Here’s what you need to know.

Overview and key takeaways

• An affidavit is a sworn, written statement that can be used as evidence in legal proceedings. 
• In many jurisdictions (but not all), an affidavit must be notarized to be legally valid. 
• Making false statements in an affidavit can result in serious legal consequences, including potential perjury charges, so it’s important to be as accurate as you can.
• Be sure to keep your affidavit on file along with any other legal documents.

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Affidavit definition and examples

An affidavit is a voluntary, legally binding written statement of facts made under oath and generally verified by a notary public or other authorized official. When you sign an affidavit, you’re declaring that everything in the document is true to the best of your knowledge, making it a powerful legal tool that courts and government agencies rely on for verified information.

Affidavits may be requested for:

• Insurance claims
• Lost official documents
• Custody disputes
• Estate and probate matters
• And many other legal proceedings

Key components of an affidavit

Affidavits need to contain certain essential elements to be considered legally binding. While the requirements can vary from place to place, most affidavits need to include some form of the following three things.

1. Background information of the affiant

The affiant (the person making the statement) must provide complete identifying information in the document. This includes their full legal name and current address as well as a brief statement about how they’re connected to the case or matter at hand. 

The important thing is to establish your identity with enough certainty that the court (or government official) can rely on it.

2. Statement of facts

The heart of the affidavit is the statement of facts that you’re swearing are true. The statement should be clear and concise, written in first person (“I did this”; “I saw that”), and ideally organized into numbered paragraphs. 

Most importantly, the affidavit should be limited to facts that you personally know to be true, not things you only believe are true because you heard them from someone else. It’s important not to include any opinions or conclusions unless they’re specifically required by the circumstances of the case.

3. Notarized signature or other verification

The signature section completes the affidavit. It includes the affiant’s signature and the date of signing as well as the notary public’s signature and official seal. In some cases, signatures may also be required from people who witnessed you signing the statement.

Why your affidavit needs to be accurate

The accuracy of your affidavit isn’t just about good record-keeping — it’s a legal requirement with serious consequences for non-compliance.

What could happen if it isn’t

Making false statements in an affidavit can lead to perjury charges and criminal penalties, including fines and possible jail time. Your related legal proceedings could be dismissed, and your credibility in future legal matters may be permanently damaged. 

You could also face civil liability for any damages caused by your false statements — meaning you could be sued in court by the person your false affidavit harmed.

Different types of affidavits

Affidavits serve various purposes in legal and administrative proceedings. Here are some common types you might encounter:

Affidavit of identity

Like you might expect, an affidavit of identity serves to verify someone’s identity for various official purposes. It’s commonly used when opening bank accounts or applying for government benefits. These documents are also essential for correcting official documents and claiming inheritance or property. 

Affidavit of support

Affidavits of support are particularly important in immigration cases. They demonstrate (and promise) the affiant’s financial ability to support someone, and they establish the relationship between the parties. They typically include information about living arrangements and financial documentation to prove that the supporter can meet their stated obligations.

Affidavit of service

An affidavit of service provides proof that legal documents were properly “served,” or delivered. It records the date and time of delivery along with the method of service used. The document includes detailed information about the recipient and the server’s confirmation of delivery, creating an official record of proper legal notification.

Affidavit for divorce or custody

Don’t confuse an affidavit for divorce with a more general affidavit used in a divorce. An Affidavit for Divorce is a specific form in some jurisdictions that can have specific legal consequences. But many divorces require general affidavits, which aren’t different from any other affidavit — they’re just asking for specific information, such as statements about your financial situation or child custody arrangements.

If you’re ever in doubt about a specific affidavit or any other legal document, consult an attorney who’s licensed to practice law in the relevant jurisdiction.

How to write an affidavit

While the specific steps can vary depending on where the affidavit is being used and what’s required, these general guidelines can help.

Step-by-step guide to drafting

1. Consider giving your affidavit a title to help the court identify your document.
2. Identify yourself, including who you are and where you live.
3. Briefly explain your relationship to the matter at hand.
4. Write your statement of facts in clear, numbered paragraphs.
5. Try to keep it organized — be willing to go through a few drafts before your affidavit is finalized.
6. Once you’re satisfied with it, be sure to wait and sign it in front of a notary (or any other official and/or witnesses that may be required).

Why do affidavits need to be notarized?

A notary public will review your identification (such as a driver’s license or passport) before notarizing your statement. Their notary signature and seal help to assure the court that the person who signed the affidavit is who they claim to be.

Before notarizing an affidavit, the notary will:

• Verify the identity of the signer
• Confirm that the signature was made willingly
• Confirm the date of signature
• Apply their signature and seal to the affidavit

How to file an affidavit

Filing requirements vary depending on the purpose and jurisdiction of the affidavit. If the affidavit is for a legal proceeding, the attorney who requested the affidavit will probably want to file it for you.

FAQs about affidavits

What is the purpose of an affidavit?

An affidavit serves as sworn testimony in writing, allowing courts and other authorities to rely on statements made outside of court. It creates a formal record of facts that can be used as evidence in legal proceedings or to support various applications and claims.

Can I notarize my own affidavit?

No, even if you’re a notary public, you can’t notarize your own affidavit. This would create a conflict of interest, violate notary laws, and render the affidavit invalid. Always have your affidavit notarized by an independent notary public.

Use these fundamental concepts to build a strong financial foundation.

Personal finance is for everyone

Understanding the ins and outs of personal finance isn’t just for the wealthy or financial experts. It’s for everyone. It can help you make good decisions, achieve your goals, and handle unexpected expenses without panic. 

By mastering the basics, you can take control of your money rather than letting it control you.

Budgeting

Taking control of your money starts with creating a budget — a simple plan for how you’ll spend and save your money each month. 

A budget helps you see where your money is coming from and where it’s going.

How to create a budget

1. List your monthly income

Write down all the money you receive each month, such as:

• Your paycheck after taxes
• Side job or freelance earnings
• Any other income (like child support)

2. List your monthly expenses

Make a list of everything you spend money on each month:

• Fixed expenses (stay the same): rent or mortgage, car payments, insurance, subscriptions
• Variable expenses (can change): groceries, utilities, transportation, entertainment

3. Calculate the difference

Subtract your total expenses from your total income:

• If you have more income than expenses, you’re doing great. 
• If your income and expenses are the same, you’re essentially living paycheck to paycheck. 
• If you have more expenses than income, you’re spending more than you earn—and probably taking on debt to get by.

A lot of people are living paycheck to paycheck or spending more than they make these days, so if you’re in that boat, you’re not alone. 

Wherever you are today, consider it a starting point. Look for places to cut back on your spending so you’ll have more room to manage surprises, pay off debt, and save for the future.

4. Adjust your spending

Look for ways to spend less. Here are a few ideas:

• Eat out less and cook at home
• Cancel subscriptions you don’t use
• Find deals and use coupons

Small changes can make a big difference.

5. Set your financial goals

Decide what you want to achieve, such as:

• Build an emergency fund
• Pay off debt
• Save for something special

Keep these goals in mind as you plan your budget.

6. Choose a budgeting method

Pick a budgeting style that fits you:

• 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings/debt
• Zero-based budget: Assign every dollar a job until you reach zero
• Envelope system: Use cash for different spending categories to control spending

If you aren’t sure which one sounds right for you, this post walks through them all.

7. Track your spending

Keep an eye on your expenses:

• Use a tool like Quicken Simplifi to monitor spending
• Note expenses in a notebook or app
• Review your spending regularly

8. Review and adjust monthly

Check your budget every month:

• Update for any changes in income or expenses
• Make sure you’re progressing toward your goals

By following these steps, you’ll create a budget that helps you manage your money effectively and work toward a secure financial future.

Savings

Building up your savings is a step toward financial security and achieving your future goals. Whether you’re saving for an emergency fund, a big purchase, or just want a financial cushion, setting aside money regularly can make a significant difference over time. Let’s explore some practical steps to help you start saving effectively.

1. Set clear savings goals

Knowing what you’re saving for can motivate you to stick to your plan.

• Emergency fund: Aim to save at least three to six months’ worth of living expenses.
• Big purchases: Saving for a car, home, or vacation.
• Future plans: Setting aside money for education or retirement.

Next steps:

• Decide on a specific goal and the amount you want to save.
• Break down your goal into manageable monthly savings targets.
• Write down your goals and keep them where you can see them regularly.

2. Keep your savings separate

Keeping your savings in a separate account makes it less tempting to dip into them for everyday expenses.

Next steps:

• Avoid linking your savings account to your debit card.
• Treat your savings as off-limits except for their intended purpose.

3. Open banking accounts

When you save money in an account with a higher interest rate, your money grows faster. There are some great banks both online and offline, depending on your needs.

• Checking accounts: Designed for daily transactions like paying bills and making purchases. They usually come with a debit card and checks, making it easy to access your money quickly.
• Savings accounts: intended for money you want to set aside for future needs. They typically earn interest, helping your money grow over time.
• For higher interest rates: High-yield savings accounts offer better interest rates than traditional savings accounts, so your money grows faster. Just like regular bank accounts, your money is protected through the FDIC up to $250,000

Next steps:

• Use your checking account for everyday expenses and your savings or high-yield account to store money for future goals.

4. Automate your savings

Making your savings automatic can help you stay consistent without having to think about it.

Next steps:

• Set up automatic transfers from your checking account to your savings account each time you get paid.
• Even small amounts add up over time, so start with what you can afford.
• Consider increasing the transfer amount when you can, like after a raise or when you’ve paid off a debt. 

5. Monitor and adjust your savings plan

Regularly checking on your savings helps you stay on track and make adjustments as needed.

Next steps:

• Use tools like Quicken Simplifi to track your savings and see your progress.
• Review your bank statements monthly to see how your savings are growing.
• Adjust your savings plan if your financial situation changes or if you reach a goal and want to set a new one.

Debt and credit

Carrying extra debt can put a heavy strain on your finances, making it harder to achieve your financial goals. High levels of debt mean that more of your income goes toward interest payments, leaving less money for saving, investing, or everyday expenses. 

By managing your debt effectively, you can reduce stress and improve your overall financial well-being.

Understanding your debt

The first step in tackling debt is to get a clear picture of what you owe. Make a list of all your debts, including credit cards, student loans, car loans, and any other obligations. 

For each debt, note the following:

• Outstanding balance: How much do you currently owe?
• Interest rate: What is the annual percentage rate (APR) for each debt?
• Minimum monthly payment: What is the smallest amount you need to pay each month?

Having this information in one place gives you a better view of your financial obligations. It helps you identify which debts are costing you the most, so you can prioritize them accordingly.

Creating a debt repayment plan

Once you understand your debts, the next step is to create a plan to pay them off. Prioritizing debts with higher interest rates can save you money over time because these debts accumulate interest more quickly. Here are two strategies you might consider:

• Debt avalanche method: Focus on paying off debts with the highest interest rates first while making minimum payments on the others. This method can reduce the total amount of interest you pay over time.
• Debt snowball method: Start by paying off the smallest debts first to gain a sense of accomplishment and build momentum. Once a debt is paid off, apply that payment amount to the next smallest debt. This approach can be motivating and help you stay committed to your plan.

Choose the method that best fits your personality and financial situation. The key is to stick to your plan and adjust it if your circumstances change. For example, if you receive a bonus or tax refund, consider putting some of that extra money toward your debts to accelerate your progress.

By actively managing your debt, you’re taking control of your financial future. Reducing or eliminating debt frees up money each month, giving you more flexibility to save for emergencies, invest for the future, or enjoy life’s pleasures without financial worry.

Building and maintaining a good credit score

Your credit score affects your financial opportunities. Build and maintain it by paying bills on time, keeping credit card balances low, and regularly checking your credit report for errors. These simple steps can help you achieve your long-term financial goals.

Next steps:

Pay all bills on time, reduce credit card balances, and check your credit report for errors to see gradual improvements.

Building a strong credit score can open doors to better financial opportunities, helping you achieve your long-term goals.

Investing and retirement planning

Investing and planning for retirement can help you build long-term financial security. Even if you’re just starting, taking small steps now can make a big difference in the future. 

Here’s how you can begin.

Understand the basics of investing

Investing means putting your money into assets that have the potential to grow over time, like stocks, bonds, or mutual funds.

Next steps:

• Learn the fundamentals: Read beginner-friendly articles about investing to get started.
• Set investment goals: Determine what you’re investing for—retirement, a home, education—and how long you have to reach these goals.
• Create a plan: Work with a financial planner to build a plan that works well for your situation, with a level of risk that makes you feel comfortable.

Start with retirement accounts

Retirement accounts offer tax advantages that can help your money grow faster.

Next steps:

• Join your employer’s plan: If available, sign up for your company’s 401(k) or 403(b) plan.
• Contribute regularly: Aim to contribute a percentage of your income each month.
• Take advantage of employer match: If your employer offers matching contributions, contribute at least enough to get the full match — it’s essentially free money.
• Open an IRA: If you don’t have an employer plan, consider opening a traditional or Roth Individual Retirement Account (IRA) at a bank or brokerage.

Begin investing in small amounts

You don’t need a lot of money to start investing.

Next steps:

• Use micro-investing apps: Platforms like Acorns or Stash let you invest small amounts regularly.
• Automate your investments: Set up automatic transfers from your bank account to your investment account to build the habit of investing.

Diversify your investments

Spreading your money across different types of investments can reduce risk.

Next steps:

• Read up on investing for beginners
• Learn more about risk tolerance
• Learn more about how to diversify your portfolio

Set clear retirement goals

Knowing what you need for retirement helps you plan more effectively.

Next steps:

• Estimate your retirement needs: Use our free online retirement calculator to figure out how much money you’ll need when you retire.
• Create a plan: Work with a financial advisor to plan out the best way to reach your goal.

Monitor and adjust your plan

As your life changes, your investment plan may need to change too.

Next steps:

• Review your investments annually: Check how your investments are performing and make adjustments if necessary.
• Increase contributions over time: When you get a raise or reduce expenses, consider increasing the amount you invest.
• Rebalance your portfolio: Ensure your investment mix still aligns with your goals and risk tolerance.

Seek professional advice

Getting help can make a big difference.

Next steps:

• Consult a financial advisor: They can provide personalized advice based on your situation.

Remember, investing and retirement planning don’t have to be complicated. Start small, stay consistent, and don’t hesitate to seek help if you need it.

Continuing your financial education

By understanding the basics and staying committed to your financial goals, you can build a secure and fulfilling future. Remember, it’s never too early or too late to start managing your money wisely.

Here are some government and educational resources to help you learn more:

1. MyMoney.gov

MyMoney.gov is a website created by the Federal Financial Literacy and Education Commission. It’s a one-stop shop for learning the basics of financial management. 

The site covers a wide range of topics, including budgeting, saving, investing, and understanding credit. It provides practical tips and tools to help you make informed financial decisions. 

2. Investor.gov

Operated by the U.S. Securities and Exchange Commission (SEC), Investor.gov is designed to help you become a more informed investor. The website offers educational materials on how markets work, the different types of investment products available, and how to protect yourself from fraud. 

It’s a great place to learn about investing fundamentals, assess your risk tolerance, and understand the importance of diversification. The site also features calculators and quizzes to test your knowledge and plan for your financial future.

3. Consumer Financial Protection Bureau (CFPB)

The CFPB provides a wealth of information to help you navigate the financial challenges of everyday life. Their website offers resources on managing debt, understanding mortgages, handling student loans, and planning for retirement. 

They also provide tools to assist with budgeting and tips for avoiding financial scams. The CFPB’s materials are written in clear, accessible language, making complex topics easier to grasp.

Track your finances

The best way to keep your finances moving in the right direction — from your budget to your retirement plan — is to track them regularly. 

And the easiest way to do that is with Quicken. 

Manage your budget, track your debt, watch your investments, grow your savings, and reach your goals with confidence.

Use these personal finance tips to help you take control of your money and build a secure financial future.

1. Understand your net worth

Knowing your net worth gives you a clear picture of your overall financial health. 

Start by listing all your assets, such as cash, savings accounts, investments, your home, car, and any valuable possessions. Next, list all your liabilities, including mortgages, loans, credit card balances, and other debts. Subtract your total liabilities from your total assets to determine your net worth.

This figure helps you understand where you stand financially. It might be positive, indicating that you own more than you owe, or negative, showing that your debts exceed your assets. Either way, use it as a starting point you can build from.

Understanding your net worth helps you make informed decisions about spending, saving, and investing. It’s like having a financial snapshot that guides your future planning.

2. Create a realistic household budget

A well-planned budget is a fundamental tool for effective financial management. Start by tracking all your income and expenses over a month. Include everything—your salary, side income, bills, groceries, transportation, entertainment, and even small purchases like coffee or snacks.

Once you have a clear picture of your spending habits, categorize your expenses into essentials and non-essentials. Essentials include housing, utilities, groceries, insurance, and debt payments. Non-essentials cover things like dining out, hobbies, and entertainment. Create a budget that aligns with your actual needs and goals, ensuring it’s realistic and sustainable.

Avoid the temptation to slash expenses too drastically, as this can lead to frustration and make you abandon your budget. Instead, find a balance that lets you meet your necessities while also setting aside money for savings and discretionary spending. 

Regularly revisit and adjust your budget to reflect changes in your financial situation, keeping it relevant and effective.

3. Build an emergency fund

Life is unpredictable, and unexpected expenses can arise at any time. An emergency fund acts as a financial safety net, providing peace of mind and protecting you from potential financial hardship.

Aim to save enough to cover three to six months of living expenses. If that seems daunting, start with a smaller goal, such as saving $1,000. Begin building your emergency fund now and contribute to it regularly. Keep this money in a separate, easily accessible account so it’s available when needed but not tempting to spend on non-emergencies.

An emergency fund helps you navigate situations like job loss, medical expenses, or unexpected repairs without derailing your long-term financial plans. 

4. Save for retirement early and consistently

Saving for retirement might seem distant, but starting early gives your money more time to grow through compound interest. 

If your employer offers a retirement plan like a 401(k) or 403(b), take advantage of it. Contribute enough to receive any employer matching contributions — this is essentially free money added to your retirement savings.

As your income increases, consider boosting your contributions. Even small increases can significantly impact your retirement fund over time. Additionally, explore other retirement savings options, such as traditional or Roth Individual Retirement Accounts (IRAs), to further secure your financial future.

Consistent saving, even if modest, sets the foundation for a comfortable retirement and reduces financial stress later in life. It’s an investment in your future self.

5. Manage and reduce debt

Debt can hinder your financial progress, but with a strategic approach, you can manage and eliminate it over time. Begin by listing all your debts, including balances, interest rates, and minimum payments. This includes credit cards, student loans, car loans, and mortgages.

Develop a plan to pay off your debts. One strategy is focusing on high-interest debts first, as they cost you the most over time. Alternatively, you might choose to pay off smaller debts first to gain momentum and a sense of accomplishment.

Consider reducing discretionary spending and redirecting those funds toward debt repayment. Avoid accumulating new debt by limiting unnecessary purchases and using credit responsibly. 

By actively managing your debt, you’ll free up more income for savings and investments, bringing you closer to your financial goals.

6. Protect yourself with insurance

Insurance is a vital component of a comprehensive financial plan. It safeguards you and your loved ones from significant financial loss due to unexpected events.

Ensure you have appropriate coverage in the following areas:

• Health insurance: Covers medical expenses and protects against high healthcare costs.
• Life insurance: Provides financial support to your dependents in case of your passing — especially important if others rely on your income.
• Disability insurance: Replaces a portion of your income if you’re unable to work due to illness or injury.
• Homeowners or renters insurance: Protects your property and belongings from damage or theft.
• Auto insurance: Covers expenses related to car accidents or vehicle damage, often required by law.

Regularly review your policies to ensure they meet your current needs and adjust coverage as your circumstances change. Adequate insurance provides peace of mind and financial security.

7. Plan for healthcare contingencies

Planning for potential healthcare emergencies is essential, even if it’s uncomfortable to consider. Establishing a healthcare contingency plan ensures your wishes are respected if you’re unable to make decisions for yourself.

Set up a healthcare power of attorney, designating someone you trust to make medical decisions on your behalf. Additionally, create a living will to outline your preferences for medical treatment in specific situations.

And, to protect your finances, set up a power of attorney that gives someone you trust the ability to manage your finances for you in case you’re ever incapacitated for more than a few days.

Having these documents in place provides clarity and guidance for your loved ones during difficult times, reducing stress and uncertainty.

8. Keep your financial records organized

Staying organized with your financial records makes managing your money more efficient and less stressful. Keep track of all your accounts, debts, bills, and important documents in a secure and accessible place.

Consider using Quicken Simplifi or other apps to monitor your finances, set reminders for bill payments, and track spending habits. This not only helps you stay on top of your financial obligations but also provides a comprehensive view of your financial health.

In case you become unable to manage your finances, organized records make it easier for someone you trust to step in and handle your affairs, ensuring continuity and preventing missed payments or other issues.

9. Invest wisely for the future

Investing is a powerful tool for growing your wealth over the long term. By putting your money to work, you can achieve financial goals more quickly and build a solid foundation for the future.

Before you start investing, educate yourself about different investment options and strategies. Consider your risk tolerance—the level of risk you’re comfortable with—and choose investments that align with your financial goals and timeline.

Diversify your investments across various asset classes, such as stocks, bonds, and real estate, to manage risk effectively. You might also seek advice from a financial advisor to develop an investment plan tailored to your needs.

Remember, investing is a long-term endeavor. Stay patient and focused on your goals, even during market fluctuations. Consistent investing can significantly enhance your financial position over time.

10. Prepare your estate plan

Estate planning ensures that your assets are distributed according to your wishes, prodviding for your loved ones after you’re gone. It’s an important step for anyone, regardless of wealth.

Start by drafting a will, specifying how your assets should be divided and naming guardians for any minor children. Without a will, state laws will determine the distribution of your assets, which may not align with your preferences.

Consider establishing a living trust to help your heirs avoid probate, a potentially lengthy and costly legal process. A trust can also provide more control over how and when your assets are distributed.

Regularly review and update your estate plan, especially after major life events like marriage, divorce, the birth of a child, or significant financial changes. Keeping your plan current ensures it reflects your wishes accurately.

Final thoughts

Managing your personal finances is a lifelong endeavor, but taking proactive steps now can set you on a path to long-term security and peace of mind. Remember, it’s about making informed decisions, staying organized, and adapting as your circumstances change. 

With dedication and perseverance, you can achieve your financial goals and enjoy a stable and prosperous future.

Most investments have some degree of risk — it’s up to you to choose what type of risk you’re okay with.

1. High-yield savings accounts

High-yield savings accounts (HYSAs) provide a relatively safe haven for your hard-earned cash. You can open an account online through traditional banks, credit unions, and even some brokerages. 

While HYSA interest rates vary between financial institutions, they typically outshine traditional savings rates. They may even beat inflation. Plus, you can take out the money whenever you need it. Another benefit is that FDIC insurance protects the cash in case of bank failure — up to $250,000 per account type. 

In other words: HYSAs limit the risk you’ll lose money, making them useful for:

• Cash for near-term purchases 
• Emergency funds
• “General” savings you don’t want to expose to higher risk 

However, you’ll want to check for account fees, as these can eat into your earnings. 

2. Certificates of deposit (CDs)

Certificates of deposit (CDs) let your money grow for a set time, from a few months to several years. With returns that can match or beat HYSAs, CDs offer another way to save. Many banks and credit unions offer CDs, complete with FDIC insurance. 

However, unlike some savings accounts,  CDs may require a minimum deposit. Many also “lock up” your money for a period of time. Trying to access your cash early may trigger fees — typically a portion of your earned interest. Or, you can opt for a no-penalty CD that lets you access your money when you need it. (Usually in exchange for lower returns.) 

3. Money market accounts and funds

Money market assets mix safety and yield, making them attractive if you want liquidity and returns. They’re often used to stash cash you may want to access in the near future, such as for a large purchase or investment. 

Money market accounts

Money market accounts, found at many banks and credit unions, combine some features of savings and checking accounts. Like most deposit accounts, they protect your dollars with FDIC insurance. They may offer debit and ATM privileges but limit how often you can access your money. Money market accounts also tend to pay higher interest rates than regular savings accounts. 

Money market funds

Money market mutual funds invest in shorter-term, lower-risk assets like Treasurys, CDs, short-term corporate debt, or municipal bonds. Since they tend to focus on high-quality assets, they can be less volatile than other types of funds. However, you may earn smaller returns than riskier investments. 

Money market funds offer diversification and liquidity. But they also have downsides, like fluctuating income and lack of FDIC insurance. 

4. Treasury securities

Treasury securities are issued and backed by the U.S. government. Technically, buying Treasurys means loaning money to the federal government, which agrees to pay you back with interest. Since the government guarantees repayment, they are considered lower-risk investments. 

Interest earned from Treasury securities is exempt from state and local taxes, though you still owe federal taxes. You can invest in several kinds of Treasurys depending on your needs. 

For instance, short-term investors may invest in Treasury bills, which mature in under 1 year, or notes, which mature in 2–10 years. 

Longer-term investors may choose Treasury bonds, which usually mature in 20–30 years. They also pay interest every 6 months, offering regular, long-term income. Series I bonds in particular adjust their rates to match inflation, making them helpful to combat rising costs. 

5. Municipal and corporate bonds

Like stocks, most bonds involve more risk than savings options, but they’re a great way to diversify your portfolio. Bonds are a method of loaning money to governments or companies in exchange for interest payments. They can offer reliable income with varying levels of risk. 

Municipal bonds

Municipal bonds, or “munis,” are issued by states, cities, and other government bodies. The issuers sell them to fund daily operations or building projects. Profits on these relatively low-risk assets are exempt from federal and sometimes local taxes. While you can usually buy them right from the issuing entity, they’re somewhat illiquid (hard to sell). 

Corporate bonds

Corporate bonds are fixed-income securities issued by public companies. Corporate bonds often pay more interest than government bonds, increasing your income potential.

Credit agencies rate the ability of companies to repay their bonds. Higher ratings suggest stronger financial health and the potential to make its payments over time. Companies with better credit ratings issue “investment-grade” bonds. However, corporate bonds may present more risk if the company struggles and can’t make payments. 

Bond funds

Another way to profit from bonds is through bond ETFs and bond mutual funds. 

These funds pool together bond investments and then sell shares in the fund, letting you instantly own parts of many bonds. Since the funds can regularly buy and sell assets, you don’t need to worry about managing your holdings. 

You can choose funds that meet your goals, like higher-yield or eco-friendly bonds that raise money for environmentally conscious projects. That said, you’ll want to watch for higher fund or management fees.  

6. Fixed annuities

Insurance companies sell annuities to investors seeking guaranteed returns, usually over 3–10 years. These investments require paying into the annuity, either over time or in a lump sum. They then earn tax-deferred interest, which delays taxes until it’s time to take your payment. (Again, either in a lump sum or over time.) 

Many also adjust with the cost of living to ensure your money keeps pace with rising prices. 

The downside: many annuities lock up your funds now in exchange for cash later, so you can’t easily touch your money. However, their tax-deferred growth and steady income potential can give you peace of mind in retirement.  

7. Preferred stocks

Stocks in general present more risk than many other assets on this list. However, owners of preferred stocks get a “preferred” claim on the company’s assets and earnings compared to common stockholders — people who own regular shares. 

As a result, if a company issues dividends, preferred stockholders get paid first. If the company goes bankrupt, preferred stockholders are also more likely to receive compensation before common stockholders. These investments may offer higher payouts with regular income and more predictability. 

Preferred stocks can blend certain features of bonds and common stocks, like:

• Fixed dividends
• Higher payouts than common stock
• Giving investors “dibs” on assets over common stockholders if the company goes bankrupt
• The possibility of lower taxes on dividends

Investors can use preferred stock to earn regular income with lower risk than buying common stock. Since preferred stocks trade on exchanges, they’re relatively liquid (easy to buy and sell) investments. However, they don’t usually come with voting rights. 

8. Real estate crowdfunding

Until recently, real estate investing required large sums of money to get started. Crowdfunding real estate platforms now gives everyone the chance to diversify and gain property exposure with smaller amounts. 

These platforms let you profit from real estate without dealing directly with a mortgage or property ownership. By pooling your money with others, you can invest in larger ventures than you could not afford alone. However, most crowdfunding sites require minimum investments, incomes, or net worths. As always, do your research!

By some estimates, annual returns can reach 8–14%, which can beat the S&P 500’s long-term 10% average. 

9. Farmland investments

Historically, profiting on farmland involved working the land or selling it after its value rose. But as global food demand continues to increase and investment options improve, everyday investors can profit from these stable, long-term assets.   

Instead of buying the land yourself, which could cost millions, you can:

• Buy farmland through farmland-focused crowdfunding platforms   
• Invest through specialized REITs (real estate investment trusts) that buy, maintain, and/or operate properties and pass the profits to investors
• Purchase farmland-related stocks, mutual funds, or ETFs

Each of these options has upsides and downsides, but most let you get in (and diversify) with smaller sums.  

Choose wisely to secure your financial future

Lower-risk investments don’t have to be boring, but they should be dependable. Generally, interest-paying deposit accounts offer the most safety. Or, you can branch into less commonly traded assets like real estate or farmland. Like much in investing, the secret is balancing risk and reward (and a bit of research).

In your relationship, is one person a saver and the other a spender? Is one of you more conservative and the other a risk-taker? 

Conversations about money can easily turn into arguments, but it doesn’t have to be that way. Together, you can create a system for handling finances that will make you both happy. Here’s how.

Five secrets of a financially happy relationship

1. Agree to disagree about some things

There’s room for more than one attitude about money in a relationship. Recognize that both of your viewpoints are valid. You don’t have to see eye-to-eye on everything, but it’s essential to respect your partner’s feelings about money. Otherwise, you won’t be able to come up with a plan you’re both comfortable with.

If the saver’s happiness depends on feeling financially secure and the spender’s happiness depends on feeling free to enjoy life, earmark some money every month for both savings and fun purchases. Establish common ground by identifying the important financial goals you can agree on: funding retirement, paying for college, taking an annual vacation, etc.

2. Keep multiple accounts

No matter how close you are, allow some space for individual independence. Have a little money you can spend or save — without consulting each other. It may be good for each of you to have one account in your own name, even if you maintain joint checking and savings accounts for household expenses, and for long-term goals like retirement and college.

It’s also prudent for each of you to establish your own credit record; otherwise, you may find it difficult to borrow independently. So keep one credit card that’s in your name only, even if you use a joint credit card for your household purchases.

3. Share the bills

Find a system for paying bills that feels fair to both of you. Some couples pay their household bills from a joint account to which both partners contribute. Others divide the bills, with each partner paying their share from their individual accounts.

It’s also important to make sure the division of bills is fair and equitable for both partners. For example, if one of you earns $75,000 a year and the other earns $25,000, consider dividing your shared expenses proportionately. The one who makes three-fourths of the household income can pay for three-fourths of the bills, and the one who makes one-fourth of the income can pay one-fourth of the bills.

If that feels like it’s getting too into the weeds, having a joint account might be a better bet for you. Once you decide how much you’ll each contribute to your joint account every month, you can put your bills on autopilot so it isn’t a constant source of friction.

4. Invest as a team

If you and your partner each have a workplace retirement savings plan, sit down together and decide on a portfolio mix that uses both plans’ investment options. Once you’ve agreed on an overall allocation — say, 30% U.S. stocks, 15% international stocks, 50% bonds, 5% real estate/alternatives — implement your strategy by picking the best-performing funds from each plan.

When it comes to tax-advantaged retirement accounts, like your 401(k)s, one of you might also have access to more employer matching funds than the other. Don’t let monthly bills keep you from maximizing your retirement plan. Work together to make sure you’re capturing that free cash as a couple and setting your retirement goals together.

5. Communicate (and keep communicating)

This sounds easier than it sometimes is. Most couples are so busy working, raising children, chasing short-term goals, and running a household that they hardly have time to talk to each other. You may have to go out of your way to schedule a conversation about your finances, even twice a year. Still, don’t put it off. Treat those conversations like important, work-related appointments you need to keep.

Discuss whatever is on your mind, including your household budget, retirement portfolio, vacation expenses, and college funding for children. Plan to have these conversations in as relaxed an atmosphere as possible — it’s important to do it in a calm, focused environment. 

At the end of the day, committed relationships are financial partnerships — and like any successful partnership of equals, they depend on compromise and mutual cooperation.

Answering these 10 essential questions can help protect your assets and your heirs.

1. What assets do I own and who are my beneficiaries?

Whether you draw up a will yourself or seek professional guidance, start by creating a fact sheet of relevant data. Identify anyone with a stake in your estate: spouse, children, grandchildren, parents, siblings, etc. 

Then list your real estate property, personal possessions, and financial assets along with their value and where to find them (or records of them). Once you gather your financial information, you can use Quicken to keep it all in one places and keep it up to date. 

This provides a good working estimate of the value of your estate, which is the basis for estate taxes if any are due.

2. How should I legally express my intentions?

Different states have different rules about what’s required to make a will legal. If you don’t do things the right way, your will might not be valid, so make sure you understand the rules where you live. 

The best way to do that is either to hire an attorney or use a template service. If your will is relatively simple, like leaving everything first to your spouse and the to your children equally, a template service might be all you need. For more complex planning, an attorney is usually best.

You can also add specific bequests, such as making sure a certain piece of jewelry or art goes to a specific child or leaving a certain amount of money to a local charity. Just be sure to list these out clearly to make things easier for your executor.

3. Who will execute my will and manage my estate?

Wills often specify three separate roles subject to state laws: 

• An executor administers the settlement of your estate. 
• A trustee manages any assets until they’re distributed to your beneficiaries. 
• A guardian raises minor children, if the situation warrants. 

In case you’re incapacitated for a time before your death, which is not uncommon, you also should confer power of attorney on someone to manage your financial affairs, subject to provisions that you stipulate.

At the same time, consider a living will to make your wishes clear when it comes to difficult healthcare decisions.

4. Have I appointed guardians for my minor children and dependents?

• Select a guardian for your minor children and any dependents to ensure their care.
• Clearly state this in your last will and testament to avoid legal complications.

5. Should I set up trusts or power of attorney arrangements?

A trust is an agreement under which money or other assets are held and managed by one person for the benefit of another. Trusts serve many purposes, including financial support for minor children as well as providing personal and financial safeguards for beneficiaries. 

Trusts are commonly used to conserve or transfer wealth and avoid unnecessary taxes. Because the process of probate can take months or even years to complete, trusts that legally avoid the probate process can also save your family a significant amount of financial hardship — especially if you have family members who depend on your wealth for their support.

6. Have I met all legal formalities to make my will valid?

• Ensure you are of sound mind and have the mental capacity to create a valid will.
• Follow your state laws regarding witnesses, possibly involving a notary public, and include a self-proving affidavit.

Be especially careful when it comes to witnesses. In most states, a person who will benefit from your will can not be a witness to that will, so be sure your witnesses are not interested parties.

7. Have I considered tax implications for my beneficiaries?

Spouses can inherit assets without incurring federal tax, but assets and gifts transferred to other heirs may trigger taxes. The amount of that tax depends on current federal and state laws. 

In 2024, there is a federal inheritance tax, but the exemption amount is well into the millions. Unless your estate is worth more than $13.61 million, or $27.22 million for married couples, your heirs won’t pay tax on their inheritance.

Now, there’s also a gift tax that plays into it — if you’ve given your heirs more than the annual gifting limit in a given year, the additional amount reduces your estate tax exemption. 

However, if you have enough personal wealth for that to be a concern, you’ll probably want to hire an estate planning attorney to help you navigate your best options when it comes to wealth distribution and tax planning.

8. What if I want to leave money to charity?

Many Americans leave some amount of money or property to their favorite causes. You can leave all or partial interest in most assets to a legitimate charity that’s eligible for tax-deductible contributions. The IRS makes this determination, so you can find out which charities qualify by looking on the IRS website. 

There may also be rules for determining the value of assets with no obvious market value, as well as limits on the amount of the tax deduction you’re allowed to take. Gifts left to a regulated public charity that seeks donations, for instance, receive different tax treatment than assets left to a private family foundation or trust that your heirs control.

Gifting stock to a charity may also avoid significant capital gains taxation — just another reason to consider an estate planning attorney if you have a variety of personal assets and holdings.

9. Do I need to update my will due to life changes?

While a well-drafted will takes potential future changes into account, it’s always a good idea to update your will in the event of a major life change, such as a marriage, divorce, birth of a child, or death of an heir. 

Starting your own business can also have repercussions for your estate plan depending on the business structure you choose.

As a general rule, it’s a good idea to review your will every five years or so to see whether anything needs to be updated.

10. Where should I store my will and who should have copies?

Generally speaking, the will presented for probate needs to be the original paper copy that has your physical signature as well as the signature of the notary public and your witnesses. Decide on a secure location where you’ll keep it, but make sure someone you trust has access to it.

It’s also a good idea to provide your executor with a copy of your will, and make sure they know where they can find the original.

While there’s never anything easy about losing a loved one, you can lighten the load on your family by making sure your will is legally sound, clear about your intentions, and easy to access when the time comes.

Whether you’re a seasoned veteran or brand new to the process, we’ve compiled a few tips to help you choose a vehicle you’ll love without breaking the bank. Let’s get started!

Before you buy a car, start with these 2 questions

There are two main factors to consider when buying a car — what you need and how much you can afford. When it comes to financing your vehicle, you’ll probably need a loan; this is where the 20/4/10 rule comes into play. 

1. What kind of car do you need?

If you’re an apartment dweller in Haight-Ashbury and only need a car to get around town, you probably won’t need a Ford F-750 for your day-to-day ride. If you’re a rancher in West Texas, a MINI Cooper Clubman just isn’t up for the job. 

The common thread here? Necessity.

• Do you love road trips and need a car with good gas mileage? 
• Are you a working musician with a serious need for trunk space? 
• Need something that can fit 2 adults, 3 kids, and a Labrador retriever? 

List your needs and your wants, but be sure to star those must-haves. They’ll help you narrow down your search and keep you from giving up anything that’s important.

2. How much can you afford to pay?

Cars come in different shapes, sizes, colors — and prices. If you’re not sure how much car you can afford, or how big your car payment should be, that’s where the 20/4/10 rule can help.

What is the 20/4/10 rule?

The 20/40/10 rule is a set of 3 financial guidelines for buying a car that can help you decide how much you can really afford. You want to be able to meet them all:

• 20% down — be able to pay 20% or more of the total purchase price up front
• 4-year loan — be able to pay off the balance in 48 months or fewer
• 10% of your income — your total monthly auto costs (including insurance, gas, maintenance, and car payments) should be 10% or less of your monthly income

Example of the 20/4/10 rule

Here’s how the three guidelines work in practice. 

1. Start with the 20% rule. This may be a combination of cash and trade-in value on your current ride. 

• If you want to sell or trade in your current vehicle to help pay for the new one:
  • Estimate your current vehicle’s trade-in or sale value
  • Subtract any loan balance you still owe on that vehicle
• Add any cash you have saved up for a down payment
• Multiply the total by 5

Your total car price should be no more than that number — preferably less. 

2. Next, apply the 4-year rule. This one’s easy. As you’re calculating possible car loans, use a loan term of 4 years (48 months). A shorter term is fine — just don’t go longer.

3. Finally, apply the 10% rule. Take your monthly income and divide it by 10. Your total car costs each month should be no higher than that. That includes your car payment, insurance, maintenance, and gas. (Your insurance company should be able to give you an estimate before you buy the car.)

For your monthly income, use your net income — your monthly pay after taxes and other deductions are taken out. This gives you the clearest picture of what you have available to spend.

Why the 20/4/10 rule works

Each of the three guidelines is designed to help you budget appropriately, taking all of your car costs into account, so you can afford:

• Your car payments
• Car insurance
• Maintenance costs
• Gas money

Remember, this “rule” is actually a rule of thumb — it relies heavily on your own unique financial situation. Still, when determining the amount of money for your down payment, the length of your loan (and interest rate), and how much you can afford to spend on monthly payments, it does serve as a great guide. 

After all, you shouldn’t have to work three jobs to afford your vehicle — that would mean you purchased something outside your means. That dream Dodge Challenger Hellcat or Range Rover isn’t going anywhere; the 20/4/10 rule can provide a roadmap of what you can afford while you’re stashing away for the car of your dreams. 

How important is buying power (and what is it, anyway)?

The 20/4/10 rule is extremely helpful in determining your buying power, which is a crucial component of the car-buying process. 

What is buying power? In a nutshell, buying power is your ability to, well, buy things — not just what you can pay in cash, but what you can afford if you include a reasonable amount of credit for your financial situation. That’s why your credit score is an important aspect of your buying power — it helps determine the loan amount you’re eligible for as well as your interest rate. 

The good news? Car loans are “secured” by collateral (the car itself), which helps lower your interest rates. 

Because a bank can repossess your car if you stop making payments, lenders consider secured debt to be relatively low risk. That means car loans come with relatively low interest rates. Still, you want to get the best rate possible.

With a higher credit score, you’ll pay substantially less in interest over time, and your monthly payments will be much lower — meaning your car will be cheaper. 

Four ways to increase your buying power

Want to buy a better car? Level up your buying power. Here’s how.

1. Bring up your credit score

If you haven’t already, start by working to increase your credit score — a lower score makes lenders see you as a risky investment, meaning you’ll be approved for lower amounts at higher interest rates. 

To raise your score, start by paying down any outstanding debts you may have, automating your monthly debt payments, and creating a budget to stay within your means. 

Need help getting started? Read our guide to living a debt-free life.

Other ways to improve your credit score include:

• Experian Boost — this service offered by Experian boosts your credit score if you’ve been paying your bills and subscriptions on time. Note: don’t use it if you’ve missed any utility payments or have new accounts under three months old. In those cases, it can do more harm than good.
• Get inaccurate payments removed — you can reach out to your lenders if you have any inaccurate information, like missed payments or incorrect amounts on your record.
• Leave paid-off accounts open — if you’ve paid off a credit card, leave the account open and don’t run up the balance. Credit bureaus base part of your score on the age of your open credit lines: the longer, the better.
• Limit new accounts — it might be tempting to open a store credit card to save on purchases, but each hard inquiry will take its toll on your score. Try not to open any new accounts, especially since you’ll need to create a new line of credit for your vehicle loan. 

Remember, the better your credit score, the more you can get approved for, and the lower your monthly payments are likely to be. 

2. Think about buying used

Another way to increase your buying power is to look at used vehicles. As humans, we’re hard-wired to be attracted to bright and shiny — especially around the car dealership. But there are some solid deals to be had on used cars, and more often than not, the technological differences aren’t that big as long as you’re looking at models from the last 2 to 3 years. 

New vehicles depreciate in value immediately after they’re driven off the lot. Say you shell out a ton of cash for a brand new Porche Panamera and decide you don’t like it 3 months later — now you’re selling a used car, no matter how new it might feel. That’s going to cost you. In this scenario, it’s much more advantageous to be a buyer than a seller. 

Remember, though, that many used cars are no longer under warranty and could have hidden mechanical problems, so consider asking for a detailed CARFAX report before you buy. Also, keep an eye out for the going rates using Kelley Blue Book or Edmunds, and consider bypassing the headache that comes from haggling with a salesperson by using haggle-free options like CarMax or Carvana. 

Pro tips for buying a used car:

• Keep your ideal purchase price in mind
• Don’t pay more than you know the car to be worth
• Do your due diligence on the vehicle’s history
• Do not let anyone run your credit until you’re absolutely ready to buy

3. Put more down up front

The 20/4/10 rule recommends putting at least 20% down on a vehicle. You can always consider a higher down payment — especially if your credit isn’t stellar. The more you pay up front, the less you’ll need to cover with a loan and the less you’re going to pay monthly. 

If you’re not currently budgeting, consider creating a monthly budget with a dedicated savings account specifically for your down payment. The more you can contribute, the more money you can dedicate to the purchase of your vehicle. That can greatly affect your buying power.

4. Lower your insurance premiums

If you own a vehicle, you can’t put it on the road without insurance. Of course, what you pay to insure your vehicle can vary drastically, but a poor driving record tends to result in a higher price for coverage. A great way to level up your buying power and spend less on car insurance is to lower your monthly premiums:

• Bundle policies. Do you own a home? Have a pet? Already enrolled in a renters insurance policy? A great way to save when it’s time to insure your car is to bundle your policies together — it can save you anywhere from 5-25% a year!
• Shop around. If you’ve been insured by a single company for several years, don’t be afraid to shop around and see what’s out there — you might be surprised. Most companies will give you a free quote with no obligation, and many offer discounts, especially if you’re a good driver with no accidents or traffic violations in the past 3-5 years.
• Pay annually. While we often think of insurance premiums as monthly installments, companies do offer significant discounts if you pay your yearly coverage amount all at once. Get in touch with your insurer and see what options are available.
• Improve your driving record. If you have a bit of a lead foot and have racked up a few tickets, defensive driving courses may be able to help you knock a few points off your driving record — check in with your local DMV to explore your options. 

When the 20/4/10 rule breaks

As stated above, this rule isn’t a decree — there are definitely scenarios in which the 20/4/10 rule simply doesn’t work. If you find yourself in that situation, don’t be discouraged. There are other ways to make your budget work as a whole.

One example is to hold out a bit longer and keep saving so you’ll have a larger down payment. That should reduce your monthly payments and make your monthly budget easier to hit. 

Another option is to adjust your budget to make more room for your car. Is eating less take-out worth it for that sweet, new ride? The choice is up to you. Remember, budgeting isn’t always about giving up what you love — sometimes, it’s just about choosing your priorities so your money can bring you more joy.

Looking back in the rearview mirror

Buying a car is a big deal — it’s a huge purchase. So it’s important to take your time, do your research, and above all, purchase a vehicle you can actually afford. 

By using the 20/4/10 rule, you can take the guesswork out of the equation.

If you’re thinking of buying soon, start saving immediately, work on maximizing your credit score, and start shopping early to explore your options. The more money you have to put down, the further your buying power goes. 

Buying a new car should feel good — the 20/4/10 rule can help you drive off the lot in something you, and your wallet, will love.

Easy, right?

We understand that it’s not exactly easy (or wise) to snap your fingers at your boss and say, “Hey, pay me more,” so we’ve compiled a few tips to help you earn more money, monetize your time and skills, and ultimately, double down on your own value.

Four ways to make more money

There are plenty of ways to make more money — some involve your current career, others involve a little creativity. Let’s check it out:

1. Start a side hustle

The gig economy is still thriving, and the easiest way to make extra cash is to pick up a side hustle. While you can still find part-time work in the service industry, there are many opportunities to find a side gig and work on your own terms when you feel like it — you don’t need two full-time jobs!

If you’ve got a car and some spare time, consider ridesharing through Uber or Lyft. You can also deliver food via DoorDash or Uber Eats, or head to the grocery store and pick up someone’s groceries through Instacart. For some real fun, take on dog walking!

If you’re handy and have some tools, consider offering your services for minor home repairs and renovations. Sell your old clothes to consignment stores like Depop or Poshmark, or post them on Mercari or eBay. The sky’s the limit — think about what you have to offer and how you can make money in your spare time. Who knows, you might even end up with a business of your own!

2. Ask for a raise

Having a conversation with your supervisor at work is a great way to start making more money, but getting the ball rolling isn’t always the easiest thing. If you’re ready to start earning more and you’ve got the track record to prove it, consider having a one-on-one with your manager and bringing up the topic. Here a few things that can help:

• Your track record — what contributions have you made to the team?
• Your trajectory — what plans or ideas do you have for your future performance? 
• Your length of service — is this your first raise in two years? Your time at the company will help dictate what you should be earning. 

As always, approach the dialogue calmly and respectfully, with a clear head. There’s no guarantee that you’ll get the raise you’re looking for, but by remaining professional and factual, you’re likely to earn significant respect. Always come to the table with a percentage in mind when asking for a raise, and bear in mind that your company’s overall performance will affect what type of compensation you’ll receive. 

3. Earn a promotion

Let’s clarify — a promotion is an increased salary with new responsibilities, whereas a raise is just making more money and doing the same thing. So if you’re ready for some new tasks along with some extra earnings, consider talking to your boss about a promotion. 

You can approach your dialogue with your supervisor the same way you would for a raise — make sure to enter the conversation with your own, personal value propositions ready to be discussed. Your supervisor may very well be aware of your value, but it’s important to sell yourself and demonstrate why you’re the right person for the job. Be sure to underscore how your current role has given you the experience needed for the new role as well. 

As far as compensation goes, do your best to research similar roles through sites like Glassdoor and find a reasonable salary to ask for. Believe in yourself and do your homework!

4. Look at a career change

Life doesn’t exactly come with a set of instructions — sometimes we find ourselves in a daily grind, only to wake up one day and ask, “How on earth did I get here?” If you’re dragging your feet every morning to a job that doesn’t feel authentic to you (and struggling to pay the bills), it’s time to consider a career change. 

Start by identifying what’s not working — what factors about your current gig aren’t doing it for you? By knowing what you refuse to settle for, you can start the job hunt and weed out potential bad fits. Next, you’ll want to assess your strengths and weaknesses and be realistic about where you see yourself. If you’re currently working the sauté station at Peter Luger Steak House, it’s unrealistic to see yourself as a VP at Goldman Sachs in six months. 

Take a look at the job market in your locale (or even online — remote work is plentiful right now), and see what jobs are in demand. Apply for jobs that seem like a good fit, and then develop and execute a plan for interviewing and final steps. Believe in yourself — you can do it. 

Tips to give you an advantage

Next, let’s take a look at a few practices that can help you put your best foot forward. Use these tips to kick things into a higher gear — to earn even more as you invest in your own growth and personal development. 

1. Monetize what you’re already doing

Think about your habits, hobbies, and possessions, and see if you have any skills or assets that you aren’t taking full advantage of. For example, if you enjoy doing things that other people generally don’t (think painting, working on cars, landscaping …), you can probably find a way to charge for your services.

You have tons of value to offer — think about how you can leverage that value. Renting out any spare properties that you have is a great way to earn passive income; consider listing them as short-term rentals on apps like AirBnb or Vrbo. If you’re an artist or a writer, try taking commissions or doing freelance writing. If you’re physically active and hit the gym regularly, consider grabbing a few shifts with a local moving company and get paid to exercise. 

People will pay for what they need, especially if it’s specialized work or a task they really don’t like doing. Take advantage of this and find a way to monetize your skillset — it’s a great way to make more money while doing something you already enjoy. 

2. Learn new skills

Learning new skills can pay off in the long run. By adding to your skill set, you can challenge yourself, increase your own personal abilities, and get paid for it! Whether you’re learning how to mix and master music for clients, how to write code, or how to operate a front-end loader, you’re adding an invaluable new tool to your arsenal.

Think about what you enjoy doing and what types of skills you could learn to become more profitable. Are you into photography? Learn the ins and outs of Photoshop and foray into graphic design. Do you like working out at the gym? Brush up on your physiology and exercise science through a personal training certification. Have you been doing your friends’ hair on the side for years? Consider going to a color theory or braiding class.

Adding new skills to your proficiencies makes you more marketable almost immediately, and the more skills you have, the more avenues you have to earn more money. 

3. Go back to school

Going back to continue your education is an extremely effective way to invest in yourself. If you’re at a crossroads where you’re feeling like a career change is necessary but you don’t have the right background, going to school can definitely help bridge that gap.

Start by deciding what you want to do. Are you thinking about leaving the service industry to study business at a four-year university? Do you want to break into your city’s burgeoning tech industry and get a certification from a 12-week coding boot camp? Have you always wanted to get back to earn your graduate degree? There’s no right or wrong answer — it’s entirely up to you and what you want to do with your life.

Horace Mann, a 19th-century American educator, famously called education “the great equalizer.” Going back to school and earning a degree or certification can put you on equal footing with many job candidates, and even put you ahead of others. If you’re ready to start making more money, getting an education can be a long-term solution. 

4. Leverage LinkedIn 

LinkedIn, for the uninitiated, is the largest professional networking site in the world. You can connect with recruiters and professionals across the globe, find jobs, and create your own profile complete with your resume. A great way to get yourself out there is by creating a profile and checking out the job listings.

If you’re new to the platform, you’ll have to create an account and start to build your profile. Choose a good photo of yourself — you’ll want to keep things professional so skip the photos from the beach or Halloween. Next, add your objective and some traits of your personality and work ethic — this is where recruiters will get an idea of who you are. You’ll also need to add your work experience; you can think of it as a virtual resume.

If you’ve been on LinkedIn for a while and are just getting back into the job search, you’ll definitely want to spruce up your profile and resume. Make sure all your dates are accurate and lined up on your actual resume as well as your LinkedIn page. Update your photo to a current picture of yourself — and show those pearly whites! 

Another tip if you’re applying for jobs via LinkedIn — be sure to follow up each application with an introductory message to the hiring manager, thank them for their time, and let them know you’re available for a chat. This little trick will show you’re serious about the job and will make you stand out from the crowd.

5. Keep a great attitude and stay optimistic 

We get it — being stuck in a gig that you hate while you’re struggling to make ends meet is a total drag. But there’s one thing you can control, and that’s your attitude. Did you know that simply expressing gratitude for things in your life can make you happier? It’s no secret that people want to surround themselves with people who are optimistic and positive — the attitude can be contagious. 

If you’re feeling burned out, worn down, angry at your situation, or any other amalgamation of negative emotions, sit down and write it out. Write why you feel the way you do — try to get to the root of the issue. You’re allowed to feel what you feel, but dwelling on what you don’t like about your current situation won’t put you ahead in the long run. 

Instead, when you slip into those feelings of stress, anxiety, and anger, take five deep breaths and remember that your thoughts aren’t facts — think about five things you’re grateful for and let the feelings go. It may feel silly at first, but this type of cognitive training can start to retrain your brain to feel optimistic. 

When you’re seeing the glass half full, you’ll have a more pleasant disposition, find the bright side, and be very easy to work with — a trait that hiring managers definitely look for. 

6. Focus on communication

Interpersonal skills are paramount in the workplace, and one of the most important aspects is communication. It’s how we form our working relationships with our colleagues, how we relate to one another, how we share ideas, and at the end of the day, what makes us human. If you want to make yourself more valuable and earn more, you’ll want to hone your communication skills. 

While communication might at first seem as simple as talking, the biggest skills you can improve as an effective communicator are your listening skills. Being able to truly listen to your colleagues instead of just waiting for your turn to talk will ensure your coworkers will feel heard, and no information will slip through the cracks. 

Consider the tone in which you speak — is it authoritative? Is it condescending? Is it compassionate and calm? Tone is hugely important. Also, be sure to talk with people and not at them. Upper management always values calm assertiveness and self-confidence, but there’s a fine line between those traits and being bossy or arrogant. 

By mastering your communication skills, you can ensure that you won’t be misunderstood, that you’ll minimize misunderstanding others, and that you’ll be fully present during your interviews — and, eventually, while helping your team reach their goals. 

7. Stretch your money further

If you need to make your money last as you get your upcoming career change or new business venture underway, make sure you’re sticking to a budget. By creating a monthly spending plan, you can monitor how your money is coming and going, make sure you’re meeting all your financial obligations, and begin to save wherever you can.

Consider your lifestyle and your monthly expenses — where can you cut back on things you won’t really miss? Take a close look at your discretionary spending — are you spending a lot at bars or restaurants? On five different streaming services? Or maybe on a Starbucks Caramel Macchiato every morning? We all have ways we can start to save immediately. 

Finally, think about paying your way out of debt, especially if you’re falling victim to high interest rates on revolving balances like credit cards. There are plenty of ways to save money out there — the trick is to find the ones that work for you.

But what if you don’t have a car for Uber or DoorDash? What if you want to stay home during the colder months and still make extra income? We’ve got good news — there are plenty of ways to make money from home, for free. 

Ready to learn more? Let’s dive in. 

The top 24 ways to make money from home 

If you want to start stacking some cash from the comfort of your own home, here are 24 different options to explore. 

1. Host furry friends as a pet sitter

Do you love animals? Are you happy to open up your home to a revolving cast of dogs and cats? Consider pet sitting — apps like Wag and Rover make it easy for you to connect with pet owners in need of a place to board their pets. 

The signup process is easy — all prospective sitters need to do is provide their information, pass a background check, and take a quiz that gauges pet knowledge. Afterwards, you’ll be able to create a profile to promote your boarding services, add any stipulations you might have regarding what animals you can and cannot look after, and ultimately, book pets to stay at your home. 

If you’re an animal lover with enough room and experience, working as a pet sitter and boarder can be an awesome experience and an excellent way to make money at home. 

2. Take online surveys

Did you know that you can participate in surveys to make money online — at any time, anywhere? You can make a few bucks for giving your opinions on surveys online, and you can do it all from home. Unfortunately, you won’t be able to fund the purchase of a Rolls-Royce by taking surveys alone, but they can definitely put a little cash in your pocket. 

Survey sites like Swagbucks, SurveyJunkie, and OpinionOutpost offer cash and gift cards for taking surveys, playing games, and more. The more surveys you take, the more points you accumulate, and the more points you accumulate, the higher your payout. 

For anyone taking a multi-pronged approach to side hustling, taking online surveys during your down-time is a great way to bring in extra income — you can even do it from your phone in bed!

3. Sell your art online

Did you know that humans aren’t the only species capable of creating art? From “Pigcasso” in South Africa to Congolese chimpanzees, there are quite a few fascinating examples of animals creating amazing visual art! Humans, however, are the only species that have created a market for the purchase of art — here’s how to make money selling yours.

There are tons of e-commerce platforms right now for artists to sell their creations. Whether you’re a painter, sculptor, or photographer, you can create an account on Etsy, Shopify, or Amazon and build a virtual storefront. 

While you might need to leave your home to ship your creations to buyers, the majority of the work can be done right at home — express yourself creatively, set your price, list your creations, and make that money!

4. Develop a mobile app

If you’re someone with a tech background proficient in app development and coding, creating your own app can be a fast-track to making extra money — without having to leave the home. The app that you create (and how you create it) is up to you, but it can be a great way to make some extra scratch on the side — and who knows, maybe you’ll create the next big thing! 

Be sure to write out an objective and plan for every step, research your competition, build your minimum viable product, beta test it amongst some friends, and get ready to launch! 

5. Monetize social media

Are you an influencer? Do you have a substantial base of followers on your social media channel(s)? Whether you’re big on Instagram, TikTok, or have your own YouTube channels, you can find ways to make extra money by using your platform on social media to promote brands to your followers. There are tons of different avenues to make money using your social media, so you can try a few things! 

One of the most popular methods of monetizing your online presence is through brand partnerships — you can offer sponsored posts for clothing, beverages, workout products — you name it!

You can offer a link in your bio to the product, called an affiliate link, which should give you a cut of sales that you directly impact. You can also monetize your Instagram account by gaining subscribers — more on that here. 

6. Work as a virtual assistant

Got a high-speed internet connection, a space to work at home, and a knack for organization? You’ve checked all the boxes to become a virtual assistant! 

For those unfamiliar, companies will often hire independent contractors to remotely assist with administrative, creative, or technical aspects of day-to-day business operations. You won’t get benefits or stock options, but it’s a great gig for making money on the side, all from the comfort of home (or a cool coffee shop). 

To get started, take a look at job boards like FlexJobs or Indeed, get your resume together, and start applying for jobs. Don’t fret if you don’t have any virtual assistant experience — if you’ve booked appointments, managed a calendar, made travel arrangements, or managed a social media account, you’ve got transferable skills.

7. Tutor online

Whether you’re a history buff who likes to nerd out over Napoleonic-era battles, a music aficionado who loves throwing a flat 6 into a chord progression, or someone who likes to do calculus for fun, there’s a huge market for you to teach your expertise — and get paid for it.

History, music, math, and even English can be taught virtually from home — organizations like Tutor.com make it easy to apply and find students. There are plenty of other online tutoring platforms to choose from, as well. Most organizations will have an interview process, where you’ll have to meet certain criteria — usually being available at least 5 hours a week and eligible to work in the United States. Certain organizations may also require a college degree.

8. Sell your music on Artlist

In a time where it’s notoriously difficult to make money as a musician, there are still options short of selling your soul at the crossroads. Surely that platinum record (and a swimming pool full of money) is waiting in the wings, but in the interim, consider selling some of your music to Artlist.io.

A royalty-free platform for video and multimedia creators to source music for ads, films, and more, Artlist accepts submissions from musicians and sound effect artists, for which you can generate revenue and get placements for your music. While the payout isn’t massive, you’re continually paid each time your songs are downloaded.

In order to apply, you must own 100% of the master rights for your tracks, submit a short bio, and answer a few genre-related questions about your music. 

9. Become an Amazon affiliate

Consider partnering with Amazon through their affiliate program, which is also known as Amazon Associates. Sign up is easy, and the cost is nothing — and you can make extra money from home with minimal effort. 

Website owners, mobile app owners, and even social media accounts are eligible to apply and work with the Amazon affiliate program. For websites, you must have at least 10 blog posts and be publicly available; for mobile apps, you must be available in all major app stores and not look or function like Amazon’s app; and for social media, you must have over 500 organic followers.

Once you apply, Amazon will give you your own unique ID, and you can generate links as an affiliate partner — offering you a percentage of any sales you help to make through your engagement. 

10. Start your own website

There are plenty of avenues to make extra money from home by starting websites — some people have even been able to quit their jobs after starting one! While that’s the exception and not the rule, you can definitely expect to make a little extra. 

Aside from the affiliate marketing opportunities we’ve discussed above, you can monetize your website in a number of other ways! Consider setting up banner ads via Google Adsense, where advertisers will compete for your ad space and pay you when a visitor clicks on the advertisement. 

You can also offer sponsored posts, create a membership program, review products, or sell goods with an online store — again, this all depends on the nature of your site. The big takeaway here is that there quite a few ways to make money by creating a website — get creative with it!

11. Rent out your space with Airbnb or Vrbo

Got a spare bedroom? Or maybe a few properties you’re not currently renting at the moment? Listing your property on homestay service sites like Airbnb or Vrbo can be a great way to make passive income. Depending on your involvement, location, and personal expertise, you can even offer unique experiences to traveling guests! 

It’s free to sign up on Vrbo and Airbnb — you’ll need to upload your property and answer a few questions about your space and yourself. From there, you’ll need to get your space ready for guests — there are some handy checklists you can use to make sure you’ve got everything you need to keep your guests comfortable. 

Get creative with your listings if you’d like to offer an experience — in addition to providing a memorable experience for your guests, you can also make a few extra bucks! Are you an expert in the history of your city? Consider acting as a tour guide. Do you have any culinary experience? A well-cooked meal consisting of local cuisine will be an experience your guests will never forget. 

12. Sell on Craigslist or Facebook Marketplace

Craigslist and Facebook Marketplace have sort of allowed us to have garage sales virtually, right? No matter what you’re selling, these two sites can more than likely connect you to a buyer. And the best? They’re totally free!

Take a look around your place — is there anything you can part with for a few extra bucks? Old books, records, clothing, sports equipment, Beanie Babies, or Pokémon cards? There’s surely a buyer. 

Listing is really easy — start by visiting either site and post an ad. Here’s where you can get creative — you’ll want to provide a headline of what it is you’re selling, add an accurate description of the item, and list a price point. In terms of pricing, it can be helpful to take a look at market value by searching for other similar items listed, and you can cross reference via eBay. 

Take good photos of your items up for sale, list them, and monitor your email inbox and Facebook account. When you sell, agree to meet in a public place and insist on cash or Venmo/Cashapp. 

13. List your music gear on Reverb

No matter if you’re a gigging musician with shoeboxes full of effects pedals or a would-be guitarist struggling to find the time to pick up that acoustic guitar you got for Christmas 8 years ago, Reverb offers you access to the foremost musical marketplace to offload your gear. 

To list, simply make an account and then click “Sell Your Gear” — it will take you to a page where you can enter the information on the gear you want to sell, compare market value, add a description, and price point. You can also accept offers for your gear close to your price, if you so choose. 

You can list your gear locally, but you can also consider shipping items to increase your buyer network. Unless you’ve got a moving team and unlimited funds to spend at FedEx, it’s recommended that you find a buyer locally for your Marshall Full Stack or great aunt Gertrude’s Hammond console organ. 

Once you sell your gear, you can expect Reverb to take 8.2% out of the final sale price. Be sure to pack your sold items extremely well — you don’t want your buyer to send your cymbals back because they cracked in shipping! 

14. Freelance on Fiverr

If graphic design, copywriting, or photography are right in your wheelhouse, consider leveraging Fiverr to sell your services and make some extra dough from home. 

Fiverr is a veritable marketplace for all things freelance — connecting freelancers of all kinds with businesses in need of those services. No matter your skill set or the vertical in which you work, there’s probably something for you. 

To get started, you need to sign up as a seller. You’ll pick your role — are you a blogger? A designer or developer? A musician or voiceover artist? A social media manager? A freelance writer?

Select your specialty, create a gig, and Fiverr will submit you for consideration to their global audience. Once you get hired and deliver awesome work, you can get paid out — which is immediately available for withdrawal once it clears. 

15. Get in as a ghostwriter

If writing is your strong suit, you might be able to find remote work as a ghostwriter on a contract basis. While it’s often thought of as someone who helps a celebrity or public figure write an autobiography, there are actually tons of different ghostwriting gigs you can get — without having to help Charlie Sheen write a memoir. 

The best tool you can have is a voracious appetite for reading, as you’ll want to be well-versed in tons of different topics. Also, you need to learn about different subjects and learn how to imitate different writers and their voices — the legendary Hunter S. Thompson even went as far as rewriting Hemingway character-for-character to understand how the latter wrote! 

Once you develop a portfolio, start networking and look for gigs on online job boards, and then get writing! 

16. Sell your clothes online

Are you a fashionista with an ever-changing wardrobe that gets updates every season? Even if you’re not importing Versace directly from Italy, chances are that you have some gently-worn clothing in your closet that’s not getting as many wears as it once did. 

Aside from donating old clothing to a thrift store or local shelter, you can also sell your gently used garments and footwear online. Sites like Grailed, Poshmark, StockX, and Depop offer sellers a chance to offload their threads to a global network of buyers for a marginal user fee.

Whether you’re trying to flip your ultra-rare Off-White x Nike Jordan 1s or just get rid of some vintage, thrifted flannels, you can definitely make a few extra bucks through these online marketplaces. 

17. Start an online business

Do you have any hobbies that you can monetize? Any crafts you can sell? Any knowledge you can charge money to create? Incorporate it! 

Starting a small business online is a great way to legitimize your hobbies into a full-fledged moneymaker — you just need to build the site and get to work. No matter if you’re making candles, tie-dye socks, wooden tchotchkes, or even baked goods, sites like Shopify, Wix, and Squarespace offer sites with ecommerce capabilities, allowing you to upload your stock, list your products, and sell them to people anywhere in the world.

No matter your idea, an online business can help you make extra money. 

18. Become elite at selling on eBay

Want to feel old for a second? eBay was founded in late 1995 — it’s almost 30 years old! But we’re not ageist around here at Quicken, and we definitely would recommend eBay to anyone who wanted to make some extra money from home.

No matter what you want to sell, eBay has a niche for it. Vintage beer cans? There’s a buyer. Garbage Pail Kids cards? Oh heck yeah. Antique hot sauce? You better believe it. For horological enthusiasts, eBay also operates a third-party expert authenticator process for high-end Swiss watches! Any sort of collectible commodity has a home on eBay — and a built-in audience with years of experience buying on the platform. 

Even if you’re not into collectibles and just have some ordinary things to sell from around your house, there’s a market on eBay — they charge 13.25% of the final selling price plus $0.30. 

19. Rent out your vehicle

Peer-to-peer car rental services allow you to rent out your car to people, which can help you make some extra money without having to leave your house. Services like Turo allow you to “host” your vehicle, much like Airbnb allows you to host guests in your home. 

Sign up is easy — you simply login and update your personal details, information about your vehicle, and add when the vehicle is ready and available. Your car will then be leased to a renter via Turo, where it will be insured up to $75,000. 

Hosts on average make close to $11,000 per car, which can make renting your vehicle a pretty lucrative avenue! 

20. Sell your photography

While scientists have yet to agree unanimously, there have been studies that conclude as humans, vision is the strongest of the five senses! Think about it — commercials and advertisements, album art, cartoons and films — we are immensely influenced by visual information we receive on a daily basis!

This is great news for photographers, who can leverage the corporate need for visual collateral by selling the photos they take. Many companies use sites like Unsplash and Shutterstock, which are royalty-free photo platforms — you can submit your work and get compensated by the platforms.

You can also find work shooting headshots for actors in the area, connect with employers on a freelance basis on Upwork, work shooting concerts and band promos, or even moonlight as a family/wedding photographer! 

21. Get paid to test websites

Did you know that organizations will pay users to test their websites? Imagine, sitting at your kitchen table with your morning cup of coffee, testing the functionality of a brand new website, and getting paid to do it — not too bad, right?

Sites like UserTesting.com and UserPeak work as a middle man between companies who need to test their new websites for user experience and website testers. To get involved (and get paid!), you need to sign up and take a trial test to assess your critical abilities. If you pass, you’ll be able to test sites and get paid for your time! 

22. Find a data entry gig

Hey, it ain’t glamorous, but it’s a surefire way to make side money at home! No matter if you’re an Excel whiz or you’ve just got some spare time on your hands, there are plenty of organizations out there who need a hand with data entry. 

A clerical gig, data entry often involves entering names, numbers, addresses, or any other information into a database. This line of work is usually entry-level, can be part-time, and doesn’t require loads of experience — if any at all. 

The schedule for a data entry job can sometimes be flexible, allowing you to work when you want — and can often be remote. To get started, look at job boards on LinkedIn, FlexJobs, or Indeed, and apply! 

23. Work as a consultant

Do you have know-how that you can monetize professionally? Consulting is a-calling! It can be as typical as working as a hired gun for a business operations team to whip a department into shape, or as abstract as streaming on Twitch to help gamers crack that next level on Prince of Persia: The Lost Crown. 

The first step is to hone your expertise and decide how you can leverage it. Think about your skills and decide where your experience can take you. The next step is to build your portfolio and network — knowing the right people and having the soft skills to sell yourself is worth its weight in gold. 

Once you pitch yourself, be sure to lay out a game plan, develop metrics to track your goals, and make sure you deliver! If setting your own prices, working your own schedule, and using your experience to help others sounds good, then consulting is for you. 

24. Find ways to monetize what you already do

This last point is a bit abstract and creative — and that’s the point! Put the “hustle” in side hustle and think good and hard about what you’re already doing on a daily basis. Now, how can you monetize it?

Whether you’re making beats in FL Studio, making hilarious memes, creating viral TikTok content, or creating art, think about finding a way to be compensated for that effort. Remember, when there’s a will, there’s a way! 

Once you’ve got all that extra money coming in, you’ll need a way to track it and bake it into your budget — Quicken Simplifi can help you keep it organized, set up savings goals, track and categorize your spending, and more.

This post covers the essentials. Let’s get to it!

Which documents and info should I save?

Here’s a comprehensive list of the kind of documents and personal info you should keep available for various legal or financial reasons.

Identification documents

• Social Security cards
• Birth certificates
• Adoption papers
• Marriage certificates
• Divorce papers, alimony, and child support awards
• Military service, veteran’s benefits
• Passports 
• Driver’s license numbers
• Death certificates
• Citizenship and naturalization papers
• Passwords and logins

Bank Records

• Canceled checks
• Bank statements 
• Deposit slips 
• List of account numbers 
• Savings account statements
• Retirement and pension plans

Credit card records

• Credit card numbers 
• Creditor’s contact information, including payment address 
• Credit card term disclosures 
• Credit card statements 
• Photocopy of front and back of all cards

Tax documents

• Federal and state income tax returns, all forms, and supporting data
• W-2s
• 1099 forms
• Any other tax-related forms, receipts, and records 

Insurance records

• List of policy numbers 
• Names of those insured and their beneficiaries 
• Issuing company, agent, type, amount of coverage
• Copies of policies

Property records

• Vehicle registrations, titles, and loan documents
• Mortgage statements, real estate property deeds, and closing documents
• Bills of sale, any documentation transferring ownership

Education records

• Diplomas 
• Professional certificates 
• Professional licenses 
• Transcripts
• GED scores/certificates
• Continuing education certificates

Estate planning documents

• Wills and trusts
• Living wills
• Powers of attorney
• Burial instructions 

Financial records

• Pay stubs
• Canceled checks
• Medical bills
• Disability or unemployment records
• Retirement or pension plan records
• Investment statements
• Credit reports
• Subscriptions

Health

• Immunization records 
• Medical history and information 
• Organ donor card
• Prescriptions 
• Health insurance records
• Numbers and addresses of your primary care physician and medical personnel

What documents do I need in an emergency?

These are the bare minimum documents you should make sure you can always access quickly:

1. Identification: Passports, driver’s licenses, Social Security cards, and birth certificates.
2. Medical records: Health insurance cards, list of current medications, and any other critical medical information such as allergies or medical restrictions.
3. Financial documents: Bank account details, credit cards, and insurance policies.
4. Emergency contacts: A list of phone numbers for family, friends, and emergency services.
5. Legal documents: Will, power of attorney, living will, and any important legal contracts.
6. Proof of residence: Lease, mortgage documents, or utility bills.

Keep these in a secure, easily accessible place or in a grab-and-go emergency kit.

Where should I store my important documents?

Keep your emergency documents readily accessible, but legal documents that are hard to replace (think birth certificates and car titles) are best kept in a legacy drawer, like a fireproof safe, lockbox, or safe deposit box. A legacy drawer should be a physical space that at least one other person, usually your executor, knows how to access.

Paper vs. digital copies

Some legal documents are still required to be kept on paper, especially official state-issued documents and paperwork with original signatures. However, the situations in which you’ll have to produce physical documents are limited.

For most purposes, being able to produce a digital copy is enough. So keep your originals, but it’s also a good idea to keep digitals copies or photos because these are much easier to access and share in most situations.

Should I take pictures of my documents?

For things like receipts, photos are generally fine. It’s also a good idea to keep a photo of your IDs available in a pinch, especially when traveling. 

For legal documents, scans are preferred in most situations. Just make sure that no pages are missing, that each page is complete (not cut off), and that the text is legible.

How long should I keep my documents?

There are different regulations and recommendations for different documents, but many of the items in the list above should be kept permanently — or should always be kept up to date — such as birth certificates, social security cards, your most recent will and estate plan documents, current prescriptions, and so on. 

The good news is that digital versions take up very little space and are easy to keep organized. 

What regulations for storing documents should I be aware of?

If you’re running a business, laws such as GDPR (General Data Protection Regulation in the EU), HIPAA (Health Insurance Portability and Accountability Act in the US), and CCPA (California Consumer Privacy Act) regulate the storage of personal and healthcare data for both employees and customers. 

Remember, some laws may affect you just because your website is available in these regions, even if your company isn’t headquartered there, so be sure to check with legal representation if your company stores any kind of sensitive or personally identifiable information.

What about my internet passwords?

For maximum security, your passwords should be quite long, using a mix of uppercase and lowercase letters, numbers, and special characters. Unfortunately, this also makes them hard to remember, not to mention hard to share with family in an emergency.

Using a password manager can help — just make sure that your executor or the person who has power of attorney over your finances in an emergency has a way to access it.

How should I dispose of documents I no longer need?

In the age of identity theft, make sure you’re disposing of your information securely. When documents are no longer needed, destroy them thoroughly to protect sensitive information.

Purchase a shredder or take documents to be shredded in a self-contained setting so that it’s not easy to collect or piece back together should it fall into the wrong hands. 

How can I make sure my family will have access to all my documents?

If you were to die, become incapacitated, or fall critically ill, would your family be able to access the information and documentation they’d need? Saving and organizing your most important info is only half the battle — the other half is making sure the people who would need it have a way to get it.

So put an emergency plan into place, and make sure everyone who needs to be part of that plan knows what to do. Hopefully, you’ll never need it, but you’ll all rest easier knowing you’re prepared.

Determining your net worth is fairly straightforward and easy to accomplish. We’ll show you how to figure out your net worth and even how to improve it.

Ready to learn more? Let’s get into it!

What is someone’s net worth?

Your net worth, simply put, is the value of your assets — your possessions, the money in your bank account, your investment portfolio (if you have one), and anything else you own — minus your total liabilities, which is any outstanding debt or money owed, like car loans or credit card debt. 

If that sounds complicated, ask yourself this — if you sold everything you have for cash, then used that cash to pay off your debt, how much would you have left? That’s your net worth.

Remember, individual net worth can vary wildly from person to person, and isn’t always a surefire way to determine financial health.

A young adult new to the workforce with a hefty chunk of student debt may have a very different net worth from a middle-aged investor with several forms of passive income — the young adult may even have negative net worth! And that’s okay — it’s important to be mindful of the fact that net worth changes over time. 

How can I determine my net worth? 

Now that we’ve established what net worth is, are you asking yourself, “How can I figure out my net worth?” Follow the steps below to get started! 

Step 1: Add up your assets

The first step in determining your net worth is to take a good, hard look at your assets. 

So what are assets, exactly? Think of them as anything you own that has value. Obviously the balance of your bank accounts (like checking account and savings account) and any investments in your portfolio count as assets, but you also want to consider physical assets, as well. Things like real estate, jewelry, musical instruments, or art collections can hold monetary value and increase in value over time. 

If you’re asking, “Well, what about my car?” the jury is still out. Typically, vehicles are depreciating assets, meaning they don’t hold their value. So, unless you’ve got a freshly waxed ‘67 Shelby sitting in your garage, you probably don’t want to include vehicles.

Potential assets include:

• Investment accounts — think stocks, retirement accounts (IRAs, 401(k)s, etc.), brokerage accounts, or mutual funds
• Physical assets — any real estate, art, jewelry, musical instruments, household items, and other valuable physical items
• Bank accounts — don’t forget to include your checking account, savings accounts, retirement savings, or any other accounts you may have

Assigning cash value to physical assets can be difficult, but it can help to take a look online to see current market value or speak with experts to get an idea of their worth. 

Once you get an idea of the total value of your assets, you’ll be ready to move on to the next step.

Step 2: Line up your liabilities

The next move is to take a look at all of your liabilities. 

Liabilities can be understood as any outstanding debt or money that you owe. When determining what your liabilities are, you’ll want to include any credit cards that have a current balance, any loans (vehicle, educational, or mortgage), and anywhere else you may owe money. 

Some examples of liabilities can include:

• Student loans 
• Credit card balances
• Consumer loans 
• Auto loans
• Mortgage
• Personal loans

List out each line of credit you have and include the outstanding balance. (It’s also really helpful for budgeting purposes to include your monthly payments and annual percentage rates.)

Once you’ve added up the total amount of money you owe on your outstanding debt, you’ll have determined your total liabilities. 

Step 3: Determine the difference

The final step to determine your net worth is simply to subtract your liabilities from your assets. That’s it! 

If the number you’re left with is $1.00 or more, congratulations — you have a positive net worth. If the number you see is preceded by a minus sign, this means you have a negative net worth. 

So what happens if you’ve got a negative net worth? Will Elon Musk, Bill Gates, and Jeff Bezos form a coalition and publicly shame you?  Not even close! 

Here’s the deal — your net worth does not define who you are as a person. The important thing to remember is that this figure is almost always in flux, which is especially true for people who’ve taken on considerable student debt for a stellar education or who mismanaged their credit at first through financial inexperience. 

No matter what your personal situation may be, it’s really important to not feel defeated by a negative net worth. 

And the best part? By committing to good financial habits, you can turn that negative figure into a positive one!

How can I increase my net worth?

We all have to start somewhere. If you want to increase your net worth, there are a few ways to go about it. The general idea is to make sure you’re bringing in more money than you’re spending — or, more specifically, building your asset value faster than you’re taking on debt. Think of it as inflows and outflows of cash value. 

Let’s take a look at the best way to max your inflows while reducing the outflows!

1. Pay off high-interest debt first

Nothing can stymie financial independence and growing your net worth quite like high-interest debt — it can be a difficult pit to get out of. But you can toss yourself a proverbial rope and climb your way out by choosing a plan to pay off your debt and sticking to it. 

Consider using the debt avalanche method to pay off your high-interest debt. With this approach, you’ll need to:

• Identify your line of credit with the highest annual percentage interest rate (APR)
• Pay as much as you can afford each month toward that account
• While still making your minimum payment on any other open account

Once this line of credit is paid off, continue on to the next-highest APR loan, and so on.

Remember, paying off debt takes time. Don’t be discouraged, but be aggressive and stick to your plan. Commit to keeping your hard-earned cash, not paying any extra to lenders. 

2. Invest your money wisely

Once you begin paying down your debt, you’ll want to start investing any extra money or large windfalls of cash into a diversified portfolio. The goal is to have your money work for you. If you’re new to investing, talk to a financial advisor to see where you might want to put some capital.

You can also explore any of these topics:

• How to Invest and Grow Your Money
• Average Savings Requirements by Age — Plus Net Worth Benchmarks
• Investing for Beginners: What You Need to Know to Get Started
• Types of Investment Accounts: Pros, Cons & Examples
• Investment Strategies: Which One Is Right for You?
• Investing for Retirement: 5 Steps to Grow Your Nest Egg

3. Put your interests and knowledge to work

What are you really good at? More importantly, what do you love? This is where investing can get very personal and, honestly, pretty fun. 

Are you into real estate and have any sort of remodeling skills? Flipping houses can be a good way to build a sidestream of passive income. 

If you’re a musician, you can invest in good, quality instruments — Indianapolis Colts’ owner Jim Irsay has been investing in guitars for years, with a collection valued at $100 million! 

Whether you’re into artwork, muscle cars, or baseball cards, finding assets that you think could grow in value relative to inflation can be a fun and engaging aspect of maintaining a diversified portfolio.

4. Make more money

One of the best ways to increase your net worth is by increasing your inflow of cash! Simplified, this just means making more money. With the thriving gig economy, making money has never been easier. It all depends on how much time you can commit and what your interests are.

Have a car and some spare time? Buy yourself a cabbie hat and sign up for Uber or Lyft. Do you have a stockpile of Beanie Babies and Pokemon cards? List them on eBay for collectors. Is there a plasma bank near your home? Stop in, donate, get paid, and help save a life. There are so many ways to make money on the side — get creative with it. 

You can also angle for a raise or promotion at your 9-5. Think about having the conversation with your boss if the time is right and you’ve been crushing it in your current role.

5. Save your money

Another great way to minimize your cash outflow and maximize your assets is by doubling down on saving your money. Remember, the more money you have in your bank account, the higher your net worth will be — as long as your savings are outpacing your debt. 

It’s really easy to cut back and pad your savings with simple little hacks — especially if you’re sticking to a budget. Take a look at your bank statements and go through each transaction you see. Are there any surprises you didn’t budget for? Having an idea of your spending habits and seeing it written out can help you identify areas of overspending and assist you in dialing it back.

This is also a great time to find unnecessary spending — duplicate streaming services and other subscriptions are a huge culprit. Consider canceling anything that you aren’t using, or anything you wouldn’t mind replacing with a free service. The idea isn’t to deprive yourself of the things you like, but to dial back any excess discretionary spending in order to save. 

The final word

Have you ever made a plan, became disorganized about it, and fallen off the wagon? It’s really common. The best way to ensure that your plan to increase your net worth receives the best effort you can give is by staying organized! So, what’s the best way to stay on top of your finances? 

Quicken can help you see where your money is coming from and show you where it’s going. You can create custom savings goals, tailor your budget categories to fit your needs, and even monitor your investment portfolio and watch it grow. 

It’s pretty difficult to navigate without a map — let Quicken Simplifi help you stay on course as you journey to increase your net worth and find your way to financial freedom.

Using a computer program or app, such as Quicken Simplifi, can help you stay on top of these numbers, which makes calculating your net worth a piece of cake. But if you’re not using an app, you can still add it all up yourself. This post will show you how.

Net worth formula

Net worth = assets – debts

At the most basic level, your net worth is just the total value of all your assets minus your liabilities.

Your assets include money or things that are worth money, such as investments, crypto, retirement accounts, real estate, or cars. 

Your liabilities include anything that you owe, such as credit card debt, bank loans, mortgages, and unpaid bills.

Don’t forget these items

Some debts are easy to overlook, so be sure you’re including everything: student loans, store cards, credit cards, your mortgage, and so on.

“I’ve found that sometimes people overlook student loans if they took out a whole bunch of different loans or if it’s been quite a while since they took them out,” says Katie Brewer, certified financial planner with Your Richest Life. “The National Student Loan Data System can be a great tool to find information on most of your student loans.” 

In addition, don’t overlook your mortgage. For example, if your home is worth $230,000 and you have a $210,000 mortgage, you have to count both of those — together, they increase your net worth by $20,000.

Compare net worth changes over time

Your net worth at any given time is just a snapshot of how you’re doing at the moment. For many people, their net worth starts out negative and improves over time. What’s most important is how your net worth is moving — and why. 

“I encourage people to look at their net worth trend over a longer time period like a year rather than a short period like a month,” says Brewer. “If investments are part of your net worth, you want to make sure that you know how much of your net worth increase or decrease was due to the markets and how much of it was due to debt payoff for savings. Don’t be discouraged if your net worth has decreased over the last year because the market is in a down period. If you are saving for retirement and have 10 years or more until retirement, you should be invested in a good amount of stock investment, where sometimes the market will go up and sometimes the market will go down.”

Other financial measures

Net worth isn’t the only measure you need to be aware of when you’re checking your finances. “Make sure that you don’t get so carried away in monitoring your net worth that you invest all of your money,” cautions Brewer. “You should still have money in cash reserves so that if an emergency happens, you have that money quickly available.” 

For example, if you stash all your money in a retirement plan that you can’t access for many years yet, you might have a large net worth, but you might not be in great shape in an emergency. Consider keeping some of that money in a simple savings account where you can access it when you need it — so you won’t have to max out those high-interest credit cards.

At the end of the day, growing your net worth is about having a solid financial plan you can stick to — one that helps you pay down your debt, grow your savings, and retire with the money you need.

Whether your own closet feels like a disaster or it just needs a little glowup, these 9 simple steps can turn any storage space into a breath of fresh air. 

Ready to tame your closet once and for all? Let’s get started!

1. Set aside time and gather your supplies

A full closet glowup is a real project. Make sure you set aside enough time to get everything done. 

A day, or a whole weekend? How messy is your closet? If it’s in fairly good shape, a day may be enough. But if you have a big closet and it looks like World War III happened in there, a weekend may be more your speed. You’ll want uninterrupted time, so don’t do it on the same weekend as the big game.

Write up a list of supplies that can help you clean and organize — bins, totes, hangers, labels, cleaning products — and have everything ready before you start. Make it exciting by getting as fancy as you want with some extra touches, like cedar hangers and designer labels, or stick with good ol’ plastic hangers and tape. Go all out or make it as simple as possible, whatever will help you get started.

2. Empty the closet and clean the closet space

Take everything out of the closet. Start with a clean slate before you begin building your masterpiece. Lay out your items in a designated space for sorting — another room or your bed.

Dust shelves, wipe down walls, and vacuum the floor. Try to clear out all the dust, and avoid reintroducing dust by giving your clothes a good clean before you finally put them back into the closet. 

Now would also be a good time to deodorize and maybe add a bag of cedar chips or a floral packet to keep the moisture out and have the space beautifully scented. 

3. Sort everything into categories

Now for some organization! Section off all your clothing, shoes, goods, etc. For each category, you want four piles: keep, donate, sell, and recycle. 

Be honest and practical about what you truly need and use. We all have that sweater that, no matter what season it is, always makes it back in the closet, never to be worn.

Clear out what you no longer need and give it to someone else who will use it. Don’t keep storing the same clothes you’re hesitant to part with. Instead of holding onto clothes you’re unsure about, find a better way to let them go.

4. Declutter your keep pile and organize by type

Focus on the keep pile and remove any duplicates or items you rarely use. Try to reduce that pile by 20% at least! Ask yourself how often you wear each piece of clothing and whether it’s worth storing unused items endlessly, hoping one day you’ll wear them.

Separate clothes by type: shirts, pants, shoes, jackets, sweaters, etc. Then organize by season — items that are out of season should go into storage. They can go in an attic, in bins under the bed, or even into a storage unit.

5. Choose your storage solutions

Take some time to evaluate what you have to ensure that your storage solutions, like bins, racks, and shelves, are adequate for the job ahead. Consider adding wicker baskets, racks for shoes and hats, and organizers for anything that can’t fit on a hanger.

If you spend some time in any of the home furnishing stores, you’ll find the perfect storage solutions for your needs. There are even services that will take the measurements of your closet and design a unique closet-organization setup just for you.

6. Return items to the closet, organize, and label

Start putting items back in the closet, starting with the items you use the most. Everything should have a place. Hopefully, you bought some decent hangers that will keep your clothes wrinkle-free. Uniform hangers will also save space and improve aesthetics.

Group together similar items for easy access. Fold or roll clothes that don’t need a hanger, like sweaters and jeans. Keep your shoes in a tidy array by using organizers or clear boxes. Arrange everything by type and frequency of use.

Get the most utility out of your space with the use of hooks, trays, boxes, or baskets for accessories like belts, scarves, and jewelry.

Clearly label bins and boxes for easy identification. There’s nothing worse than not knowing where your lime-green jeans are stored. You can use a fancy label maker or hand-write them for a personal touch.

7. Make a maintenance plan

Set up a schedule for routine maintenance of your closet — we suggest by season, as you’ll be moving different items in and out of storage like coats and boots. For example, if you experience deep winters, you’ll definitely need a prepared space to store all bulky items like jackets and ski wear.

Don’t let messes get away from you. Address any problems right away and get the closet back in ship-shape condition. When you leave them for more than a day or two, organization fails soon after. Item after item will start piling up, and your closet will be back to a sad state.

8. Donate or sell unwanted items

Many people have started businesses by starting to sell unwanted items from their closet. Take inventory and consider listing items that are in good condition on sites like eBay or Poshmark. After selling your items, help friends and family organize and sell their items too. 

If you don’t want to bother with that, wrap everything up in plastic bags and drop them off at local thrift stores or donation sites. Thrift stores will take almost everything in any shape. Just avoid sending intimate items like underwear or items that are in absolute disrepair.

9. Enjoy your organized closet

You’ve finished! Take some time to enjoy your handiwork and take pictures so you can remember where everything goes. Or, show off your new closet on social media and tag it #closetmakeover!

Even if you’re brand new to the world of personal finance, the collection of articles and info below can help you live your best life financially. 

Budgeting

Want to learn more about budgeting? Here are some great posts from the Quicken blog that can help you better manage your spending.

• 6 Simple Budgeting Tips That Last
• 10 Budget Categories that Belong in Your Plan
• 20 Average Monthly Expenses to Include in Your Budget
• Your Quick, Easy Guide to the Envelope Budgeting Method

Managing expenses

Want to get more of those monthly expenses in check? These tips can help.

• How to Prepare Financially for Unexpected Expenses 
• 9 Ways to Stop Living Paycheck to Paycheck
• How to Split Finances as a Couple

Debt, credit, and loans

Want to learn more about debt, credit, and loans? Try these strategies for paying down debt and raising your credit rating.

• How to Increase Your Credit Score in 6 Months
• How to Get Out of Credit Card Debt
• How to Live a Debt-Free Life
• How to Improve Your Credit Score in 8 Steps

Savings

Want to save for a vacation, a car, a home, or having a family? Learn how to reach your financial goals with confidence.

• How to Save Up for Anything You Need
• How to Use the 20/4/10 Rule for Buying a Car
• The 2024 Guide to Saving for College
• How to Save Enough Money to Buy a House in 2024

Goals

Know what you want? Here’s how to go after it.

• How to Get Promoted at Your Job
• How to Get a Raise in 8 Steps
• 7 Steps from College to Financial Independence
• How to Become a Millionaire

Investing, retirement, & advanced topics

Interested in investing and retirement savings? How about more advanced financial topics? Start here and explore.

• Investing for Beginners: What You Need to Know to Get Started
• How to Invest and Grow Your Money
• How to Pay Your Kids and Save on Taxes
• What Are the Best Retirement Investments? 
• Investing for Retirement: 5 Steps to Grow Your Nest Egg

Want more?

Want more tips & tricks to reach your financial goals? Follow us on:

• Facebook
• Instagram
• TikTok

But now that your kids are about to be on their own, it’s more important than ever to teach them about managing money and avoiding debt. 

This article covers:

• the most common traps college students fall into 
• how to prepare them to manage their finances
• tips and statistics for understanding Gen Z and how they think about money

Ready? Let’s dive in.

Common financial pitfalls for college students 

According to a recent survey of 1,000 college students, over a third said they incurred unexpected debt during their first year of school. This suggests that many college-age kids haven’t been prepared to handle the responsibility of managing money on their own. Here are some of the most common money mistakes college kids face.

Bypassing the budget

It’s easy to assume budgeting is only necessary once you’re out in the world and earning a living. But college is one of the best times for kids to start budgeting because they don’t yet have to worry about major responsibilities like paying a mortgage or feeding a family. 

Unfortunately, instead of committing to a budget, many college students wind up spending way too much of their limited income on things they don’t need. 

Amassing credit card debt

For many new students enjoying their first real taste of freedom, the lure of a credit card can be hard to avoid. Credit card companies know what marketing tactics appeal to college students, and they don’t shy away from offering kids perks and schwag just for signing up. 

If your kids don’t know how credit card interest and fees really work, they could start racking up debt, fast. 

Misusing student loans

Like credit cards, student loan money can feel too much like fun money. That’s why many college students wind up using their student loans to splurge on things they want, rather than the school-related costs that money is intended for. 

It’s far too common for parents not to want to scare their kids or make them feel guilty about how much school really costs — that’s a natural (and even noble) feeling. But not talking to them about those costs can leave them unprepared.

At the very least, be sure you understand what grants, loans, and scholarships your student will receive — and what account that money will land in.

Becoming a “career student”

According to The National Center for Education Statistics, only 41 percent of U.S. college students manage to graduate in four years. 

A variety of factors cause students to stay in school too long, from switching majors, to not enrolling in a full course load each semester, to transferring credits from a former school to a new one (a notoriously challenging process). 

The cost of those extra semesters adds up over time and can lead to greater debt — especially for students who need to take out additional student loans to continue their education.

Not telling their parents they need help

Unfortunately, many new college students fall prey to these financial traps — or others — before they even know what hit them. Once they’ve realized their mistakes, they often wind up being less than honest with their parents about the extent of their debt.

Make sure your kids feel emotionally safe telling you they need help. The more they believe you’ll be disappointed in them for making mistakes, the less likely they are to turn to you for support.

Talking to your college-bound kids about money, credit, and debt 

Here are 7 key talking points and tips (with statistics) to help you keep your college-bound kids on the path to success.

1. Show them you understand 

Before you start talking to your kids about finances, it’s important to recognize how their reality differs from the world you stepped into when you were a young adult. Gen X came of age and entered the workforce in a time of optimism and prosperity. Gen Z, not so much. 

According to the Bureau of Labor, the average US salary in 1994 was $26,939. Meanwhile, the median price of a home was $130,000. So the average home cost about 4.83 times the average annual salary.

Today, the average US salary is $59,228. That rise is to be expected, thanks to inflation, but salaries aren’t keeping up with the cost of housing. The median price of a home in 2024 is $420,800, making it now 7.10 times the average annual salary. 

In fact, the cost of a college education is more expensive today too, even after adjusting for inflation. That’s the world Gen Z lives in — it’s just plain harder to get by. So if you want your kids to listen, start by acknowledging that they really do have it tougher, which is all the more reason they need to plan ahead. 

2. Reframe budgeting around their dreams

There are few things Gen Z hates more than being told how to spend their money. TikTok is full of videos of young people laughing while their parents stare in horror at the price tag on vintage sneakers. But that doesn’t mean Gen Z can’t save money — it means they save their money for different things.

And that’s okay. As long as they’re saving, not racking up credit card debt they can’t afford.

So sit down with your kids and put together a spending plan you can all agree on. Be crystal clear about the expenses you’ll cover vs. the ones you’d like them to manage, but make sure to leave them some room to succeed. If they get a job and work hard, they should ideally be able to buy a pizza once in a while and save up for vintage sneakers on top of the bills you’d like them to cover.

There will probably be some growing pains as your kids adjust to budgeting, and that’s okay too. The important thing is to help them learn to manage their money before they’re truly out on their own. 

3. Talk to them about today’s biggest temptations

The truth is, your kids might already know more about saving money than you do. They probably have more than one retail or coupon app on their phone that you’ve never even heard of. The help they need is more around recognizing and resisting the temptations that Gen Z lives with every day.

Do you know about TikTok Shop? Videos selling everything from skin care products to pet accessories are bombarding your kids every time they’re on the app — all of them promising that this is the BEST, most AMAZING deal they’ve ever seen and it’s ONLY available RIGHT NOW before they completely sell out.

Right.

Talk your kids through the difference between actual product research and advertising videos that disguise themselves as everyday people. 

4. Teach them how to use credit wisely

According to the survey of 1,000 college students mentioned above, 40 percent of those who signed up for credit cards during their first year of college say they later regretted the decision.

But owning a credit card doesn’t have to be an automatic “debt sentence.” In fact, credit cards can be useful tools for students who know how to properly manage them.

If you think they can handle the responsibility, teach your kids that credit cards can be used to build a positive credit history and credit score, just as long as they use them sparingly, pay their bills on time each month, keep their credit utilization low, and pay in full whenever possible.

Finally, let them know in no uncertain terms that missed payments can lead to an unending cycle of late fees and interest charges that can damage future credit opportunities, increase debt, and negatively impact their credit score — and their financial health — for years to come. 

5. Educate them about scams and identity theft

Identity theft is a growing issue on college campuses. Scammers and identity thieves often target college students because they have what’s known as a “thin credit profile,” meaning they don’t yet have much of a credit history, which makes it harder for creditors and credit scoring agencies to pinpoint unusual activity. 

Your kids probably already know that scammers use malware and “phishing” emails to try to steal their personal data, but they might not be aware that someone looking over their shoulder or even digging through their trash could end up in identity theft. 

Another favorite scam is to leave corrupted USB drives around just to see who plugs it into a computer out of curiosity.

Make sure your kids are aware of the dangers of identity theft and what precautions they should take to avoid being victimized. At the very least, your kids should use strong passwords, shred all documents that contain personal or financial information (including credit card offers), and only make online purchases through secure websites they trust. 

6. Get them excited for the future

Gen Z went through some key formative years during the height of the Covid pandemic. What was unthinkable to the previous generations became a stark reality for them. It’s about time they got to focus on something positive.

What do your kids love? What are their dreams? Talk to them about how their finances can help them achieve those dreams sooner than they might think.

No matter what they want to save up for, help them create a plan that can get them there while still covering their bills and responsibilities. Show them the real value of budgeting — it’s not about living in fear of spending money but about spending your money with confidence, knowing that you’ve planned for it.

7. Encourage them to use budgeting apps and software

At the end of the day, it doesn’t matter how your kids budget — as long as they have a system they can stick with. But you might want to remind them that glancing at their banking app once in a while isn’t the same thing as having a plan.

If they’d like to try an app, Quicken Simplifi is a great way for them to track their income, stay on top of their bills, see their credit card balances, and plan their monthly spending automatically.

Helping your kids stay on track

While your kids are away at college, it’s important to keep the lines of communication open. Let them know that learning how to manage money properly is a long game, that everyone makes mistakes, and that you might have even made a few mistakes they can learn from.

Talking about money is never easy, but having the conversation is essential if you want your kids to practice responsible financial habits once they’re on their own. With any luck, the lessons you teach them now will last a lifetime.

To break out of that cycle, start by building some fun money into your budget — so you have a stash of guilt-free cash to spend how you want. 

Beyond that, here are 10 great tips for National Wellness Month that can help relieve stress and anxiety without breaking the bank. 

What is National Wellness Month?

August is National Wellness Month, a reminder to step back and think about what you need to feel truly well — physically, mentally, and emotionally. In short, it’s the perfect time to focus on taking care of yourself. 

Why is wellness so important that it gets a whole month? Depression, for one, is on the uptick — it’s the highest it’s ever been, affecting 29% of Americans. Add the fact that almost half of all Americans report sleeping less and stressing more, and it’s clear we could all use a healthy dose of wellness intervention. 

What is doom spending?

In the age of TikTok Shop and Instagram ad reels, “doom spending” has become a super-common way of dealing with anxiety — buying things to quell feelings of stress, anxiety, or sadness about the state of the economy or the world. 

In fact, a 2023 study by Qualtrics found that more than a quarter of all Americans (27%) use doom spending to cope with stress — including 35% of Gen Zers and 43% of millennials.

And hey, that isn’t necessarily bad. If you can afford something that makes you happy, that’s a great choice! But if you feel guilty about it or if that spending adds new financial stress, doom spending can turn into a negative cycle that’s hard to break out of.

10 ways to skip the doom spending and improve your mood

Need some new stress-busting strategies? Here are 10 ways to lift your mood without introducing new financial stress into your life.

1. Challenge yourself to use what you already have

You don’t always need to buy new skincare products to glow up, new running shoes to get in shape, or new toys for your favorite pet. Instead, think about how you could use what you already have.

Squeeze that moisturizer to the last drop, try barefoot yoga on a fresh patch of grass, or turn that empty box into play time. Save that “buy” button for something special.

2. Get outside

You probably already know the times of day when you find yourself scrolling the social feed. It’s like a vortex — all of a sudden, you’re pulled by this compelling force into an endless feed of reels and advertisements. 

Instead, try being active during that time. Push yourself to take a walk around the block or go find the nearest dog park and watch all the cute pups for an hour. Got a lake or river nearby? Sit on a bench with a good book or meditate under a shady pine. 

The outdoors are pretty remarkable — find some time to take it in. 

3. Do a summer rewatch challenge

Who in your circle of friends and family is as obsessed as you are with your favorite old movies or shows? Find those rabid GoT, Seinfeld, or Sopranos fans and start a series rewatch together — think of it like a book club. Talk about themes, find Easter eggs or goofs, and obsess over your favorite scenes or characters. 

Did you know there are 121 episodes of Lost? You could watch 4 episodes a day and it would still take you all month to get through it. Watching solo, or want to add another element? Find a podcast like “The Storm: A Lost Rewatch Podcast” and follow along with them.

4. Or start a summer book club

Maybe you’re a pager, not a tuber. Find a few new titles, gather your friends, and start reading. Need inspiration? You can flip your TikTok algorithm from spin scrubbers to book lovers in an instant by searching #BookTok and engaging with your favorite summer readers. 

If you’re not big into social media, grab your favorite library app and browse through the recommended reads — or go to an actual library. They’d love to see you.

5. Get a massage or do a spa day

Avoiding doom spending doesn’t mean you need to avoid all pleasure that costs money. But instead of ordering food on DoorDash or buying up all the crocheted camp shirts at A&F, reallocate that money into self-care.

If you’re thoughtful about it, a relaxing facial or even a 90-minute massage might do more for your physical and mental well-being — for less cash.

6. Hit the gym

One word: endorphins. Not only is exercise a scientifically proven way to live longer, but it also makes you feel better — about yourself, about the world around you, about your problems. The endorphins you get from even moderate exercise can literally make you feel joy. Just try it.

No gym membership? No problem. Exercise can be as simple as moving your body. Go for a walk — they’re so pleasant. Run if you feel like it. YouTube has literal anthologies of yoga practice — find one that works for you. We only get one body; exercise is a great way to take care of yours.  

7. Meditate

Meditation is an ancient practice that can boost your mood, reduce anxiety, and alleviate stress — no matter where you are. While apps like Calm or Headspace can be helpful, you can always meditate for free.

Find a place where you can sit comfortably. Keep your back and torso straight, and relax your body. Focus on the tip of your nose and inhale — feel the breath expand your ribcage. Then, exhale, still focused on the tip of your nose, feeling your lungs empty. 

The idea is to focus on your breath, letting thoughts come and go without identifying them, and dwelling solely in the present moment. Try it — and enjoy the calmness that pervades. 

8. Take (any) lessons

Want to dazzle your friends at the Omakase spot? Check out Japanese lessons. Always wanted to solo like Coltrane? There’s a saxophone teacher near you. Whether you want to explore rock climbing, learn to cook, or even join the circus, there’s a class for that. 

No matter what your passions are, even if you’re a total beginner, you can find plenty of courses online, usually with a free trial so you can see whether it’s for you. Explore what moves you — this is a great opportunity to nuture your adventurous side and learn something new.

If you decide to stick with it, those lessons might cost some money, but you’ll discover skills and hobbies that can lift your mood without retail therapy.

9. Join a group

Groups come in all shapes and sizes, but the underlying fundamental is true across the board — joining a group is a great way to connect with others, share your interests, and even find a purpose. 

Theater, music, dance, writing, fandom, sports, and more — get out of your comfort zone and do something wild. You could be the next Patti LuPone or Lin-Manuel Miranda.

10. Plan a new doom-friendly budget

And while you’re doing any (or all) of these things, take the month to assess your budget going forward. If you have a budgeting app like Quicken Simplifi, you can even create a Planned Spending category called “Doom Spending” and give yourself the freedom to buy — without the guilt of going overboard.

Living well beyond Wellness Month

So all bets are off once September 1st hits, right? It’s back to TikTok Shop, doom spending, and DoorDash in your pajamas? Maybe — or maybe not. 

Look, there’s nothing inherently wrong with TikTok Shop (or DoorDash), but wellness and genuine self-care are practices you can continue every day, all year long.

They say it only takes 30 days to break a habit, so take this month to push the doom out of the room. By slowing down and really listening to what you need, you can snap yourself out of doom spending for good — and live a happier, healthier life.

This isn’t the same as your take-home pay, which is what you get after taxes and other payments come out of your earnings. For example, Social Security and Medicare taxes, the cost of your health insurance, and retirement contributions might be deducted directly from your salary. Employers usually also withhold income taxes.

Many employers offer jobs with an annual salary agreed in your contract. The biggest difference between a gross monthly income and a yearly income is the time period involved.

However, what you earn in a month also includes irregular or unexpected income that may not appear in an annual salary number. You may have side jobs or make money from bonuses, investments, or other methods outside of a traditional job. All of that extra money should be included in your gross monthly income.

Let’s explore how to calculate gross monthly income and when it comes in handy.

How to calculate gross monthly income

Here are a few simple steps to calculate your gross monthly income.

1. Calculate your monthly salary

If you have an annual salary, divide that by 12 to get a monthly number.

Otherwise, your employee pay stubs will usually list the gross pay, which is your income before anything is deducted. Take note of the relevant pay period and add up the gross pay for the entire month.

If you work for yourself or have other regular contracts, include that income for the month.

2. Add up your additional income

Figure out how much you make in a month (before taxes) from any other sources of income, like interest, real estate rentals, alimony, and side gigs. Add that up too.

3. Combine them for your total gross monthly income

Add everything together, and you’ve got your gross monthly income.

Gross monthly income formula

You can calculate your gross monthly income by looking at how much you receive over a specific period of time. If you have more than one job, calculate the income across all your jobs. Here are some examples of how to determine your income for different kinds of jobs.

For hourly pay

Gross monthly income = (Hourly pay) x (Hours worked in a month)

To calculate the hours worked in a month, you can add up the daily total from your timesheet. If you worked the same number of hours each day:

Total monthly hours worked = (Hours worked per day) x (Number of days worked in the month)

Some months will have more workdays than others, so it’s important to calculate your pay based on the actual days worked.

Example: Let’s say your hourly pay is $20.

If you worked 100 hours in the month, then your gross monthly pay is $20 x 100 = $2,000.

If you worked 8 hours a day for 20 days in the month, then your gross monthly pay is $20 x 8 x 20 = $3,200

For annual salary

Gross monthly income = (Annual salary) ÷ 12

Use the yearly salary that you receive before anything is deducted. Divide that by twelve, and you’ll have your gross monthly income.

Example: Your annual salary is $60,000.

Gross monthly pay = $60,000 ÷ 12 = $5,000

For biweekly pay

Biweekly pay is usually issued on the same day every other week, a total of 26 times in a year.

Gross monthly income = (Biweekly payment made once every two weeks) x 26 ÷ 12

Or, even faster, (Biweekly payment) x 2.16667

Example: Let’s say your biweekly pay is $2,000.

Gross monthly pay = $2,000 x 2.16667 = $4,333.33

If for some reason your biweekly payments change from one paycheck to the next, you can figure out your daily earnings by dividing each biweekly payment by the number of days in that period. Then, add up your daily earnings for the whole month.

For bimonthly pay

Bimonthly pay is also known as semi-monthly, where employers pay twice a month. The payment days may be fixed, like the 1st of the month and the 16th of the month. 

Gross monthly income = (Bimonthly payment) x 2

Example: Let’s say your biweekly pay is $2,500.

Gross monthly pay = $2,500 x 2 = $5,000

If you get paid twice a month and the amounts are different, just add those two payments together to figure out your monthly income.

What is gross monthly income used for?

Gross monthly income matters for many calculations ranging from tax payments to applications for loans and government benefits.

When to use gross monthly income

Figuring out your gross monthly income may be important in situations you might not have considered. Your gross income is used in the following scenarios:

• Loan applications. Lenders look at your debt-to-income ratio to decide how likely it is that you can actually pay back a loan you’re applying for. Most lenders want your debt payments to be 35% or less of your monthly gross income. A high ratio makes you a riskier borrower, while a lower ratio can help you gain access to loans and better interest rates.
• Credit limits. Just like when you’re trying to qualify for a loan, lenders may use your gross income to adjust your credit limit. A credit limit is the maximum amount you can borrow from the bank or lender.
• Government benefits. Eligibility for government-subsidized benefits like Social Security and Medicaid often depend on your gross income. The government compares your gross earnings to specific levels when determining the amounts you qualify for.
• Taxes. The amount of tax you pay changes according to your eligibility for tax deductions and credits. Tax formulas use adjusted gross income to decide how much you owe.
• Rental applications. Landlords often use gross income to decide whether you can afford rent.

When to use after-tax monthly income

Your after-tax monthly income is the amount you’ll use to craft a budget — this is the cash you can spend or save. By calculating your after-tax monthly income, you’ll know what’s available for needs, wants, and savings, including investments or retirement contributions.

Manage your monthly income with Quicken Simplifi

Built to make personal finances powerfully simple, Quicken Simplifi keeps your money on track so everything adds up at the end of the month. From tailored tags and custom categories to real-time reports and investment insights, Simplifi delivers easier money management every day.

When you’re ready to start saving more each month, Quicken is here to help. See how Simplifi makes it easy to budget better and build your financial future.

The steps you take today can also set you on a long-term path toward wealth and financial independence — real independence, with the money you need to do what you want to do and the time to do it, free from the daily grind.

Step 1. Forge a path to financial independence.

When you enter the workforce after college, your financial situation changes dramatically. With a full-time job and a college education, you’ll be flooded with offers for credit cards and personal loans, giving you far more purchasing power than you’ve ever had before. 

It’s important to use that power wisely.

What’s the first step? Decide on the future you want and build that future into your financial plan, starting with a simple, manageable budget.

If the word “budget” makes you cringe, you’re not alone. But budgeting doesn’t mean you have to scrimp and save every dime or deprive yourself of the things you love. Far from it.

Real budgeting — the kind of budgeting that can get you where you want to go — is about planning your future while making sure you have what you need to enjoy life today.

That means building a comprehensive financial plan — one that includes managing your debt, growing your savings, paying your bills, and still having plenty of fun along the way.

Step 2. Separate what you want from what you need.

As you build your plan for financial freedom, the first step is to separate the things you want from the things you need. Start by making a list of all your monthly bills, and be sure to include things like insurance that you might pay for quarterly or even annually instead of monthly. 

Then, add your other expenses, like groceries or dry cleaning. They aren’t technically bills, but you still need them, so they need to be in your budget. Finally, include any loan or debt payments, such as a car loan, student loans, or credit card payments.

On the “wants” side of that balance, make a list of things like Netflix and takeout that you really enjoy and want to be sure to keep.

Remember, everyone’s budget categories are different — be sure to account for all of yours! 

A personal finance app like Simplifi can do this for you. It sets aside enough for your bills every month so you can see what’s left in your spending plan.

Add things like groceries as planned spending, and include loan payments or saving plans as goals you want to contribute to each month.

Once you’ve added your goals, whatever you have left is yours to spend however you want, knowing your financial future is solidly on track.

Step 3. Free yourself from expensive loans fast.

A basic budget needs to start by covering your expenses, which includes making the minimum payments on any loans or debt you might be carrying.

Once those are covered, the next step is to get out from under your most expensive debt.

What’s expensive debt? It’s any debt with a high interest rate. 

Credit cards are a classic example. Even cards that start out with an introductory rate of 0% have a much higher rate that kicks in down the road. If you don’t pay the card off before that initial time period ends, you’ll suddenly be responsible for a lot of extra interest.

If you’re carrying credit card debt, pay that down as quickly as possible. On top of making the minimum payments, contribute as much extra as you reasonably can every month. 

The key word here is “reasonably.” If you try to put so much toward your credit card debt every month that there’s nothing left for a celebratory cup of coffee, chances are good you won’t stick to it very long.

Instead, make a plan! Decide how much you want to contribute toward your credit card debt every month, and then make those payments with confidence, knowing you still have some money left to spend on whatever you want.

If you’re using Simplifi to manage your finances, set up a savings goal for those credit card contributions. Track your progress and celebrate your wins each month as you take another chunk out of that debt!

Step 4. Plan to retire on your own terms.

Once you’ve paid down your high-interest debt, it’s time to start saving for retirement. Why? Because the best way to retire on your own terms is to start working on it early. It all comes down to the power of compounding interest.

Here’s an example:

Let’s say you start contributing $100 each month to your retirement account when you’re 35 years old. At an average annual return of 6.5%, you’ll have over $110,000 by the time you’re 65. That’s not bad, but it gets even better.

Now, let’s say you start putting that same $100 toward your retirement every month when you’re only 20. By the time you’re 65, you’ll have almost $323,000.

Many employers also offer to match your retirement contributions up to a certain amount. That can turn your $100 contributions into $200, giving you over $645,000 if you start when you’re 20.

Plus, as you move up in your job, you’ll be able to contribute even more, putting the dream of being a millionaire easily within reach. The sooner you start, the sooner you’ll get there.

If you have to choose between contributing $100 each month to your retirement or paying off a low-interest loan early, it’s often better to make your retirement contributions a priority and pay off that inexpensive debt over time.

Do you have enough in your budget to max out your employer’s retirement contributions and still pay off that credit card soon? Great! Do both!

Simplifi lets you set up as many goals as you need to track all your monthly contributions and make sure your plans stay on target.

Step 5. Build yourself a safety net.

Once you’re paying down any expensive debt aggressively (like those credit cards), and you’re contributing to your retirement every month, it’s time to work on building a short-term safety net.

Ideally, it’s a good idea to save up enough money over time to pay your expenses for 3 to 6 months. It’s often called an emergency fund, but it’s great for more than emergencies.

For example, if you need to buy a new car, you can use some of those savings for a significant down payment to help you get a better interest rate. You can also use it to meet any unexpected expenses without having to take out a high-interest loan. 

It might sound intimidating to try to save that much money, but small amounts add up over time. Create an emergency fund as part of your financial plan and contribute to it each month.

If you’re using Simplifi, add that fund as another savings goal to track your progress — so you can always see (and celebrate!) how far you’ve come on your debt payments, your retirement, and your emergency savings.

Step 6. Beat these benchmarks.

Another benefit of paying down your high-interest debt is that it can help raise your credit score. How? By reducing your total debt and building a positive credit history.

Your credit score is one of three key benchmarks that can help you track your progress as you work toward the future:

1. Your credit score
2. Your debt-to-income ratio
3. Your emergency fund

1. Your credit score

A score of 670 (out of a possible 800) is considered good. A score of 740 or higher is excellent. If you don’t know your score, you can find it in Quicken Simplifi or Quicken Classic.

Your credit score is important because a good score can lower the rate of any money you need to borrow, from a car loan to a new home, so you’ll pay less in interest.

Building up your credit history can take time, but there are several things you can do to boost your score. 

2. Your debt-to-income ratio

Your debt-to-income ratio is the total amount you’re spending on loan payments every month, divided by your gross monthly income. 

For example, if you spend $1000 per month on loan payments and your gross monthly income is $5,000, your debt-to-income ratio is $1,000/$5,000 or 20%.

A low debt-to-income ratio is another factor that can lower your interest rate when you borrow money. In other words, you want your credit score to be high, but you want your debt-to-income ratio to be low.

A debt-to-income ratio of 43% is the highest ratio you can usually have and still get a qualified mortgage. A rate below 10% is considered excellent.

3. Your emergency fund

For your emergency fund, work on building up enough savings to pay your expenses for 3 to 6 months. That means short-term savings, not your retirement fund. 

Short-term savings include funds you have in a checking or savings account, for example, so you can access that money when you need to.

You’ll also want to build your retirement savings, but it can cost you a lot to pull from those savings early. That’s why they aren’t considered part of your short-term emergency fund.

Step 7. Don’t leave free money on the table.

Many jobs entitle you to a wide array of employee benefits — including things you might not even know about. Make sure you explore what those are so you aren’t missing out on opportunities.

In most organizations, representatives from the human resources department are happy to meet with you to discuss and explain the benefits you might have available.

In addition, some benefits save you money even if they aren’t completely free. Insurance offered through your employer is usually less expensive than buying it separately, and you may qualify for things like discounted gym memberships or career development courses. 

Every dollar you save is another dollar you can put toward your long-term financial plan.

The gift of financial management

When it comes to financial management, the key is to keep up with every purchase—from tacos at the food truck to gas at the pump—as well as loans and investments.

A comprehensive finance app like Quicken Simplifi downloads those balances and transactions automatically, making it a great way to keep up with everything — spending, savings, loans, credit cards, investments, and more.

If you know anyone who could benefit from a financial management tool, consider gifting them a subscription to Quicken Simplifi. On the sometimes rocky path from college to financial independence, there’s no better way to smooth the road.