This post originally appeared on Arrest Your Debt

What should I do for a living? This is the question that has been asked by many job seekers every day, yet there are no definitive answers. It's an important decision to make, and if you're not sure what to do, it can be hard to know where to start.

For example, should you follow your passion or find something that will pay well? What about finding a career that will combine both of these things? These are all questions worth asking when trying to determine what type of work would suit you best. Thus, finding your dream job is not an easy task.

There are many factors to consider, and it can be overwhelming to know where to start. This article will explore all of the different things you need to think about before making this important decision.

1. Identify What Interests You Intellectually

One of the first things to think about before picking a career path is what you like and enjoy doing. For example, do you enjoy working with numbers or studying history? You will not want to choose an occupation that does not play to your strengths.

When deciding what field would suit you best, it's essential to start by identifying what interests you intellectually. After all, you will not be excited to wake up in the morning if your work does not play to your strengths somehow.

One way to identify your interests is by thinking about things you have a passion for outside of work or school. For example, if you find that animals are particularly interesting, perhaps a career working with animals would be a good fit for you.

On the other hand, if social media is more your thing, maybe you should consider a career where this would be an asset, such as a photoshop illustrator or video editing.

Once you've thought about areas that interest you and what courses you enjoyed in college, it should be much easier to determine what types of careers might suit these interests.

2. Link Your Values With Your Interests

Once you've identified what areas of interest might suit your skillset, you can then more easily try to link these interests with some type of career options.

For example, if you are passionate about the environment, perhaps you could consider a job that would allow you to help protect natural resources or conserve wildlife.

On the other hand, maybe art is your passion. If this is the case, you might want to consider a career that would allow you to share your creations with others or possibly start a small business selling your art.

Regardless of your interests, it's important to consider how they would fit into potential careers before choosing one. At this point, it should be easier for you to link your unique passions with certain occupations or fields of work.

3. Try Out A Few Different Areas Before Selecting Your Career Trajectory

Try out a few different occupations. It's important not to rush yourself when trying to determine what you will do for the rest of your life. For this reason, it can be helpful to try out different careers before settling on one in particular. This way, once you've tried something new and found that perhaps accounting isn't as interesting as you thought, you can easily make a change.

Moreover, if you find that something doesn't suit you as well as you thought it would, at least now you know for sure and can make a different choice next time around. This way, when trying to determine what career path will be best for you, try out several before deciding on just one.

This will not only help you discover what types of jobs might suit your personality better, but it will also enable you to make the most informed decision possible.

4. Test Out The Waters By Taking Online Courses

Another great way to figure out what career path you should follow is to take online courses for various occupations. By taking online courses, you can learn more about what each field entails and if it might be the right fit for you.

This will help you determine which occupations are best suited for your skillset and help you decide what types of work you might most enjoy doing. Moreover, by taking online courses, it will be possible to try out different career paths without having to quit your job or invest a significant amount of time in something that may not be the right fit.

By simply signing up for an online course, you can obtain more information about potential careers and continue to figure out what type of profession may be the right choice for you, and you can do it from the comfort of your living room.

5. Take A Skills Inventory Test

Another great way to determine what type of career might be best is to take a skills inventory test. Different tests can help you evaluate your own skillset and figure out exactly where your strengths lie. Moreover, the results of these tests will give you some insight into how your personality may influence future careers that you might pursue based on the traits you show in the inventory.

Finally, it will be easier to determine which types of careers or jobs might suit you by figuring out your personality traits. This is because certain personality traits tend to fit better with some occupations over others.

6. Start Journaling

Write down what you think are your strengths. At first glance, many people find that figuring out which career they would like to pursue is a difficult task. However, it's also important to remember that you can't choose a path if you don't know where to start.

Additionally, the more information you gather about potential careers and work environments, the easier it will be to make a decision. To begin, try writing down what you think are your strengths. Once you have done this, take some time to think about how these skills might fit into specific types of work.

From there, visit online resources that will help you find jobs based on different sets of criteria such as salaries and work environments.

Check out some of these top journals on Amazon.com

7. Think About What You Truly Love Doing And Then Assess How You Can Make A Living Doing It

Another great way to determine what career path you should take is to think about what you truly love doing and then assess how that can translate into a job.

For instance, if you're passionate about animals and love taking care of them, research different careers in the veterinary field and look up entry-level positions. This will help you find out what types of tasks you will have to complete and what your day-to-day life may look like as a veterinarian. This type of research might also help determine whether or not a particular career path is a good fit for you.

In addition, by doing this, you will be able to figure out if the starting salary suits your financial needs, among other things. That being said, it's important to do a lot of research since this can help you discover what types of work might align with your skillset and interests the best.

8. When Deciding What To Do For A Living, The First And Most Important Thing Is To Look Inward

In addition to taking online courses and journaling, the first and most important thing you should do is look inward. In other words, try to determine what work environments you enjoy being a part of and which ones seem like a good fit for your personality.

By investing time into figuring out which occupations might be a good match for you, it will be possible to narrow down which careers or jobs you might enjoy pursuing. This is because some work environments, tasks, and responsibilities are more enjoyable for some people than others.

While this step doesn't guarantee that finding a job you like will be an easy feat, it's undoubtedly the most important one.

9. Figure Out What Gives You The Most Purpose In Life – And Do It

Figuring out what you should do for a living can be a complex process. However, if you're struggling to develop a career path that suits your skillset and interests, start by identifying what gives you the most purpose in life.

In other words, look for work environments or careers that make you feel excited inside. In many cases, these are the work environments where people thrive and end up being genuinely passionate about their jobs.

10. Following Your Life Purpose Will Take You To Exactly Where You Want To Go

If you can identify a work environment that makes you feel a sense of aliveness, you will likely be happy in this field. That being said, if your goal is to find a career or job that aligns with your interests and allows you to express yourself on a daily basis, following your aliveness will take you to exactly where you want to go.

As such, it's important to keep this in mind as you look for the right work environment.

11. Making Big Career Moves Should Only Be Made When You Can't Hold Back Anymore

In other words, this major life decision should come from a place of authenticity and urgency. If you're able to follow your inner wisdom and go with your gut feeling about a specific work environment or job offer, then this indicates that it might be the perfect one for you.

However, if you're hesitant and unsure of your next actions, it's best to wait before making a life-changing decision like this one.

12. Ask Yourself Who Are The People That You Enjoy Spending Time With The Most

Another great thing you can do to figure out what your life purpose is to ask yourself who are the people that you enjoy spending time with the most. If the people around you tend to be overworked and stressed all of the time or if they complain about their jobs on a regular basis, this doesn't necessarily mean that it's not the right work environment for you.

Instead, it might simply indicate that the people around you aren't passionate about what they do and that their energy is draining. If this seems like a good description of your current or past work environments, then the chances are that you will be happier somewhere else.

13. You Probably Don't Know About The Job You Will Love Yet

Remember, you don't have to know your life purpose or which work environment suits you best. All of this might take time, and it's important not to rush the process. You probably don't know about the right job title you will love yet.

Instead, follow a path that makes sense at the moment and allows you to grow while exploring different opportunities and work environments.

14. Trial And Error Is Your Friend

Trial and error is your friend. Figuring out what you should do for a living can be a long and complicated process that often involves many false starts and mistakes.

However, suppose you can avoid making important life decisions based on fear or outside pressure, such as parents or friends. In that case, you will certainly be better positioned to find the right work environment for yourself.

15. Try Everything When You're Young To Figure Out What You Should Do For A Living

This means that if you're still in school, the best thing you can do is explore different subjects and career paths. If you don't like one subject or job, it's not a big deal. Instead, move on to the next one, and eventually, you will find your life passion.

This means that if you're young, the easiest way to figure out what direction to take is to try everything when you're young. If not, it might be more difficult since other people's expectations and pressure might start affecting your decision-making process.

16. Sit down, Close Your Eyes And Think About Products You Genuinely Love

Sit down, close your eyes and think about products you genuinely love. This can be anything from a computer, video games, or a piece of furniture to a car or a shirt. Once you have thought of one product, try to visualize how it was made, who made it, and what materials were used to make it.

If this sounds like an enjoyable process for you, then the chances are that you have a passion for creating products.

17. How To Discover What To Do With Your Life?

In the end, it doesn't matter if you're a doctor or a project manager since both work environments involve responsibility, stress, and long hours. However, if your current job is not providing you with a life balance, it might indicate that it's time to move on to something that does.

In other words, this means that if you want a better work-life balance, then one of the most important things for you to do is find a job that provides such a life balance.

18. Examine Your Core Values And Determine Which Work Environments Will Allow You To Live By Them

Suppose you're not sure what your life purpose is or how to find a job that provides a good balance between responsibility, stress, and free time. In that case, it might be beneficial for you to explore different occupations based on the core values that are important to you.

For instance, if a good work-life balance is one of your top priorities in life, then make sure that the next job you get allows you to spend more time with family members and friends outside work hours.

In this case, an assistant professor can be an ideal career path for someone who wants a better work-life balance since assistant professors usually have more free time outside work than most other professionals in traditional professions such as medicine or law.

So, again, examine your core values and determine which work environments will allow you to live by them. In the end, this might be what you should be doing all along.

19. Connect The Dots And Make A List Of Your Skills

If you want to modify your current work environment to gain more life balance, it might be beneficial for you to sit down and look at the big picture. In other words, try to see how different job roles, responsibilities, and occupations are connected to each other.

Next, list all of your skills and see which ones might benefit you in various work environments. Finally, don't be afraid to explore your options and use your imagination.

20. Experiment And Find Something That You Genuinely Love

If you want to figure out what to do with your life, then there's no need for you to rush the process. In fact, instead of looking at things analytically and making a list of what should be done in order, try breaking down the problem into smaller parts such as skills and interests.

In addition, if you truly want to find something that you genuinely love, then you should experiment with different things. Try changing your environment and see what happens.

For instance, try your hand at real estate, web design, or medical assistant jobs to see which one provides a better work-life balance.

21. Connect With A Career Specialist Or Coach

Remember that you're not alone in this process. Connect with a career specialist or coach who can provide you with professional advice, guidance, and insight into what's best for your particular situation.

For instance, some assistant professors might prefer working only 8 hours per day while others might opt to have more free time during weekends.

If you want to find a better work-life balance, you should talk to assistant professors to find out how they usually handle things.

22. Re-think Your Opportunities

If you want to find something that provides an excellent work-life balance, then you should keep in mind that just because something looks great on paper, it doesn't mean that it'll be the best fit for your needs.

Re-thinking your opportunities might provide you with a better perspective into what's truly important to you. After all, don't forget that the key here is about finding a better work-life balance.

23. Try Out A Side Gig

Remember that you don't have to switch or find a new career to gain more free time ultimately. For instance, if you love spending time with family members and friends but hate the idea of working full-time for an average of 40 hours per week, then why not try out a side gig?

There are plenty of opportunities for assistant professors who want more time for themselves.

24. Regroup, Recalibrate, And Reevaluate Your Priorities

Do you want to get on the corporate ladder and work your way up? Or do you want to find something that offers you a more flexible schedule? Sometimes, we feel so overwhelmed with life and its problems that we forget what's truly important.

If this sounds like you, it might be time for you to regroup, recalibrate and reevaluate your priorities. In other words, remember how important it is to take care of yourself in order to make better decisions.

25. Ready To Start Building A Fulfilling Career?

If the time has come for you to start building a fulfilling career, then you should understand that just because something is traditional doesn't mean that it's the right choice for your particular needs and goals.

For example, if you want to find something meaningful and rewarding, it might be better to take some time off and explore the world. Remember that life is full of choices, so figure out which one works best for you.

26. Your Workday Takes Up So Much Of Your Time

You probably don't get to do everything like you want to. But you can make significant changes in your life by learning how to manage your time better.

You probably already know that managing your time isn't easy, even though it's something that many people struggle with regularly. That's why you need to take the time to analyze your daily schedule and see just how much time you're spending on things that don't matter.

You'll be surprised by what you find out. This will help you make better decisions that will give you some free time for family and friends.

27. Know Yourself

We all have different passions and interests. To find something that provides a good work-life balance, you need to know yourself, meaning what you like and don't like. For instance, maybe you love spending time with friends but hate working long hours.

If this sounds like you, it makes sense for you to think about what gives you energy instead of depleting it. Because if this is your situation, then taking some time off is probably one of the best decisions you can make to increase productivity (and maintain a good work-life balance).

There are plenty of ways for assistant professors to enjoy their lives while still building up their careers.

28. Think A Lot

Right now, you might feel like quitting your job and finding something else to do with your life. But is this really the best choice for you? The truth is that only you can make this decision because quitting requires motivation, discipline, and big plans.

Before you make any rash decisions, however, it's important to take the time to think a lot first. Then think just a little bit more. In other words, don't be too hasty when making decisions that require careful consideration and planning-especially if you're talking about leaving behind the tenure track job that provides excellent health insurance and a good work-life balance for assistant professors.

29. Reflect On What Makes People Unhappy

When it comes to achieving a good work-life balance, we should never forget that we all have different reasons for feeling unhappy. For example, maybe you're not taking care of yourself and neglecting your health.

Or perhaps you're not getting enough sleep, and that's making you cranky and irritable. The list goes on and on: debt, relationship problems, financial woes, etc.

The point is this: If something is bothering you, then now is the time to figure out what makes people unhappy, because once you understand why this happens in the first place, then it'll be a whole lot easier for you to make necessary changes. In other words, don't wait until tomorrow or next year or whenever.

30. Be Confident

https://youtu.be/gu7awUtecsc

Be confident that you'll find something fulfilling and rewarding. No matter where you go or what you do, it's always a good idea for assistant professors to possess skills to make them stand out.

This might not be easy at first (or anytime), but once you spend enough time doing the things that make your life worthwhile, then everything else will start to fall into place. In addition, this will give you a chance to think about what makes people unhappy and figure out why this happens in the first place.

31. Setting The Proper Expectations

When it comes to building a career, you should set reasonable expectations. Do not fall into the trap of believing that because something is easy, then you will get what you want right away (or overnight).

This is rarely the case; however, once these reasonable expectations are decided and understood, then everything else will be much easier to achieve. Or at least that's how it works for most people who enjoy a good work-life balance while still trying to build up their careers.

This might sound difficult, but it's not, especially when you understand the importance of setting the proper expectations.

Wrapping It Up

In conclusion, if you are willing to make changes in your life, there's no reason you can't enjoy what life has to offer right now. All it takes is the proper amount of preparation and hard work. Once these two factors have been met, then nothing will be able to stop you from finally achieving those long-awaited goals.

Paolo Bacigalupi once said, “debts are a heavy burden. Throw them off, and you walk free.” Many today look way older than their age, not because of any ailment, but because of the yoke of debt. More specifically, they are drowning in debt.

Almost everyone has been in debt in one phase of their life, but as they say, “it’s not what happens when you fall down that matters, but what you do to get back up.”

Follow These Steps If You Are Drowning In Debt

If you ever find yourself tangled in an unending web of debt, the following lifehacks listed below will get you out of the situation as long as you are willing to diligently follow the principles and apply them to your daily life and routine — success is not an accident that happens to those who are unwilling to move a muscle.

1. Decide You Want To Remain Debt-Free

The first step to leaving a lousy predicament is taking a bold and daring stand to win regardless of the uphill task facing you. Generally speaking, living debt-free can be really exciting, especially when you consider the emotional freedom and benefits that come with it, but you have to understand that there are mountains to climb in this journey as well as bumps on the tracks.

Knowing the challenges and what it will cost you — as well as the gains at the end of it all — will always add gasoline to your fire anytime you feel weary or worn out.

Why do you think you have had enough of the red stamped envelopes filling your mailbox? Why have you suddenly decided to tow the part of financial freedom? Answer these questions, write down your answers, and constantly remind yourself of what you stand to gain at the end of it all.

Remember, the end will always justify the means — never forget.

2. Seek Help Where Necessary

There is no shame in asking for help when you need it. The first place to begin is canceling subscriptions you don’t need — why pay for a gym class when you spend most of your time working?

You can also try reaching out to your creditors and letting them know the state of things with you. There are lots of kind hearts out there who have equally been through what you are currently facing, and you would be surprised at the help or suggestions that come your way.

I won’t guarantee every creditor would be willing to give you a listening ear or offer to lend a helping hand, but it’s definitely worth the try. The moment you catch up on your bills is the moment that prepares you to clear your debts.

3. Avoid The Temptation Of Incurring More Debt

Things couldn’t get messier than they already are, so avoid the urge to repeat the vicious circle that got you into debt in the first place. It’s always fun to keep swiping your credit card from time to time, but you have to be constantly reminded of your goals anytime the opportunity to swipe your card presents itself.

You can start by asking yourself the following questions; do I need this stuff? Does my life depend on it? Is there any health fulfillment that comes with swiping my credit card at this instant? What do I stand to gain at the end of all this?

Asking and answering these questions will always remind you of where you are and where you are headed. Don’t trade a lifelong achievement for a few hours of pleasure. Remember, is it worth it?

4. Revive Your Piggy Bank Habits

If you had a habit of saving pennies while growing up, then it’s time to revive it — if you didn’t, then it’s not too late to start.

People in debt will always feel the need to spend every penny they earn or get on servicing their debt, but while this might seem ideal, having a piggy bank stashed away for emergencies is always worth it to stay afloat during the entire process.

Learning how to increase your liquid net worth and emergency funds is a great financial strategy to help you with unexpected expenses such as fixing a flat tire or paying for necessary repairs without incurring more debt on yourself.

5. Have A Budget

There is an old proverbial saying, “cut your cloth according to your cloth,” that most people take for granted. Most times, people’s mistake is cutting their cloth according to their size, without considering the material or resources available to them.

You might be desirous for a particular lifestyle, but if your resources aren’t cut out to get you that life, you have to learn to make the necessary adjustments until things fall into place — and they always do if you are willing to discipline yourself.

Having a considerate budget based on your income is the map that’ll take you out of debt. Budgets keep you on track and also help you identify things you need the most. They help you create a meaningful scale of preference which is essential in such times.

Remember, what you want is not necessarily what you need — your budgets help you make such decisions accurately.

6. Put Extra Spending On Hold

Now is not the time to pay or renew a Netflix subscription, pay for that expensive diner, or get that costly jacket — there is a time for everything, and unfortunately, you don’t have the time nor resources to afford certain luxuries — it still boils down to cutting your dress according to your cloth.

Let me make it a bit simpler for you. Since the internet is now agog with one challenge or the other, why not try a “no spending challenge”? It simply means that you don’t get to spend on things that aren’t needed for your survival. Of course, you will have to keep paying rent, buying food and needed groceries, and other very essential commodities, but any additional frivolous spending would have to wait.

I dare you to try this for a month and see the astronomical changes it makes on your finances — I dare you.

7. Diversify Your Source Of Income

Aside from taking the logical step of not being a spendthrift, the next best thing that can happen to you in such times is to increase your source of income.

What do you do in your spare time? Do you just laze around and wait for your next shift? Or you simply try to catch up with the latest events on the news? I know we have to relax now and then, but don’t let it stretch too long.

The Good Book couldn’t have put it better when it said, “A little sleep, a little slumber, a little folding of the hands to rest — and poverty will come on you like a thief and scarcity like an armed man.”

Thanks to the emergence of apps like Doordash, Uber, UberEats, Grubhub, and other amazing platforms, you now have the opportunity to make some extra cash on the side without much stress. The good thing about such gig economy apps is that you can work whenever you want and sign out anytime you want.

The money realized from such platforms can be used to offset bills and set you on course for the financial freedom you deserve.

Another platform to leverage is freelancing sites such as Freelancer.com, Upwork.com, and Fiverr.com, which offer you the chance to sell your services. Unlike the other platforms I mentioned earlier, you would need some level of commitment to meet clients’ deadlines, but it’s worth trying if you feel your work schedule can be flexible.

Services required on these sites can include website development and design, graphics design, ghostwriting, and a whole host of others.

If there is one thing you have to remain committed to cheating on, it should be your 9 to 5 income. Remain aggressively committed to raking in more money, and in little or no time, your financial woes would be a thing you would use to inspire others.

8. Use The Debt Snowball Method

The snowball method simply involves you paying up your smaller debts, then moving on to the larger ones until every debt is eventually cleared up. In any race we are in, we need the slightest motivation to keep going, and little wins such as clearing minor debts will go a long way in assuring us that all will eventually get well – He who is faithful in little will be faithful in much.

The more debts you clear, the more your debt snowball continues to gather momentum until you eventually stand above the debt that once stared you down.

9. Try Refinancing Your Loans

Refinancing your debt is another effective means of paying your debt if handled correctly. The explicit goal of refinancing your debts is to get new loan deals that offer you a lower interest rate than the one you initially signed up for. With such arrangements, it’s very possible to save lots of money that wouldn’t have been possible. Such savings can be channeled to paying off your debts faster.

The thing to look out for in such deals is the new loan charges and other additional costs and excesses they are likely to come with. Stay away from any refinance deal that doesn’t enable you to save money overall — you will be better off with your old loan instead.

Student loans are one of the loans that need careful consideration before attempting to refinance them. This is because refinancing student loans can make you lose some key benefits such as income repayment options amongst many others — in such cases, I suggest you stick with the devil you know rather than embracing the angel you don’t.

In Summary, Don’t Panic!

It’s very easy to fall into despair and desperation when faced with meeting up your loan obligations and their deadlines, but the key here is to remain calm. Embrace every day as an opportunity to win regardless of what the present predicament states. You are better off believing you can win.

You might be currently going through a lot at the moment, but it only gets worse when you allow it to sieve through to your inside. Develop a tough skin for such situations, and don’t allow it to dictate how you approach other events that occur around you.

Don’t let debts affect how you treat a loved one or speak to customers at your place of work — many have gone through something worse or similar and came out with victory stories — your case won’t be different.

Stay positive, remain calm, take an aggressive approach, and will, but most importantly, don’t be tempted to take up illicit means to clear up your debts — those at the top did not fall there — there is a climbing phase we all have to endure to eventually win, and I know you will.

This post originally appeared on Arrest Your Debt.

Photography involves taking pictures with a camera or a mobile phone, enabling people to capture their activities, subjects, and moments. However, many people do not know they can make money through selling photos of themselves online.

This post will show you how to make money selling photos of yourself and the easiest ways to do it!

In the past, a professional photographer was the one who profited off selling various types of photos on stock photo websites. Camera equipment was costly, and only a few top professionals could afford the equipment meant to produce high-quality images.

However, the exclusivity has changed because technology makes it easy to have a high-resolution camera on your smartphone. With cameras and phones being affordable, additional accessories are also available to improve your photo qualities. In addition, the ease of taking great photos because any person with a smartphone can take a picture of themselves at any time.

Using Your Smartphone To Make Extra Money

Smartphones have changed photography. You can now earn money from self-portraits, popularly known as selfies. In this era where the cost of living is high, people are looking for ways to make extra cash, and making money with selfies is a great way to do it!

There is no easier way than selling pictures of yourself online!

In this article, we will discuss the different ways to sell your photos online. Having your photos for sale comes with a little invasion of your privacy. You can bump into people who recognize you from your images being used in product placements and print media. If you have no problem with being recognized on the streets, you can make extra cash by selling photos of yourself online.

Here Are The Best Ways To Make Money Selling Photos Of Yourself Online

These best ways to make money selling photos of yourself are split into categories depending on what type of pictures you want to sell.

Apps That Pay You For Selfies

There are different ways to earn money through selling selfies on the internet. Here are some selfie paying applications and how you can monetize your photos on these applications.

1. ScoopShot App

Scoopshot is another popular application where you can earn money from selfies. The application does not pay you directly for uploading your photos but connects you with people looking for custom images.

After you post selfies on the app, people who run marketing campaigns and other photo needs can browse through selfies they would like to purchase. Because the app relies on customers to select photos they want to buy, you are paid on a per successful transaction basis.

If people don’t like your photos, you won’t get paid.

There are various other ways to make money through ScoopShot. For instance, ScoopShot occasionally runs contests and competitions for users to submit the most creative image based on a specific set of requirements. If you are selected as one of the winners, you may receive a cash prize not tied to a regular customer purchase.

The application does not have a website where you can contact or enquire anything about the terms. You can only access the application after downloading it from the Google Play Store or Apple iOS. If you want people to buy your photos from the application, you need to be creative and smart when uploading your selfies.

2. Pay Your Selfie App

This is an application you might have heard about because of its popularity among people who share selfies. With the application, you make money by sharing photos of you doing certain things and tasks. There are categories of jobs you can do on the application to earn between 20 cents and a dollar for each image.

This application requires you to follow instructions while doing the tasks given.

After taking the selfie, the app links you to advertising companies or companies that need selfies in their marketing campaign. After completing the required task, your account will be credited.

When you save up to $20 in the app, you can cash out your earnings via a check or a donation made to the charity of your choice.

If you enjoy taking selfies and would like to make some money, Pay Your Selfie is an excellent application to join.

You probably won’t get rich off the photos you submit to Pay Your Selfie, but it’s a great way to earn extra cash in your free time. Because this application is widely known, there is a potential market where advertisers may approach you directly to feature you in their commercials or marketing campaigns directly.

3. Stylinity App

If you are looking to make money online with your selfies, you can use the Stylinity application. The application has a shopping site with a selfie network where people can earn from uploading their selfies.

The old saying, “it takes money to make money,” is exactly how Stylinity operates. On Stylinity, the first step is to buy clothes from their online shop and then photograph yourself in the clothes. Depending on the clothing items you select, the clothing purchase can cost you anywhere from less than $10 to over $200 per item.

You can then edit your photos to achieve the best look you can. After taking the photo and editing it to your standards, you upload the picture to the site, where your image will be displayed in the clothing you purchased in Stylinity’s online shop.

If a person likes your image and buys the clothes you are wearing in the advertised picture, you are paid via Style Perks, which can later be redeemed for cash or other products in their online shop. Keep in mind, you only get paid after someone likes your image and buys the product from their website.

If you like the clothing offered through Stylinity and would purchase these items at other locations, it’s a great way to attempt to get money back from your purchase.

Create Your Own Brand

By selling your selfies through an app like those listed above, you are required to follow their terms of use and work on their platform. However, if you take popular and highly sought after images, creating your own brand and working on your own terms may be your best bet.

4. Create A Website Or Photography Blog For Your Brand

You should create a website if you want to make more money and take control of your brand. A website allows you to offer your photos to be purchased for commercial purposes, and a simple webpage helps authenticate your work.

You can use your website to make money on your own terms and offer your images for sale in any way you like. You take more control over your images and how they are offered when you control the platform they are uploaded to.

If you learn more about creating websites, you can build a site that appears on the first page of Google and other search engines if you know how to build a website properly. Imagine your website showing up if someone searches for “custom photography” or “professional selfie.” You can create a website to match up to anything you want people to find based on their searches.

BlueHost is a cheap and easy way to start your own blog or website. For less than $6 a month you can run your own website!

Websites Are An Extension Of You

On the first page of your website, known as the “Home Page,” you can showcase your brand and everything you are most proud of. The Home Page can be used to funnel customers to other parts of your portfolio and to gather more information about you.

For instance, most websites have an “About” page that tells more about the publisher. This helps people connect with you as a person rather than an unknown entity on the internet. In addition to your About Page, you can build a custom “Contact Me” page to answer questions people have.

For instance, a potential client may want a specific photo taken and contact you directly through your preferred contact method. With your own website, you control what people see and how they see it.

Using your website to sell photos of yourself to stock sites and advertisers gives you the freedom to control the price. It is also easy to track your website’s sales instead of selling directly from stock image websites. They, however, have an advantage over personal websites.

On your website, you can have categories of different images of yourself that advertisers can choose from. On a personal website, you have full control of the creative process and the range of images you want to publish for sale.

Make Your Photography Blog Or Website Mobile Friendly

Creating a mobile-friendly website is very important because sometimes you can have customers buying images from their portable devices. You can also include the part where people can direct their photoshoots with you as their model for their products and advertising campaign.

With a website, you can easily land a TV commercial job, which improves your resume. You should add links to your social media pages on your website if you use them to share some of the content you post on your website.

For example, some photographers sell many images by promoting their work on social media. An example is Jeremy Cowart. He is a successful photographer who sells his pictures to stock sites and companies straight from his website. He has a massive following on Instagram and Twitter.

5. Start A YouTube Channel For Your Brand

YouTube is a great way to monetize your brand and funnel people to buy your products on a website or app. YouTubers typically make extra money through video content and can feature specific articles of clothing or other accessories by being paid by advertisers.

Think outside of the box when creating your own channel. For instance, if you’re great with Adobe Photoshop, you can show how you edit your photographs. By offering free tutorials, it adds to your credibility as a photographer and an individual.

Creating a brand is a lengthy process, but when you can control the narrative and show people you are authentic, this video platform can drive people to your website.

Ensure that you share all the relevant information from the process of capturing, editing, and the final product. Come up with creative captions for the images you share on your photoblog.

6. Leverage Social Media To Make Money Selling Pictures Of Yourself

Social media can help you grow your audience and find people who will pay for your pictures and images. Many photographers sell prints of their images online because people find them attractive. If you are photogenic, advertisers love to pay influencers to feature a specific brand or product.

You can curate your social media in a creative way that is attractive and has a theme. For example, @everydaypeoplestories on Instagram is a photographer who sells many images from his website. However, he uses his social media account as a way to advertise his work to the masses.

New York-based photographer Silva (@JnSilva on Instagram) has a YouTube channel to share his creative process and post-editing process that people enjoy. He uses this medium for advertising his work while selling his images to large stock image companies like Shutterstock.

Even if you are an amateur at photography, you can learn how to edit and manage your content through online classes and YouTube tutorials. Technology makes selling images online very easy. All you need to provide are unique quality images.

7. Participate In Photo Contests

To help you sell your photos online and increase brand awareness, you need to join competitions where there are prizes and recognition. Your images are critiqued in these competitions and can offer you valuable insight to gain more experience and hone your skills.

Even if you do not win the cash prizes, the experience you gain from seeing which photos win and which ones do not do well will show you what people prefer. To find available contests, many stock image sites have competitions for their websites where regular contributors are given priority.

If you’re looking to create awareness for your brand and yourself as a model and photographer, you can contribute to local and international print magazines by sharing some of your photos for free. You get your name out there, and people will recognize your efforts and start buying your pictures for their advertising purposes.

While you grow in the business, you will find it easier if you know how to take pictures of yourself communicating on specific topics through the experience you learn from competitions.

8. Display Your Photos In Public Exhibitions

Displaying your photos at public exhibitions and different locations helps you market them faster by increasing your brand awareness. You can show your images in coffee shops, museums, libraries, and exhibitions.

Due to the number of people who walk into these locations every day, there’s a good chance people will notice your photograph and possibly contact you to purchase it. Being publicly visible and sharing your contact information at exhibitions helps interested people reach you easily.

If you are permitted to display your photos in a specific location, ensure that the pictures are displayed strategically and in a place to make it easy for the people coming in to see them easily. Having copies of framed photos to sell to walk-in clients is also important. The images are part of a story that people might be interested in viewing and sharing.

Another critical thing to do is make yourself available to meet and talk with people during an exhibition. Clients and prospects like talking to artists to see what inspired them to do a particular art piece. Being available makes it easy for you to close a deal as soon as an interested person appears in the gallery.

In addition to selling photos of yourself, you may find a client who wants you to model for their products because of your style in creating your images. With photos of yourself, you are easily recognized, and the people interested will reach out.

Have an open mind if you get a chance to interact with people viewing your images at a display.

Sell Your Photos Of Yourself To Stock Library Websites And Apps

Many online websites and mobile apps have created large image libraries that have millions of followers. By selling your images on these websites, you can use the large audience they already have to reach potential customers.

9. Choosing The Best Stock Library

Stock libraries are like a series of images that explain something. For example, you can have stock images of what happens in a hospital with pictures of medical doctors, nurses, receptionists, syringes, and other things found in a hospital.

The advantage of stock photo libraries is that you can contribute to stock image sites if your images are of good quality and meet the website’s standard. It is easier to have your stock images accepted if they are in a series form, meaning several related photographs.

You should also upload different resolutions because the customers might want to buy the image for a billboard, and if they blow up the picture, the quality is expected to remain the same. Before you are approved to be a regular contributor, the images you upload will be vetted, and if you pass the test, you can upload pictures regularly.

The Best Stock Image Sites Include:

Shutterstock

Sura images

Pexels

Unsplash

Burst by Shopify

Reshot

Pixabay

Foodiesfeed

Gratisography

These stock image websites have categories that contributors use to share the images. Most of the websites have popular images. Clients search for images they are looking for by entering keywords in a search bar. The photograph descriptions that most closely match the search query are the ones that are shown to the visitor.

Because of this, be sure to use keywords that best describe the images when uploading your pictures. As a photographer, photos of yourself can quickly sell here if you have ideas that may be used in specific fields.

If you learn how to sell popular stock photos, you can meet your financial goals and pay your bills.

10. Use Mobile Applications

use mobile app for how to make money selling photos of yourself

There are many photo selling applications and websites like:

PhotoCash

Getty Images

SmugMug

500px

Snapwire

Dreamstime

Instaprint

Photoerloo

EyeEm

iStockphoto

On these apps, you can sell your photos without a lot of work. Most of these apps and websites are free to join, while others have a monthly fee subscription. The important thing is the network of clients the websites and applications expose you to.

Many potential clients scroll through these websites looking for photos to buy and use in their blogs and other websites. If you can offer what the clients want, you can be very successful.

Even simple actions like walking, jumping, drinking, smiling, and other activities do well on these platforms. Once you complete these actions, you can upload the images on the websites for potential buyers.

Tips To Improve Your Photos Of Yourself

tips to take photos of yourself

If you want to sell more photos of yourself, you need to invest in your photos’ quality. The better the quality, the easier it is to sell your images.

1. Get A Tripod Stand For Your Camera

After getting a good camera or phone, you will most likely need a tripod and a selfie stick. The tripod improves the steadiness of the photos you take. If you take pictures of yourself that are not necessarily selfies, you can use the timer feature on your gadget and a tripod to help you get good quality photos.

On the plus side, a good tripod is relatively inexpensive.

With clear images, the editing time is reduced, and the end product is easy to achieve. With a tripod, you do not need other people to take photos of you. It enables you to be self-reliant while getting quality images.

2. Open And Grow Your Social Media Pages

Social media platforms are an essential part of sales in the modern era. You can upload your photos using different sites that include:

Facebook (2.23 billion monthly users)

LinkedIn (294 million monthly users)

Tumblr (642 million monthly users)

Qzone (632 million monthly users)

Twitter (335 million monthly users)

WeChat (1.06 billion monthly users)

YouTube (1.9 billion monthly users)

Reddit (330 million monthly users)

Instagram (1 billion monthly users)

QQ (861 million monthly users)

Pinterest (250 million monthly users)

Snapchat (255 million monthly users)

TikTok (500 million monthly users)

WhatsApp (1.5 billion monthly users)

Telegram (200 million monthly users)

When you begin using social media, you should invite your friends to follow and share your work. This allows you access to a new audience from people who do not follow you or know about your work. The network grows with consistency until the people following you are now following you purely based on the content you produce.

Sometimes you can tag brands whose products are in the photo you are sharing, and you might get a partnership with them in the future.

Increasing Your Reach

To effectively increase your social media reach, you need to upload your photos consistently. If you are consistent, you get an active audience ready to interact with your content by reposting and sharing for other audiences to view.

Hashtags

Social media has tools like hashtags to help you share your photos using known tags. Using the hashtags, you get exposed to a new audience and pictures that are similar to yours.

Paid Advertisements And Shares From Followers

You can boost your photos’ views by using paid advertisements on different social media if you can afford it. Paid tools help you reach out to more people than organic posts. Grow a community of followers that anticipate your work by creatively sharing your work.

Many Instagrammers who sell photos of themselves online have grown their portfolio by using creativity in their captions and their edits to attract buyers.

3. Purchase Photo Editing Software

If you want to commercialize your photos, you need to get good photo editing software. It makes all the difference in quality after you shoot using a good camera.

Popular photo-editing software includes:

Adobe Photoshop

Adobe Lightroom

Vsco

Phototouch

Most of these applications have free trials, and there are those that you need to buy from the get-go. Although the full-stack software can be expensive, you cannot put a price on the value of the return on investment if you are consistent.

With this software, you can learn how to use them through YouTube tutorials and classes online. You should strive to improve your editing skills every day until you can create your own presets to use on your photos quickly.

Software like Photoshop can control the sharpness, white balance, and contrast of an image before sharing. The good thing about having editing software is you can easily have your work featured by the software owners, which exposes your photos of yourself to millions of viewers.

With the increase in the quality of using photo editing, your work will speak for itself.

4. Carefully Select The Photos You Choose To Upload

When uploading your photos, you need to upload pictures of high quality to maintain a loyal following. If you are uploading images on your website, make sure you include prices for different resolutions.

If you are uploading photos on your social media, ensure you use keywords in your captions and hashtags to gain a larger following and viewership.

If you choose to provide tutorials, be careful when sharing the process of making these photos if you have any specific tips and tricks that are valuable to you.

Chronologically share the process to make sure the viewers understand what you are doing.

After quality, you need to check if you are uploading the correct photos. If you are submitting a stock library, make sure the images tell a continuous story.

5. Know Your Audience

Depending on your intended audience, there are different types of pictures you can take and upload. Some of the more popular pictures you can take are:

Outdoor photos

Marketing photos for a company

Photos of feet (if you have gorgeous feet)

Photos for bloggers

Exclusive photos for subscribers

Photos for affiliate marketing

Weddings

Traffic backgrounds

6. Do Not Give Up

Making money by selling photos of yourself online will not happen overnight. You have to put the work in and follow a routine in uploading your content as frequently as possible, depending on your uploading schedule.

You also need to update your social media with the latest content often. For you to be a regular stock image contributor, you should follow a structured uploading schedule to ensure you do not lose out on your rating as a contributor.

Keep in mind, sometimes the money you get out of sharing photos of yourself is not much at the beginning. However, if you stay with it and continue to improve your image quality, you can eventually have a steady income coming from your work.

7. Practice Makes Perfect

One of the easiest ways to increase the amount of money you can make from selling photos of yourself is practicing as often as you can. The good thing is that resources like YouTube and Udemy offer cheap, accessible classes to improve your skills. Although many people think the idea of selling pictures of themselves is a side hustle, you can also upgrade it to your full-time job if you’re successful enough.

If you can free up enough time to learn and practice, nothing can stop you from selling hundreds of photos to advertisers and clients online. Having an open mind while working on your skills is essential.

If you want, you can even evolve to sell other images that do not involve you being the main subject.

Other Things To Consider Before Selling Photos Of Yourself

options to consider when selling photos of yourself

Before you start uploading countless images of yourself, there are a few considerations you need to know about before making money.

Licensing And Security

If you think it’s necessary, you may need to do background checks on your potential clients because not everyone online has the best intentions. Look through their social media or websites to see how they use images. If they extensively promote drug use or other things you don’t want to be associated with, this may not be acceptable to you and something you may want to steer clear of.

You can control who uses your photo by using different types of licenses and watermarks. This way, you can cover yourself if you have a copyright issue with your image being used to promote illegal things. Some of the licenses include:

Rights-Managed (RM) License

Editorial Use License

Model Release Forms

Royalty-Free License (RF)

Royalty-Free Extended License

Creative Commons License

Public Domain

Don’t Forget Your Terms And Conditions

Ensure you have model release forms and photography licenses for your images. This is something many people forget. However, this legitimizes the work you are doing and can avoid potential issues in the future.

If you want your images to be sold on websites like Etsy, you need a release form and authorization since they do not own the photos. Having a standard license for your stock photos reduces the back and forth between you and the avenue you are using to sell your images. Because you mostly sell digital images, you have to include licenses for those who are going to print them.

It is important to also read through the terms and conditions if you upload your photos on photo marketplaces. You should read through the terms to know what percentage of your money the websites and applications are keeping after selling one of your pictures.

Sometimes, you can find customers who want to cut out the middle man and by your photos from you directly. This can save both of you money by avoiding dealing directly with each other. If you attempt to create these relationships, be wary of any deals that seem too good to be true. There are a ton of scam artists online.

All in all, selling photos of yourself online can be a lucrative business if you are ready to put in the work. You can make a lot of money from this avenue if you are strategic in your approach. Good luck in the venture if you are starting now – and keep with it! It can take a couple of years for your small business to take off.

This post originally appeared on Arrest Your Debt.

Many people have wrecked cars and are unsure of what to do with them. Rather than leaving the totaled vehicle in your backyard, selling the wrecked car may be your best bet. A damaged vehicle has decreased value, but it is still possible to sell it for good money.

You can take the money offered by your insurance company, or if you did not have insurance when your vehicle was damaged, you could keep your wrecked vehicle.

You will not have an obligation to repair the vehicle, but instead, you can choose to sell it for top dollar.

To achieve this, there are several factors to consider to get the best deal. Do not get stuck with that damaged car rotting on your property; it still has value. This detailed article will guide you on how to sell your damaged automobile for the most money.

What Is A Wrecked Car?

A wrecked car is a car that has been damaged, usually beyond repair. For a vehicle to be considered “totaled,” it means it is so damaged that the amount of money required to repair it would be more than the vehicle’s worth.

A car can be destroyed due to a tragic accident or other nefarious means. The level of damage to a vehicle can range from a small dent or scrape to a completely totaled and unusable car. No matter the level of damage, you can still sell your vehicle for a reasonable amount – depending on its condition.

How Much Does It Cost To Fix A Damaged Vehicle?

The price for fixing a damaged car is determined based on various factors. The following factors are highly considered in this process, and the repair services needed may require a different mechanic or body shop depending on the issues.

The model and brand of the vehicle

Depending on your automobile’s model, the price of spare parts and labor can vary greatly. If your vehicle is older, finding replacement parts can be problematic. Older vehicles generally have outdated parts that are no longer manufactured. Because of this, you may be required to pay much more for the rare spare parts and the cost may not be worth it.

If your damaged car is a luxury vehicle, the cost of repair will also be high.

The extent of the damage

When fixing a wrecked vehicle, a more damaged car costs more to repair. When the vehicle is totaled or completely wrecked, the cost of having it fixed usually is more than the value of the vehicle itself.

Such expenses lead many to prefer selling damaged cars instead of repairing them. This is because minor damages such as a scrape or ding can easily be fixed for a few dollars. On the other hand, significant damages cost a lot of money to fix.

*It is important to note that repairing a damaged vehicle can affect the car’s safety when it is finally fit to be driven again.

When your vehicle suffers severe damage, such as a broken engine or damaged axels, the repair cost may be too high, even more than the actual value of your automobile. If you face this situation, an insurance adjuster can declare your vehicle as totaled or a total loss.

An insurance company prefers to offer you money equivalent to the automobile’s value, as per Kelley Blue Book’s recommendation. Insurance companies usually avoid repairing a vehicle if the repair cost is more than the vehicle’s value.

The decision to declare your vehicle as totaled and offer you a lump sum payout usually saves the insurance company money. This only applies when your vehicle is totaled and the cost of repair is more than the car’s value.

Selling A Damaged Or Wrecked Car

You might be unsure what to do with your damaged car, especially when repairing it is not an easy option. The good thing is you may dispose of your damaged vehicle just as it is, without any repairs.

Begin by comparing the cost of repairing it versus selling it. Is selling it “as is” more convenient than repairing your automobile? If your vehicle is too damaged or not worth fixing, you should consider selling it.

Selling a wrecked car can be a relief, primarily when you quickly sell it after being stuck with it for a while. It is a good way of getting instant cash instead of investing more money and time to have it repaired. It’s possible to earn top dollar for a damaged car, and the money could be enough to purchase a new vehicle.

Determining The Value Of Your Damaged Car

First, you must find out if your vehicle has a chance to run again. The car will earn you more money if the vehicle can be repaired instead of sold for parts or scrap metal.

The make and model of your damaged car also determine the overall value. If your vehicle is a newer or high-end model, you will get more when you sell it. If the model is a bit older, even 20 years older, the amount you receive will probably be less.

Newer vehicles are usually more easily repaired because spare parts are readily available. For older vehicle models, it can be challenging to find the parts to repair the vehicle. Because of this, you may get less for your vehicle.

If your vehicle cannot be fixed, the value is in the parts that can be salvaged. If your damaged car is a high-end, luxury, or newer model, the parts have more value than if your vehicle was an older model. This is because spare parts of a new vehicle are worth more.

By considering the above information, when you sell your wrecked car, you can be prepared to push back on low ball offers.

Selling Your Wrecked Car To A Used Car Dealer

Lots of car dealers purchase damaged vehicles. They mainly repair the cars for resale while others use them for spare parts. Selling your damaged car to a preferred dealer is one way you can earn money.

This process is usually quick and easy since dealerships are used to buying and dealing with damaged cars. There is less negotiating involved, and they will offer you a set price to take the car off your hands.

To find a dealership near you that buys wrecked cars, a simple Google search will point you in the right direction. You can also call the dealership and request a quote for your vehicle rather than waste your time visiting in person.

Typically, if the vehicle doesn’t run, the dealership will send an appraiser to your location to evaluate the vehicle. The next step is to fill out the required paperwork and collect your cash.

Tips On Getting Top Dollar When Selling A Damaged Car

If you need a high-quality purchaser, this section offers excellent tips on making the most for your damaged car. There are different places you can sell your damaged automobile depending on a few factors.

They include:

Used Car dealerships

Insurance companies

Automotive recycling companies

Your car will fall into a specific category that determines how much money you can get for it. Use the following information to inform you about what to expect from the process.

Late-model cars

These are vehicles that are no older than ten years and were manufactured in 2011 or later. The value of these vehicles usually is higher, even if the car is damaged. Generally, the newer the model, the more value it has.

When your wrecked recent model vehicle can be fixed and resold, its value is even higher. Two of the most expensive components are the transmission and engine. If both of these still work or can be repaired, expect to get more money for the vehicle.

Older model cars

These types of vehicles are models that have been in existence for 10 to 20 years. When you possess a damaged car that is considered an older model, it will be less valuable, and most potential buyers will offer you less than you may expect.

In selling an old model vehicle that is damaged, determining the proper selling point will most likely be factored by the vehicle’s weight and spare parts.

When referring to old model vehicles, some are also referred to as “junkers.” Junkers are older than 1992, and unless they are classic vehicles, they are only worth the metal in them.

Niche cars

Niche vehicles are high-end and a bit older. They include Porsches, older VW bugs, and other similar vehicles. These vehicles have a higher value even if they are older. Having a niche car means you can sell the automobile for more than regular older model cars.

By understanding the different types of vehicles and categories that help determine the value of a car, you can make a better decision about who to sell your wrecked car to.

Entities That Purchase Wrecked Cars

This section details the pros and cons of the different options available to sell your wrecked car.

Insurance companies

If you have an automobile that is totaled, your insurance company is one of the entities you can consider selling it to. Insurance companies will make you an offer to buy the vehicle based on its worth at the time of the collision.

For cars with collision insurance, this avenue is an excellent method of getting rid of it with a convenient insurance check since it spares you from dealing with repairs or selling it to someone else.

Salvage vehicle auctions

A salvage auction is an option to consider when selling your damaged car. These auctions are intermediaries between salvage yards, auto recyclers, and insurance companies. While it is restricted to certain sellers in some states (like dealerships and tow yards), it is quite a simple process in other states.

The good thing about selling your damaged car at an auction is that you have access to many private buyers. You can consider auctioning your vehicle at an auction house because this may give you more money than selling it to your insurance adjuster.

With a salvage title, salvage vehicles can earn a bit more when sold at auctions rather than junkyards.

The only issue with an auction is the damaged vehicle must be physically present at the auction. You need to tow the damaged vehicle there and pay the necessary auction fee for a chance to sell.

You can also consider the services of a company that specializes in junk vehicle auctions to connect you with potential buyers. No matter how you want to auction your motor vehicle, you can be sure these options will get you money for your wrecked car.

U-Pull-It Salvage Yards

When selling to salvage yards or scrap yards, you are selling the vehicle for parts. Because of this, there are no middlemen during the sale. Businesses like U-Pull-It Salvage Yards buy wrecked vehicles, and dozens of people dismantle the cars as they look for parts they need.

The salvage yards sell the valuable parts of the dismantled car individually, which usually earns more money than selling the car. It is the weight of the vehicle that matters most for these buyers.

They sell the valuable components from the damaged vehicle at discounted prices. However, their customers have to remove the parts. The main advantage of these buyers is they are the end-users, giving you more money, especially if you sell when the metal market is doing well.

For this reason, this option is better for a quick sale than dealing with an auction. The main setback of a salvage yard is that these buyers will not offer a fair price for high-end or late-model vehicles. This is because these vehicles don’t earn them much due to the readily available parts in the market. To them, these types of cars are usually not worth investing in.

Full-service salvage yards

These are also end-user buyers, making them a great option to consider when selling your damaged car. The chances are you will be the only one in the supply chain when selling them your wrecked vehicle, and this will earn you additional cash.

The scrap recyclers dismantle the damaged car and sell the valuable parts to garages, dealerships, or vehicle body shops. The unique advantage of these recyclers is they disassemble and clean the damaged vehicle themselves. They even offer warranties on the parts they sell.

This is a good selling point, which nets them plenty of buyers. Full-service salvage yards also have a more reliable inventory, and the draw for buyers is the assistance in finding the particular car parts they are searching for.

If your damaged car is a late model or high-end motor vehicle, the recyclers offer a better price since the parts’ value is higher.

Towing companies

The majority of the buyers who purchase wrecked cars are towing companies. Towing companies are not the vehicles’ end-users, and they do not dismantle the wreck after buying it. The towing companies mostly buy damaged cars and sell them at an auction or car-buying business like a salvage yard.

Towing companies may be an easy option to dispose of your wrecked vehicle, but they will not offer a fair market appraisal since a wrecked car’s value is not much to them.

Other Places To Donate Your Wrecked Car

Other methods to sell your damaged car include non-profit organizations where you can donate your vehicle to a specific charity. These organizations will pick up your vehicle and sell it to a salvage yard. For these organizations, they serve as mere middlemen, and they do not possess the vehicle.

A quick online search will show the non-profit organizations that will take your wrecked car off your hands.

A Quick Recap

You now have a clear idea of the type of entities and people you can sell your damaged vehicle to. As a reminder, if you intend to sell a junker, the parts are of little value. This means a salvage dealer may see no need for it.

Tow Yards

In some cases, a towing company may be the best option. Selling a wrecked car is equal to getting rid of something you no longer need. It’s not going to make you rich, but it will eliminate a potential long-term, leaky problem.

U-Pull-It Scrap Yards

If your damaged car is an older model and fixing it would not be a good option, you can take it to a U-Pull-It yard. These are end-users who can professionally dismantle the wreck and later dispose of the parts. Consider this yard option as a top choice but if you feel the need for a second option, consider auctioning your wrecked car.

Niche Recyclers

If your damaged car is a niche type, you may find niche recyclers are few and far between. This is good for you because you will usually make more money than with a regular recycler. The good thing about selling to a niche recycler is that the vehicle parts are valuable to them compared to an ordinary recycler.

A quick Google search can show you the niche recyclers in your area.

Late-Model Vehicles

There are more options to sell late-model vehicles because newer cars are worth more. Even though selling at an auction requires you to pay a fee, you can sell your damaged automobile to the highest bidder. The one who buys the car pays a back-end fee to the auction house, and this fee is deducted from the amount paid for the vehicle.

Selling late-model vehicles will definitely make you more money.

Full-Service Salvage Yards

On the other hand, full-service salvage yards are another option for selling a wrecked late model car. The yards also help you tow the vehicle to their premises, and they dismantle it themselves. These buyers pay a reasonable amount because they do not resell the car in one piece but part it out to increase the value.

There are many options available to sell your wrecked automobile and get a good income from it.

Those with no or minimal knowledge about vehicles will be quick to think their car is worthless. However, many businesses thrive from buying and selling wrecked vehicles. In fact, some companies make millions from dealing with wrecked cars.

Scrap Metal Recyclers

This is where you will find many totaled and worthless old junk cars and dismantled parts. Scrap metal yards are where the majority of the damaged vehicles are sold by middlemen. Instead of selling your wreck to the middlemen who will resell it to the scrapyard, selling directly to the scrap yard will earn you more money.

Junk Car Auctions and Sellers

As earlier mentioned, there are many thriving businesses for totaled vehicles. There are salvage yards that deal exclusively with car parts they resell for reasonable prices.

These auctions and sellers prefer to buy wrecked cars and dismantle them for spare parts. It is easier and cheaper for them to buy whole vehicles than purchasing parts individually and reselling them. These buyers can be found in auctions or on their premises and offer competitive prices for damaged cars.

Insurance Providers

Upon getting into an accident and crushing your car, your insurance company may be the first entity you consider reaching out to. Mainly, people consult insurance providers to seek guidance on how to handle the situation.

Your insurance providing company will offer to buy that wrecked car you think has lost its value. Before you accept their offer, make sure the terms and conditions are clear before you agree to finalize the sale.

Insurance companies offer a low rate when buying wrecked vehicles, and they later sell them for profit. Buying the wreck saves these companies from paying the cost to cover the repair of the damaged car.

Repairing wrecked vehicles takes a lot of time and money. A quick and easy solution is to let the insurance company take care of it.

Junk Car Buyers

Selling your car at an auction may be tedious since you must have the car towed to the auction for buyers to view. You also have to pay a fee to attend the auction as a seller. Junk car buyers will buy your damaged car at a fair market value price since they are private entities or buyers.

The buyers usually resell the vehicle mainly when the vehicle can be repaired and resold for profit. When the vehicle cannot be fixed for resale, they sell it to a salvage yard to dismantle and share parts.

The value of something is seen by the person who has value for it. While a damaged car has no value to you, it may be of great value to someone else. This should be in your thoughts as you plan to sell your wrecked car.

The more someone wants your wrecked car, the more they are willing to pay for it.

This post originally appeared on Arrest Your Debt.

Many people dream of being financially stable and leading a comfortable lifestyle. This lifestyle involves buying fine things in life and traveling the world without worrying about getting broke. Essentially, this is what financial freedom entails.

This post lists the top 61 financial freedom quotes and the steps you need to achieve your own financial freedom.

What Is Financial Freedom?

So, what is financial freedom? Per MoneyFit, financial freedom means having sufficient investments, savings, and cash to fund your desires without having to work. In other words, you have enough income to pay for your living expenses.

With financial freedom, you can afford to do things you like and choose a career path you are passionate about rather than your choices being driven by salary.

Once you attain financial independence, you do not depend on others to survive.

The Difference Between Financial Freedom And Financial Independence

Financial independence and financial freedom are similar and often used interchangeably. To attain both financial independence and financial freedom, passive income is required. However, there is a slight difference between the two terms. Achieving financial freedom is a journey or path through several milestones. Financial independence is one of those milestones.

The 7 Stages Of Financial Freedom

1. Dependent Stage

There is nothing rosy about the dependence stage. If you are in a dependent financial position, you depend on others for financial support. At this stage, your expenses are more than your income. You start progressing through the other stages after you start earning a profit. However, you must be ready to work extra hard.

2. Solvency

Solvency or survival is a stage where your earnings exceed your expenses. Life starts to become easier when you can pay your bills and financial commitments. You no longer depend on someone else for financial support. Financial solvency brings psychological benefits because you do not suffer from the anxiety that comes with being late on bills.

3. Stable/Agency

Stability is the final stage of survival. In other words, you stop surviving and start thriving. This means you can live how and where you desire. When your income is more than your expenses, you can comfortably meet your financial commitments and pay off some of your debt, such as student loans and mortgages.

What’s more, you have extra income to start saving into an emergency fund or even a long term saving plan. Although you may not be debt-free, you are making a consistent contribution toward becoming debt-free.

4. Financial Security

Financial security means that your income sources can cover your necessary living expenses if you lose your job. Your savings and investments are enough to allow you to live everyday life. Even if you do not ever have to work again, you can afford to buy essential clothing, basic food, and housing.

To be financially secure, you need to create an emergency fund and start saving. This means you are building and managing your wealth and track to attaining financial freedom. It’s worth noting that an emergency fund alone may will not usually cover all your monthly expenses. It is, therefore, vital to have numerous sources of income.

5. Financial Independence

Financial independence is one of the milestones towards achieving financial freedom. At this stage, passive sources of income can support your current lifestyle. Besides basic needs, you can also afford some comforts.

Also, financial independence means you are completely debt-free. At this point, if you wanted to, you could retire and enjoy life without having to work again. Long-term investments in the stock market will help you achieve financial independence because they bring income in dividends, interests, and capital gains.

There are three primary goals in the financial independence stage:

Debt-free: You do not have any debts, including your mortgage. Living a debt-free or mortgage-free life means that the most significant monthly expenses are out of the way. This leaves you with more money to save and invest.

You can continue working, but only if the job is aligned with your ultimate life goals. This means that you do not work for money only, but for social and mental stimulation.

Advancing to the financial independence stage is sometimes tied to advancement in a new professional level. Instead of being an employee, you may opt to start a business or work part-time. You can also opt to go back to school and venture into a career path that can sustain you in your 70s. The main point? You no longer make compromises to make money.

6. Financial Freedom

After attaining financial independence, you will probably want to go a notch higher. Financial freedom is the lifestyle most people dream about. When you are financially free, you can afford high-end lifestyles such as flying first class or taking regular trips abroad.

At this milestone, your passive income is enough to support comforts and luxuries without worrying about the expenditures.

7. Abundance

Abundance is when investment income is more than you need. Passive income can finance your lifestyle indefinitely. Most philanthropists are in this stage of financial freedom. They can share their wealth, lead a luxurious life, and explore the world.

The more savings and investments you have, the more freedom you gain. Financial freedom helps eliminate fear and worry, enabling you to base your decisions on happiness rather than money. The progress arms you with smart money habits and skills to propel you to the next level of financial freedom and progress to the future freedom levels.

For instance, you learn to live on less than you make if you are working towards debt freedom. Also, financial freedom enables you to take more significant risks.

How Much Money Do You Need For Financial Freedom?

Because financial freedom differs for each person, there is no specific amount attached to financial freedom. Essentially, financial independence entails the freedom to base your decisions on things that make you happy instead of making you money.

If you’re dead set on wanting to know a number, you can calculate your financial freedom number by using the four percent rule. According to the rule, you can withdraw four percent from your investments annually without ever running out of cash.

For instance, if you have $100,000 in your account, you can withdraw $25,000 year after year without depleting your account.

For the subsequent years, increase the annual withdrawals by the previous year’s inflation rate. For instance, if the second years’ inflation rate is two percent, you only have to increase the $25,000 by two percent. Initially, four percent was applied to 30 years’ timeframes. However, more research shows it may work longer than 30 years.

How To Calculate Forever Financial Freedom

1. Add Up Your Savings

Add all savings, including savings account, checking accounts, retirement accounts, and taxable investment accounts. Do not include money planned to make purchases in the near future or college savings meant for children’s education.

2. Subtract Debts

The next step is to minus debts from the savings. To be precise, add all auto loans, credit card loans, student loan balances, and consumer debts. The remaining amount after subtracting debts from the savings is the saving available for spending. You should not include mortgages in the debts. The home value covers the mortgage.

3. Use The Four Percent Rule

The next step is to multiple your net saving and investments by four percent. The figure you get is the current investments that can support your annual income indefinitely.

For instance, let’s assume you have a total of $150,000 in your account and debts worth $50,000. The nets savings is $100,000. If you multiply the net saving by four percent, you get $4,000. This means that your saving can support an annual income of $4,000 for years on end until you die.

The Cost Of Full Financial Freedom

How much money do you need to attain complete financial freedom? Absolute financial freedom is the amount of money you need to sustain your life without ever working again.

Below is a step by step guide to determining the amount of money you need to attain financial freedom.

1. Add Monthly Expenses

Calculating the full financial freedom number also uses the four percent rule. The first step is to calculate your total monthly expenses, including rent, internet, groceries, mortgage, insurance, and car loans.

You can make adjustments by including expenses you plan to add in the future and remove expenses you plan to do away with. The adjustments enable you to have monthly spending that reflects your future vision and the reality of your needs.

2. Find Annual Expenses

Multiply the total monthly expenses by 12 (12 months) to get the total annual expenses. The next step is to subtract the total costs from income. For instance, let us assume the net income is $10,000. This means you are making $10,000 more than you need to survive.

3. Factor In Passive Income

One of the ways to attain financial freedom is having a passive income. Passive income caters to expenses without necessarily having to work. This means that your passive income should be equal to or more than your costs. Examples of ideal sources of passive income include rental properties, employer-sponsored retirement accounts, ROTH IRAs, etc.

What Is A Financial Freedom Number?

Your financial freedom number refers to the amount of money you need to satisfy your living expenses. In simpler terms, it is the amount of passive income you need to pay for daily expenses. This means you can live without a full-time job and enjoy life using income from passive investments.

While you don’t have to quit your job, you have the control and freedom to resign or retire if you desire. In essence, financial freedom instills you with confidence to make life decisions depending on your passions and desires.

How To Calculate The Financial Freedom Number

You can know your financial freedom number by calculating the average amount of your monthly expenses. Here is the step by step guide.

1. Figure Out Your Expenditure For The Past 12 Months

The first step is to calculate the total amount of monthly expenses in the last 12 months. Consider all the debt payments, donations, credit card statements, and bank statements, and any cash transactions. There are some automated tools such as YNAB or mint.com that can help you keep track of all your expenditures.

However, some people prefer doing it the old way by putting everything in an Excel or Google spreadsheet. I created an Excel and Google Sheet you can use to budget your money.

2. Find Your Average Monthly Expenses

Add the last 12 months’ expenses and find the average by dividing the sum by 12. This average monthly spending is your freedom number. If your passive income supersedes this number, you can live a financially free life.

After finding your financial freedom number, you can use the four percent rule to figure out how much more money you need in your investment accounts to be financially free. Alternatively, you can multiply your monthly expenses by 25.

For instance, if the total annual expenses are $40,000, simply multiply by 25.

Therefore, you need a portfolio of $1,000,000 to be financially free (1,000,000 x .04). In general, the financial freedom number is the amount you plan to spend each year and multiply by the number of years you expect to live. Don’t forget to factor in inflation.

How Does It Feel To Have Financial Freedom?

Without a doubt, finical freedom brings a feeling of stress-free living. If an issue crops up, you have enough money to fix it. Since financial consequences are the least of your worries, you can do anything you want without batting an eye.

A debt-free life with significant savings and investment can bring you joy. You don’t have to stay at a job you loath to earn a paycheck. When your finances are in order, you can enjoy better health, peace at work and home. You generally live a financially stress-free life.

To some people, the feeling is similar to landing the first job or admission to their college choice. Generally, financial freedom feels good and comes with its benefits.

Benefits Of Having Financial Freedom

Below are some benefits of achieving financial freedom. Let’s get started.

1. Health Improvement

Stress is linked with the leading six causes of fatalities in the United States. It causes health problems such as chronic back pain. Finances, including the activities and food we can afford, affect stress levels. Financial freedom can eliminate the stress that comes with not meeting your expenses and daily needs. Feeling healthy helps you to focus on essential things in life.

While money can’t buy you happiness, it gives you more control. Financial freedom gives you relief from anxiety tied to money. This means you do not have to worry about unexpected expenses. Financial freedom alleviates anxiety and stress by boosting a sense of stability and predictability.

2. You Are Not Afraid Of Losing Your Job

One of the biggest worries many people experience is getting fired from work. Financial freedom enables you to take control of your destiny and leave your job on your terms. If you are fired, you won’t worry much about where your next meal will come from.

Cash cushions give you a sense of resilience. This means you can bounce back stronger when faced with a disaster such as a family member’s health problem or death.

3. You Become Less Afraid To Fail

Failure is disastrous and even embarrassing. However, if your finance is in order, you can try numerous projects without fear of failure. Billionaires like Jeff Bezos can afford to experiment with multiple projects and entrepreneurship. Financial freedom helps eliminate fears so you can pursue action.

4. Feeling Of Fulfillment

If you are financially well-off, you can afford to take unique opportunities that many people can’t. The confidence to meet financial obligations using your saving enables you to choose how to spend your time. Essentially, financial freedom can make you more courageous and bolder. You can also afford to take a sabbatical leave from work, lead a healthy lifestyle, and quit a stressful job.

5. More Control Over Your Time

Financial freedom gives you control over your time to choose how to spend your time. For instance, some people would leave their profession to pursue other interests, given the opportunity. When your passive income covers all your expenses, the choice to leave your workplace is up to you. Therefore, financial freedom frees your time.

6. Enhanced Self Esteem

Financial freedom can boost your confidence and self-esteem. The feeling of accomplishment enables you to enhance your life aspects such as relationships and living life to your full potential.

How To Develop A Plan To Achieve Financial Freedom

Once you figure out your financial freedom number, the next thing is to determine when you want to achieve the goal. Making your goal time-bound is vital. It helps you stick to your plan and avoid an extravagant lifestyle.

Experts recommend establishing financial freedom mileposts at regular intervals. For instance, if your goal is to be financially free in the next ten years, you should attain half of the portfolio after five years.

Does the financial freedom number change? Well, your financial freedom number can vary significantly, depending on various factors. For instance, if you relocate to an area with a high cost of living, your financial freedom number will increase significantly. Similarly, the number can be affected by your cost of education in the new locality.

The good news is that passive income from smart investments increases with time. For instance, if you have rental properties, your passive income will increase significantly after paying the mortgages. The property values will also increase considerably over time.

Top 61 Financial Freedom Inspirational Quotes

These financial freedom quotes will inspire you and help you get on the path to living the life you deserve.

Attaining financial freedom is an admirable goal that can make you a respectable member of the public. It gives you the freedom to do things you love.

It is prudent to commit yourself to lifelong learning about methods of making money, especially passively. Also, you must tweak your mental and emotional intelligence in a way that helps you accumulate more wealth.

Specifically, you should go the extra mile in life to achieve financial freedom.

Manoj Arora Financial Freedom Quotes

1. “To achieve what one percent of the world’s population has (Financial Freedom), you must be willing to do what only one percent dares to do. Hard work and perseverance of highest order.”

2. “The struggle for financial freedom is very unfair. Just look at the rewards.”

3. “Financial Freedom is less about financials and more about freedom.”

4. “You can make excuses and earn sympathy, or you can make money and earn admiration. The choice is always yours…”

5. “You do pay a price for your financial freedom, but it is far lesser than what you pay for a lifetime of slavery.”

Robert Kiyosaki Financial Freedom Quotes

1. “Financial freedom is mental, emotional, and education process.”

2. “More important than how we achieve financial freedom is the why. Find your reasons why you want to be free and wealthy.”

3. “To obtain financial freedom, one must be either a business owner, an investor or both, generating passive income, particularly on a monthly basis.”

4. “Financial freedom is available to those who learn about it and work for it.”

5. “Financial freedom is freedom from fear.”

6. “Financial independence is about having more choices.”

7. “If you want to be financially free, you need to become a different person than you are today and let go of whatever has held you back in the past.”

8. “The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.”

9. “The key to financial freedom and great wealth is a person’s ability or skill to convert earned income into passive income and/or portfolio income.”

Suze Orman Financial Freedom Quotes

1. “When you understand that your self-worth is not determined by your net-worth, then you’ll have financial freedom.”

2. “A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.”

Dave Ramsey Financial Freedom Quotes

1. “Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”

2. “You must gain control over your money or the lack of it will forever control you.”

3. “I believe that through knowledge and discipline, financial peace is possible for all of us.”

4. “If you will make the sacrifices now that most people aren’t willing to make, later on you will be able to live as those folks will never be able to live.”

Jim Rohn Financial Freedom Quotes

1. “To become financially independent, you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn a profit into an investment, and turn the investment into financial independence.”

2. “Formal education will make you a living; self-education will make you a fortune.”

3. “To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment, and turn investment into financial independence.”

4. “If you are not financially independent by the time you are forty or fifty, it doesn’t mean that you are living in the wrong country or at the wrong time. It simply means that you have the wrong plan.”

Other Inspirational Financial Freedom Quotes

1. “Pursuing your passion is fulfilling and leads to financial freedom” – Robert G. Allen

2. “Financial freedom is the power to produce wealth and not necessarily having wealth.” – Stephen Covey

3. “Your economic security does not lie in your job; it lies in your own power to produce – to think, to learn, to create, to adapt. That’s true financial independence. It’s not having wealth; it’s having the power to produce wealth.” – Stephen Covey

4. “Real wealth is not about money. Real wealth is: not having to go to meetings, not having to spend time with jerks, not being locked into status games, not feeling like you have to say ‘yes,’ not worrying about others claiming your time and energy. Real wealth is about freedom.” – James Clear

5. “Working because you want to and not because you have to is financial freedom.” – Tony Robbins

6. “You either master money, or, on some level, money masters you.” – Tony Robbins

7. “The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more.” – Tony Robbins

8. “Money is a terrible master but an excellent servant.” – PT Barnum

9. “Financial fitness is not a pipe dream or a state of mind. It’s a reality if you are willing to pursue it and embrace it.” – Will Robinson

10. “Rich people believe ‘I create my life.’ Poor people believe ‘Life happens to me.'” – T. Harv Eker

11. “My definition of financial freedom is simple: it is the ability to live the lifestyle you desire without having to work or rely on anyone else for money.” – T. Harv Eker

12. “To get rich, you have to be making money while you’re asleep.” – David Bailey

13. “Wealth is the ability to fully experience life.” -Henry David Thoreau

14. “At least eighty percent of millionaires are self-made. That is, they started with nothing but ambition and energy, the same way most of us start.” – Brian Tracy

15. “Money is something we choose to trade our life energy for.” – Vicki Robin

16. “The goal isn’t more money. The goal is living life on your terms.” – Chris Brogan

17. “I don’t believe in spending money lavishly, now that I’m making money.” – Ansel Elgort

18. “If you’re saving, you’re succeeding.” – Steve Burkholder

19. “Financial planning and discipline is key to one’s financial freedom.” – Kishorkumar Balpalli

20. “Millions wish for financial freedom, but only those that make it a priority have millions.” – Oscar Auliq-Ice

21. “Whenever you find yourself on the side of the majority, it is time to pause and reflect.” – Mark Twain

22. “The speed of your success is limited only by your dedication and what you’re willing to sacrifice.” – Nathan W. Morris

23. “Every time you borrow money, you’re robbing your future self.” – Nathan W. Morris

24. “Financial security and independence are like a three-legged stool resting on savings, insurance, and investments.” – Brian Tracy

25. “The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” – T.T. Munger

26. “The secret to creating lasting financial change is to decide to pay yourself first and then make it automatic.” – David Bach

27. “Financial peace of mind is not determined by how much we make, but is dependent upon how much we spend.” – Marvin J. Ashton

28. “Money won’t create success, the freedom to make it will.” – Nelson Mandela

29. “The best thing money can buy is financial freedom.” – Rob Berger

30. “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden

31. “Too many people spend money they earned to buy things they don’t want to impress people that they don’t like.” – Will Rogers

32. “Whatever your income, always live below your means.” – Thomas J. Stanley

33. “You don’t need to raise money. You need to be smart and be focused.” – Mark Cuban

34. “Now I will tell thee an unusual truth about men and sons of men. It is this: That what each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary.” – George Samual Clason

35. “That man is richest whose pleasures are cheapest.” – Henry David Thoreau

36. “Wealth is not about having a lot of money; it’s about having a lot of options.” – Chris Rock

37. “Never depend on a single income. Make an investment to create a second source.” – Warren Buffett

Financial Freedom Tips

Financial freedom means having enough savings, investment, and cash to cater to your family’s needs. This means you can pursue what you want without necessarily being driven by a particular salary.

With the current economic conditions, most people are faced with emergencies, debts, and massive expenses that hinder us from attaining our life objectives. The good news is that you can achieve financial wellness by exercising certain habits. Below are some practices that will propel you to financial freedom.

1. Set A Life Goal

The first step is determining your life goal. What kind of lifestyle do you desire? The best practice is to write down how much money you plan to save. All these objectives must have a deadline. Setting financial mileposts at regular intervals helps you attain the ultimate goal.

Here is another crucial point. It is prudent that you write down your goals. Do you want to clear all your debts? Well, write that down. If your goal is to save for retirement, ensure you have that written down. Also, tie your plan to a specific number. Working towards a set target makes it easy to achieve a financial goal.

2. Understand Your Current Situation

Before you figure out how you will achieve financial freedom, you must understand your starting point. In other words, calculate savings and compile a list of your debts. Your savings include saving accounts, retirement plans, stocks, and your monthly payment.

Do not be demoralized by huge debts. Instead, develop a positive approach to how you view money. The biggest hurdle to making money is feeling like having it is bad. A negative view of money will subconsciously sabotage your chance of making it.

Money is more of a necessity, and you need it to achieve your dreams and help others.

3. Create A Budget And Adhere To It

Unregulated spending is one of the biggest threats to attaining financial freedom. You must create a monthly household spending plan and stick to it. A budget helps you live within your means by helping with saving money and paying bills on time. Without a clear budget, you risk becoming extravagant and recklessly wasteful.

A budget lists all your expenses and the amount of money you can allocate to each expense. When you become aware of how much you are spending, you can adjust your budget. For instance, instead of spending several dollars in the morning for breakfast, you can bring breakfast to work every morning and move the money you would have paid to your savings account.

4. Pay Yourself First

You have probably heard financial experts recommend that you “pay yourself first.” The whole idea is to put a specific amount in your savings account before paying bills and other expenses. If you develop a habit of paying yourself first, you will inch closer to financial freedom faster.

If the remaining amount is not enough to cover bills, you will be forced to get a second job or scale down on expenses. This helps to live within your means.

The good news is there are numerous ways to pay yourself first. For instance, you can have your employer deduct money directly and channel it into a retirement saving plan. This means you are prioritizing investing in your future. By paying yourself first, you budget for expenses and bills from the remaining amount.

5. Become Debt Free

Debt is the biggest stumbling block to financial freedom. For instance, credit card loans are among the worst kinds of loans and can attract up to 40 percent interest. According to National Public Radio, the total credit card debt of Americans is about $1 trillion.

If you are already in debt, develop a loan repayment strategy and put all of your extra money towards paying off your debt. Whenever you get cash in lump sums such as a bonus or money back from taxes, use this to make a significant impact on your total debt.

Paying your debts on time helps avoid sinking into more debt due to penalties and high default charges. After paying off a debt, you will feel like a massive weight has been lifted off your shoulders. You can sit back and watch your bank account grow.

Generally, taking out a loan makes other people rich. Avoid taking out new loans if you can avoid it. Loans such as mortgages and education tend to attract relatively lower interest rates. On the other hand, credit card loans can attract high-interest rates, which can drown you in more debts.

On the same note, you must monitor your credit. Credit reports determine the interest rate you get for car loans, credit card loans, mortgages, and insurance premiums.

Types Of Debt Repayment Plans

While paying off debts is not a glamorous undertaking, it pushes you closer to financial freedom. There are two ways to offset your debts, the Debt Avalanche and Debt Snowball methods. The Snowball method involves paying debts starting with the smallest. Avalanche methods involve paying debt with the highest interest rate first.

6. Save, Save, Save

Saving is quite a challenge for many people. If you have a problem with saving, consider registering for an employer-sponsored retirement plan. Your employer will automatically deduct part of your salary and move it into a retirement fund.

Going to retirement with debts makes it very hard to enjoy your golden years.

Also, your earning potential reduces significantly after retirement. If you start saving early, compound interest will work in your favor, so you will be in a good financial position when you retire.

7. Start Investing Early

Investing is the best way to grow your wealth. Start investing as early as you can. You can start with small amounts and watch the power of compounding to grow your wealth. Ensure you use a goal-based approach when planning how much you want to invest.

This approach helps to determine the amount you will commit to investments in your monthly budget.

8. Live Within Your Means

One way of achieving financial freedom is living within your means and mastering a frugal lifestyle. Frugality means making prudent purchases and managing possessions responsibly. It does not necessarily mean taking a minimalistic approach to life. Spending less helps you put aside more money towards your financial freedom plan.

For instance, Warren Buffett still lives in the same house he bought in 1958 for $31,500!

9. Prepare For Uncertainties

According to Murphy’s law, anything that can happen will happen. This means that at some point in life, you will be faced with a financial downfall. Unforeseen expenses can derail your financial freedom objective. It is crucial to prepare for emergencies by getting medical insurance and creating a contingency fund.

A contingency find helps to cover unexpected expenses. The goal is to have enough money to cover between three and six months’ expenses in your contingency fund. In case of an emergency, you will not have to dig into your pocket.

While experts recommend having $10,000, you can always start with a goal you can afford, especially if you do not earn a lot of money. You can have your bank deduct and move the money before it hits your bank account.

An automated contribution to a retirement plan is an excellent idea because you will not be tempted to use the money for other expenses. This ensures you have some cash you can tap into in case of emergencies and unanticipated expenditures.

10. Medical Insurance

With the rising cost of healthcare, lack of medical insurance is a setback in achieving financial freedom. Heath bills can rise quite fast and deplete your savings. Luckily, health insurance caters to medical bills. You do not have to use your assets to offset hospital bills.

11. Create Extra Sources Of Income

If you desire to attain financial freedom, you need to go that extra mile. A nine-to-five job might not get the work done. Financial experts recommend having about seven sources of income. These additional sources of income can be either passive or active.

Some of the side jobs that can earn you active income include freelance writing, virtual assistance, and ridesharing. On the other hand, some passive income sources to boost your earning include dropshipping, trading forex, investing in stocks, and affiliate marketing.

Steps To Become Financially Free

1. Figure Out Your Financial Freedom Number

One of the vital steps in achieving financial freedom is determining the amount of money you require to become financially free. You can use the four percent rule discussed above. Financial freedom number is the amount of money you need to pursue your passions and live freely.

With your current earning, what should you do differently to attain your financial freedom number?

2. Address Financial Fear

Limiting beliefs about money can affect anyone. For instance, some people think they can never be wealthy because they were born into poverty. Do you believe you can’t be financially free because you are not smart or talented enough? Once you figure out your limiting fears, replace them using assuring and empowering beliefs that you can achieve financial freedom.

3. Take A Deep Look Into Your Finances

Financial problems will not disappear into thin air because you are earning more. You need to take a hard look into your finances and see the messes you need to clean up. For instance, do you have credit card loans that attract massive interest? If you have debts attracting high interest, most of your earning will go into offsetting the loans.

Here is a good idea. If you get a bonus, use the funds to pay off your debts. After clearing debts, you will have more disposable income every month and more peace of mind.

What It Really Means To Have Financial Freedom

1. You Do Not Live From Paycheck To Paycheck

Many people live from paycheck to paycheck, meaning they can’t cater for unforeseen situations. According to a US household Economic wellbeing report, 40 percent of American households do not have enough finances to cover $400 emergency expenses. Building an emergency fund is the first step towards financial freedom. These include paying off credit card debts.

2. Enjoy Life And Save

Earning enough income to do things you enjoy and save brings a sense of relief. If you have money to enjoy life and extra cash to save, you are most likely financially free.

3. You Can Afford To Quit Your Job (Temporarily)

When you are financially free, formal employment becomes an option. This means that you can decide to quit your job or take some time off without worrying about financial consequences. While you do not have to quit your job, it is a great relief knowing you can quit any time you desire.

When you attain financial freedom, you can afford a sabbatical leave or extended vacation in a foreign country.

4. Freedom Of Time

Financial independence and freedom of time go hand in hand. When you have financial freedom, you are not trapped in the rat race. This means you can afford to follow your passion and spend more time with your family without having to worry about running out of money.

5. Enough Funds To Retire Comfortably

Some people detest their jobs and, therefore, can’t wait to retire as soon as possible. Financial freedom means you have passive income streams to pay your expenses and retire comfortably. For instance, you may dream of traveling the world after retirement.

To be financially free, you should save enough money to support your retirement lifestyle.

Final Word

Without a doubt, everyone desires to achieve financial freedom. Achieving financial freedom means that your passive income streams to support your current lifestyle without working another day in your life. The good news is that you can attain financial freedom by developing a savings plan, investing early in life, and living within your means. Ultimately, you will be able to enjoy a life you have always desired.

This post originally appeared on Arrest Your Debt.

Many of the top searches show outdated and non-working apps. This is the most up to date list of current money lockscreen apps that actually work!

Did you know you can earn money from your lockscreen during the process of unlocking your phone?

Locking your smartphone and computer is one of the most basic security steps you should take. You block theft and the leaking of your personal information by taking the time to set up a passcode or gesture to unlock your phone.

A usual passcode could be represented by a button command, performing a unique gesture, or entering a passcode. Locking your screen will stop an intruder from using your phone unless they can think of the passcode possibility. This is why most of us always lock our phones. It could be the difference between a major identity theft issue or just a stolen phone that the suspect can’t unlock.

Earning Money With Lockscreen Apps

What would you do if I told you there are monetary benefits that come with unlocking your phone?

Nowadays, humans engage with their phones at alarming rates. There is always some new app or entertainment resource that comes out so you can enjoy your bursts of serotonin. Now, every time you unlock your phone, there are features available that can be added to your phone that will earn you extra money.

This hack is for frequent phone users who are tight on cash with many mobile lockscreen apps available to choose from.

You unlock your phone dozens of times each day. Why not make money through your lockscreen?

In this article, simple lock screen money hacks and apps will be explained, rated, and analyzed. Complete all the steps mentioned to earn regular payouts through these current lockscreen apps that actually work.

Are Money Lockscreen Apps Available For Apple iOS?

Unfortunately, money lockscreen apps are only available for Android devices. Apple does not allow these types of apps to take over their lockscreens.

Pros And Cons Of Money Lockscreen Apps

As with any stream of income, it may not be perfect, but it’s free money. There are some pros and cons involved with using lockscreen apps that you should be aware of before starting.

Spoiler alert: the pros outweigh the cons.

The Pros Of Using Money Lockscreen Apps

The biggest benefit you receive is the passive income from unlocking your phone. There are not a million steps that you have to take, you simply unlock your phone and allow the funds to flow.

Another positive advantage of lockscreen apps is you are more than welcome to combine strategies to get more money. For an even bigger profit from your lockscreen, you could add survey apps and trial offers to increase overall profit.

This transforms your lockscreen into an advertisement platform. Your pockets and the business you are promoting will thank you. You can also download multiple apps in this list and run numerous lockscreen advertising apps on your phone at the same time. However, you will be required to open every single app when you open your phone.

By using more than one app, you can launch multiple passive income apps at the same time.

The Cons Of Using Money Lockscreen Apps

The limitation of lockscreen reward apps should be considered before downloading. There are some notable limitations involved with some of these apps that might discourage you from participating.

The most significant setback is the low payout. You will not get rich from unlocking your phone, but the extra money will add up if you allow it to. It could take you months to cash out your funds and for some people, it may not be worth it.

Another issue to consider is that some apps have an earning cap. You more than likely will not be able to sit at your desk and unlock your phone all day. Some apps have a limit to the number of times you can unlock your phone for cash, and some apps have a dollar limit.

Another problem you might encounter while using these apps is your phone battery will drain faster than without a lockscreen app. It won’t drain it in an hour, but it will make a noticeable difference. Battery loss also depends on how many apps you have running on your phone at the same time. Weigh out the pros and cons and see if this money move is the right one for you.

How Can You Get Free Money?

The first step is to download the lockscreen app of your choice from the app store and give the app permission to run advertisements through your phone. Frequently after you get the app set up, it will ask you to view a video advertisement for extra cash. You can opt to skip the video if you do not have the desire to watch it.

After the app is finished downloading, you need to sign up for an account to receive your earnings. You will provide personal and financial information for this step, so have it ready when the moment comes. Your money will primarily be generated on your lockscreen through ads displayed each day. Most of the time, this will be news that is trending at the moment so you can make money and be entertained.

The more you unlock your phone, the more points you will gain in your account. Those points are then converted into cash, donations, or gift cards. These are all options that will give you real money to shop at your favorite stores or donate to your favorite charity.

Most of the lockscreen ad apps mentioned in this article run surveys on your phone in addition to the advertisements. When using the apps, to get the credit, you are required to view ads or other promotional content when you unlock your phone.

6 Best Lockscreen Apps To Make Money

This list includes the top six money lockscreen apps that are currently active.

1. ScreenLift Rewards Lockscreen App

One of the most lightweight and fast money lockscreen apps is ScreenLift. Because ScreenLift does not drain your battery as fast as some of the other apps, this program is one of the favorites.

Payments from ScreenLift are paid to your PayPal account within a few business days.

For an additional bonus, you can use your personal referral link to earn extra cash.

How ScreenLift Works

1. Download the ScreenLift app and customize your lockscreen with the different themes available.

2. You are rewarded each time you “lift” the ScreenLift app off your phone’s first screen. You don’t need to read articles or open the advertisements to earn points!

3. The more points you accumulate by opening your phone with the ScreenLift app running, the more points you have to exchange for real cash or gift card benefits.

4. Each user is given a unique referral code and when your friend makes money, so do you!

2. ScreenKarma

ScreenKarma is one of the easiest screen reward apps available but the payouts are less than some of the other higher-paying lock screen apps. I would not use ScreenKarma as your primary app but it works well in conjunction with the others by running in the background.

How ScreenKarma Works

1. ScreenKarma requires an appKarma account. Download appKarma from the Google Play store first.

2. Reward points earned with ScreenKarma are combined into one total amount with appKarma points.

3. Unlock your smartphone screen by viewing ads and other promotional items to earn rewards you can exchange for cash and gift cards.

3. DooCash

DooCash rewards you when you complete tasks and earn free rewards. The tasks involve watching videos, participating in surveys, and playing games. Each action you complete rewards you with additional coins.

You can exchange the coins you earn for various prizes.

4. MYTOZ

MYTOZ is another lockscreen reward program that shows you ads for redeemable points. Their slogan is “Save doing nothing” which is fitting because you don’t even need to watch the full advertisement to get points.

You can earn points by watching ads on your lockscreen or you can open the MYTOZ app and shop through their discounted products.

How MYTOZ Works

1. They show you advertisements on your lockscreen or inside the app

2. Easily close the advertisements via the button in the upper left corner.

3. Each time you see an ad, you earn points.

4. Convert points to spend on deeply discounted products.

5. S’More

Is the S’More Lockscreen Legit? No, this is not the graham cracker, marshmallow, and chocolate combination that you roast over a fire in 30-degree weather.

The S’Mores app was created for Android users, and it pays you to view ads from advertisers trying to spread knowledge about their goods and services. It is a money rewards lockscreen app that partners with advertisement agencies.

The S’Mores app is on the list for one of the highest paying lockscreen apps, and it is a fun, quick, and easy way to generate extra funds for your pocket. You have the potential to earn $0.10 per day, which will add up pretty quickly to $3 a month or $36.50 per year.

The S’Mores app has been around for several years, and it continues to adapt to the times. It is continuously evolving and getting closer to becoming the quintessential money lockscreen app. S’Mores has the potential to be ahead of other money-making apps if they keep up with updates and new methods, and there are several ways to earn money on this app. You can complete surveys, view offers, or just unlock your lockscreen for extra cash.

All of the activities listed contribute to your revenue. The minimum payout is $1 in a day. While it’s not a lot of money with patience it will slowly add up. After you accumulate enough cash to redeem, you can cash out for an Amazon gift card.

This app is available to US residents only, but don’t worry, and there are lock screen apps out there for everybody.

How The S’more App Works

1. Content and advertisements are shown on your lockscreen.

2. Dismiss the initial ads by swiping up on your phone. If the ad looks interesting, you can click it for more information.

3. Earn points every day even if you don’t look at any ads.

4. Exchange your points for gift cards such as:

Amazon

AMC Theaters

Domino’s Pizza

Best Buy

Applebee’s

CVS

Target

GameStop

Starbucks

and more!

5. Each user gets their own unique referral code. Share this code with friends and family to earn additional points.

6. Slidejoy

Slidejoy is a simplified lockscreen app that can earn more money, passively, than the other options. Operating this app is easy. Swipe left or right to view advertisements or to view more information. The earnings made on this app are not dependent on the direction that you swipe on the app. So the amount of money earned once you swiped will not correlate with the direction you swiped.

On this app, Slidejoy receives income in the form of commission from an advertiser, and when you unlock your phone, you get a portion of the profit. You can either create a cash account or a donation account. The donation account goes straight to the charity of your choice, and the cash account goes straight into your bank account. It should be noted that you will not earn extra funds from clicking to view an advertisement. Only click on the things you have an interest in because clicking every ad will not earn you more money. Some bonus rewards come with using the app.

There is a $0.20 sign-up bonus and a 20% bonus for successful referrals for referring a new app user.

Slidejoy uses an advanced algorithm to pay users to have this app on their screen. You will not get paid every time you open your phone; however, you will see a constant increase in funds throughout the day. You should use your phone as you normally would and collect the free profit. It takes 24 hours for new points to sync with old points, and earnings will be based on your phone activity.

Screen swipes earn you $0.02 per swipe, and you can cash out at $1. Some people download the app and make $0.10 per day, and others make $0.50. Balances are updated every day at 7:00 pm.

How Slidejoy Works

1. Download Slidejoy to get started

2. When you access your lockscreen, you will be shown a promotion or news article to view.

3. If you slide up on your lockscreen, additional news stories will be shown to you.

4. If you slide right on your lockscreen, your phone will immediately be unlocked to your home screen.

5. If you slide left on your lockscreen, you will get more information about the ad or news article on your phone.

6. If you slide down on your lockscreen, you will access your usual notifications and shortcut menu.

*The more ads you look at will not earn you additional rewards.

7. Exchange your reward’s known as “Carats” for gift cards. The gift cards available are:

Visa Prepaid Card

Steam Wallet Code

Walmart

Google Play

Amazon

and more!

*1,000 Carats = $1

Money Lockscreen Apps That No Longer Work

Don’t be fooled into downloading a third-party app from an obscure website that promises earnings from lockscreen apps that are no longer supported. These apps no longer have technical support and in addition to being a waste of time, you will not receive money from them.

1. SurveyCow Lockscreen Rewards [no longer active]

SurveyCow provides unique ways to obtain money that slightly differs from competitors. The app offers a one-question survey that pops up on your phone before unlocking. You are rewarded with “beef points” converted into cash through Paypal. It should also be noted that this app pays more than the S’Mores app and is more interactive. Your pay depends on how frequently you unlock your phone per day, giving you more opportunities to earn more than the other money lockscreen apps.

The minimum payout for SurveyCow is $10. When you get to 10,000 points, you can receive your prize through Paypal. SurveyCow is one of the more higher-paying lockscreen apps for building up passive earnings.

You can always disable the app on your phone if you need a break and then enable it again when you want to start earning money.

To check the number of “Beef points” you have, go to the settings page to stay up to date.

SurveyCow is available in the US, Puerto Rico, Canada, UK, and Australia.

2. BillsBoard Lockscreen App [no longer active]

The BillsBoard Lockscreen App has the same concept as other lockscreen apps on the market. When you sign up for this app, you give control over your phone’s lockscreen to BillsBoard. It shows video advertisements that you can close if you want to bypass them. This app shows news stories and product ads that pay your rewards. There is a $10 minimum payout to redeem your cash from your account.

There are several ways to redeem money from this app. You can get Amazon Gift cards, a direct withdrawal from Paypal, Google Play Store credits, and transfer credits to be sent to a Zap Surveys account.

3. Sleep Money App [no longer active]

The Sleep Money App earns you funds for allowing the app to put material on your phone’s lockscreen. This app, just like the others, acts as a money rewards platform. You get cash rewards and points that you can later redeem for gift cards. The app is free, and it allows you to make money almost instantly. This is great for people who want to make money now.

When you use the app, you get a reward in “Sleep Money Coins” that you convert into redeemable cash. For example, you can redeem 20,000 points (10,000 points = $1) for $2.

Some of you may be wondering, “Why is this called the Sleep Money App?” A unique feature of this app is you can earn money while sleeping. The app runs on your phone and generates income even when you’re not using it. You can also earn extra points through the app by completing paid surveys, watching amusing videos, and trying various other recommended apps on your phone.

There are now more ways to earn money than unlocking your phone. This is one of the easiest ways to make income from your phone.

4. Whaff Locker [no longer active]

Whaff Locker is a very unique and well thought out lockscreen ad app. After you install this app, you have the option to choose premium picks (app downloads), view lockscreen earnings, and you can observe WHAFF Picks, which are additional downloads.

User Interaction Requirements

Each advertising method tells you how much you will be paid if you complete it. The app enables each user to turn points into cash. Right now, this app pays $0.01 per swipe. Your payout can be redeemed for an Amazon Gift Card, Bitcoin, Paypal Cash, Steam cards, etc.

Whaff Locker requires earnings of $11 or more to cash out your funds.

5. Mint Screen (previously Fronto) [no longer active]

The Mint Screen app, previously known as the company “Fronto,” is a simple app you can begin using immediately. You can swipe left or right to unlock the phone and make money. When you swipe left, an ad will show up on your phone, and when you swipe right, your phone will open up naturally. Points earned on this app depend on action from your phone. How much effort and how many ads you choose to view counts towards how much money you make.

6. Adme [no longer active]

Adme allows you to earn rewards and points from unlocking your phone screen, and it is very similar to the S’Mores app. However, this app is the longest-running lockscreen app that is available to Android devices.

It also presents you with a colorful background wallpaper every day to decorate your screen and earn you cash. This app is for US residents only, just like the S’Mores app, and it also features news that is trending for the day, just like the S’Mores app. Thousands are using it for a reason.

The remarkable thing about this app is that it offers three different modes. The three modes are Fullscreen Ad, Content Feed, and Double Screen Feed +Ad. All of these modes are designed to achieve similar results, but they do come with their differences. Text feeds are also included in this app for extra cash. The mode that gives you the best rewards is the Double Screen Feed+Ad. However, this mode requires more interaction than the other methods but yields the most prizes.

You get balance updates every 24 hours and you have the potential to earn $0.10- $0.20 per day. Your funds can be sent to your Paypal account as soon as it reaches $10. You do not have to have any ad interaction to gain rewards’ and this will not affect how much money you make for the day. Adme also comes with a quick launch option so that you can immediately open your favorite apps.

To earn money, you can read an article, unlock your phone, download an app, or follow the company’s social media page. Product surveys are not an option for income on this platform, and this is a good thing for people who hate taking surveys for cash.

Unlocking your phone earns 30 points and 3,250 points=$1. In addition, there are daily bonuses of 100, 500, or 1,000 points when you open your phone.

7. Screen Stash [no longer active]

8. Perk Screen [no longer active]

9. Screen Pay [no longer active]

10. MooCash [no longer active]

Conclusion

Generating income from lockscreen apps is a fantastic side hustle idea, and during times like this, every household could use some extra income.

Before you download your first lockscreen app, understand that this method of earning extra income will not make you rich. It might seem like you are watching paint dry while waiting for your payment to increase either by dollars or by points, but what do you have to lose?

These passive income options are suitable for a $5 gift card each month. However, five dollars add up quickly when you consistently use these apps.

Understand that the more apps you have on your phone at once, the more income you will generate. Having only one app could take you forever to accumulate $10, but with multiple apps, you will hit that limit in no time.

Technology has come to the rescue once again. It has brought another way to make easy money with minimal extra effort.

Download a lockscreen app today and try it out for yourself. You could make an extra 200 dollars a year or around $15 a month using these apps to unlock your phone.

This post originally appeared on Arrest Your Debt.

With the pandemic, more and more people have difficulty making ends meet, but that does not mean you have to sit there and struggle. While not everyone can just go out and get a better job, there are plenty of ways that you can still supplement your income with a part-time weekend job.

Weekend jobs are an excellent way to make a little more (or a lot more) money depending on what you can do and how much time you have available. To help you figure out which job opportunities are right for you, which ones are available, and how to find the perfect weekend job, we breakdown this often overlooked form of employment.

What Is A Weekend Job?

While the name might seem kind of obvious, not everyone has the usual schedule of working Monday through Friday with weekends off. Your weekend could be Tuesday and Wednesday, which actually may offer more options for a great part-time job. While most people may think of a weekend job as one done on Saturday and Sunday, it generally refers to a particular type of part-time employment.

Keep in mind that while a weekend job is often a part-time job, a part-time job is not always a weekend job – much in the same way that a square is always a rectangle, but a rectangle is not always a square. A part-time job is any job where you are classified as an employee or contractor and work less than 30-hours a week (for most fields).

However, a weekend job tends to require less than 30-hours a week and may actually be used to supplement one or more other part-time jobs. In this way, a weekend job is probably better understood as a job where you work less than 24 hours a week, generally for three days or less.

That said, there is no legal definition of “weekend work” the same way there is for part-time and full-time jobs, so the answer will differ depending on who you ask. Still, if you work 4 to 5 shifts a week for four or more days, you are likely not working in what most people would consider a “weekend job.”

Types Of Weekend Job Schedules

Generally, weekend jobs come in two primary forms: traditional jobs and part-time gigs you work in the morning, evening, or any other time you have spare time. A traditional job is when you are a full-time employee and are accountable to the employer while working.

On the other hand, a gig rarely labels the people who work for them as employees and tends to label them as independent contractors. While this designation comes with some drawbacks regarding compensation, liability, and risk, it also comes with the benefit that the employer is not technically your boss.

As such, someone working a gig cannot technically be fired from their job as much as the employer can simply refuse to extend the contract. One of the drawbacks of this arrangement is that an employer does not need a justified reason to refuse to sign an employment contract and can stop your employment at their discretion.

It is also worth noting that traditional jobs come with some kind of guarantee in terms of the number of hours worked and the pay received. Many gigs either require you to set your hours and find your contracts or rely on using their platform to take whatever jobs are available at the time.

Who Are Weekend Jobs For?

While the classic idea of a weekend warrior might be a college student, even a business owner, especially one who owns a small business, can benefit from a weekend job. In this instance, it is more about making sure that the job description fits your skillset and that the income potential justifies the additional labor.

As much as working at Target and getting their rewards program might be nice, chances are it will not justify the cost of your time and energy. Technically, weekend jobs are for anyone who has a chunk of time that they are not otherwise using and would like to make extra money on the side.

Pros And Cons Of Weekend Jobs

Before you run out and apply for a part-time job on your days off, be sure to evaluate the benefits and drawbacks of the different choices available.

Benefits

Money

Let’s be honest with ourselves and admit that the primary reason anyone picks up a weekend job is to make more money. Granted, different people will want or need that money depending on their circumstances, but it does not change the fact that one of the best things about a weekend job is that extra cash.

However, depending on how much extra money you need and when you need it will determine how selective you should be with your search. If you already have a highly sought after skill set, it might not be a bad idea to wait for the right weekend job – even if some seem good on the surface.

On the other hand, if your full-time income does not pay enough and you need that additional cash just to make ends meet, a weekend job can be a lifesaver. That said, this situation is less likely to afford you the luxury of waiting until the right job opportunity comes your way and may force you into a first-come, first-serve basis.

It’s worth noting that many weekend jobs can pay significantly more than you might expect, especially those that require sought after skills. In this instance, you may very well be able to find an entirely new career avenue should your skills and the market align such that you can turn your weekend job into your new full-time job.

Planning

While the money is nice, it is worth noting that weekend jobs require a lot of work to manage properly, and this is on top of the additional work you have to do for the job. A weekend job will drastically eat into your free time, leaving you in a crunch for scheduling other activities in your life.

That said, those people who can make weekend jobs work often develop the ability to plan for a multitude of different situations, multi-task, and shift gears on a dime. While this ability may be borne out of necessity, it does not change the fact that it can be applied to the overwhelming majority of your life.

After working weekends for a long enough period, the chances are that scheduling tasks and managing obligations that might stress other people out will not even phase you. Aside from the fact that this is a great skill to possess, it can go a long way in making your life generally more comfortable and stress-free.

It is also worth noting that planning well and managing a hectic schedule is also one of the best management skills for someone in authority. As such, taking on the extra workload of a weekend job can not only provide its benefits, but it can help prepare you for bigger and better things down the line.

Skills

With the economy and workforce changing quickly and rapidly, it can feel like the world is passing you by with no way to catch up. This is an area where a weekend job can come in handy as it may allow you to learn entirely new skill sets, depending on the job.

Granted, most weekend jobs will require that you already have some basis in the desired skill set ahead of time, or else, why would they hire you? However, once you are on the job, there is a good chance you will have the opportunity to learn a whole slew of additional skills depending on your initiative.

Beyond being able to pick up new skills on the fly, weekend jobs also provide you the opportunity to hone other skills you may already possess. In this instance, you can use a weekend job to help you train for a new job entirely, using a slower pace to ease you into the skill set rather than having to try and absorb everything all at once.

It is worth noting that even when a job lists a given set of skills required to perform its responsibilities, there are inevitably many more skills needed along the way. On top of that, whatever obligations a job advertises, the job will almost certainly add more, so look for opportunities to expand your repertoire.

Passion

Many people end up at their full-time job as a matter of chance and circumstance rather than the ability to truly control their destiny. While that is not inherently bad, it can often leave many people feeling their life is meaningless, or they do not control their destiny.

Because of this, many people often turn to their free time to engage in the things they are genuinely passionate about. These part-time hobbies or jobs can turn into more than just a hobby. If you are willing to put in the work, it is possible you can take your passion and turn it into a weekend job that brings in a significant amount of cash.

If you are successful enough at your passion on the weekends, you may then be able to transition that passion into your full-time job. They say that a person who loves what they do never works a day in their life, and there is no reason you cannot follow that to its conclusion.

Keep in mind, many people may have a passion without realizing what it actually entails, so be prepared to roll with the punches and accept the good with the bad. On top of that, it might take some time to figure out how to market your passion before it starts making decent money. Using your free time on the weekend is the perfect time for that experiment!

Entry

As much as finding your passion and making it your full-time job can increase your overall happiness, many fields have an exceptionally high entry barrier. Often, if you do not already have the proper connections or certifications, it can be difficult to impossible just to get your foot in the door.

However, most weekend jobs are not high-level and do not necessarily require a degree of skill, classes, certification, or connections to obtain. That said, once you are part of the company or field that focuses on your passion, you can use that opening to get everything you need to move up the ladder.

Granted, there may come a time where you have to make a difficult decision regarding whether or not your weekend job remains just a “weekend job.”

Though, if the alternative is moving up in a company where you can do something you are passionate about, that is likely not much of a choice at all.

On the other hand, if you are just interested in working for a given company or in a given field, a weekend job is still a great way to gain entry without necessarily competing for full-time positions. Just make sure that once you have your foothold, you take advantage of it and make use of every opportunity at your disposal.

Experience

While weekend jobs are a great way to help develop skills and gain entry into a challenging field, the company may often offer you more responsibilities and a permanent position if you show competence and dedication. This harkens to the old joke that you cannot get a job without experience but cannot get experience without a job.

Thankfully, this is another area where a weekend job can help you obtain the necessary qualifications and requirements for the job you want rather than the job you have. Even if you start in an entry-level position, there are likely numerous ways you can use that opening to gain experience for other jobs.

While some people may hate taking on additional responsibilities at their job, a weekend job with little investment is a great place to take risks – assuming you do not rely on the income to survive. In this position, you can enjoy the relative safety and freedom to try things at a weekend job that would put you at risk at your full-time job.

Of course, even then, a weekend job can simply help add to your resume for another, better job if it is related. Even if you are not necessarily chasing the job of your dreams and simply would like to find something better full-time, a weekend job may provide the resume clout to help you advance at your traditional full-time job.

Networking

A common phrase that people say is “it is not what you but who you know that counts,” which might seem disheartening for someone looking to break into an otherwise insular field. Once again, the weekend job can help you gain entry into the field and introduce you to more people.

Depending on the job in question and your ability to network, you can use a weekend job as an avenue for obtaining a completely secondary set of networking contacts. The value of this is immeasurable as it may not only help you get a job in the field you are passionate about but can open doors you never even knew existed.

Be mindful that if you spend more of your time and energy trying to network at your weekend job instead of working, you are liable to set a bad impression and ruin those networked connections altogether.

Still, weekend jobs present plenty of opportunities to bridge the gap between the people you know and those who can help you get to where you want to be.

Flexible Schedule

Since a weekend job should only occupy your spare time, making sure you can work when you have extra time is an important factor. Thankfully, most side hustles and gigs allow you to work when you want, with most even allowing you to choose which jobs to take and what tasks to do.

Drawbacks

Don’t sign up for a part-time job until you know the potential drawbacks of this employment type.

Extremely Tired

This is easily the biggest and most common issue people with weekend jobs face because it does not matter what kind of person you are; everyone needs some time off to rest and recover. Many of the potential drawbacks of a weekend job will hit some people more than others, but no one is immune to the relentless grind of a 24/7 workweek.

Keep in mind, you are likely more than capable of surviving this way, but that does not mean you will enjoy your existence if you always feel run down from the moment you wake up until the moment you go to bed.

A constant grind can also have larger impacts on your overall health, making this drawback a top priority. If you already struggle with a severe health issue, a weekend job may not be the best idea since it could lead to further complications down the line. That said, even otherwise healthy people can expect to see some kind of decline in their overall health if they maintain a long workweek over a period of time.

Unfortunately, there is not that much you can do about the amount of time you have at your disposal, depending on the weekend job you take. The best you can do is hone in on your planning skills to ensure you find a way to fit some time for relaxation into your already packed schedule.

Difficulty Scheduling

Speaking of a packed schedule, while developing exceptional planning skills might be one of the primary benefits of a weekend job, they are as much of a necessity as anything else. If you consider many people require at least an hour to run serious errands with many trips requiring far more, the amount of time you have available can be dishearteningly short.

For whatever personal conflicts this may present, the fact you have so little time can make maintaining your life significantly more challenging. Working a weekend job may make it difficult to find convenient times to buy groceries, get a haircut, go to the doctor, and a whole host of other errands that most people take for granted when scheduling.

Depending on whether your “weekend job” simply turns into a robust part-time job or not, you may find yourself in such a time crunch that you regularly skip meals. As inconvenient as this can be on its own, it will only exacerbate the potential drain you feel from continually working.

The best thing you can do in this situation is making a point not to get stressed out, as not only will that not solve the issue, but it will likely impede your ability to accomplish those tasks in the first place. As if that were not enough, those increased stress levels will also add to the general grind of your workweek.

Lack Of Entertainment

There is no getting around the fact that all work and no play makes everyone dull, but this issue is exacerbated when you do not have any free time because of a weekend job. This is where you will definitely need to put those hyper-developed planning skills to good use, as your options for entertainment will be somewhat slim.

For starters, there is a pretty good chance that you will either need to have or develop some friends with a lot of free time or learn to enjoy doing things on your own. Since you will be working when most people have their time off, the chances are any entertainment you find will often be engaged alone.

However, flying solo is not the only concern here as the sheer number of different events shrinks dramatically when you pick up a weekend job – the time of the week when the biggest events are scheduled. As such, it might not be a terrible idea to look outside of your traditional interests to see if something less popular sparks your interests.

Not only will this increase the number of potential events at your disposal, but it will also help you find events that do not rely on large crowds to find their niche. Thankfully, your well-developed planning skills should provide plenty of ability to figure out what events occur in your area that coincides with the diminishing amount of time you have.

Bored With Life

This issue may seem somewhat similar to entertainment, but the larger concern here comes with losing general interest. No one will be interested in their job all of the time, but once everything you do becomes work, it can be easy to simply lose interest in everything all together.

When one day blurs into another in a never-ending stream of work, it can often seem pointless to live just to work. Ensuring you find time to rest and engage in activities is a big part of keeping your general interests, but you can also look for alternative methods.

For instance, if you pick up a gig as your weekend job, try to figure out which ones do not require you to work a minimum amount and that you can simply pick up or put down at your discretion. When you find yourself losing interest in one gig, find another you are qualified for and interests you.

Even if it might not seem like something you would otherwise be interested in, it is worth giving these kinds of gigs a shot for at least a couple of weeks just to see. It can also help break down the tasks, identify smaller goals within their completion, and figure out how those tasks can be done better.

Feeling Lonely

As alluded to prior, working a weekend job means that when most people have time off, you are busy working, making it challenging to find time to socialize. However, humans are innately social creatures who desire and require social interaction to stay healthy.

If your 24/7 workweek constantly leaves you without anyone to socialize with, this can be more than a bummer and move into potentially dangerous territory. Granted, this is one of the drawbacks that will impact some people more than others, with introverts likely feeling the sting a bit less and extroverts suffering far more.

One way to alleviate this issue is by explicitly broadening your social network, which can be accomplished by picking up a hobby (which will also help with entertainment). You may be surprised to find out how easy it is for an adult to make new friends if you just put yourself out there in a situation that is not awkward.

If you are not as interested in randomly meeting people in person, there are many online methods you can make new friends and socialize. Whether you want someone to talk to, exchange messages with, or even meet up with in person, there are many different forums, communities, and social media sites that actively facilitate connecting people with similar interests.

Increased Taxes

This is another issue that depends more on the individual in question and the various jobs they work, but a second job may end up not worth the time and effort. The main reason for this is that a second job is only as good as the money you get to take home with you.

However, if your weekend job pushes you into a higher tax bracket, the amount you get to keep may be significantly less than if you manage to stay just below the next tax bracket. Granted, this can be a tricky proposition since you may not know how close you are to moving into the next tier.

On top of that, you may not necessarily have the luxury of taking a sabbatical with your weekend job should you edge closer to the next tax bracket. That said, moving into a higher tax bracket is not the only potential issue depending on the kind of weekend job you take, especially if you opt for a gig.

Most gigs do not label the people who work for them as employees and instead label them as independent contractors. While this comes with the added benefit of schedule and task flexibility without the worry of being fired, it also means you need to file taxes every year or quarter with a 1099-NEC on top of your yearly W9 for your full-time job.

Lack Of Benefits

Few weekend jobs are the type that will provide any kind of benefits, even if you are registered as an actual employee instead of an independent contractor. The main reason for this often comes down to the amount of time you work at your weekend job.

Basically, employers are not required to offer their employees any kind of benefits such as health care and retirement plans unless they are full-time employees, and most of your weekend jobs will not qualify as full-time. Of course, if you already have a full-time job that provides a robust benefits package, the absence of benefits with your weekend job may not be that big of a deal.

On the other hand, if you are looking for a weekend job not as a source of disposable income but supplementary income, it may weigh heavier. This is because most jobs that do not pay enough are also unlikely to provide significant benefits, making this absence sting a bit more.

Lack Of Advancement

Our last drawback is another issue that will matter more to some people than others. Many people are completely content to work their weekend job for the extra income without concerning themselves with the corporate ladder. On the other hand, if you are using a weekend job to break into a new industry, you may find the results less than stellar.

Because weekend jobs are often entry-level and do not place the same kind of workload on the employee as a full-time job, employers are disincentivized to advance you. Keep in mind, the term “lighter workload” is entirely relative here as many employers often see part-time employees as expendable and pile on as much work as they can.

This does not even cover gigs, which are a whole different ball of wax, considering you are not even technically an employee in the first place. That said, it is often easier to advance in a part-time gig than it is at a traditional job, given that most gigs pay based on your performance, ability to market, and time put in.

Even if you only work your side hustle on the weekends, you can still attract plenty of high-paying clients with exceptional work, create an excellent reputation, and build a solid marketing strategy. For those working traditional weekend jobs, once you have enough experience, it might not be a bad idea to transition to that field full-time if you are looking for advancement opportunities.

Where To Find Weekend Jobs

These days, whether you are looking for a traditional job or a gig, the best places to find them are online. In terms of conventional jobs, some of your best options can be found on websites like Glassdoor.com, Indeed.com, Ziprecruiter.com, Monster.com, and FlexJobs.com or social media apps like Linkedin or Facebook.

On the other hand, if you are more interested in a gig, you will likely have to download or sign up for each service’s particular app. Keep in mind that many gig fields offer multiple different services, so make sure you do your research when choosing the one you want to work with – especially if they have exclusion clauses that bar you from working with competitors.

How To Work Weekend Jobs

Rather than list all the different things you might need to know to perform any given weekend job, this refers to how to mitigate some of the drawbacks we listed earlier. In fairness, some disadvantages cannot be changed without finding a different weekend job, but some of those drawbacks apply regardless of the job you work on weekends.

Arguably one of the most significant issues that people with weekend jobs face is burnout, where you ultimately run down from not taking any time off to recover. This is one of the more likely and common things you need to address when working extra, and you should plan how to avoid it before taking that second job.

Whether you want to look at this from an entertainment, interest, socializing, or just plain energy level perspective, burnout is by far the main thing you need to worry about. A big part of what makes this issue so important is it can impact your ability to perform your full-time job, putting your entire livelihood at risk.

That being the case, making sure you find small blocks in your schedule of at least a few hours multiple times a week is paramount. Thankfully, one of the main benefits of working a weekend job is scheduling, allowing you to identify when the best opportunities for relaxing and recharging would be.

What Are the Best Gig Economy Jobs and Apps?

Given how popular the gig economy has become, it is worth considering which of the apps are the best for those looking for a weekend job. While not all of these apps can provide many of the benefits we outlined above, we think they are great ways to help make some extra money regardless of who you are.

Keep in mind that gigs almost always label you as an independent contractor, which comes with its particular benefits and drawbacks, as discussed above.

1. Uber

2. Lyft

Both of these apps put you in a chauffeur or taxi driver position and are top-rated gigs for both contractors and consumers. One of the best things about these apps is that the demand is so high that you can often always find work outside of extremely late at night – depending on your city’s location and size.

3. DoorDash

4. InstaCart

5. Postmates

6. TaskRabbit

7. Amazon Flex

8. GrubHub

9. Shipt

Regardless of the app or company, these gigs’ main task is as a delivery driver. You may be delivering prepared food, groceries, or packages. Like the chauffeur services, delivery gigs can earn a bit more as tipping is expected (or they simply pay higher), but your hours of service are also often more limited.

10. Rover (pet care)

11. Care.com

These two are the primary caregiving services, though they are significantly different as Rover covers pet sitting and Care.com covers in-home hospice. Both of these can pay exceptionally well once you get a good reputation and plenty of experience, but they also require a bit more self-marketing than others.

12. Upwork

13. Freelancer.com

14. WriterAccess

15. TextBroker

These sites cover many more creative fields, like writing content, video content, graphic design, and audio/video editing. You can make plenty of money on these sites, but they are incredibly competitive and require just as much marketing as creative talent – if not more. Still, being a ghostwriter for a blogger or niche website can provide a steady income if you have the expertise. That said, it only makes sense that these are also often great sources for freelance marketers and assistants.

16. Toptal

17. Fiverr

18. Xteam

If you are a technical professional or someone with coding experience, weekend jobs can bring some serious money. These apps are some of the best available for not only finding technical jobs but ensuring that you are well-represented. One of these sites’ primary benefits is that they do not require quite as much self-promotion as some of the other fields on this list.

19. Swagbucks

20. Survey Junkie

21. Opinion Outpost

22. Prize Rebel

23. Inbox Dollars

While not technically a weekend job in any capacity, we feel these types of programs deserve an honorable mention as plenty of people use them to bring in extra cash. They do not bring in that much money, but they also require significantly less time and energy than most weekend jobs.

Other Top Weekend Jobs You Might Not Think Of

24. Wedding Photographer / Videographer

25. Tutor

VIP KID – tutor website that connects tutors and students

26. Handy Man / Woman

Thumbtack – connects customers and handymen/women

27. Mercari Seller

28. House Cleaner

Tidy App – connects customers and house cleaners

29. Blogger

30. Traslator

31. Transcriber

32. Part-Time Nurse

33. Bartender

34. eBay Seller

35. Amazon Seller

36. Amazon Workforce Staffing

37. Beverage Cart Attendant

38. Data Entry Position

39. Home Health Aid

40. Tax Preparer

41. Cashier

42. Wedding Musician or Disk Jockey

43. Golf Caddy

44. Food Preparer

45. Restaraunt Cook

46. Customer Service

47. Instructor (i.e. Weekend Ski Instructor, Yoga Instructor)

48. Tour Guide

49. Concert Venue Ticket Taker

50. Real Estate Agent

51. Virtual Assistant

52. Personal Assistant

53. Personal Trainer

54. Pinterest Manager

55. Pooper Scooper

56. Sign Spinner

57. Pool Cleaner

58. Caterer

59. Party Bus Driver

60. Referee

61. Restaraunt Waiter

62. Restaraunt Dishwasher

63. Personal Trainer

Conclusion

In the end, the best weekend jobs will be different depending on your needs, skills, and circumstances, but there is almost certainly an option that is right for you. Even if you have a good job but are stuck in a rut, a weekend job can be just the thing to help you start a new career that you are genuinely passionate about.

Of course, you need to figure out whether you want to be your own boss (and accept all of the drawbacks that come with it) or get a more traditional job. That said, this article should provide plenty of resources and information to help get you started on your journey to making more money and living a better life.

This article originally appeared on Arrest Your Debt.

There is an old meme floating around the internet that draws attention to the fact that public school systems are quick to teach you that the mitochondria are the powerhouse of the cell. But they fail to teach you more practical information that you actually need in your daily life – like which budget categories you need to plan out your money.

Making a financial plan can be intimidating, especially if you do not know all of the essential budget categories you should include. To help account for at least one absence of the public school system, we put together this article that breaks down how to budget and what to budget for as an adult.

What Is A Budget?

While it might seem obvious, a budget can mean different things to different people depending on how financially literate they are. Someone who owns a small business thinks of a budget differently from someone who works a 9-to-5 job.

Both previous examples will have a different idea of a budget than someone who has to work multiple part-time jobs a week just to make ends meet. That said, the primary feature of a monthly budget is a detailed catalog for tracking net income (after-tax income) and expenses.

Why Do I Need A Budget?

Even if you keep track of your income and fixed expenses, a budget is still an important thing to have for a couple of reasons. The most obvious reason to make a budget is so you are never caught off-guard with more bills than money throughout the month – especially towards the end of the month or right before you get paid.

However, even if you already do an excellent job of not overspending during the month, keeping a budget can still provide long term data regarding your spending habits as well as a snapshot of your priorities. Not only can this help you plan for even longer-term purposes like retirement, but it can inform you of what expenditures truly make you happy and which ones you might be able to leave by the wayside.

How Do I Make A Budget?

This question may seem simple on its surface, but once you sit down to plan a budget, it can quickly spiral out of control, leaving you confused and overwhelmed. If you do not approach it correctly, planning a budget can feel futile once you see all of your income, expenses, debt, and financial goals laid out in front of you.

Considering the budget categories we present in this article, one budgeting method we suggest is that you download my monthly budget spreadsheet or use a budgeting app like Mint or another high-end competitor.

Granted, there are plenty to choose from, so you should likely do as much research on the budgetary app as you do on making your budget. Especially since not all of the apps work the same and different apps best serve different budgetary needs.

K.I.S.S.: Keep It Simple, Silly

One mistake that people often make when first planning a budget is to consider each and every budget item that they tend to purchase over a given time and try to fit it into an itemized list. While that is undoubtedly a thorough (arguably exhaustive) way of going about it, if you think in such granular terms, there is a good chance you do not need any help making a budget in the first place.

A better approach is to group all of your purchases into categories. Breaking them down makes them easier to understand and manage your day-to-day. By thinking about your expenses and money from a birds-eye-view, it can help determine whether or not a given purchase fits within your pre-established spending plan rather than trying to find a justification for buying something you don’t need.

How Much Do I Budget For Each Category?

While there is no hard and fast answer for this, each budgeting category will vary. We attempted to prioritize and list by percentage what may be the most important to you for this list. Keep in mind, this is not a complete list, and these categories are guidelines, and your financial picture may dictate different amounts. Expense categories will vary based on what you value in life.

That said, the largest chunks of cash will likely be towards the things you need to survive or those necessary to keep making money. Essential expenses that center on your shelter, nutrition, transportation, and health are vital to maintaining a stable life and should take up a significant portion of your budget.

Top 12 Budget Categories

Before you start your next month’s budget, be sure to include these budget categories.

1. Housing Expenses

This is a pretty easy category to place in the highest priority as it impacts so many aspects of your life, with your health and safety being one of the most important. Of course, you also need a stable housing situation to perform well at work, which is necessary for maintaining shelter, creating a circular dependency.

However, it is worth noting that a stable home is also vital for general purposes as you often require residence for most life events, like obtaining a license. This being the case, it should also not shock anyone to determine that housing costs account for the biggest expense in most people’s budgets.

While there is no strict maximum for the housing category, you should expect to pay anywhere from 25% to 35% of your income for housing, which can include a mortgage payment or rent. Keep in mind, anyone spending more than 35% of their monthly income on being a homeowner should reevaluate if they have too much house and need to downsize.

Items that fall in housing expenses:

Rent

Mortgage Payment

Appliances

Household Repairs

2. Utilities

While a shelter is arguably the most essential expense you might have, utilities are not far down the list and often seen as a housing-related expense. There are a couple of reasons for this, but the ability to live comfortably in your home is just as crucial for your health as actually having a home.

On top of that, many residential buildings in some urban areas have ordinances that require certain utilities, like water and electricity, to be considered safe living. Without these utilities, some cities may fine the occupants, send Child Protective Services, or even temporarily condemn the building depending on its condition.

Thankfully, utilities rarely come close to the top of the list of expenses in terms of cost, and you can reduce their cost with proper management. Depending on usage and breadth, you should expect to spend around 5% to 10% on monthly utilities.

Items that fall in utilities:

Electricity

Water

Telephone

Natural Gas

Sewer

Trash

Heating

Air Conditioning

3. Transportation Costs

This might be the next most important expense after housing, given how American population centers are designed and structured. While some areas may allow you to get away without having your own vehicle, rarely can you get away without having some form of transportation.

If you live in a larger, urban area, you may be able to rely on public transit like the subway or bus for a fraction of the cost of a car payment – but the reliability will differ depending on where you live. Keep in mind, the cost of owning a car includes the tags, licenses, and maintenance on top of the car payment.

Unsurprisingly, transportation expenses may be one of your largest categories, even if you take public transportation. Depending on your method, transportation or travel expenses will likely cost you anywhere from 10% to 15% per month.

Items that fall in transportation costs:

Gasoline

Car Payment

Registration Fees

Vehicle Repairs and Maintenance Costs

New Tires

4. Food

This is likely one of the last categories that we consider necessary for survival, though it is far from the last one we consider essential. Other categories below are arguably equally important, but you can often get by without them – for a time – before they eventually become a necessity.

However, food (groceries, not restaurants) and water are survival needs, not merely societal needs. Because of this, your grocery and water bills will often occupy a significant chunk of your income. Granted, this category is arguably the one where you have the most control in terms of how much you spend, but you still will have to devote a substantial amount.

Cooking dinner at home with groceries can help save money, but that “truism” is becoming less and less as fast food establishments sell meals for $5 or less. Granted, if you’re eating fast food every day, your medical bills will probably skyrocket. You should probably expect to spend anywhere between 10% and 15% of your monthly income on food expenses.

Items that fall in the food category:

Grocery Budget

School Lunch

5. Insurance

This is one of those categories that we referred to prior where you do not need it for your physical survival, but it is still a societal necessity and should be considered a high-priority. This broader category covers numerous sub-categories that may or may not apply to you.

For example, if you live in a large, urban area with well-run public transportation, you may not have to worry about car insurance, and those who own a home do not need to worry about renters insurance. On the other hand, if you live in America, you definitely need to get health insurance and dental insurance as those living expenses can hit anyone, anytime. It is also one of the primary reasons Americans go bankrupt.

It is worth noting that insurance may be classified under different categories depending on who you ask, but we group them on our list. Depending on what type of insurance you need and your insurance premiums, you can look to spend anywhere between 10% to 25% of your income on this category.

Items that fall in the insurance category:

Life Insurance

Auto Insurance

Renters Insurance

Homeowners Insurance

Health Insurance

Vision Insurance

Disability Insurance

Dental Insurance

Vision Insurance

Pet Insurance

6. Healthcare

Depending on your situation, this category will be higher or lower on the list – primarily dependent on your overall health and any chronic conditions. As such, younger healthy people generally do not have to allocate as much of their take-home income to this expense as older people.

However, older people who properly managed their money in their youth should have fewer and lower expenses, which allows them to spend more on general healthcare. Keep in mind, health care costs can cover everything from annual checkups, clinic visits, prescription medications to general medicine like pain relievers.

There is no good estimate of how much you should expect to spend on healthcare per month because some months you may spend a lot, and in other months you may spend nothing. That said, even when you do not have to spend money on healthcare, it is a good idea to sock away a little cash for a rainy day.

Items that fall in healthcare:

Anticipated Co-Pays

Prescription Medications

Orthodontic Work (Braces)

Prescription Eyeglasses

Primary Care Visits

Dental Care Visits

7. Savings

Given some of the statistics we have seen, this category might need to be placed a little higher on the list, but the fact that it is technically “additional” expenses situates it in the middle. That said, everyone, regardless of their age, needs some kind of emergency fund to cover those unforeseen expenses.

When you are young, it may seem like you have all the time in the world to save money, but that kind of thinking lulls you into a false sense of security. Older people likely understand the value of savings and should already be well on their way, though some may still need to play catch-up from decisions made in their youth.

There is no hardline about what amount you should save, but a safe bet is between 5% to 10% of your monthly income. Saving this amount will all but guarantee you can handle the unexpected emergency expense while providing you a nest egg for a future big purchase.

Items that fall in the savings category:

Emergency Fund

Health Savings Accounts

Fun Money

Three to Six Months of Expenses

Saving for a Specific Purchase (vehicle, college savings, vacation, etc.)

8. Retirement

While you could argue that retirement is a type of savings, we refer to savings as money that can be used for any expense without penalty. On the other hand, retirement is money that you save but cannot use until you reach a certain age in your golden years. If you plan on taking money out of your retirement account before the age of 59 ½ (unless you have a 457B account), you will incur a 10% tax penalty.

While this might seem like an onerous restriction, it has the added benefit of preventing you from spending money that will be needed to carry you through the end of life. On top of that, most of the accounts that manage retirement savings have various tax loopholes that allow you to either deduct the contributions from your taxes or reduce your taxable income until withdrawal.

Much like savings, this is another category without a hardline amount that you should contribute but should see at least 5% of your income (15% is much better). Keep in mind, this is the money that you will live off of when you are no longer able to work.

Items that fall in retirement:

Employer-Sponsored Retirement Plan

401K

403B

Roth IRA

457B

9. Debt

While this category may not apply to everyone, it applies to around 80% of the US population, so we figured it was a safe bet to put on our list – especially if you have a student loan, credit card debt, or personal loans. Granted, if you are one of the lucky 1 in 5 people who do not have debt, then you do not need to worry about this expense, but then what are you doing learning how to make a personal budget in the first place?

For the rest of us, debt is easily one of the more important expenses to consider. Still, it often sits a bit lower in our practical priorities explicitly because we can pay it off over time. That said, it is equally important to make sure you do not fall behind on your payments as the penalties and fees can balloon into a compounding runaway train.

Because everyone’s situation is different, we cannot recommend a given amount of your monthly income you should dedicate to debt payments. On the other hand, we recommend that you pay more than the monthly minimum – something close to 1/3 of Americans do.

Items that fall in the debt category:

High-Interest Credit Cards

Vehicle Loan

Student Loans

Personal Loans

Medical Bills

10. Personal Care And Personal Hygiene Items

This category can also be called “lifestyle” and refers to both wants and needs. Want, like new clothes that you do not strictly need, various cosmetic expenses, and anything else you buy for yourself that does not fill a strict need falls lower down the list.

Toilet paper and toothpaste should definitely be considered a “need.” Depending on your situation, some of these personal expenses might actually rank higher than expected.

The overwhelming majority of these expenses tend to fall outside of the purview of “necessities,” which places them lower on our list. If you need a new suit or dress for work or a cell phone, that is different, but few people need to go to a tanning salon and use the expensive beds multiple times a week.

Because most personal expenses are lower priority, there is no expected amount you should budget for this category, but it should remain relatively low on your list of priorities. Ensure that everything else above it on this list is covered first, then look to see what you can spare to maintain the lifestyle you want.

Items that fall in personal care and hygiene:

Shampoo

Deodorant

Toothbrush / Toothpaste

Gym Memberships

Shoes

Dry Cleaning

Toiletries

Laundry Detergent

Cleaning Supplies

Diapers

Hair Care

11. Entertainment

This category sits at the bottom of our list for a good reason, but it is still essential to include. The line from The Shining, “all work and no play makes Jack a dull boy,” can hit pretty close to home for people who do not have the discretionary income to spend on entertainment.

Of course, a creative individual can find extremely inexpensive hobbies to entertain themselves, but good mental health requires some form of entertainment. That said, if you find yourself in a budget-crunch, this is easily one of the first categories you should reduce until you can pull yourself out of that financial hole.

Sporting events, vacations, or streaming services like Netflix fall into this category. Given its otherwise low priority, there is no set amount you should spend on entertainment, and extra money can shift from month to month.

Items that fall in entertainment:

Books

Electronics

Restaurant Dining

Concert Tickets

Events

Vacations

Movies

Starbucks

12. Other

Given that it sits on the bottom of our list, this is a low priority item that covers pretty much anything else not already discussed. Granted, that can include property taxes that are a high priority in most circumstances, but you can often work with the IRS to get a debt repayment plan, in which case it becomes part of your “debt.”

Outside of taxes, various “other expenses” might also include donations, whether tax-deductible or not, but should also include expenses like parking fees, child support, and school supplies. Outside of these other expenses, things like gifts for those close to you also fall into this category.

As with other items lower on our list, your particular circumstances will heavily dictate how much income you devote to this broad category. Of course, some of these expenses are significantly more important than others, but things like a home improvement can be considered a kind of investment.

Items that fall in the other budget category:

Miscellaneous Expenses

Child Care

Holiday Decor

Special Occasions

Alimony

Anniversary Presents

Tutoring

Private School

Surprising Budget Statistics

As of 2018, the US’s average income was just under $71,659 a year, but that includes the wages of billionaires like Jeff Bezos, so the more realistic number is closer to $65,000. It seems this article is sorely needed as a recent Gallup poll shows that only 1/3 of Americans keep any kind of formal budget.

The numbers are far worse for budgets extending beyond the standard month-to-month format and tend to favor those who make more than the average income.

Of course, this article is needed for more than just a lack of budgeting as around ¼ of US Millennials demonstrate basic financial literacy (though they likely know all about the “powerhouse of the cell”).

Increasing Tuition Costs

Given how few people keep a budget and how few young people even know how to, it should also not surprise anyone to find out that a little over ¼ of US Millennials regularly overdraft their bank account. Granted, the Millennial generation came of age when the US economy was in shambles and right when higher education began inflating their tuition to pay for bloated administration costs.

However, it is not just the youth that seems to be struggling as even the older generations getting ready to retire find themselves in precarious financial situations. Sadly enough, some of this comes due to the exploding costs of higher education as parents generally have to cosign student loans.

Older Americans Continue To Struggle

Unfortunately, it gets worse as most Americans between the ages of 55 to 65 only have enough retirement savings to provide an average of $310 per month without taking from the principle.

While that might seem scary, it is worth noting that according to Forbes, 63% percent of the population cannot cover an unexpected $500 expense without going into debt.

The numbers are similarly dire in terms of savings as just under 1/3 of Americans have as little as $500 in savings. As such, it should be unsurprising that close to half of all US households live paycheck to paycheck.

Conclusion

While your priorities may differ depending on your circumstances, it is vital to keep in mind that some categories are inherently more important than others as they have a more significant impact on your earning potential. If you need a category to make money, that category should hold a higher priority.

That said, this does not mean you should outright avoid a category unless absolutely necessary, as the absence of something like entertainment or personal discretionary spending can cause issues. Hopefully, you understand why a budget is essential, how to make one, and how many categories to consider.

This post originally appeared on Arrest Your Debt.

If you have equity built up in your home and need access to cash, you have a few options. You could apply for a home equity line of credit, also known as a HELOC, use cash-out-mortgage refinancing, or sell a share of ownership in your home’s value to a company like Hometap. This Hometap review will help you decide if Hometap is the right choice for you.

Hometap Provides Alternative To Loans To Access Home Equity

Your home is most likely the largest and most valuable asset you will ever own. Over time, it continues to be more valuable as you pay your mortgage as the real estate market in your area experiences general increases. This Hometap review will help you determine if using Hometap to access your built-up equity is a good idea or not.

Reverse Mortgages And Home Equity Loans

Since 1986, home equity loans have been available, and more recently, older homeowners can take advantage of reverse mortgages. For some homeowners, these aren’t good options. To qualify for a home equity loan, you must meet minimum credit score requirements and income standards.

Self-employed individuals may find it especially difficult to document the needed income to qualify. Taking on a home equity loan also means having more debt, which accrues interest and requires a monthly payment. For cash-strapped homeowners, this may create even more hardship.

Cash-Out Refinance Option

A cash-out refinance is an alternative to a home equity loan, but this again means increasing your overall debt. Typically these loans are done when the homeowner can lower their interest rate, but depending on how much cash you take out, you could still be facing larger monthly payments over an even longer period of time.

Reverse mortgages can be a good option for older homeowners who want to stay in their homes but need the home’s cash value now. These loans are available only to homeowners who are at least 62 years old and can be quite expensive to arrange. However, there are no monthly payments, and the reverse mortgaged does have to be settled until the home is sold or the homeowner can no longer live in the house.

With both a standard home equity loan (HELOC) and cash-out mortgage refinancing, you run the risk of losing your home to foreclosure if you cannot keep up with the monthly payments.

Home Equity Investment Firms

For homeowners who don’t meet the criteria for a home equity loan, cash-out refinance or reverse mortgage, the ability to access their home’s equity was nonexistent until recently. Now homeowners can work with home equity investment firms, such as Hometap, to use the equity in their home to get the cash they need without having to worry about qualifying for a loan or taking on additional debt.

Along Comes Hometap

Jeffrey Glass and Max Campion are both long-time entrepreneurs who frequently seek investors to help grow their businesses. In exchange for a share of ownership, these investors provide the capital needed to grow and expand it. The pair began to imagine a way that this same principle could be applied to homeownership.

In 2017, the team founded Hometap, a home equity investment firm headquartered in Boston, Massachusetts. Operating first in six states and later expanding to 12, Hometap offers a unique alternative for accessing your home’s equity.

Operating much as a business investor does, Hometap provides homeowners with a cash payout of a portion of their equity in exchange for a share of the property ownership. The homeowner can get the funds they need to pay off other debt, renovate and improve the house, or even purchase a new home.

Hometap receives the initial investment and an agreed-upon percentage of the home’s sale price or its current appraised value when the homeowner decides to sell the house. This new loan alternative has provided homeowners with a way to receive debt-free cash and remain in their homes.

How Does Hometap Work?

Working with Hometap is a reasonably straightforward process that can be done almost entirely online with your phone.

The Application Process

The application process starts by filling out an investment request and providing some basic information about you and your property. This takes only a few minutes, and you’ll find out right away if you qualify for an equity investment.

Investment Estimate

A Hometap investment manager will then prepare an investment estimate in the form of a proposal. This will state how much cash they are willing to give you and how much of an ownership stake they would like.

Investments range anywhere from five to 30 percent of your home’s value, up to a maximum of $300,000. Ownership stakes are typically 10 to 20 percent but can vary.

Glass and Campion emphasize that every situation is different, and your investment proposal will be based on your particular circumstances. Everything about a Hometap investment program is tailored to providing the best solution possible for your situation.

Third Party Appraisal

Once you receive the investment proposal, a Hometap investment manager will call to discuss it with you and answer any questions you may have. If you decide to move forward, you will complete a short online application, and Hometap schedules a third-party appraisal of your property. After the third party home appraisal, the investment deal can be finalized.

Signing Closing Documents

After electronically signing the paperwork, the closing date is set, and after four days, the funds are wired to your bank account. Hometap takes care of filing all the required documents to show Hometap’s share and ownership stake by creating a lien on the property.

Why Was Hometap Created?

Glass grew up in a Brooklyn neighborhood where he watched families struggle to maintain their homes and make ends meet. In his adult years, he often thought there had to be a way to help struggling homeowners use their homes’ value to ease their financial burdens.

When he met Campion, the two began to envision a way to create a smart new loan for homeowners that eventually became a concept to share in the appreciation of a home’s value that did not involve a traditional loan at all. Hometap was born from these ideas.

The pair realized that there were several house-rich but cash-poor homeowners who would be willing to give up a percentage of their home’s ownership in exchange for the cash they needed, as an alternative to taking on more credit card debt.

Hometap’s Mission

Hometap’s mission is based on homeowners succeeding in managing their finances, staying in their homes, and working to increase their property value. The money the company makes is at the end of that investment term at the time of sale. They receive payment for their ownership stake in the home along with an agreed-upon percentage of the home’s total current value.

There are some exclusions in this calculation. For instance, if you renovate your home after the investment, the renovation value may be deducted from the home’s current appraised value before determining the final payout to Hometap.

Again, each situation is unique, and it’s best to contact your Hometap investment manager to discuss your plans and how it will affect your final settlement.

Hometap Shares Risk

Hometap also shares the risk that the home will lose value, such as in the housing market crash in 2008. Should that happen, it is possible you would end up paying off Hometap’s investment with less than the original investment amount. That is one reason for the 10-year term of the investment. In most real estate markets, homes will appreciate in value over that time.

Why Would I Use Hometap? The Pros Of Using Hometap

There are benefits to working with a home equity investment firm such as Hometap. First and foremost, this is a way to access the equity in your home without having to take on more debt. You do not make monthly payments to Hometap, and the investment does not accrue interest.

No Impact On Credit Scores

For homeowners looking to use their equity to pay off credit cards or other debts without dipping into their savings, this could be an attractive way to lower their overall debt. Second, getting a home equity investment from Hometap does not impact your credit score.

While your credit is a consideration in determining eligibility, your investment manager can get the information they need without making a hard inquiry on your credit. Third, you do not need a home inspection to close a deal with Hometap.

Remain In Your Home With No Monthly Payments

Finally, you continue to live in your home and do whatever you wish. Hometap does not get involved in home maintenance or renovation decisions or any aspects of operating and maintaining your home. As long as you keep mortgage payments, taxes, and insurance current, you won’t hear from your Hometap investment manager until it is nearing your settlement date.

You also do not need Hometap’s permission to sell your home, although your contract will obligate you to inform the company that you are selling and to keep them apprised of the process.

Reasons To Be Cautious. The Cons Of Using Hometap

As is the case with any home equity financing option, homeowners should carefully consider their situation and needs to determine the best option for accessing the equity in their home. Hometap is a relatively easy way to accomplish this, but it may not be right for all homeowners.

Limited Number Of Locations

The first consideration is whether or not you live in the states where Hometap is licensed. The company can currently work with homeowners in:

Arizona

California

Florida

Maryland

Massachusetts

Michigan

Minnesota

New Jersey

New York

North Carolina

Oregon

Virginia

*The company plans to continue expanding into other states in the coming years.

Plan On Selling In Ten Years

You should also seriously consider how long you intend to remain in your home. If you have no plans to move within ten years, you should make sure you plan how you will pay off the investment at the settlement date.

While Hometap does not require that you sell your home, the final settlement will pay Hometap their share of the value of your home. This includes the initial investment and the agreed-upon percentage of the increase in the home’s value, with some exclusions.

This is a relatively significant amount of money, which could be covered by a cash-out refinance or a traditional home equity loan. However, if you cannot secure the payoff funds to buy out Hometap’s share, Hometap can force you to sell your home to settle the investment.

Less Cash Than A Home Equity Loan

Another issue to consider is how much cash you need. Hometap’s equity investments range from five to 30 percent of your home’s equity, with a maximum payout of $300,000. If you need more cash than that, you may want to consider a home equity loan or cash-out mortgage refinance.

Home equity loans typically allow homeowners to access 80 to 90 percent of their home’s equity. For example, if your home has a current appraised value of $500,000 and you owe $300,000 on your mortgage, you have $200,000 in equity.

A home equity loan would give you access to as much as $180,000 of that equity, while a Hometap equity investment would only provide you with a maximum of $60,000.

May End Up Costing More

You could end up paying more for a Hometap investment than a home equity loan.

For instance, if you take out a $30,000 home equity loan on a $200,000 house at an interest rate of 5.6 percent, you will pay $39,230 over the 10-year term of that loan. With a Hometap investment, at the end of 10 years, you could pay $50,000-$53,000, depending on the exact terms of your investment contract. This cost difference could make a difference for homeowners who are not carrying significant debt who can qualify for a home equity loan.

There are fees associated with a home equity investment, typically rates ranging around three percent of the investment. These fees are deducted from Hometap’s final investment offer before the funds are wired to your account. Homeowners should consider this when determining how much cash they will be able to access with Hometap.

Who Qualifies For Hometap?

While some homeowners within their states of operation will qualify for a Hometap equity investment, not all homeowners will be able to do so. If you have less than 25 percent equity in your home, you will likely be unable to qualify for this program. While there is no defined minimum credit score, Hometap prefers to work with homeowners who have scores above 600.

You must also reside in your home for at least six months out of the year. Hometap does not make investments in a vacation property, although they will consider rental properties under certain conditions.

Glass and Campion emphasize that each situation is unique and decisions are tailored to your specific circumstances. Homeowners are under no obligation to accept an investment offer from Hometap, but the partners encourage people to apply when deciding how best to access the equity in their home.

Comparing Home Equity Investment Firms

While Hometap is not the only home equity investment company in the country, they do work a little differently than the others.

Some equity investment firms, such as Unison, will only work with homeowners who have higher credit scores. Others, such as Point, are repaid with the investment plus a total share of the home’s current value, not just an agreed-upon percentage. That leaves homeowners unsure how much they will need to pay off the investment until the end.

Point, Unison, and others may also choose to discount your home’s value when making the initial investment offer. Known as a risk-limiting adjustment, this is done to protect the company from declines in your home’s value. This could leave you with the ability to access less cash than you need.

Glass and Campion created Hometap with the idea of offering the best benefits of home equity investment arrangements with fewer drawbacks. The company limits the impact your credit score has on your ability to qualify and does not engage in risk-limiting adjustments to your home’s value.

Although Hometap offers less access to your home’s equity than some of the other firms, they also allow you to adjust your home’s appraised value. This is done by deducting the cost of any improvements you have made before determining the final payoff when it comes time to settle Hometap’s investment.

Is Hometap A Good Idea?

Determining if a Hometap equity investment arrangement is right for you requires you to seriously consider your current circumstances, how much cash you need, your plans for the home, and the overall real estate market in which you live.

Even if you qualify for an investment, you might want to think about talking to your mortgage lender about a home equity loan or cash-out refinance.

Each Situation Is Different

You should prioritize your goals and consider which option will work best for your situation. You also need to consider your long term plans and how an equity investment would work into those. If you are planning to remain in your home for more than ten years, a Hometap investment might not be the best option for you unless you know you will be able to come up with the funds to settle the investment.

Homeownership has long been heralded as part of the American dream, and for many homeowners, it is a positive experience. For homeowners who need access to the cash tied up in their home but can’t qualify for or don’t want to gain access through traditional home equity loans, a Hometap equity investment can be an ideal way to make homeownership less stressful.

Hometap Can Get You Fast Cash To Change Your Financial Path

Hometap allows more homeowners to use the value of their most significant asset to reduce their financial burden and get back to enjoying the benefits of owning their home. They do this by getting you cash fairly quickly while allowing you to remain in your home with no additional debt payments.

All options for accessing the equity in your home carry benefits and drawbacks. If you are in a situation where your credit score may not allow you to qualify for a home equity loan or if you simply want to get the cash you need without taking on more debt, a Hometap equity investment may be the answer for you.

This post originally appeared on Arrest Your Debt.

This comprehensive post was written by Stephen Yao, a financial engineer with expertise in life insurance, pensions, and capital markets. He offers great advice on how to get out of a car lease if you agreed to a bad deal.

Getting Out Of A Car Lease

Like most people, you may need a car from time to time, whether for work, school, trips, or other necessities. However, as more of us are working from home, and the cost of renting a car long-term might not be worth it anymore. Do you really want to be paying that $300-$400 a month for your car lease when you drive your car, maybe once a week? Paying for a vehicle, gasoline, or even parking is now too costly and might even be a massive drag to your finances.

So, let’s get into some options available to you when getting out of a car lease. I have ranked each choice in terms of difficulty level (1 = easiest and 4 = most difficult, in terms of time and risk).

1. Transfer Your Lease

Perhaps you have a friend or family member that’s looking for a car to use. Good news, you can transfer your lease to them.

Some lease contracts may have a fee to transfer leases, but given the transfer costs are less than your total remaining lease payments, this may be the best route to go.

There are various reasons why someone would want to conduct a short term car lease, which can include:

1. They want to avoid the hefty down payment. Typically, down payments for car leases can be up to 20%, but transferring the lease allows the new lease not to pay the down payment and only the monthly lease payments.

2. Short-term car lease takeovers are cheaper than paying higher fees to rent a car from a car rental shop if the car lease does not have substantial monthly payments left.

Additionally, it is essential for individuals willing to do a car lease takeover to ensure they have a good credit score. Many lease takeover provisions require a solid credit score to ensure the remaining monthly lease payments.

Verdict: This option is straightforward, but the tricky part is finding a person who would be willing to take on the remaining car lease.

2. Defaulting on Your Lease

It is quite simple to default on a car lease; just stop paying the lease. The dealership will repossess the car, and the lease ends.

However, the drawbacks of this option are:

You take a hit on your credit, and it makes financing a car difficult the next time;

The lessor may come after you as you may be liable for early termination fees.

Verdict: Obviously, this option’s downsides heavily outweigh a car lease’s monthly payments.

Think about it – With a lower credit score, you may be ineligible for better interest rates when purchasing a mortgage for a home, which could result in significantly higher interest payments.

3. Early Lease Termination

When leasing a car, you always have the option to return the vehicle to the dealership. However, most car dealerships have included early termination clauses in your contract to avoid too many car returns and cover the costs of setting up the lease itself.

An early lease termination is slightly less risky than defaulting on your car lease, but it may not be worth it if the early termination fee is too high. Typically, the total charges needed for early termination will include the early termination fee of around $200 to $500 and any remaining depreciation costs.

Case Study (Example of a Good Early Lease Termination):

Excess Mileage Fees = $1,000

Excess Wear-and-Tear Charges = $500

Early Termination Fees = $500

Monthly Lease Payment = $200

Number of Months Left in Lease = 12

Based on the following depreciation fees and early termination fees, you would need to pay up to $1,000 + $500 + $500 = $2000 to terminate early on your lease. Paying $2,000 would only make sense if the total remaining lease payments (number of months left in lease * monthly lease payment) > $2,000. In this case, the total remaining lease payments is $200 * 12 = $2,400. So it would make sense to terminate early on this lease as you would be paying a total cost of $2,000 and saving $400 from not taking on the additional monthly lease payments.

Verdict: This is a safer option than defaulting on your car lease, but there are more profitable options you can leverage if the early termination ends up costing you more money.

4. Buy-Out Provision

Going a step further from the early lease termination option, you can undergo a lease buyout strategy.

The strategy is simple:

You terminate your lease and take on the early termination fees;

You buy out the car at the fair lease buy-out value;

You resell the car given that the vehicle is worth more at the market price than the fair lease buy-out value.

This option covers depreciation and early termination penalty costs, but ONLY IF the math works out.

Let’s go into a bit more detail about this.

Case Study (Example of a Good Lease Buy-Out):

Car Lease Buy-Out Price = $10,000

Current Value of Car = $10,500

Early Termination Fees = $500

Excess Mileage Fees = $1,000

Excess Wear-and-Tear Charges = $500

Monthly Lease Payment = $200

Number of Months Left in Lease = 12

So in this example, there is a lease buy-out option available to us. If we buy the car at the lease buy-out price of $10,000, we can ignore the depreciation fees ($1,500) and sell it at the market price of $10,500.

This example will give us a gain of +$500 from the car sale, and we can subtract the early termination fees of –$500. We will then end up with a total cost of $0. In this case, we have entirely avoided the $2,400 total remaining lease payments.

Verdict: The lease buy-out option works out well when the car’s current market value is higher than the lease buy-out price or if the remaining total lease payments are substantially increased.

Conclusion

Ultimately, there are many options available to you to get out of a car lease, and each option has its pros and cons. Most importantly, you need to review your lease terms diligently to ensure you make the best choice.

This post originally appeared on Arrest Your Debt.