2021 Conforming loan limits range from $548K to over $1 million

Conforming loan limits increase to $548,250 for most areas

Conforming loan limits are on the rise.

Home buyers in most of the U.S. can now get a conforming loan up to $548,250 with just 3% down.

And the single-family loan limit is over $822,000 in high-cost areas.

Multifamily home buyers get a nice increase in
buying power, too, with limits for 2-4-unit properties topping $1 million in
some areas.

On top of this, we’re seeing ultra-low interest rates carry over from 2020 into 2021.

Put all it together, and you get incredible
purchase and refinance opportunities for home buyers and homeowners alike.

Check today’s conforming mortgage rates (Jan 14th, 2021)


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Freddie Mac and
Fannie Mae loan limits for 2021

Lending limits for conventional loans got a nice boost this year.

The Federal Housing Finance Agency (FHFA) determined home prices are up 7.42% on average across the nation.

It raised
conforming loan limits by the same percentage — a dollar increase of almost
$38,000 for the standard one-unit home. Multi-unit
properties got a similar boost.

Baseline conforming loan limits

Standard loan limits for 2021, which apply in most of the United States, are as follows:

  • 1-unit homes: $548,250
  • 2-unit homes: $702,000
  • 3-unit homes: $848,500
  • 4-unit homes: $1,054,500

Keep
in mind that these are only “standard” limits. In areas with high-cost real estate, buyers get significantly higher mortgage limits.

Maximum conforming loan limits

High-balance
conforming loan limits vary by county. They can fall within the following
ranges:

  • 1-unit homes: $548,250­–$822,375
  • 2-unit homes: $702,000–$1,053,000
  • 3-unit homes: $848,500–$1,272,750
  • 4-unit homes: $1,054,500–$1,581,750

Areas
such as Alameda County, California, Arlington, Virginia, and Jackson, Wyoming enjoy the maximum conforming loan limits, while cities like Seattle, Washington and
Baltimore, Maryland fall between the “floor” and the “ceiling.”

In
Alaska, Hawaii, Guam, and the U.S. Virgin Islands — which follow their own loan
limit rules — the baseline loan limit for 2021 is $822,375 for a one-unit
property.

Verify your home buying eligibility (Jan 14th, 2021)

Conforming
loan limits by county for 2021

What is a
mortgage loan limit?

A loan
limit is the maximum amount you can borrow
under certain mortgage programs.

There
is not just one loan limit, but many. Conventional mortgages adhere to one set
of loan limits, and FHA another.
VA loans did away with limits altogether in 2020.

In the world of conforming loans, Fannie Mae and Freddie
Mac limit “borrowable” amounts to keep their nationwide programs available to
those who need them.

For instance, Fannie Mae doesn’t want a $10 million loan
going through its system. That’s a lot of risk wrapped up in one
transaction, and the agency would rather issue many smaller loans to more home
buyers.

Fortunately,
loan limits are on the rise in 2021 to reflect rising
home prices across the country.

What
is a conforming loan?

A conforming loan is any mortgage that:

  1. Has a loan amount within local conforming loan limits
  2. Meets lending guidelines set by Fannie Mae and Freddie Mac

Mortgages within conforming loan limits are eligible to be backed by Fannie Mae and Freddie Mac, as long as the borrower meets basic criteria for credit score, income, down payment, and debt levels.

Conforming loans typically require:

  • A credit score of at least 620
  • A debt-to-income ratio below 43%
  • A down payment of at least 3%
  • Two-year history of stable employment and income

Exact conforming loan requirements
can vary by lender, but they all have to meet the minimum guidelines set by
Fannie and Freddie.

These
standards give lenders and investors more
confidence in these loans.

As a result, conforming loans are available with ultra-low mortgage rates and just 3% down payment.

Check today’s conforming mortgage rates (Jan 14th, 2021)

What if my
loan is over the conforming limit?

Remember
that the conforming loan limit applies to the loan amount, not the home price.

For
instance, say a buyer is purchasing a 1-unit home in Boulder, Colorado where
the limit is $654,350. The home price is $1 million, and the buyer is
putting $450,000 down.

This
buyer is eligible for a conforming loan. The final loan amount is
$550,000 — well within limits for the area.

Still,
many applicants will need financing above their local loan limit. For
them, a number of solutions exist.

Jumbo loans

The
simplest method is to use a jumbo loan. Jumbo mortgages describe any home loan
above local conforming limits.

Using
the example above, let’s say the Boulder, CO home buyer puts down $200,000 on a
$1 million home. In this case, their loan amount would be $800,000 — far above
the local conforming loan limit of $654,350. This buyer would need to finance
their home purchase with a jumbo loan.

You might think jumbo mortgages would have higher interest rates, but that’s not always the case.

Jumbo loan rates are often near or even below conventional mortgage rates.

The
catch? It’s harder to qualify for jumbo financing. You’ll likely need a credit
score above 700 and a down payment of at least 10-20%.

If
you put down less than 20% on a jumbo home purchase, you’ll also have to pay
for private mortgage insurance (PMI). This would increase your monthly payments
and overall loan cost.

The
next method helps you avoid PMI when buying above conforming loan limits.

Verify your jumbo loan eligibility (Jan 14th, 2021)

Piggyback financing for high-priced homes

Perhaps the most cost-effective method is to choose a piggyback loan. The piggyback or “80/10/10” loan is a type of financing in which a first and second mortgage are opened at the same time.

Typically, this structure is used to avoid private mortgage insurance.

A buyer can get an 80 percent first mortgage, 10 percent second mortgage (typically a home equity line of credit), and put 10 percent down.

However,
these loans are also available for those putting 20 percent down or more. Here’s how
it would work.

  • Home price: $700,000
  • Down payment: $140,000 (20%)
  • Financing needed: $560,000
  • Local conforming limit: $548,250

The
buyer could structure his or her loan as follows.

  • Down payment: $140,000
  • 1st mortgage: $548,000
  • 2nd mortgage: $12,000

The
home is purchased with a conforming loan and a small second mortgage. The first
mortgage may come with better terms than a jumbo loan, and the second mortgage
offers a great rate, too.

Verify your piggyback loan eligibility (Jan 14th, 2021)

What’s the jumbo loan limit for 2021?

Technically there’s no jumbo loan limit for 2021.

Since jumbo mortgages are above the conforming loan limit,
they’re considered “non-conforming” and are not eligible for lenders to assign
to Fannie Mae or Freddie Mac upon closing.

That means the lenders offering jumbo loans are free to set
their own criteria, including loan limits.

For example, one lender might set its jumbo loan limit at $2
million, while another might set no limit at all and be willing to finance
homes worth tens of millions.

But the amount you can borrow via a jumbo or
non-conforming loan is limited by your finances.

You need enough income to make the monthly mortgage payments on your new home. And your debt-to-income ratio (including your future mortgage payment) can’t exceed the lender’s maximum.

You can use a mortgagecalculator to estimate the maximum home price you can likely afford. Or contact a mortgage lender to get a more accurate number.

What if I’m
getting an FHA loan?

FHA loans come with their own loan limits. Standard FHA limits for 2021 are as listed below.

  • 1-unit homes: $356,362
  • 2-unit homes: $456,275
  • 3-unit homes: $551,500
  • 4-unit homes: $685,400

You
might notice that FHA’s limits are considerably lower than conforming limits.
That’s by design.

The FHA program, backed by the Federal Housing Administration, is meant for home buyers with moderate incomes and credit scores.

But
the FHA also suits home buyers in expensive counties. Single-family FHA loan limits reach $822,375
in high-cost areas within the continental U.S. and a
surprising $1,233,550 for a 1-unit home in Alaska, Hawaii, Guam, or the Virgin Islands.

What are
today’s mortgage rates for these loan limits?

Mortgage
rates for conforming loans are stellar, which is why so many buyers consider a
conforming loan before using jumbo financing.

Get
a rate quote for your standard or extended-limit conforming loan. Compare to
jumbo rates and piggyback mortgage rates to make sure you’re getting the best
value.

Verify your new rate (Jan 14th, 2021)

Source: themortgagereports.com

Where Rent Has Become More Affordable – 2020 Edition

Where Rent Has Become More Affordable – 2020 Edition – SmartAsset

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your financial details.

Affordability issues generally affect renters more than homeowners. More than 40% of renters pay more than a third of their household income on rent compared to just 24% of homeowners on their mortgage, according to a February 2020 survey by Freddie Mac. But depending on where they live, renters can lower the burden of their housing costs. That’s why SmartAsset crunched the numbers to identify cities in the U.S. where rent has decreased the most relative to income.

Specifically, we compared rent prices from 2016 and 2019 to median household incomes over the same period. We additionally examined how rent prices have changed during 2020, amid the COVID-19 crisis. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAsset’s second annual study on changes in rent affordability. Check out the 2019 version here.

Key Findings

  • Boston moves into the top spot. Last year, Boston, Massachusetts ranked third in our list of cities where rent is becoming more affordable. This year, it moved up to first, outranking both San Francisco and Oakland, California. Between 2016 and 2019, rent as a percentage of income fell by almost 8%.
  • Coastal cities dominate the top of our list. The top 11 cities where rent has become more affordable are located on a coast. They consist of five on the West Coast (San Francisco, Los Angeles and Oakland, California as well as Portland, Oregon and Seattle, Washington), four on the East Coast (Boston, Massachusetts; Washington, D.C., Baltimore, Maryland and New York, New York), one on the Gulf Coast (New Orleans, Louisiana) and one on the coast of Lake Michigan (Chicago, Illinois). Across those 11 cities, average fair market rent rose by an average of less than 2% between 2016 and 2019, while median household income rose by more than 19% on average.

Top Five Cities Where Rent Has Become More Affordable (2016 – 2019)

1. Boston, MA

Households in Boston, Massachusetts are allocating smaller portions of their paychecks to rent. Though average market rent did not fall over the course of the past three years, incomes rose significantly, causing the average percentage of household income spent on rent to decrease. In 2016, the average fair market rent was $2,949, and median household income was $63,621. In 2019, rent was $3,140, and median income was $79,018. In percentage terms, rent rose by just under 7%, while incomes rose by more than 24% on average.

2. San Francisco, CA

Though rent in San Francisco, California is high relative to many other cities, data from Rent Jungle shows that it has remained flat over the past few years. The average fair market rent was $3,855 in 2016 and $3,823 in 2019. Incomes, by contrast, are on the rise. Between 2016 and 2019, the median household income in San Francisco rose by more than 19%, from about $103,800 to almost $123,900. As result, households are spending, on average, 7.53% less on rent in 2019 than they were in 2016.

3. Los Angeles, CA (Tie)

In Los Angeles, California, the average market rent increased by about $200 between 2016 and 2019, while the median household income increased by almost $13,000. With those changes, households are spending about 7% less of their income on rent.

Notably, despite increasing rent affordability, Los Angeles residents are still spending a lot on rent. In 2019, rent as a percentage of income was 49.75%, the second-highest in our study, behind only that of New York City.

3. Washington, DC (Tie)

The nation’s capital ties with Los Angeles for the No. 3 city where rent has become more affordable. Using Rent Jungle and Census Bureau data, we found that the average household spent about 37% of its gross income on rent in 2016, relative to only 30% in 2019. This large change was caused by primarily by increasing incomes in the city. Between 2016 and 2019, the median household income of residents rose by more than 22%, from roughly $75,500 to almost $92,300.

5. Baltimore, MD

Incomes in Baltimore, Maryland are the lowest of any city in our top five. In 2019, the median household income of Baltimore residents was about $50,200. Between 2016 and 2019, average market rent in the city fell by about $200, while the median household income rose by more than $2,800. With those changes, rent as a percentage of income decreased from almost 43% in 2016 to roughly 36% in 2019.

How the Rental Market Has Changed During COVID-19 (January – September 2020)

We looked at rent affordability through 2019 in the above section because 2020 median household income figures are not yet available. However, we can still see changes in the rental market and subsequent prices for 2020, through the third quarter of the year. Generally, housing markets for renters have been more deeply affected than markets for homeowners during the pandemic. While some families have left big cities to buy more spacious homes in the suburbs, Zillow’s 2020 Urban-Suburban Market Report research shows that suburban housing markets have not strengthened at rates disproportionate to urban ones. The same is not true, however, for rental markets. Zillow found that though rental prices have generally dropped in both urban and suburban areas during the COVID-19 pandemic, the decline has been larger in urban ZIP codes.

This decline has been particularly significant in some of the largest and most populated urban areas. Rent Jungle data shows that average rent prices fell by more than 5% from January to September 2020 in six cities – San Francisco, California; Detroit, Michigan; Boston, Massachusetts; San Jose, California; New York, New York and Austin, Texas – all of which have populations exceeding 670,000. Of those, San Francisco leads for its drop in average fair market rent. Rent Jungle data shows that the average fair market rent in the city fell by almost 17%, from almost $3,800 in January 2020 to about $3,100 in September 2020. Following San Francisco, the biggest gross change in rent occurred in Boston. In January 2020, Rent Jungle reported an average fair market rent of almost $3,200 relative to less than $2,900 in September 2020.

Data and Methodology

To complete our analyses for both sections of this report, we looked at data for 50 of the largest U.S. cities. Specifically, we compared:

  • 2016 rent as a percentage of household income. This is average annual rent divided by median household income. Data comes from rentjungle.com and the Census Bureau’s 1-year American Community Survey.
  • 2019 rent as a percentage of household income. This is average annual rent divided by median household income. Data comes from rentjungle.com and the Census Bureau’s 1-year American Community Survey.

To create the final rankings of cities where rent has become more affordable, we subtracted the 2016 rent as a percentage of household income from the 2019 rent as a percentage of household income. The cities with the largest negative difference – i.e. where relative cost decreased the most – ranked as our top cities where rent is becoming more affordable.

When looking at the rent market in 2020, we compared Rent Jungle data on the average market rent in January 2020 to the average in September 2020. We found the percentage change over that eight-month time period for all 50 of the cities we looked at.

Financial Tips for Renters

  • Invest  your savings early. If you’re living in a city where you’ve experienced robust income growth and minute upticks in your rental costs, you might consider putting those savings to work in a retirement account. After all, achieving a secure retirement requires early preparation. By planning and saving early you can take advantage of compound interest. Take a look at our investment calculator to see how your investment can grow over time.
  • Rent or buy? Understand whether continuing to rent is the right choice for you using SmartAsset’s rent vs. buy calculator. No matter what your homeownership status, it might be useful to learn about the ways that the recent Coronavirus Aid, Relief and Economic Stablility (CARES) Act passed by the government protects homeowners and renters.
  • Consulting an expert could save you time and money in the long run. If you are looking for guidance on how to put your rental savings to good use, it might be helpful to speak with an expert advisor. Finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Questions about our study? Contact us at press@smartasset.com.

Photo credit: ©iStock.com/fizkes

Stephanie Horan, CEPF® Stephanie Horan is a data journalist at SmartAsset. A Certified Educator of Personal Finance (CEPF®), she sources and analyzes data to write studies relating to a variety of topics including mortgage, retirement and budgeting. Before coming to SmartAsset, she worked as an analyst at an asset management firm. Stephanie graduated from Williams College with a degree in Mathematics. Originally from Philadelphia, she has always been a Yankees fan and currently lives in New York.
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What Is A Blog, How Do Blogs Make Money, & More

What is a blog and how does it work? Can you really make money blogging? How much do bloggers make?

Over the years, I have received many questions about blogging. People want to know what is a blog, how they work, is it really a way for people to make money, and so on. 

I completely understand all of the questions. While blogging has now been around for more than a decade, it’s still a fairly new way to earn money. I still have people give me funny looks when I tell them what I do for a living.

But, I didn’t really know what a blog was when I first started mine. I had absolutely no idea what I was doing.

I didn’t know how people made money from blogs or anything else like that.

Pretty much everything I learned about blogging was through trial and error, and I made a lot of mistakes over the years, haha! Honestly, it’s because of those mistakes that I’m where I am right now.

My life has completely changed because of blogging. I was able to quit a job I didn’t love, I travel full-time, and I can retire pretty much whenever I want. 

It’s funny to think about how far I’ve come, especially since I had no idea what blogs even were.

Back then, I also never realized that you could learn how to earn money blogging. I don’t think I even looked into it because that was never my goal when I first learned how to start a blog. I certainly never thought blogging would drastically change my future, but I’m so glad I gave it a shot.

I had so many questions when I started my blog, and I learned 99% of what I know the hard way – by making mistakes.

I know that many new bloggers probably have some of the same questions I had because I receive hundreds of emails a day from readers asking how to start a blog, how to make a living through blogging, and more.  

Today, I’m going to help you by answering some of the most common questions I receive about blogging.

Some of the questions I talk about include:

  • Is 2021 too late to start a website/blog?
  • How do I come up with a blog name?
  • What blogs make the most money?
  • How do you design a blog?
  • How many views do you need to make money blogging?
  • How many blog posts should I have before launching?
  • How do I get my blog noticed by Google?
  • How long until a blog makes money?
  • How do blogs make money?
  • How do bloggers get paid?

I know that blogging can seem scary in the beginning, but remember that most other bloggers were in the exact same place you were when they started.

Blogging, just like any other hobby or job you start, takes time to learn what you’re doing. You have to do research, read about what other people have done, and learn as you go.

For some people this can be frustrating at first, but good things always do take time.

Blogging isn’t as easy as it looks from the outside. Even the most successful bloggers still spend time learning how to do new things. I am constantly signing up for new courses and learning from other people.

Even though it takes time and can feel difficult, blogging is something you can do. You can earn money blogging so that you can work towards living the life you want. 

One of the reasons I love blogging so much is that you can do it all on your own time. You don’t have to learn everything at once. You can start your blog and grow it at your own pace.

While there is no 100% guarantee that you will be able to earn a full-time living by blogging, I know many bloggers who are full-time and are very happy with it.

Content related to what is a blog:

What is a blog? And your other top questions about blogging.

 

What is a blog?

Before we begin, I want to go over what is a blog definition and some other basic blogging questions.

A blog is a website.

Google’s definition of a blog is, “a regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.”

A blog is content that is written on a website. It usually consists of articles, like the one you are reading right now.

What is a blog used for? Blogs can vary from person to person. 

You may create a blog to journal, to teach on a topic, to sell something, to tell a story, and so on. There’s no exact rules about what your blog has to be used for.

What is a blog post? Blog posts are individual entries on a blog. Blog posts usually include text, but they can also have photos, videos, infographics, and more.

An example of a blog post is what you’re reading right now. There is a title, its own URL (that’s the web address), and text where I share in depth information.

 

Is 2021 too late to start a website/blog?

No, it’s not too late, and you haven’t missed out.

The online world is still so new, and each year there are new ways to monetize and grow your blog.

For example, it wasn’t until the past few years that companies and advertisers started realizing the value of online influencers, such as bloggers, and that means even more opportunities to earn money blogging.

Before that, companies mainly wanted to advertise with celebrities, but it is shifting to bloggers and other online influencers (such as Youtubers and Instagrammers!).

The online world is a huge place and it is just going to keep growing. Every blogger earns a living in slightly different ways, and everyone has a different message and story. Plus, there are so many different ways to earn money blogging, and the options have continued to change and grow since I started blogging.

Of course, because the blogging world keeps changing, there will constantly be new things for you to learn, but that will probably always be the case for managing any kind of business.

So, if you are thinking about starting a blog, today is the day. Don’t let your fears hold you back any further! You can find my free How To Start a Blog Course here.

 

How do I come up with a blog name?

Deciding on a name for your blog is probably one of the hardest parts of blogging.

Even if you know exactly what you want to blog about and have some articles written, deciding on your blog’s name may be stopping you from actually creating your website and launching it.

I don’t remember how I came up with Making Sense of Cents, but I’m glad I did. It is still catchy, and I receive compliments on it to this day.

Coming up with a blog name shouldn’t lead to stress, so here are my tips for deciding on a blog name:

  • Make it easy. My blog name isn’t the easiest for people to spell, and even I sometimes jumble it when I’m spelling it. So, my top tip would be to make sure that your blog name is easy for people to type or spell out loud. I’ve seen blog names that are extremely long, contain words that are difficult to spell, and so on. Instead, you should make it as easy as possible for your readers to find you.
  • Think about what you’ll be writing about. Think about the topics you want to write about, who your target audience is, and more, and then jot down descriptive words that are related to each. Brainstorming like this is a good way to come up with a blog name!
  • Use a thesaurus to find similar words. If your first or second choices are taken or if you want to see if there are some catchier sounding blog names, using a thesaurus can help you with some new ideas.
  • Make it catchy. You may want to think of something funny, use alliteration, or something else to make your blog name catchy and memorable.
  • Use your name. If you don’t want something catchy and/or if you think you’re not creative enough, then just use your name. It’s super easy that way, and more and more people are starting to do this. 

See, creating a name for your blog can be easy!

 

What blogs make the most money?

There are many different types of blogs that make money, and you can monetize nearly any kind of blog.

So, how do you determine what to write about?

There is no right or wrong answer to this question. I always recommend creating a blog around a topic that you are passionate about, that you are an expert in, that you like, or something else along those lines.

This can make blogging feel fun instead of like a chore.

You can blog about several topics or you can blog about one specific thing, such as personal finance. For me, I cover a ton of different topics here on Making Sense of Cents. I talk about personal finance, life, travel, RVing, sailing, self-help, and more.

Some things that you may want to think about when choosing your blog topic include:

  • What are you passionate about? I always recommend that you start by thinking about what you love doing. Perhaps it’s a sport that you really love, crafts, cooking, managing money, travel, or something else. Whatever it is, blogging about your passion is great because that will show in your writing, and your readers will enjoy reading your posts.
  • What blogs do you enjoy reading? If you are thinking about starting a blog, I’m assuming it’s because you probably enjoy reading blogs yourself. If that’s the case, then you may want to think about which blogs you really enjoy reading and possibly blog about something similar.
  • What are you an expert in? Now, you don’t need to be an expert in your blog’s topic to earn money blogging (more on that below in the next section), but if you are an expert at something, then this could be a topic that you blog about. There are many successful “How-To” websites because people love to learn new things through blogs. And, there is probably something you could teach (everyone’s an expert at something, even if you don’t realize that yet!). Think about the questions your friends and family are always asking you about, topics that you enjoy helping others with, and so on.
  • What things do you like learning about? Like I said above, you don’t need to be an expert in a topic to blog about it. People LOVE reading blogs from people who are learning or trying new things. This is because everyone has to start somewhere, and people love following the journey and seeing how something is actually done. So, if you are learning how to earn money blogging, for example, that could be where you start your blog. You can write about all of your mistakes, talk about what you’ve learned, show how you have tried and reviewed different options, and so on.

To learn how to make money with a blog, your blog can be about anything and/or everything. It’s entirely up to you.

Below is a list of possible blog examples and blog topic ideas. The list doesn’t end here either. Choose one, all, or some. It’s all up to you.

  • Lifestyle
  • Home
  • Family
  • Finance
  • Crafts
  • DIY
  • Small business
  • Outdoor activities
  • Fitness and health
  • Food
  • Inspiration and advice
  • Animals
  • Travel
  • Games
  • Relationships
  • School
  • Electronics, and more!

That’s the beauty of having a blog – it can be about anything and you can still earn money from it.

There are a few topics I would avoid if you aren’t an expert, like blogging about legal issues, tax issues, or medical advice. You could get someone in a lot of trouble if you gave them the wrong information.

 

What is the best blogging platform to make money?

Your blog should be self-hosted if you want to earn money blogging. This is actually one of the first things you should do.

I recommend that you start on self-hosted WordPress (this tutorial will help you start your blog the correct way). I cannot say this enough, but I do not recommend Blogger or WordPress.com (you want the self-hosted version, which is WordPress.org – confusing, I know). Buying that $10 domain name from Blogger or GoDaddy does not mean you are self-hosted either.

Unless you self-host your blog, advertisers, companies, and readers will still know you are on Blogger or free WordPress, and that can look unprofessional. Plus, your blog can be deleted at any time and for no reason if you are using a free version, which actually happened to me. Even though you may save some money in the beginning, not being self-hosted can hurt your chances of earning money through your blog.

Seriously, just trust me. Go with self-hosted WordPress, and it will significantly increase your chances of monetizing your blog.

If you want further proof, take a look at my past income reports. You can tell that my blogging income didn’t take off until I switched to WordPress. That right there is a lot of proof that being self-hosted on WordPress is the way to go!

To recap, the positives of being self-hosted on WordPress through Bluehost include:

  • Your blog will look more professional meaning you will increase your chances of making money online.
  • You will have complete control over your blog.
  • You own your blog, and it can’t be deleted for any reason.

 

How do you design a blog?

To create your blog, I recommend heading to my tutorial: How To Start A WordPress Blog On Bluehost.

After that, you will have three options when it comes to designing your blog:

  1. Designing your blog on your own
  2. Paying someone to design your blog
  3. Purchasing a premade theme (the quickest option and surprisingly affordable)

I usually recommend that a new blogger purchase a premade blog design, such as through Beautiful Dawn Designs. She provides great premade designs for just $45 and this is probably the easiest and quickest design option.

 

How much do I have to spend before I can earn money blogging?

When I first started my blog, I spent almost NOTHING on blogging expenses.

I spent less than $100 the first year and not too much more in the second year.

In fact, I probably went a few years when I was only spending about 1%-2% of my revenues on blogging expenses.

Now, some of my expenses include:

  • My computer
  • The actual blog (design, hosting, etc.)
  • Courses, guides, and ebooks
  • My email (newsletter) list
  • Virtual assistant and editor
  • Technical management
  • Transaction fees

But, you do not need to spend money on all of these things to earn money blogging.

Learn more about my expenses at My Complete List of Monthly Expenses for a Multi Million Dollar Blog.

 

How many views do you need to make money blogging?

You do not need millions of pageviews per month to earn money blogging, but if you want to increase your income, it will be important to increase your page views.

Every blog is different, and it isn’t always the blogs with the largest number of readers that make the most money. That’s because once you understand what your readers want, understand how to effectively reach out to companies for partnerships, and know how to charge the correct rate, you can make a good income online in many cases, regardless of the amount of pageviews you receive.

But, if you want to increase your pageviews, here are my tips:

  1. Publish high-quality blog posts. Readers come back to blogs with high-quality and helpful posts. I recommend that your blog posts be at least 750 words, but more wouldn’t hurt either. The majority of my blog posts are around 1,500 to 3,000 words (this one is close to 5,000 words!).
  2. Be active on Pinterest. Pinterest is one of my top traffic sources. To increase your pageviews with Pinterest, I recommend creating great images, making sure the description and title of your images are catchy, pinning regularly, and only pinning long images. I use Picmonkey to edit all of my images and Tailwind to schedule them.
  3. Be active on other social media sites. Social media lets you interact with your audience more and can help you expand your audience. Besides Pinterest, you may want to check out Facebook, Twitter, TikTok, Instagram, Snapchat, Youtube, and others.
  4. Post regularly. If you want to earn money blogging, you should publish something at least once a week. Going for weeks or months at a time without a blog post can lead to readers forgetting about you.
  5. Network with other bloggers. You should look at other bloggers as friends and colleagues, not competition. This means you may want to interact with them on social media, reach out to them via email, attend conferences, and more. Of course, be genuine and give more than you take.
  6. Guest post. Guest posting is a great way to reach a new audience and helps build partnerships with other bloggers.
  7. Make sure it’s easy to share your content. I love sharing posts on social media, but it gets frustrating when some blogs make it more difficult than it needs to be. You should always make sure it’s easy for readers to share your content. This could mean making your social media icons easy to find, having all of the info input that is needed for sharing (title, link, and your username), and so on. Also, you should make sure that when someone clicks on one of your sharing icons the title isn’t in CAPS (I’ve seen this too many times). No one wants to share a blog post when it sounds like you’re screaming at them.
  8. Create catchy headlines. The title of your post is a major factor influencing whether readers click over or not. I like to use the CoSchedule Headline Analyzer to help me with my headlines.
  9. Learn SEO. SEO (search engine optimization) is not something I could teach in such a small section, but I recommend doing your research and learning more about what it is and how it can help you.
  10. Make it easy for readers to browse. If you want more pageviews, you should make it as easy as possible for readers to read your other blog posts. Readers should be able to easily find your blog homepage, categories, tags, search bar, and so on. Also, I recommend including links for related posts in every single one of your blog posts.

 

How often should I blog?

I recommend publishing a blog post at least once a week.

This is because consistency is important when it comes to blogging.

I started out publishing short blog posts a few times a week. Now, I try to do just one long blog post each week. I find that works best for me and Making Sense of Cents.

Others may decide to blog every single day, and some may try every other day. It all depends on what you would like to do.

 

How many blog posts should I have before launching?

I recommend simply just launching your blog with one blog post. You can continue to add more as you go.

I recommend this because you won’t have a ton of readers in the beginning anyways, so just getting started is going to be your best plan of action.

Too many people overthink this question, which just delays them from actually starting their blog.

 

What is the ideal length for a blog post?

The ideal length varies. I usually recommend that a blog post be at least 750 words.

For Making Sense of Cents, my blog posts are almost always at least 2,000 words, and I have written some huge whoppers (like this one) that are around 5,000 words too.

The ideal length for your article will depend on your niche, and the topic that you are writing about.

 

How do I get my blog noticed by Google?

For your blog to be found on Google search results, you’ll want to learn about Search Engine Optimization (SEO).

You can sign up for The SEO Starter Pack (FREE Video Training) – Level up your SEO knowledge in just 60 minutes with this FREE 6-day video training.

 

How long until a blog makes money?

This is a hard question to answer, and it’s also one of the most common questions I receive.

As you can tell from my past income reports, it took me nearly a year of blogging to start earning a few hundred dollars a month from my blog. After two years of blogging, I was earning several thousands of dollars a month, which was all on the side of my day job.

I know some bloggers who were making thousands of dollars a month after just a few months of blogging. There are bloggers out there who began a year or two after me and are making hundreds of thousands of dollars a month. There are also other bloggers who aren’t making any money at all.

As you can see, blogging is not a get-rich-quick scheme and there isn’t a timeline for when you will start to earn money blogging. However, if you are serious about it, you never know what it may turn into.

It all depends on you, the effort you put into your blog, whether you have the time to learn how to monetize your blog, and more.

 

How do blogs make money?

There are several ways to earn money blogging, including:

I go in depth on each way monetization method here – How To Earn Money Blogging: Your Top Questions Answered.

 

How do bloggers get paid?

Many of you are interested in blogging, but you aren’t sure where the income actually comes from.

How does the money actually get to you?

You receive blogging income from whoever is paying you.

  • If it is affiliate marketing you are providing, then you are paid by the company that makes the product or service. When someone buys something or signs up through your link, that’s when you get.
  • If someone is paying you to place an advertisement on your website, then you get paid by the company who you are advertising for.
  • If you are publishing a sponsored post, then you are paid by the company who is sponsoring that post.
  • If you have display ads on your website, such as with Google Adsense, then you are paid by Google or by any number of other companies.

There are many companies and blogging networks out there that you can use to earn money blogging, and they usually pay you through PayPal or with a check in the mail.

 

What blogging ebooks and courses do you recommend?

It takes a lot of work to grow and build a successful blogging business!

If you want to earn money blogging, then you may want to look into buying ebooks and/or courses that will teach you about the topics that will help you become a better blogger from the very beginning. Plus, there are many blogging secrets that you just can’t find by searching the internet. So, by taking a course or reading an ebook, you will learn the exact steps to take to help you succeed.

I’m almost always taking new blogging-related courses because I know that there is always something new to learn.

Here are the ebooks and courses that I recommend for bloggers:

  • Making Sense of Affiliate Marketing. I share my exact strategy and tips in this very informative online course. If you’re a blogger, then you NEED this course. I show you exactly how to make passive income from blogging, even while you’re sleeping.
  • 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. Lena Gott’s guide is full of great information on how to increase your blog’s page views. If you are feeling stuck or if you are a new blogger, check out this resource! Lena went from 17,000 monthly page views to 400,000 and shares all of her best tips in this guide.
  • Making Sense of Sponsored Posts. I launched this course with my sister, Alexis of Fitnancials, in 2018 to help bloggers earn money through sponsored posts. Between the two of us, we earn around $20,000-$30,000 a month from sponsored posts. We teach finding sponsorship deals, maintaining partnerships, and how to always make sure that you are helping your readers.
  • My favorite Pinterest course is Pinterest Traffic Avalanche. This course shows you how to get free traffic from Pinterest to your blog. You’ll learn about Pinterest SEO, how to set up Rich Pins, how to create viral content, how to make Pinterest images, all about group boards, and many other valuable Pinterest strategies.
  • If you want to learn about Facebook ads, I recommend reading How One Blogger Grew His Blog to Over 2 Million Visitors In A Year.

The blogging ebooks and courses above will help you to create a successful blog. They will show you how to master Facebook, get crazy traffic from Pinterest, grow your blogging income, and more.

 

If blogging is so great, then why doesn’t everyone do it?

I hear questions like this pretty often. I also get a lot of people asking me, “If it’s so easy, why don’t you just start multiple blogs and make even more money?”

Blogging is not printing money.

It’s not a scam, and it’s not a get-rich-quick scheme.

Learning how to earn money blogging is work, and just like with all jobs – not everyone wants what you want.

And, for every successful blog out there, there are probably hundreds of bloggers who will never earn money blogging. While you can earn money blogging, not all bloggers will.

It would be like saying that 100% of people who start a business will see success. That is just never going to happen – businesses fail, business owners have a change of heart, and others just don’t find it enjoyable.

I know I am always talking about the positives of blogging, but I also like to mention how it’s not the easiest.

After all, if blogging was easy, then everyone would do it and everyone would make thousands of dollars a month.

But as you know, that’s not the case.

Not everyone is going to earn money blogging because it is WORK! Most new bloggers quit just a few months in. A few months is not enough time to see if your blog will be successful. It took me six months before I started to earn money blogging, and I only earned $100. Now, I have made over $5,000,000 from my blog over the years.

It’s funny/weird to think about what life would be like if I would have quit back then.

Just like you, I went from asking “what is a blog?” to where I am now. And, I’m constantly learning new things about blogging and that is one of the reasons why I enjoy it so much.

Once you realize that blogging is hard, you will be ahead of 99% of everyone else in the game. Don’t assume, like most people do, that blogging is easy money.

Starting a blog can be difficult. But, all bloggers start at the same point.

I remember being so lost when I first started my blog. I had to learn everything the hard way – it sure was difficult at times.

But, I have always really enjoyed blogging. I think that is so important when it comes to this type of business – you either need to have passion in your blog and/or passion in what your blog allows you to do in your free time (such as travel or spending more time with your family).

 

Have other blogging questions?

Don’t fret!

I have other blog posts similar to this one where I have answered many other blogging questions.

Please head to How To Earn Money Blogging: Your Top Questions Answered for answers to questions such as:

  • How does a blogger network with other bloggers?
  • What processes do you have with new blog posts?
  • In what ways can I start making money from a blog?
  • What is affiliate marketing?
  • What are sponsored posts?
  • What is display advertising?
  • Can I create my own product to sell on my blog?
  • Do you have to pay taxes on blogging income?
  • Where do you get your photos from?
  • Why do I need an email list for my blog?
  • How do you think of ideas for new blog posts?

I was going to include all of those questions here but that would have made this blog post well over 10,000 words!

What other questions do you have about blogging?

Related Posts

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Source: makingsenseofcents.com

Where More Young Residents Are Buying Homes – 2021 Study

Where More Young Residents Are Buying Homes – 2021 Study – SmartAsset

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The homeownership rate in America peaked at a little more than 69% in 2004 before falling to 63.7% in 2016, according to U.S. Census data. Despite the fact that it has rebounded to a little more than 65% in 2019 overall, only 36.4% of Americans younger than 35 own their homes. It may be easier in some places, though, for this young cohort to buy homes. To that end, SmartAsset crunched the numbers to find the cities where people younger than the age of 35 are most likely to own their own home – and to see where this number has gone up in recent years.

To find the cities where more under-35 residents are buying homes, we compared the homeownership rate for this demographic in 2009 with the homeownership rate in 2019 for 200 of the largest U.S. cities. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

Key Findings

  • Young homeownership has decreased overall since 2009. While there are plenty of cities where homeownership among younger residents has increased, over the past decade the under-35 homeownership rate decreased by 3.71%, on average, across the 200 cities we analyzed.
  • Under-35 homeownership lags compared to that of older generations, particularly in large cities. Though some two-thirds of all Americans owned their homes in 2019, just one-fourth (26.15%) of residents younger than 35 did in the 200 cities we analyzed. Homeownership rates are particularly low for the under-35 set in America’s largest cities: of the 10 with the highest populations, nine are in the bottom half of the study for 2019 homeownership rate (only Phoenix cracks the top half at No. 67), and all 10 had decreasing homeownership rates from 2009 to 2019, with six out of 10 — Phoenix, San Jose, Philadelphia, Dallas, Houston, Chicago — ranking in the bottom half of the study for change in homeownership rate from 2009 to 2019.

1. Midland, TX

Midland, Texas has seen a 10-year increase of 17.11 percentage points in the homeownership rate among people younger than 35, the largest growth seen in this study. The total homeownership for that age cohort in 2019 was 52.42%, the fourth-highest rate we analyzed for that metric. Together, this makes Midland the top place where more young residents are buying homes.

2. Cape Coral, FL

The homeownership for younger Cape Coral, Florida residents in 2019 was 55.54%, the third-highest rate in the study for this metric. That’s an increase of 8.71 percentage points compared to 2009, the fourth-highest increase for this metric across all 200 cities we considered.

3. Joliet, IL

Joliet, Illinois, located about 30 miles southwest of Chicago, had a homeownership rate of 63.48% for under-35 residents in 2019, the highest rate of all the cities we studied. Joliet ranks ninth for the 10-year change in homeownership, increasing 5.48 percentage points from its 2009 rate of 58.00%.

4. Mesquite, TX

Mesquite, Texas is part of the Dallas metro area, and in 2019, the homeownership rate among residents younger than 35 was 45.46%. That ranks 11th in our study, but in 2009 the rate was just 35.47%, meaning the increase over 10 years was 9.99 percentage points, third place for this metric.

5. Bakersfield, CA

Bakersfield, in central California, ranks 20th for homeownership rate among younger people in 2019, at 39.75%. That’s a 10.01 percentage point increase over the 10-year period from 2009 to 2019, the second-highest jump for this metric in the study.

6. Aurora, CO (tied)

Aurora, Colorado ranks 15th for the 2019 homeownership rate among people younger than 35, at 42.28%. That is an increase of 5.29 percentage points from 2009, the 10th-largest jump we observed in the study.

6. Port St. Lucie, FL (tied)

Port St. Lucie, Florida has the fifth-highest homeownership rate among younger people in 2019, at 51.93%. It ranks 20th for its increase in that percentage from 2009, at 2.70 percentage points.

8. Gilbert, AZ

Gilbert, Arizona, located near Phoenix, has the eighth-highest homeownership rate among residents younger than 35, at 50.08%. That increased 2.69 percentage points since 2009, good enough for 21st place in that metric.

9. Fort Wayne, IN

Fort Wayne, Indiana ranked 17th in both of the metrics we measured for this study. The homeownership rate among those younger than 35 was 41.24% in 2019, a 3.32 percentage point increase over the previous 10 years.

10. Rancho Cucamonga, CA

The final city in the top 10 of this study is Rancho Cucamonga, California, which ranked 21st for under-35 homeownership in 2019, at 39.39%. That is a 3.77 percentage point jump since 2009, the 14th-biggest increase we observed across all 200 cities in the study.

Data and Methodology

To find the places where more young residents are buying homes, we compared the 2009 homeownership rate for people younger than 35 in 200 of the largest U.S. cities.

To find the cities where more young Americans are buying homes, SmartAsset examined data for 200 of the largest cities in the U.S. We considered two metrics:

  • 2009 homeownership rate for those under 35. This homeownership rate among 18- to 34-year-olds in 2009. Data comes from the U.S. Census Bureau’s 2018 1-year American Community Survey.
  • 2019 homeownership rate for those under 35. This homeownership rate among 18- to 34-year-olds in 2019. Data comes from the U.S. Census Bureau’s 2009 and 2018 1-year American Community Surveys.

First, we ranked each city in both metrics. Then we found each city’s average ranking and used the average to determine a final score. The city with the highest average ranking received a score of 100. The city with the lowest average ranking received a score of 0.

Tips for Buying a Home

  • Never too old for some expert guidance. No matter what age you are, buying a home is a big step, and a financial advisor can help you get ready to take it. Finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Meticulous mortgage management. Chances are you’ll need a mortgage to facilitate buying your home. Use SmartAsset’s free mortgage calculator to see what your monthly payments might be based on your financing rate and down payment.
  • Taxes don’t always have to be taxing. If you’re moving to one of the cities on this list, your tax burden might change. Use SmartAsset’s free income tax calculator to see what you’d owe the government each year if you pick up stakes and move.

Questions about our study? Contact press@smartasset.com.

Photo Credit: © iStock/valentinrussanov

Ben Geier, CEPF® Ben Geier is an experienced financial writer currently serving as a retirement and investing expert at SmartAsset. His work has appeared on Fortune, Mic.com and CNNMoney. Ben is a graduate of Northwestern University and a part-time student at the City University of New York Graduate Center. He is a member of the Society for Advancing Business Editing and Writing and a Certified Educator in Personal Finance (CEPF®). When he isn’t helping people understand their finances, Ben likes watching hockey, listening to music and experimenting in the kitchen. Originally from Alexandria, VA, he now lives in Brooklyn with his wife.
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15 Home Business Ideas & The Free Courses You Need To Get Started

Are you looking for a work from home job or some at home business ideas?

If so, then I have a great list of free resources, such as courses and guides, that will help you find the best option and learn how to get started. Plus, all of the courses and guides in this article are free!

home business ideas

home business ideasIf you’re looking to make extra money, or even a full-time income, working from home is a great option. There are lots of realistic home business ideas that allow you to work on a flexible schedule.

In fact, around 50% of U.S. businesses are home based, and that number is expected to grow well into the future.

But, many people don’t know what kind of options are available or how to get started with their in home business ideas.

This article is a good starting point because I’m going to tell you about 15 different profitable home based business ideas and link to free courses, workshops, and guides that will help you kick off each of these ideas.

There are lots of valuable paid courses out there, but if you’re not sure about an idea, you might not want to spend hundreds of dollars on a course. That’s why free courses and guides are a great way to start.

You can learn more about each of these small business ideas, learn some of the basic skills, how much money you can earn, and more. You get to test these ideas a little bit before you invest a lot of time and money.

No matter what kind of business you decide to start, I think you’ll really enjoy starting one from home. 

I have been working from home since 2013, and I wouldn’t change it for anything! I absolutely love and enjoy running a business from home.

It has allowed me to travel full-time, save enough money to retire early, love what I do each day, and more.

Many people love running home based businesses for those reasons, but it also cuts your commute, allows you to earn money in your spare time, be your own boss, work on a flexible schedule, and more.

So, to help you get started, today I will explain some of the best small business ideas from home and which free online courses can help you get started.

Here is a quick list of the free work at home courses and resources I’m sharing:

  1. Selling Printables on Etsy Ebook
  2. Sell on Amazon Starter Course
  3. How To Start a Blog Course
  4. Build A Voiceover Action Plan From Scratch Minicourse
  5. Start An Online Advertising Business From Scratch
  6. Start Your Virtual Bookkeeping Business
  7. Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days
  8. General Transcription Mini-Course
  9. Become a Proofreader 76 Minute Webinar
  10. Court Transcript Proofreading Mini Course
  11. Podcast Virtual Assistant Workbooks
  12. Make Money Writing Romance Novels ecourse
  13. Pinterest Virtual Assistant Training Workshop
  14. Jumpstart Your Virtual Assistant Business
  15. Self-Publishing Your First Book

Below, I will be diving deeper into what each option is like, as well as more information about each of those free resources.

Below are 15 home business ideas.

1. Sell printables on Etsy.

Are you looking for a smart home business idea that allows you to use your creativity? Are you wondering “What can I sell from home to make money?”

If so, I recommend checking out this option. See, creating printables on Etsy can be a great side hustle because you just need to create one digital file per product, which you can then sell an unlimited number of times.

Printables are digital products that customers can download and print at home. Examples include grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, and patterns.

You can sign up for this free ebook that helps you figure out where to start when it comes to selling printables on Etsy.

Related content on successful home business ideas:

 

2. Sell items on Amazon.

Yes, you can make money selling items on Amazon. Actually, this is one of the home business ideas with low start up costs because you can literally start selling items from around your house. Make money while you declutter your home, what’s not to love?!

The first year that my friend Jessica ran her Amazon FBA business, working less than 20 hours a week total, she made over $100,000 profit!

This free course shows you how to start a profitable Amazon business in a 9-part video course. You’ll learn:

  • The exact steps to follow to set up your Amazon Seller account
  • Two easy and affordable ways to find items to sell
  • How to choose profitable inventory that customers actually want to buy

Click here to sign up for the FREE Amazon FBA Starter Course!

 

3. Start a blog to work at home.

For obvious reasons, blogging is my favorite on this list of profitable home business ideas.

It is a business that allows me to travel full-time, have a flexible schedule, earn somewhat passive income, and more.

Blogging changed my life for the better, and it allows me to earn thousands of dollars a month, all by doing something that I love.

My blog was created on a whim as a way to track my personal finance progress. And when I first started my blog, I honestly didn’t even know that this was going to be one of the best small profitable business ideas out there. At least that’s been the case for me! 

You can easily learn how to start a blog with my free How To Start a Blog Course.

Here’s a quick outline of what you will learn:

    • Day 1: Reasons you should start a blog
    • Day 2: How to determine what to blog about
    • Day 3: How to create your blog (in this lesson, you will learn how to start a blog on WordPress – my tutorial makes it very easy to start a blog)
    • Day 4: How to make money blogging
    • Day 5: My tips for making passive income from blogging
    • Day 6: How to grow your traffic and followers
    • Day 7: Miscellaneous blogging tips that will help you be successful

 

4. Become a voice over actor.

A voice over actor is the person you hear but rarely see on YouTube videos, radio ads, explainer videos, corporate narration, documentaries, e-learning courses, audiobooks, TV commercials, video games, movies, and cartoons.

In 2014, Carrie Olsen replaced her salaried day job to become a full-time voice over actor. People are constantly asking her how she got her start and how they can too.

So, she created Build A Voiceover Action Plan From Scratch Minicourse — This free course will help you learn about becoming a voice over artist, even if you’re brand new!

 

5. Run Facebook ads for local businesses.

Did you know that you can make a living from Facebook? With Facebook advertising, you can help businesses expand their reach.

And, yes, this is a skill that you can learn without any prior experience in marketing or advertising.

The going rate for Facebook Ad management is $1,000 – $1,500 per month, per client.

Last year, business owners spent over $88,000,000 per day on Facebook ads. This is expected to continue to grow, and it is one of the largest advertising spaces that exists.

My friend Bobby Hoyt knows a lot about this topic. Bobby is a former high school teacher who paid off $40,000 of student loan debt in a year and a half. He now runs the personal finance blog Millennial Money Man full-time, as well as a digital marketing agency for local businesses that he started in 2015.

Bobby has a free webinar on this topic too. His webinar, Start An Online Advertising Business From Scratch, will teach you how to start this business even if you’re brand new, how to find paying clients, and more.

 

stay-at home business ideas

stay-at home business ideas

6. Start a bookkeeping business.

A bookkeeper is someone who tracks the finances of a business. They may handle payroll, billing and invoicing, etc.

These are all skills you can learn without being an accountant or having any previous experience.

Ben, from Bookkeeper Launch, helps people get started as bookkeepers even when they don’t have any experience. Ben is a CPA who founded his business after realizing that many businesses needed better bookkeepers. 

Start Your Virtual Bookkeeping Business will teach you more about running your own virtual bookkeeping business. You’ll learn:

  • Is a bookkeeping business for you?
  • What exactly is a bookkeeping business? What kind of work do they do?
  • How much money can you make as a bookkeeper?
  • How do you find clients?

 

7. Search for items to resell.

Have you ever found something that you thought you could resell to make a profit?

Melissa’s family earned $133,000 in one year by buying and selling items that they’ve found at thrift stores, yard sales, and flea markets.

Some of the best flipped items that they’ve sold include:

  • An item that they bought for $10 and flipped for $200 just 6 minutes later
  • A security tower they bought for $6,200 and flipped for $25,000 just one month later
  • A prosthetic leg that they bought for $30 at a flea market and sold for $1,000 on eBay the next day

This is one of the home business ideas that anyone can start because you can start off selling things in your own house — I know we all have lots of stuff in our house that we could stand to get rid of. Then once you get a feel for the work, you can start purchasing items to resell.

Melissa has a great free webinar, Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days, that will help you learn how to make money by flipping items.

8. Transcribe audio or video content into text.

Transcription is when you turn audio or video content into a text document. You listen to what’s being said and type it up.

There are many businesses looking for transcriptionists too – since general transcriptionists convert audio and video to text for virtually any industry, there really isn’t a typical client. Some examples include marketers, authors, filmmakers, academics, speakers, and conferences of all types.

Beginning transcriptionists earn around $15 an hour and it goes up from there.

You can learn more in the Free General Transcription Mini-Course. In this course, you will learn what it takes to become a transcriptionist, how much money you can earn, how you can find jobs, and more.

 

9. Become a general proofreader.

Proofreading is one of the most flexible and detail-orientated home business ideas that work. All you need to work as a proofreader is a laptop or tablet, an internet connection, and a good eye for finding mistakes.

Proofreaders look for punctuation mistakes, misspelled words, lack of consistency, and formatting errors.

You take content that other people have written and then go over it with a fine-tooth comb. You might be proofreading blog posts, print articles, academic articles, website copy, ad copy, books, student papers, emails, and more.

In one year, Caitlin made slightly over $43,000 by being a freelance proofreader.

Caitlin put together a FREE 76-minute workshop, where she answers all of the most common questions about becoming a proofreader, and she even shows you how to use the most popular tools used by proofreaders around the world. You can sign up for free here.

 

10. Become a court transcript proofreader.

Becoming a court transcript proofreader is a more focused version of the last idea.

Here’s what it’s like:

“Court reporters use digital stenography machines in combination with computer-aided transcription software to write verbatim records of various legal proceedings. They report depositions, trials, hearings, arbitrations, case management conferences, compulsory medical examinations, examinations under oath, and pretty much any other type of legal proceeding. Because of the sensitive nature of legal proceedings, it’s imperative that as many errors as possible be eliminated from transcripts — an especially major error could ruin an entire trial!”

Due to this, many court reporters also use court transcript proofreaders.

There is more training that goes into becoming a court transcript proofreader, and that is why I separated it from the general proofreading job above.

Caitlin, mentioned above, also has a great FREE 7 day course just for people who are interested in becoming a court transcript proofreader.

 

Home business ideas with low startup costs

Home business ideas with low startup costs

11. Become a podcast virtual assistant.

There’s a big demand for podcast virtual assistants right now.

This is because there are over 800,000 podcasts out there, and that number just continues to grow. Podcasts are still a pretty new area, and that opens the door for lots of home business ideas that help out with all of these podcasts.

While the podcast host is responsible for recording themselves, other tasks like editing and publication take time, so many podcasters outsource their work to freelancers or virtual assistants. Also, some podcasters may not know how to do those things, or they may choose to focus their time on other areas.

Some of the different services you can offer as a podcast virtual assistant include:

  • Audio editing
  • Marketing and promotion
  • Publication
  • Distribution
  • Show note creation

You can sign up here for free information that will tell you more about how to become a podcast VA. In this free resource, you’ll learn exactly what a podcast virtual assistant is, the services you can offer, and starting rates.

 

12. Write romance novels.

My friend Yuwanda Black has found one of the most interesting home business ideas – she writes romance novels, and in one month, she was able to make over $3,000!

With her free Making Money Writing Romance ecourse, she teaches you how to make money writing and self-publishing romance novels.

It is taught from first-hand experience, which Yuwanda has because she’s written and self-published 50 romance novellas since 2013. And, she continues to publish today.

 

13. Work as a Pinterest virtual assistant.

Working as a Pinterest virtual assistant is a growing field as more and more business owners are using Pinterest to grow their business.

Pinterest VAs help businesses improve their reach by doing things like:

  • Designing Pinterest images for a website
  • Helping business owners set up their Pinterest account
  • Scheduling pins because this can be time consuming for the average business owner
  • Brainstorming a marketing plan

Click here and click on “Free Training Workshop” to learn how to become a Pinterest virtual assistant and find your first client. In this free course, you’ll learn what you need to do to get started, what services to offer, and how much to charge as a Pinterest virtual assistant.

 

14. Work as a virtual assistant.

If you’re looking for home business ideas with low startup costs, then virtual assisting is a great one!

Virtual assistance is a field that is growing very quickly and it is one of the very popular stay-at home business ideas.

Not only does the internet allow us to complete more of our daily tasks online, more and more people are working online. This presents a good opportunity for more virtual assistants.

Virtual assistant tasks may include social media management, formatting and editing content, scheduling appointments or travel, email management, and more. Basically, you can get paid to do any task that needs to be done in someone’s business, but doesn’t need to be done by them.

If this is one of the home business ideas you’re interested in, I recommend checking out Jumpstart Your Virtual Assistant Business. In that link, you’ll receive a free worksheet and workbook that will help you decide what virtual assistant services you can offer (there are over 150 choices!).

 

15. Write your own eBook for work from home ideas.

Writing your own eBook is a great way to make money from home, and there is probably something super helpful that you could write about (even if you think otherwise!).

In fact, my friend Alyssa self-published her first book and has sold more than 13,000 copies.

She is now earning a great passive income of over $200 a day from her book ($6,500 in one month alone!).

Learn more at Self-Publishing Your First Book. This free series will teach you what it takes to publish a book, including the strategies used to launch a book, writing tips, and more.

 

What is the best home business to start? What are the most successful small businesses?

As you can see, there are plenty of different home business ideas out there, and this list is only scratching the surface. There are full-time home based business ideas, and then there are part-time business ideas.

The best business home based ideas are going to be different for everyone. For example, some people are naturally good proofreaders, while others will have a knack for finding the right items for reselling.

I would think about what kinds of things you’re good at, what interests you, the skills you already have, etc. That may narrow the choices down some. 

But, what I love about the home business ideas on this list is that the free courses and guides listed mean you can learn more about any of them without a big investment. You can explore ideas without feeling like you’re wasting your money.

What home business ideas are you interested in?

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Where Upper-Middle-Class People Are Moving

Where Upper-Middle-Class People Are Moving – 2020 Edition – SmartAsset

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The middle class may be feeling the squeeze, but the upper-middle class certainly isn’t. The former cohort has shrunk from 61% of households in 1971 to just 52% now, according to the Pew Research Center. The upper-middle class, by contrast, has seen an uptick to 12% of households compared to just 10% almost 40 years ago. This growing, high-earning demographic, which SmartAsset defined as those with incomes between $100,000 and $200,000, is also on the move, migrating across state lines potentially for job opportunities, attractive housing markets or lower tax liabilities.

To find where upper-middle-class people are moving, SmartAsset analyzed inflows and outflows of people in this income range in every state as well as Washington, D.C. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAsset’s second study on where upper-middle-class people are moving. Read the 2019 version here.

Key Findings

  • The South and West dominate the top of the list. According to Census regional divisions, half of our top 10 states are in the American South (Florida, Texas, North Carolina, South Carolina and Tennessee), and the other half are in the West (Arizona, Idaho, Nevada, Washington State and Colorado).
  • Upper-middle-class Americans are gravitating toward tax havens. Four states in our top 10 – Florida, Texas, Nevada and Washington – have no income tax. Two other states – North Carolina and Colorado – have a flat rate income tax. Furthermore, Tennessee does not have a personal income tax but does tax some dividends and interest.

1. Florida

Florida’s warm weather and lack of a state income tax may be why so many upper-middle-class people want to move there. The net migration of upper-middle-class people to Florida between 2017 and 2018 was 18,876, nearly three times as many as the next closest state.

New or prospective Florida residents may wish to consult SmartAsset’s list of the state’s top financial advisor firms.

2. Texas

Texas saw a net gain of 6,706 upper-middle-class people from 2017 to 2018. Again, the lack of income tax in the Lone Star State may account, in part, for this influx.

3. Arizona

Arizona does have income tax, but it’s among the lower rates in the nation, topping off at 4.50% for incomes higher than $159,000. The net migration of upper-middle-class people to the state from 2017 to 2018 was 6,685.

4. North Carolina

North Carolina saw a net gain of 6,002 upper-middle-class people over the time period we considered for this study. North Carolina has several big cities, access to many beaches and a flat income tax rate of 5.25%, all of which could be attractive to people with incomes from $100,000 to $200,000.

5. South Carolina

South Carolina has among the lowest property tax rates in the nation, so high-income earners can buy their dream house without worrying about being overwhelmed by taxes. The Palmetto State saw an increase of 4,927 upper-middle-class people from 2017 to 2018.

6. Tennessee

Tennessee is another state that does not tax salaries or wages (but there are taxes on interest and dividend income). The Volunteer State gained 3,215 upper-middle-class people from 2017 to 2018.

7. Idaho

Though Idaho has fairly high income taxes, it has low property taxes and is actually one of the best states for homeowners. That may explain, in part, the appeal of the state, which saw a net migration of 2,708 upper-middle-class people between 2017 and 2018.

8. Nevada

Nevada is another state offering no income tax, which is a strong incentive for people making higher incomes. The Silver State gained 2,644 upper-middle-class citizens from 2017 to 2018.

9. Washington

Washington State is another state with no income tax. This factor could be one contributor to the increase in upper-middle-class residents by 2,593 from 2017 to 2018. Those in Washington seeking a financial advisor firm to work with may wish to consult SmartAsset’s list here.

10. Colorado

Colorado gained 2,580 upper-middle-class residents between 2017 and 2018. Those interested in moving there might wish to note that the Rocky Mountain State has a flat income tax of 4.63% and relatively low property taxes.

Data and Methodology

To find out where upper-middle-class people are moving, SmartAsset compared data from tax returns between 2017 and 2018 for every state and Washington, D.C. We found the inflows and outflows for people earning between $100,000 and $200,000 and subtracted the outflows from the inflows to calculate the net migration. Then, we ranked all 50 states, along with Washington, D.C., by this net figure. All data is from the IRS.

Tips for Managing Your Money in the Upper-Middle Class

  • Seek professional financial advice. If you are an upper-middle-class income earner, a financial advisor can help you make the most of your funds. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool connects you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors, get started now.
  • Considering moving to a new state? Even if you’re in the upper-middle class with a substantial income, you don’t want to blow your budget on housing. Find out how much house you can afford so that you can narrow down your search.
  • Did you factor in taxes? Taxes are important when considering where to move. See your tax burden with SmartAsset’s income tax calculator.

Questions about our study? Contact press@smartasset.com

Photo credit: ©iStock.com/akurtz

Ben Geier, CEPF® Ben Geier is an experienced financial writer currently serving as a retirement and investing expert at SmartAsset. His work has appeared on Fortune, Mic.com and CNNMoney. Ben is a graduate of Northwestern University and a part-time student at the City University of New York Graduate Center. He is a member of the Society for Advancing Business Editing and Writing and a Certified Educator in Personal Finance (CEPF®). When he isn’t helping people understand their finances, Ben likes watching hockey, listening to music and experimenting in the kitchen. Originally from Alexandria, VA, he now lives in Brooklyn with his wife.
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How I Make Money On TikTok – How I Grew To 350,000 Followers and Made $60,000 In 6 Weeks

Do you want to learn how to make money on TikTok? Here’s how Tori grew from 0 to 350,000 TikTok followers and made $60,000 in just 6 weeks. 

how to make money on TikTok

how to make money on TikTokUnless you’ve been living under a rock, you have probably heard something about TikTok. TikTok is one of the most popular social media networks currently, and it is growing like crazy.

There are already over 500 million active monthly users on TikTok around the world.

So, you may be wondering if you can learn how to make money on TikTok, and any TikTok tips so that you can see success too.

That completely makes sense!

Today, I want to introduce you to Tori Dunlap.

Tori Dunlap is a nationally-recognized millennial money and career expert. After saving $100,000 at age 25, Tori quit her corporate job in marketing and founded Her First $100K. She has helped over 200,000 women negotiate salary, pay off debt, build savings, and invest.

I met her a couple of years ago in person, and she has built an amazingly successful business. I’m in awe of what she has done, and I enjoy her creative ways of helping people improve their money situation.

I asked Tori to take part in an interview on Making Sense of Cents about her explosive TikTok growth. She went from 0 to over 350,000 TikTok followers, and made $60,000 in just 6 weeks on TikTok.

In this interview, you’ll learn:

  • About Tori’s background and why she decided to start on TikTok
  • How she grew her TikTok to over 350,000 followers in 6 weeks
  • How she has made $60,000 just from TikTok in 6 weeks and how to earn money from TikTok
  • The tools needed to create TikTok videos
  • The length of time it takes to make each TikTok video
  • Whether there is room for new TikTok accounts
  • Her top TikTok tips for a newbie

And more! This interview is packed full of valuable information on how to earn money on TikTok.

I know so many people have questions about TikTok, such as how to grow on TikTok, how to make money from TikTok (including, how much money do TikTokers make?), and more, so hopefully you will find this interview both interesting and informative!

You can find Tori on TikTok here.

Related content that you may be interested in:

Here’s how to make money on TikTok.

1. Tell me your story. Who are you and what do you do?

I’m nationally-recognized millennial money and career expert. After saving $100,000 at age 25, I quit my corporate job in marketing and founded Her First $100K to fight financial inequality by giving women actionable resources to better their money.

I’ve helped over 350,000 women negotiate salary, pay off debt, build savings, and invest — and I firmly believe that a financial education is a woman’s best form of protest.

A Plutus award winner, my work has been featured on Good Morning America, the Today Show, the New York Times, PEOPLE, TIME, New York Magazine, Forbes, CNBC, and more.

Before becoming a full-time entrepreneur, I led organic marketing strategy for Fortune 500 companies—with clients like Amazon, Apple, Facebook, Nike, the NFL, and the Academy Awards—and global financial technology start-ups. For almost five years, I specialized in social media, SEO, content, and influencer marketing to grow community and increase awareness.

I now travel the world writing, speaking, and coaching about personal finance, online businesses, side hustles, and confidence for millennial women.

2. How long have you been on TikTok? Why did you decide to start a TikTok account?

I only really started doing TikTok for my business in the last 6 weeks (and gained almost 350,000 followers in the process, which is wild.)

I knew that you could see accelerated growth on the platform — it’s the only main social platform that currently has more people consuming content than creating it — and it fit well with my brand.

I’m passionate about financial education as a form of protest, and making money conversations inclusive — meeting people where they are on TikTok seemed like a perfect way to do that.

To me, going viral and gaining 350,000 followers in such a short amount of time is proof that Gen Z is craving personal finance advice.

3. How did you get your TikTok account to explode?

I was shocked by the growth, and I’ve never seen a platform that is so creator-friendly (Facebook, for example, has become more and more business-focused.)

In terms of followers, it took me 3 days to do on TikTok what it took me 3 years to do on Instagram. But I was ready for it — I have an established, global business, credibility, and products to sell. As a former social media manager, it’s a reminder that consistency, credibility, and serving before selling are what grows your account — not paid ads or manufactured authenticity.

The big shift was a video that went viral (as of this writing, it has 3.5 million views and over 730K likes.) Having gone viral multiple times before, this was next level — I was getting 100 followers every 5 minutes.

It’s more than doubled my website traffic, increased my sales, and grown my credibility.

how to monetize tiktok

Tori’s TikTok

4. How do you make money on TikTok?

I make money through promoting my own products (like my resume template and side hustle courses) and my affiliate partners.

For example, I might talk about high yield savings accounts and send folks to the link to my affiliate bank partner.

In the last 6 weeks, I’ve made over $60,000 just from TikTok.

Now that I have a substantial following, I’m also monetizing my platform with brand partnerships, and showcasing products I believe in.

Related: 10 Easy Tips To Increase Your Affiliate Income Free Guide

5. How do you decide on your TikTok video ideas?

Just like the rest of my content, I focus on creating actionable resources for my followers.

Most of the questions I answer in my videos or advice I give comes from someone asking me about it, which guarantees I’ll have consumers of that content because I know it’s valuable for them.

Your audience will tell you what they want to see!

One of the smart things I did was waiting to become a creator. I was a consumer on TikTok first, sharing and enjoying videos before I started creating my own. Doing so helped me understand trends, what content well, the way the videos were shot. I got to know the landscape and followed creators doing good work.

So much of TikTok is collaborative creation, so I’ll often duet with another creator and offer my two-sense, or will be inspired by a trend or sound I see elsewhere.

6. What tools do you need for your videos? Is it simply your phone?

Your phone is the biggest thing you need. I also invested in a ring light/tripod to make it easier to shoot content, and to make sure the lightning was decent.

If you want to do more advanced videos, you might need editing software, a more professional camera, or props.

There is a learning curve with understanding how to shoot videos, and I was too intimidated to start for a while.

Don’t let that scare you: just like anything, it’s easy once you get the hang of it.

How do you get paid on TikTok?

Some of Tori’s TikTok videos.

7. How long does it take you to make each TikTok video?

Batching content has helped me save time, so I make about 5-7 videos in one session.

Because we’re still in quarantine, I often shoot without camera-ready makeup, which I think adds to the spontaneity and authenticity of the video.

I’ve also made the decision to not change clothes for every single video, it just seems like overkill.

My 15-second, talk-to-camera videos take about 10 minutes — 3 to shoot, 7 to add text and a caption.

More in-depth videos — with green screen effects or lots of text that moves — can take about a half hour.

I try to intersperse content — not only for variety’s sake, but also to keep myself sane.

8. What do you like about making TikTok videos? What do you not like?

Instagram has started to feel more and more like work, while TikTok allows me to be more creative.

As a theatre major, it’s a perfect platform for me to make weird faces, perform, and showcase my personality in addition to my advice.

I’ve also found TikTok a more welcoming environment. You’ll always have trolls and hateful comments, but I’ve found there’s more support and encouragement from people who aren’t following you on TikTok than on other platforms.

I really love and engage with Instagram Stories, and TikTok doesn’t have a feature like that (yet.) Stories are a good way for your audience to learn more about you and your business in a less polished way, so I think it’s harder for someone to get to know you on TikTok.

Captions are also WAY shorter, and you cannot post your hashtags in the first comment, so any explaining you need to do through text needs to be in the actual video.

9. Do you think there is room for new TikTokers?

YES!

More than any other social platform.

Instagram, for example, is very saturated. It’s almost impossible to discover a new account within the platform, unless a friend directly shares it with you. You’re really only seeing posts from people you already follow.

TikTok has a following tab, and also a “For You Page” tab, where they show videos they think you’ll like.

I’ve never seen an algorithm as responsive as TikTok’s, so you’ll find content that actually connects with you and your interests.

tiktok tips10. What tips do you have for someone wanting to start on TikTok?

Content that does well is at least one of the following: aspirational, educational, or entertaining.

You have travel vloggers showcasing their Airbnbs in Paris (aspirational), vegan chefs walking you through a recipe (educational), or a thrill-seeker trying a new stunt (entertaining.)

I found my niche between aspirational (talking about how I left my 9-5 job and built my business) and educational (how to pay off debt, invest, etc.)

Like any social platform, consistency is key. TikTok is like Twitter — you have the option of posting 7-10 times per day (and not being punished by the algorithm.) I usually try to put out 2-3 videos per day, some more complicated than others.

11. Are there any other TikTok tips you would like to share?

Don’t invest in TikTok unless you know your audience is there.

For example, if your potential customers are men in their 50s, they’re probably not on TikTok.

When I worked in marketing, it was easy to chase platforms or trends. It’s easy to feel like you need to be everywhere in order to make sure you’re relevant.

But if the audience you’re looking to target is largely not on a platform, don’t invest time and money in it.

Do you want to learn how to make money on TikTok and how to grow on TikTok?

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What Are Mortgage Points?

What Are Mortgage Points? – SmartAsset

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your financial details.

Getting a low interest rate on mortgage can make buying a home or refinancing an existing loan affordable. You could wait for mortgage rates to drop before applying for a loan but buying mortgage points is another option. Also referred to as discount points, mortgage points allow you to reduce the interest rate on your home loan in exchange for a fee. This could reduce your mortgage payment and potentially save you money over the life of the loan. But getting discount points may not be right for every homebuyer.

Mortgage Points, Definition

So what are mortgage points? Mortgage points essentially refer to a fee you pay your mortgage lender to reduce the interest rate on your loan. This is also known as buying down the rate on a mortgage.

There are two types of mortgage points you can pay for: origination points and discount points. An origination point is a fee that’s paid to your lender to reduce loan origination fees. It has no impact on your interest rate whatsoever, but discount points do.

Mortgage discount points can directly reduce the interest rate on your home loan. The more points you purchase, the bigger the reduction in your interest rate. A lower interest rate on a mortgage can mean less interest paid in total over the life of the loan. But it’s helpful to understand exactly how mortgage points work before buying in.

How Do Mortgage Points Work?

When understanding mortgage points, there are two sets of numbers to focus on. The first is how much a mortgage point actually costs.  Generally, one mortgage point is equal to 1% of your mortgage. So for every $100,000 you borrow, for example, one mortgage point would be equal to $1,000. Remember, these are fees you’re paying to the lender so you have to factor that into your overall cost of home buying and what’s due at closing.

The other set of numbers to know is how much of an interest rate reduction one mortgage point can yield. Typically, lenders reduce your mortgage interest rate by 0.25% for each mortgage point you pay. So say you’re buying a home with a $300,000 mortgage at 3.25%. One point would cost you $3,000, but in exchange your lender drops your mortgage rate down to an even 3%. The more points you buy, the lower your interest rate can go.

That sounds good, but it’s important to keep in mind what you’re actually doing here. When you buy discount points against a mortgage, you’re essentially prepaying some of the interest on the loan up front. You’d have to do some additional math to decide if it makes sense financially to purchase discount points.

How Much Could You Save by Purchasing Mortgage Points?

That’s a good question and the answer is that it depends largely on several things, including:

  • Your mortgage term
  • The amount you’re borrowing and your down payment
  • Your initial interest rate
  • The number of points you plan to buy
  • How long you plan to stay in the home

Doing the math on discount points can help you figure out if it’s worth paying them, based on the break-even point. The break-even point is when the amount of money you saved in interest by purchasing points equals the amount you paid to buy them.

For example, say you want to buy a $300,000 home with a 30-year term. The lender offers you the option of getting a mortgage at 3.5% with no points or paying two points to reduce your rate to 3%. You’d need to pay $6,000 to cover the points but that would reduce your monthly principal payment from $1,347 to $1,265. You’d hit your break-even point in approximately 6.1 years.

But what about the interest savings? If you were to stick with your original rate of 3.5%, you’d pay $184,968 in interest charges over the life of the loan. But if you were to spend the $6,000 to buy down points that would reduce the interest paid on the mortgage to $155,332. Once you deduct the $6,000 you paid for points the result would be a net interest savings of $23,636.

That assumes, however, that you stay in the home for the full 30 years of the mortgage term and don’t refinance to a lower rate at some point. A good rule of thumb to keep in mind when deciding whether to buy points relates to how long you plan to stay in the home. Generally, the longer you stay put, the more you’ll save on interest once you pass the break-even point.

That’s important to keep in mind if you’re considering buying discount points for an adjustable-rate mortgage. If you plan to sell the home before the rate adjusts then buying points up front may not be worth it if you’re already getting a lower rate than you would with a conventional loan. And selling before you hit the break-even point on any type of mortgage means losing money since you won’t have time to earn back the points you paid in interest savings.

Can You Negotiate Mortgage Points?

Maybe, though it can depend on several factors and how strong of a position you’re in financially. Your lender may be more willing to negotiate fees for purchasing discount points when you’re bringing a larger down payment to the table and/or have a higher credit score. Negotiating mortgage points can help you snag a break on interest while reducing the amount needed for closing.

Remember, alongside mortgage point fees you also have to pay other closing costs, such as legal fees and recording fees, all of which can add up to between 2% and 5% of the home’s purchase price.

If you have a credit score in the excellent range, however, negotiating mortgage points or buying them may not even matter. An excellent credit score may already qualify you for the lowest rates possible on a mortgage loan or refinance loan anyway.

The Bottom Line

Buying mortgage points can make sense for some home buyers, but it all depends on how much you want to try and save on a loan and how long you plan to stay in the home. Talking to your lender about the potential costs and doing the math yourself to project estimated savings can help you decide if buying discount points is worth it.

Tips for Investing

  • Consider talking to a financial advisor about whether buying points is a good move financially if you’re planning to buy a home. If you don’t have a financial advisor yet, finding one doesn’t have to be complicated. SmartAsset’s financial advisor matching tool can help you connect with professional advisors in your local area. It takes just a few minutes to get your financial advisor recommendations. If you’re ready, get started now.
  • A free mortgage calculator can give you a quick overview of what is affordable for you. And if you’re buying a home specifically as an investment property, either to rent or as a fix and flip, be sure to weigh what you’ll have to put into it versus the returns it can generate.

Photo credit: ©iStock.com/Prostock-Studio, ©iStock.com/skynesher, ©iStock.com/jhorrocks

Rebecca Lake Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
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How To Become a Freelancer and Make a Full-Time Income

Today, I have a fun interview to share with you that will show you how to become a freelancer.

I recently had the chance to interview Ben Taylor. Ben has been freelancing since 2004, and he has worked for dozens of companies.

Yes, this is a career path that you can learn!

As Ben will tell you in the interview below, a freelancer can be anything. You can be a freelance designer, personal trainer, nutrition coach, online teacher, virtual assistant, writer, and more.

If you are looking for a new business or even just a side hustle so that you can learn how to make extra money, learning how to become a freelancer may be something that you want to look into.

In this interview, you will learn:

  • What a freelancer is, who they work for, what they do, etc.
  • How much a new freelancer should expect to earn
  • How a person can find their first freelancing job
  • The steps needed to take to make money as a freelancer

And much more!

He also has an informative course called Freelance Kickstarter. This course takes you through the step by step process of creating your own freelance business.

Check out the interview below for more information.

How to become a freelancer.

1. Please give us a background on yourself and how you started as a freelancer.

I’m Ben, and I live by the sea in England with my wife and two young sons.

I started a career in tech back in 1998, and by 2004 was Head of IT for a government department. It didn’t take long for me to tire of company politics, and the endless meetings that were more about displays of ego than really getting anything done.

I came from an entrepreneurial family and my parents both had businesses rather than jobs. The businesses weren’t always successful, and there were definitely periods of “feast and famine.” However, I was well used to that and I think that branching out on my own was something I was destined to do.

My move into freelancing splits into a couple of clear phases:

Initially, in 2004, I quit my IT job, walking away from business class travel and a gold-plated pension with nothing more than a vague plan to begin to work as a freelancer!

I started to provide IT support and consultancy to both businesses and individuals. I do actually still do some of that work for a select group of long-term clients, but by 2009 I had managed to burn myself out with it. The business was going well, but I was working ridiculously long days and every holiday I tried to take was interrupted by constant phone calls and emails.

So phase two began when I sold off most of my client-base and moved to Portugal! That’s when I really started to broaden my freelance horizons. I had to start from scratch, with an unclear intention to start writing for a living, and no real plan for how to do it.

I did lots of things, including wasting a LOT of time down fruitless blind alleys. I wrote for content mills, started blogs, found clients on freelance job boards, and – slowly and steadily – started to build my income back up. The difference was that I was doing it all completely on my terms with work I really enjoyed. 

I was also living in a dream destination whilst doing it.

2. Can you explain what exactly a freelancer is, who they work for, what they do, etc.?

This seems like a basic question, but it’s very worthwhile. There’s a considerable difference between freelancing and remote working that not everybody appreciates.

First off, a freelancer can be anything. For some reason many people immediately think of writing when they think about freelancing. But you can be a freelancer designer, personal trainer, nutrition coach, online teacher, virtual assistant, and dozens of other things.

It’s also worth noting you don’t only have to be one of those things. I AM a freelancer writer, but I also still dabble in IT consultancy, run my own blogs, provide coaching, and even build websites for people (if they ask nicely and the price is right!)

Regardless of what you do as a freelancer, the important thing to realise is that you are running your own business. The big plus of this is that you are in total charge. But the big negative is that you don’t have any of the safety nets you have if you are employed by a single company. This means you’re responsible for everything from your own insurance and healthcare to your own technical support!

Freelancers typically work for several different clients. There are myriad places to find those clients. It’s quite common for freelancers to find clients within their existing professional networks, and not at all unusual for ex-employers to be among them. Then there are freelance job boards like Upwork and PeoplePerHour, which provide an endless stream of new opportunities.

3. How much should a new/beginner freelancer expect to earn?

This is an incredibly difficult question to answer! I can think of one freelancer I coached who’s in a very specific writing niche. He went onto Upwork with an initial rate of $100 per hour and found lots of work. I started out in IT consultancy charging a similar rate and was quickly earning more than I did in my full-time job.   

However, at the other end of the scale there are people with limited experience or specialist skills who will need to pay their dues. This means building the foundations of a freelance career by proving yourself and taking low paying jobs to build up examples of work and positive feedback. My move into writing was much more like this!

I think “job replacement income” is a useful target for new freelancers to keep in mind. That can vary vastly from individual to individual. Obviously replacing and exceeding a corporate-level income takes much more than freelancing as an alternative to a part-time, entry-level job. That said, people with senior-level experience command much higher freelance rates.

Related content: 20 Of The Best Entry Level Work From Home Jobs

4. What do you like about being a freelancer?

Not having a boss!

The difference in lifestyle is massive when you work for yourself. This is always brought home to me when I’m making plans with friends and family, and people say “I’ll see if I can get the time off.”

This makes me shudder, because it’s SO alien to me now. The example I always use is that I never have to ask anybody before I can tell my children I’ll be at their sports day or nativity play.

When you have what I call a “traditional job,” you DO have the security of healthcare, and perhaps things like holiday and sick pay. But you give up a tremendous amount of freedom in return. Freelancing is profoundly different, and it’s rare to find people who’ve given it a go that would ever choose to go back to full-time employment.

So that’s a huge thing for me, but there are other huge benefits too. I love the fact I can pivot into different things, which always allows me to keep things fresh.

About four times a year I reassess my priorities and lay out new goals for the short, medium and long term. They might involve starting a new blog, writing another book, learning a new marketable skill. For somebody like me who relishes variety, I love having total control of this.

5. How can a person find their first freelancing job?

There are SO many ways to find freelance jobs. I have an article listing 50 different options!

However, they broadly split into two categories that I call “real world” and “online world.”

It’s always worth starting out by thinking of your real life networks. As I’ve said, many freelancers do their first self-employed work for people who already know them. I’d advise people to think about any contacts who’ve already seen the kind of work they’re capable of. These are “warm leads” that are well worth perusing.

It makes sense to think about personal contacts as well as business contacts, too. Plenty of freelancers find clients who are their “wife’s best friend’s brother” or something like that!

Remaining in the “real world,” there are also options like local business groups and networking events – although they are obviously far less accessible at the present time.

Moving to the online world, the freelance job boards are the place to be. They can be intimidating places initially, and it’s crucial to learn how to use them and how to avoid scammers and low paying clients. But there are plenty of great clients out there, including many household name companies who use those boards to hire freelancers.

Often, a quick one-off $50 job can evolve into a long and lucrative client relationship. My wife and I both have clients who we first met on the freelance boards years ago. We still work with them now.

There’s no one-size-fits-all answer to where to find the first client, but there are options for everybody.

setting rates when learning how to become a freelancer

setting rates when learning how to become a freelancer

6. How does a freelancer decide what to set their rates at?

This is a question I’m asked a LOT! The answer leads to lots more questions, and I think many of my readers are disappointed when I don’t just give them an answer of “$x per hour” or “$x per article!”

It’s a subject I cover in my Freelance Kickstarter course, and I’m happy to share a slide from that particular lesson here. The factors to consider include tangible things like the “market rates” for specific types of work, and how each client’s geographical location could impact how much they expect to pay.

But there’s much more to consider beyond that: How much does the gig align with your long-term goals? Will the job produce a great example of work that will help you win more clients in the future? Is this a job that could lead to on-going, long-term work?

I guess a simpler answer is that your rate needs to be fair and competitive, and sufficient to make it worth your while to do the job. However, the rate for each job really needs to be assessed on a case-by-case basis.

The reality is that there are millions of freelancers out there charging vastly different rates, often for very similar services. There’s a bit of an art to working out where you sit on the pricing spectrum, but it’s an art you can learn, and it gets easier with experience.

7. What steps does a person need to take to make money as a freelancer?

The first and most important is working out what it is you actually want to do. That may seem obvious, but my inbox is full of emails from people asking what they should do, without telling me what they’re capable of and what kind of work would make them happy.

I will attempt to lay it out in a fairly simple series of steps:

  1. Work out what skills you have and what market there is for them.
  2. Look at who else is providing those services, what they charge, and what you can provide that will make you stand out and appeal to clients.
  3. Identify any gaps in your knowledge and experience, and work to fill them. This could mean doing some training, or doing some voluntary jobs to bulk out your portfolio.
  4. Establish a personal brand. This isn’t as big a deal as it sounds, but does mean having a solid resumé and LinkedIn profile, and sometimes some other ways to demonstrate your expertise.
  5. Learn how the freelance job boards work. Even if you have a rich personal network to draw on, it’s wise to understand the wider world of freelancing.
  6. Put yourself out there, and start pitching and applying for things.
  7. Make sure you provide perfect work and delight your clients, so that they want to work with you again and recommend you to others.

Repeating and refining these steps is the essence of becoming a successful freelancer.

8. How much does it cost to start this type of business and how much on a monthly basis to maintain it?

Freelancing is generally a low-cost venture, but that’s not to say it’s free. Depending on what you do, you may need specialist equipment and / or software. And if you’re switching from an employed position, you may have to buy things like this yourself for the first time.

A good computer is a must, as it’s often the key tool of your trade. You may also need to budget for things like insurance, possibly including healthcare cover if you are somewhere like the US where this isn’t covered by tax payments.

When it comes to monthly costs, the main things I pay for include software subscriptions and insurance policies. Thankfully these tend to build over time and no individual thing is particularly expensive. You can start out as an online freelancer without even having a personal website, and add things like that once you gain some momentum.

I also recommend budgeting for ongoing training and learning. Thankfully there are all kinds of ways to learn online inexpensively. Companies have training budgets, but when you’re a freelancer, keeping your skills on point is on you.

9. What kind of training is needed to become a freelancer?

I’d say the training splits into two: learning about freelancing itself, and building skills around the specific work you want to do.

Courses like my own Freelance Kickstarter cover the first part. Freelancing is a skill in itself, and we’ve covered some of the important areas in this interview already. Stuff like setting rates isn’t immediately obvious, so learning from those who have been there and done it already is very valuable.

When it comes to skills-specific training it depends what work you’re doing. Let’s say somebody wanted to work as a freelance social media manager. Not that long ago it would have been all about Twitter and Facebook. Nowadays Pinterest is a much bigger deal for many people, and TikTok is emerging as the latest trend.

So as that freelancer, you need to decide what you’re going to focus on. Do you want to be the “go-to guru” for TikTok, or be more of a generalist with social media in general?

It’s wonderful to have the choice.

10. Are there any other tips that you have for someone who wants to become a freelancer?

I have many!

The one I repeat over and over is that you have to eventually go for it and make the jump. I see a lot of people who never get past the “thinking about it” phase. Meanwhile the go-getters have taken the leap of faith and started to build success.

Moving to freelancing is one of those things where there may never be a perfect time to do it. Those who keep waiting for that time to arrive can easily find themselves looking back ten years later with the same commute and the same job.

Another thing I’m like a broken record about is the importance of “paying your dues.” There are often plenty of less-than-ideal gigs to finish successfully before you arrive at the amazing ones.

I wrote about some really dull topics in my early days of freelance writing, for example. But I had to wade through that stuff to build my reputation. It all felt thoroughly worth it a few years later when I was being well paid for travel articles and restaurant reviews!

You learn something from every job along the way: How to handle clients, renegotiate rates, refine your skills, and get work done more efficiently so that you’re boosting the value of your time. Freelancing isn’t supposed to be easy but it’s almost always challenging, interesting and rewarding.

And let’s face it, many people don’t feel that way about their jobs.

11. What can a person learn from your course? Can you tell us about some of the people who have successfully taken your course?

OK, so Freelance Kickstarter expands on all of the topics I’ve touched on here, and many others. It’s intended to remove confusion, and that feeling of overwhelm that often descends when researching this stuff online. It helps new freelancers make a clear plan for getting started. As the strapline goes, the idea is that people “stop wasting time, and start making money!”

I never intended to create a course, but after running the HomeWorkingClub website for several years, it became clear there was a space for something like this. I make it very clear that it’s not some kind of “get rich quick” scheme.

To be brutally honest, I don’t want students who are looking for shortcuts. There is real hard work involved in being a successful freelancer, but it’s a more than viable option for those willing to do what’s required.

The course starts with the basics of working out what you can do and want to do, and presents LOTS of different options. It then moves on to auditing your skills and experience, building your brand, and working out your own personal goals. I particularly like that section because it helps people learn the exact process I use myself every few months to keep things moving forward.

The next lessons cover finding clients, and there’s a big module on learning how to use freelance job boards like Upwork. Once people have completed this, they will know how to uncover the good and genuine jobs, and how to side-step the time-drains and scams.

Students also learn about setting rates, and all the other practicalities of running a freelance business, from getting the tech right to taking undisturbed holidays! We also cover side gigs, and long-term slow-burn projects like blogs and self-published books.

I provide personal support on the course, and people can ask me all the questions they need as they go along. There are also regular exclusive podcasts with extra advice and news of industry developments and new opportunities.

In terms of people who have already taken the course, I recently published a case study from a lady called Lyn. She now has “more work than she can handle” as a freelance writer working via Upwork. Two things that have particularly pleased me about her situation is that she’s cherry-picking projects that interest her, and that she’s been able to do exactly what I suggest in increasing her rates as she builds experience and reputation.

I’ve also had great feedback from people at a much earlier stage. I’ve kept the course price low so that people can use it to help decide if freelancing is for them – just dipping their toes in for the first time.

As one student said, the course is “ideal if you are considering going freelance and don’t know where or when to start, or even if freelancing is for you.”

Several of the testimonials so far have aligned perfectly with the original objective, which was – essentially – to help people see the wood for the trees in an environment than can seem very daunting to begin with.

I set out to create the course I wish I’d had! I’ve made more than my fair share of mistakes in over 16 years of freelancing. The people taking Freelance Kickstarter should hopefully be able to avoid the same ones!

Click here to learn more about Freelance Kickstarter.

 Are you interested in learning how to become a freelancer?

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Source: makingsenseofcents.com

What Does ARV Mean in Real Estate?

What Does ARV Mean in Real Estate? | SmartAsset.com

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Real estate investors often consider the after-repair value, or ARV, of a piece of real estate when deciding whether a deal is worth pursuing. The ARV is an estimate of what the property will be worth after all the needed repairs, renovations and upgrades have been done. It is the sum of the cost of the property and the value of the repairs. Knowing this key real estate metric is especially helpful to investors and lenders.

The margin between the ARV and the cost of the property, including the cost of the repairs and other work, represents the potential profit on the investment. Therefore, ARV can help investors select an appropriate method of financing the property purchase as well as the best exit strategy. For instance, it can direct investors toward a fix-and-flip approach, which normally means selling within a year, or a buy-and-hold approach that may involve owning a property indefinitely. Lenders can use ARV to decide whether to fund a project, and the ARV can also suggest the ultimate selling price of a renovated property.

Figuring ARV

ARV is an estimate based on the investor’s assessment of the repairs and upgrades that will be necessary, the likely cost of those improvements and the effect on the value of the property. Making this estimate requires significant knowledge about local market conditions as well as the availability and pricing of local contractors.

The formula for ARV is:

ARV = Purchase price + Value of renovations

To calculate ARV requires placing a value on the property as is. This can be done by hiring a professional appraiser, or by examining comparable properties listed for sale. When looking at comparable properties, it’s important to look for properties that have similar locations, sizes, ages, condition and other characteristics. If an investor finds that similar properties in similar condition are listing and selling for $150,000 on average, that is the likely estimate for this property’s as-is value.

After estimating the as-is value, the investor estimates the cost to perform the needed repairs and renovations. For example, if the property needs a new roof, new carpet and kitchen updates, the estimated cost for these repairs may be $30,000.

Next the investor looks for listings and sales of comparable properties that have already been upgraded. If the average value of these comparable properties is $225,000, that is the ARV for this property as well. In this case, the value of the repairs is $75,000. That is the $225,000 value of comparable already-repaired homes, minus the as-is property value of $150,000. Since the cost of the repairs is $30,000 and the value of the repairs is $75,000 that indicates a $45,000 potential profit margin and suggests this is a deal worth considering.

Using ARV

After calculating the ARV, an investor can use it to help suggest a price to offer to acquire a property. In order to this well requires considering much more than the value of the repairs. A successful real estate investment decision also takes into account carrying costs such as interest, insurance and taxes, as well as repair costs.

One approach uses what is called the 70% rule to perform initial screening on investment opportunities. The 70% rule calls for an investor to put no more than 70% of the ARV into a property. This includes the purchase price as well as the cost of repairs. According to this rule, if a property’s ARV will be $225,000 after $30,000 in repairs, the investor should not pay more than $127,500 to acquire it. That amount is equal to 70% of $225,000, or $157,500, minus $30,000 for repairs.

The Bottom Line

ARV, or after repair value, is a real estate investing term used to describe an estimate of what a property will be worth after needed repairs, upgrades and renovations are done. Knowing the ARV of a potential investment property helps an investor decided whether the deal if of interest how much to offer to acquire the property, what type of financing to secure and which exit strategy makes the most sense.

Real Estate Buying Tips

Consider working with an experienced financial advisor if you are calculating operating cash flow or evaluating a company for potential investment. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors who will help you achieve your financial goals, get started now.

When considering a real estate purchase it’s important to know whether you can truly afford a property. Using a free calculator can give you a quick estimate of whether a residence fits into your financial plan.

Another real estate investing term — annual rental value — has the same initials but a different meaning. Annual rental value is the amount that it would cost to occupy a property or a space for a year. It might not be the same as the amount of rent that a tenant would pay to rent the property. Instead, annual rental value is based on comparable properties and includes other costs of occupancy. Investors may use annual rental value when estimating the cost to occupy a space or a property.

Photo credit: ©iStock.com/Chainarong Prasertthai, ©iStock.com/David-Prado, ©iStock.com/eranicle

Mark Henricks Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
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