Short for “you need a budget,” YNAB is a budgeting app that uses the zero-based budgeting system to help you make a plan for every dollar of your monthly income. The budgeting process is involved, but YNAB’s website offers articles and videos to help users get with the program.
YNAB is a popular app with thousands of reviews and high user ratings (4.8 on the App Store and 4.7 on Google Play). The r/ynab subreddit has 193,000 members. We downloaded and tested the iOS app and used the web-based version of YNAB to find out how it works and who could benefit from it.
What is YNAB?
More than an app, YNAB is a hands-on money management method based on the following four rules:
Give every dollar a job. This is zero-based budgeting in a nutshell. You make a plan for how you’re going to use each dollar of your income. An old-school way to do this is to put cash in envelopes marked for specific expenses.
Embrace your true expenses. The idea is to take larger, less frequent expenses (like an upcoming vacation) and break them into smaller chunks so you can budget for them each month.
Roll with the punches. This rule encourages flexibility; if you’re struggling to pay a bill one month, you can look for other areas to pull back.
Age your money. This rule emphasizes watching your spending so you can build savings and increase the time between when you earn money and when you spend it.
It’s hard to argue with the philosophy. These are sound rules that promote better financial habits.
Before you build a budget
NerdWallet breaks down your spending and shows you ways to save.
How much does YNAB cost?
YNAB is a paid budgeting app with no free version, although new users can start with a free trial for 34 days. After that, it costs $14.99 per month or $109 per year. College students get YNAB free for a year.
YNAB may be worth the cost if it helps you spend less and save more money over time.
How does YNAB work?
YNAB is not a set-it-and-forget-it budgeting app. Rather, it encourages you to play an active role in managing your money by defining budgeting categories, allocating money to those categories and then closely monitoring transactions as they occur.
Define expense categories
Initial setup is the most tedious part, but YNAB asks a few questions up front — about debt and what you like to spend money on — to help you define spending categories. Think of these spending categories as line items in a budgeting spreadsheet (like rent, groceries and meals out), but with a fancier design.
It’s important to include every spending category you can think of in your YNAB budget, and you may need to consult bill receipts, credit card transactions and bank statements at first. Don’t forget to add categories for debt payments, saving and investing if applicable.
🤓Nerdy Tip
Do yourself a favor and use YNAB’s desktop site on a laptop to set up your budget. The larger layout makes it easy to be thorough when defining and organizing spending categories.
Complete the setup process by setting spending targets for recurring expenses — like a monthly rent payment that remains relatively constant at $1,500 per month — and add your current bank balance. You can connect your bank or add the balance manually.
Fund expenses (only with money you have)
YNAB wants you to be intentional and honest with yourself about your money, which means only assigning money you have to your budgeting categories. Your bank balance displays at the top of the app and goes down as you allocate funds to each expense category.
YNAB doesn’t restrict you from funding categories with money not yet there (for example, the second paycheck you know is coming later in the month), but you’ll see a negative balance in bright red that shows you’ve assigned more than you have. Here’s how one user put it on a r/YNAB Reddit thread:
“Imagine you have actual cash and you’re trying to put it in envelopes. The red bubble is there because you’re trying to put cash you don’t have yet in the envelopes,” wrote u/HLef in response to a question from a YNAB newbie who was seeing red.
Record and categorize transactions
Funding your expense categories is the planning part of YNAB. Recording transactions is how you monitor actual spending. The hands-on nature of YNAB means you’ll need to record and categorize transactions for a real-time look at how actual spending aligns with how much you’ve allocated to each category. You can manually enter every purchase yourself, or link supported bank and credit card accounts within the app to make importing transactions more automatic.
YNAB is likely to work best when you’re faithful about funding categories and recording transactions in the app.
What are the pros and cons of YNAB?
The big benefit of YNAB — its super hands-on approach that encourages saving — may be a drawback that keeps others away. Also, it costs money.
Pros
YNAB is a sound money management philosophy within an app.
The app is well-designed and also accessible on desktop.
There are lots of resources available to help you learn the YNAB way.
Cons
This money management method is really involved, which may make it hard to stick with it.
It’s pricey and there is no free version; at $14.99 per month, you’ll spend nearly $900 in five years (or $545 at $109 per year).
What are some YNAB alternatives?
Budgeting apps are all the rage, and there’s no shortage of options to choose from in 2024.
EveryDollar is an app (like YNAB) that makes our best budget apps list and offers a zero-based budgeting framework. Some users may find it simpler to manage than YNAB. EveryDollar has a free and paid version.
PocketGuard is an alternative that’s big on simplifying the budgeting process. Essentially, you can link your bank accounts, credit cards, loans and investments, plus use the app to track net worth and monitor spending. PocketGuard also has a free and paid version.
Who is YNAB for?
YNAB may be for you if you’re serious about optimizing your finances and have the discipline to stick with it. To be effective and get your money’s worth, you’ll need to be in the app adjusting your categories, forecasting where your funds will go and recording transactions on a regular basis. If you can do that, you’ll probably be better with money for it.
Methodology
We chose to review this app because of its popularity and high ratings in both major app stores. We signed up for the free trial and conducted hands-on testing using both the desktop and mobile app versions of YNAB to understand the budgeting process and explore key features.
Before you build a budget
NerdWallet breaks down your spending and shows you ways to save.
Do you want to learn how to start a travel blog? Starting a travel blog can be a fun journey that combines your love for travel and writing. You have the chance to share your adventures, tips, and personal stories with a wide audience. Starting a blog changed my life. When I began Making Sense…
Do you want to learn how to start a travel blog?
Starting a travel blog can be a fun journey that combines your love for travel and writing. You have the chance to share your adventures, tips, and personal stories with a wide audience.
Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to financial freedom and the ability to work from anywhere.
For nearly a decade, I’ve traveled full-time – by RV, sailboat, and plane – and it’s been an incredible way to live. Along the way, I’ve shared my experiences, travel tips, and stories, and it’s allowed me to connect with fellow travelers from all over the world.
Whether you want to turn it into a business, a career, or just a fun hobby, a travel blog lets you connect with other travelers and inspire them to explore new places.
Creating a travel blog doesn’t need to be expensive. With some basic steps, you can set up your blog and start sharing your travel experiences in no time. This guide will help you understand what you need to get started, from choosing a domain name to setting up your website and reaching your first readers.
Quick note: I have a free How To Start A Blog FREE Course you can click here to join. Join over 80,000 people who have already taken the course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
My background with blogging
Over a decade ago, I started my blog, Making Sense of Cents, without much planning. I stumbled upon an article about a blogger and thought it would be fun to share details about my own life. At first, it was just a hobby with no real expectations.
I didn’t even realize you could make money from blogging back then. But around six months in, a blogger friend introduced me to my first advertiser, and I earned $100. That’s when I really started to see the potential.
Since then, my blog has grown far beyond anything I could’ve imagined, and I’ve earned more than $5,000,000 over the years. Blogging completely changed my life, giving me the freedom to work from anywhere.
What kept me going was my genuine love for everything related to blogging but also my love for travel. That passion made it easy to dedicate time and effort to grow the blog into what it is today, because I love running an online business that allows me to travel whenever and wherever I want.
Now, I’m excited to help you start your own blog and find success too.
What is a travel blog?
A travel blog is a website where someone shares their travel experiences, tips, and advice. The person who writes it, called a travel blogger, posts about the places they’ve been, activities they’ve tried, and things they’ve learned.
Many travel bloggers also give recommendations for places to stay, eat, and things to do. It’s a way to inspire and help others plan their own trips.
Travel blogs can focus on topics like budget travel, luxury trips, family vacations, solo adventures, and so much more.
Some examples of topics that a travel blog may cover include:
Destination guides – Detailed information on must-see attractions, hidden gems, and local tips for specific cities, countries, or regions
Travel itineraries – Pre-planned routes for weekend getaways, road trips, or long-term travel, outlining where to go and what to see
Local travel tips – Yes, you don’t need to travel by plane in order to be a travel blogger! You can write articles on things to do in your own town.
Budget travel tips – How to travel affordably, including finding cheap flights, budget accommodations, and saving money on food and activities
Solo travel – Tips and advice for solo travelers, including safety, making friends on the road, and building confidence while traveling alone
Family travel – Tips for traveling with children, including family-friendly destinations, packing lists, and keeping kids entertained (such as listing the top travel toys)
Adventure travel – Guides on activities like hiking, diving, surfing, and more, plus how to plan an adventure-focused trip
Cultural experiences – How to engage with local cultures, learn about traditions, and have authentic travel experiences
Travel gear reviews – Recommendations and reviews for travel gear like backpacks, luggage, cameras, and more
Traveling sustainably – How to reduce your environmental impact while traveling, from eco-friendly accommodations to responsible tourism practices
Travel photography tips – Advice on taking beautiful travel photos, including photography tips, gear recommendations, and photo spots
You can pick one or more of these topics to focus on. When you stick to one or two areas, it does help you become more known as an expert in that field, though.
Recommended reading: What Is A Blog, How Do Blogs Make Money, & More
Who can start a travel blog?
Anyone with a passion for travel can start a travel blog!
You don’t need to be a professional writer or photographer. You also don’t need to be a full-time traveler.
Starting a travel blog is a great way to document your adventures and connect with others. Whether you’re traveling full-time or just on weekends, your travel blog can become a helpful resource for other travelers.
Why should you start a travel blog?
Starting a travel blog has many benefits.
It lets you share your adventures with friends, family, and a worldwide audience.
You can also make money from your blog. If your blog gets popular, you can earn through ads, sponsored posts, or affiliate marketing.
Blogging can help you connect with other travelers. You may meet people who share your interests. This can lead to friendships and collaborations. I have met so many amazing people through my blog, which has been so nice over the years!
Having a travel blog is like having a digital scrapbook because you can look back and remember all of your trips, which I think is absolutely amazing. A travel blog kind of “forces” you to write down your memories and take pictures.
Starting a travel blog can be a fun and rewarding way to combine your love for travel with new skills and opportunities.
How To Start a Travel Blog
Below is how to start a travel blog and make money, step by step!
1. Choose a travel niche
Choosing a niche is the first step in starting a successful travel blog. A niche is a specific topic or focus area for your blog. Picking the right niche helps you stand out and attract readers who are interested in that topic.
Think about what you love most about travel. Do you enjoy food, adventure, or culture? Your niche could be anything from luxury travel to budget trips, or even solo adventures.
Another great idea is to think about who you want to help with your blog. Are you writing for families, couples, or solo travelers?
It’s also smart to see what’s trending. Wildlife travel, romantic getaways, and travel for digital nomads are popular niches right now. Research what’s trending and pick something that excites you.
Once you have your niche, you can create content that matches what your readers are looking for. This way, you make sure your blog is both fun to read and useful.
I recommend starting a self-hosted WordPress blog through Bluehost.
2. Start a self-hosted WordPress blog
To start a travel blog, you’ll need a blogging platform. WordPress is my favorite choice, and it’s what I use for my blog.
WordPress is where you create and manage your blog posts. It’s like the main hub for your blog. You can log in, write new posts, add pictures or links, and publish them for your readers. It’s a simple tool that makes running your blog easy. Plus, one of the best things about WordPress is that you don’t need to know how to code. It’s user-friendly and has lots of ways to customize your blog.
Here are the steps to start a self-hosted WordPress blog:
Get a web hosting service. A popular choice for new bloggers is Bluehost (you can start your own blog for as low as $1.99 per month).
Install WordPress. Most web hosts have a one-click installation to make it as painless as possible.
You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions included here if you want more detail and/or want to see screenshots of the exact things you should click on.
Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name!
3. Pick a travel blog name
Deciding on a travel blog name is a big step. You want it to be fun and easy to remember. It’s also good to make it tell what your blog is about.
Here are some more tips:
Think about what makes your travels special. Are you an adventurer, a foodie, or a luxury traveler? Use that in your name.
Using “.com” is the best choice. It’s what most people type first.
Avoid names that are hard to spell or have numbers in them. Simple is best. You don’t want people to get confused or forget your name.
Before you decide, check if the name is available on social media. You’ll want the same name on Facebook, Pinterest, Twitter, Instagram, and other sites.
Take your time and have fun with it. Your blog name is the first thing people see, so make it catchy and memorable.
Don’t forget, you can get your domain name (your blog name) for free when you sign up for Bluehost! Click here to claim your free domain name.
4. Design your blog layout
With a travel blog, your site design is very important.
Your travel blog’s design and layout are important because readers like to see a clean and easy-to-navigate blog design. It makes it easier for them to find what they are looking for, and this helps to keep them on your site longer.
Plus, we’ve all seen a bad site design in the past, and when that happens, usually you don’t stay reading that blog for very long (right?!).
So, your blog design is important because you want readers to continue reading and to even come back in the future!
There are three options for designing your travel blog:
Creating your blog design yourself (DIY such as with paid or free themes)
Paying a blog designer for a custom site design
Buying a premade blog layout – this is what I recommend bloggers do!
Doing it yourself is usually the cheapest, but it can take a lot of time. Paying for a custom site design is usually fairly expensive.
My favorite option – I’m a big fan of simply buying a premade blog design. They are a lot more affordable than a custom design and look amazing. One premade blog design site that I recommend is Restored 316. Restored 316 is super easy to use and they have a lot of great blog design options, especially for travel blogs.
Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).
Here’s what my About page looks like.
5. Make important pages for your blog
To make your travel blog successful, start by setting up your main pages. These pages help your readers easily navigate your site.
Your important pages should include:
Homepage – This is the first impression visitors get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about. Clearly state what your blog focuses on, such as destinations, travel tips, or itineraries, and provide links to your main sections.
About page – Share your story here and explain who you are, why you started traveling, and what kind of travel experiences you write about.
Contact page – Make it easy for readers, tourism boards, or brands to reach you by listing your email address.
Privacy Policy page – Outline how you collect and use data, especially if you collect any personal information. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosure page – If you earn money through affiliate links, sponsored trips, or partnerships, you need to be transparent about it.
6. Start social media accounts for your travel blog
Creating social media accounts can be super helpful for growing your travel blog.
Social media allows you to share your pictures, travel tips, and stories, making it easier for people to find your blog and follow your adventures.
Social media is especially helpful for a travel blog because it allows you to reach a larger audience and engage with readers in real time. Posting pictures and videos of your trips on Instagram or TikTok, for example, can inspire people to visit your blog for more detailed itineraries and travel advice.
The social media platforms you can start include:
Facebook
Pinterest
Instagram
Twitter
TikTok
You don’t have to be active on all of them, but claiming your blog name on each platform is a smart move to keep your brand name consistent. Then, I also recommend adding social media buttons to your blog so that readers can find you on social media from your blog.
7. Create a blog post plan
A blog content plan is a simple way to organize what you’ll write and post on your blog.
It helps you stay on track and reach your goals, like getting more readers or making more sales.
A good content plan includes a list of topics, post titles, when to publish, and the goal of each post (like promoting something or helping your readers).
It can also include keywords, picture ideas, and how you’ll share your posts. It’s basically a guide to keep your blog running smoothly and growing.
Your travel blog content plan doesn’t need to be complicated, though. It can be as simple as a list of trips or destinations you want to write about. How detailed you make it is up to you.
Here are some blog post ideas for a travel blog content plan:
10 Budget Travel Tips for Exploring the World
How To Plan the Perfect Weekend Getaway
How To Travel Abroad for the First Time: A Beginner’s Guide
Top 5 Must-Have Travel Apps You Need
How To Pack Light for a Two-Week Trip
How To Find Cheap Flights and Save Money on Airfare
10 Underrated Travel Destinations You Should Visit
Best Travel Hacks for Families with Kids
Top 5 Beach Destinations for a Relaxing Vacation
How To Travel Full-Time and Make Money on the Road
8. Write your first post
Writing your first post can be exciting and a bit scary. I think pretty much every blogger is a little nervous to share their first blog post – this is completely normal.
Here are some things to think about when writing a blog post:
You can easily start with an introduction. Tell your readers who you are and what your blog is about, and share a bit about why you love to travel.
After the introduction, get into the main content of your post. Share your travel experiences, tips, or plans.
Divide your post into short paragraphs because this makes it easier to read. Use bullet points or numbered lists to break up the text.
I also recommend that you include photos to make your post more appealing. Pictures of your travels can help bring your story to life. It is a travel blog after all, so readers most likely want to see pictures!
Then, I recommend that you end your blog post with a call to action. Ask your readers to leave comments or share your post with their friends.
Remember to proofread your post before publishing.
9. Find ways to make money with your travel blog
You can make money from your travel blog in many ways, such as:
Placing ads on your blog. Companies will pay you to show their banners or links. This can be a good way to earn an income.
Affiliate marketing is another great option. You can recommend travel gear, hotels, or tours and get a commission for every sale made through your links. It’s a win-win for both you and your readers. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
Sponsored posts can bring in extra money too. Brands might pay you to write about their products or services.
Selling digital products like travel guides or ebooks can also be profitable.
You could also sell paid memberships. Members could get access to exclusive content, special travel deals, or even a personal Q&A session with you.
Running webinars or online courses about travel planning can help you earn money. People love learning and are willing to pay for good advice.
Don’t forget about social media. You can get paid for sponsored posts or partnerships on platforms like Instagram and YouTube.
Freelance travel blog writing – There are websites, such as larger travel blogs, that will pay for content as well.
10. How to grow a travel blog
To get readers to your travel blog, you need to promote it.
Here are some ways to get pageviews on your blog:
Share your travel posts and photos on social media platforms like Facebook, Pinterest, and Instagram.
Guest post on other travel blogs. This can introduce you to new readers who are interested in travel.
Email marketing is one of my favorite ways to grow a blog. You can persuade readers to subscribe to your newsletter and send them updates and new travel posts regularly. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Use search engine optimization (SEO) techniques to help your blog appear in search results when people look for travel tips or destinations.
Create helpful video content: Many travelers love visual content, so creating travel vlogs or short clips on YouTube, Instagram, or TikTok can bring traffic to your blog.
Create downloadable resources. Useful resources like packing checklists, travel itineraries, or budget travel guides can get more readers to your blog.
My favorite guide that teaches many different strategies to grow your pageviews is 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. If you are a new blogger, check out this resource! The author went from 17,000 monthly pageviews to 400,000 and shares all of her best tips in this guide.
Frequently Asked Questions
Starting a travel blog can be exciting and rewarding. Many people are curious about how to get started, the costs involved, and if it’s possible to make money. Here are some common questions about making money with travel blogging.
Do travel bloggers make money?
Yes, travel bloggers can make money. Many travel bloggers earn income through advertisements, affiliate marketing, sponsored posts, and selling products or services. Of course, not every travel blogger makes money, but some do.
How much does it cost to start a travel blog?
Starting a travel blog can be affordable. Here are some common expenses:
Domain name: About $10 to $15 per year
Web hosting: Around $3 to $10 per month
Initial costs can range from $50 to a few hundred dollars. You’ll spend more if you get a custom design or pay for freelance writers, though, of course.
Is travel blogging easy?
Travel blogging can be exciting but takes a lot of hard work when it comes to writing, photography, and social media. It involves:
Creating regular, high-quality posts
Promoting content on social media
Engaging with readers and other bloggers
It requires passion and dedication, but many find it rewarding.
What are the disadvantages of being a travel blogger?
While travel blogging has perks, there are challenges too, such as inconsistent income (earnings can vary month to month); it can be time-consuming (creating content and maintaining a blog takes a lot of time); it can lead to travel stress (constant travel can be exhausting); and privacy concerns (sharing personal experiences can sometimes feel invasive).
Who are the most popular travel bloggers?
Many successful travel bloggers have become well-known. Some of these include Nomadic Matt, Anna Everywhere, The Blonde Abroad, Expert Vagabond, Adventurous Kate, The Points Guy, Y Travel Blog, and Jessie on a Journey. There are many more travel bloggers, and then there are also travel Instagrammers, travel YouTubers, and more!
How To Start a Travel Blog – Summary
I hope you enjoyed this article on how to start a travel blog and make money.
I’ve been running this blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.
If you are thinking about starting a blog, I highly recommend trying it out! It can be done relatively affordably and all from home, so I think it’s worth the try.
Starting a travel blog is a fun way to share your adventures and connect with fellow travelers around the world. When I first began blogging, I had no idea it would lead to me being able to earn a full-time income and allow me to travel full-time. Whether you’re looking to turn it into a career or just want to share your travel tips and stories, creating a travel blog can open up new opportunities to explore the world and inspire others to do the same.
Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Join over 80,000 people who have already taken the course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
A 529 plan is a popular way to help pay for college. But it can also be used for private school to help cover the cost of tuition.
There are rules and restrictions about 529 private school use, and where you live can make a difference. If you’re considering private education for your child, here’s what you should know about 529 plans.
Saving for Private School Tuition
The cost of private school is substantial: The average K-12 tuition is $12,350 a year, according to the Education Data Initiative.
A 529 savings plan is an investment account that’s designed to help families pay for a student’s education expenses. Although a 529 is primarily meant to be used for college expenses, up to $10,000 from a 529 can be applied to K-12 private school tuition, as long as your state considers it a qualifying expense. This is one of the many 529 plan benefits that families can take advantage of.
Recommended: Prepaid College Plans by State
When to Establish a 529 Plan for Private Education
If you’re expecting your child to go to college, you may want to open a 529 savings plan for them. Parents, relatives, and friends can all make contributions to the plan. 529 plans can help students pay for college tuition and related qualifying expenses so they won’t need to take out as much in federal and private student loans.
One of the advantages of a 529 is that money in the account can grow over time, especially if you open it when your child is young. As of mid 2023, the national average account balance for 529 savings plans was $27,741, according to the Education Data Initiative.
Another perk of a 529 plan is the tax benefits that come with it. There is no federal income tax on earnings and qualified withdrawals from the plan. In addition, your state might also offer income tax benefits on contributions to a 529.
However, using a 529 for private school means you may end up depleting some of the funds that would otherwise go toward your child’s college expenses, so it’s wise to be strategic about this option. For example, if your oldest child decides they don’t want to go to college after all and they’re currently in private school, you could use the 529 account to help cover their private school cost. Or if you’re at risk of overfunding the account beyond your state’s 529 contribution limits, using some of the money in the 529 for private school can make sense.
If you use a 529 for private school and your child then has less money for college costs, there are financial aid options that can help. You can explore scholarships and grants, and federal and private student loans.
Recommended: SoFi Scholarship Search Tool
Boost your retirement contributions with a 1% match.
SoFi IRAs now get a 1% match on every dollar you deposit, up to the annual contribution limits. Open an account today and get started.
Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.
How to Use a 529 Plan for Private School
There are rules about using a 529 to fund a child’s private school tuition. Make sure you understand the following:
State Eligibility Restrictions
Your ability to use a 529 tax-free for private school depends on the state you live in. Not all states consider elementary and secondary private school tuition as a qualifying education expense. If your state treats private school tuition as a non-qualifying expense, you might face additional tax on any withdrawals you make.
States that don’t consider distributions for private school as a qualifying expense include California, Nebraska, and New York to name a few. Check the rules for your state.
529 Plan Qualified Expenses
When 529 withdrawals are used for college costs, the list of qualified expenses (meaning those that don’t incur taxes or penalties) is broad. Tuition and fees, textbooks, school computers, lab equipment, and room and board are all considered qualifying college expenses by the IRS. But with private schools, qualified expenses are restricted to tuition fees only.
Tax Considerations
A 529 plan is a federal tax-advantaged savings vehicle. Earnings grow tax-free and 529 distributions up to $10,000 annually for private school tuition are not taxed.
However, non-qualified withdrawals, such as using 529 funds to pay for private school uniforms or taking out more than the $10,000 limit for tuition, are subject to federal income taxes and might incur other 529 plan penalties.
Some states offer tax deductions or credits on 529 contribution amounts, but a number of states do not. California, for example, doesn’t consider private school tuition a qualifying 529 expense. The earnings portion of a 529 withdrawal used for private school is subject to California income tax, and an additional 2.5% tax applies.
To be eligible for contribution-related tax benefits in certain states, you must have opened the state-sponsored 529 plan. If you opened an out-of-state 529 plan, you might not be able to claim your state’s 529 tax perks.
529 Withdrawal Checklist to Pay for Private School
Before using a 529 to pay for K-12 private school tuition, take the following steps.
1. Verify Your State’s Rules
It’s important to understand your state’s rules and restrictions regarding 529 withdrawals for private school tuition. For example, you may need an in-state plan to qualify for tax benefits.
Also, find out if your state treats private school tuition as a qualifying expense for tax deductions or not.
2. Discuss the Withdrawal With a Tax Professional
Speak to a trusted tax professional to review how using a 529 for private school might impact your taxes. They can offer guidance based on your specific financial situation and state’s rules so you’re not caught off-guard with a greater tax liability than you expected.
3. Initiate a 529 Withdrawal
Some 529 plans let you request a withdrawal online. Others might require you to contact the plan’s administrator to start the withdrawal process. Typically, the funds can be disbursed directly to your child’s private school, but there may be an option to disburse them to the account owner.
The Takeaway
A 529 plan allows you to invest in your child’s education. While these plans are a popular way to help save for college, you can use 529 savings to help pay for your child’s K-12 private school education with certain caveats. The funds can only be used for private school tuition, and no more than $10,000 can be withdrawn tax-free. Some states don’t consider private school tuition as a qualifying expense, which could result in an added tax liability on your state tax return. Double-check your state’s 529 rules.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
Can you use a 529 to pay for private K-12 and college education?
A 529 can generally be used for private schools, including religious K-12 schools. Up to $10,000 of your 529 savings can be used toward K-12 tuition each year.
Can you use a 529 plan to pay private student loans?
Yes, you can use a 529 plan to repay private student loans. However, a lifetime cap of $10,000 of qualified student loan repayments can be repaid using 529 funds.
Can 529 plans only be used at in-state schools?
You can use a 529 for private school tuition as long as the institution is an accredited private college, university, trade school, or graduate or professional school.
Photo credit: iStock/FG Trade Latin
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.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
“A fundamental assumption in our forecast had been that the personal savings rate had been unsustainably low as income growth meaningfully lagged consumer spending in recent quarter,” said Nathaniel Drake, associate at Fannie Mae’s Economic and Strategic Research Group. Personal income, adjusted for inflation, rose by 0.1% in August, according to the BEA, and real … [Read more…]
Editor’s Note: For the latest developments regarding federal student loan debt repayment, check out our student debt guide.
If you’re a new dentist, you have plenty of reasons to smile about your profession. You can start practicing soon after completing dental school, and you stand to earn a healthy salary right off the bat. The average entry-level dentist in the U.S. earns $189,979 a year, according to ZipRecruiter.
At the same time, you also need to figure out how to pay off your student loans. According to the American Dental Association (ADA), the average dental school graduate leaves school with nearly $300,000 in education debt. By comparison, medical school graduates owe an average of $243,483 in total educational debt, according to the Education Data Initiative. That’s where budgeting for dentists comes into the equation.
Key Points
• Consider disability insurance to protect income.
• Establish saving and investing strategies early, leveraging a pay-yourself-first mentality.
• A good budgeting rule of thumb: Set aside 30% of income for savings, with 25% for retirement and 5% for other savings.
• Think about diversifying your investments and including HSAs, IRAs, and after-tax brokerage accounts.
• When tackling student loans, consider aggressive repayment strategies, as well as refinancing.
How Budgeting Helps
Starting a career with a six-figure loan debt may feel overwhelming, but budgeting for dentists can help. In fact, now is an ideal time to establish your saving and investing strategies, says Brian Walsh, CFP®, Head of Advice and Planning for SoFi. “When you’re right out of school and your lifestyle is already lean, you can more easily build a pay-yourself-first mentality without making any drastic adjustments,” he explains. “It’s significantly easier to do it at this point instead of when you have a house, a car, and a family and then need to start making cuts.”
Here are some strategies to help you create your budget and plan for the future.
Protect Your Income
With its repetitive motions and constrained work area, dentistry can be physically taxing work, especially on the back and joints. According to the ADA, dentists have a one in four chance of becoming disabled. To mitigate your risk, you may want to consider disability insurance, which covers a percentage of your income if you become unable to work due to an illness or injury.
If you purchased a policy during dental school, you have the option to increase your coverage now that you’re making more. If you don’t have a policy, you can buy one as part of a group plan or as an individual. Find out if your employer offers it as part of your benefits package; some do. Monthly premium amounts vary, but in general, the younger and healthier you are, the cheaper the policy.
Recommended: Budgeting as a New Doctor
Don’t Overspend
Dropping a bundle on meals out? Clicking “add to cart” more frequently? Enjoy your hard-earned income, but don’t go overboard on splurges.
To help you focus on where you put your money, consider prioritizing your financial goals — saving for a home, for example, or paying off your debt. This is an important strategy in budgeting for dentists. Walsh also recommends that early-career professionals use cash or debit cards for purchases to build up good spending habits, and automate their finances whenever possible. For example, pre-schedule your bill payments and set up automatic contributions to your retirement account.
Kick-Start a Savings Plan
Tackling student loans is likely a top priority for you right now, but just as important is creating a savings plan.
Walsh recommends early-career dentists set aside 30% of their income for savings. Of that, 25% should be for retirement and 5% for other savings, like building an emergency fund that can tide you over for three to six months. The remaining 70% of your income should go toward expenses, including monthly dental school loan payments.
The sooner you start saving and investing, the sooner you can enjoy compound growth, which is when your money grows faster over time. That’s because the interest you earn on what you save or invest increases your principal, which earns you even more interest.
You may even want to consider buying a dental practice at some point, so that’s another reason budgeting for dentists makes sense.
Explore Different Ways to Invest
As a high earner, you may need to do more with your money than max out your 401(k) or 403(b), though you should do that, too. Walsh suggests new dentists leverage a combination of different investments. This strategy, called diversification, can help shield you from risk. Here are some types of investments to consider:
• A health savings account (HSA), which provides a triple tax benefit. Contributions reduce taxable income, earnings are tax-free, and money used for qualified medical expenses is also tax-free.
• An individual retirement account (IRA), like a traditional IRA or Roth IRA, can offer tax advantages. Contributions made to a traditional IRA are tax deductible, and no taxes are due until you withdraw the money. Contributions to a Roth IRA are made with after-tax dollars; your money grows tax-free and you don’t pay taxes when you withdraw the funds, provided certain requirements are met. However, there are limits on how much you can contribute to an IRA each year.
• A Simplified Employee Pension IRA (SEP IRA) can be a good option if you’re a solo practitioner. “Total contributions can be just like those with an employer-sponsored plan, but you control how much to contribute, up to a limit,” Walsh says. Contributions are tax-deductible, and you don’t pay taxes on growth until you withdraw the money when you retire.
• After-tax brokerage accounts offer no tax benefits but give you the flexibility to withdraw money at any time without being taxed or penalized.
Two investments to consider bypassing are variable annuities and whole life insurance. Neither is a suitable way to build wealth, Walsh says.
Whatever your strategy, keep in mind that there may be fees associated with investing in certain funds. Those can add up over time, Walsh points out.
Determine a Student Loan Repayment Strategy
Since new dentists tend to start earning money more quickly than other health care professionals, they are often better positioned to tackle loan repayments more aggressively.
But your repayment strategy will depend on a number of factors. To start, consider the types of student loans you have. Federal loans have safety nets you can explore, like loan forgiveness and income-driven repayment (IDR) plans, which can lower monthly payments for eligible borrowers based on their income and household size.
Once you’ve assessed the programs and plans you’re eligible for, figure out your goals for your loans. Do you need to keep monthly payments low, even if that means paying more in interest over time? Or are you able to make higher monthly payments now so that you pay less in the long run?
If you have multiple loans and/or other debts, there are two approaches you might consider for paying them down. With the avalanche approach, you prioritize debt repayment based on interest rate, from highest to lowest. With the snowball method approach, you pay off the smallest balance first and work your way up to the highest balance.
While both have their benefits, Walsh often sees greater success with the snowball approach. “Most people should start with paying off the smallest balance first because then they’ll see progress, and progress leads to persistence,” he says. But as he points out, the right approach is the one you’ll stick with.
[embedded content]
Consider Your Refinancing Options
Paying down debt has long-term benefits, like lowering your debt-to-income ratio and building your credit. In order to help do this, you may want to include refinancing your student loans in your student loan repayment strategy.
When you refinance, a private lender pays off your existing loans and issues you a new loan. This can give you a chance to lock in a lower interest rate than you’re currently paying and combine all of your loans into a single monthly bill, which can be easier to manage. Some lenders, including SoFi, also provide benefits for new dentists.
The refinancing process is straightforward, yet some common misconceptions persist, Walsh says. “People overestimate the amount of work it takes to refinance and underestimate the benefits,” he says. A quarter of a percentage point difference in an interest rate may seem inconsequential, for instance, but if you have a big loan balance, it could save you thousands of dollars.
That said, refinancing may not be right for everyone. If you refinance federal student loans with a private lender, for instance, you lose access to federal benefits and protections, such as forgiveness programs and forbearance. Consider all your options and decide what makes sense for you and your financial goals.
The Takeaway
Dentistry can be a rewarding career with the potential to earn a healthy salary right from the start. However, you’re likely to have a significant loan debt when you graduate from dental school. Fortunately, balancing your goals with some smart saving, investing, and loan repayment strategies can help you get your finances on firm footing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
Photo credit: iStock/5second
SoFi Student Loan Refinance SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
Epic Ski Pass holders get access to several Epic resorts and partner resorts around the world. Think of it like a membership: Buy it once, use it all winter.
Most participating resorts are in the U.S., but there are also a handful in Canada and Australia plus partner resorts in Europe, Japan and the Canadian Rockies (plus one in the U.S.) that offer limited access to certain pass holders. Depending on when you purchase your pass, you may even get summer lift access, too, which could include lift-accessed mountain bike parks or scenic lift rides.
If you’re planning to ski multiple days this season, the cost of a pass could be much cheaper than paying for daily access. But blackout dates and limits to when you can visit might apply. Make sure your favorite local resort is included in the pass before purchasing.
Where are Epic Pass resorts?
Epic Pass mountains and resorts are located all over the world, with the majority in the U.S.
U.S. Rockies:
Vail, Colorado.
Beaver Creek, Colorado.
Breckenridge, Colorado.
Keystone, Colorado.
Crested Butte, Colorado.
Park City, Utah.
Western states:
Heavenly, California/Nevada.
Northstar, California.
Kirkwood, California.
Stevens Pass, Washington.
Northeastern states:
Stowe, Vermont.
Okemo, Vermont.
Mount Snow, Vermont.
Mount Sunapee, New Hampshire.
Attitash Mountain Resort, New Hampshire.
Wildcat Mountain, New Hampshire.
Crotched Mountain, New Hampshire.
Hunter Mountain, New York.
Mid-Atlantic (Pennsylvania):
Liberty Mountain Resort, Pennsylvania.
Roundtop Mountain Resort, Pennsylvania.
Whitetail Resort, Pennsylvania.
Jack Frost and Big Boulder, Pennsylvania.
Seven Springs, Pennsylvania.
Laurel Mountain, Pennsylvania.
Hidden Valley, Pennsylvania.
Midwest:
Afton Alps, Minnesota.
Mt Brighton, Michigan.
Wilmot, Wisconsin.
Alpine Valley, Ohio.
Boston Mills/Brandywine, Ohio.
Mad River Mountain, Ohio.
Hidden Valley, Missouri.
Snow Creek, Missouri.
Paoli Peaks, Indiana.
Whistler Blackcomb, British Columbia.
Australia:
Perisher, New South Wales. (2025 access.)
Falls Creek, Victoria. (2025 access.)
Hotham, Victoria. (2025 access.)
Andermatt-Sedrun-Disentis, Switzerland.
Partner resorts (limited access) in Europe, Canada, the U.S. and Japan:
Rusutsu, Japan.
Jigatake Snow Resort, Kashimayari Snow Resort, White Resort Hakuba Sanosaka, ABLE Hakuba Goryu, Hakuba 47 Winter Sports Park, Hakuba Happo-one Snow Resort, Hakuba Iwatake Snow Field, Tsugaike Mountain Resort, Hakuba Norikura Onsen Snow Resort and Hakuba Cortina Snow Resort, all located in Hakuba Valley, Japan.
Telluride, Colorado.
Fernie Alpine Resort, Canada.
Kicking Horse Mountain Resort, Canada.
Kimberley Alpine Resort, Canada.
Mont-Sainte-Anne, Canada.
Nakiska, Canada.
Stoneham, Canada.
Crans-Montana, Switzerland.
Verbier 4 Vallées, Switzerland.
Ski Arlberg, Austria.
Skirama Dolomiti, Italy.
Les 3 Vallées, France.
Epic Pass costs and options
Epic Pass: $1,025
If you want nearly unlimited access to all Epic Pass resorts with no blackout dates during peak times (usually holidays), the classic Epic Pass is the one for you.
You’ll get unlimited access to most U.S., Canadian and international resorts. But Telluride in Colorado, several Canadian destinations and participating Japanese resorts still come with a cap on how many days in the season you can visit. Since it’s the most inclusive pass option, it’s also the most expensive.
Epic Local Pass: $762
Geared toward U.S. residents who may occasionally travel internationally to ski, the Epic Local Pass offers unlimited access to several resorts across the U.S. and limited days at international resorts. Some U.S. slopes don’t allow visits on peak days, though, so check to see if your favorite mountains come with limitations, especially if you’re planning to travel over the holidays.
Epic Day Pass: Starts at $46 per day
This flexible option allows you to buy a day pass (for one day up to seven) for use whenever it’s convenient. You can choose if you want those days to give you access to all Epic resorts or just a selection and if you want the pass to include peak dates (which costs more). Which you choose will depend on when and where you plan to travel to ski or ride.
Purchasing a pass this way scores you lift tickets at a discount up to 65% off. Epic says that works out to between $46 and $135 per day depending on your selections, meaning you could score yourself a pretty decent discount depending on what resorts you plan to visit.
Military passes: Start at $181
Whether you’re active military, retired military, a dependent or a veteran, there are several discounted passes available with unlimited access to a wide selection of resorts.
Area- and resort-specific passes: Start at $334
For those who don’t plan to travel far to ski or snowboard, there are several resort- or region-specific passes available. For example, the Tahoe Local Pass offers unlimited access to a handful of California resorts, plus extra days at a few destinations in Western states.
The Northeast Value Pass gets you access to slopes in New England, Pennsylvania and the Midwest. Several dedicated resort-specific passes are available, too, if you plan to always ski close to home.
How to use an Epic Pass
To use an Epic Pass, download the My Epic app then scan your phone in lieu of a traditional lift ticket. That means you can skip the ticket line and head straight to the lifts at most resorts (except Telluride, which requires reservations).
The app also will keep track of days skied and any date restrictions associated with the pass you chose.
Other benefits of the Epic Pass
In addition to users getting access to often unlimited lift tickets by purchasing a pass before the season starts, the Epic Pass comes with a slew of other benefits at select resorts:
20% off food at many on-resort dining establishments.
20% off resort lodging.
20% off group ski or snowboard lessons.
20% off rental equipment.
50% off a tune-up and one free wax a year.
Discounted single-day lift tickets or Buddy Tickets for friends or family (with select passes).
Discounts on transportation and experiences at a handful of locations.
Pass coverage: You may be able to get a refund or partial refund if you lose your job, a resort closes or you get injured, thus limiting your ability to use your pass.
Is an Epic Pass worth it?
For many skiers, yes. But it depends on several factors — mainly, how often you’ll be able to use the pass and if it’s convenient for when and where you ski or snowboard.
Here’s what to consider before purchasing:
Location. Are any of the resorts near you part of the Epic Pass program? If not, and you’re not planning to travel to any that are, then you probably want to pass on this pass. If, however, your favorite hometown slope is included, and you plan to spend more than a few days layering up and strapping in in search of fresh powder or want to travel for a ski vacation, a pass could likely save you money.
Frequency. The more days per season you ski or ride, the more the cost of a pass will be worth it. But even if you plan to ski or ride only a few days throughout the season, a day pass could likely save you quite a bit of cash compared to a full-priced lift ticket, so it’s worth considering, especially if you live near an Epic resort.
Blackout dates. Keep in mind, too, whether the pass and included resorts allow you to claim lift tickets on peak days like Thanksgiving and Christmas. If you’re hoping to ski during the holidays, this is extra important.
Finances: Don’t go into debt for a season-long ski pass. Whether you choose to pay in full or use Epic’s buy now, pay later option, make sure your finances are in good enough shape for large transactions or automatic withdrawals. If they’re not, stick with saving up and paying on just the days you want to ski.
For the best value, make sure you scan the list of passes available and choose one that makes the most sense for you. There’s no need to spend big bucks on a full-blown Epic Pass if a regional or local pass will suit your needs.
If you are like many people, you may have asked yourself at some point in life, “Will I be rich one day?” No one knows for sure what the future holds, but there are a few things you can do to increase your chances of becoming a millionaire.
One of the best ways to amass wealth is to invest in assets that will appreciate over time. But while that sounds good, finding a starting point can be challenging for some. For example, you can start your own business or work hard to climb the corporate ladder, but which is the better option? And you’ll want to invest the money you earn. But where?
Whatever you do, it’s smart to remember that it’s okay to take risks and make mistakes; learning from your experiences is a critical component of success. Above all, remember that wealth accumulation is a marathon, not a sprint. It takes patience, commitment, and perseverance to achieve financial security.
Table of Contents
Key Points
• Early financial success, such as earning money from a young age, can set the stage for future wealth.
• Taking decisive action and managing finances proactively are common traits among those accumulating wealth.
• Outspokenness and a unique personal style often distinguish wealthy individuals in social settings.
• A strong sense of urgency and goal-oriented behavior are typical among successful wealth builders.
• Distinguishing between needs and wants is crucial for effective financial management and wealth accumulation.
What Is a Sign of Wealth?
Often, specific aspects of one’s physical appearance such as luxury cars and designer clothes are taken as a sign of being rich or wealthy. Unfortunately, these signs aren’t always reliable. For example, some people may live in an extravagant home, giving off the appearance of wealth, but it may simply mean that they can access money — perhaps through credit, savings, or even family.
Real signs of wealth are often more attitudinal, and many can be cultivated through patience and practice. Here are a few people who were early millionaires due, in large part, to their drive and focus.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
Recommended: What Credit Score is Needed to Buy a Car
Examples of Millionaires Under 30
With the advent of the tech industry, smart investments, business ventures, or inheritances — i.e., the great wealth transfer — millionaires under 30 are becoming increasingly common. Here are three examples of millionaires who earned their fortunes before turning 30.
Mark Zuckerberg: Zuckerberg created Facebook at age 19 while attending Harvard University. The idea was to match photos with the names of other students. And in just a few short years, Zuckerberg became a self-made millionaire at age 22.
Sergey Brin: Brin is a Russian American computer scientist who, at the age of 25, co-founded Google, Inc., and became a millionaire. Google is one of the world’s most valuable companies, and today, Brin’s net worth is estimated to be upwards of $120 billion.
Alexandr Wang: Wang founded Scale AI in 2016 as a way to analyze data far faster than any human could. Today, Scale AI’s technology has been used by the U.S. Airforce and U.S. Army, as well as 300+ companies. Today, Wang’s net worth is estimated to be over $2 billion, and at age 27, he’s among the youngest self-made billionaires.
Recommended: Does Net Worth Include Home Equity?
9 Signs of Wealth to Look Out For
In the U.S. 1% of earners take home nearly 30% of the country’s income, so it’s essential to know what signs to look for when trying to identify if someone is wealthy. While there’s no one-size-fits-all definition of wealth, some cues can give you a good idea of whether you or someone you know is doing well financially. (And a net worth calculator can help you tally up your own assets.)
Here are six signs of wealth to look out for that indicate you’re on track to becoming wealthy:
1. You’re an Overachiever
It’s hard to be modest when you’re an overachiever. You know you’re good at your work and are not afraid to let everyone know. Overachievers work hard and try harder. While this may make some people uncomfortable, it comes naturally to you.
2. You Started Making Money At a Young Age
It is not uncommon to see young adults with successful careers in today’s society. While some people played with toys as a child, others learned how to make money. For example, it could mean that you had a paper route or a babysitting business.
Making money at a young age, or any age for that matter, is not always easy. But an early start in earning, tracking your money, and investing can put you on an accelerated schedule when it comes to building your wealth and becoming a millionaire.
3. You Take Action
There will be times when things happen that are out of your control. You may feel stuck and as if you have no way to change your circumstances. However, these are the times when you must take action to create the life you want to live. For example, it might mean organizing your finances to get what you want. And, sometimes you’ll have to take some risks and go for it. It can be scary, but it’s worth it to achieve your goals.
When faced with a difficult situation, it’s essential to remember that you always have a choice. You can choose to give up, or you can choose to fight for what you want. Only by taking action can you make progress and take a step towards achieving financial wellness. So don’t be afraid to step up and take on whatever life throws your way — you can do it!
4. You Are Outspoken
In a society where people get judged by how much money they have, it is no surprise that many go out of their way to keep up appearances. And while some may try to blend in with the wealthy crowd, a wealthy person will often stand out with his unique style or outgoing sense of humor. Wealthy people tend to feel less inhibited and are more likely to speak their minds. They may also be less concerned with the rules and more likely to take risks.
5. You Possess a Sense of Urgency
When it comes to the wealthy, there are a few telltale signs that set them apart. One of these is their sense of urgency — they don’t like wasting time and are always moving forward. This urgency allows them to set financial goals, achieve them, and maintain their wealth. It’s also one of the reasons why they may seem constantly stressed out — they’re always trying to do more.
6. You’re Focused More on Saving Than Earning
It doesn’t matter if you earn $50,000 or $250,000 a year. Unless you consistently spend less than you make, you’ll never get ahead financially. People who focus on their budget and saving their disposable income understand how to live within their means and focus on what’s most important: saving money for the future.
7. You Know the Difference Between Needs and Wants
In our materialistic society, getting caught up in the “must-have” mentality is easy. Advertisements are everywhere, and social media posts tell us we need the next latest and greatest products. It can be challenging to discern between the things we need and want.
A sign of a wealthy person is their ability to distinguish between the two. They know which items are essential for their well-being and those which would be nice to have. Advertising or peer pressure doesn’t work on rich people, and their possessions don’t rule them.
Recommended: Should I Sell My House Now or Wait?
Spiritual Signs You Will Be Rich
Are there spiritual signs that you can be a wealthy person? Some people believe steadfastly in spiritual and other signs of wealth and luck. Here are a couple of examples:
Gravitating to the Lucky Number, 8
In Chinese culture, the number 8 is considered a lucky number. Individuals who gravitate toward this number may believe it will bring them good fortune. Some people might even go as far as to change their phone number or social media handle to include the digit 8.
A Psychic Confirms Wealth is Coming
Some people consult psychics to get guidance on anything from love to health and even money. While many psychics will say they can tune into your energy and give you specific information about your future, and many people believe their predictions, you may be better off putting the money you’d pay the psychic into savings.
Pros and Cons of Having Signs of Wealth
There are very few times when it can be helpful to show off your wealth to others. Indeed, showing off can make others feel intimidated. Additionally, it can attract unwanted attention from criminals or others who want to take what you have. And having too many signs of wealth can make you a target for scams or other fraudulent schemes.
The Takeaway
If you identify with any of these habits you’re likely well on your way to building a significant amount of wealth. However, it is essential to remember that wealth accumulation is not a one-time event; it’s a way of life. It’s something you’ll need to make a habit of, if you want to succeed. For many people who work hard, stay focused, and are disciplined, it is possible.
And as you’re building your wealth, tracking your income and expenses is one of the primary ways to manage your money. SoFi’s money tracker app can help you keep track of your funds so you can make the best spending decisions and start building your very own fortune today.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
At what point is someone considered wealthy?
There is no magic dollar amount that indicates someone is wealthy and one person’s definition may not be the same as another’s. But in 2022, the top 1% of earners took home an average of $785,968, according to the Economic Policy Institute. Of course the amount you earn is only part of the wealth story. How much of your income (or inherited wealth) you retain is affected by your spending habits.
What are invisible signs of wealth?
People who are stealthily wealthy still might have a “tell” that gives them away. Use of private banking or wealth management services would be one example. Another might be not working but being able to maintain an expensive hobby such as riding horses or boating. Buying bespoke products, whether tailor-made clothing or custom-designed furniture, is another subtle giveaway.
Photo credit: iStock/miniseries
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
As the winter months approach, ensuring your vacation rental is well-prepared for the cold is crucial. Not only does proper preparation protect your property, but it also enhances the comfort of your guests. So whether you are looking to buy and rent out a home for sale in Boston, MA, revamping your rental home in Baltimore, or simply doing some research from the apartment you rent in Colorado Springs, CO, here are nine helpful tips recommended by Rent. and our experts to help with preparing your vacation rental for winter.
1. Plan ahead when winterizing your rental
With colder months fast approaching, one of the most important things that you can do when preparing your vacation rental for winter is to plan ahead. This recommendation comes to us from Jennae England with Heritage North Electric, see below for tips on how to create the best plan of action:
“Different parts of the world experience winter differently; create a list of the kinds of winter weather your vacation rental can experience in that area, as well as how each scenario can affect your heating, lighting, and power. Before winter arrives, make sure everything is clean and functioning properly. Then, make two plans: a prevention plan to keep winter weather from affecting your home, and an action plan for when it does. Be sure your backup plan can be enacted whether someone is there or not!”
Educating yourself on potential issues that could arise with your property will prepare you to act if and when they occur. Make sure that you don’t put off this important first step in preparing your vacation rental for winter!
2. Protect your water system
One very important step in preparing a home for winter is insulating your pipes. Frozen pipes can lead to significant damage and costly repairs.
“To prepare your vacation rental for the winter season, start by ensuring your water system is protected from freezing temperatures — insulate exposed pipes and install a heating tape if needed. Check for any leaks and repair them to prevent water damage. Consider installing a water treatment system like NuvoH2O to reduce mineral buildup, which can cause issues in cold weather. Flush your water heater and ensure it’s operating efficiently to avoid cold water surprises. Finally, provide clear instructions for guests on how to manage the water system during their stay.” Katelyn Keil from Nuvo H2O
Insulating pipes and repairing leaks is vital to keeping your water system in premium condition, especially in unheated areas like basements and crawl spaces. This simple precaution can save you from a winter plumbing disaster.
3. Pest control
As humans, we prefer to have a warm, dry place to retreat to during the winter months. Pests are no different and they can pose a challenge for your vacation rental when temperatures begin to drop. Luckily, The team at Jeff & Katie shared some helpful tips to keep pesky pests at bay:
“One of our favorite winter preparation tips is to place little mesh bags filled with whole cloves or dryer sheets in areas like the back of cupboards, pantry shelves, and under mattresses — anywhere pests might try to get in. The strong scent of cloves and dryer sheets keeps the pests away, and as an added bonus, it makes the house smell fresh, warm, and cozy, without the use of harsh chemicals. This tip is also perfect for those who are winterizing their properties. It keeps pests out and good scents in, so when you open up the property in the spring, it smells amazing!”
Take heed of the recommendations above and make sure that pests don’t get the best of you and your home this winter season.
4. Maintain gutters and roofing
Keeping your gutters and roof in good condition is vital to successfully maintaining your vacation rental during the winter. Penni Parrish from Tierra Antigua Realtyshares that “Clearing gutters and downspouts of leaves and debris to avoid water damage from winter rains” is highly recommended when preparing your rental for winter.
Michele from Matrix Construction also has thoughts on the importance of maintaining the health of your home’s gutters: “In our experience, clearing the gutters is one of the easiest yet most important tasks before winter. Even a small amount of leaves can result in ice dams, potentially causing significant damage to a property’s roof and walls if not addressed. Since gutters are out of sight, it might be easy to overlook this pre-winter task.”
Michele also provided great tips for preparing your roof for temperature drops: “Don’t let a roof problem ruin your winter rental season. We’ve seen firsthand how a minor issue with a roof can turn into a major problem during a winter storm. That’s why we recommend a thorough inspection and quick repairs of leaks or missing shingles before the cold weather sets in. Getting on the roof can be dangerous, so we always advise hiring an experienced contractor like Matrix Construction to conduct a thorough inspection.” Addressing gutter and roof issues proactively will help avoid leaks and costly repairs later on.
5. Check your heating systems
Michele and Matrix Construction’s advice didn’t stop with preparing your gutters and roof; they also shared expert advice for preparing your rental homes’ heating systems: “Over the years, we have learned that a well-maintained heating system is essential for a comfortable winter rental experience.
We always recommend scheduling a maintenance check, changing the filters, and installing a smart thermostat. Smart thermostats allow guests to adjust the temperature to their liking, ensuring comfort and energy savings. If you need to replace your thermostat, smart technology is the way to go.” Ensure that you don’t get stuck in the past: Upgrading to smart technology is a worthwhile investment that can save you money and prevent heating system headaches in the future.
6. Weatherproof windows and doors
Insulation issues can be a hassle to deal with mid-winter, so the best practice is to tackle any potential issues before the winter season hits your vacation rental’s area. “Start by checking the seal on doors and windows to prevent drafts and conserve heat, which helps reduce energy costs,” shared Penni Parrish from Tierra Antigua Realty. Take a look below for more helpful insulation tips from our experts:
“Cold air entering during the winter months can ruin any rental stay. We want to keep the warm air inside and the cold air out all winter long. Sealing gaps around windows and doors is crucial for maintaining warmth and energy efficiency. Our many years of renovation experience have found that adding storm windows and weather-stripping is a simple and effective solution. This simple tip is easy; most homeowners can tackle the project themselves.” Michele from Matrix Construction
In addition to sealing gaps and weather-stripping, for doors, installing a draft stopper can further reduce heat loss and improve insulation. These small investments can lead to significant savings on heating bills and enhance your guests’ comfort.
7. Create a cozy atmosphere
Once the practical aspects of preparing your vacation rental for winter are handled, it’s time to focus on creating a warm, inviting atmosphere for your guests. Start by stocking up on heat saving decorations, warm bedding and amenities like soft lighting. This not only provides warmth but also adds a touch of comfort to the decor:
“My favorite tips for preparing a vacation rental for the winter months are swapping out lightweight bedding for thicker sheets, comforters, and cozy blankets to keep guests warm and comfortable. Also, stocking up on essentials like firewood, ice melt, and weatherproof entry mats can enhance the guest experience during the colder season,” shares Penni Parrish from Tierra Antigua Realty.
Optimizing your home’s heat retention can be stylish! Consider adding heavy curtains, which not only block drafts but also create a cozy ambiance. Plush area rugs help insulate floors, and decorative throw pillows can provide comfort while enhancing your space’s aesthetic appeal. Penni also came through with stellar ideas to elevate your guest experience and stimulate their taste buds: “To add a seasonal treat, Make sure to stock cocoa & apple cider in the coffee and tea bar, bonus points for remembering to add marshmallows for a fun twist!”
We at Rent. also recommend including a few easy-to-make comfort food recipes in your welcome packet. Think along the lines of chili, soup, or stew — easy dishes that can warm up a chilly evening, and don’t forget to consider incorporating seasonal decorations to enhance the winter ambiance. A few tasteful touches, like pinecones, evergreen branches, or subtle holiday decor can create a welcoming vibe without feeling overdone.
8. Promote indoor activities
In the vein of enhancing comfort in your vacation rental, encourage your guests to enjoy indoor activities during their stay. Stock your rental with games, puzzles, or a selection of good books. Providing a cozy reading nook or a space for board games can make your rental feel like a home away from home. Consider sharing local recommendations for winter activities in your welcome packet, like nearby indoor attractions or cozy cafes, to keep guests engaged.
8. Prevent damage to vacant rentals by winterizing
Not every vacation rental is utilized by guests during the winter, but there are still some important things to keep in mind when locking up your property before cold weather hits. Adrian Vigil and the team at Top Notch Plumbing, Heating & Air “emphasize the importance of winterizing your vacation rental to prevent costly damage. They recommend shutting off the water main and draining all lines to avoid frozen pipes. Keeping spigots open allows any remaining water to expand without causing damage.
Additionally, setting the thermostat to 50 degrees and sealing crawl spaces can help maintain a safe temperature and keep cold air out. These steps will protect your property during freezing conditions. Learn more about winterizing your vacation rental at Top Notch Plumbing.” Draining pipes and insulating crawl spaces are often overlooked when winterizing a rental, but they play a critical role in protecting your home. Sealing any vents to prevent cold air from entering and adding insulation boards or blankets to your crawl space will not only help keep your pipes at a safe temperature, but also contribute to overall energy efficiency in your vacation rental during the winter.
Get started preparing your vacation rental for winter today
Winterizing your vacation rental involves a mix of practical maintenance and thoughtful touches that enhance comfort. By insulating pipes, sealing crawl spaces, weatherproofing your property, and adding cozy decor, you’ll create a welcoming atmosphere that keeps guests coming back year after year. A little preparation goes a long way in ensuring that your rental is not just a place to stay but a cozy retreat during the colder months. So, gear up for winter and make your vacation rental a sought-after destination!
When planning for retirement, people often assume Medicare will cover their medical bills, but in fact many retirees will face out-of-pocket costs that, over time, could reach into the six figures.
While it’s difficult to predict for sure what your actual health care costs in retirement will be — especially in light of today’s longevity — it’s wise to work with a ballpark figure in order to create a safety net of savings that will cover you, no matter what your needs will be in the years to come.
Key Points
• Planning for retirement should take health care costs into account, such as potential out-of-pocket costs and long-term care.
• According to research, the average 65-year-old individual may need $165,000 in savings to cover medical expenses in retirement (and double that amount for couples).
• Medicare covers medical costs such as preventive care, doctor visits, prescription drugs, inpatient hospital stays, short-term rehab, and hospice.
• Medicare Advantage Plans are Medicare-approved, private insurance plans that may cover medical basics as well as other expenses, such as vision, hearing, and dental.
• Health savings accounts (HSAs) and long-term care insurance can help pay for medical expenses not covered by Medicare.
Health Care in Retirement
The cost of health care in retirement can be overwhelming. According to the annual Fidelity Retiree Health Care Cost Estimate in 2024, a typical retired couple aged 65 could spend as much as $330,000 in after-tax savings on medical expenses during the course of their retirement.
That figure doesn’t include related health costs such as dental services, over-the-counter medications, or long-term care — which are not currently covered by original Medicare.
Long-term care expenses can be especially onerous, with the median cost of a private room in a nursing home running about $116,800 per year, according to the 2023 Genworth Cost of Care Survey. This, too, is an expense that many people may need to factor into their retirement plans, given the growing number of people living into their 80s and 90s — or longer.
This “new longevity,” as it’s sometimes called, may also lead to additional health-related costs down the line that are difficult to anticipate now, but require educated estimates nonetheless — especially for women, who live on average about five years longer than men.
Recommended: Different Types of Retirement Accounts
Boost your retirement contributions with a 1% match.
SoFi IRAs now get a 1% match on every dollar you deposit, up to the annual contribution limits. Open an account today and get started.
Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.
How Much to Budget for Health Care Costs in Retirement
To create a realistic plan for retirement, and make optimal financial decisions about investing for retirement, insurance coverage, and the timing of important government benefits — the starting point is to look at how much money will be coming in, and how much will be going out to pay for likely health issues.
Social Security Benefits
While Social Security benefits depend on an individual’s work history, as well as the age when they first file for Social Security, the key thing to know about this source of income is that it’s limited. The average monthly payout, starting in January 2024, was $1,907. And the maximum possible benefit amount is $3,822 per month, for those who retire at full retirement age in 2024.
Individuals can file for Social Security starting at age 62, generally speaking, but “full retirement age” is 67 for those born in 1960 and later. To get a more accurate estimate of your own benefit amount, go to SSA.gov.
Private Sources of Income
Fortunately, most retirees also have savings or a pension, which can add to their income. Nearly 80% of retirees reported having one or more sources of private income, in addition to Social Security, according to the Economic Well-Being of U.S. Households in 2022, by the Federal Reserve Board.
For example, you may have opened a retirement account like an IRA or an employer-sponsored plan, such as a 401(k), that may offer an additional source of income.
If you’re freelance or a small business owner, you may have a SEP IRA or a SIMPLE IRA — common retirement plan options for the self-employed.
The point is to have a grasp of your income sources in retirement, as well as your anticipated cash flow, so that you can cover medical costs in retirement.
Understanding Health Care Costs
As costs vary considerably depending on one’s region, age, and overall health, it can be difficult to estimate the precise amount to set aside for health care in retirement.
Start by assessing your overall health today, and speaking to your doctor(s) about any chronic conditions, genetic predispositions, and any other risk factors that could impact the care you need as you get older.
Unfortunately, there’s almost no way to predict with any accuracy the types of conditions or care you might need, or what they will cost, when preparing for retirement. But in some cases this thought exercise may help you anticipate some upcoming costs, so you can factor that into your overall estimate.
Of course, not all of your medical costs in retirement will be out of pocket; Medicare (and Medicaid, if you qualify) cover many medical expenses. But this insurance is another expense to factor in.
What Does Medicare Cost, What Does It Cover?
Medicare is a medical insurance program offered by the federal government for those 65 years and older, and those who are disabled. Medicare will pay certain health care expenses in retirement, but with restrictions. Dental, vision, and hearing care, including hearing aids, are not covered by Original Medicare, generally known as Parts A and B.
Also, as noted above: Medicare does not cover long-term care, like an assisted living or nursing home facility.
Note that you must apply for Medicare benefits within a certain window, or risk being penalized with higher premiums. Generally, the Initial Enrollment period begins three months before you turn 65, and it ends three months after the month in which you turned 65. Some exceptions apply (for example, if you have health insurance through your employer, or were affected by a natural disaster).
Be sure to check the terms that might apply to your situation to avoid a penalty.
Understanding Medicare Coverage
The following terms generally apply to those with a modified adjusted gross income (MAGI) over $103,000, or $206,000 for a married couple. If your premium is subject to an income adjustment, it could be as high as $594 per month (though according to the Centers for Medicare and Medicaid Services (CMS), the highest rate generally applies to people with incomes over $500,000, or $750,000 for a married couple).
• Medicare Part A covers inpatient hospital stays and treatment, as well as skilled nursing care (i.e. short-term rehab), limited in-home care and hospice. As long as you or your spouse had sufficient Medicare taxes withheld through your job (generally at least 10 years), you won’t pay a monthly premium for Part A. The deductible for Part A is $1,632 in 2024.
• Medicare Part B covers outpatient care, preventive care, and visits to doctors. The monthly premium for Part B is about $174 per month, with a roughly $240 annual deductible in 2024.
• Medicare Part D covers prescription drugs. The monthly premium is about $55.50 in 2024.
Medicare Part C, or Medicare Advantage Plans, is a bit of a separate case. Medicare Advantage plans are private insurance plans that are Medicare-approved, and may cover vision, hearing, or dental needs, as well as the medical basics and prescriptions covered by Parts A, B, and D. Medicare Advantage plans are optional.
While the Advantage Plans are designed to fill in certain gaps in coverage, you want to make sure the costs are manageable, and that you’re not paying for overlapping policies.
Medicare Costs
In other words, assuming at least one hospital stay that requires you to pay the deductible, the basic cost of Medicare alone is about $4,600 per year. Again, that doesn’t include:
• Vision care
• Dental care
• Hearing care or hearing aids
• Long-term care
Most people will need some or all of those types of health care as they get older, which could add to your potential out-of-pocket expenses over time, and speaks to the need for some emergency savings.
Other Ways to Pay for Health Care
In addition to Medicare, there are other ways to pay for medical expenses during retirement, including HSA accounts and long-term care insurance.
Health Savings Account (HSA)
When choosing a health insurance plan before you retire, consider one that comes with a health savings account (HSA) that may help you save money for retirement medical expenses. These accounts generally come with high-deductible health plans (HDHPs), and provide three substantial tax benefits:
• Contribution deductions
• Tax-deferred growth
• Withdrawals without taxation for qualified medical costs
The accounts take pre-tax deposits to cover health care costs that are not covered by insurance. The unspent money in an HSA rolls over from year to year. Most important, the money in an HSA account belongs to you, even when you are no longer participating in the original high-deductible plan.
What Your HSA Savings May Cover
HSA funds can be used to pay for a variety of medical expenses in retirement. For instance, prescription drugs, eyeglasses, hearing aids, and other medical supplies can generally be purchased with HSA funds.
Additionally, you can use HSA savings to cover deductibles and co-payments for medical care. Medicare premiums and long-term care insurance premiums can also be covered using HSA funds.
By utilizing catch-up payments and employer contributions, those who are already over 50 can still get the most out of these programs. A catch-up payment of $1,000 per year, in addition to the maximum contribution limit, is allowed for people 55 and older. One can use an HSA to pay for yearly physicals or other preventative exams covered by an HDHP.
A benefit of utilizing an HSA to cover medical expenses in retirement is that the money in the account can be invested, allowing it to increase in value over time. This might be helpful for people who wish to have a dedicated source of savings to cover medical bills.
It’s worth noting that funds in an HSA must be used for qualified medical expenses in order to be withdrawn tax-free. It’s a good idea to consult a tax professional or review IRS guidelines to ensure that HSA funds are being used appropriately.
Long-Term Care Insurance
Another approach to bridge the Medicare gap is to get long-term care insurance. This kind of insurance can provide a monthly benefit for long-term care, either for a few years or for the rest of one’s life.
The expenses of long-term care such as in-home care, assisted living, and nursing facility care, can be covered in part by long-term care insurance. These services are often required by people who are unable to do activities of daily living on their own, such as eating, dressing, or bathing, due to a chronic disease or disability.
That said, these policies can be complex, as well as expensive, and it may be wise to consult with a professional before purchasing coverage.
The Takeaway
Medical expenses can be a large portion of one’s retirement budget. As daunting as it may seem, calculating these expenditures ahead of time and developing an insurance and spending plan will help you save more of your retirement funds for other needs.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
How much does the average person spend on health care in retirement?
Health care costs depend on a variety of factors, but on average a healthy person over age 65 could spend as much as $165,000 during their retirement ($330,000 per couple).
How do I prepare for health care expenses in retirement?
A few ways to prepare include making a retirement budget, saving in a retirement account, funding a health savings account while still employed, making sure to get adequate medical insurance through Medicare and/or private Advantage plans once you turn 65. You may want to consider long-term care insurance as well.
How do I save for out-of-pocket medical expenses?
Ways to save on out-of-pocket medical expenses include shopping around for the best prices on health care services, making use of preventive care services to help reduce the need for more expensive treatments in the future, and purchasing insurance to help cover unexpected medical costs. In addition, funding a health savings account (HSA) when it’s offered is a tax-advantaged way to set aside money for health care costs.
Photo credit: iStock/jacoblund
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.
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.
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. 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.
Do you want to learn how to start a personal finance blog? Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere….
Do you want to learn how to start a personal finance blog?
Starting a personal finance blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my money tips would lead to financial freedom and the ability to work from anywhere.
What started as a hobby turned into a full-time career, allowing me to help others take control of their finances while earning a great income.
Whether you want to help people save money, get out of debt, or learn how to invest, blogging gives you a platform to make a real impact. Plus, it’s an opportunity to earn some extra income on the side or even turn it into a full-time career.
If you’ve ever thought about sharing your own money journey and helping others improve their financial lives, now is a great time to start. In this How To Start a Finance Blog guide, I’ll walk you through how to create a successful personal finance blog, just like I did.
Quick note: I have a free How To Start A Blog FREE Course you can click here to join. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
My background with blogging
Over 10 years ago, I started my blog, Making Sense of Cents, on a whim. I had read an article about personal finance and thought it would be fun to share my own experience. At first, blogging was just a hobby.
I had no idea that people could make money from blogs. But after about six months, a blogger friend introduced me to an advertiser. I made my first $100, and I was hooked.
Since then, the blog has grown beyond my wildest dreams and I have earned over $5,000,000 blogging over the years. Blogging changed my life by giving me financial freedom and the ability to work from anywhere.
Now, I want to help you start your own successful blog.
What is a personal finance blog?
A personal finance blog is a website where you share tips and advice about money. It’s a place where you can help others understand how to save, budget, invest, and spend wisely.
Some examples of topics that a personal finance blog may cover include:
Budgeting
Saving for big purchases
Getting out of debt
Investing in stocks or real estate
Planning for retirement
Side hustles
Financial independence and early retirement
Student loans
Buying a home
Money and mental health
And so much more.
You can choose one or more of these topics to focus on.
Recommended reading: What Is A Blog, How Do Blogs Make Money, & More
Why should you start a personal finance blog?
I think that starting a personal finance blog has many benefits.
You can share your money tips and help others improve their financial situation by sharing advice on saving, budgeting, and investing. I have received countless emails over the years from readers thanking me for helping them change their lives, and these emails are always amazing to read.
Writing a blog also encourages you to learn more about personal finance through research, which can improve your own money skills. I have learned a lot about personal finance because I am constantly reading about it and because I am so active in the personal finance community.
Plus, you can earn extra income through affiliate marketing, ads, and sponsored posts, helping you reach your own financial goals. As I mentioned above, I have earned over $5,000,000 blogging over the years, and I really love running this online business – so it’s been a win all around for me!
For me, I love having a personal finance blog and it’s one of the best decisions that I’ve ever made in my life.
How To Start a Personal Finance Blog
Below is how to start a personal finance blog, step by step!
Here are some of the topics I write about on my personal finance blog.
1. Choose your blog topic
Choosing a finance niche is the first step in starting your personal finance blog. A niche is a specific area of focus that will help your blog stand out.
To help you decide, I recommend thinking about what you’re passionate about. Is it budgeting, saving money, or investing? By picking a topic you love, you’ll enjoy writing and sharing your knowledge.
You should also think about your expertise and experience. What do you know a lot about? If you have experience with paying off debt or improving your credit score, that might be your niche.
Narrowing down your niche helps you become an expert in that area. For example, instead of writing about all things finance, you might focus just on household budgeting tips.
Your niche can also help you make money. Advertisers and sponsors usually look for specific topics to advertise on. If your blog is about investing, you might attract ads from financial services.
Don’t worry if it seems too narrow. There are a lot of people interested in specific topics. Being specific can help you connect better with your readers.
I recommend starting a self-hosted WordPress blog through Bluehost.
2. Start a self-hosted WordPress blog
To start your personal finance blog, I always recommend that you sign up for a self-hosted WordPress site. This means you will own your blog and its content, unlike free blogging platforms.
WordPress is where a blogger writes their blog posts. It’s like the home base for your blog. You can log in, create new blog posts, format them (like adding pictures, headings, or links), and then publish them for your readers to see. WordPress makes it easy to manage everything from your writing to how your blog looks. It’s the platform where you do all the behind-the-scenes work to keep your blog running.
WordPress is a tool that helps you build and manage a blog or website without needing to know how to code. It’s super popular because it’s easy to use and has tons of features to customize your site.
WordPress is what I use for this website (Making Sense of Cents), too!
In short, WordPress is the tool to build your blog, and self-hosting gives you the freedom to control and expand it however you like!
Here are the steps to start a self-hosted WordPress blog:
Get a web hosting service. A popular choice for new bloggers is Bluehost.
Install WordPress. Most web hosts have a one-click installation after you sign up, so it’s quick and easy.
You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions if you want more detail and/or want to see screenshots of the exact things you should click on.
Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name.
3. Pick a blog name
Choosing a blog name is a big first step and it can seem hard to decide on.
Here are some tips for brainstorming a personal finance blog name:
Your blog name should tell readers what your blog is about right away.
Make it unique and easy to remember. A good blog name can help attract more readers. Try to avoid long names, as they might be hard to remember. Short and catchy names work best. Also, I recommend getting a “.com” over any of the others, like “.net”
Use tools like a domain name generator to get ideas. Check if the name is available as a domain. It’s important to have the same name for your blog and website address.
Don’t be afraid to get creative. Mix and match words until you find something that fits. Keep your blog’s purpose in mind and make sure the name reflects it.
Tell friends and family about your ideas for feedback. Sometimes, others can see things you might miss.
P.S. Don’t forget that your domain name (also known as your blog name) is free if you sign up for Bluehost for your blog! You can click here to get your domain name for free.
4. Design your blog layout
The layout of your blog is super important. It helps your readers find what they need and enjoy their visit.
You have three main options when it comes to designing your personal finance blog:
Doing it yourself
Paying a web designer for a custom design
Getting a premade blog layout – this is what I recommend new bloggers do!
Doing it yourself is usually the cheapest, but it can be quite time-consuming. Paying for a custom web design is usually expensive.
I’m a big fan of simply getting a premade design. They are more affordable than a custom design and still look really good. One premade blog design site that I recommend is Restored 316 (my favorite!). If you need to build a website that is custom, professional, and budget-friendly, they have you covered! There is no need to code or stress over graphic design, either. These templates are easy to use.
Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).
5. Create the main pages for your blog
To make your personal finance blog successful, start by setting up key pages.
These pages are important, as they help your readers navigate your site easily and find the information they need.
Your key pages usually include your:
Homepage – This is the first impression your blog readers get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about and gets them to click around your blog further. This should be welcoming and easy to navigate – make it clear what your blog is about and include links to your main blog topics.
About page – This is where you can tell your story. Share who you are, why you started the blog, and what your readers can expect. When I find a new blog, I like heading to their About page to learn more about them and their story – so don’t skip this page!
Contact page – This page makes it easy for readers to reach you. You can add a contact form or your email address (I usually prefer just listing your email address). This allows readers, potential partners, and advertisers to get in touch with you.
Privacy Policy page – This is where you explain how you collect and use data on your site. This is important for building trust and complying with legal requirements. Now, don’t worry if you don’t know what to write, there are many templates online that you can use. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosure page – If you earn money through affiliate links or sponsored posts, let your readers know. This keeps your blog transparent and trustworthy.
There are other pages that you may want to add as well, it just depends on what you want and how detailed you want to get. The above is a great starting point.
Other pages that you can add down the line (you don’t want to overwhelm yourself too much, especially in the beginning) may include a Work With Me page (if you offer any freelance services), FAQ page (to answer common questions readers may have), Resources page (to showcase the products that you use), and a Press page (to show your readers where you have been mentioned in the press).
6. Start social media accounts for your blog
Creating social media accounts can help your blog grow because it can make it easier for more people to find your blog.
The social media accounts that you can start include:
Facebook
Pinterest
Instagram
Twitter
TikTok
Now, you definitely do not need to be active on all of these social media accounts, but I do usually like to claim my blog name on each so that no one else can take it.
Once you have your social media accounts set up, I also recommend that you add the links to your blog’s homepage so that your readers can easily find you on social media.
7. Create a content plan
Your content plan is what you’ll write about on your blog.
First, think about who your audience is. Do they want to save money, get out of debt, or invest wisely? Knowing this helps you create content that speaks to their needs.
Next, brainstorm topics that fit your blog. You can start with basic personal finance tips, budgeting hacks, or ways to save more money each month.
Once you have a list, set up an editorial calendar where you think about how often you’ll publish new posts. It could be once a week, twice a week, or even daily. Consistency is important and I highly recommend writing at least one blog post each week.
Plan ahead by writing down specific ideas for each post. This helps you stay organized and makes sure that you always have something to write about.
Now, your blog content plan doesn’t have to be crazy; it can literally just be a list of blog posts – it all depends on how organized you want to be. For example, you can just make a list of blog posts that you want to write such as:
10 Simple Ways To Save Money Every Month
How To Create a Budget That Actually Works
Beginner’s Guide To Paying Off Debt Faster
How To Build an Emergency Fund on a Tight Budget
Smart Ways To Save for a Vacation Without Stress
Investing 101: How To Start With Just $100
5 Budgeting Mistakes To Avoid if You Want To Save More
How To Meal Plan and Save Money on Groceries
Tips for Teaching Kids About Money
How To Stop Impulse Buying and Save More
Side Hustles That Can Help You Pay Off Debt
How To Improve Your Credit Score in 6 Months
Saving vs. Investing: What’s Best for Your Goals?
Frugal Living Tips That Don’t Feel Like Sacrifice
How To Use Cash Envelopes To Control Spending
These ideas could easily fill up your editorial calendar and help you stay organized and consistent with your posts!
8. Start writing blog posts
Once your blog is set up, it’s time to write your first blog post!
Below are some tips for writing your first personal finance blog post:
Write in a way that is easy to understand. Use short sentences and simple words. Remember, you want to help and not confuse your readers.
Add personal stories or experiences. This makes your blog more relatable and interesting. People love reading about real-life situations.
Break up your text with headings, bullet points, or images to make your posts easier to read. Don’t forget to proofread your work before you publish it.
Ask your readers questions at the end of your posts. This can encourage them to leave comments and interact with your blog.
9. Find ways to make money with your money blog
There are several ways you can earn money with your personal finance blog.
One way is through affiliate marketing. You can partner with companies that have affiliate programs like Amazon. When someone buys an item through your link, you earn a commission. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
Ad revenue (display ads) is another option. You can place ads on your blog using services like Google AdSense, Mediavine, or Raptive Ads. When visitors see or click these ads, you make money.
You might also explore sponsored posts; this is where you partner with a company and they pay you for a review, a mention, or a blog post that talks about their product.
Selling products/services that you create is a good strategy too to make money with a finance blog. You can sell printables, write ebooks, provide consulting services, or teach online courses.
As you can see, there are many ways to make money with a personal finance blog. For me, I like to do a little bit of everything so that I am diversified with my income streams from my blog.
10. Grow your personal finance blog
To get readers to your finance blog, you need to promote it.
Some ways to grow your personal finance blog include:
Start by sharing your blog posts on social media platforms like Facebook, Pinterest (I recommend that you create a new Pinterest pin for all of your blog posts), and Instagram.
Guest post on other finance blogs. This can introduce you to new readers who might be interested in your content. For example, you could guest post and write about how you paid off your debt.
Email marketing is another effective way. I highly recommend that you find ways to get readers to subscribe to your email newsletter so that you can send updates and share new blog posts regularly. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Engage with your readers by responding to their comments and emails. Building this relationship can encourage them to share your blog with others. I ALWAYS respond to comments, emails, and messages because I think it’s the nice thing to do when your readers are taking time out of their day to write something to you.
Use search engine optimization (SEO) techniques and keyword research. This helps your blog show up in search results when people look for topics you’ve written about.
Promoting your blog takes time and effort. It takes time to grow a new personal finance blog, so try not to be too sad in the beginning if it takes time – that is completely normal.
Frequently Asked Questions
If you’re thinking about starting a personal finance blog, you might have some common questions. Here’s what you need to know to get going.
How much money do personal finance bloggers make?
The amount of money that a personal finance blogger can make varies widely. I have made over $5,000,000 blogging over the years, and I know many others who make a full-time income from their personal finance blog as well. Successful bloggers can make thousands of dollars each month through ads, affiliate marketing, sponsored posts, and digital products.
Is it too late to start a personal finance blog?
No, it’s not too late to start a personal finance blog. There’s always room for fresh voices and new perspectives in personal finance.
Do I have to have a degree in finance to start a personal finance blog?
You don’t need a finance degree to start a personal finance blog. Many bloggers share personal experiences, research, and advice.
How can I make my personal finance blog stand out from others?
To make your personal finance blog stand out from others, I recommend that you focus on your unique experience with the topic that you are writing about. For example, you could share personal stories and actionable advice for what you did to pay off your student loans or to start investing.
Is a personal finance blog profitable?
Yes, a personal finance blog can be profitable. I have made over $5,000,000 from my personal finance blog over the years, all by working from home on the internet.
How To Start a Finance Blog – Summary
I hope you enjoyed my article on how to start a finance blog.
I’ve been running this finance blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.
Starting a personal finance blog changed my life, and it could do the same for you. Sharing my money-saving tips not only helped others but also led me to financial freedom and a career I love.
There are so many different finance niches that you could write about, whether it be budgeting tips for beginners or financial advice for those who want to retire early. Plus, you don’t need to be an expert to start a personal finance blog – many people want to hear about real people’s real experiences and insights, including their journey with personal finance (so that they can learn real tips!).
Whether you’re looking to earn a little extra or turn blogging into a full-time job, this guide will help you start a successful personal finance blog that makes a real impact.
Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.
Do you want to learn how to start a personal finance blog?