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June 3, 2024 by Brett Tams

Inside: In this guide, I reviewed all of the budget apps and compared features and costs to form the best budgeting apps list. Find the best budgeting apps to fit your needs.

The best way to become smart with your money is to actively manage your money.

Make a plan for your money. Some may call it a budget.

At Money Bliss, we like to call it a Cents Plan. This enables you to find financial freedom. Find that place Where Cents Parallel Vision. Today, there are many budgeting apps on the market.

To kick off the new year, I was determined to find the best budgeting app on the market. Guess what?

My list grew each week!! And still growing! There are so many choices.

There are money management apps. Personal finance apps. Budgeting apps. So many apps to choose from! Seriously.

Some are free budgeting apps. Others have a monthly fee. Some have one-time costs.

The key to any budgeting app (free or paid) is to learn to manage your money.

At the very bottom of the post, we will reveal the best budgeting apps available.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Start Your Free Trial.

What is a Budgeting App?

A budgeting app is a tool that helps you manage your money and keep track of how much you spend.

There are many different types of apps, and some may be free while others cost money.

However, they all make managing your finances easy by tracking where your money goes each month as well as providing tools for saving cash flow or spending more efficiently on things like groceries or travel expenses.

The end purpose of a budgeting app is to make managing your money easy.

There are many apps out there that can help you with this, including some from big brand names like Mint which just announced it is shutting down, Acorns, and Quicken. This guide will provide a list of the best budgeting apps for 2024 so you can save time and money!

Quick Answer

The preferred budget apps are YNAB, Empower, and Quicken.

What to Look for in Budgeting Apps

In order to find the best budgeting apps, you need to know what features and functions you are looking for.

The best budgeting apps are often the simplest and focus on ways to make saving a breeze.

They can help ease financial uncertainty by providing tools that allow users to save more money over time.

What’s more, how can you tell what to look for in a good budgeting app?

1. Ease of use

The best budgeting apps are easy to use and do not require manual entry. Different ways of creating a budget include handwriting it out, using a spreadsheet, or logging into an app or software program.

You want to find something that is easy for you to use. Even better, if you find the app fun to use!

2. Budgeting Capabilities

There are many types of budgeting apps; thus, each person will have budget apps they prefer over others. At the end of the day, you need something that will work for you over the long term.

Some have basic features that simply allow users to view their own spending, while others provide a number of tools for managing finances and saving money. Users should choose an app based on what they want as well as the capabilities it offers.

Many budget apps let you define your categories to track.

3. Saves Time

When you have an automatic budgeting app, it tracks how money moves in and out of your bank account automatically with ease. In addition to this, the updating process takes place automatically as well which saves more time for individuals who need it most!

Saving time with the least favorite tasks like budgeting is a win-win!

You want your budgeting app that makes managing your money a breeze.

4. Focus on Financial Goals

You need a budget app that helps you work towards your smart financial goals. This is important.

You want your budgeting app to help you with achieving your financial goals.

5. Synchronization

Synchronization is the process of returning data to a master database from one or more secondary databases. You want the budget app to synchronize accounts automatically.

Most offer automatic synchronization but may lack a feature that allows for a reconciliation of accounts such as bank accounts.

Many budgeting apps can synchronize from desktop to mobile. In addition, you can have multiple users on the same platform.

6. Price

Budgeting apps range in price from free to about $150 per year.

The app that has the most features and options is Quicken, especially given its price point.

Spending $5 a month to manage your finances is cheaper than overdraft fees and the lack of saving money.

7. App ratings

Many financial experts and personal finance gurus agree that a budget is necessary to take control of your money.

Look for budgeting apps that have at least 1,000 reviews in both the App Store (for iOS) and on Google Play (for Android), as well as a rating of 4 stars (out of 5) or higher on both platforms.

That will tell you the longevity of the app and user appeal.

8. Security

Specifically, are budgeting apps secure? Are there any security features in place to protect your data? This is a huge feature you need to verify your personal information will be intact.

On my budgeting apps, financial information is safe because they need to go through vigorous testing and pass banking regulations. There are certain vulnerabilities inherent to operating online in the cloud.

9. Additional Features

Most budgeting apps go beyond basic budgeting. Some offer advice on debt and investments, while others identify unnecessary expenses.

Most apps can track your spending and organize your expenses into categories.

The savings apps will automate savings, suggestions to save money, bill alerts, access to credit scores, and investing features.

All of the apps have a different feature set, so it’s important to find what you’re looking for.

Good Budgeting Apps will Help, But First – You Must

Before we dig into the list of good budgeting apps, we must discuss key points first.

In order to be successful, with any type of budget app, you must understand three key areas.

1. Uncover your Money Situation

You can’t hide under the sheets or with your head in the sand and expect changes.

To be successful with money, you must be active with your personal finance situation.

Take time to understand your vision. Figure out where you stand in building a foundation to the Money Bliss Steps to Financial Freedom. Understand where the pits of money are spent every month.

Not sure, where to start? Stick around here at Money Bliss; we have many resources to help you!

Must Read Help:

2. Budgeting Apps Won’t Change Habits

While personal finance or money management apps keep you on track, they are incapable of changing habits.

You have to make changes.

Just because the budget app tracks your usage on the credit card doesn’t mean that you should have spent that money. So, be willing to make changes in your spending habits and those emotional purchases to achieve financial freedom.

You must learn to manage your money.

Related Readings:

3. Still Need Paper & Pen

The first thought is “Wait, I wanted to get away from paper and pen.” Yes, that is the goal for most individuals.

However, it is key to know your net worth over time.

Also, you never know when your favorite budget app will go away. (Ugh!) Personally, I don’t like to be pessimistic, but technology is rapidly changing, and being able to adapt is key.

Keep tracking your personal finance numbers toward financial freedom in a separate place.

Okay without further ado, the full list of budgeting apps on the market.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

Start 34 Day Free Trial

Full List of Budgeting Apps with Free Trial

The budget apps we selected for this section offer a free trial for users to test out before signing up.

Budget apps are typically inexpensive and start with a free trial.

1. YNAB (You Need a Budget) – A proven method that has helped hundreds of thousands of people break the paycheck to paycheck cycle, get out of debt, and live the life they want to live. YNAB is best for serious budgeters.

2. Simplifi – Manage your money less in 5 minutes each week. Reach your money goals with confidence! Introducing Simplifi by Quicken, the personal finance app that gives you something to look forward to.

3. Tiller Money – Your financial life is in a spreadsheet, automatically updated each day. Track all your accounts in one place, always know where your money goes, and confidently plan your financial future.

4. Rocket Money – Rocket Money is your automated financial assistant and budget tracker designed to put you back in control of your money. Truebill lets you easily track bills, cancel unwanted subscriptions, and proactively request refunds on your behalf, putting real money back in your pocket!

5. Qube Money – The cash envelope system made easy. They invented digital cash envelopes. Real-time financial awareness without the hassle of tracking expenses, updating spreadsheets, and carrying cash.

6. HoneyMoney– HoneyMoney increases your awareness about your money habits.
Being fully aware of your money naturally changes how you spend it. Great way to use cash flow budgeting. Plus uses “envelopes” to budget.

7. Qapital – Free, easy way to save money. Get $5 for your first Goal if you sign up here.

8. Money Patrol – MoneyPatrol actively monitors and analyzes financial transactions, and then alerts insights about the trends, patterns, and anomalies observed.

9. Wallet– Wallet is designed to help you get your finances under control from day one, giving you ongoing insight into your financial situation, and helping you stay in control for the long term.

10. Every Dollar– EveryDollar follows the zero-based budget approach recommended by Dave Ramsey, a top personal money-management expert. Create daily and monthly budgets and track your expenses to manage and save money.

11. Expensify – Expensify is the perfect tool for anyone who needs to keep track of receipts and automate expense management.

12. Cost Track – Expense Tracker – Cost Track allows you to: use your money wisely, keep track of your personal and family budget, and quickly enter your income and expenses.

13. Easy Spending – It is a simple and convenient finance tracker that provides the most powerful and convenient daily money management for iPhone and iPad, that neatly tracks all your cash flow between different accounts that you can budget.

Making Your Budget Work for You:

Full List of Free Budgeting Apps

The budget apps we selected for this ranking are completely free! Free budget apps are good options for users who don’t want to pay monthly or a yearly fee. Just to note, the list of free apps is dwindling with each update.

Finding the best budgeting app the best ones do simple things well.

Free apps are not always better than paid ones.

Typically, the free versions of budget apps provide basic features. Plus there are many free budget apps available on the market.

1. Empower – Empower is the best app for investors. This is one of my favorite ways to analyze investment accounts. See all of your accounts in one place, which helps to see spending. Free budgeting app to use. Read my Empower Review.

Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

2. PocketSmith – Manage your budget and forecast your finances. There are paid levels of access but you can still get basic options for the casual budgeter.

3. Zeta – AskZeta is a financial planning platform designed to help couples manage their finances collaboratively. It provides tools and guidance for setting joint financial goals, budgeting, and navigating major life events to build a secure financial future together.

4. Honeydue – A financial app designed for couples, facilitating shared money management. It allows partners to track and manage their finances collaboratively, providing insights into spending, budgeting and shared financial goals.

5. GoodBudget – Envelope budgeting for the modern world.

6. Fudget – The budget planner you can actually use.

7. Wally – Personal Finance – It helps you compare your income to your expenses, understand where your money goes and set and achieve goals.

9. CountAbout – CountAbout is an online personal finance solution that surpasses the security and ease of use of the other popular commercial solutions on the market while offering complete privacy, zero advertising, and no selling of your personal data.

10. Daily Budget Original – Daily Budget calculation, planning & saving for big spending, basic categories for expenses, backup.

11. Spending Tracker – The simple fact is, by tracking your spending you will be able to stick to a budget and therefore SAVE MONEY.

12. Money Monitor – You can track and organize all your transactions, accounts, budgets, bills, cash flow, and payees in Money Monitor by easy operation but with powerful functions.

13. Money Box – Set your money goals and track your personal savings with this app. Take control of your saving goals and spend cash wisely.

14. Dollarbird– Track and forecast your money as easily as adding events to a calendar! Dollarbird helps you make sense of your financial situation, plan ahead and manage your money together with those who matter.

15. NerdWallet – Whether you want to maximize credit card rewards, earn extra cashback, track your credit score or make budgeting easier, it’s all here.

Budgeting Resources:

16. Buddy – Designed for simplicity and efficiency, helping users easily manage their finances. With intuitive features, it enables users to track expenses, set budget goals, and gain insights into their spending habits for better financial management.

17. Banktivity – Banktivity puts you in the driver’s seat of your finances so you can do both.

18. PocketGuard – With all of your financial accounts in one place, PocketGuard helps you stay on top of your finance and make better financial decisions.

19. Budget Saved – Personal Finance – Budget Saved helps you save money by grouping expenses based on need or want. You input an expense, save it as a need or want, and then you can look back to see which purchases were really necessary. With this information, you can see exactly how much you can save.

20. Albert – Money Management – Combining human guidance with cutting-edge technology, Albert is an intuitive app that automates your financial life — so you can be free to enjoy it. Build savings, meet bills, end the overspending cycle and develop your financial IQ, right from the palm of your hand.

21. Expense IQ – Expense IQ (formerly EasyMoney) is your ultimate money manager app that combines an expense tracker, a budget planner, a checkbook register, integrated bills reminder, and more rolled into one powerful personal finance app!

22. Prism– Never miss a bill or pay late fees again! We automatically track your bills & send due date reminders, for free. See your income, account balances, & monthly expenses at a glance.

23. Coin Keeper– Download CoinKeeper — the handiest way to plan and manage your finances, created especially for smartphones and tablets.

24. Mobills– Mobills is a budget planning app that allows you to create a custom monthly budget that will help you take control of your money. You are able to manage your money, track your spending, and achieve your financial goals all in one place.

25. iSpending – iSpending helps you to track your income and spending. You can add transactions under different categories, such as income, food, and entertainment.

26. Receipt Box – The Receipt Box is a quick app that is conducive to developing a good habit of tracking spending. It indeed performs well on this one.

27. BUDGT – BUDGT will help you keep track of your Expenses in a very simple way and tell you how much money you can spend each day, taking in account what you have already spent during the current month.

Full List of Paid Budgeting Apps

A budgeting app is a type of software that helps you track your money to manage your finances. There are several different ways you can use them, including getting paid upfront or by monthly fee.

Some apps offer discounts for people who pay monthly, but this is not always the case. If an app doesn’t have the capabilities you need to better manage your budget, it’s not worth it.

App users want budget capabilities and prefer to handle bill paying on their own schedules.

1. Quicken– Quicken personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more. Read my Quicken Review.

2. Moneyspire – The budget feature is very user friendly and can rollover amounts. All of the reports you need at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken.

3. PocketSmith – Manage your budget and forecast your finances.

4. MoneyDance – Moneydance is easy to use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting and investment tracking.

5. CheckBook Pro – An easy & quick way to manage your daily finances, Checkbook Pro keeps track of your credit card charges, cash expenditures…etc.

6. HomeBudget – HomeBudget is an integrated expense tracker designed to help you track your expenses, income, bills due and account balances. It offers support for budgeting and allows analysis of your expenses and income, including charts and graphs.

7. Pennies – Keep track of your spending and save money with Pennies, the award-winning budgeting app for iPhone, iPad and Watch.

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Start Your Free Trial.

Budgeting Apps Off the Cloud:

Due to security concerns, many budgeters prefer to keep their financial information off the cloud.

Here are the best budgeting software that are off the cloud. And if you want, they can be synced.

1. Quicken– Personally, I have used Quicken – pretty much since it was developed. Way before budgeting apps were even a thing and the cloud didn’t exist. Quicken is great for tracking how your money is being spent. Their internal budget feature is not user-friendly and has quirks. However, the cash flow reports are awesome to compare spending. The #1 reason I still recommend Quicken is because of its long history.

Read my Quicken Review.

2. Moneyspire – For those frustrated with Quicken, Moneyspire is your choice. The budget feature is very user-friendly and can rollover amounts. All of the reports you need are at your fingertips. Also, you can move your data from many of the top budgeting apps and Quicken. Start a free trial here.

3. Tiller Money – Tiller is the only tool that automatically updates Google Sheets and Microsoft Excel with your spending, transactions, and balances each day.

4. Banktivity – Get full control of your personal finance situation with Banktivity. Has all the bells and whistles you would come to expect for personal finance budgeting software. There is the ability to connect to the cloud if you prefer. Only for Mac Users.

5. MoneyDance – Moneydance is easy-to-use personal finance software that is loaded with all the features you need: online banking and bill payment, account management, budgeting, and investment tracking.

6. QuickBooks – QuickBooks is most like Quicken. It is the preferred software for most bookkeepers. The features are very helpful, but the price is significantly higher.

Expense-tracking budgeting apps

Expense-tracking budgeting apps are becoming more popular as they allow users to connect to financial accounts. They track transactions and group them into categories, making the best ones based on expense tracking systems.

Some of the top expense tracking budgeting apps include:

Simplifi: Quicken has introduced a new personal finance management solution. It is simple, smart, and intuitive money tracker tool that ensures users can keep track of their income and expenses in real-time.
YNAB (You Need A Budget): YNAB helps to reverse this pattern by living off last month’s income during current month.
Pocket Expense: This app is easy to use and has a clear interface for users who are not tech savvy. With Pocket Expense, you can input your income and expenses, set a budget, and track your progress.
Spendee – Understand your finances better with Spendee, the FREE budgeting app that tracks your spending, optimizes your budget, and helps you save money. This user-friendly app with good features for recording income and expenses as well as the ability to plan future budgets. It also lets you set goals and track progress.
Quicken: Quicken is a personal finance software application that can be installed on Windows, Mac or Linux computers and allows users to organize financial information in order for them to make financial decisions.

Learn where to load your Cash App card.

Investment/retirement planning budgeting apps

Investment/retirement planning budgeting apps are becoming more popular with consumers as the retirement age is being pushed back.

These types of apps allow users to keep track of their investments and review performance, ensuring that they’re on track to retire at the desired time.

There are numbeous different investment portfolio management tools, but most are designed for average investors looking to make changes or work towards long-term goals. Many double as budgeting apps also enable tracking expenses alongside investments in order to ensure that you’re on track to reach your goal.

Empower – read my Empower Review
Quicken
Betterment
Wealthfront
Stash

Apps to Help Save Extra Money:

Looking for easy ways to save extra money?? These budgeting apps will do just that.

1. Acorns: Invest Spare Change: This app rounds up any purchase made with a credit card to the nearest dollar and invests it in an exchange traded fund. They have four different investment portfolios from conservative, balanced, growth, and aggressive.

2. Tiller: This app automatically transfers money from any account you connect to it (like your checking or savings) into a fund of your choice every time you make a transaction.

3. Trim – Trim negotiates your cable, internet, phone and medical bills, finds and cancels unwanted subscriptions, can help you lower APRs and bank fees and more.

4. BillShark – Billshark is the easiest way to lower your bills, cancel unwanted subscriptions, and lock in the best rates for insurance.

Which Budgeting App is right for You?

Budgeting apps are becoming more popular as consumers try to make better financial planning decisions.

Budgeting apps help people with the ability to track spending, create budgets, and save money for retirement or other goals.

Budgeting apps must be paid for because they can be used across all devices and have a variety of features that can really help users save time and money.

As you can tell in this post, there are plenty of options to find your favorite budget apps.

Each of these apps can improve money management.

However, you must be able to make the changes necessary to stay within your means. That is up to you. Don’t try it and give up after a month. Stick with it. Show perseverance.

In the end, you will be happy you are stuck with using a good budgeting app.

Apps That Have Shut Down or Changed

These are budgeting app that have been on our list previously. But, when we recently updated the post, realized they are no longer offering the same services.

Mint: Personal Finance & Money – Mint is a free money management and financial tracker app that helps you get ahead and stay ahead. – Mint app shut down in 2024.

Firstly (formerly Honeyfi: Couples Finances) – The first app to help couples team up on everyday and long-term finances.

Opurtun (formerly Digit) – Digit analyzes your spending and automatically saves the perfect amount every day, so you don’t have to think about it.

mvelopes (merged with EveryDollar) – Everyone knows that cash will keep you on budget. Here is a digital option for your cash envelopes. Your first month free is to check out the budgeting system.

Olivia– Whether you identify as someone who is living paycheck to paycheck, or you’d just like to get smarter with your money in general, you’ve come to the right place! I am here to help YOU become the MASTER of your money.

Your Money Wallet – YourMoneyWallet lets you see all your accounts in one place, understand your spending, monitor your everyday spending, and see all your money transactions in a beautiful well crafted design.free

Joy – Money App– Joy is the brand new money app that will change the way you spend and save money to help you find more happiness in your life.

Advent – Budgeting Made Simple – Advent makes budgeting and tracking expenses super easy! With a very minimalistic design, you can easily maneuver around quickly.

Rolling Budget– Rolling Budget is a personal finance tracker that keeps track of your day-to-day expenses, travel, and fuel costs. Track where your money goes, plan your expenses, and create a budget that works for you!

Best Budgeting Apps

There are many apps available to help people manage their budgets.

The best app for you will depend on the type of budget you want to create and how often you want to make changes. All of these apps are mobile-friendly and work across multiple devices. They also offer additional features like budgeting tasks, reminders, and spending plans.

You can find all of these for iPhone or Android.

You can save time and money by using a good budgeting app.

This is your personal finance journey.

The ultimate goal with any budget app is to learn to manage your money. Not have your money manage you.

Now, make sure you are doing these habits to be successful with budgeting.

Which are your favorite budgeting apps?

Keep on Budgeting:

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.

Source: moneybliss.org

Apache is functioning normally

June 3, 2024 by Brett Tams

Investing in art can be a good idea, but there are a number of options and factors to take into account, such as: the type of art investment you might choose (i.e. art funds vs. individual works of art), the art market climate, your familiarity with artists and trends in the art world, and more.

Generally speaking, art is considered an alternative investment. The art market does not move in sync with traditional stock and bond markets, and therefore owning art in some capacity can provide portfolio diversification. But like any alternative asset, investing in art also comes with risks.

The art market is highly illiquid, art itself is not well regulated, collectors’ tastes are fickle — and thus what determines the value of certain works of art can be harder to predict than, say, shares of stock. So while investing in art could be a smart move, it requires careful research and a deep understanding of this asset class.

How Big Is the Art Market?

Most people are familiar with the high-priced sales of some pieces of art. Works by well-known and historically revered artists can sell for millions — as can contemporary works by artists who are increasingly popular. But despite a few big headliners, the art market is fairly small.

According to a 2023 industry report, global art sales increased by a modest 3%, to $67.8 billion in 2022. Sales were more robust in the United States in 2022, with 8% growth to $30.2 billion year over year. The U.S. is the world’s largest art market, with the U.K. and China being second and third largest.

💡 Quick Tip: Because alternative investments tend to perform differently than conventional ones, even under the same market conditions, alts may help diversity your portfolio, mitigate volatility, and provide a hedge against inflation.

Is Art a Good Investment?

Whether art is a good investment to a large degree depends partly on the work of art. For example, just as there are blue-chip stocks, there are blue-chip artworks that typically command higher prices and offer the potential for steady appreciation (although given the volatility of the art market, there are no guarantees).

But investing wisely in art also depends on the investor, and the vehicles they choose. For example, investing in individual art — similar to investing in individual stocks — requires a deep familiarity with that product and its market, as well as understanding the risks involved.

While you can invest in individual works of art, the value of any piece of art depends on its rarity, whether the artist is in demand, the historical and cultural significance of the work, as well as trends and market conditions.

However, these days investors can also choose to invest in art through art-related funds (similar to mutual funds), and fractional shares of art, which is analogous to investing in fractional shares of stock.

It’s also important for would-be investors to understand the role of collectors.

Art Collectors vs. Art Investors

The difference between art collectors and art investors is important to grasp. Most types of asset classes attract investors alone (with some exceptions, e.g. collectibles). Typically you don’t hear about people collecting stocks or mutual funds, for example.

In the case of the art market, however, collectors can play a role in art market trends as well as valuations. While investors, particularly high net-worth investors, may also influence sales, many collectors are long-time participants in the art market with years of familiarity with the ins and outs of many sectors, artists, dealers, galleries, domestic and international art fairs, and more.

Collectors may be steeped in a certain era or style (e.g. medieval religious statuary or Impressionist paintings), and committed to owning works long-term — for decades, or even generations.

By contrast, art investors may aim to acquire works that will gain value in a relatively short period (i.e. within a few years). This is where different types of art investment vehicles can come into play.

Alternative investments,
now for the rest of us.

Start trading funds that include commodities, private credit, real estate, venture capital, and more.

What Makes a Good Art Investment?

Investing in art requires a certain mindset, and doing your due diligence to size up what constitutes the best opportunities for you, depending on your goals. It’s also important to understand some of the newer investment vehicles.

Individual Works

Investing in individual works requires knowledge of the artist, their current status (e.g. are they in demand or have they fallen out of favor?), the relevance or importance of a given work, and a sense of whether it’s overvalued or undervalued.

The risks of choosing individual works include the possibility of buying a fraudulent piece, the cost of owning and maintaining the work (including storage and insurance), and the uncertainty of knowing whether any given work will hold its value.

Buying individual works can also come with added charges, similar to investment fees (e.g. commissions and other costs). And given the fragility of most art, there is also the risk of physical damage or total loss.

Fractional Shares of Art

Owing to the high cost of purchasing and owning blue-chip works of art, it’s possible to buy fractional shares of art. This option is relatively new, but fractional shares of art are available on a growing number of platforms.

There are various systems for buying fractional art shares. One common way it can work: Investors purchase fractional shares of a work by a specific artist. The platform handles the maintenance and storage of the art, which is held for a period of time and then sold, ideally for a profit. If the sale is profitable, investors get a percentage of the gain, net of fees, commensurate with the percentage of the work they own.

The risk of buying fractional shares of art is that, as with any investment, there are no guarantees of a return. In addition, this is a financial strategy — fractional owners never have the pleasure of actually possessing the work.

Art Funds

Similar to traditional mutual funds and ETFs, an art fund is a type of pooled investment fund. But unlike conventional funds, art funds tend to be a long-term proposition. Art funds are structured typically as closed-end funds, but with a twist: investors typically contribute their capital over a period of three to five years, often with no returns for another specified time period (terms vary).

These funds are highly illiquid, and (in addition to the unpredictability of the art market itself) there are substantial risks to locking up your capital for what could be years, for an unspecified return upon redemption.

💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.

Risk Tolerance

Individual investors interested in exploring this type of alternative investment need to consider many factors, especially their stomach for risk. While all investments come with some degree of risk, the spectrum is wide when it comes to art, and there are many unknowns.

Perhaps the biggest factor is the capriciousness of the art world as a whole. For a couple of years, digital art, especially non-fungible tokens (NFTs), spiked in popularity and many people sold digital art at a profit — only to see demand plunge, taking prices along with it.

It’s a cautionary tale. Yet there is always the potential for a rebound, if digital art regains its appeal, or “antique” NFTs become a thing.

Investing in art also includes risk factors specific to owning fragile physical items, as well as the risk of total loss of capital if the investment you choose falls out of favor, or turns out to be a fake — or if a given fund manager makes a bad call.

Recommended: What Every Investor Should Know About Risk

Pros and Cons of Investing in Art

Taking all of the above into consideration, it’s important to weigh the advantages and disadvantages of investing in art.

Advantages

Art offers the potential for substantial returns.

There are many new opportunities for investing in art; would-be investors can consider art funds, fractional shares of art, and more.

Investing in art may offer portfolio diversification.

Some countries may offer tax breaks on art sales.

If you enjoy art and the art world, this type of investing can offer the potential for fun, travel, and aesthetic gratification.

Disadvantages

The art world is volatile and there is no way to know for sure what a given artist or work may be worth now or in years to come.

It’s difficult to authenticate works of art, and the risk of forgery is high.

Investing in art-related funds, stocks, or fractional shares are still relatively new types of instruments, and terms (fees, redemptions, illiquidity) may not be favorable.

Many types of physical artworks can be damaged or destroyed.

The current tax treatment of art gains in the United States is higher than long-term capital gains rates.

Pros	Cons
Potential for gains	Risk of losing money owing to art market volatility
New ways to invest in art; i.e. art funds, fractional shares	Like some alternative investments, art is not heavily regulated by the SEC
May provide portfolio diversification	Highly illiquid and opaque
Some countries offer tax breaks on art sales	Art gains subject to higher taxes than long-term capital gains
Owning art is aesthetically gratifying	Risk of damage and loss

Returns on Art Investments Over Time

Just as the art world is expanding to offer new options to investors, it’s also adopting certain investment world conventions, such as art indices. Now investors can consider the data provided by an index such as the Sotheby Mei Moses Index, which was modeled on the Case-Shiller Index for home prices.

That said, individual artworks are not securities — they are non-fungible and highly illiquid — and as such evaluating the “performance” of specific works or even certain sectors over time is difficult. Even taking into account the evolution of fractional art shares and art funds as investment vehicles, the lack of transparency around pricing (as well as regulation) can make it difficult for investors to make a satisfactory risk-reward assessment.

Unfortunately, this lack of transparency is part of the risk when investing in alternative assets.

The Takeaway

Investing in art offers some advantages, not least of which is the enjoyment of researching and purchasing individual works that fulfill a personal taste or passion. In addition, art is an alternative investment, meaning that it doesn’t move in tandem with traditional markets. As such, it can offer portfolio diversification.

But like many alternative assets, art can be highly volatile and illiquid. As a whole, although art investment opportunities have expanded into art funds and owning fractional shares of artworks, art as an investment is not transparent or well regulated. That said, for the right investor, this asset class may provide unique opportunities.

Ready to expand your portfolio’s growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi’s easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it’s important to consider your portfolio goals and risk tolerance to determine if they’re right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

What is the best art to invest in?

The best art to invest in is art you know well and has a value you feel confident in. That might be an individual piece by a certain artist, or it might be fractional shares in well-known or even famous works. Whatever route you choose, treat it like any other investment: do the necessary research, and understand the potential risks and rewards.

Will the art you choose increase in value?

As with any type of investment there are no guarantees. Some works of art appreciate steadily over time, some enjoy a sudden rise in value if market trends are favorable, while other art you might invest in could rapidly lose value. This is why it’s essential for any investor interested in art to fully understand how these alternative assets might fit into your portfolio, or not.

Photo credit: iStock/South_agency

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

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.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.

SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

SOIN-Q224-1856685-V1

Source: sofi.com

Apache is functioning normally

June 2, 2024 by Brett Tams

If you have a significant amount of money in a bank or brokerage account, you may crave reassurance that your funds would be covered in the rare instance of a financial institution failing. The United States government has a couple of programs in place that help to protect savers and investors in the case of a bank failure. These programs help to ensure overall consumer confidence in the U.S. financial sector.

Two of these programs are run by government corporations known as the FDIC and SIPC. The Federal Deposit Insurance Corporation (FDIC) protects money that is held in a checking, savings, certificate of deposit (CD), or other deposit account at an insured bank. The Securities Investor Protection Corporation (SIPC) protects customers of SIPC-member broker-dealers if the firm fails financially.

While these two insurance programs have a lot of similarities, they also have a few key differences that you’ll want to be aware of.

What Is FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency that was created by an act of Congress passed in 1933. During the Great Depression of the 1930s, many local and regional banks failed. Congress created the FDIC to help ensure that people would not lose their hard-earned money in the case of future bank failures.

The FDIC insures $250,000 per depositor, per insured bank, for each account category (such as single, trust, or joint accounts). Since FDIC insurance first went into effect in 1934, no depositor has lost any insured money that was held in an eligible bank.

While the FDIC offers insurance for deposits held at participating banks, the National Credit Union Administration (NCUA) insures deposits held at credit unions. It’s important to understand that key difference between the FDIC and NCUA.

Also worth noting is that some financial institutions offer programs which can insure excess deposits for more than the $250,000 limit with extended insurance coverage.¹ This is typically accomplished by bank partnerships which ensure that no single financial institution holds more than the $250,000 FDIC limit for a client.

If you want to keep more than $250,000 on deposit, it can be worthwhile to look into these expanded FDIC insurance coverage offers.

What Is SIPC?

In addition to the FDIC and the NCUA, the SIPC is a nonprofit organization that is set up to protect U.S. consumers. The Securities Investor Protection Corporation (SIPC) was started when Congress passed the Securities Investor Protection Act of 1970. The SIPC protects the securities and cash in a brokerage account, up to a total amount of $500,000.

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.

💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, and transfers from one online bank account with SoFi.

SIPC vs FDIC

When comparing the SIPC to the. FDIC, you will learn that they are two different organizations. They share the goal of protecting accounts held in U.S. financial institutions and instilling consumer confidence.

Here’s a look at how the SIPC and FDIC are similar and different:

Securities Investor Protection Corporation (SIPC)	Federal Deposit Insurance Corporation (FDIC)
Protects money invested in brokerage accounts	Protects money invested in bank accounts
Protects the securities and cash in your brokerage account up to $500,000	Protects up to $250,000 per depositor, per ownership category, per bank
Founded in 1970	Founded in 1934
Applies if a brokerage firm becomes insolvent and/or goes bankrupt	Applies when a bank fails

Similarities

The SIPC and FDIC share the same goal — ensuring that money and investments held in U.S. accounts remain in the hands of consumers. One isn’t necessarily better than the other, since they apply to different kinds of financial holdings. No matter where you are holding your money and/or investments, you’ll want to make sure that your investments are insured by either the FDIC, NCUA, or SIPC.

Differences

The biggest difference between the FDIC and the SIPC is when they apply. The FDIC covers deposits held at certain banks. The SIPC applies to investments at brokerage accounts.

Another difference is the amount of coverage. The FDIC protects up to $250,000 in a bank account, while the SIPC covers up to $500,000 in a brokerage account, including up to $250,000 protection for cash in your brokerage account.

Pros and Cons of FDIC vs SIPC

There aren’t really pros and cons when comparing the insurance offered by the FDIC and SIPC. It’s not a matter of, say, SIPC insurance vs. FDIC: They are not competitors. Each organization works in a slightly different way.

In terms of upsides, the FDIC covers deposits held by FDIC-insured banks. That means if you have money in a checking, savings, CD, or other kind of depositor account, held at an insured bank, you would be covered against loss in the very rare instance of the bank failing. The downside, if you want to look at it that way, is that this insurance doesn’t extend to brokerage accounts.

The SIPC covers the value of investments held in a brokerage account. As for positives, the reassurance of knowing your funds are covered is an excellent feature. However, the downsides could be seen as the limits of this coverage: up to $500,000 and only for funds held per SIPC guidelines.

Because they work in different ways, the FDIC and SIPC complement each other to work towards strengthening consumer confidence.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

Is Your Bank Account Insured?

No matter where you keep your money, you’ll want to make sure that the money in your account is insured by a program such as the FDIC or SIPC. Being insured by the FDIC is a component that can be used to rate banks against each other.

It is usually fairly straightforward to find out if your bank is insured by the FDIC. To find out if your bank is FDIC-insured, go to the BankFind Suite on the FDIC website.

It may be more complicated to find out if your brokerage account is held in an account covered by the SIPC. If you cannot find the answer on the broker’s website, contact them to make sure.

Opening a SoFi Savings Account

Are you looking for a new home for your money? See what a SoFi Checking and Savings account can offer.

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

Is SIPC as good as FDIC?

The Securities Investor Protection Corporation (SIPC) and Federal Deposit Insurance Corporation (FDIC) are not direct competitors. They insure investments and deposits at brokerage firms and banks, respectively.

Is it safe to keep more than $500,000 in a brokerage account?

Whether it’s safe to keep that much money in a brokerage account depends on your individual risk tolerance. Just keep in mind that the SIPC will only cover up to $500,000 in a brokerage account, which includes $250,000 in cash in your brokerage account.

What does SIPC not cover?

The SIPC covers what it defines as “securities” — stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds, and certain other investments. SIPC does not protect most commodity futures contracts, foreign exchange trades, investment contracts and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.

Photo credit: iStock/AlexSecret

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

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.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOBK-Q224-1848020-V1

Source: sofi.com

Apache is functioning normally

June 2, 2024 by Brett Tams

As you plan those summer barbecues, pool days or dinners, Discover’s bonus categories for the third quarter of 2024 can be a big help.

From July 1 through Sept. 30, 2024, holders of eligible cards like the Discover it® Cash Back and Discover it® Student Cash Back can earn 5% back at grocery stores and Walmart on up to $1,500 in combined spending for the quarter. (Activation is required; other purchases will earn 1% back.)

Here’s what you need to know to make the most of these spending categories.

Discover bonus rewards categories for 2024
Q1 (Jan. 1–March 31)	Restaurants. Drugstores.
Q2 (April 1–June 30)	Gas stations/EV charging stations. Home improvement stores. Public transit.
Q3 (July 1–Sept. 30)	Grocery stores.
Q4 (Oct. 1–Dec. 31)	TBD (In 2023: Amazon, Target).

A closer look at Discover’s Q3 bonus categories

For the third quarter of 2024, here’s what will qualify:

Grocery stores

Eligible grocery store purchases that earn the bonus rate include those made at supermarkets, meat lockers, bakeries, small grocery stores and grocery delivery services. Purchases that won’t qualify for this rate include those made at Target, convenience stores, wholesale clubs and discount stores.

Walmart

During this quarter, you can also earn the bonus rate on purchases made at Walmart, whether in store or online, at Walmart discount stores, Walmart Supercenter stores, Walmart Neighborhood Market stores, curbside pickup, Walmart+ and Walmart gas stations. Purchases using Walmart Pay with your eligible Discover card will also qualify for the bonus rewards.

Purchases made through an individual merchant or a standalone store within physical Walmart locations might not be eligible, however. Other purchases that won’t qualify include Sam’s Club purchases, purchases made through affiliates of Walmart.com, and purchases made outside the U.S. Terms apply.

Maximizing Discover’s Q3 bonus categories for 2024

You can make the most of the bonus categories above by checking off the items on this list:

Activate the bonus categories by logging into your Discover account.
Use your Discover card whenever you shop at the grocery store or at Walmart in-store or online.
Keep track of the amount spent to know whether you’ve reached the $1,500 spending limit. An automated tracker available when you log into your Discover account can help.

Considering the Discover it® Cash Back?

The Discover it® Cash Back card is ideal if you can keep track of the quarterly changing bonus categories, remember to activate them and pay off your credit card bill in full every month. Otherwise, the card’s interest rate will outweigh the value of its rewards.

The card’s features include:

Annual fee: $0.
APR: 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-28.24% Variable APR.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

Source: nerdwallet.com

Apache is functioning normally

June 2, 2024 by Brett Tams

As you plan those summer barbecues, pool days or dinners, Discover’s bonus categories for the third quarter of 2024 can be a big help.

Here’s what you need to know to make the most of these spending categories.

Discover bonus rewards categories for 2024
Q1 (Jan. 1–March 31)	Restaurants. Drugstores.
Q2 (April 1–June 30)	Gas stations/EV charging stations. Home improvement stores. Public transit.
Q3 (July 1–Sept. 30)	Grocery stores.
Q4 (Oct. 1–Dec. 31)	TBD (In 2023: Amazon, Target).

A closer look at Discover’s Q3 bonus categories

For the third quarter of 2024, here’s what will qualify:

Grocery stores

Walmart

Maximizing Discover’s Q3 bonus categories for 2024

You can make the most of the bonus categories above by checking off the items on this list:

Activate the bonus categories by logging into your Discover account.
Use your Discover card whenever you shop at the grocery store or at Walmart in-store or online.
Keep track of the amount spent to know whether you’ve reached the $1,500 spending limit. An automated tracker available when you log into your Discover account can help.

Considering the Discover it® Cash Back?

The card’s features include:

Annual fee: $0.
APR: 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-28.24% Variable APR.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

Source: nerdwallet.com

Apache is functioning normally

June 1, 2024 by Brett Tams

Welcome to the 30 Day Money Challenge!

Today, you will learn how to make your money work for you. You don’t have to be a millionaire before knowing these things, but it’s important for everyone who wants financial stability.

Remember these keywords: saving and investing? This is where they come into play for long term success.

It’s not too late to make the right financial decisions.

But, finances are complicated and intimidating for most people so it can be hard to get started.

The 30 Day Money Challenge is here to help with that.

This 30 day financial challenge will help you create a strategy that can save, spend less, and make more by the end of this month!

Are you ready to dig into this month-long money challenge?

What is the 30 Day Money Challenge?

A money challenge is a plan for how to make your finances work better.

It can be as simple as spending less or eating out less, or something more complicated like saving up for retirement or buying a house.

During this month’s timeframe, you will dig into all areas of your finances to make sure you are on track to reach your money goals.

If you do not have financial goals, then we will make sure you do at the end of this money challenge.

I’ve seen a lot of spending challenges out there that are basically just a saving money chart telling you how much money to save each day to save $1000 or $500 in one month, but they don’t tell you how to save the money. That is where the rubber meets the road and this challenge will motivate you to improve your money habits.

Overall, you will learn more about your finances than you did previously.

Why a Money Challenge is Important

A 30 day challenge is a great way to get yourself motivated and focused on saving money and improving your money management.

The goal is not enough, you need the why behind it in order to see your savings grow.

This can be as simple as:

– Setting up a direct deposit from your paycheck to an account you control and only spending what’s in that account.

– Spending less on impulse buys.

– Cutting back on luxury items to save money.

– Living more in cash and less in credit card debt.

You can also take knowledge in knowing the number of our readers who have taken the challenge to improve their money management skills.

3 Steps to Start the Money Challenge

The 30 Day Money Challenge is a simple process that starts with 3 steps.

Your reward for participating in the challenge is pretty appealing, but the process can be hard for some.

So, know these steps before you start the challenge.

1. Pick a Time

While there is no good time to start, you need to find a time when you have the highest probability of success.

Starting the money challenge during the holidays will leave you defeated. Maybe starting as a New Year’s Resolution. Or during a quieter time throughout the year.

You need to find the “right” time because you will have to dedicate at least 10-30 minutes per day. However, the longer you put it off, the less likely you are to start.

2. Be Prepared

More than likely, you will be ripping off the band-aid on some old money failures and defeats. This is common.

You have to be mentally prepared to overcome these negative feelings towards money in order to find that breakthrough moment.

3. Accountability

Find someone to keep you accountable during the challenge.

There will be points when you want to accept defeat and run back to your old money ways. It’s great to create a support system for managing money wisely.

If those old money habits didn’t serve you well before, then how will they serve you moving forward.

You need to keep your eye on the prize!

Thirty Days of Money Challenges

A 30-day money challenge is a popular type of personal finance experiment in which participants take a pledge to review their finances and overcome any obstacles that are preventing them from long term financial stability.

The goal is to teach people how quickly they can change the trajectory of their personal finances before they snowball into a serious money problem.

Day 1 – Get Organized

If you don’t have an understanding of how many accounts you have, credit cards you have open, or debt payments that are due, then you must get your personal finances organized.

Start here to learn how to organize personal finances.

Day 2 – Understand your Income

If you do not know how much do I make a year, then you must figure that out first.

It is impossible to manage money if you do not know how much money is coming in.

Also, consider all types of income sources – earned, passive or investment.

Day 3 – Understand your Expenses

Understand where your paycheck is going. When you understand how much of your money is going to things like rent, utilities, and mortgage, you can make better decisions about spending.

This is not the time for “this-is-where-I-hope-my-spending-goes;” this is the true reality of how you spend money.

Day 4 – Pay Yourself First

This is a must for long-term success. Every time you get paid, you need to pay yourself first. Put a percentage of your paycheck into savings each month before anything else is spent on non-essential items.

We suggest starting with at least 5% of your income. Even better, you want to start with 20% of your income.

You must cut your fun spending until you can save money first.

When saving becomes an automatic habit, start investing through high yield accounts like IRAs and 401(K)s.

Day 5 – Automate your Emergency Savings

Set up a transfer to put $50 into your Emergency Fund every time you get paid.

Learn how much you need in your emergency fund. Remember, the goal is never to use your emergency fund, but you always want one – just in case!

Day 6 – Create Money Goals

Figure out what your financial goals are and how much they will cost over time, then come up with a strategy to achieve them.

You need to make a plan to reach your money goals.

If you skip this step, you may be lucky and still reach your goals. But, you can find better prosperity but writing out those money goals and maybe even using a vision board.

Learn how to create smart financial goals.

Day 7 – Budget Time

Crazy! I know. Most people would think that creating a budget would need to be first. But, it isn’t. You need to figure out days 1-6 first before you dig into budgeting.

Begin tracking your expenses on paper or online as soon as possible. Here are the best budgeting apps available.

The goal with the budget is to focus on saving first, then your expenses. you must spend less than you make.

Day 8 – Make More Money

Come up with ways to generate more income. Period. You need to make your money work for you.

You need to learn how to make your income work for you by creating streams of income outside of your primary work or “earned” income.

Theoretically, if multiple streams of revenue exist at your full-time job, you can work fewer hours than necessary.

Ways to Make Money:

Day 9 – Enough with Debt

Debt will hold you back. Period.

You need to recognize that paying off your debt is the best thing you can do for your finances. However, during this 30 day financial challenge, it is not the time to focus on paying off debt.

Calculate the total amount of debt (except mortgage).

Put down getting out of debt as one of your money goals and the timeframe to make it happen.

For now, don’t take on more debt, and make sure you’re paying the minimum on your credit card balance.

Day 10 – Understand Investing

Investing is a way of giving your money the opportunity to work for you. In other words, you are using what you have now in order to make more out of what you have in the future.

This is the first step to earning investment income that will fund your lifestyle.

Typically, most people associate investing in the stock market. Many people invest with their 401ks or IRAs. However, you can invest your personal income as well.

What if you could earn a return on that opportunity cost? For example, what if you invested the $10 in your wallet and it grew to be $20?

Learn how to start investing.

Trade and Travel 2.0

Learn to trade stocks with confidence.

Whether you want to:

Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….

Making $1,000 every.single.day is NOT a pie-in-the-sky goal.

It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…

Day 11 – Control Excess Spending

Every time you spend money, it is an opportunity cost to your future self. You are trading away your future self’s money to buy something today.

Is that what you want?

More than likely, no.

Learn how to drastically cut expenses.

Day 12 – Autopay your Bills

Consider setting up an autopay feature for your bills. It can help you avoid late fees and will have a steadier flow of money coming in.

This will help you to make sure you have the cash flow available to meet your expenses.

Day 13 – Avoid Fees

One of the best ways to save money is by avoiding fees.

If you have a credit card, consider switching to one with no annual fee or an introductory offer that expires after one year.
Check your bank and credit card statements for any fees you may not be aware of.

If there is a fee, call the company and negotiate to have it removed or reduced.

Day 14 – Automate Retirement Contributions

You should automatically make a certain percentage of your salary go to a 401k or other savings account, and the other percentage goes to your checking account for spending money.

This is something your human resources department can help you set up.

Day 15 – Increase your Retirement Contributions

Now, that you have automated your retirement contribution, you want to increase you much your contribution each year until you are maxed out by IRS limits.

Start to increase your retirement contributions by 1%.

Set a five-year goal to fully max your retirement contributions!

Halfway Point!!

You’re halfway through the 30 day money challenge!

Keep up the good work and keep reaching for your goals.

You’ve made it this far, so just imagine what you’ll be able to do in another month of working hard towards saving more money.

Day 16 – Communication

Don’t think money has to be a taboo topic. In fact, you need to be comfortable talking about money.

The key is to be on the same page with key family members about where money should go. This is something that we struggled with our marriage and had to overcome. Thankfully, we did and we made way more progress than previously.

Day 17: Invest in yourself

I know you’re probably tired of hearing about investing in yourself, but it’s important. Investing means putting money into something that will make more money back. You might not think this applies to you, but it really can! You might not have a big budget for investing in stocks or mutual funds right now, so let’s talk about something you do spend money on every day: you.

You only learn by growing.

Day 18 – Start Reading About Personal FInance

This isn’t something that you do once or twice. Make it a goal to read books on money or personal finances each month.

Importantly, make sure you are reading books, regardless of what aspect they look at money. It is never too late to pick up new tricks or ideas.

Plus learning from others’ money stories is powerful.

Day 19 – Free Fun

Participating in only free activities for 30 days, and refusing to spend a single penny, we created a guide to make that happen for you.

101+ Things to Do with No Money

After writing that post, we discovered this is one of the best money saving ideas out there. This guide not only teaches you how to save money but also teaches about where you want to spend money and the importance of living a purposeful life.

Day 20 – Review Insurance

You need to make sure you are properly covered with insurance as well as not paying too much money for your policies.

There are all of the types of insurance you need to review:

This is something you should do once a year.

Day 21 – Waste Less Food

You need to learn to save money by wasting less food.

This doesn’t mean you have to make homemade meals every night of the week! The goal is not to throw food away – that is hard earned cash going right down the trash.

Ways to Save Money on Groceries:

Day 22 – Buy Second Hand

Consider second-hand stores and consignment sales as options for buying used items. Thrift stores are also great to save money on clothes and other household items.

The same is true for buying cars, baby equipment, kids clothes, etc. Plus you protect our world.

Day 23 – Save Money

So, this day is all about saving money and I think that it’s the most important one of them all because if you’re not saving your money, then what are you doing with it? You’re throwing it away.

So today, I want to talk about two different types of saving money – physical and mental. The first one is all about physically saving your money. This is the easiest one because it doesn’t require any effort on your part to do so, but it’s also very important as well.

The second type of saving money is mental saving. This is all about saving your money because you know that something better will come along soon and it gives you hope for the future!

So, I think these two types of savings are both really important.

Day 24 – Give Back

This is the time to give back to others, donate money to charities, and put small contributions into charity.

By hoarding money, you are not learning the principles of helping others just like you have been helped along the way.

Day 25 – Renegoite Interest Rates

Right now, we are not starting to pay off debt. We are looking for ways to save on higher interest payments.

Make calls to renegotiate your interest rates on your debt. If the credit card company says no, then look at a zero interest transfer.

Just no more debt.

Day 26 – Avoid Scarity Mindset

You have to believe in yourself that you are capable of achieving great things and that includes success money.

However, we get caught in this trap of hoarding materialistic items in order to make up for the dollars in our bank account or money that was wasted in buying them.

If you don’t believe how poverty mentality overwhelms your life, then read this story of reclaiming your home with decluttering.

Day 27 – Cut Out What you Don’t Need

If you are not using something, sell it or give it away to someone who can use it more than you do!

You’ll save money and make room in your budget for the things that matter.

We learned a lot when we started to own less stuff.

Day 28 – Prepare for a No Spend Challenge

If you have not been able to keep your spending in check, this is an excellent opportunity for you to try out a no spend challenge once this challenge finishes.

A no spend challenge will help you to review your budget and see what areas of spending need more attention in order to increase savings or pay down debt.

Also, it will help you focus on what area are important to spend money.

Day 29 – Reward Yourself

This is the biggest lesson I learned when paying off debt and trying to increase our savings percentage. I became unable to spend money. I would feel guilty about spending money.

That is not the type of life you want. You must be comfortable spending money (especially if you are a thrifty person).

Pick rewards to match your smart financial goals. Keep motivated with those rewards.

Day 30 – Stay on Track

Proper money management does not end just because the end of the 30 day challenge is over. This is a lifelong skill to master and perfect.

Keep focused by not going over budget limits and being honest about where you really stand financially today as opposed to where you want it to be in the future.

You can stay on track if you have a deep desire to continue.

30 Day Money Saving Challenge

This one is just about saving money. Period.

Each day, you save money to reach your goal.

For many people, the 30 day money saving challenge will make sure you are on track with your goals and objectives.

At the minimum, you should be able to save $500 in 30 days. But, you need to decide what you want to save in a month.

The challenge is open to everyone, so this might be the perfect opportunity for you!

What is the 30 Day Money saving Challenge?

The 30 day money saving challenge is saving a set amount of money during the month.

Keep in mind, not everyone will be able to save this much in 30 days and that’s perfectly okay.

You need to make it work with your budget.

Another option for the 30 Day Money Challenge is committing to give up one or more expenses for the whole month. For instance, pick ten things that cost you money and give them up for 30 days.

How to get started with the 30 day savings challenge

The 30 day savings challenge is a simple but effective way to get started saving money.

You can choose any of these methods:

Take the amount you want to save and divide by 30. That is how much to save daily.
Determine the amount to save and take that immediately when you are paid.
It is easy to go in order or skip around depending on what amount you want to save each day.
Keep change hidden in jars and watch it add up over time, then put the money away every day and see where they rank at the end of the month.
Give up a certain expense and save that money.
Try a modified version of the 100 day challenge.

You can find plenty of money saving challenge printable or PDF in our resource library.

Want more easy money saving challenges?

Are you in for this 30 Day Money Reset Challenge?

This is only a 30 day money challenge because it’s a short period of time to gain a win. That is what you need to keep up the motivation as well as have a strong kickstart to your finances.

In order to build wealth through their finances, these are 30 smart moves that require no time on some days.

Don’t lose momentum. If you miss a day, then jump back into the challenge the next day.

The key to success for 2021 is to take control of your finances.

Photo Credit:
www.rakuten.com

The Shopping Trick to Save Hundreds of Dollars

Personally, I love to shop online from the convenience of my own home and have packages delivered to my house. Plus you can get paid to shop online!! The process is super simple.

Just head here to get an Rakuten/Ebates account, click on the retailer you are shopping online, and then complete your checkout process as normal.

Already a Rakuten / Ebtaes member? Make sure you have the Extension Button for automatic savings!

Photo Credit:
www.asktrim.com

Perfect for the person who hates to hassle with canceling subscriptions and checking spending. Trim is a virtual personal assistant that constantly works to save users money.

Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.

Photo Credit:
ibotta.com

Ibotta can be used for grocery stores, drugstores or online shopping. Once you accrue $20 in your account, you can transfer it to PayPal or venmo or buy gift cards to selected retailers.

Just for signing up, they will give you a bonus when you use use this link. Ibotta rocks at bonus categories and offers. This is where your cash back can really add up fast.

Photo Credit:
checkout51.com

Checkout 51 can be used for grocery stores or drugstores. Their offers are valid each week from Thursday-Wednesday. With new offers released each Thursday.

One of my favorite offers is the “Pick your own offer” – it is a selection of 5 fruits of veggies to redeem for extra cents cash back. Once your account balance is over $20, they will mail you a check.

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.

Source: moneybliss.org

Apache is functioning normally

June 1, 2024 by Brett Tams

Checks seem a pretty mundane bit of banking, but when they say “Do not convert to ACH,” that means the payer doesn’t want the funds transferred electronically. Rather, they are requesting manual processing.

Here, learn more about the implications of these five little words on a check.

ACH System 101

First, understand what ACH is. It stands for Automated Clearing House, which is an electronic system that transfers funds throughout the United States. This network allows individuals and businesses to move money from one financial institution to another, quickly and securely.

Every time you set up automatic bill pay or receive your paycheck by direct deposit or write an eCheck, that’s ACH at work. Apps such as PayPal and Venmo also use the ACH network to send and receive money.

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How Does ACH Work?

ACH transfers are initiated by either making a withdrawal or deposit into an account. You can send money to another account on a one-time basis — such as through an ACH debit to a utilities company or transferring money to a friend for your share of a restaurant meal — or opt into recurring payments. For example, some companies allow you to make automatic payments, such as for subscription services. In either case, you give permission for the receiver to initiate a withdrawal from your account.

You can also get money via an ACH credit. This happens when people receive a direct deposit of their paycheck or Social Security.

Once you or someone else initiates a transfer, the request will be processed first by your financial institution, usually by the next business day. You may be able to expedite the request, as well as schedule a transfer for a future date.

Typically, ACH transfers are faster than other types of transactions, though a potential downside is that it’s only available for transfers within the U.S. (That’s one of the distinctions between an ACH vs. wire transfer, incidentally; the latter has global reach.)

What Is Check Conversion?

Check conversion refers to the process of transforming a check payment into an electronic payment. This usually happens at one of these three points:

• Point of Purchase (POP), meaning when a purchase is made, say, at a store

• Accounts Receivable Conversion (ARC), when a business receives a check by mail and then processes it electronically

• Back Office Conversion (BOC), or when a check is processed electronically after acceptance at, say, the office of a retail location

What Does Conversion to ACH Mean?

ACH conversion describes the fact that a paper check will be converted to a payment that’s processed through the ACH network. In other words, even though a paper check was written and used as payment, it will become an electronic ACH transfer.

Recommended: How to Cash a Check with No Fees

Why Might a Check Be Converted to ACH?

The main reason why a check may be converted is to save time and money when processing payments. Plus, converting a check payment to ACH could be more efficient, as it can help financial institutions detect potential bank fraud earlier, make fewer mistakes, and even result in fewer returned payments. The service of ACH transfers is typically free to consumers.

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Can a Check Be Converted to ACH?

A check can be converted to ACH in many cases (unless it says “do not convert to ACH”) to help it move swiftly and securely; there’s no check to get lost or be forged, for instance.

How the conversion usually happens: When the check gets deposited in a checking account, the payment details are captured from the check. Then, the check itself will be stored securely by the financial institution — unless you have the physical check and are making a mobile deposit. If the check is converted in person, then the original check will be voided and given back to the payer.

If the check was converted for ACH, it will typically appear on a bank statement as a direct payment (or withdrawal) in the same section as ATM withdrawals or other forms of electronic payments. It could also appear as a check payment — some banks include a scanned image of the check or include the payment details.

Recommended: How Much are the Average ATM Fees?

What Does It Mean When a Check Says ‘Do Not Convert to ACH’?

When a check says “do not convert to ACH,” it means that the payer does not want to make a payment electronically. Instead, the payment needs to be processed manually from one financial institution to another through the check collection system.

More specifically, it means the financial institution will contact the other financial institution to request the funds, which are then delivered through a local clearinghouse exchange or other form organization like the Federal Reserve Bank.

It’s rare to receive a check that says this on it, but if you do, there’s not much to be done to alter the payer’s request.

What Is the Benefit to the Drawee if a Check Says ‘Do Not Convert to ACH’?

Checks that say “Do not convert to ACH” may sometimes be printed when a payer is issuing multiple checks; for example, if a class action suit is being paid out. In this case, perhaps the check issuer does not want the much faster electronic processing of their checks. Perhaps it suits them to have a slower payment process.

What Is the Difference Between ACH and a Check?

The difference between ACH and check payments is the network by which they’re processed. ACH payments are processed electronically through the ACH network, whereas non-converted paper checks are processed manually. In many cases, ACH transfers are processed faster than paper checks, since you may have to wait for a check to clear.

The Takeaway

When it comes to getting paid, converting a check to ACH is most likely the fastest, safest way. Unfortunately, there’s not much you can do if the check you receive says “Do not convert to ACH,” however rare they may be. You’ll probably need to deposit it and allow the extra time required for it to become available cash.

Most of us love the conveniences of banking today, and if you want to make a good thing even better, why not check out your options?

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

Can an ACH payment be declined?

Yes, an ACH payment may be declined or rejected for a few reasons, the most common one being that the payer doesn’t have enough funds in their account for the transfer. Other reasons include the account was closed by the time the transfer took place, the funds have been frozen, or the payer has stopped the payment request.

What does “ineligible for conversion” mean on a check?

If a check says “ineligible for conversion,” it means the check can’t be converted to an ACH payment. This may be due to the paper the check was printed on. The payee needs to either cash or deposit the actual check at a local branch.

Why would a bank reject a check?

There are several reasons a bank would reject a check, including:

• You don’t have an account at the bank where you want to cash the check

• You don’t have proper identification to show to the bank

• The amount may be too large for the financial institution to process

• The check is void (for example, the check is old and the payment is no longer valid)

• The signature on the check doesn’t match what the bank has on file

Photo credit: iStock/fizkes

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SOBK-Q224-1902266-V1

Source: sofi.com

Apache is functioning normally

June 1, 2024 by Brett Tams

Saving money can be daunting. But what if you could make it seem less like a chore and more like a game? That’s the idea behind TikTok’s viral 100 Envelope Challenge. With this popular money-saving hack, you set aside a predetermined dollar amount in different envelopes each day for 100 days. By the end of the challenge, you’ll have saved over $5,000.

One of the appeals of the 100 Envelope Challenge is that you visually see your progress as you fill up each envelope, which can make the process of saving more tangible and fun. And like many savings challenges, this money game can help you save a sizable sum in a short period of time.

That said, the 100 Envelope Challenge may not be realistic for everyone. Here’s a closer look at how it works, its pros and cons, plus some other fun saving strategies to consider.

What Is the 100 Envelope Challenge?

The 100 Envelope Challenge, also known as the 100-Day Money Challenge, is a savings technique that involves setting aside a specific amount of money each day for 100 days. The goal is to accumulate $5,050 in just over three months.

The concept is simple: You start with 100 envelopes and number them from 1 to 100. On day 1 of the challenge, you put $1 into envelope #1. On day 2, you put $2 into envelope #2. On day 3, you put $3 in envelope #3. You continue this pattern, increasing the amount by $1 each day until you reach the 100th day, when you deposit $100.

There are also variations on the game. For example, instead of stuffing envelopes in chronological order, you can shuffle the envelopes, put them in a bucket or basket, and then randomly pick one each day. This allows you to alternate between low and high cash amounts throughout the challenge.

If your budget is tight, and saving $5,050 in 100 days isn’t feasible, you can do the 100 Envelope Challenge over 100 weeks, rather than 100 days. You’ll still get to $5,050 — it will just take longer.

And if you’re not a fan of cash, you can do the challenge digitally. Simply download a free “100 Envelope Challenge” printable (widely available online). You then check off the “envelopes” in order (or use an online number generator to pick a random number each day). Once you’ve selected your envelope number, you transfer that amount to your savings account. If you open a high-yield savings account, you’ll have the added advantage of earning competitive interest on your cash.

How to Do The 100 Envelope Challenge

Here’s a step-by-step guide to the original 100 Envelope Challenge.

1. Assemble Your Supplies

You’ll need 100 plain envelopes and a marker or pen to set up the challenge. If you don’t normally carry cash, you’ll also want to hit the ATM and withdraw some money to cover you for the first week. You’ll likely make multiple trips as you make your way through the challenge — and your paychecks get deposited.

Recommended: How to Avoid ATM Fees

2. Prep Your Envelopes

Label each envelope with number, starting with #1 and ending with #100. You’ll also want to find a safe place to keep your envelopes, such as a box, drawer, or safe. The idea is to keep them accessible but still secure.

3. Start Stuffing

Each day, pick out an envelope in chronological order (or, as an alternative, you can choose randomly) and place the corresponding amount of cash inside.

4. Stay Consistent

The key to any money-saving challenge is consistency, so do your best to stick to the rules as closely as you can. If you miss a few days, don’t give up — simply dust yourself off and get back on track. Or consider switching to a weekly or biweekly schedule to make the challenge more manageable.

5. Put Your Savings to Good Use

When you reach the finish line, it’s time to put your envelope cash to good use. For example, you might use your $5,050 to start your emergency fund (if you don’t already have one), pay off credit card debt, or fund something fun like a vacation. Or you might use the money to get started on a larger, long-term goal, like a home down payment, kid’s college fund, or retirement savings.

How Much Money Is Involved in the 100 Envelope Challenge?

By the end of the 100 Envelope Challenge, you will have saved a total of $5,050. You get to this amount by progressively increasing your daily (or, if you prefer, biweekly or weekly) deposit, starting with $1 and ending with $100. While the amounts may seem small at first, they add up over time, demonstrating the power of consistent saving.

Recommended: 15 Creative Ways to Save Money

Pros and Cons of the 100 Envelope Challenge

The 100 Envelope Challenge comes with both pros and cons. Here are some to consider before you decide to jump in on the trend.

Pros of the 100 Envelope Challenge

• Easy to start: You don’t need to comb through bank statements and set up spreadsheets to start this savings plan. All you need to get going are envelopes and some cash.

• Visual progress: The envelopes provide a visual representation of your progress. Watching them stack up can motivate you to keep going.

• Builds discipline: The challenge encourages regular saving habits, helping to build discipline and financial responsibility.

• Flexible: You can adjust the challenge to fit your budget, preferences, and savings goals.

Cons of the 100 Envelope Challenge

• Cash-based: The default design relies on using cash, which may not be convenient for everyone.

• Risk of loss: Keeping cash in envelopes can be risky, since they can potentially get lost or stolen.

• It’s not all fun and games: Even though it’s a game, you’ll likely need to cut back on spending (and, yes, fun) to come up with the cash you need to stick with the program, especially near the end, when you’re stuffing large sums every day.

• Not realistic for everyone: If your monthly essential expenses are already close to your monthly income, you might find it difficult to stick with a 100-day Envelope challenge.

Alternatives to the 100 Envelope Challenge

While the 100 Envelope Challenge is a popular savings method, it may not be the right approach for everyone. Here are some alternatives to consider.

• The 30-Day Savings Challenge: Here, you start with just 30 envelopes, numbered 1 through 30. Each day, you’ll save the amount indicated on the envelope you choose. You could go in order or shuffle the envelopes and randomly select one. At the end, you’ll have saved $465.

• The Spare Change Challenge: This involves saving the spare change from your everyday transactions. You can do it manually, by dropping your spare change into a jar each day and, once it’s filled, bringing it to the bank. Or you can do it digitally, using an app that automatically rounds up your purchases and transfers that money into savings. Either way, you’ll accumulate savings without much effort

• No-Spend Challenge: In a no-spend challenge, you commit to not spending money on non-essential items for a set period of time, such as a week or a month. This can help you identify and eliminate unnecessary expenses, allowing you to save more money.

• Savings Percentage Challenge: In this challenge, you commit to saving a specific percentage of your income each month, such as 10% or 20%. To make it easy, you can set up an automatic transfer from checking to savings for this amount for the same day each month (ideally right after you get paid). This can help you save consistently and build your savings over time.

Recommended: 52 Week Savings Challenge (2024 Edition)

The Takeaway

The 100 Envelope Challenge is a simple yet effective way to save money and build financial discipline. By following the steps and sticking with the program, you can reach your savings goal and have a tangible reminder of your progress along the way.

If socking away $5,050 in a little over three months feels too challenging, however, you might want to try one of the many other ways to gamify saving. The best approach to boosting the balance in your savings account is the one you’ll stick with.

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

Can I save $5,000 in 3 months with 100 envelopes?

Yes, it’s possible to save around $5,000 in three months with the 100 Envelope Challenge. The challenge is designed to be completed over 100 days, which is a little over three months.

How it works: You gather 100 envelopes and number them from 1 to 100. Each day you fill up one envelope with the amount of cash to match the number on the envelope.You can fill up the envelopes in order or pick them at random. After you’ve filled up all the envelopes, you’ll have a total of $5,050 saved.

How long does it take to complete the 100 envelope challenge?

The 100 Envelope Challenge is designed to be completed over 100 days. Each day, you deposit a specific amount of money into an envelope, starting with $1 on day #1, and increasing by $1 each day until you reach $100 on day #100. By then, you’ll have saved $5,050.

You can also choose to do the 100 Envelope Challenge over 100 weeks, filling each envelope according to the week number. In this version, you’ll save $5,050 in a little less than two years.

What are other money saving challenges besides the 100 envelope challenge?

There are several other money-saving challenges that you can try besides the 100 Envelope Challenge. Some popular alternatives include:

• 30-day Savings Challenge Here, you start with 30 envelopes, numbered 1 through 30. Each day, you put cash into an envelope, basing the amount on the number written on the envelope you choose. At the end, you’ll have saved $465.

• No-Spend Challenge With this approach, you commit to not spending any money on non-essentials for a set time period, say a week or a month. This can boost your bank account and highlight how much you spend on unnecessary purchases.

• Savings Percentage Challenge In this challenge, you commit to saving a specific percentage of your income each month, such as 10% or 20%. If you set up an automatic transfer, you can build your savings without even thinking about it.

Photo credit: iStock/solidcolours

SOBK-Q224-1885031-V1

Source: sofi.com

Apache is functioning normally

May 31, 2024 by Brett Tams

The rule of thumb has been that your rent should account for no more than 30% of your gross income, but that percentage isn’t right for everyone. Figuring out your “magic number” can require a little thought.

Individual circumstances matter: Maybe you have a heavy monthly student loan payment while your best friend has none. That means they can likely afford a higher rent than you can at the moment. Also, economic and social forces are shaping how big a bite rent takes out of a paycheck. According to the most recent U.S. Census Bureau data, almost one-third of Americans are spending more than 30% of their income on housing costs, an increase of almost 5 million households vs. three years earlier. That 30% just may not be realistic anymore.

Keep reading for detailed information on how much to spend on rent and how to budget for it.

How Much You Should Spend Depends on Your Situation

Whether you rent or own, housing is typically the largest expense the average U.S. consumer must pay for every month.

Determining how much you can afford is really a matter of monthly budgeting and striking a balance. You can look at your take-home pay and then consider how much you are spending on all of your monthly expenses.

You’ll want to account for the necessities, like housing, utilities, health care, debt payments, food, and clothing, as well as some discretionary expenses, such as entertainment and travel. Ideally, you will also be saving and have some wiggle room when paying your bills to cover unexpected expenses that can crop up.

As noted above, each person’s situation will be unique. One person might have a high salary but steep debt payments (student and car loans and a credit card balance to contend with). Another might earn less but be debt-free and therefore able to allocate more toward rent.

Where and how you live also makes a difference. In America’s biggest cities, it’s common for renters to pay a larger share of their income for housing. For example, one recent Moody’s Analytics report found that 57% of those in the New York metro area pay more than 30% of their income toward rent and 36.6% of those in Miami are in the same (very pricey) boat. When compared to the person who lives in, say, a small city in the Midwest or South, there’s likely a major price gap.

💡 Quick Tip: Did you know online banking can help you get paid sooner? Feel the magic of payday up to two days earlier when you set up direct deposit with SoFi.

Figuring Out How Much You Should Spend on Rent

There are several ways to come up with solid guidelines for how much to pay in rent based on your particular situation.

Use a Budgeting Rule

You’ve already learned about the rule of thumb — one that’s been around for decades — which puts the ideal housing costs at 30% of your after-tax income, no matter how much you earn.

That rather broad guideline dates back to the Brooke Amendment, which capped public housing rents at 25% of an individual’s income in 1969. Congress raised the cap to 30% in 1981, and eventually it became the go-to guide for determining “cost burden” — the amount of income a family could spend and still have enough left for other expenses — even those who aren’t in low-income households.

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Another perhaps more useful approach is the 50/30/20 budget method, which was made popular by Sen. Elizabeth Warren’s book All Your Worth: The Ultimate Lifetime Money Plan.

The 50/30/20 budgeting method suggests dividing your after-tax income into three main categories, putting 50% toward needs (essential costs like housing, transportation, groceries, utilities, etc.), 30% toward wants, and 20% toward savings.

Following those guidelines, your rent would qualify as a need. But it remains up to you to decide how much of that 50% you want to — or feel you have to — spend on housing. If you live in a major city or tech hub, your rent may be high enough that you have to make adjustments to other essentials in your budget and/or borrow from other categories (say, cutting back on those wants, such as dinners out).

Factor in Costs

Another way to look at your rent budget is to remember that your housing costs are more than just your monthly payment to the landlord. If you only do your financial projections using that single expense, you could wind up with a too tight budget.

It can be valuable to consider all the facets of your rent: There may be a security deposit, moving costs if you are heading to a new place, utilities like electricity and wifi, as well as the cost of furniture if you are a first-time renter. Remember to add in any parking costs related to a rental, as well as renter’s insurance.

Develop a budget that acknowledges these expenses. Will you have to dip into savings for that security deposit? Will some expenses have to go on your credit card? Making these calculations can give you a better bead on your housing costs and may lead you to a new and improved budget.

Look at Other Ways to Save

There are other moves you can make to free up funds for rent if your monthly costs are running high. A few ideas:

• Consider getting a roommate. That can cut your housing costs dramatically and can be a good option if you feel you are living paycheck to paycheck.

• Look for less expensive locations. These may just be a few blocks or a zip code away from your ideal area, but they can make a major difference in your cost of living. For instance, if you can live 20 minutes further away from your workplace, you might reap significant savings on your rent.

• Check with providers about monthly charges and interest rates. Sometimes, you may get lucky and find that your wireless provider can lower your bill or your credit card can take your annual percentage rate, or APR, down a notch.

• Look for other ways to economize on non-rent expenses. Join a warehouse club and split the bounty with a friend or two to save on food costs. Minimize the number of streaming services you have. Cut back on rideshares and take public transportation; check out free music and other cultural offerings in your town.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

The Takeaway

One common guideline says that 30% of your income (before taxes) can be allotted to rent. But everyone’s financial situation is different. Some people live in cities that are pricey; other people have student and car loans that must be paid. By using budget guidelines, you can determine the right figure for your circumstances.

Having the right banking partner may also help you budget better.

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FAQ

Is 30% on rent unrealistic? Is it too much?

Spending 30% of your gross income is a popular guideline, but only you can determine if it works for you. For some people, 30% will be too much, given their other expenses. For others, such as those in major cities, 30% may be a desirably low number.

How much of my salary should I spend on rent?

The usual guideline is to spend no more than 30% of your pretax salary on rent, but some people may find that they must spend more than that. Currently, about one third of all renters spend more than that figure.

Am I overspending on rent?

Some ways to tell that you are overspending on rent would be if you are living paycheck to paycheck, if you are not able to pay down your debts, and if you are not able to save money. If you are in this situation, it can be wise to take a holistic look at your budget, including rent, and see where you can find a better balance, which might include lowering your rent.

Photo credit: iStock/Jacob Wackerhausen

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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Source: sofi.com

Apache is functioning normally

May 31, 2024 by Brett Tams

It’s hard to believe Amazon.com started back in July 1995 as an online retailer that sold books only. Almost 30 years later, it’s likely the first place you look when you get the idea to buy anything.

Retailers like Walmart, Best Buy and Target can be quite competitive with Amazon. Still, with the number of Amazon Prime members in the U.S. at 180 million, according to an estimate by Consumer Intelligence Research Partners in March, dependence on Amazon runs deep. If you shop there, lead with needs over wants to save money where it counts. Here’s a short list of the best things to buy (and a couple to skip) on Amazon.

Before you build a budget

NerdWallet breaks down your spending and shows you ways to save.

Buy: Personal care items you can put on autopilot

Product purchases new parents can knock out at Amazon include baby wipes and diapers. Items like these are competitively priced on Amazon, especially when using “Subscribe & Save,” said Kallie Branciforte, a blogger and YouTuber in Connecticut, in an email.

“I am always surprised by how many people don’t take advantage of ‘Subscribe & Save,’” she said. “It’s the easiest way to save on the stuff you use all the time.”

When you subscribe to a product, you can set a schedule that aligns with when you’ll run out. Branciforte, who reaches millions of viewers with her “That Practical Mom” YouTube channel, lets Amazon replenish vitamins, diaper cream, her kids’ body wash and more to make life easier, and often cheaper.

Try subscribing to unique essentials, like nasal strips that let you breathe freely at night, or electric toothbrush heads to make healthy living habitual. Buying items like these on Amazon is more about selection and convenience than price.

As an incentive, Amazon offers up to 15% off when you receive five or more eligible products in one automatic delivery to the same address. “It’s such a simple way to save on things you’re already buying, completely on autopilot,” said Branciforte.

Buy: Pet food and litter

Putting pet food on auto-order is another convenience play for Prime members. Nobody likes scanning 25 tiny cans of Fancy Feast at the grocery store self-checkout lane. You can save the hassle and try to beat the per-can price by ordering the 30-pack on Amazon.

You can save your back by getting big bags of dog food or a 38-pound box of cat litter delivered.

Skip: Clothes you want to fit well and feel comfortable

Clothing can be hard to get right on Amazon, says Trae Bodge, the shopping expert at truetrae.com.

Bodge bought a dress on Amazon last year and loves the look, but says it’s scratchy inside. She prefers a store like Target for affordable pieces she can feel first.

When it comes to jeans and sneakers, you might be able to do better by buying from the source. Joining the Levi’s rewards program, for example, gets you free shipping and returns on Levi.com. “What you’ll find is that the style selection is broader, the size selection is broader,” says Bodge.

Nike is another brand that incentivizes customers to shop on its site. Members get free shipping on orders $50 or more, and shoes and apparel at Nike.com regularly go on sale.

Buy: Batteries, cables and phone cases

Back to the essentials, the Amazon Basics brand of batteries is an exceptional deal. At $12.52 for an 8-pack of 9-volt batteries (at the time of writing), you can add it and a pack of AA and AAAs to your cart the next time you checkout. Compare that with the 8-pack of Duracell 9-volt batteries we spotted at the Home Depot for $29.05.

Make Amazon your first stop after you buy a new or used iPhone or Android too. Apple’s $49 silicone case is highway robbery when you compare it with cases on Amazon that look, feel and protect the same for under $15. Amazon is also the place for power adapters, cables and wireless charging pads at prices that are cheaper than at Apple.

Buy: Amazon bestsellers

A helpful hack Branciforte shares in one of her YouTube videos is to use Amazon’s “Best Sellers” lists to narrow down searches.

It’s a little out of the way, but you get there by navigating to the top left of the desktop site and clicking the three bars to open the menu. Select “Best Sellers,” and from there, you can dive down by department to find popular buys in specific product categories.

Let’s say, for example, you’re looking for a shower head with better water pressure than the one you have. Rather than roll the dice on something from Home Depot or Lowe’s, you can look up bestsellers in the bath section on Amazon. Scroll down to the first or second one, likely the AquaCare HighPressure 8-mode handheld shower head for around $25, then buy it. This paragraph isn’t sponsored, but this Nerdy writer can attest to the power of this particular model.

Skip: Large furniture pieces that can be painful to return

Bodge avoids buying larger items at Amazon that you have to assemble. The perceived burden of sending it back could compel you to keep something you don’t want. And even if you do like it, the cardboard and other packing material that comes with a coffee table can be a royal pain in the trash.

Now that it’s normal to frequent stores again, it can save you time and strife to pick something out and buy it in person. You can also save by buying used. Thrift stores, antique shops and Facebook Marketplace are great places to score cheap furniture pieces from yesteryear that are still in style (and probably better made).

Advice: Read reviews and check price history before buying

Whatever you buy from Amazon, it’s important to read the reviews and it’s better when there are plenty of them, said Branciforte. She tends to be leery of items with few ratings unless the category is very niche.

“I’d rather buy something with 4.3 stars and 1,000+ reviews than 4.8 stars and 15 reviews because I know the first has been on the site longer, making it more trustworthy and valid,” she said.

Given that other retailers are working hard to outprice Amazon, Bodge says it pays to check the price history and look around before buying. Shopping browser extensions like PayPal Honey and the Camelizer make light work of making sure you aren’t overpaying. And it’s easy to do a quick Google search for any product.

With Prime Day in July, better deals could be on the horizon. “I think it can be worthwhile to wait,” said Branciforte.

You can still shop, though. Just put it in your cart and select “save for later.”

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Source: nerdwallet.com

What is a Budgeting App?

Quick Answer

What to Look for in Budgeting Apps

1. Ease of use

2. Budgeting Capabilities

3. Saves Time

4. Focus on Financial Goals

5. Synchronization

6. Price

7. App ratings

8. Security

9. Additional Features

Good Budgeting Apps will Help, But First – You Must

1. Uncover your Money Situation

2. Budgeting Apps Won’t Change Habits

3. Still Need Paper & Pen

Full List of Budgeting Apps with Free Trial

Making Your Budget Work for You:

Full List of Free Budgeting Apps

Budgeting Resources:

Full List of Paid Budgeting Apps

Budgeting Apps Off the Cloud:

Expense-tracking budgeting apps

Investment/retirement planning budgeting apps

Apps to Help Save Extra Money:

Which Budgeting App is right for You?

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Best Budgeting Apps

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Thirty Days of Money Challenges

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