Colorado Springs, CO, with its dramatic landscapes and deep history, offers an extensive array of fun-filled things to do that won’t cost you a dime. From the iconic Garden of the Gods to experiencing the local culture at events, there’s certainly no shortage of free things to do in Colorado Springs.
Whether you’re on the hunt for a new home, apartment, or are searching for houses for rent in Colorado Springs, CO, in this article, we’ll take a look at the best free activities in Colorado Springs for anyone looking to enjoy what the city is known for without breaking the bank.
1. Visit Quail Lake Park
When creating a pros and cons list for living in Colorado Springs, “abundance of outdoor activities” often tops the list as the biggest perk.
“We believe in connecting adults and youth to the outdoors through enriching experiences. One free activity we recommend is spending time at Quail Lake Park,” shares Martin Trujillo at Colorado Youth Outdoors who hosts outdoor activities around Colorado. “You can fish from the shore, hike around the scenic lake, or enjoy a picnic while taking in views of Cheyenne Mountain.”
Quail Lake Park offers a peaceful escape with its beautiful lake, walking trails, and lush greenery. It’s a popular destination for outdoor activities and ranks among the best free things to do in Colorado Springs.
Trujillo also says that visitors can enjoy a hands-on experience with fly fishing, making it ideal for beginners and a wonderful way to connect with nature in the heart of the city.
2. Explore Garden of the Gods
“You can’t visit Colorado Springs without exploring Garden of the Gods,” states Lizzie Farr, a lifestyle blogger at Wandering the Gap.
Garden of the Gods is a stunning National Natural Landmark in Colorado Springs, renowned for its striking red rock formations and panoramic views.
“The park has trails of varying lengths and difficulties, making it the perfect destination for all experience levels,” says Farr. “Make sure you keep your eyes peeled for wildlife, like hawks and bighorn sheep and don’t forget to check out the visitor center for an overlook, informational exhibits, a cafe, and a gift shop.”
With both the visitor and nature center, as well as the park itself, being free to explore, this natural oasis stands out as one of the top free things to do in Colorado Springs.
3. Attend an event at Pikes Peak Library District
In the colder months, it can be difficult to find ways to engage and keep the kiddos entertained when it’s just too cold to be outside.
“You can’t miss the Pikes Peak Library District’s free children’s programs at each of their 15 locations,” recommends local Kaitlyn McEntire, doula and birth and motherhood photographer. “For the younger ones, they host Storytime, Create and Play, Music and Movement, Toddler Time, and Baby Times.”
Can’t make it to one of the scheduled events? Most of the local libraries in the city also have open play areas stocked with toys to spark the kiddos’ imagination—available for play regardless of the day or time.
4. Experience The Broadmoor hotel
“One of my favorite free things to do in Colorado Springs is walk around The Broadmoor hotel,” shares photographer Jennifer Shneidman. “The property is historic and stunning and the walk around the lake is incredibly serene.”
Spending an afternoon strolling around a luxurious hotel can be a delightful free activity, allowing you to soak in the opulent decor and stunning architecture. Hotels feature beautiful lobbies, art installations, and sometimes lush gardens, providing a unique opportunity to experience a taste of luxury without spending a dime.
“Make sure to visit during the holiday season, when they have elaborate decorations and a life-sized gingerbread display,” suggests Shneidman.
5. Enjoy Old Colorado City
Wandering around a city is a delightful and free way to immerse yourself in its unique atmosphere. You can discover hidden gems, enjoy street art, and experience local culture simply by strolling through the streets and neighborhoods of Colorado Springs.
Ashley Tisdale at Aberdeen Ridge, an independent living community in Colorado Springs, shares her favorite part of the city to meander. “Old Colorado City is a cute and charming neighborhood that will have things of interest for all. Between the local restaurants—my favorite being Pizzeria Rustica—and all of the small business shops, there is something for everyone.”
Tisdale concludes, “The neighborhood is charming, eclectic, historical, and overall a fun way to spend a day wandering around.”
Exploring the different neighborhoods on foot not only saves money but also creates lasting memories as you uncover their charm at your own pace.
6. Hike the Mesa, Greenlee, and Red Rock Canyon Path Loop
The outdoor activities in and near the city provide locals with an abundance of free things to do in Colorado Springs. With a captivating blend of majestic mountains, sweeping slopes, and picturesque parks, the landscape offers diverse opportunities for hiking, biking, and rock climbing.
“If you love to hike or mountain bike, the Mesa, Greenlee, and Red Rock Canyon Path Loop is a must-see. This scenic trail features breathtaking views of red rock formations, peaceful meadows, and beautiful geological wonders,” shares Cindy Vance, co-founder of Women’s Wine Hiking Society, a women-only hiking community that hits happy hour on the trail.
Featuring a combination of easy and moderate terrain, it provides breathtaking views of the surrounding mountains. Vance also suggests taking a break along the way to enjoy your favorite drink and take in the stunning Colorado scenery.
7. Dive into history at the Western Museum of Mining and Industry
The Western Museum of Mining and Industry is an educational campus with multiple exciting experiences for everyone to enjoy. Situated on 28 acres of natural beauty, from Smith Creek and ponds to historic ranch buildings and diverse outdoor displays, the outdoor scenery at this museum can be enjoyed for free.
Say hello to the good folks at the front desk, bring a picnic lunch, and stroll around to discover the cool artifacts, photo ops, and unique sights.
8. Climb Pikes Peak
Another free thing to do in Colorado Springs where you can enjoy the outdoors is Pikes Peak. Known as one of Colorado’s most iconic mountains, the peak offers breathtaking panoramic views of the surrounding landscape. Accessible by car, hike, or cog railway, it attracts adventurers and nature lovers alike, making it a must-visit destination in Colorado Springs.
“Climbing Pikes Peak will give you bragging rights that you have been on top of a 14,000+ foot mountain,” jokes Courtney Heath, a lifestyle blogger at Crunchy Beach Mama. “The 6-10 hour hike will leave you with memories forever.”
Heath suggests, “Barr Trail is a great place to stop halfway up to eat and rest or even camp and make it a two-day adventure. Be sure to bring your jacket because it will be cold up there, but it is so worth it.”
9. Take a walk around the Lincoln Center
“One of Colorado Springs and best-kept secrets is the Lincoln Center off of Cascade,” shares local photographer Andrew Selby. “It’s an old elementary school converted into a town plaza.”
Spend an afternoon getting your steps in by wandering around the businesses and taking in the smells and sounds of the local Colorado shops.
Selby continues by saying that there is an array of local breweries, coffee shops, bakeries, and more to explore and meander around. These local businesses contribute to a distinctly ‘Colorado Springs’ atmosphere and a memorable experience.
Free things to do in Colorado Springs: Don’t break the bank
Colorado Springs is brimming with no-cost opportunities that highlight its scenic beauty and lively culture. Dive into the adventure and savor everything that makes this city a good place to live—whether you already call it home or are moving to Colorado Springs, these budget-friendly activities promise to create unforgettable moments. So, lace up your shoes, get outside, and uncover the wonders of The Springs.
Aurora is a bustling city on Denver’s eastern side with suburban convenience and big city amenities. If you’re considering a move to Aurora, there are a few key aspects to weigh. This guide will quickly cover 13 of the most relevant pros and cons of living in Aurora to help you decide if it’s the place for you.
Aurora at a glance
Walk Score: 43 | Bike Score: 53 | Transit Score: 35 Median Sale Price: $470,000 | Average Rent for 1-Bedroom Apartment: $1,594 Aurora neighborhoods | Houses for rent in Aurora | Apartments for rent in Aurora | Homes for sale in Aurora
1. Pro: Stunning surroundings
Aurora is home to some of Colorado’s best parks, including Cherry Creek State Park and the Aurora Reservoir. These spaces have miles of trails, picnic areas, boating, and even paddleboarding opportunities, meaning there’s always something to do in Aurora.
2. Con: Limited public transportation
While Aurora has access to the RTD light rail system, public transportation is limited in scope. Many locals rely on personal vehicles for daily commutes, as public transit routes don’t reach all parts of the city. If you don’t own a car, getting around could be a challenge.
3. Pro: Growing job market
Aurora has a growing job market, with large employers like the Anschutz Medical Campus and Raytheon Technologies calling it home. The city’s economic development is promising, with opportunities in healthcare, aerospace, and education. New job seekers will find a range of industries within close reach.
4. Con: Higher cost of living compared to nearby suburbs
Though it’s more affordable than Denver, Aurora’s cost of living can be higher than neighboring suburbs like Centennial or Parker. The median home sale price is slightly above the national median of $428,096. Apartments in Aurora follow a similar trend and go for $1,745 on average. Rent and home prices have been increasing steadily, so finding affordable housing might take some time.
5. Pro: Access to world-class healthcare
With Anschutz Medical Campus and Children’s Hospital Colorado located in Aurora, residents benefit from access to world-class healthcare facilities. For those in the medical profession or anyone prioritizing top-notch healthcare, this proximity is a considerable advantage.
6. Con: Traffic congestion during peak hours
While Aurora isn’t as congested as Denver, traffic can be frustrating during rush hours. Commuters using the major arteries like I-225 and E-470 often experience delays, especially on weekdays. It’s a factor to consider if you have a long commute.
7. Pro: Diverse food scene
Aurora’s diversity is reflected in its range of dining options. You can find everything from Ethiopian at Eatopia Bar and Restaurant to Vietnamese cuisine from Top Pho, meaning there’s always something tasty on the menu.
8. Con: Few walkable neighborhoods
Aurora has tons of cool neighborhoods, but walkability isn’t a strength for most of them. Residents typically need to drive to complete errands or visit local restaurants and entertainment spots, limiting pedestrian-friendly activities compared to larger Colorado cities.
9. Pro: Proximity to Denver
Living in Aurora means easy access to Denver’s attractions, like the Denver Art Museum and Coors Field. Aurora’s advantageous location provides a convenient balance between suburban living and being close to the job and entertainment opportunities found in the larger metro area.
10. Con: Harsh winters
While not one of the coldest cities in the U.S., Aurora’s winters can bring heavy snowfall. The city does handle snow removal well, but commuting can still be difficult. Winter weather may add time to your daily drives, especially if you live in an area that isn’t plowed as frequently.
11. Pro: Family-friendly
Aurora is known for being a family-friendly city with several parks, sports facilities, and highly rated schools. Aurora Public Schools and the Cherry Creek School District both serve the area, offering solid education options.
12. Con: Lacking nightlife
While Aurora has its share of restaurants and family-friendly events, the nightlife and entertainment options are limited. For an upbeat nightlife or more large-scale entertainment options, residents often visit friends living in Denver.
13. Pro: Active community calendar
Aurora hosts a variety of festivals and community events throughout the year. Events like Global Fest celebrate the city’s cultural diversity, and the Fourth of July Spectacular draws large crowds annually. There’s always something happening, which helps foster a strong sense of community.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Yes, installment loans can help you build credit by improving your payment history, adding variety to your credit mix and lowering your credit utilization. This shows lenders that you can responsibly manage different types of debt.
If you’re looking for ways to build your credit, installment loans are likely on your radar. However, before you take out a loan, it’s important to understand what installment loans are and how they can help (or hurt) your credit score.
Key takeaways:
An installment loan lets you borrow a lump sum of money and repay it in fixed installments.
An installment loan can help you build credit by improving your payment history, adding variety to your credit mix and lowering your credit utilization.
An installment loan can negatively impact your credit if managed improperly.
What is an installment loan?
An installment loan is a debt that provides you with a fixed lump sum of money that you repay in regular installments over a set time period. Installment loans differ from revolving credit, such as credit cards, in that you can’t continuously use the credit. Instead, you’ll need to apply for a new loan if you need to borrow additional money.
Here are some examples of installment credit:
Mortgages
Personal loans
Student loans
Auto loans
How do installment loans build credit?
Taking out an installment loan will impact your credit. However, whether that impact is beneficial to your score depends on how you manage the loan. Here are a few ways that installment loans can help you build credit.
1. Improve your payment history
Taking out an installment loan is one way to develop your payment history, which accounts for 35 percent of your FICO® credit score. For this to positively impact your credit score, you’ll need to ensure that you’re making regular, on-time payments. Even just one late payment on an installment loan can have a significant negative impact on your score.
To ensure you make your payments on-time, consider signing up for autopay so you don’t miss due dates.
2. Add variety to your credit mix
Credit mix refers to the different types of credit accounts you have, and it makes up 10 percent of your credit score. Having various credit accounts showcases to lenders that you can handle managing different types of credit. A history of successfully managing a mix of both revolving and installment loans signals to lenders that you’re a low-risk borrower.
If you have previously only taken out revolving loans, an installment loan can add variety to your credit mix. However, credit mix only accounts for 10 percent of your credit score, while payment history accounts for 35 percent. Therefore, you should only take out new loans if you feel confident that you can make on-time payments.
Additionally, you should avoid taking out too many loans in a short period, since multiple hard inquiries on your credit report can lower your credit score.
3. Lowers your credit utilization
Another factor that makes up a large percentage of your credit score is your credit utilization, or amounts owed. Accounting for 30 percent of your credit score, credit utilization is the percentage of revolving credit you’re using compared to your overall credit limit.
Taking out an installment loan to pay off revolving credit, such as your credit card bill, can help lower your credit utilization by reducing the balance on your credit cards. Referred to as debt consolidation, this involves combining your balances of revolving credit lines into an installment loan. As a result, you’ll only be making one payment monthly instead of multiple payments.
Should you take out an installment loan to improve your credit?
While installment loans can help your credit, taking out an installment loan solely for credit-building purposes is not recommended. In fact, an installment loan can have the opposite effect if not managed properly.
Here are some scenarios in which taking out an installment loan can hurt your credit:
You miss payments: While making on-time payments can help you build credit, your credit score will drop if you are late or miss payments, and you may be seen as a risky borrower when you apply for future credit products.
You receive multiple hard inquiries: Applying for a loan results in a hard inquiry, which can lower your credit score by a few points. Too many hard inquiries on your credit report can significantly lower your credit score.
You increase your debt: Additional debt will add to the “amounts owed” aspect of your credit score.
You should only take out an installment loan if you need the money to make a specific purchase and can afford to make payments on time.
Alternative ways to build credit
If you’ve decided that an installment loan isn’t the right option for you, consider these other ways to build credit:
Take out a credit-builder loan: An alternative to installment loans, credit-builder loans, are specifically designed to help borrowers build credit.
Apply for a secured credit card: If you need to establish a credit history, a secured credit card is a great way to easily get approved for credit since you have to put down collateral.
Make payments on time: Pay your existing bills on time to build a positive payment history.
Opt into a rent reporting service: While rent payments aren’t typically reported to the credit bureaus, you can use a rent reporting service to build credit through rent payments.
Learn more about building credit with Lexington Law Firm
While taking out an installment loan can help you build credit, if you don’t need the loan, consider exploring other options. There are less-risky ways to establish a credit history and improve your score.
However, before you start taking steps to help your credit, knowing where you’re at is important. Lexington Law Firm offers a free credit assessment, which includes your credit score, credit report summary and a credit repair recommendation. Try it for free today.
Note: The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
A full-time job isn’t always enough to achieve your financial goals. That’s why nearly 40% of U.S. adults have a side gig, according to a 2023 Bankrate survey. Making extra moneycan help you pay off debt, save to buy a house, or catch up on retirement savings.
Fortunately, there’s a wide range of side hustles and passive income streams that can help you tackle financial to-dos or even take your wealth to the next level, says financial blogger Kelan Kline. A side hustle is typically an additional job a person can take to earn extra money to supplement their primary income. On the other hand, passive income can be income that requires little or no effort to maintain.
Kline should know. When he and his wife Brittany were saddled with student loan debt, they launched The Savvy Couple—a blog focused on side hustles and money management tips—to help them earn extra income.
“It became a full-time business that allowed us to quit our 9-to-5 jobs in law enforcement and helped teach us to fast-track our financial freedom,” Kline says.
While most secondary gigs won’t turn into new careers, they can add a spark to your savings. So, what are some side hustle and passive income ideas that can help you make extra money? Read on to see which types of side hustles and passive income ideas can inspire you to accelerate your financial targets—and learn how your new income streams can work together to generate even more cash.
What is a side hustle?
A side hustle is any income-generating work outside of your primary job—anything from food delivery to selling items online. People use the extra income to improve their financial health, from building up savings to preparing for a big purchase.
What are some side hustle ideas?
“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for,” says Randa Kriss, small business specialist at NerdWallet.
We’ve collected some side hustle ideas you can try without too much previous experience to help you make extra dough—or even find a new job:
(All earnings information courtesy of ZipRecruiter🙂
Ride-sharing
Ride-hailing or ride-sharing apps make it easier for people to get around on demand, while creating a market for drivers and their cars. For many ride-share drivers, this is their primary source of income, but it can also be a convenient side hustle option.
“Driving for a ride-sharing service is a great way to make some extra money,” Kline says. “It allows you to be your own boss and set your own hours, which can be especially beneficial for people who have a flexible schedule or want to supplement their income.”
Approximate earnings: $13 an hour
Delivery driving
Don’t want to drive strangers around? Deliver food instead. Many delivery service apps need drivers to drop off grocery hauls and restaurant takeout.
“Delivery driving is a great way to earn some extra money on the side, while also having some time to decompress,” says Jacqueline DeMarco, a freelance writer specializing in personal finance content. “Driving can be stressful, but it’s a lot less stressful without passengers in the car. You can even listen to podcasts or audiobooks to make it feel like less of a chore.”
Approximate earnings: $18 an hour
Grocery shopping
Grocery delivery services also need people who can shop for items before they’re delivered. Once you sign up and choose a nearby supermarket, customer orders will pop up on your phone. Efficient shoppers who can quickly navigate local stores are making extra money by filling up shopping carts—and you could, too.
“Enjoy the free air conditioning while you fulfill grocery orders,” DeMarco says.
You can even take care of your own grocery needs once your customer orders are fulfilled. You may be less tempted to order expensive takeout if you’re already in a supermarket.
Approximate earnings: $16 an hour
Tour guide
If you love your area and have an engaging personality, become a local tour guide.
Being a tour guide can be a great way to meet new people and show them a city or neighborhood you’re passionate about—all while making extra money. You might need to pass a test to work for certain organizations, and many tours use a pay-what-you-like model so the income can be inconsistent. But it’s a side hustle with growth potential, DeMarco says.
“You can learn the ropes working for a tour guide company or app, then eventually take that knowledge and start your own tour guide business,” she says. “That way, you don’t have to share the profits.”
Approximate earnings: $19 an hour
Virtual assistant
Virtual assistants aren’t algorithms or chatbots—they’re real people. Virtual assistants can work from almost anywhere in the world as they perform digital tasks like scheduling, fielding emails, and even managing social media for companies or individuals.
“It’s an excellent option for people who have administrative and organizational skills, as well as the ability to work independently,” Kline says.
Approximate earnings: $24 an hour
Babysitting
If you’re trustworthy, responsible, and enjoy working with kids, babysitting is a great opportunity. And once you start establishing solid relationships with parents, it can evolve into a regular gig that provides a stable income. You can list your services on online platforms catering to babysitters.
When DeMarco was a babysitter, she also worked on freelance writing assignments while the kids slept, which helped her to maximize her side income opportunities. “If you love kids, it’s a fun way to earn extra cash,” she says.
Approximate earnings: $18 an hour
“To find a side hustle, you should think about your existing skills and interests to narrow down what kind of opportunity you’re looking for.”
Pet sitting
Are fur babies more your thing? Countless pet sitting opportunities exist—especially now that more people have returned to on-site work since the pandemic pet adoption boom. Multiple apps and sites allow you to list your pet sitting services. Just make sure you emphasize any experience you have as a pet sitter or a pet owner.
Approximate earnings: $16 an hour
House sitting
Many homeowners prefer to have someone stay over or regularly check in on their property (and also maybe look after their pets). House sitters not only get paid but often have full access to the home’s amenities, which might even include a pool or home theater.
“A lot of my babysitting clients would ask me to house sit or pet sit when they were out of town,” DeMarco says. “The best part about side hustles like this is you only have to say yes to a job when it works for your schedule.”
Approximate earnings: $17 an hour
Studies and focus groups
Research companies always need focus group participants. Whether they meet remotely or in person, these groups may give feedback on new products or provide insights that help organizations develop new services.
“Participating in focus groups and studies can be an interesting way to make extra money,” says Kline. “It is a great option for people who have flexible schedules, as it does require some time commitment and availability.”
Approximate earnings: $27 an hour
Translation work
Are you fluent in multiple languages? If so, you can put that skill to work. Translation duties can include working with marketing copy or medical and legal documents, so additional expertise may be necessary. And certain languages may offer more opportunities—and more money—than others, so research apps and online job boards to gauge the demand for your specific language skills.
Approximate earnings: $28 an hour
Graphic design
You can start a side hustle creating logos, visual assets for social media, or custom stickers for events or companies if you have the skills—or the willingness to learn. Creating designs for a friend or family member at a discount rate and posting them to your online portfolio is one way to gain experience and attract more—and higher-paying—clients.
“Graphic design can be a great side hustle for people who have an eye for design,” Kline says. “It is also a relatively easy and low-cost way to get started.”
Approximate earnings: $27 an hour
DIY for hire
Can you install a light fixture, assemble furniture, shovel snow, or paint a room? You can get paid for those tasks by signing up as a service provider on any freelance labor marketplace or app.
Approximate earnings: Varies depending on the job
Data entry
Data entry can be repetitive work, but the advantages extend beyond the ability to do it from home. Tasks can range from transcribing audio for a documentary filmmaker to inputting a company’s financial records on a spreadsheet. And the work is easy to find, as many job sites list part-time data entry roles.
“Data entry jobs typically require minimal training and can be done on a flexible schedule,” Kline says.
Approximate earnings: $19 an hour
Tutoring
Tutoring can be a flexible side hustle, too. You can work with students remotely or in person—from elementary school kids who need help after school to high school and college students who need weekend guidance to help them cram for exams.
“Tutoring can be a great way to make some extra money if you have the knowledge and skills,” Kline says. “It is also an excellent way to give back and help others.”
Approximate earnings: $20 an hour
Background acting
The people in the background of your favorite movies and TV shows actually get paid. And you don’t need to live in Los Angeles or New York City to find those roles. Production companies and university film students often post online ads for background acting opportunities across major U.S. cities. The time commitment will likely vary, but the extra money—and on-location craft service spreads—can make it worth your time.
“You can learn more about the film industry and meet interesting people,” DeMarco says.
Approximate earnings: $27 an hour
How can a side hustle complement a passive income strategy?
While side hustles and passive income ideas can both add income to your bottom line, they aren’t the same thing. So, what is passive income?
Unlike a job or side hustle, passive income does not require much, if any, additional effort. Examples include stock dividend payments, property rental income, and book or music royalties.1
Of course, no one will show up at your house and start handing you cash. Usually, a passive income stream will require some initial effort and an upfront cost to set up, but ideally, it requires minimal effort once the wheels are in motion. That initial effort or investment might mean that passive income streams won’t be as accessible as side hustles, at least not until a little later in life.
“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom,” Kline says. “For example, you could use the money from your side hustle to invest in stocks and bonds, which can generate dividend payments.” (Please consult your tax advisor with respect to information contained in this article and how it relates to you.)
Or you could use the money earned from a side hustle to eventually purchase a rental property, which can generate long-term passive income, Kline says.
“Ultimately, having both sources of income can help you achieve your financial goals faster,” he adds.
Most passive income streams could be considered a form of investment. But this includes much more than buying and selling stock in companies. Anything you purchase with the intent to make more money from could be considered an investment.
Consider these additional ideas for making extra money:
Dividend investing
“Dividend investing is a great way to earn passive income,” Kline says. “It involves purchasing stocks or bonds that pay out dividends, which could be a great source of income over time.”
You should do research or consult an investment professional to learn which companies offer the best mix of dividend payments versus risk. Most dividend-paying stocks pay out quarterly, though some may pay out more or less frequently. The amount paid will be a percentage of your holdings, likely in the low single digits.
Dividends can be a reliable source of income for retirement, and advocates of the Financial Independence, Retire Early (FIRE) strategy for early retirement often recommend investing in dividend-paying stocks.
“Having both a side hustle and passive income can be incredibly powerful when it comes to building financial freedom.”
Rental income
There are many different types of property you can buy in order to rent out, depending on what’s available in your area or what investments you’re willing to consider.
Consider these different types of rent-based passive income ideas:
Long-term home or apartment rental
Leasing out a home or apartment can be a reliable and significant source of passive income, but it’s also a very involved process. You’ll need to learn the rental regulations for your area and your obligations to your potential tenants. Unless you can afford to pay someone to manage the property, the upkeep may resemble a job of its own.
Short-term rentals
If you have a spare room or vacation property, you could list it on a short-term rental platform or app.
“It’s a relatively easy way to make money by renting out your unused space or investment property,” Kline says.
While this may not provide the same degree of reliable income as a long-term lease, it’s easier to get started. Plus, utilizing black-out dates means you still get to access your space when you want, while having the opportunity to make an income from it when you don’t.
Other rental spaces
A spare parking or storage space can also be a source of passive income, and several apps and services exist for listing them. Best of all, renting out a space you never use, like a garage spot, requires little effort to earn reliable passive income.
Rent out your car
You can even list your car on some auto rental apps to earn money. If you don’t mind the additional wear and tear on your car—or the idea of other folks driving it—this could be a good way to make your car work for you. Just be sure to check with your car insurance provider to see if you need to carry additional coverage before booking your first renter.
What can you do with your additional funds?
Wondering what to do with the extra cash you earn from implementing side hustle ideas and passive income ideas is a great problem to have. But what are your options? Sometimes, you’ll want to reinvest in a side hustle (like upgrading the ties in a car you use for ride-share driving) or in a passive income strategy (such as painting the walls of your rental property).
Often, you’ll need a safe place to store your money that will still give you a generous return so that it keeps growing until you know what to do with it. Here are some low-risk options that can deliver growth on your additional cash:
Savings accounts
Savings accounts can provide a safe place to put your extra cash as long as you’re depositing your funds at an FDIC-insured institution. The interest your deposits earn can also be a source of portfolio income, which can include interest, dividends, and capital gains on investments.
CDs
Choose your term, lock in your rate, and watch your CD grow
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A CD, or certificate of deposit, is similar to a standard savings account but with one key difference: CDs tend to have higher interest rates, which means they can also provide portfolio income. As a tradeoff, you’re expected to leave the money in the account for a specific amount of time, and there’s often a fee for early withdrawal. It helps to know how CDs work to get the most out of them.
Money market accounts
Money market accounts are similar to CDs in that they offer greater returns in exchange for restrictions. You won’t need to wait multiple years to withdraw your funds from a money market account, but there likely will be a limit on how often you can withdraw funds, and you might need to maintain a minimum required balance amount.
Retirement accounts
Certain jobs will offer retirement accounts, like 401(k) plans, as a benefit of employment. Whether you have a 401(k) plan or not, you can open up an individual retirement account, known as an IRA—either a traditional IRA or a Roth IRA. The primary difference has to do with when you pay taxes on the money in the account. For a traditional IRA, you pay taxes when you withdraw funds from the account. For a Roth IRA, you pay taxes on the money as it’s put into the account. For either, you may have to pay a fee if you withdraw your money before retirement. Always check with your plan provider for specific rules and fees related to early withdrawals.
There are even more choices to make. For example, you might consider an IRA CD in addition to an IRA Savings Account. IRA CDs function just like other CDs but are intended to build up funds for after you’ve finished working. It could be worth speaking with a retirement planning professional to establish a personal saving strategy.
How can you benefit from side hustles and passive income?
Both side hustles and passive income can add financial comfort and confidence.
Has this tour through passive income and side hustle ideas inspired you to pursue additional income streams to boost your finances? Whether you start a side business or just pick up some gigs via an app, extra income sources paired with passive income streams can be a game-changer for your financial health.
Looking to maximize your financial health? Try using a financial checklist to see how you’re tracking against your financial goals.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
1 The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates. For specific advice about your unique circumstances, you may wish to consult a qualified professional, at your expense.
Discover Bank does not sell non-deposit investment products (“NDIP”) or provide recommendations regarding NDIP. NDIP are NOT FDIC insured.
Providence is a city filled with history, beauty, and the arts. As the capital and largest city in Rhode Island, Providence draws people in with its blend of New England charm and laid-back, coastal lifestyle . If you’re considering moving to Providence, it’s important to weigh the unique aspects of the city that make it a great place to live, along with the challenges that might affect your decision. Let’s take a closer look at 13 of the most prominent pros and cons of living in Providence.
Providence at a glance
Walk Score: 76 | Bike Score: 61 | Transit Score: 47 Median Sale Price: $550,000 | Average Rent for 1-Bedroom Apartment: $2,075 Providence neighborhoods | Houses for rent in Providence | Apartments for rent in Providence | Homes for sale in Providence
1. Pro: Thriving arts scene
Providence has an active arts community. The Rhode Island School of Design (RISD) and its museum anchor much of the city’s artistic scene while cementing the city’s status as a solid Rhode Island college town. Events like WaterFire showcase local art and bring the community together.
2. Con: Lacking public transportation options
While Providence has a bus system, the Rhode Island Public Transit Authority (RIPTA), it doesn’t extend to all suburbs. The lack of a subway or robust commuter rail means you might find it challenging to navigate without a car. For those used to large cities with vast transit networks, Providence’s system may feel limited.
3. Pro: Stellar higher education scene
Providence is home to several prestigious universities, including Brown University and RISD. These institutions bring a youthful energy to the city and provide endless educational and professional opportunities.
4. Con: Higher cost of living compared to nearby areas
Providence can be expensive compared to other parts of Rhode Island. With median home sale prices above the national median of $428,096 and apartments above the national average, some newcomers might find it tough to balance city living with affordability. While it’s cheaper than what people living in New York or Boston will experience, Providence still has higher living costs than its smaller neighboring cities.
5. Pro: Beautiful historic architecture
Walking through Providence feels like stepping into a time capsule, especially in popular neighborhoods like College Hill. The city has preserved much of its 18th- and 19th-century architecture, offering a picturesque backdrop to everyday life. Living in Providence gives you the chance to admire these well-preserved buildings, often right outside your front door.
6. Con: Harsh winter weather
While not one of the coldest cities in the U.S., New England winters in Providence can be tough. Snowstorms and freezing temperatures are common, and city streets can get tricky to navigate. If you aren’t used to cold weather, adjusting to Providence’s winter conditions might be challenging, requiring extra preparation for snowy months.
7. Pro: Great food scene
Providence is known for its fantastic culinary reputation. The city has a wide range of dining experiences, from Italian cuisine in Federal Hill to fresh seafood straight from Narragansett Bay. With numerous acclaimed restaurants, like Hemenway’s, and a commitment to farm-to-table dining, Providence is a foodie’s paradise.
8. Con: Limited job market in certain industries
While Providence offers job opportunities in education, health care, and arts, other industries are less readily available. Tech and finance, for example, may not have the same growth as friends living in New York or Boston. Professionals in niche industries might need to commute or work remotely for better opportunities.
9. Pro: Close to larger cities
Living in Providence means you’re just an hour from friends living in Boston and about three hours from New York City. You get easy access to the excitement of these larger cities while avoiding the crowds and higher cost of living. It’s a great balance for those who want proximity to the highlights of the Northeast.
10. Con: Traffic can be a headache
While Providence isn’t as traffic-congested as larger cities, its highways can get clogged during peak hours. The mix of older infrastructure and the limited number of routes into and out of the city means even short commutes can be frustrating. Parking downtown can also be a challenge, particularly during events or rush hour.
11. Pro: Coastal lifestyle
Rhode Island’s beautiful coastline is a short drive from Providence, offering easy access to beaches, boating, and outdoor activities. Living in Providence allows you to enjoy city living with the added benefit of being close to nature.
12. Con: Minimal space for urban growth
Providence is an older city with limited space for expansion. As a result, new developments can feel cramped, and there’s little room for large-scale growth. This limitation can make finding newer housing or commercial space in the city proper more challenging.
13. Pro: Strong downtown and nightlife
Downtown Providence has seen a resurgence, with a variety of bars, restaurants, and entertainment options. Community events and festivals light up the city during the warmer months, offering unique experiences for locals.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Could logging in to your computer from a deluxe treehouse off the coast of Belize be the future of work? Maybe. For many, “freelance” means flexibility, meaningful tasks, and better work-life balance.
Who doesn’t want to create their own hours, love what they do, and work from wherever they want? Freelancing can provide all of that—but that freedom can quickly vanish if you don’t know how to manage finances as a freelancer.
“A lot of the time, you don’t know about these expenses until you are in the trenches,” says Alyssa Goulet, a freelance copywriter. “And that can wreak havoc on your financial situation.”
Some workers may choose to work in a freelance capacity hoping to increase their savings and their feelings of self-sufficiency. But for all its virtues, the cost of going freelance can carry some serious sticker shock.
Most people who freelance for the first time don’t realize that everything—from taxes to business software to retirement planning—is on them. Learning how to manage your finances as a freelancer early on will help set you up for success.
The key to budgeting as a freelancer is to plan for five expenses: taxes, business expenses such as your workspace and tools, health insurance, retirement savings, and general business costs.
1. Taxes for freelancers and the self-employed
First things first: Don’t try to be a hero. When determining how to budget and manage your taxes as a freelancer, you’ll want to consult a financial advisor or tax professional for guidance. A tax expert can help you determine what makes sense for your personal and professional situation and provide financial advice to help you build your freelance business.
For instance, just like regular employees, freelancers owe federal income taxes, as well as Social Security and Medicare taxes. When you’re employed by an organization, you and your employer each pay half of these taxes on your income, according to the IRS. But when you’re self-employed (earning more than $400 a year in net income), you’re expected to file and pay these taxes yourself, the IRS says. And if you think you’ll owe more than $1,000 in taxes for a given year, you may need to pay quarterly taxes.
That can feel like a heavy hit when you’re not used to planning for these costs. “If you’ve been on a salary, you don’t think about taxes really,” says Susan Lee, CFP®, a tax preparer and founder of a website that provides tax information for freelancers. “You think about the take-home pay. With freelance, everything is take-home pay.”
Estimating what you’ll owe
Once you determine how often you’ll need to file taxes, Lee recommends doing a “dummy return,” which is an estimation of your annual self-employment income and expenses. You can come up with this number by looking at past assignments, industry standards, and future projections for your work—which Goulet also finds valuable.
Then, use that number to refine your estimate. “I determine the tax bracket I’m most likely to fall into by taking my projected monthly income and multiplying it by 12,” Goulet says. “If I experience a big income jump because of a new contract, I redo that calculation.”
Budgeting for what you’ll owe
After you estimate your income, you can determine how much money to set aside for your tax payments. Lee recommends saving around 25% of your income to pay your income tax and a self-employment tax (which funds your Medicare and Social Security). Once you subtract your business expenses from your freelance income, however, you may not need to pay that entire amount, according to Lee.
Adjust your estimates often—and always round up. “Let’s say, in one month, a freelancer determines she would owe $1,400 in tax. I’d put away $1,500,” Goulet says.
2. Business expenses for freelancers: Get a handle on two big deductions
For freelancers, tax deductions can yield big savings—if you know where to look for them. From the mileage you log between appointments to supplies for your home office to fees for coworking spaces, many freelance business expenses may be deductible, according to Lee.
The costs of freelancing vary from person to person. Some freelancers are happy to work from their kitchen tables, while others require a sophisticated (read: expensive) setup. Your freelance expenses will also change as you add new tools to your business arsenal.
Here are two budget categories you’ll need to account for as a freelancer:
Renting or furnishing your workspace
Joining a coworking space can help you establish the camaraderie you might miss when working at home alone. Yet these workspaces may charge membership dues, ranging from $20 for a day pass to hundreds of dollars per month for a dedicated desk or private office—something to consider when you’re calculating the cost of freelancing.
Coworking spaces may be all the rage, but you can still rent a traditional office space for several hundred dollars a month or more. However, this fee usually doesn’t include networking events or other membership perks like food and drink.
If you want to avoid office rent or dues but don’t want the kitchen table to pull double duty as your workspace, you might convert another room in your home into an office. When planning a home office on a budget, all it takes is a little creativity and know-how to create a functional, productive workspace.
Amy Hardison, a freelance copywriter and content strategist, retrofitted part of her house into a simple office. “I got a standing desk, a keyboard, one of those adjustable stands for my computer, and a squishy mat to stand on so my feet don’t hurt,” Hardison says.
Start with the absolute necessities. When Hardison launched her freelance career, she purchased a laptop for $299 and worked out of a coworking space—using its office supplies before creating her own workspace at home.
Going digital: freelancing business tools
There are a range of digital tools, including business and accounting software, that can assist with the majority of your business functions. These digital tools for freelancers can save you valuable time, which you can then invest back into growing and marketing your business.
The right business software can also help you avoid financial lapses as you grapple with how to manage finances as a freelancer. Hardison’s freelance business had ramped up to a point where a manual process was costing her money, so using invoicing software became a no-brainer.
“I was sending people attached document invoices for a while and keeping track of them in a spreadsheet,” Hardison says. “And then I lost a few of them, and I just thought, ‘Oh, my God, I can’t be losing things. This is my income!’”
You might use digital business and software tools to help manage scheduling, web hosting, accounting, audio/video conferences, and other business operations. When you’re determining how to budget as a freelancer, remember that the costs for these services depend largely on your needs.
For instance, several invoicing platforms offer options for as low as $9 per month, though the cost increases the more clients you add to your account. Accounting services also scale up based on the features you want and how many clients you’re tracking, though you can find reputable platforms that cost as little as $5 per month.
If you sign up for a business or accounting software platform, start with the “freemium” version, where the first tier of service is always free, Hardison says. Once you have enough clients to warrant the expense, upgrade to the paid level with the lowest cost. Gradually adding services will keep your expenses proportionate to your income.
3. Health insurance for freelancers: Harness an inevitable cost
Saving for healthcare costs can be one of the biggest hurdles to self-employment and successfully learning how to manage finances as a freelancer. In 2024, the average monthly premium under the Affordable Care Act (ACA)—for those who do not receive discounts due to qualifying income—was $469 for a 40-year-old individual and $1,491 for families of four, according to Forbes.
“Buying insurance is really protecting against that catastrophic event that is not likely to happen. But if it does, it could throw everything else in your plan into a complete tailspin,” says Stephen Gunter, CFP®, a financial advisor at a wealth management firm.
Speak with an insurance advisor who can help you determine which plans are best for your health needs—and your budget. An advisor may be willing to offer a free consultation so you can gather important information before making a financial commitment.
4. Retirement savings for the self-employed: Learn to “set it and forget it”
Part of learning how to budget as a freelancer is thinking long-term, which includes estimating retirement expenses. That may seem daunting when you’re navigating new business expenses, but saving for retirement is a big part of budgeting when you’re self-employed, Gunter says.
“It’s kind of the miracle of compound interest,” Gunter says. “The sooner we can get it invested, the sooner we can get it saving.”
His freelance money management tip? Set aside whatever you would have contributed to an employer’s 401(k) plan and put it on autopilot. One way to do this might be to set up an automatic transfer from your primary checking account to your savings or retirement account.
“So, if you would have put in 3% [of your income] each month, commit to saving that 3% on your own,” Gunter says. The Discover® IRA Certificate of Deposit (IRA CD) could be a good fit for helping you enjoy guaranteed returns in retirement by contributing after-tax (Roth IRA CD) or pre-tax (Traditional IRA CD) dollars from your income now.
Prioritize retirement savings every month, not just when you feel flush. “Saying, ‘I’ll save whatever is left over’ isn’t a savings plan because whatever is left over at the end of the month is usually zero,” Gunter says.
5. General business expenses: Update your rates to cover them
With time, you’ll likely find that one of the best financial tips for freelancers is to build your costs into what you charge. “As I’ve discovered more business expenses, I definitely take those into account as I’m determining what my rates are,” Goulet says.
She notes that freelancers sometimes feel guilty for building business costs into their rates, especially when they’re worried about the fees they charge to begin with. But working these costs into your rates is essential to sustainable money management—and building a thriving freelance career.
Your expenses will change over time, so reevaluate the rates you charge annually. It’s also wise to do quarterly and yearly check-ins to assess your income and costs and see if there are any processes you can automate to save time and money.
Knowing how to manage finances as a freelancer is the key to a successful career
When you understand how to manage finances as a freelancer—effectively accounting for the costs of being self-employed—you can build the foundation of a long (and, with luck, lucrative) freelance career. From planning for taxes to saving for retirement, smart money management can provide you with much-needed financial stability and peace of mind if and when you decide to strike out on your own.
“There are many hats you have to wear and expenses you have to take on,” Goulet says. “But for that, you’re gaining a lot of opportunity and flexibility in your life.”
Working as a freelancer has its benefits, but it also means your pay can fluctuate from month to month. If you want to be even more prepared for freelance money management, then find out how to make a budget when you have an irregular income.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. Please consult your tax advisor with respect to information contained in this article and how it relates to you.
North Las Vegas is a sweet spot to settle down in Nevada thanks to its suburban convenience and proximity to Las Vegas. Whether you’re drawn to the growing economy or the surrounding scenery, there’s a lot to consider when choosing this city as your home. Let’s dive into 13 of the most prominent pros and cons of living in North Las Vegas to help you decide if it’s the place for you.
North Las Vegas at a glance
Walk Score: 34 | Bike Score: 48 | Transit Score: 38 Median Sale Price: $415,000 | Average Rent for 1-Bedroom Apartment: $1,351 Houses for rent in North Las Vegas | Apartments for rent in North Las Vegas | Homes for sale in North Las Vegas
1. Pro: Affordable housing options
North Las Vegas offers more affordable housing compared to many other areas in the Las Vegas Valley. With a growing number of new developments, homebuyers and renters can find a range of properties at competitive prices slightly below the national median of $428,096. Apartments in North Las Vegas follow a similar trend and go for $1,222 on average.
2. Con: Limited public transportation
While the affordability is a plus, public transportation options in North Las Vegas are more limited compared to other nearby areas. Most residents rely on cars for daily commuting, which could be an inconvenience for those who prefer public transportation options.
3. Pro: Proximity to Las Vegas
Living in North Las Vegas means you’re just a short drive from friends living in Las Vegas. This proximity allows residents to enjoy the entertainment, dining, and nightlife that make Las Vegas famous without living directly in the hustle and bustle of the city.
4. Con: Desert heat
While not one of the hottest cities in the U.S., the desert climate in North Las Vegas can be tough to adjust to, especially during the summer months when temperatures often exceed 100 degrees. This can lead to higher cooling costs and fewer outdoor activities during the hottest parts of the year.
5. Pro: Expanding job market
The job market in North Las Vegas is growing rapidly, thanks to new industrial parks and companies moving into the area. Employers in logistics, manufacturing, and technology have established a presence, providing more quality job opportunities for locals.
6. Con: Lackluster shopping and dining options
Although North Las Vegas is growing, it still has fewer shopping and dining options compared to nearby Las Vegas and Henderson. Residents often find themselves driving to other parts of the valley to access more diverse retail and restaurant choices.
7. Pro: Surrounded by natural beauty
North Las Vegas is close to stunning natural attractions like the Red Rock Canyon and Valley of Fire. These spots are ideal for hiking, rock climbing, and camping, providing plenty of outdoor activities to enjoy.
8. Con: Traffic congestion
With the city’s growth, North Las Vegas has seen increased traffic, especially during rush hour. Commuters heading to other parts of the Las Vegas Valley may face longer travel times, particularly on major roads like I-15.
9. Pro: Strong community growth
The population in North Las Vegas is steadily growing, which has encouraged a stronger sense of community and a rise in community-centered events. This has contributed to a more family-friendly atmosphere in the area, with more parks and family-focused amenities being developed.
10. Con: Distance from major hospitals
While North Las Vegas has healthcare facilities, it is farther from some of the region’s major hospitals and specialized medical centers. For more complex medical needs, residents may need to travel to central Las Vegas or Henderson.
11. Pro: Educational improvements
North Las Vegas has made strides in improving its educational system, with new schools and investment in existing institutions. This is great news for families moving to the area, especially those looking for more schooling options for their children.
12. Con: Lack of large entertainment venues
If you’re someone who enjoys frequent trips to theaters, art galleries, or museums, North Las Vegas may leave you wanting more. Locals who like large-scale events may need to travel to Las Vegas for a broader range of options.
13. Pro: Family-friendly parks and recreation
North Las Vegas has invested in building family-friendly parks and recreational facilities. Aliante Nature Discovery Park is one popular place with playgrounds, trails, and a lake, perfect for a full day of family fun.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
There’s a lot to consider when blending your life with your partner. Whether you’re moving in together or officially tying the knot, some of the most important decisions are around how—or if—to combine your finances.
One important topic: Should you open a joint savings account?
A joint savings account can be a great way to work together on your financial goals—but there’s a lot to know before making the leap. Read on to learn more about opening a joint savings account with your partner.
What is a joint bank account?
A joint bank account is shared by two or more individuals. It can be a joint savings account or a joint checking account.
Joint accounts function just like typical bank accounts. The primary difference is that both account holders (you and your partner) have full access to the account and have equal ownership of the funds.
If you’re considering a joint account, you might first want to learn more about what to consider before combining finances with your partner.
How does a joint savings account work?
With a shared savings account, both account holders have equal power over the account. That means you and your partner can both deposit and withdraw funds. And you’ll both be able to see all account activity.
With a joint account, there is no difference between the funds you or your partner contribute—they all go into one shared pool of funds. Both account holders can withdraw or spend from the pool, even if they weren’t the contributor.
Pros and cons of a joint savings account for couples
As with all financial decisions, there are potential pros and cons you’ll want to consider. One major advantage of joint accounts is that they may actually strengthen your relationship, according to a recent study, “Common Cents: Bank Account Structure and Couples’ Relationship Dynamics,” by Jenny Olson, Ph.D., an assistant professor of marketing at Indiana University.
“Couples with joint accounts were significantly better off than couples with separate accounts,” says Olson. “While relationship quality tends to decline over time, on average, we found that couples randomly assigned to merge their finances were buffered against that decline.”
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Benefits of a joint bank account
“A joint bank account is associated with greater financial goal alignment,” says Olson. “It promotes a more communal view of your marriage. You’re accessing the same pool of shared resources, so you need to work together when managing those resources. You tend to be more on the same page.”
Here are just a few other notable advantages of a joint account:
Convenience: One of the biggest perks of a joint account is having a shared pool of assets, which can streamline how you save and spend as a couple—no more worrying about paying each other back or keeping track of who contributes what.
Openness: With a shared account, you and your partner have a new window into the other’s financial situation and decision making. This transparency can help promote honest and open conversations about finances. “It facilitates communication and transparency, two benefits we know are good for marriage,” says Olson.
Helps you work on shared goals: A critical part of a relationship is sharing common goals, whether that’s traveling the world or saving for a house. No matter your objectives, a joint account can help you align your short- and long-term financial goals.
More savings: A shared account can help increase your saving power by combining your assets. And if you have an interest-bearing joint account, you can take advantage of the power of compound interest and earn even more over time, thanks to a typically higher balance.
Potential disadvantages of a joint bank account
While there are plenty of good reasons for opening a joint savings account, there are also potential pitfalls you’ll need to understand and consider:
Possibly too much transparency: When you open a joint savings account, you’ll sacrifice a level of financial privacy that you would have had with a solo savings account.
All contributions are subject to creditors: If your partner is having financial troubles, your contributions to the shared account could be used by creditors to pay off any debts.
A breakup could be even more messy: Ending a relationship can be complicated, but intertwined finances can make things even more messy. Remember that if you split, your partner might be entitled to their share of the balance in your joint account.
Money may be harder to track: Keeping track of the exact amount of money going in or out of a joint account can be tricky if more than one person is making transactions. Therefore, effective communication is vital to keep accurate tabs on your balance and to avoid issues with spending and tracking expenses.
Considering all the factors before pooling your assets into a joint savings account is essential. You need to assess and understand your and your partner’s financial situations, your shared goals, and the state of your relationship.
“We’re not saying a joint bank account is the only option or best option for all couples,” says Olson. “There are important nuances. There are going to be some situations where choosing an account structure warrants a conversation. Take a step back and talk to your partner about what will be best for you and your unique financial circumstances.”
Still weighing your options? Learn more about the pros and cons of opening a joint account.
FAQs about joint savings accounts for couples
Question: Are joint savings accounts insured by the Federal Deposit Insurance Corporation (FDIC)?
Answer: Yes, joint savings accounts are FDIC-insured bank accounts, if the bank is FDIC-insured. Each account holder is insured up to $250,000 per depositor, per account ownership category, which means you and your partner will be insured for a total of $500,000 per account category, assuming you maintain joint ownership of the account. (If a couple has joint ownership of, for example, a money market account and a CD at the same institution, each deposit type may be insured up to $500,000, per the FDIC, for total coverage of $1,000,000.)
Question: Can you open a joint savings account if you’re not married?
Answer: Yes, you can open a joint savings account regardless of your legal marital status. However, taxes on a joint account can get complicated for unmarried couples. Married couples can file together, but unmarried partners will need to file separately and might need to consult with a professional come tax time.
Question: Are joint savings accounts a good idea?
Answer: There’s no simple answer, but joint bank accounts have significant benefits. Check out the section below or speak with a financial advisor, if appropriate, to help determine whether a joint account is appropriate for your situation.
Question: Who owns the money in a joint account?
Answer: In most situations, all of the money in a shared account belongs to all account holders equally. In other words, if you have a joint savings account with your partner, you both own all its funds, regardless of your individual contributions.
Question: What happens to a joint account if one account holder dies?
Answer: Typically, the surviving account holder becomes the sole owner of all the funds in a joint account. This is called automatic rights of survivorship. Per the FDIC, the account holder will continue receiving FDIC coverage for joint ownership up to $500,000 until six months after the death, providing time to distribute the funds to other insured accounts as needed. After the six-month period, the surviving account holder will only be insured up to $250,000 for that account.
Ready to get started? Learn more about how to open an online savings account.
Is a joint savings account right for you?
When it comes to financial decisions, nothing is one size fits all. So how do you decide whether a joint bank account is the right move for you and your partner? Here are some signs a shared savings account may benefit both of you.
You live together and want to put money away for household expenses, like rent payments or home repairs.
You are saving for shared goals, like retirement, travel, or a child’s college fund.
You communicate openly and honestly about your spending and saving habits.
You understand each other’s financial background, and neither of you has unaddressed debts or other issues that might negatively affect a shared account.
You already have a joint checking account and are looking for more ways to organize your financial life.
How to open a joint savings account
The process of opening a joint savings account for couples is similar to opening a savings account on your own.
If you are opening a new account, you can either visit a branch or apply online. You and your partner will need to complete an application that includes personal information for both account owners.
If you want to add a co-owner to an existing account, you can fill out a joint owner authorization form and submit it by mail, fax, or through your online account.
Are you and your partner ready to start using a joint savings account? The Discover® Online Savings Account might be your perfect match, with a high annual percentage yield and no monthly fees or minimum deposit.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
This article is for informational purposes only and is not intended as a substitute for professional advice. For specific advice about your unique circumstances, you may wish to consult a qualified professional, at your expense.
Owning a home has long been part of the ‘Adulthood Dream’. It’s a major financial milestone that brings stability, equity, and pride of ownership. But as times change, the age-old debate about buying or renting continues to evolve. While renting is generally more flexible and may seem less risky, homeownership often offers financial and personal benefits that renters miss out on. So how do you choose? Let’s dive into the benefits of owning a home compared to renting to help you find the best fit for your lifestyle and goals.
Building Equity vs. Monthly Expenses
Homeownership
One of the biggest advantages of owning a home is building equity. Each mortgage payment brings you closer to owning a valuable asset that can increase in value over time. Home equity can act as a financial safety net, allowing homeowners to borrow against it for significant expenses or investments, such as education, renovations, or emergencies.
Renting
When you rent, your monthly payments contribute to your landlord’s equity, not your own. Renting can be seen as paying for temporary access to a property rather than investing in a long-term asset. However, renting may offer a lower upfront cost for people saving for a down payment or needing financial flexibility
Stability and Long-Term Planning
Homeownership
Homeowners typically experience more stability than renters. Once you’re settled in a home, you don’t have to worry about lease renewals, sudden rent hikes, or a landlord selling the property. Homeownership provides a sense of permanence and control over your living space, which is beneficial for long-term planning, especially for families with children or those looking to put down roots in a community.
Renting
Renting offers flexibility that homeownership does not. If you’re not ready to commit to a particular location or if your career requires you to relocate often, renting provides the freedom to move with minimal hassle. For people with short-term plans, renting is often the more convenient option.
Tax Advantages
Homeownership
Owning a home can come with significant tax benefits. For instance, homeowners can often deduct mortgage interest and property taxes from their federal income tax, which can result in substantial savings. Furthermore, when it’s time to sell, homeowners may also benefit from capital gains tax exemptions on profits made from the sale of a primary residence.
Renting
Renters generally don’t receive tax benefits on their rental payments. While some states offer renters’ credits, these are usually minimal compared to the tax breaks available to homeowners.
Cost Stability vs. Potential Increases
Homeownership
With a fixed-rate mortgage, homeowners can enjoy predictable monthly payments over the life of the loan. Property taxes and insurance costs may fluctuate, but owning a home provides more financial predictability than renting. Plus, as your mortgage balance decreases, you’re likely to end up with more available cash flow over time.
Renting
Renters may be vulnerable to rent increases as market conditions shift. Landlords can raise rent at the end of a lease term, sometimes making it difficult for tenants to stay in their preferred location or relocate to a more affordable property.
An Investment with Potential Returns
Homeownership
Over time, real estate has generally appreciated, and many homeowners build significant wealth through homeownership. Although real estate markets can fluctuate, many people consider their homes a long-term investment that will increase in value. In contrast to stocks or other investments, owning a home offers the dual benefit of a tangible asset and a place to live.
Renting
Renting does not contribute to your wealth in the same way that owning a home can. Although you avoid property maintenance and other homeowner-related expenses, rental payments do not offer any potential for financial return, and you don’t benefit from market appreciation like homeowners do.
Making the Decision: Ownership or Renting?
The choice between renting and owning ultimately depends on your unique goals, financial situation, and lifestyle. Homeownership can be incredibly rewarding if you’re looking for stability, a long-term investment, and a place to call your own. On the other hand, if you prioritize flexibility, lower upfront costs, and a more temporary housing option, renting might suit your lifestyle better.
Whether you choose to buy or rent, knowing the benefits of each option can empower you to make an informed decision that aligns with your financial health and personal aspirations. Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
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From charming southern hospitality, stunning beaches, and rich historical roots, South Carolina draws renters from all over. It’s home to bustling college towns, beautiful coastal escapes, and even thriving tech hubs. But is South Carolina a good palace to live? From palmetto-lined streets to legendary barbecue pits, South Carolina has quirks that both attract and challenge newcomers. Here, we explore ten pros and cons of living in South Carolina to help you get a feel for life in the Palmetto State.
Is South Carolina a good place to live?
Life in South Carolina is laid-back, yet provides scenic coastal living, historical architecture, and growing opportunities. Major cities like Charleston, Columbia, and Greenville have become economic hubs, attracting companies in industries ranging from healthcare to manufacturing and technology. Employers like Boeing, BMW, and Prisma Health are some of the state’s biggest, providing various career opportunities. The capital, Columbia, has a lively college-town vibe thanks to the University of South Carolina, while Charleston is a bustling port and an ever-expanding tech industry.
The state’s cultural scene shines with renowned events like Charleston’s Spoleto Festival USA, and Columbia’s SC State Fair, where the community comes together to celebrate. South Carolinians embrace the outdoors, enjoying everything from hiking through the lush landscapes of Congaree National Park to kayaking along scenic rivers. Beach lovers flock to Myrtle Beach and Hilton Head, while nature enthusiasts find solace in the state’s pristine forests and sprawling parks.
South Carolina overview
Population
5,118,425
Biggest cities in South Carolina
Charleston, Columbia, North Charleston
Average rent in Charleston
$1,468
Average rent in Columbia
$1,057
Average rent in North Charleston
$1,686
1. Pro: Beautiful beaches and mild winters
South Carolina’s coastline is a dream for beach lovers, with stunning sandy stretches like Myrtle Beach, Hilton Head, and Folly Beach. With winters that are mild compared to northern states, coastal life can be enjoyed almost year-round. Whether you prefer lounging on the beach, taking scenic oceanfront bike rides, or gathering with friends around beach bonfires, South Carolina’s beaches are an irresistible part of life here.
Local tip: Folly Beach locals say the best time to visit is in the fall when the crowds have thinned, and you can catch the magical sunsets without the summer rush.
2. Con: High humidity and hot summers
The flip side to those mild winters? Summers can be a real scorcher. With humidity often in the 90% range, the summer season here is long and intense, especially in cities like Columbia and Charleston. If you’re not used to high heat combined with high humidity, you may need some time to adjust.
3. Pro: Southern hospitality and friendly neighbors
Southern hospitality is alive and well in South Carolina, and it’s something newcomers notice right away. Whether you’re moving into an apartment in Charleston or renting a home in Greenville, expect friendly waves, porch chats, and genuine interest from your neighbors. The sense of community here makes it easy to settle in and feel welcomed, as locals take pride in making new residents feel at home.
Insider scoop: As an insider tip, if you want to connect with locals quickly, attend a neighborhood oyster roast or shrimp boil—these gatherings are a South Carolina staple.
4. Con: Limited public transit options
Public transportation isn’t as developed in South Carolina as in some other states, which means a car is a necessity for most people. Outside of Charleston and Columbia, public transit options are sparse. The reliance on driving can be a drawback, especially for those accustomed to using buses, trains, or metro systems.
5. Pro: Affordable cost of living
South Carolina is known for its affordable cost of living, making it an attractive choice for renters. Rent prices are generally reasonable, especially compared to other coastal states. In Columbia, the state’s capital, the average rent for a one-bedroom apartment is around $1,057, while in Greenville, a bustling city with a growing tech scene, it averages closer to $1,477. Charleston, with its historic charm and beach access, tends to be pricier, with one-bedroom rentals averaging around $1,468. Even so, compared to similarly popular cities along the East Coast, Charleston remains affordable.
6. Con: Higher utility bills
While rent and other expenses are generally low, utility costs in South Carolina can be surprisingly high. The hot and humid climate means air conditioning is a must during the warmer months, which can lead to higher energy bills. Some homes also rely on electric heat in the winter, adding to costs. For instance, utilities in Charleston are 20% more than the national average.
7. Pro: Renowned culinary scene, especially BBQ
South Carolina’s food scene is bursting with Southern charm, from mustard-based BBQ to shrimp and grits. Charleston is a foodie’s paradise with world-class restaurants and innovative chefs, while local BBQ joints across the state serve up signature flavors that locals swear by. If you’re a fan of seafood, low-country boils, and hearty Southern comfort food, you’ll feel right at home in the Palmetto State.
Insider scoop: For a true insider experience, head to the tiny town of Hemingway and try Scott’s Bar-B-Que, a legendary spot beloved by locals for its whole-hog, wood-smoked barbecue.
8. Con: Limited variety of international cuisine
While local cuisine is a strong suit, South Carolina may be limited in international food options compared to larger metropolitan areas. Outside of Charleston and Columbia, finding authentic international cuisine, like high-quality sushi or Mediterranean food, can be challenging. Foodies looking for a wide range of global eats may miss having extensive options nearby.
9. Pro: Rich history and cultural heritage
For history buffs, South Carolina is full of it. The state played a significant role in the American Revolution and the Civil War, and its historical legacy is preserved in sites like Fort Sumter and Charleston’s historic district. Living here offers endless opportunities to explore museums, cultural festivals, and historical landmarks, making it easy to stay connected with the state’s rich past.
Insider scoop: Try the candlelight walking tour in Charleston, where guides share hidden tales of Revolutionary battles, pirate lore, and local legends as you stroll cobblestone streets at dusk.
10. Con: Occasional hurricanes and tropical storms
Moving to South Carolina means being aware of the hurricane season, which typically runs from June to November. Coastal areas are particularly vulnerable, with Charleston and Hilton Head occasionally impacted by tropical storms and hurricanes. While precautions are standard, renters in coastal regions may face occasional evacuations and should consider flood insurance if they’re near low-lying areas.
Pros and cons of living in South Carolina: Overview