needs Analysis asks some important questions to pinpoint exactly where an individual or family is on their goals, and then it suggests various financial solutions that fit both their needs and their budget.
There are currently three components to Primerica’s life companies. These include the following:
Primerica Life Insurance Company
Primerica Life Insurance Company of Canada
National Benefit Life Insurance Company
Primerica’s products are offered through independent representatives, many of whom work on a part-time basis. Over time, Primerica has earned numerous awards and accolades, including being named to the 2015 Forbes list of America’s 50 Most Trustworthy Financial Companies. The company has it main headquarters in Duluth, Georgia.
Primerica Life Insurance Review
Today, Primerica is a leading provider of term life insurance in the industry. The company pays out an average of $3.5 million in benefit claims every day – and more than 90 percent of these allegations are paid out within 14 days of the claim being submitted. Currently, Primerica serves more than 4.3 million customers and policy holders.
The company currently has more than $728 billion of life insurance in force. A significant portion of the policies that are sold via Primerica agents are done so using the “Buy Term Invest the Difference” philosophy. This alludes to having clients purchase affordable life insurance, and use the remainder of their funds (that may have been spent on more expensive permanent insurance protection) to invest in mutual funds and other appropriate investments for the client.
Using this concept, Primerica believes that people should look at purchasing life insurance in the same manner that they view buying auto, health, or home owner’s insurance – in other words, maximize the amount of the coverage and invest the difference. Doing so can provide individuals and families the ability to accumulate more money, and in turn, live a stress-free retirement in the future.
Certainly, one of the key advantages of the term life insurance products that are offered through Primerica is the lower rates (as compared to a comparable permanent life insurance policy). While an insured can get a nice amount of coverage for a reasonable rate, especially if they are young and in good health at the time of application, it is important to keep in mind that term life insurance is only issued for a set period, such as ten, fifteen, twenty, or thirty years. Then, once the initial policy has expired, it will be required that the insured renew the policy if they want to keep coverage in force. This, however, will typically be at a much higher premium rate, given the insured’s then-current older age.
However, for those who are seeking a way to cover “temporary” needs, such as the payoff of a mortgage and ensuring that a child or grandchild has enough money to attend college in the future – then a term life insurance policy could be a viable option.
Insurer Ratings and Better Business Bureau (BBB) Grade
Due to its robust and stable financial footing, and the timely way it pays out claims to its policy holders, Primerica has earned high ratings from the insurer rating agencies. This includes an A+ (Superior) by A.M. Best Company, of which less than 20 percent of life companies meet this standard.
Also, Primerica has been an accredited company via the Better Business Bureau (BBB) since January 1, 1980. The company has been provided with a grade of A+ by the BBB, on a scale of A+ to F.
Over the last three years, Primerica has closed out a total of 140 customer criticisms through the Better Business Bureau (12 of which were closed out within the past twelve months). Of the total 140 customer complaints, 77 of them focused on problems with the company’s products and services, 33 focused on billing and collection issues, and the other 30 had to do with advertising and sales issues.
Life Insurance Coverage Offered Through Primerica
Primerica offers straightforward and affordable term life insurance coverage. Many of the policies that are sold by this company offer renewal options, so that the insured may continue coverage once the initial period of the policy has been surpassed.
There are many different ways in which policy holders may structure their insurance coverage through Primerica, as the company offers individual riders and add-ons like terminal illness benefit, waiver of premium, and increasing benefit riders.
Primerica offers value through their unique approach to buying life insurance. Its primary life insurance offerings include the TermNow and Custom Advantage plans. Both options offer guaranteed insurability to the insured’s age 95, as well as a terminal illness benefit, industry leading renewal options, affordable renewal rates, and the flexible use of riders that can help with increasing the coverage and / or better “customizing” the policy to better fit the insured’s needs.
Other Products and Services Available Via Primerica Insurance Company
In addition to term life insurance coverage, Primerica also offers several other products and services that can provide solutions to its clients. These include:
Investments – Primerica offers mutual fund investments so that clients can put away money for the future. In many cases, clients may have the option of either investing a lump sum, or dollar cost averaging whereby they invest a certain amount of money on a regular basis over time.
Auto Insurance Coverage – Primerica offers auto insurance coverage through the Primerica Secure Referral Program. Here, clients can obtain competitive rates in ten minutes or less, and most individuals will qualify for this coverage.
Home Owners Insurance Coverage – As with the auto insurance coverage, the home owners insurance coverage that is offered via Primerica is done through the Primerica Secure Referral Program, which can make it easy for individuals to find out the quote they are eligible for, and to move forward if it is the plan they choose.
Long Term Care Insurance – Primerica also offers long-term care insurance coverage via some of the oldest and most experienced companies in the long term care insurance market place. Having this coverage can help clients to ensure that their other assets and savings are secure and in place for their originally intended purpose.
Pre-Paid Legal Services – While many people may need the services of a lawyer, not everyone can pay the high fees that attorneys are known for charging. With legal insurance protection, though, the playing field is leveled. By having a legal insurance plan, clients can access a plethora of different services, such as will creation, legal consultation, motor vehicle-related benefits, durable powers of attorney, IRS audit assistance, and probate benefits.
Identity Theft Defense – Today, identity theft is the fastest growing crime – which puts everyone in harm’s way when it comes to having their identity stolen. By having identity theft protection, though, if an incident occurs, the client may be covered from a financial perspective, as well as via a long list of other support services.
Debt Reduction / Payoff Solutions – The debt solutions that are offered through Primerica can help individuals and families to get on the road to debt freedom. The Primerica Debt Watchers product allows clients to use the information that is contained in their Equifax Credit Report to put together a simple to understand plan towards paying off their debt. This differs from many of the other debt relief products that are found in the market place today because it doesn’t just limit clients to seeing debts on their credit report, but rather to create an overall plan for becoming debt free.
Also, in addition to the other educational solutions and concepts that may be provided include the following:
High Cost of Waiting
Pay Yourself First
Theory of Decreasing Responsibility
Rule of 72
Power of Compound Interest
Debt Stacking
Being out of debt, and well protected with life insurance and other coverage, can make clients’ lives much easier.
How to Get the Best Life Insurance Rates with Primerica Insurance Company
If you are seeking the best rates on life insurance through Primerica – or from any other life insurance carrier – then it is recommended that you work in conjunction with an independent life insurance agency or broker. In doing so, you can compare different life insurance policies, companies, and premium prices – and from there, you can choose which one will be the greatest for you.
When you are prepared to proceed with finding out the best coverage option for you, we can offer support. We are an independent life insurance brokerage, and we work with many of the best life insurers in the market place today. We can get you all the necessary details needed to make a well-informed life insurance coverage buying decision. We can do so for you very swiftly, simply, and conveniently – all from your computer – and without you having to meet in person with a life insurance agent.
We understand that the process of purchasing a life insurance policy can seem a tad bit overwhelming. There are many different variables and components you need to consider while choosing the right coverage for your needs. But there is good news. This process can be so much easier when you are working with an ally on your side who can point you in the right direction. So, contact us today – we’re here to help.
Last Updated on February 25, 2022 by Mark Ferguson
Buying one rental property may not make you a ton of money right away. However, rentals can be an amazing investment when held for the long-term and when multiple properties are purchased. There is also the opportunity to buy larger commercial or multifamily properties, which can increase returns as well. With a good rental property, you should be making money every month (cash flow); you should make money as soon as you buy by getting a great deal; you will have fantastic tax advantages, you can use financing which greatly reduces the amount of cash needed; and the property value and rents will most likely go up in value over time.
Rental properties have been a great investment for me. I make more than $100,000 a year from the cash flow on my rental properties after all expenses including mortgages, property management, maintenance, and vacancies. I now have 20 rental properties which are a mix of residential and commercial. I bought my first rental property in December of 2010 for $97k. I started with residential properties but now buy almost all commercial, including a 68,000-square-foot strip mall in 2018.
You cannot buy just any property and turn it into a rental if you want to make a lot of money. You have to buy properties below market value with great cash flow to be a successful rental property owner. Not only do I make money every month from my rentals with minimal work, but my rentals have also increased my net worth thanks to buying below market value and appreciation (I don’t like to count on appreciation, but it is a nice bonus). This is not just a hypothetical article. I have owned rentals for many years, kept track of their returns, and written many articles about what I have learned.
The cool thing about real estate is while I have more than $6,000,000 worth of rental properties, it did not take millions of dollars to buy them.
Why did I choose rentals?
One of my passions is automobiles. I purchased a 1986 Porsche 928 a few years ago, and I absolutely love that car. I also have a 1999 Lamborghini Diablo, a 1981 Aston Martin V8, a 1998 Lotus Esprit Twin Turbo, and a few other cars. In my early 20s, I never thought I could afford any of these cars in my early. However, I started to make decent money as a real estate agent in my mid to late 20s. The problem was I was not saving much money. I just kept spending it. I knew if I ever wanted to get ahead in life and be able to afford these cars, I would have to invest the money I was making. I researched everything I could and decided rental properties were the best investment. I worked very hard to save money to buy my first rental.
As soon as I started buying rentals, I could see the fruits of my labor. I was making money every month from rent, I made money as soon as I bought the house because I bought it below market value, and it was forcing me to save money. I wanted to buy as many as I could, and I knew with steady money coming in every month from the rentals I could someday feel comfortable buying expensive cars.
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Why are rentals a good investment?
Not all properties are a good rental, but if you can find properties that are, they can be an amazing investment. A rental property should have a number of attributes
Cash flow
Good rentals will make money every month after paying all expenses. The expenses should include mortgage, taxes, insurance, maintenance, vacancies, and property management. The cash flow is the rent minus all of these expenses. Some people like to shoot for different numbers, but I always liked to see $400 to $500 in cash flow per property.
Buy below market
I get a great deal on every rental I buy. I don’t want to pay retail when I can pay to 20% to 30% less than retail. It is not easy to get great deals, but it is possible. On almost every house I have ever bought, I got a great deal. That instantly increases my net worth, makes me more cash flow, and looks better on my balance sheet for banks.
Leverage
You can put as little down as 20 percent when buying rentals. You can put even less down when buying a property as an owner occupant and then turning the property into a rental.
Tax advantages
Most expenses on rental properties are deductible or depreciable. You can also depreciate the structure of a rental property, which means you can save thousands of dollars each year on your taxes. You can also complete a 1031 exchange on rentals to avoid capital gains taxes.
Appreciation
Many people only talk about housing prices when comparing rentals to the stock market, but appreciation is a bonus. It is not what you are shooting for when buying a rental property because no one knows for sure if prices will go up or when.
It is not easy to find rental properties that are a good investment. It takes me months to find great deals that make over $500 a month like mine typically have, and they are not available in every market. My typical rental property used to cost between $80,000 and $130,000, and it rented for $1,200 to $1,500 a month. I put 20 percent down on the properties and finance the rest with my portfolio lender. I usually end up spending $25,000 to $35,000 in cash to buy each rental property. Cash flow is not the only benefit of rental properties. I slowly pay down the mortgage every month; I have great tax advantages; and they will most likely appreciate.
I am able to save that much cash from each rental property because I make a very good living as a real estate agent as well as from fixing and flipping houses. I like to have nice cars and a nice house, but I always make sure I am saving and investing money first. There are ways to buy rental properties with little money down, but I think you will get further ahead in life by saving as much as possible and investing wisely.
How much do you need to buy a rental?
I go over the exact cost of a rental property here, but let us assume that it costs $30,000 to purchase and repair one rental. You do not have to invest $90,000 a year to buy three rentals a year because you can begin refinancing rental properties after you own them for a year and take cash out to invest in more rentals. You can also save the cash flow from your rental properties to buy more rental properties. I usually buy my properties for about $100,000, with a four percent interest rate and 20 percent down, which leaves a payment of $381 for principal and interest. Those numbers combined with rents from $1,200 to $1,500 a month leave me with at least $500 a month in income from my rental properties.
How much should a rental property cash flow?
It is not easy to make $500 a month in cash flow from a single rental property. I detail how to calculate cash flow here, and I created a cash flow calculator to help people determine cash flow. Cash flow is not the rent minus the mortgage payment: you must consider many other factors. My rents range from $1,250 to $1,600 a month, and my mortgage payments range from $450 to $650 a month. I have to account for maintenance and vacancies on my rental properties, which leaves me with about $500 in profit each month. I buy my properties for $80,000 to $130,000 and usually make quite a few repairs before I rent them out.
What are the long-term returns for someone with little money?
Investing in rental properties can provide fantastic returns when you have a lot of money to invest. Even if you have little money, you can invest in rental properties. I am going to walk through how many years it will take someone to accumulate one million dollars from investing $7,500 a year into long-term rental properties.
The more money you make and save, the easier it is to make one million dollars from rentals. However, even people who do not make a lot of money can get there, although it may take a little longer. I am going to write out this plan assuming someone has a $75,000 salary and can save 10 percent of their income a year.
When you first start out, $7,500 does not go very far, and it takes a lot of money to buy an investment property. Luckily, there are many ways to buy a rental property with much less money if you are an owner occupant or use some of the techniques I discuss here. In the first year, the best bet is to buy a HUD home or REO that needs some work but will still qualify for an FHA or conventional loan. The key to my strategy is buying houses below market value. HUD or REO houses are a great way to do that. We will assume the investor can buy a house similar to the ones I purchase in my area, which cost around $100,000. There are closing costs that the buyer is charged when they get a loan, but you can ask the seller to pay most of your costs.
Buying as an owner occupant year one
The first step is to buy a house. But you cannot buy just any house; you want to buy a house as an owner occupant that you can later turn into a rental. You also want to get a great deal on a house to gain instant equity. To get a great deal on a house, you may have to buy one that needs some repairs. With a HUD home, you can roll $5,000 of the repairs needed into the loan with the FHA escrow and only put 3.5 percent down for the down payment. If the home needs a lot of work, you could use an FHA 203K loan to roll more repairs into the loan. We will assume this house needs $4,000 in work to qualify for a loan, and you bought a HUD home with the costs rolled into the loan. With an FHA loan, you have to pay mortgage insurance every month and an upfront mortgage insurance premium (which could be $200 or more a month).
With a conventional loan, mortgage insurance is much lower than FHA, and you might be able to remove it after two years. However, you may not be able to roll the repairs into the loan, but you could get the seller to fix some items before closing. If the repairs are cosmetic items, you should be able to get a loan without making the repairs before closing. I will assume the total cash needed to close on this hypothetical house is about $5,000. Hopefully, this house was bought below market value because it needed some repairs and was a foreclosure. Once the house is repaired, it should be worth around $125,000.
Since you bought this house as an owner-occupant, you have to live in the home for at least one year.
Year two
After one year, you have gained about $22,000 in net worth; $125,000 – $100,000 purchase price – $4,000 repairs rolled into the loan + $1,000 gained in equity pay down. In year one, no rent was collected because the home was owner-occupied to get a low down payment. In year two, the house is rented out and you can buy another owner-occupied home using the same strategy. When you try to buy a home right away, you won’t be able to count the rent from the first house as income right away. It is best to buy houses priced low enough that you can qualify for two houses at once to make this work. Otherwise, you may have to wait up to a year for the rent to count as income and can buy again.
You can only have one FHA mortgage at a time, so this time you have to get a conventional loan with 5 percent down. In the second year, you have saved up another $7,500 from your job and have $2,500 left over from the first year for a total of $11,500 saved. The second home also costs $100,000, and the seller pays 3 percent closing costs. The down payment needed is $5,000, and $5,000 in repairs are needed on this second house. The total cash needed to buy an owner-occupied home is $10,000 and the repaired value is $125,000.
The first house is rented out for $1,300 a month (which I will do all the time on a $100,000 purchase), and the payment is $550 with taxes and insurance. Add vacancy, maintenance, mortgage insurance and we’ll assume $300 a month in positive cash flow.
Year Three
In the second year, you made $25,000 from buying house number two (equity) and made $3,600 from cash flow. You also made $2,500 from equity pay down on both loans (I am assuming each loan will pay down $500 more each year). In year two, all the savings was used from year one, but you saved $7,500 and made $3,600 in cash flow for a total of $11,100 savings. Buy another house using an owner-occupied loan and use $10,000 of cash. Net worth increases to $53,100 after adding the equity pay down, cash flow and equity gained in the purchase of a new home.
The second house is rented out again using the same figures, although the mortgage insurance may be less because we are using a conventional loan instead of an FHA loan.
Year Four
Another house is bought below market value in year four. Cash flow increases to $7,200 a year plus $1,100 in previous savings and $7,500 saved this year. You now have $17,300 cash saved up before we subtract another $10,000 for the purchase of a new house as well as cash for the repairs. Net worth has increased $25,000 on the purchase plus $4,500 in equity pay down. The total net worth increase is now $90,800 for the last four years.
You own four houses and three of them are rented out. At this point, you may be able to remove the mortgage insurance on the conventional loans that have been held for two years, but I am not going to in my calculations to keep things simple and conservative.
Year Five
In year five, we repeat the entire process again and come up with the following numbers. Cash flow increases to $10,800 and previous savings $5,800 and $7,500 saved up equals $25,600 saved cash. The investor purchases another property and uses $10,000 in cash to leave $15,600 in his cash account. Net worth increases by $7,000 for equity pay down: $10,800 for cash flow and $25,000 for the purchase of a new property. The total increase in net worth is now $133,600.
You may have noticed this investor just mortgaged his fifth house. For many people, getting a loan on more than four houses is very difficult. However, the investor is buying houses as an owner occupant, which makes it much easier to get a loan.
Year Six
The same process is repeated all over again. Cash flow is $14,400, previous cash is $14,100, savings equals $7,500 for $37,500 cash minus $10,000 for a new purchase. The investor has $27,500 left in his bank account. He increases his equity pay down to $13,500, has an increase of $25,000 in net worth from a purchase, and an increase in net worth from cash flow of $14,400. He now has increased his net worth by $186,500.
Year seven
In year seven, the seventh house is purchased. Cash in the bank equals $26,000 from previous savings, $18,000 in cash flow, and $7,500 in new savings, which totals $53,000. You are now able to buy two properties this year! Buy another owner-occupied property using $10,000 and an investor-owned property.
To purchase an investment property, we need to put at least 20% down, and we still need to make repairs. We are buying below market value still, so we are going to assume we are adding $25,000 more a year in equity and $3,600 more a year in cash flow. Estimated costs for down payment and repairs is $32,000 to buy an investment property. You have $11,000 of cash left after buying two properties this year. Net worth increased by $60,500 after adding the usual amounts to total $247,000.
Year eight
Year eight is very exciting because we get to add two properties into the mix instead of just one. With the extra houses added, increased cash flow, and continued equity pay down, our net worth increased $98,200 in just one year! Total net worth is now $345,200, and you are making real progress! You have $42,200 saved up after buying another house in year eight as an owner-occupant, so you can buy another investment property, but won’t, because our margins will be too thin with only a couple thousand in savings.
Even though you are still making only $75,000 a year, you increased your net worth by almost $100,000 a year. There are not many people who can increase their net worth by more than they make in a year!
Year nine
In year nine, you are adding $26,500 in equity pay down, $28,800 in cash flow, $25,000 in built-in equity with purchases, for a total net worth increase of $80,300. Your total net worth increase over nine years is now $425,500. You also have $60,000 saved up after paying for one house as an owner occupant, which is enough to buy another investment property, leaving $26,500 cash left over!
Year ten
In year ten, you have enough cash to buy two more properties and have $28,000 in cash left over. Net worth increases by $114,500, bringing us up to a total increase of $540,000.
Year eleven
You can buy two more properties and increase your net worth by $129,200 for a total of $669,200. Cash flow is at $43,200 a year, and there is $36,700 of cash left over after buying two more properties. You could buy a third house this year but decide not to stretch your limits. You need to make sure you have plenty of reserves for the rentals.
Year twelve
This year, you buy three houses because there is $94,600 in cash available. After buying the three houses, there is $22,100 cash left in savings, equity was paid down, and $44,500 and $50,400 in cash flow was generated. Total net worth is now $814,100! You are getting closer to making one million dollars investing in real estate!
Year thirteen
You have increased your net worth by $190,200 this year because you bought three houses last year. The total net worth increase is now $1,004,300! Your actual net worth will be higher than this because I did not calculate savings from your income into the net worth, just the gain from buying rental properties. Cash flow is now $61,200 a year, and you have paid off $54,000 of equity in one year!
You own 16 rental properties which are producing over $60,000 a year! The incredible part is we did not increase the rents at all, even though they are likely to go up over thirteen years. We assumed there was no appreciation, even though there likely will be over that time. Due to the tax advantages of rentals, you are probably taking home as much in passive income from your rentals as you are from your job.
Things we did not consider
This was a very basic calculation for how to make one million dollars investing in rental properties. It would take a book to go through all the variables and possible roadblocks that might come into play. Here are a few items we did not consider, which would have an impact on the time it takes to reach one million dollars in increased net worth.
Inflation will increase the prices of homes and wages as well as rents. While the investor has to pay more for houses each year, he will also be making more and saving more. The biggest factor is the rent increases. His rent on the first houses he buys will increase as time goes on, but his payments will stay the same. His cash flow will increase greatly as time goes on, which we did not account for.
Taxes were not accounted for either because that gets very complicated. The cash flow the investor is making would be income, but the investor could offset that with depreciation from the rental properties. I assumed those two factors even themselves out.
Investment property purchases had 20 percent down, where the owner-occupant purchases had 5 percent down. There should be an increase in cash flow on the investment property purchases because of the lower down payment, but I left them the same to make the math easier.
Refinancing was not considered either, but the investor could easily have refinanced a couple of properties to get more cash out to buy more rental properties. This would have increased cash flow and net worth due to the increased number of properties purchased.
Obtaining more than 4 or more than ten mortgages can be difficult. I am assuming the investor is able to get as many loans as possible with a lender. I can have as many loans as I want with my portfolio lender, but many people cannot. This would be a roadblock once he reached ten financed properties.
Buying owner-occupied properties each year is possible but may not be realistic. Moving thirteen times in thirteen years may put a bit of stress on the family!
I also assume the investor manages his homes himself, which is doable in the beginning but it maybe tough when he gets ten homes or more.
How Did I Build a Rental Property Portfolio
I have 20 rentals now, but I did not buy them overnight. I started in 2010 and slowly bought them over the last 9 years. I bought 1 in 2010, 2 in 2011, 2 in 2012, and kept building from there. I worked very hard to make a great living as a real estate agent, but I also used real estate to buy more rentals.
I bought my first rental by refinancing my personal house and taking cash out of it. I also refinanced some of my rentals along the way so that I would have more capital to buy even more rentals. I was lucky that our market appreciated so much, but I also bought every rental property way below market value, which allowed me to take cash out when I refinanced.
I stopped buying residential rentals in 2015 because the market in Colorado became too expensive. However, I was able to invest in commercial rentals in my area and cash flow on them. There are a lot of different ways to invest in real estate!
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How much have my rentals made me?
I put together some stats to show how much rentals made me after four years of owning them. It has been a few years since then, and things have gotten even better! At the time, I had bought 11 rental properties. After doing some calculating, I discovered my rental properties have appreciated and been bought cheap enough to produce a gain of $600,000 since December of 2010! It is important to remember that net worth is all on paper, and I would not realize $600,000 in profit if I decided to sell all of my rental properties today. I would have to have selling costs, and I would have a large tax bill if I sold my rental properties.
How much equity have I built with rentals?
One thing I have done with every rental property I buy is buying them below market value. I try to buy my properties at least 20 percent below the current value, and if a home needs repairs, I want that rental property worth 20 percent more than the price I paid plus the cost of the repairs. For example; if I buy a rental for $100,000 and it needs $20,000 in work, I want it to be worth $144,000 or more when I am done repairing the home ($100,000 + $20,000 = $120,000 * .20 = $144,000). That means I usually gain at least $20,000 in net worth on every rental property I buy. The 11 rentals I have bought have gained at least $220,000 (I buy many properties at more than 20 percent below market) just by buying homes at the right price.
I also have been lucky that prices have increased significantly in Northern Colorado in the last few years. I would say lucky for the sake of calculating net worth, but the increase in prices has made it harder to buy cheap rental properties with great cash flow. If you want to know how much my houses have appreciated, I broke down each rental and how much money it has made below.
Rental 1
I bought my first rental property for $96,900 on 12/5/2010. At the time I bought it, I knew it was worth at least $125,000, which is not a huge spread between the buy price and fair market value, but the home needed less than $2,000 in repairs.
The house is now worth at least $165,000 and most likely more. I had it appraised earlier this year, and the appraisal was $165,000 and our market values have increased since that time. If the house is worth $165,000, then my net worth increased about $66,000 after you subtract the repairs. The home was rented out for 1,050 a month when I first bought it and now is rented out for $1,400 a month.
Rental 2
I bought rental property number 2 for $94,000 on 10/5/2011. This home needed much more work than number one, and I spent about $15,000 repairing the house. At the time I bought this house, I thought it was worth $140,000 after it was repaired, and this house is now worth around $175,000. That leaves me with a net worth increase of about $66,000 on this property as well.
This house has been rented to my brother-in-law since I have owned it. The rent has been steady at $1,100 the entire time but could be $1,400 to $1,500. My brother-in-law has a house under contract and will be moving soon.
Rental 3
I bought my third rental property for $92,000 on 11/21/2011. This house needed repairs, and I spent about $14,000 getting it ready to rent. At the time I bought this house, I thought it was worth $135,000 fixed up, and this house is now worth around $170,000, which creates a net worth increase of $64,000.
This home has been rented to the same tenants for $1,250 a month, but we just raised the rent this month to $1,300 a month. It would probably rent for $1,400 to $1,500 to a new tenant.
Rental 4
I bought rental property number 4 for $109,000 on 1/25/2012. This home also needed about $14,000 in repairs before it could be rented. At the time I bought this house, I thought it was worth $145,000. This house is one of my most valuable rental properties and is worth $185,000 in today’s market. That leaves a net worth gain of $62,000.
This home was rented for $1,300 up until this year when I rented it to new tenants for $1,500 a month.
Rental 5
I bought rental property number five for $88,249 on 12/14/2012, and it needed more repairs than the others. The market had definitely begun to improve at this point, and finding a home that was under $100,000 was very tough. This home was a good deal, even though it needed $18,000 in repairs. I thought it was worth around $130,000 when I bought it, and I now think it is worth $165,000. That leaves a net worth increase of $59,000.
This home has been rented to the same tenants for $1,200 a month.
Rental 6
I bought rental property number six for $115,000 on 3/7/2013. This house needed about $15,000 in repairs, and I thought the property was worth about $150,000 after it was fixed up when I bought it. It is now worth $170,000, and that leaves a net worth increase of $40,000.
This home was first rented for $1,300 a month until earlier this year it was rented for $1,400 a month.
Rental 7
I bought rental property number 7 for $113,000 on 4/18/2013. This house needed only $9,000 in repairs, and I thought it was worth $155,000 when I bought it. This neighborhood has done great, and the home is now worth $185,000, which leaves a net worth increase of $63,000.
This home has been rented for $1,400 a month since I bought it.
Rental 8
I bought rental property number 8 for 97,500 on 11/18/2013. The home needed $15,000 in repairs, and I thought it was worth $150,000 once fixed up. It is now worth $165,000, and that leaves a net worth increase of $52,000.
This home has been rented or $1,400 a month since I bought it.
Rental 9
I bought rental property number 9 for $133,000 on 2/14/2014. This home only needed $4,000 in work before it was rented, and I thought it was worth $155,000 after it was repaired. I think it is worth $165,000 now, and that leaves a net worth increase of $28,000.
This home is rented for $1,400 a month.
Rental 10
I bought rental property number 10 for $99,928 on 4/13/2014. The home only needed $3,500 in repairs before it was rented, and I thought the home was worth $125,000 when I bought it. I think it is worth about $130,000 now, leaving a net worth increase of $26,500.
This home is rented for $1,250.
Rental 11
I just bought rental property number 11 on 7/24/2014. This house will need about $15,000 in repairs, and I paid $109,318. I think this house is worth $155,000 repaired, leaving a net worth increase of $30,000.
I think this home rents for $1,400 a month.
What is the total gain?
If you add up all these numbers, my total net worth has increased by $556,500, but these numbers do not tell the entire story. I had more costs than I listed when I first bought these houses, but I did not go back through each closing file to get those exact costs. On many of these properties, I had the seller pay some closing costs, which covered much of my buying costs. I also had some carrying costs while I was getting the properties repaired and they were not rented out yet. However, I also did not include any of my cash flow or the money I made on these properties since 2010. I used all of my cash flow to pay off rental property number 1, which added up to over $70,000. That $70,000 in cash flowdefinitely covers all the closing and carrying costs I had on each property and went directly to increasing my net worth by paying off a loan. Speaking of paying down loans, I did not include the equity I have gained over the last 3.5 years by paying down my loans. I have paid down thousands of dollars of loan balances with regular payments on my rental properties.
Net worth is not money in my pocket but what I am worth on paper. Even though it is cool to see this number increase over time, this money is not all readily available. I would have to sell my rental properties to see this money, and I would not see all of it. There would be selling costs when I sell the properties and taxes owed once I sold them. Since I am using the depreciation on the rental properties to save me in taxes, I would have a higher than normal tax bill because I would have to recapture that depreciation.
What about in 2019?
I have 20 rentals that have increased my net worth about $3,000,000 in the last 9 years. I have gotten lucky that Colorado has appreciated like crazy, but they were still awesome deals even without that appreciation. They make me about $13,000 a month after all expenses. The cool part is I have spent less than $350,000 on the properties after refinancing some to take money back out. Talk about an amazing investment!
You can see all my rentals here.
My book on making money with rental properties
I provide a lot of information on my blog and YouTube channel, but I also have written six books. My book Build a Rental Property Empire has been a best-seller for years. It goes over everything I do to find, finance, repair, manage, and even sell my rentals. I also added a commercial chapter to go over that aspect as well. You can find the book on Amazon as a paperback, audiobook, and Kindle. Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely.
Conclusion
It can take time to make a lot of money with rentals, but it is possible. Over the years I have bought a 1999 Lamborghini Diablo, a 1998 Lotus Esprit, a 1981 Aston Martin, and more thanks to the rental properties. The rentals have also allowed me to be aggressive with my house flipping business because I know I have that cash flow coming in every month. We flipped 26 houses last year!