Thinking about spending your college years in Virginia? You’re making the right call. This state is home to some of the most beloved college towns in the country.
From tech majors to aspiring artists, there’s a place for all in Virginia. Whether you’re an undergrad on the hunt for your first apartment in Richmond or a career academic looking for the perfect house in Charlottesville, you’ll find what you’re looking for in Virginia.
Let’s take a closer look at Virginia’s top college towns and uncover what makes each one stand out. From campus life to strong community ties, you’ll see why Virginia is the place to be for your college journey and beyond.
Charlottesville is home to the University of Virginia, renowned for its business, law, and medicine programs. The McIntire School of Commerce offers a top-tier undergraduate business program, consistently ranked among the best in the nation. The UVA School of Law is one of the oldest and most prestigious law schools in the country. The School of Medicine is also highly respected, particularly for its research in cancer, cardiovascular, and neurosciences.
The bond between the university and Charlottesville is evident throughout the town. The Downtown Mall, one of the longest pedestrian malls in the country, is a favorite spot for students and locals alike. Local businesses often collaborate with the university, offering internships and job placements that provide students with valuable real-world experience.
Apartments near University of Virginia | Houses for rent near University of Virginia
Blacksburg is where you’ll find Virginia Tech, famous for its engineering and computer science programs. The College of Engineering is one of the largest in the country, with programs that include aerospace, civil, and electrical engineering. The Department of Computer Science is known for its cutting-edge research in artificial intelligence, cybersecurity, and data analytics. Students also flock to the School of Architecture, known for its innovative approaches and strong emphasis on practical experience.
Virginia Tech and Blacksburg share a deep connection that enhances the college experience. The Virginia Tech Corporate Research Center hosts over 180 research, technology, and support companies, offering internships and co-op opportunities. The Moss Arts Center, a sizable venue, hosts performances that enrich the community culture.
Apartments near Virginia Tech | Houses for rent near Virginia Tech
Williamsburg is home to the College of William & Mary, known for its excellent programs in history, law, and business. The history program is particularly strong, leveraging the town’s rich colonial heritage for immersive learning experiences. William & Mary Law School, the oldest law school in the United States, offers students a rigorous and prestigious education. The Raymond A. Mason School of Business is highly rated for its undergraduate and MBA programs, emphasizing leadership and ethical business practices.
The college’s relationship with Williamsburg is a rare mix of academia and history. Colonial Williamsburg, a living history museum, offers students opportunities for internships and volunteer work, providing a deeper understanding of American history. The annual An Occasion for the Arts festival, sponsored by the college, brings together artists, musicians, and performers.
Apartments near William & Mary | Houses for rent near William & Mary
James Madison University (JMU) is known for its strong business and health sciences programs. The College of Business is nationally recognized, with standout programs in finance, marketing, and management. The Department of Health Sciences offers popular programs in nursing, dietetics, and athletic training. Students are also drawn by the School of Media Arts and Design, which provides hands-on learning in digital media, journalism, and graphic design.
The relationship between JMU and Harrisonburg is solid. The Gilliam Center for Entrepreneurship supports local startups, offering students real-world business experience. The collaboration with Sentara RMH Medical Center provides health sciences students with clinical placements and research opportunities. Additionally, the annual Harrisonburg International Festival, supported by JMU, celebrates the town’s commitment to fostering the next generation of artists.
Apartments near James Madison University | Houses for rent near James Madison University
Virginia Commonwealth University (VCU) is known for its arts and health programs. The School of the Arts is one of the most esteemed in the nation, offering programs in visual and performing arts. The VCU Medical Center is a leading healthcare facility, providing top-notch education and training in medicine, nursing, and dentistry. The College of Humanities and Sciences also stands out for its diverse range of programs, from psychology to forensic science.
VCU and Richmond are deeply intertwined, especially in the arts and healthcare industries. The Institute for Contemporary Art at VCU is a vector for modern art, where students can showcase their work and even meet with renowned artists. The medical school’s partnerships with local hospitals and clinics offer students extensive clinical experience. Additionally, the annual French Film Festival, hosted by VCU, attracts filmmakers and enthusiasts from around the world.
Fairfax is home to George Mason University, known for its programs in public policy, economics, and computer science. The Schar School of Policy and Government offers top-ranked programs in public administration and international relations. The Department of Economics is noted for its research in experimental and behavioral economics. The Volgenau School of Engineering is highly respected, especially for its cybersecurity and data analytics programs.
George Mason University and Fairfax benefit from a synergistic relationship. The university’s proximity to Washington, D.C., provides students with internship and job opportunities in government agencies and nonprofits. The Center for the Arts on campus hosts performances and exhibitions. The Mason Enterprise Center supports local entrepreneurs, offering resources and mentorship to students and community members.
Apartments near George Mason University | Houses for rent near George Mason University
Old Dominion University is known for its engineering and maritime programs. The Batten College of Engineering and Technology has programs in mechanical, electrical, and civil engineering. The Strome College of Business is also popular, with strong programs in management, marketing, and finance. Students interested in marine science can take advantage of the unique opportunities provided by the university’s coastal location.
Old Dominion University and Norfolk have a strong connection, especially with the maritime industry. The university’s partnerships with local shipyards and maritime companies provide students with hands-on experience and job opportunities. The International Maritime, Port, and Logistics Institute offers specialized training and research opportunities in marine science and technology.
Apartments near Old Dominion University | Houses for rent near Old Dominion University
Lexington is home to Washington and Lee University, known for its strong law and business programs. The School of Law is excellent, offering a rigorous curriculum and extensive clinical training. The Williams School of Commerce, Economics, and Politics is renowned for its programs in accounting, business administration, and economics. Students appreciate the small class sizes and personalized attention from faculty.
The university and the town of Lexington enjoy a close-knit relationship. Local businesses frequently hire students for internships and part-time jobs, providing valuable work experience. The Shepherd Poverty Program connects students with community service opportunities, addressing local issues.
Apartments near Washington and Lee | Houses for rent near Washington and Lee
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 350,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Looking for the ultimate college towns in Oregon? You’ve hit the jackpot! Oregon is home to some of the best college towns in the country. From top-notch academic programs to tight-knit communities, there’s something special around every corner.
Whether you’re looking for an off-campus apartment in Portland or a forever home in Bend, we’ve got all the inside scoop on ten of the top college towns in Oregon to spend your undergrad years and beyond.
Eugene is home to the University of Oregon, known for its stellar journalism and business programs. Students rave about the School of Journalism and Communication, which offers hands-on experience and opportunities to work with professional media outlets. The Lundquist College of Business is another highlight, offering top-tier business education with specializations in sports business, entrepreneurship, and finance.
The University of Oregon has strong ties with Eugene. They partner with local businesses for internships and community projects, providing students with real-world experience. The school’s sports teams enjoy a strong partnership with Nike, headquartered not far away. The annual Eugene Marathon also sees heavy student involvement, showcasing the university’s commitment to community engagement.
Apartments near University of Oregon | Houses for rent near University of Oregon
Oregon State University is famous for its engineering and agriculture programs. The College of Engineering is one of the best in the nation, offering programs in mechanical, electrical, and civil engineering. The agriculture programs are also respected, focusing on sustainable practices and innovative research in crop science and animal husbandry.
Oregon State University collaborates closely with Corvallis. Many students work on community projects through the university’s extension service, which supports local farmers and businesses. The university’s research in renewable energy and sustainable agriculture often involves partnerships with local companies and farms. Additionally, the annual Da Vinci Days festival, celebrating science and technology, sees significant participation from students and faculty.
Apartments near Oregon State University | Houses for rent near Oregon State University
Portland State University is right in the heart of Portland. It’s known for its urban planning and environmental science programs. The College of Urban and Public Affairs is top-notch, preparing students to tackle complex urban issues. Environmental science students get hands-on experience with real-world projects, often collaborating with city agencies on sustainability initiatives.
Portland State has deep connections to Portland. Students often intern at local companies, nonprofits, and government agencies, gaining valuable professional experience. The university partners with the city on various sustainability initiatives, including the Portland Climate Action Plan, making a significant impact on urban development and environmental conservation.
Apartments near Portland State University | Houses for rent near Portland State University
Southern Oregon University is famous for its theater arts and creative writing programs. The Oregon Center for the Arts is a hotspot for theater students, offering state-of-the-art facilities and opportunities to perform in professional-level productions. Creative writing programs are also top-rated, attracting many aspiring writers with courses in fiction, poetry, and screenwriting.
Ashland and the university have a special bond. The Oregon Shakespeare Festival involves many students who gain practical experience in theater production and performance. Local businesses support student artists by providing venues and opportunities to showcase their work, creating an active arts community.
Apartments near Southern Oregon University | Houses for rent near Southern Oregon University
Bend is home to Oregon State University-Cascades, known for its outdoor recreation and tourism management programs. The natural surroundings make it perfect for these studies, with students learning about outdoor leadership, adventure sports, and sustainable tourism. The program’s focus on experiential learning ensures that students are well-prepared for careers in the growing Pacific Northwest outdoor industry.
The campus works closely with Bend’s outdoor industry. Students often intern at local recreation companies, gaining hands-on experience in guiding, event planning, and tourism management. The university’s partnerships with organizations like the Bend Park and Recreation District provide students with opportunities to lead community programs and outdoor events, fostering a strong connection between Bend and the university.
Apartments near Oregon State University-Cascades | Houses for rent near Oregon State University-Cascades
Linfield University excels in nursing and wine studies programs. The School of Nursing is highly respected, offering comprehensive training in patient care, healthcare management, and nursing research. Wine studies attract students interested in the region’s famous vineyards and winemaking, providing in-depth education on viticulture, enology, and wine business.
Linfield University has a strong presence in McMinnville. The nursing program partners with local hospitals and clinics, offering students hands-on clinical experience and opportunities to work with experienced healthcare professionals. Wine studies students often work with nearby vineyards and wineries, gaining practical skills in winemaking and vineyard management. The annual International Pinot Noir Celebration held in McMinnville sees significant involvement from Linfield students, enhancing their education and professional connections.
Apartments near Linfield University | Houses for rent near Linfield University
Willamette University is known for its law and business programs. The College of Law is well known, producing many successful lawyers and judges. The Atkinson Graduate School of Management offers excellent business education, with specializations in sustainability, entrepreneurship, and nonprofit management.
Willamette University and Salem are closely linked. Law students often intern at local courts, law firms, and government offices, gaining practical legal experience and networking opportunities. The business school partners with local companies and nonprofits for real-world projects, providing students with hands-on experience in managing and growing businesses. The annual Salem Art Fair & Festival, which involves many Willamette students, showcases the unbreakable ties between the university and the town.
Apartments near Willamette University | Houses for rent near Willamette University
Pacific University is noted for its health professions and optometry programs. The College of Health Professions offers top-tier healthcare education, preparing students for careers in physical therapy, occupational therapy, and healthcare administration. The College of Optometry is one of the best in the area, with advanced training in eye care and vision science.
Pacific University works with local health facilities, providing students with clinical experience in hospitals, clinics, and community health centers. Optometry students often intern at eye care centers around Forest Grove, gaining hands-on experience in diagnosing and treating vision problems. The university’s community partnership programs, including free health screenings and educational workshops, benefit both students and residents, fostering a strong sense of community.
Apartments near Pacific University | Houses for rent near Pacific University
George Fox University is known for its psychology and engineering programs. The psychology department is respected, for offering specializations in clinical, counseling, and experimental psychology. The College of Engineering provides excellent hands-on training in mechanical, civil, and electrical engineering.
George Fox University has strong ties with Newberg. Psychology students intern at local mental health clinics and schools, gaining practical experience in therapy and counseling. Engineering students often work on projects that benefit the community.
Apartments near George Fox University | Houses for rent near George Fox University
10. Klamath Falls – Oregon Institute of Technology
Oregon Institute of Technology excels in engineering and health sciences. The engineering programs are highly technical and industry-focused, offering specializations in renewable energy, civil engineering, and manufacturing technology. Health sciences students receive practical training in cutting-edge facilities, preparing them for careers in medical imaging, respiratory care, and dental hygiene.
The university partners with local industries for internships and job placements, ensuring that students gain relevant experience and professional connections. Health sciences students often work with Klamath Falls medical centers, providing patient care and participating in community health initiatives.
Apartments near Oregon Institute of Technology | Houses for rent near Oregon Institute of Technology
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 750,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Have you ever thought about how it would feel to live cheap?
I didn’t think about it before, but now I know.
When you live a cheap life, you have more money for what you actually want to spend it on, and you can put more money towards your future.
You can do so many things in life, but you should make sure you’re doing them on your own terms. If you want to live cheap, but still have a high quality of life, you’ll need to get out of your comfort zone and be willing to try new things.
A cheap life can also help you save money on your biggest expenses.
Plus you can learn how to live cheap but good and no one will know anything different. Except for you because you are watching your accounts grow with your money saving style.
It is way easier to learn how to live cheaply! The hardest part is saying no to all the temptations.
Living cheap does not mean you deprive yourself or never have fun. In fact, it is quite the opposite!
Let’s dig in and you can enjoy the benefits of how to live cheap and save money.
Why Live Cheap?
In the past, living cheaply meant sacrificing a lot of things in life. However, that’s not always true anymore. There are many ways to live cheaply and still have a great quality of life without compromising your happiness or finances.
One main reason to live cheaply is that it will save you money.
Another reason for living cheap is because of the environmental impact of having a large carbon footprint, which can cost a lot more in the long run.
You might be interested in living cheap if:
– You want to save money on expenses
– You’re struggling to make ends meet
– Your family is spending more than they earn
– You want to have a positive impact on the world
Living cheap is oftentimes associated with simple living. While simple living has a better flair and acceptance, both mean you are willing to live on less and spend less money.
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How to Live Cheap
It’s possible to live cheaply, but the effort involved is significant especially when you are trying to change spending habits and ways of living.
There are big life changes you can make or tiny money saving habits you can do.
What are some ways to live cheap?
There are many ways to live cheaply! Some tips include not eating out, cooking at home, choosing entertainment wisely, and finding free activities. You just have to decide what works for you.
Learn about the frugal home must haves.
The most important step is, to be honest, and creative about what you can do and what you can’t do.
Here are the big things you can do to live cheap:
#1 – Spend Way Less
Many of us can’t afford how society wants us to live. Or maybe you can, but you have no desire to be materialistic.
You prefer the simplest way to create a new life that still allows us to work and care for our family.
Living cheap is not about living poorly. It is about spending way less than your income. Thus, you are saving the difference.
You have a heightened awareness of what your expenses are and you know where your money is spent. Now, you are mastering how to spend money wisely.
You know that living below your means is the path of how to live cheaply.
Budgeting is a way of life in order to keep your expenses at a minimum.
The thought of splurging every single day is gone and when you spend money, you invest in something that will last.
#2 – Focus Long Term
Focusing long term is the process of thinking about the consequences of your actions for a period of time before you take any action. This can be hard to do, especially when it involves emotionally charged topics.
Everyone knows that money is an emotional topic.
For example, debt is expensive. It is not just the money you borrow and repay, but also the interest fees and penalties that accumulate over time. If you want to live cheap, one of the best ways to do it is by paying off your debt as quickly as possible so that no more monthly payments go out the door.
Instead, start with a savings account where you deposit all of your extra cash each month (and ideally add some every week). This will be used for emergency purposes like car repairs, doctor visits, and so on.
Always stay focused on your current money goal as well as your long term financial vision.
#3 – Housing Expenses
Given that housing accounts for 25-35% of your income, this is the biggest place to start.
This is a great way to huge amounts of money each month.
1. Rent a room
Rent a room is an act of renting an apartment or other living space from another person. Renting rooms for a living can be seen as a service that enables people to live close to their work. Renting a room usually involves sharing living space with one or more other people.
2. Live in an RV or Van
Living in an RV or van is a question that many people have been asking themselves, and the answer to this question varies from person to person.
The most common response would be that it depends on the person. Some people love camping and would love to live in an RV for a few months before going back to their house. Other people enjoy living in a van as they are able to go to work and school without having to worry about commuting.
3. Own a Duplex
In a duplex, there is one unit of living space that shares a wall with another unit.
The concept is house hacking by living in one unit of a duplex and renting out the other units and getting money from one side of the building. Thus, making your mortgage nothing or even making money.
4. Buy a Fixer-Upper
A fixer-upper is a house with major problems, which the buyer fixes up and then sells. You can also live in the property while doing the renovations and lowering your housing expenses.
When it comes to buying a fixer-upper, there are always risks and rewards. There is always the possibility that you could end up with an expensive disaster on your hands or find yourself living in paradise for less than the market rate.
5. Rent an Efficiency Apartment
The monthly rent for an efficient apartment is usually lower than a studio.
Efficiency apartments are like studios in that they have only one room and the bathroom is separate from living quarters, but unlike studios which contain two to three rooms, efficiency apartments do not feature any additional space.
By renting an efficient apartment, it offers limited space and utilities, but at a low price.
What are free housing options?
Free housing options are available to people who are homeless, low-income, or living in shelters. These types of housing options include government-funded apartments that are given to the homeless and single-room occupancy hotels.
Other options for free housing include living in a friend or family member’s home. You are living without paying rent.
Also, you can net yourself a free room by doing a little work as well.
Where can you find the cheapest housing?
Finding the best place to live is a difficult task, but it can be made easier with some knowledge of where to find the cheapest housing.
There are many factors that go into finding affordable housing, such as the cost of living, quality of schools, and commute time.
The best place to find the cheapest housing is by looking for listings in your area. There are many websites that offer up-to-date listings of homes for sale or apartments.
70 Ways to Live Cheap
In today’s economy, it is hard to live on a budget. However, there are ways to make your life easier by living cheaply.
Whether we’re saving money or just living debt free, we all struggle with these life decisions. Most of the time it’s better to be frugal than indulge all of our wants and needs.
Frugal living can be difficult, but it’s better for you in the long run.
Here are many tips to live cheaper yet fuller lives.
Money Spending Habits:
Budget your money: Budgeting your money is a process of making decisions on how you will spend your income so that you can have enough for necessities and not exceed your budget. This is a great way to reach a goal.
Cancel bills you can’t pay: The best way to cancel bills you can’t pay is to contact your creditors and ask for a cancellation. If that doesn’t work, you’ll have to explain why the bill was not paid. If you have a lot of bills, consider filing for bankruptcy.
Switch Banks: You should not pay for banking. Period. If you do, it is time to switch. Credit unions are great options.
Insurance bundles: Insurance bundles are a type of insurance that is usually offered by an insurer and includes a number of different types of coverage. Bundles typically include home, auto, life and disability insurance as well as rider policies for loss of income and medical expenses.
Switch banks to one with high APY: If you do not invest in an account with high interest, then you are losing money by not investing. A bank’s APY is the annual percentage yield it pays on deposits. Here is a great online banking option.
Increase income: Increasing one’s income is a way to increase the amount of money one can earn. This can be done in a variety of ways, such as by finding a new job or starting their own business.
Cut your bills: The average person spends around $150 a month on various bills, such as electricity and gas. By cutting your bills where you can, you’ll be able to save a lot of money each month.
Earn cash back on purchases: Earn cash back on purchases is the opportunity to earn money for items you already buy. It can be done through a credit card, debit card, or other means.
Make money on things you own: Sell items you no longer need on eBay, craigslist, and other classified sites instead of throwing them away
Avoid unnecessary spending: When you’re out and about, do your best to avoid places that sell items you don’t need.
Don’t buy things on credit: If you don’t have the money, don’t buy it! That way you won’t be stuck paying more than what an item is worth.
Save your spare change: If you take your spare change and divide it into jars, you’ll be surprised how much money can accumulate.
Automate your budget: Knowing what you have to spend will help keep your shopping in check and prevent impulse buying.
Avoid fees from simple transactions: Credit cards, debit cards, and electronic check transactions have fees associated with them that users need to be aware of in order to avoid being charged for a transaction that they did not intend to pay.
Shopping Habits
Stay out of stores: Don’t go the mall. Changing this simple habit can be a huge savings on a budget and improve quality of life. Find thrifty alternatives to cramming your whole life into a big container, from food to avoiding the mall.
Have a no-spend weekend: A no-spend weekend is a time when people often give up spending and try to save money. Many people use this as a way to get back on track financially by trying to cut back on their spending. Get your no spend printables.
Write down what you want to buy: When you’re tempted by a purchase, take five minutes and write down what you want from the item. Do this for at least three days until your desire is gone.
Buy only used items: Buying used items is a great way to lower the cost of your purchase. The downside, however, is that you might not be able to find exactly what you are looking for.
Skip paying the full price: Many people do not want to pay the full price for a product or service. However, as most companies now provide discounts and promotions, consumers are finding themselves paying less for their services.
Be wary of subscriptions: There are a lot of different types of subscriptions that can be found online. Many people today subscribe to the idea that they need some type of subscription in order to access content on any given website. There are many subscription services that make it seem like you’re not actually paying for content, but rather making a one-time payment to receive all the benefits. Review your subscriptions to make sure you benefit from them.
Trim unused subscriptions: Unused subscriptions are subscriptions that have been set to expire in the next 30 days. They can be canceled by clicking on “cancel subscription” and then deleting the unwanted subscriptions from your account.
Get cashback on everyday products: Online shopping is a great way to get cashback on everyday products. You can search for the best deals by using comparison websites, which will help you find the cheapest price. Personally, I use this one.
Free Stuff: Take advantage of free events and activities in your area. Here is a list of 101+ things to do with no money.
Use the Library: For things like magazines or books, look at the library instead of buying them new.
Buy clothes during the off season: Buying clothes during the off season is a time when deals can be found everywhere. If you want to know what’s inside the trend, now is not the time to buy those clothes. Department stores also offer discounts on winter clothing. Shop at stores with racks, not shelves.
Shop thrift stores: Visit thrift stores and garage sales to find items you want or maybe even flip for a profit. Want to learn more about flea market flipping?
Try to reduce waste: Consider what can be done to reduce waste when purchasing items you need in your house.
Around the House
Adjust the temperature: Turning down the temperature is a key part of many different energy saving strategies. Reducing air conditioning or heating can help people save money, but it also has health benefits. Turn down the heat or air conditioning in your home at night and turn it back up during the day.
Cut back cell phone plan: The best wireless provider for you may be to cut back your cell phone plan. Cutting down on the number of minutes or texts could save you money, but this decision should be made with careful consideration.
Make clothes last longer: The best way to make clothes last longer is to not wear them too often. Washing garments made from natural fibers will help preserve them, while colors can be faded or bleached out with the addition of vinegar. This is a great powder detergent to have your clothes last.
Shop for clothing on clearance: Shopping for a style that best fits within a budget is possible. You can save lots of money by shopping off season.
Eliminate cable or satellite television: People can find shows on the internet instead of overpriced services, so the only monthly payment is something to get broadband internet.
Switch cell phones: It’s important to keep in mind that switching cell phone providers are a big decision. While there are many cheaper alternatives, they may not have the cell service where you need it.
Look into your energy usage: By adjusting your thermostat a few degrees, you could save hundreds and then invest in a comfy sweatshirt.
Limit trips to the Salon: Cut your own hair at home, or get it trimmed. You can also grow out your natural hair color.
Turn off unused lights: Of course, turning off lighting when leaving a room always happens.
Buy in Bulk: Buy things like toilet paper, toothpaste, cleaning supplies for yourself rather than in bulk.
Save money on laundry: All you have to do is wash your clothes at night and hang them up, so it’s ready in the morning when you go to school or work for a whole week! Find more tips on how to save money on laundry.
Transportation
Sell any cars you own: Benefits of selling your own car include not having to worry about finding parking, saving on gas or maintenance, and not having to worry about getting a ride to work.
Use a bike: Biking is a great way to get in shape, exercise, and save money. The best bike for you depends on how much time you have to practice and what kind of riding experience you want.
Carpool: Car pooling is a way for people to share the responsibility of driving each day, or from one destination to another. This can be done by carpooling with others who live near you, or by finding drivers for ridesharing. Plus you save money on gas and maintenance.
Public transportation: Public transport modes include buses, trolleys, trains (rail), metro (subway), trams, ferries, and others. This is cost-effective option.
Food / Grocery Ideas
Grocery Shop Less Often: In order to save on spending, grocery shop less often. Most people rely on big grocery stores with extended selections for their meals, but it’s easy to find out what you need or make what you need.
Meal plan based on cheap ingredients: Being on a budget is never easy, but it can be manageable. In order to make the best use of your time and money, create a meal plan based on cheap ingredients that you have in your pantry and fridge.
Always use a shopping list: To create a shopping list, start by making a list of the items you need. Online grocery shopping has made this process simpler.
Avoid convenience foods: Convenience foods are typically less expensive and easier to make, but they lack nutrients and often have a high amount of sugar. They can cause weight gain, cravings for more food, and even mood swings. Save your money and your health.
Eat at home: Eating at home is cheaper than eating out. Period.
Make your own coffee: Make your own coffee, saving money on your morning fix. Set yourself up with a nifty electric French press or better yet use a reusable cone to brew grounds that won’t ever taste gross.
Make as many of your dinners as possible at home: Eating at home also eliminates the need for two trips out, one to buy food and one to clean up. On average, most people who cook for themselves do so twenty minutes each day.
Maybe use a meal delivery service: Most of the time, the factor that makes eating healthy impossible for some people is the overwhelm in the kitchen. Fortunately, there are many online food delivery services to get fed with fresh produce on your plate. Studies show that people are eating fresh, organic items more often now with the help of these wonderful services. Check out the best meal delivery services.
Buy produce from large supermarkets, not from stand-alone farmers markets.
Eat Out Smart: Find more affordable locally owned restaurants, but be aware of the cost. Look for weekly specials or happy hours.
Use your own coffee mug: Then, you can get a discount on hot drinks at places like Starbucks or Peet’s Coffee & Tea.
Pack lunch for work or school: Instead of buying lunch on-the-go, pack a lunch and save lots of money.
Shop Grocery Ads: Plan ahead for what you need to buy by checking the weekly ads before shopping. Look for the loss leaders to bring you into the stores.
Slashing grocery bills: Slashing grocery bills is a term used to describe the process of reducing food costs by shopping at discount stores. The most common ways to slash grocery bills are buying in bulk, switching from expensive “brand-name” items to generic brands, and buying food on sale.
Figure out Food Habits: You must first determine where you are spending the most money on food. Many people spend a majority of their money on unhealthy processed foods, such as boxed cereal or frozen pizzas. To slash your grocery bill, you must cut back on these items and buy more healthy food.
Cutting coupons: Coupons are an important tool for saving money. Cutting coupons can be tough, but it is possible to save the most money by cutting out ads and extra fees that come with regular purchases.
Buy Store Brands: A store brand is a product that is produced and sold under the same name as a popular brand, but by a different company. Stores that offer their own brands of products include Costco, Wal-Mart, and Kroger.
Don’t Shop Hungry: Shopping while hungry can be a recipe for disaster. That’s why it’s important to remember that you should never shop hungry. Remember not to buy anything that is going to last more than a few hours.
In-Store Grocery Apps: In-store grocery apps are digital tools that help people to find the best prices, buy groceries at their local store, and discover new recipes. In-store grocery apps can be used on smartphones, tablets, and computers.
Eat Meatless Meals: If you want to take a break from meat, try eating more vegetarian meals. Meatless meals are often higher in fiber and protein than their meat-containing counterparts. You’ll also save money and help the environment.
Don’t eat out: It’s hardly surprising to hear that eating out is going to cost a ton more than if you simply made your meals at home.
Use cash back apps: Cash back apps are an easy way to earn cash for purchases. They often offer coupons, discounts, and other promotional codes that can be redeemed on selected products or services. Check out these five best cash back apps.
Use Ibotta every time you shop: Ibotta is a mobile app that rewards users with cash for shopping. Users earn money by scanning barcodes and completing tasks such as taking surveys, watching videos, or answering trivia questions.
Stop buying K-Cups: In recent years, K-Cups have been a popular way to brew coffee for many people. However, the problem with these pods is that they are actually quite expensive and environmentally unfriendly. The cost of a K-Cup is roughly three to five cents, whereas the average coffee shop brews a cup for two or three dollars. Additionally, many people are concerned about the waste that comes with K-Cups. Coffee pods are typically made of plastic, which cannot be recycled and is often littered on the ground for people to pick up. As a result, here is a reusable alternative that is cost effective and environmentally friendly way to drink coffee.
How to Live Simply and Cheaply
A budget can help you live a simple and cheap life. It allows for the spending of money on what is necessary to keep your quality of life up at all times.
It’s important not to spend too much time thinking about how you’re going to pay for things because that will only lead to stress, which leads to bad financial habits like overspending or taking out loans when they don’t need them.
The best way to live cheaply is by not spending on luxuries or buying too many things.
Instead, focus on big purchases. For example, buying a car can be expensive but it will make your life easier as you won’t have to rely on public transportation or worry about traffic jams.
Most people, do not want to go to the extreme of how to live super cheap.
But, that is completely up to you and what you want to do with your life.
You can choose your lifestyle.
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Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
NEW YORK (AP) — Mortgage rates, credit card rates, auto loan rates, and business loans with variable rates will all likely maintain their highs, with consequences for consumer spending, after the Federal Reserve indicated Wednesday that it doesn’t plan to cut interest rates until it has “greater confidence” that price increases at the consumer level are slowing to its 2% target.
The central bank kept its key rate at a two-decade high of roughly 5.3%, where it has been since last August.
Here’s what to know:
WHAT DOES THIS MEAN FOR BORROWERS?
Credit card rates are at or near all-time peaks, and mortgage rates have more than doubled in recent years.
According to LendingTree, the average credit card interest rate in America today is 24.66%, unchanged from last month, though that rate has risen for 24 of the last 26 months.
“That isn’t likely to fall anytime soon, despite the Fed taking its foot off the gas,” said LendingTree Credit Analyst Matt Schultz. “That’s likely the unfortunate reality for the next several months.”
In the battle against credit card debt, 0% balance transfer cards “are still your best weapon,” according to Schultz, but “they’re getting harder to get and their fees are rising.”
With delinquencies and debt totals also increasing for consumers, some banks are becoming more hesitant about taking on transferred balances, he said, meaning consumers will need good credit to get approval.
WHAT’S IN STORE FOR SAVERS?
Yields on savings accounts and certificates of deposit (CDs) have been hovering at high levels, thanks to the Fed’s increased interest rates, according to Ken Tumin, banking expert and founder of DepositAccounts.com. That said, “several banks have been lowering deposit rates (with the) expectation that the Fed will start cutting rates at some point this year.”
Certificate of deposit rates have been the first to fall, and a few online banks have also started lowering online savings account rates. Ally Bank dropped its rate to 4.25% from 4.35% and Discover to 4.25% from 4.30%.
Even so, most online banks held their online savings account rates steady in 2024, and several online banks still offer yields of 5.25%. The highest online yield is currently 5.55%, with the average online 1-year CD yield 4.94% as of April 1st, according to DepositAccounts.com.
Tumin notes that “brick-and-mortar bank deposit rates continue to be slow in their movement higher,” saying that while their average rates have gone up sharply in the last year, “they are still very low compared to online rates.”
The average savings account yield for all banks and credit unions, of which the vast majority are brick-and-mortar, is 0.52% as of April 24th.
WHAT ABOUT MORTGAGES?
The Fed doesn’t directly set mortgage rates, but it does influence them. The bond market, inflation, and other factors all contribute to the high mortgage rates currently facing consumers.
The average rate on a 30-year, fixed-rate mortgage recently rose to above 7% for the first time since November. LendingTree Senior Economist Jacob Channel notes that mortgage rates can shift even as the Fed holds its benchmark rate steady, and that consumers should consider many economic data points before deciding to take on a mortgage.
“Even in the face of relatively steep mortgage rates and high prices, now could still be a good time to buy a home,” he said. “Timing the market is virtually impossible… In that same vein, there are a lot of people who won’t be able to buy until the market becomes cheaper.”
High shelter and rent costs have contributed to steep inflation in recent months.
A Bankrate study found that renting is cheaper than buying a typical home in all 50 of the largest U.S. metro areas. As of February, the typical monthly mortgage payment on a median-priced home in the U.S. was $2,703, while the typical national monthly rent was $1,979. That’s a nearly 37% gap between the costs of renting and buying a home.
“While it would be nice if the Fed could fix everything on its own, it probably can’t, at least not without causing a great deal of weeping and gnashing of teeth,” said Channel.
I NEED TO BUY A CAR. WHAT’S THE OUTLOOK FOR AUTO LOANS?
While vehicle prices have steadied through late 2023 and early 2024, Bankrate Chief Financial Analyst Greg McBride predicts that high interest rates on auto loans will linger for those with weak credit profiles. Borrowers with stronger credit may see more competitive rates, but the Fed’s decision will continue to make auto loans expensive, even if vehicle prices decline. The average car loan hasn’t been this pricey since 2008.
McBride predicts five-year new car loan rates will reach an average of 7.0% and four-year used car loans, 7.5% by the end of 2024.
In the past year, borrowers have f aced especially expensive monthly payments due to high interest rates, and auto loan delinquency reached its highest rate in nearly thirty years. The average monthly car loan payment was $738 for new vehicles and $532 for used ones in the fourth quarter of 2023, according to credit reporting agency Experian.
New vehicles cost an average of $47,218 in March 2024, according to Kelley Blue Book, a price that, combined with high interest rates, pushes many buyers out of the market for new cars.
IS THE FED MAKING PROGRESS ON SLOWING INFLATION?
Not as quickly as it would like.
Several recent reports on prices and economic growth have undercut the Fed’s belief that inflation was steadily easing.
“Inflation has shown a lack of further progress toward our 2% objective,” said Chair Jerome Powell.
While inflation has cooled from a peak of 7.1% to 2.7%, average prices remain well above pre-pandemic levels, and the costs of services continue to grow — including for rents, health care, restaurant meals, and auto insurance.
___
“The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.”
Looking for the best college towns in California? You’ve come to the right place. California has some of the finest college towns in the country.
Whether you’re searching for an off-campus apartment in Berkeley or a secluded home in Santa Cruz, we’ve got the info you need on the best spots to enjoy your college time and the years that follow.
Let’s dive into nine of California’s top college towns and find the one that’s right for you.
UC Berkeley is famous for its strong engineering and computer science programs. Many students also flock to Berkeley for its political science and business programs as well. Both are known for their rigorous curriculum and world-class faculty.
Berkeley and the university work hand-in-hand. The town provides internship and research opportunities, particularly in tech and politics. The Berkeley Startup Cluster supports student entrepreneurs, while partnerships with Lawrence Berkeley National Laboratory offer coveted research opportunities.
Apartments near UC Berkeley | Houses for rent near UC Berkeley
Stanford University excels in computer science, engineering, and business. The school’s medical and law schools are also highly respected and competitive. Stanford is renowned for its humanities programs as well, particularly literature and philosophy.
Stanford and Palo Alto have a close relationship. Many startups and tech giants in Silicon Valley partner with Stanford, providing students with sought-after internships and job opportunities. The local hospitals and clinics also collaborate with the university, benefiting medical students. The Stanford Research Park hosts a handful of companies that work closely with students on projects and research.
Apartments near Stanford University | Houses for rent near Stanford University
Cal Poly San Luis Obispo is known for its engineering and architecture programs. These majors consistently rank among the best in the country. Students also flock to Cal Poly for its agriculture and business programs, both known for their practical approach and strong industry connections. The university’s emphasis on “learn by doing” attracts students eager for hands-on experience.
San Luis Obispo and Cal Poly have a very close relationship. Agricultural students benefit from partnerships with local farms and wineries, providing real-world experience. The San Luis Obispo Chamber of Commerce works with Cal Poly to connect students with local businesses, enhancing their professional development opportunities.
Apartments near Cal Poly | Houses for rent near Cal Poly
UC San Diego is a leader in the fields of biology and oceanography. The university’s engineering and computer science programs are also highly rated. Many students come to UCSD for its innovative and research-oriented environment.
San Diego and UCSD have a symbiotic relationship. The city’s biotech industry collaborates closely with the university, providing students with valuable internships. Local marine institutes work with the oceanography department, offering hands-on research opportunities. The San Diego Supercomputer Center at UCSD partners with various industries for advanced research projects.
Apartments near UC San Diego | Houses for rent near UC San Diego
UC Santa Barbara is famous for its physics and marine biology programs. The university also offers strong programs in environmental science and engineering.
Santa Barbara and UCSB are tightly linked. The local marine research centers collaborate with the university’s marine biology program. Environmental science students benefit from partnerships with nearby environmental organizations, providing the type of practical experience that’s needed to fill out a resume.
Apartments near UC Santa Barbara | Houses for rent near UC Santa Barbara
UC Davis has great veterinary and agricultural programs. The university also excels in environmental science and engineering. Many students choose UC Davis for its focus on sustainability and research. The school also has strong programs in food science and plant biology.
Davis and the university have a strong connection. The town’s agricultural prowess provides internships and job opportunities for students. Veterinary students benefit from the nearby animal hospitals and clinics, gaining practical experience. The UC Davis Arboretum collaborates with the city on urban forestry and sustainability projects.
Apartments near UC Davis | Houses for rent near UC Davis
UC Irvine is known for its strong computer science and engineering programs. The university also has a respected business school. Many students are attracted to UCI for its emphasis on research and innovation. The university’s programs in public health and law are also highly respected.
Irvine and UC Irvine work closely together. The surrounding tech industry provides internships and job opportunities to students. The business school collaborates with nearby companies, providing students with practical experience. UCI’s Institute for Innovation connects students with startups and entrepreneurial resources in the area.
Apartments near UC Irvine | Houses for rent near UC Irvine
UC Santa Cruz is celebrated for its marine biology and environmental science programs. The university also offers strong programs in computer science and engineering. Many students choose UCSC for its focus on research and sustainability.
Santa Cruz and UCSC have a close relationship. Local marine research centers collaborate with the university’s marine biology program. Environmental science students benefit from partnerships with nearby environmental organizations. The Santa Cruz Economic Development Office works with UCSC to find additional internships and job opportunities.
Apartments near UC Santa Cruz | Houses for rent near UC Santa Cruz
The Claremont Colleges, including Pomona and Claremont McKenna, are a group of seven schools known for their strong liberal arts programs. These colleges also offer top-tier economics and political science programs. Many students choose Claremont for the small class sizes and personalized education.
Claremont and the colleges are tightly linked. The town offers plenty of internships and job opportunities, particularly in education and politics. Many local businesses collaborate with the colleges, giving students hands-on experience in their fields before their four years are up.
Apartments near The Claremont Colleges | Houses for rent near The Claremont Colleges
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 400,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Online savings accounts function similarly to traditional savings accounts, except you will manage your account entirely online or by app. Not only can these savings accounts be one-click convenient, they may offer you a healthier interest rate than accounts held at a brick-and-mortar bank.
If you’re trying to decide whether an online savings account or traditional savings account would suit you best, here are the details you need.
What Is an Online Savings Account?
An online savings account functions similarly to one offered by a traditional bank, except you manage your banking needs digitally. With an online savings account, you won’t have the option of walking into a bank when you need support, but you will be able to quickly click your way ahead and complete most transactions.
As a refresher course, savings accounts are a type of bank account designed to help you save. They keep your savings separate from the money you spend on essentials like rent and groceries, which is usually held in a checking vs. savings account.
Since the principle is that your money will sit and grow in these accounts, rather than flow in and out constantly, banks pay you interest on these funds. They get to use your money, and they give you interest in return for that privilege. As your cash grows in the account, you can achieve different goals, such as building up an emergency fund, saving for a vacation, or getting a down payment together for a house.
💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.
How Does an Online Savings Account Work?
You start an online savings account with an opening deposit, and then you’re ready to start saving. With an online savings account, you can manage your savings from anywhere in the world at any time of day. While there are plenty of banks and credit unions that have online account management services, purely online savings accounts often come with unique perks. For example, online banks usually don’t have a minimum balance requirement like traditional banks do. They often pay a higher interest rate, too.
You can transfer funds in and out as needed, as with any savings account. Typically, savings accounts had only allowed six or fewer transfers per month. Initiate more than that, and you might have to pay a fee. However, many banks have stopped following this guideline in recent years. Check with your bank to know the details.
It’s also worth mentioning that with an online account, you won’t be able to deposit or withdraw cash into your account by strolling into a branch. There aren’t physical banking locations to visit. You’ll need to transfer funds in and out electronically, or you may be able to use ATMs. There’s a silver lining, though. In exchange for not having to pay for the overhead that comes with running an in-person bank, online banks often offer lower fees and higher interest rates.
Depositing Funds Into an Online Savings Account
As mentioned above, it’s not possible to deposit cash into an online savings account by visiting a branch. Instead, you can deposit money in the following ways:
• Transfer money from a linked account into your online savings account. (If you’re really committed to saving, you may want to automate recurring transfers).
• Use a check; this deposit can be done by mobile deposit or by mail.
• Complete a wire transfer into your online savings account.
• Set up direct deposit of funds (say, your paycheck or other benefits) to go into the account.
Withdrawing Money From an Online Savings Account
Next, consider withdrawing and spending money from a savings account. When you have an online savings account, here are your options:
• Transfer funds into another account (say, one held at a traditional bank), and then take out cash in person.
• Use an ATM. Some online banks allow you to link your savings to a debit card, which makes this possible.
• Initiate a wire transfer.
• Put in a check request.
• Digitally send money to other people (say, by a P2P transfer) so you don’t need to take out cash.
Cash Deposits
Unfortunately, online banks don’t usually enable you to deposit cash, as there are no physical banking locations available. See above for some of the other ways you can move your funds around so your cash gets where you want it to go.
Earn up to 4.60% APY with a high-yield savings account from SoFi.
Open a SoFi Checking and Savings account and earn up to 4.60% APY – with no minimum balance and no account fees.
Benefits of Using an Online Savings Account
Here are some of the key benefits you may enjoy with an online savings account.
• Higher interest rates and lower fees. This means your savings can likely grow faster. These higher interest rates are possible because the financial institution doesn’t have to pay for expensive brick-and-mortar banking locations.
• Manage accounts anywhere, anytime. It’s possible to do all of your basic savings account management whenever and wherever you like. The only requirement: a good, secure wifi connection.
• Helpful mobile banking apps. Plenty of traditional banks have mobile apps, but online banks tend to have high-tech apps with better features.
• More accessible customer service. You are likely to be able to get all of the banking support you need from the comfort of your own home or on the go. Online banks were built to be responsive in this way.
Disadvantages of Using an Online Savings Account
On the flip side, there are some disadvantages when you only bank online. Here are some of the cons of using an online savings account.
• No face-to-face interaction. With online savings accounts, you can’t go into a physical banking location, ask questions, or sit down with a bank representative. For those who like face-to-face interaction, this can be a disadvantage.
• Can lose account access. When a savings account is entirely online, you may lose account access in the rare event of the bank’s system going down.
• ATM access can be limited. Some online banks don’t have their own ATMs. They may try to provide greater access with some independent ATM networks or by reimbursing customers for ATM fees incurred when using out-of-network ATMs.
• Fewer financial services. Some online banks offer more limited product selections than larger traditional banks. If you’re looking to manage your savings account, loans, and other financial products in one place, you may find that an online savings account doesn’t meet your needs.
Pros of Online Savings Accounts
Cons of Online Savings Accounts
• Higher interest rates and lower fees
• Ability to manage accounts anywhere, anytime
• Helpful mobile banking apps
• More accessible customer service
• No face-to-face interaction
• Can lose account access
• ATM access is limited
• Fewer financial services
Opening an Online Savings Account
If you decide you want to open an online savings account, here are the steps you will likely take.
1. Fill out the application. This process typically happens entirely online. Generally, you will be expected to provide such information as your name, proof of address, Social Security number, and government-issued photo ID (say, a driver’s license or a passport).
2. Choose an account type. There may be an option to choose between different savings account types, such as an individual account or a joint account that you can share with a family member.
3. Designate beneficiaries. Next, you will need to choose a beneficiary to whom the savings account would go if you were to die.
4. Deposit funds. Some online banks won’t require a minimum initial deposit or will only request $1. Whatever the amount may be, you will need to make that minimum deposit. (There’s no typical online savings account minimum balance to maintain, by the way. Check with banks to understand their particular guidelines.)
5. Create login information. All online savings accounts will need a username and password. It’s important to make the password a secure one that includes one or more capital letters, numerals, and symbols. Also, it bears repeating: Don’t reuse passwords. Unique passwords will help keep you secure from hackers. This is a big issue if you are wondering whether or not online savings accounts are safe.
💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.
Online Savings vs Traditional Savings: Which Is Best for You?
There are both advantages and disadvantages to consider when choosing between an online savings account and a traditional savings account. Being aware of the unique advantages and disadvantages of each can make it easier to find the right fit.
Online Savings
Traditional Savings
• Better rates and fees
• Stronger digital tools and features
• Limited product offerings
• Minimal ATM access
• Hard to withdraw cash
• No face-to-face customer support
• In-person banking locations
• More ATM access
• Broader range of products
• Fewer online resources
• Lower interest rates and higher fees
The Takeaway
Online savings accounts vs. traditional ones can be more convenient, have more digital features, and offer lower fees and better interest rates. Traditional banks, however, can make it easier to withdraw and deposit funds, and they can be the right choice for people who like face-to-face interaction when it comes to their finances. Figuring out the right fit can depend on your money style and goals.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
How do I use an online savings account?
With access to a computer or a smartphone, you can access your online savings accounts from anywhere at any time simply by logging in.
What is the typical minimum balance for an online savings account?
That depends: Some online savings accounts have minimum balance requirements while others don’t. Check at the banks you are considering.
Is my money insured in an online savings account?
Your money should be safe in an online savings account, as long as the online savings account is insured by the FDIC. If so, your account is automatically insured for up to $250,000 per depositor, per account category, per insured institution.
What is the typical interest rate for an online savings account?
Interest rates vary over time and from bank to bank. Generally, online savings accounts have higher interest rates than traditional savings accounts, such as a rate of up to 4.00% APY or higher at press time.
How can online banks offer such good interest rates?
Because online banks don’t have the expensive overhead that comes with managing in-person banking locations, they can afford to pass their savings to their customers in the form of higher interest rates.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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.
Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.
Key takeaways
Non-QM loans provide an option for those who don’t meet the requirements for standard mortgages, such as business owners, self-employed borrowers and gig workers.
These loans offer flexibility in terms of income and credit requirements, but they carry higher down payment requirements and interest rates.
To find a non-QM loan, borrowers should determine their eligibility and shop around for a lender that focuses on this type of mortgage.
Some homebuyers don’t fall into the standard mortgage lending box. Usually, it’s for factors related to their creditworthiness and income level or income predictability. That’s where a non-qualified mortgage — non-QM for short — can fill the gap. While non-QM loans offer more lenient credit and income requirements, they also come with higher down payments and interest rates — and sometimes without important consumer protections.
What is a non-qualified mortgage?
A non-qualified mortgage is a type of mortgage that doesn’t conform to certain standards set by the Consumer Financial Protection Bureau (CFPB). These standards mandate certain features loans may (or may not) have, and delineate certain practices lenders must follow in evaluating applicants’ finances and ability to repay. Asset-based loans and no-income loans are common examples of non-QM loans.
In the case of mortgages, non-QM lenders have more flexibility in underwriting guidelines. They will work with borrowers whom conventional lenders might deem too risky because of their non-salaried income, their low credit score or their blotted credit history — or who just don’t fit the qualified-mortgage criteria.
What are the features of a non-qualified mortgage?
Non-QM loans feature looser income and credit requirements. For example, instead of W-2 forms and paystubs, borrowers may be able to use alternative methods of income documentation, such as tax returns, bank/investment account statements (or other proof of assets), rental income or 1099s, to demonstrate their ability to repay the loan.
Borrowers’ debts may consume a greater percentage of their income than the standard amount conventional lenders like to see — as much as 50 percent.
In some cases, there is no waiting period after bankruptcy or foreclosure, enabling individuals to secure a mortgage soon after these events.
How does a non-qualified mortgage differ from a qualified mortgage?
A qualified mortgage (QM) is a type of loan that adheres to specific guidelines set by the CFPB. These guidelines are designed to ensure that the borrower can afford the loan and include restrictions on negative amortization, interest-only payments and balloon payments, among others. QMs also have loan terms that do not exceed 30 years and require verification of your income and assets.
The QM rule has four key directives lenders must follow:
The “ability-to-repay” rule
Lenders must ascertain whether a borrower can truly afford a loan before giving them any financing — by verifying and documenting certain aspects of the individual’s personal finances (the “underwriting” process). The ability-to-repay rule requires a lender, at a minimum, to evaluate loan applications on these eight components:
Current income/assets
Current employment status
Monthly payment for this mortgage loan
Monthly payment on any simultaneous loan that’s secured by the home such as a piggyback mortgage (usually taken out when a borrower doesn’t have enough cash for a down payment)
Monthly payment for mortgage-related obligations
Current debt obligations, alimony and child support
Monthly debt-to-income ratio or residual income
Credit history
Restrictions on risky features
These include:
Loan terms longer than 30 years
Interest-only payments without paying down the principal
Balloon payment (a big lump-sum payment at the end of a loan term)
Negative amortization, which allows your loan balance to increase over time
Caps on fees and points
Lender fees and points can dramatically increase your borrowing costs. For loan amounts that exceed $100,000, lender fees and mortgage points cannot exceed 3 percent of the loan amount.
Limits on debt-to-income ratio
Expressed as a percentage, the debt-to-income (DTI) ratio is derived by dividing all of your monthly obligations by your pre-tax monthly income. In most cases, a qualified mortgage borrower is limited to a 43 percent DTI ratio.
In contrast, non-QM loans are not subject to these same rules and regulations. They typically have less stringent requirements for credit scores, debt-to-income ratios and repayment schedules. However, they can also feature longer-than-30-year terms, balloon payments and higher fees.
The Consumer Financial Protection Bureau established its Qualified Mortgage standards in 2014. They were largely in response to certain irresponsible lending practices of the early 2000s: lack of due diligence into applicant finances, people receiving loans they really couldn’t afford and terms that made delinquency or default more likely. All of this contributed to the 2007 subprime mortgage crisis, with its wave of defaults and foreclosures.
Is a non-qualified loan the same as a non-conforming loan?
Non-qualified loans and non-conforming loans are not the same thing. Both refer to mortgages that are outside the typical sort of loans most homebuyers get. But they are outside two different sets of rules; in other words, they differ in the standards that they are not adhering to.
A non-QM loan doesn’t conform to the standards set by the CFPB to protect consumers from predatory lending practices — and to ensure they don’t take out loans they won’t be able to repay.
A non-conforming loan doesn’t meet (or conform) to the criteria set by the Federal Housing Finance Agency (FHFA). As a result, it is not eligible for purchase on the secondary mortgage market by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy most of the home loans originated in the U.S. Chief among the FHFA’s criteria: The loan can’t exceed a certain amount — $766,550 in most parts of the U.S. in 2024.
There is overlap in the FHFA’s and the CFPB’s standards, especially in the borrower’s finances and creditworthiness. Conforming loans often require applicants to have a DTI of no more than 43 percent, proof of salaried income and a certain credit score, for example. If a loan has other non-traditional features, such as having a term other than 15 or 30 years, or requiring no down payment, it is usually non-conforming, too.
Basically, non-conforming loans are a category of non-QM loans that don’t fit into the typical mortgage framework.
Who can benefit from non-qualified mortgages?
While CFPB’s Qualifying Loan standards are intended to safeguard consumers, they can sometimes seem exclusionary to those whose financial profiles don’t fit the norm. Borrowers who’ve tried getting a conventional or government-insured loan and were turned down may find what they’re looking for working with a non-QM lender.
Here’s who may benefit most from a non-QM loan:
Self-employed borrowers: These borrowers generally have sporadic pay and multiple income streams, making it hard to get a qualified mortgage. Many self-employed, non-QM borrowers get bank statement loans, which are based on their cash flow and liquid assets (rather than relying on W-2s).
Real estate investors: These are the folks who fix-and-flip homes, or who rent out and generate an income from the homes they buy, and need funding quickly. Investors are exempt from the ability-to-repay rule, usually because they sell the homes they buy quickly, or they rely on rental income to repay the mortgage. DSCR loans (short for debt service coverage ratio) and asset depletion home loans (in which you tap the equity in your primary residence to fund the purchase of another property) often accommodate this sort of borrower.
Foreign nationals: Non-resident borrowers who want to purchase property in the U.S. might not qualify for a traditional loan because of a low or non-existent U.S. credit score. Non-QM lenders use international credit reports and letters from creditors to qualify this group for a foreign national home loan. Mitigating factors, such as a high income, robust liquid assets and a large down payment, also help foreign borrowers qualify for non-QM loans.
Prime borrowers: Borrowers who have pristine credit but are in search of a loan with certain features, such as interest-only payments or a debt-to-income ratio limit above the standard 43 percent, are considered “prime non-QM borrowers.”
Near or non-prime borrowers: In many cases, these are borrowers who have insufficient credit, or a prior bankruptcy or recent distressed property sale within the last two years. Lenders tend to require more money down and may have tighter standards elsewhere to lessen the credit risk.
Borrowers with significant assets: A type of non-QM loan, called an asset qualifier loan, is ideal for borrowers with prime credit and substantial assets. Although the assets are enough to buy the home outright, a borrower may decide to finance the purchase to maintain positive cash flow. Credit invisibles — people who have considerable assets but who lack a long credit history or credit score (because they don’t use credit cards) — are good candidates too.
How do lenders verify income for non-qualified loans?
While the process for verifying income for a qualified loan typically involves reviewing tax returns, W-2s and pay stubs, the process for non-QM loans is slightly different. Using manual underwriting, lenders may allow borrowers to demonstrate their ability to repay the loan using alternative forms of income documentation, such as bank/investment account statements, 1099s, receipts from rents or leases or other business receivables.
What are the drawbacks of a non-QM loan?
Non-QM loans can be a viable alternative to conventional financing — but these benefits come at a cost. Non-QM loans typically have higher down payment requirements (as much as 25 percent of the home price) and interest rates.
As for rates, spreads above qualifying mortgages can be as little as 0.25 percent and as much as 5 percent, depending on the terms of the transaction and the creditworthiness of the borrower. Non-QM 30-year fixed rate loan rates are typically a percent or two higher than the prime 30-year fixed mortgage rate, according to Fitch Ratings.
The stiffer terms exist to compensate the lender for the additional risk they’re taking on — since Fannie Mae and Freddie Mac cannot purchase non-QM loans.
Pros
Easier to obtain
Open to non-traditional borrowers
More flexible terms
Cons
Harder to find (reputable lender)
Higher interest rate, down payment
Potentially tougher to repay
Also, the lender still has to do some due diligence on the borrower. It faces the risk of a CFPB enforcement action if the borrower’s ability to repay is not accurately verified.
Finally, the loan could be riskier for the borrower. There’s a reason the CFPB frowns on features like balloon payments and interest-only repayments — they can blow up in a borrower’s face, increasing the likelihood of delinquency and default. At the very least, the non-QM loan is likely to be more expensive than a traditional mortgage of comparable size and term.
Where can you get a non-QM loan?
If you’re interested in a non-QM loan, there are several places you can turn to. Start by determining your eligibility — typically, you’ll need a minimum credit score of 620, stable income and a consistent employment history.
Once you’ve confirmed your eligibility, you can then search for a lender that offers non-QM loans Many mortgage brokers work with non-QM wholesale lenders, so they might be a good resource.
When you find a lender, ask if they’ll first run you through an automatic underwriting, just to make sure you couldn’t get a qualifying loan after all. Also ask lenders whether they originate their own non-QM loans, or if the loan is backed by another company that will service your loan. Take the time to understand what fees you’ll pay, as well as any special loan terms or features that might add to your overall borrowing costs.
You should always fully understand the terms of your mortgage. But it’s especially important to read the fine print and be aware of the worst-case scenario of any non-qualifying loan you consider.
Thinking about college in Maine? You’re in luck. The Pine Tree State is full of great college towns that work with their colleges and universities to create an environment where higher education shines.
Whether you’re an undergrad leaving the nest and looking for an apartment in Orono or a professor on the hunt for a home in Portland, there’s a place in Maine for you.
Let’s dive into some of the best college towns in Maine. From marine biology or economics, there’s a place for you in Maine. Here’s a quick look at eight top college towns in Maine and what makes them special.
The University of Maine is renowned for its engineering programs. Students appreciate the hands-on learning and innovative research opportunities. Mechanical and civil engineering are particularly strong, with state-of-the-art labs and equipment. Forestry and business programs also draw their fair share of students.
Orono and the University of Maine have a close relationship that enhances the student experience. The university hosts local farmers’ markets, music festivals, and art exhibits, making weekends something to look forward to. Businesses in Orono frequently hire students for internships, giving them valuable real-world experience before they graduate. Additionally, the university’s Cooperative Extension works with local farmers and businesses, supporting the community and providing students with unique learning opportunities.
Apartments near University of Maine | Houses for rent near University of Maine
Bowdoin College stands out for its liberal arts programs, which are among the best in the country. The college’s English and history departments are particularly strong. Environmental studies is also a big draw, especially for those interested in sustainability and conservation.
Brunswick and Bowdoin College work hand-in-hand to create a supportive community environment. Students often volunteer in local projects, like tutoring at elementary schools and participating in environmental clean-ups.
Apartments near Bowdoin College | Houses for rent near Bowdoin College
Bates College excels in the social sciences and humanities, making it a top choice for students interested in these fields. The college’s psychology and political science programs are highly regarded, with faculty members known for their research and teaching excellence. Bates’ commitment to social justice and community engagement is a big draw for students passionate about making a difference.
Bates College plays a key role in the Lewiston community. The college supports local businesses through partnerships and service-learning projects. Students frequently help out local nonprofits, working on projects that address issues like housing, education, and health care.
Apartments near Bates College | Houses for rent near Bates College
Colby College in Waterville offers strong programs in the sciences and economics. The biology and chemistry departments are particularly notable, with faculty members involved in cutting-edge research. Colby’s emphasis on undergraduate research helps students prepare for graduate studies and careers in science and technology.
Waterville benefits greatly from Colby College’s presence. The college has invested in downtown revitalization projects, improving local amenities and attracting new businesses.
Apartments near Colby College | Houses for rent near Colby College
The University of Southern Maine is known for its business and nursing programs. The School of Business offers a range of concentrations, including marketing, finance, and management. The nursing program is also highly regarded, with a focus on clinical practice and patient care.
Portland and USM share a connection that enhances the educational experience. The university partners with local healthcare providers, giving nursing students hands-on experience in real clinical settings. Business students often intern at Portland’s innovative startups and established companies, gaining valuable insights and professional connections.
Apartments near University of Southern Maine | Houses for rent near University of Southern Maine
The University of Maine at Farmington specializes in education and psychology, making it an excellent choice for aspiring teachers and counselors. The education program is known for its comprehensive curriculum and practical training opportunities in local schools. UMF’s psychology program also attracts many students, offering courses in clinical, developmental, and experimental psychology.
Farmington and UMF have a strong and supportive relationship. Students often work in local schools as part of their training, gaining valuable classroom experience. The college hosts a variety of events that bring the community together, like poetry readings, theater productions, and art installations.
Apartments near University of Maine at Farmington | Houses for rent near University of Maine at Farmington
The University of Maine at Augusta focuses on nursing, cybersecurity, and business administration. The nursing program provides extensive clinical training, while the cybersecurity program equips students with the skills needed to protect digital information. Business administration is also a popular choice, with courses in management, marketing, and finance.
Augusta benefits from UMA’s contributions to the community. The university partners with local hospitals for nursing clinicals, giving students hands-on experience in patient care. Cybersecurity students often intern with local government agencies and businesses, helping to protect sensitive information and systems.
Apartments near University of Maine at Augusta | Houses for rent near University of Maine at Augusta
The University of New England is a leader in health sciences, offering top-notch programs in osteopathic medicine, pharmacy, and dental medicine. UNE’s marine science program is also highly regarded, thanks to the university’s coastal location and state-of-the-art facilities.
UNE and Biddeford collaborate closely to benefit students and residents. The university’s health clinics serve the local community, providing essential medical care and training opportunities for students. Marine science students engage in local conservation efforts, working with organizations to protect the area’s natural resources.
Apartments near University of New England | Houses for rent near University of New England
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 100,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Inside: Learn how much your 55k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
You want to know to look into this… Is 55k salary a solid hourly wage in today’s society?
When you get your first job and you are making just above minimum wage making over $55,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income was $70,084 in 2021 not much different from the previous year (source). Think of it as a bell curve with $70 at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $55,350 for a 40-hour workweek; that is an increase of 1.1% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
But, the question remains… Can you truly live off 55,000 per year in today’s society since it is barely above the average income and yet still below household incomes? The question you want to ask all of your friends is $55000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $55000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $55k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$55000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 55k a year hourly. That way you can decide whether or not the job is worthwhile for you.
55000 salary / 2080 hours = $26.44 per hour
$55000 a year is $26.44 per hour
Let’s breakdown how that 55000 salary to hourly number is calculated.
For our calculations to figure out how much is 55K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $55000 by 2,080 working hours and the result is $26.44 per hour.
Right above $26 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $7,500, it would increase your hourly wage to over $30 an hour – a difference of $3.61 per hour.
To break it down – 62500 a year is how much an hour = $30.05
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $55K salary Per Month?
On average, the monthly amount would be $4,583.
Annual Salary of $55,000 ÷ 12 months = $4,583.33 per month
This is how much you make a month if you get paid 55000 a year.
$55k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $55k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$55000/52 weeks = $1,057.69 per week.
$55000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1057.69 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$55000 / 260 working days = $211.54 per day
If you work a 10 hour day on 208 days throughout the year, you make $264 per day.
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$55000 Salary is…
$55000 Salary – Full Time
Total Income
Yearly Salary (52 weeks)
$55,000
Monthly Salary
$4,583
Weekly Wage (40 Hours)
$1,058
Bi-Weekly Wage (80 Hours)
$2,115
Daily Wage (8 Hours)
$211
Daily Wage (10 Hours)
$264
Hourly Wage
$26.44
Net Estimated Monthly Income
$3,499
Net Estimated Hourly Income
$20.19
**These are assumptions based on simple scenarios.
Do you know how many work days in a year you work? This answer may surprise you.
55k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with a salary range of up to $160,200.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 55000 a year after taxes?
Gross Annual Salary: $55,000
Federal Taxes of 12%: $6,600
State Taxes of 4%: $2,200
Social Security and Medicare of 7.65%: $4,207.50
$55k Per Year After Taxes is $41,992.50.
This would be your net annual salary after taxes.
Hourly Wage After Taxes
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$41,992.50 ÷ 2,080 hours = $20.19 per hour
After estimated taxes and FICA, you are netting $41,992.50 per year, which is $13,007.50 per year less than what you expected.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based on Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody who lives in a no-tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $55000 income can range from $37,592 to $44,192 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously, you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $55,000 income.
My 55000 Salary To Hourly Calculator
More than likely, your salary is not a flat 55k, here is a tool to convert your salary to hourly calculator.
Many teachers are hovering in this range, which may make you wonder do teachers get paid in the summer.
If you are looking to change industries, you need to check out the freight broker salary.
55k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person? And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $55,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $55,000 a year is slightly above the average income that you would find in the United States. Thus, you still have to be wise with how you spend your money.
What a $55,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL and even a MCOL city.
Looking for ways to invest 100 to make 1000 a day.
Focus on becoming financially sound.
You should be able to meet your expenses each and every month.
Ability to make sure that saving money is a priority, and very possibly save $5000 in one year.
When A $55,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 55k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$55K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money is left for fun spending.
If you want to know how to manage a 55k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $55000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$275
Savings
15-25%
$825
Housing
20-30%
$1,100
Utilities
4-7%
$183
Groceries
5-12%
$346
Clothing
1-4%
$34
Transportation
4-10%
$229
Medical
5-12%
$252
Life Insurance
1%
$14
Education
1-4%
$34
Personal
2-7%
$69
Recreation / Entertainment
3-8%
$138
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,084
Total Gross Monthly Income
$4,583
**In this budget, prioritization was given to basic expenses and no debt.
Is $55,000 a year a Good Salary?
As we stated earlier if you are able to make $55,000 a year, that is a decent salary. You are making more money than the minimum wage and almost double in many cities.
While 55000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $55k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 55k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities, 55,000 a year will not be a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 55,000 per year.
If you are looking for a career change, you want to find jobs paying at least $75000 a year.
Is 55k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $55000 per year.
And… most of us probably regret that we didn’t learn how to spend money wisely. Oh well, lesson learned.
Is 55k a good salary for a family?
Many of the same principles apply above on whether $55000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child. Plus this does not include college.
That means that amount of money is coming out of the income that you earned.
So, the question really remains can you provide a good life for your family making $55,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 55,000 per year, then the combined income for the household would be $110,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $55000 Per Year?
As we outlined earlier in the post, $55,000 a year:
$26.44 Per Hour
$211-264 Per Day (depending on length of day worked)
$1,057 Per Week
$2,115 Per Biweekly
$4,583 Per Month
Next up is making $60000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 45,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 15 years and still making under $55K, then you probably need to look at asking for pay increases, picking up a second job, or finding a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
You can make money as a freelance writer. Learn techniques to find those jobs and earn the kind of money you deserve! Plus get tips to land your first freelance writing gig!
Learn how to buy and resell items from flea markets, thrift stores and yard sales. They will teach you how to create a profitable reselling business quickly
…no matter how much or how little experience you have.
Learn how to supplement your daily, weekly, or monthly income with trading so that you can live your best life! This is a lifestyle trading style you need to learn.
Honestly, this course is a must for anyone who invests. You will lose more in the market than you will spend this quality education – guaranteed.
Read my Invest with Teri Review.
Designed as a 101-level course on freight brokerage, you’ll learn the basics of freight brokering in this online course.
This course is designed for freight brokers in any setting, regardless of their employment status.
If you want to start your brokerage, we’ll show you exactly how to do it. If you are an agent or employee of a brokerage, we’ll take you through sales and operations modules designed to help you source more leads and move more freight.
The Empowered Business Lab teaches you how to sell your digital products naturally with strategies that just make sense.
Monica helps thousands find momentum and create revenue streams in their businesses.
After taking a second job as a driver for Amazon to make ends meet, this former teacher pivoted to be a successful stock trader.
Leaving behind the stress of teaching, now he sets his own schedule and makes more money than he ever imagined. He grew his account from $500 to $38000 in 8 months.
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Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.
Home equity loan
Home equity line of credit (HELOC)
Interest rate
Fixed
Variable
Monthly payment amount
Fixed
Variable
Closing costs and fees
Yes
Yes, might be lower than other loan types
Repayment period
Typically 5-30 years
Typically 10-20 years
FAQ
What is a rate lock?
Interest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in your current rate for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.
What are mortgage points?
Mortgage points are a type of prepaid interest that you can pay upfront — often as part of your closing costs — for a lower overall interest rate. This can lower your APR and monthly payments.
What are closing costs?
Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.
If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.