Regarding personal finance, the key word is “personal.” There are no one-size-fits-all rules for running your budget, savings, retirement planning, or other aspects of your financial life.

That said, some general, tried-and-tested rules can be useful for planning your financial life. While you might decide to tweak these rules in the application, they can help guide your financial decision-making.

So, without further ado, here are 35 money rules of thumb that will help you rock your budget (and retirement savings, future financial planning, and more!).

Basic Money Rules of Thumb

1. Pay yourself first. This old rule of thumb helps you save rather than spend all your money. Even if your budget is tight, put some money into savings as soon as you get paid. Saving first, rather than last, means you’re much more likely to save money instead of spending it.

2. Add your raise to your savings account. Don’t move significantly above that once you’ve achieved a salary that funds a lifestyle you’re content with. When you get a raise, put it into savings rather than spending it. This can help avoid lifestyle inflation while significantly growing your savings.

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3. When an appliance breaks, buy a new one if the appliance is 8+ years old, or the repair would cost more than half the replacement cost. This goes for things like fridges, TVs, dishwashers, etc. Get an estimate on the repair cost. If that cost is 50% or more of the replacement cost, you’re usually wiser to replace the broken appliance. And for older appliances, you might consider doing the same even if the repair costs are lower. Older appliances are more likely to have subsequent issues with other parts.

4. Use 12% of an unexpected windfall for a treat, but bank the rest. Use a small percentage to treat yourself immediately, whether a gift, an inheritance, or an unexpected bonus. Put the rest in the bank, and give yourself a few months to think about the wisest way to spend that unexpected money.

Budgeting

5. Try the 50/30/20 rule for budgeting. If you’re new to budgeting, try allocating 50% of your take-home pay towards necessities (food, shelter, utilities, clothing, etc.), 30% towards lifestyle choices (vacations, gym fees, hobbies, cell phone plans, etc.), and 20% towards financial goals and priorities (extra debt payments, savings, etc.). The 50-30-20 budget isn’t perfect, but it can be a good place to begin.

6. Track at least your problem spending areas. Some people like a very detailed budget. Others, not so much. If you don’t want to track every line item, track at least those areas where you tend to overspend, whether dining out, buying new clothes, or spending on kids’ items. This can help you control your spending without being bogged down by an over-detailed budget.

7. Spend about 10-15% of your budget on food. This includes groceries and dining out. Find places to cut back if you struggle to keep your budget within this range.

8. Allot 2-10% of your budget for personal items. This includes items like entertainment, getting your hair cut, and buying clothing, which would take up no more than about 8% of your monthly budget. This is a flexible area, though, and you can always cut back if you need to save more money.

9. Use a cashback credit card for purchases and pay the balance in full each month. There are credit cards that pay cashback as high as 5%. Using a cashback card to make routine purchases and pay off the balance in full each month to avoid interest charges will be like getting a discount on everything you buy. Check out the best cashback credit cards and choose the right one.

Savings and Investing

10. Save three to six months’ expenses in an emergency fund. There are many different rules of thumb for this one, but this one makes the most sense for most people. Remember, these are expenses, not income. And if you’re in a volatile field of work or the economy is in a downturn, consider saving eight or even 12 months’ worth of expenses.

11. Use the rule of 72 to determine how long it will take for your investment to double. To use this rule, divide 72 by the expected growth rate of your investments, expressed as a percentage. For instance, if you expect to earn 10% annually, doubling your money takes about 7.2 years.

12. Aim to have your portfolio double about every ten years. How do you know if your investments are on track and growing well? One rule of thumb is that your well-managed portfolio should double every ten years. Your mileage may vary, but if you’re not even close to doubling after a decade, consider rebalancing your investments.

13. Earn $100s with a Sign-Up Bonus Credit Card. Did you know there are hundreds of credit card offers paying signup bonuses worth hundreds of dollars? If you normally spend at least some time on credit cards, plan to periodically apply for a new card with a generous signup bonus. It could help you add several hundred dollars to your savings each year.

Debt

14. Put no more than 30-35% of your net income towards minimum debt payments. This is the rule if you have a mortgage. If you don’t have a mortgage, you should put no more than 30-35% of your net income towards minimum debt payments and monthly rent. This is a somewhat high figure, and it’s always better to have even less of your income devoted to debt. However, the 30-35% range is what mortgage lenders, in particular, will look at when considering the debt-to-income ratio.

15. Pay off your highest-interest debt first. There is much disagreement about debt repayment methods, but this is the one that will save you the most and get your debt paid off most quickly. You might want to deviate if you’re trying to boost your credit score quickly. In this case, first, pay off any credit cards that are currently maxed out. Then, pay off debt from the highest to the lowest interest rate.

16. Debt Payoff Strategy Plan B: Payoff your smallest debt first. Dave Ramsey, also known as the Debt Snowball, made this strategy popular. It’s a simple concept based on paying off the smallest debt first since it’s the most doable. Once that debt is paid, you allocate the monthly payment you would have made on the smallest debt to the next smallest debt, which should at least double the payment on that next debt. That should enable you to pay off the second smallest debt in a short time frame.

As you work your way up the debt ladder, taking out the next smallest debt gets easier due to the extra cash flow from the smaller debts already paid until you’re ready to tackle your biggest debt. By then, it may not seem intimidating because you’ll have the extra cash flow and the successful track record from paying off your smaller debts. It’s a solid strategy if paying off your highest-interest debt first is too tall a task.

Retirement

17. Save 10-20% of your income for retirement. The old rule of thumb was to save 10% of your gross income for retirement. That seems to be a little low, especially for younger workers who may not have a pension to fill in the gaps. Aim a little higher than that, especially later in your career, if you want to be ready for retirement.

18. Subtract your age from 100; the resulting number is the percentage of your portfolio you should invest in stocks. If you’re 50, for instance, you should invest about 50% of your overall portfolio in stocks. This is another rule of thumb that can vary greatly. You could bump this rate up if you’re more risk-tolerant or planning to work and invest longer. Consider a more conservative style if you’re less risk-tolerant or want to retire early.

19. Always take the employer match on your retirement account. If your employer offers any match for retirement investments, save at least enough to get that match.

20. Calculate your current pre-retirement expenses plus 10% to plan your annual retirement needs. Many rules of thumb say to aim to live on a certain percentage of your current income in retirement. But this may not make sense if you save a significant portion of your income and still live well. Instead, use your expenses to calculate your annual retirement needs.

21. Aim to save 1X your annual salary by 35, 2X by 40, 3X by 45, and so on. This is a rule to help you see if you’re saving enough for retirement. If you’re far off these numbers at various ages, consider cutting your spending to boost savings.

College

22. Save for retirement first and your kids’ college expenses second. This is counterintuitive for parents who spend their lives putting their kids first. But remember: your child can borrow, if need be, for college. You cannot do the same for retirement.

23. Limit your student loan borrowing to your first year’s expected annual salary. Research typical first-year salaries in your field to keep your student loan borrowing in check. Keep your student loans’ total balance to this amount or, preferably, much less.

Mortgages

24. Put at least 20% down when you buy a home. This is a good idea for two reasons. First, it limits the total amount you borrow on your home, leading to significant savings over time. Second, it means you don’t have the added expense of private mortgage insurance (PMI). Third, you are much less likely to go underwater on your home if the market has another major downturn.

25. Buy a home that costs no more than 2.5 to 3 times your gross annual income. Again, this is a good way to limit your spending on your home, keeping things within an affordable range. However, it doesn’t consider interest rates, taxes, and insurance. If interest rates are high or your property taxes will be enormous, consider limiting yourself to just 2X your annual income.

26. Consider refinancing your home if interest rates drop by 1% or more. The important piece of this rule of thumb is “consider.” Refinancing is always a case-by-case issue, depending on how long you plan to own the home, your current rate, and how much the refinance will cost. But if rates drop by 1% or more, you should at least take time to do the math on a refinance.

27. Fix your mortgage rate for as long as you plan to live in your home. Fixed-rate mortgages are the norm for many reasons. But if you’re considering a variable-rate mortgage, ensure the rate will be fixed for at least as long as you plan to live in the home. Variable rates can make sense if you plan to move on in a few years. But even then, they can be dangerous, so just be careful.

28. Don’t prepay a low-rate, deductible mortgage. Deciding whether or not to prepay on your mortgage can be tough. But, generally, if you’re already getting a good rate, you should use that money for other important financial goals. This is especially true if you’re talking about your primary residence, where the mortgage interest will be deductible on your federal income taxes.

29. Your mortgage should be the last debt you pay off. Many homeowners prioritize paying off their mortgages on the path to debt freedom, but that makes little sense if you have other debts. Car loans, student loans, and especially credit cards typically carry higher interest rates than mortgages, so paying them off should be a priority. In addition, paying off non-mortgage debt first will provide the needed budget boost to take on paying off your mortgage eventually.

Speed is another consideration. While you may take the next 15 years to pay off your mortgage early, you could have your car paid off in two or three years, providing a much more immediate cash flow benefit.

Cars

30. Plan to buy used or new and drive the car for at least ten years. Generally, buying new isn’t the better financial option. But if you can drive the car for ten years or more, buying a new one can sometimes be a decent financial investment.

31. Use the 20/4/10 rule if you must finance a vehicle. Your best bet is to pay cash for any vehicle. But if you must borrow, put at least 20% down. Don’t finance the car for more than four years, and don’t put more than 10% of your income towards payments. This may limit your means to buy a nice vehicle, but it’ll keep you from making stupid decisions at the car lot.

32. To estimate the actual cost of owning a car over five years, double the price tag and divide that by 60. So, buying a $10,000 car costs about $333 per month for all its expenses, including plating and insurance.

33. Don’t spend more than 20% of your take-home pay on all costs for all the vehicles you own. This includes costs like insurance, plates, and maintenance, too. Again, this can seem limiting if you’re setting your sights on an expensive vehicle. However, limiting your total vehicle costs to 20% or less of your take-home pay will keep you from spending too much on a depreciating asset.

Insurance

34. Have 56 times your gross annual salary in life insurance coverage. If you need life insurance, the term is usually (though not always) the best bet. When deciding how much term coverage to get, multiply your annual salary by five or six, and opt for at least that much total coverage. Consider getting even more if you have special life insurance needs, like multiple children or high debt. If you don’t bring in an income but provide essential services to your family

35. Use insurance for catastrophic expenses, not basic ones. As with high-deductible healthcare plans, this is how the insurance world generally works. Whether it’s car or homeowners insurance, you shouldn’t rely on your insurance to pay for expenses you can handle out of pocket. This will only increase your deductible and your overall costs over time. Instead, consider insurance a last-ditch backup rather than a financing plan for general life costs.

The post 35 of the Best Money Rules of Thumb You Need to Know appeared first on Doughroller.

Unfortunately, we’re still not accustomed to YNAB’s month-ahead spending goal. That means our checking account ebbs later in the month, and we must be more careful. This is especially true because some bills get paid with my freelancing income, which can happen at unpredictable times. We’ve struggled to track our cash flow.

This has often caused us some real problems for the past several years. For example, “We don’t get paid until Friday, and we have $11 to spend the entire week”-these are some problems. If you’ve ever been there, I have a possible solution: Google Calendar.

After messing with several potential solutions, we finally found one that worked well for us. If cash flow is your major budgeting issue, here’s a step-by-step guide for using Google Calendar to track your cash flow easily.

1. Set up a calendar just for your budget

If you don’t already have one, you must sign up for a Google account. As soon as you have your Gmail address, you’ll have access to Google’s calendars. To find it, go to calendar.google.com.

Even if you’ve never used Google Calendar, you’ll have one that automatically populates based on your email address. This is your default calendar. It shows up on the left-hand side of your calendar display.

To create a new calendar for your budget, click the arrow to the right of “My Calendars” and click “Create new calendar.” Fill in the blanks with a name for your calendar, time zone, etc. You don’t have to fill in all the blanks if you don’t want to.

Since this calendar will include some personal financial information, you probably don’t want to make it public. But if you’re on a shared budget, you may want to share it with your spouse or partner. We’ll talk about that in the next step.

2. Share with your spouse, if necessary

My husband has access to this calendar, and I would suggest making it available to your spouse or partner if you’re on a shared income. To share a calendar with someone else, go to the “Share with specific people” section at the bottom of the calendar creation menu.

Type in your spouse’s email address and decide what permission settings to use. If you want your spouse to be able to add to the calendar or change event colors (which will be important later on), choose “Make changes to events.” Then click “Add person.” Once this goes through, click “Create calendar” to begin using your calendar.

This will shoot you back to the main calendar screen, and your calendar will default to show up.

Of course, you must enter some events to make anything appear on the calendar interface. Here’s how to do that.

Additional Resource – The Best Budget Apps for Couples

3. Enter your steady paychecks on repeat

Let’s start with the positive. Begin by entering your paychecks as a repeating event, depending on how you get paid. I’ll show you some examples here that are similar to how my husband’s and my calendar work (with hypothetical numbers, of course!).

First, click on the date of your next paycheck. Let’s say I get paid once a month, on the 15th. I’ll double-click into the 15th of the month, which will open a new event to edit. I title my budget calendar events with the name of the income or bill and the amount.

You may come up with a different naming pattern. But whatever you do, stick to it so it doesn’t become unnecessarily confusing.

I typically save budget events as all-day events because they appear better on the calendar interface. And since there’s probably no particular time associated with budget due dates, you don’t need to worry about assigning them an hour deadline.

Next, you’ll want to set up the event as repeating, assuming you get paid regularly. To do this, check the box next to “Repeat.” Then, set up your repeating parameters. In this case, we say I get paid monthly on the 15th. Just click “Done” when your parameters are correct. Then, click “Save.”

In our imaginary calendar, we will follow these steps to include an every-other-Friday paycheck for my husband. For an every-other-week paycheck, your repeat parameters will look like the following:

As you can see, this parameter automatically makes the event appear on the calendar multiple times a month.

Now that you’ve entered your paychecks, I’ll give some tips below for entering variable income or paychecks that aren’t always the same.

4. Enter your bills on repeat

Now, let’s get to the yucky stuff: bills. This is the main purpose of my budget calendar, so I don’t include variable budget items like groceries or gas here. If you wanted to, you could, especially if you operate on a weekly or bi-weekly budget for items like these.

Create your first bill on its recurring due date just like you created your paycheck events. When I enter bills, I name them in one of two ways. I have some that are auto-debited from my account.

Then there are bills that I have to do something to pay, either by paying online, writing a check, or paying over the phone.

Note that in both styles, the dollar amount is negative. Of course, it’s obvious from the DUE and AUTO indicators that money is going out rather than coming in. But this feels more accurate to me.

As you enter these bills, ensure you correct the repeat dates. I will fill out my calendar with a few bills so you can get a feel for what this all looks like. Here’s a relatively filled-out calendar:

5. Use color-coding for at-a-glance understanding

As you can see from my sample calendar, it’s hard to tell what’s what because they are all the same color. (As a note, your calendar’s default color may differ.) Also, I’m a huge fan of color coding, so I like to do this with my calendar. It’s really easy.

First, open a paycheck event and then switch its color to green. (You can use any color you prefer, but green feels intuitive to me.)

When you click “Save,” the calendar will ask you if you want to edit all the recurring events or just this one. Click “All Events.” This will change all those paycheck events to green.

This will change all those paycheck events to green. Now, you can color-code your other events as you like. In my calendar, DUE events are red, AUTO events are yellow, and all income events are green.

Again, color code in whatever way works for you. Remember that if you aim to code all the events in a series as you set up your calendar, you’ll need to apply color coding to all events in that series.

Additional Reading – The Best Budget Apps

6. Use your calendar to track what’s been paid

You may stop here and use this as an at-a-glance way to track due dates. I use color coding to track what payments have been made or at least scheduled. I’ll often schedule payments ahead of their due date, and I want to see when I’ve done that so that I don’t accidentally double-pay.

To do this, I’ll set an event color to gray each time I schedule a payment or when an auto payment hits my bank account. Changing the color is the same. Just click on the event and select the color you want to use.

However, you should apply this new color to only that event rather than all subsequent events. Otherwise, it will look like you already paid your electric bill months in advance.

Just click the “Only this event” button when you save with your new color.

7. Check in on your calendar weekly

I habitually check in on this Google Calendar at least once a week, and sometimes more, depending on the circumstances. The huge advantage is that I can see which bills need to come out of which paychecks and schedule bills to be paid ahead of time when that’s an option.

Like all budgeting tools, this one is worthless if you don’t regularly use it. So, if you decide to use this option, get into the swing of checking in on your calendar frequently.

A Few Important Points About Tracking Your Cash with Google Calendar

I promised I’d discuss tips for handling variable income, and I have a few other items of note you should also consider.

Variable Income

What if you don’t know when your paychecks will hit? Or do you know when they’ll hit but not how much you’ll get paid?

In the first case, I’d habitually track bills and put in paychecks as soon as I get them. At least you can see which bills are coming up when that paycheck finally does come in.

The second case applies to people who work for commissions and such. In this case, record the date of your paycheck in this slot without an amount. Then, you’ll at least remember that the check is coming, and you may be able to gauge approximately how much it’ll be as the date gets closer. If you have a base pay, record your paycheck income as your minimum base pay so you’ll know at least how much you’ll make for that check.

These aren’t perfect solutions, but they can be a start as you figure out how to customize Google Calendar for your situation.

Personal Information

Some of you may balk at storing personal financial information on a Google platform. And you’re not entirely wrong. While Google is great, it may not be the most secure option globally.

However, I don’t have a huge problem with people knowing how much my bills and income are. You cannot do much with this information, especially since I round up to the nearest dollar and don’t even use the exact amount.

I wouldn’t, however, recommend storing any bank account or even customer account information in your budget calendar. Keep that somewhere else that’s much more secure, or you risk becoming a victim of identity theft or having your accounts hacked.

Notes

That said, storing additional information in your budget calendar could be helpful. For instance, I have to make our car payments over the phone each month, and I have the darndest time keeping track of the number I’m supposed to call.

So, I added that to the description note on our car payment event in the budget calendar. As with color changes, you can apply descriptions to just one or all the following events. This could be a helpful place to record websites and phone numbers used to make your payments. Just avoid storing personal information here, such as account numbers.

Ending Payments

What if you know you only have five months’ car payments left? In this case, when you set up a recurring event, you can set it to end after a certain number of recurrences. So your car payment would drop off your calendar after five months of recurrences.

If you use this technique, I’d recommend toggling through your calendar to find the last payment you’ll make. Make a note in that event’s title to check that your installment loan is fully paid off. Your last payment amount may be slightly below or even above what you’d normally pay, so you want to be sure it’s paid off before it drops off your calendar and out of your mind!

Final Thought on How to Track Your Cash Flow with Google Calendar

Harnessing the power of Google Calendar to track your cash flows offers a streamlined, accessible approach to managing your finances. By setting up this system, you can gain real-time insights into your spending patterns, ensure timely bill payments, and plan for future financial goals—all within a platform many of us use daily.

Whether you’re looking to tighten your budget, save for a big purchase, or keep a closer eye on your expenses, Google Calendar provides a flexible, free, and innovative tool to stay financially organized. Embrace this method, and you’ll find that a well-managed budget is just a few clicks away.

The post How to Use Google Calendar to Track Your Cash Flow in 7 Easy Steps appeared first on Doughroller.

Mixing relationships and money can have disastrous consequences, ranging from never seeing your $20 again to burning relationships. And it goes both ways, whether you’re the one borrowing money or the one lending it.

As someone who has borrowed money from family members and lent to friends, I’ve learned that setting good boundaries is important. Otherwise, you risk money ruining your relationships, which is never good. So before you open your purse strings or hold out your hand, check out our rules for borrowing from and lending to friends and family members.

Rules for Borrowing Money from Friends

Let’s start on the receiving end. Sometimes, borrowing from friends or family can seem more viable than taking out a personal loan. After all, they’re likely to lend to you for little or no interest. And they know you personally instead of just looking at your credit score or other fairly impersonal data.

You might be in this situation when you’re just starting, and managing basic finances is tough. Or maybe an emergency arises, and you aren’t sure where else to turn. Borrowing from family or friends, in this case, isn’t always a bad decision. But you need to be sure you go about it properly. Here’s how:

1. Look into other options first

Before you borrow from a friend or family member, consider other options. These could include tracking your spending and getting on a budget. It could mean starting a side gig to earn more or asking for a raise. You could also try negotiating for better rates with your current creditors. You might even consider getting a personal loan through a traditional lender.

There are new players in the personal loans field that, via advanced algorithms, would match your loan demands to the best personal loan quotes with a possibly surprising APR rate.

Earnin

The Earnin app allows users to access wages they’ve already earned before payday, offering up to $100 per day without interest or mandatory fees. It features instant money transfers to bank accounts, credit score tracking at no cost, and tools for budgeting like Balance Shield to prevent overdrafts and Tip Yourself for savings goals.

The app operates on optional tips rather than fees, promoting a community-driven approach to financial well-being.

Read our Earnin Review

This isn’t to say that you should take out a loan with a 17% APR if your parents are willing to lend to you at a much lower rate. But you want to be sure you’re financially prepared to meet your obligations, no matter where you borrow from.

2. Be sure they can afford the loan

This is a time to be very frank about your and your lender’s finances. It may not seem like your business. But if you’re close to your lender–especially someone like a parent or grandparent who feels responsible for you–they could lend when they can’t afford it.

Of course, you don’t have to ask for a detailed financial statement—that is none of your business. But don’t ask to borrow money if your friend or family member struggles with their finances.

3. Pay at least some interest

This piece of advice may differ depending on the relationship in question. My parents would lend me money if I needed it (mostly through no fault of my own), but they wouldn’t let me pay them interest. It just didn’t occur to them.

However, if you’ll pay the loan back over several months or years, you should offer to pay enough interest to compensate for inflation. A short-term loan may not require this step unless the lender asks. But for a longer-term loan, be prepared to pay at least 2%—4% in interest.

4. Don’t negotiate for more

Depending on your situation, asking for what you need is okay. If you really could use a $10,000 loan, ask. But if your friend can only spare $2,000, take the offer graciously and don’t negotiate. Negotiating is what you do with banks and people with whom you have purely financial transactions. It’s not what you do when you borrow from friends and family.

If you’ve examined your other options and found them lacking, you’re not in a position to negotiate. Consider the loan a favor and be gracious about accepting it. It progresses toward your goal even if it doesn’t meet your total needs.

5. Set up some paperwork

Never borrow money from a friend or family member with a spit handshake. Written documentation helps keep you both accountable for who owes what and when. Your lender needs to know when to expect payment and when they’ll be fully paid. You’ll need to agree to these terms and be sure to stick to them.

One of the best things about borrowing from people who care about you is that you can often set terms that work well for you. Maybe you pay every other week on payday or once a month if you’re paid monthly. Be upfront about what you can afford, but ensure the lender gets what they need.

As a side note, you can draw up formal legal paperwork if the lender prefers. But that’s not necessarily required. If the lender wants you to sign legal paperwork for the loan, do it.

6. Make payments on time

If you’ve borrowed from a friend or the Bank of Mom and Dad, it’s tempting to be lazy about making payments on time. Don’t be. In this scenario, your credit score may not be on the line since they won’t likely report your loan to the credit bureaus. But something far more important is on the line: your relationship.

Remember to make this payment on time. Schedule automatic transfers using your bank’s online check feature. Set a reminder on your Google calendar and then make payments when they’re due using PayPal’s friends and family transfer feature. Whatever you do, make sure that those payments get made on time.

7. Try to pay it off early

This isn’t entirely necessary if you’re sticking to the payment plan. But it can be nice. It can also help remove the weight of financial transactions from a relationship. Getting money back sooner rather than later could be financially helpful for your friend or family member. And if nothing else, it buys you back some credibility you may have lost if you got yourself into a financial scrape in the first place.

Even if you only pay the loan off a month or two early, that can still be a nice surprise and boost the relationship.

8. Work to maintain the relationship

Finally, don’t let this relationship become primarily about financial transactions. Keep maintaining the relationship in the ways that you would have if there were no loans at all. This might mean regular dinners or just holidays together.

There’s a balance here. It can be tempting to pull out of a relationship if you’re embarrassed that you had to ask for money in the first place. But you could also be tempted to ramp up the relationship to “make up” for borrowing the money. Either option could lead to some awkward moments. It’s best to keep on as you were before in the same rhythms–just with that extra monthly or biweekly transaction thrown into the mix.

Rules for Lending Money to Friends and Family

As you might guess, our rules for lending to friends and family are the flip side of the borrowing rules. Lending isn’t always a bad option. It can be a good way to use the money you can spare. And it can be a real help to someone you care about. But before you write a check, consider these rules:

1. Only lend what you can afford to lose

This is the most important rule here. If you’re lending money, be sure you can afford to lose it. Think of lending as giving a gift. If you’re paid back on time, it’ll be a surprise gift in the other direction. Getting repaid is just a bonus.

Looking at the loan this way may seem strange. After all, you wouldn’t likely hand someone a large check for their birthday. However, holding onto this loan loosely can help you ride potentially emotional waves if the person walks off without repaying you or continues to struggle financially.

2. Count the potential relationship costs

With this said, there are potential relationship costs even if you hold the loan loosely. Many strong relationships sour over money. It’s easier to replace the money in your bank account than to replace a lifelong friend or close relative. So be sure that the loan is necessary for your friend or family member and that the potential relationship is worth it for you.

Following the other rules here may make you less likely to lose the relationship over the loan. But it could still happen, so be careful.

3. Talk to the borrower about their other options

Be sure the borrower has vetted other options. This is only possible if you dig into their finances, which you have a right to do as a potential lender. This doesn’t mean you need to interrogate them about every expense. But you should have a good idea of their income and outgoing expenses, whether they’re sticking to a budget, and if they’ve looked at other options.

4. See if there’s another way to help

Sometimes, digging into other options can help you see if there’s another way you can help outside of lending money. For instance, you might find that all the person needs is some budgeting guidance to be financially successful. Or maybe he’s looking for a job, and you can give him some work or help him make connections in your field. There are often alternatives to writing a check, so be sure you explore those in a non-threatening or controlling way.

5. Set a fair interest rate

It’s good for borrowers to have some skin in the game to repay on a reasonable schedule. It also helps you get some interest on the loan you’re making. Don’t charge exorbitant interest, of course. After all, the primary goal here is to help a friend, not fund your retirement. But look at inflation and set a rate at least a little higher than that.

6. Create a payment schedule

This is a good place to sit down with your borrower’s budget. Figure out what they can afford to repay monthly or per paycheck. Then, set that payment schedule and get it in writing. If you want, you can create a formal legal document. You can also use a spreadsheet to keep track of payments and amortization. Agree on the day you’ll be paid, and then expect payment on that day until the loan is paid off.

7. Treat it like a business transaction

Once you’ve loaned the money, you should treat it like a true personal loan. The bank you borrow from doesn’t give you the third degree about how you spend the money, provided you make payments on time. You shouldn’t either. If you think you’ll take offense to the borrower’s financial decisions after you make the loan, don’t make the loan at all. You should be fairly confident the money will be used wisely, or you shouldn’t provide it.

8. Don’t lose sight of the relationship

As with being the borrower, when you’re the lender, focus on the existing relationship. Don’t use a loan to wheedle your way further into the borrower’s life than you were before. And don’t assume that your situation gives you unlimited lifetime access to the borrower’s finances. The borrowing/lending relationship can be handled separately if they’re late on payments. But the rest of your relationship should continue, as much as possible, as it was before.

Lending to and borrowing from friends and family members can be tricky. And it really shouldn’t be your first or preferred option. But it can be a good stopgap if you’re in a jam or a way to help someone if you have money to spare. Just follow these rules to keep things as smooth as possible, whether you’re the lender or the borrower.

Final Thought on Borrowing Money from Friends and Family

Borrowing money from friends and family can offer a flexible and interest-free alternative to traditional loans, potentially strengthening bonds through mutual support. However, it’s crucial to approach such arrangements with clear communication, set expectations, and formal agreements to safeguard relationships.

Weighing the potential risks and benefits carefully is essential, as the impact extends beyond finances into personal connections and emotional well-being. Ultimately, the decision to borrow money from loved ones should be made with thorough consideration and respect for the delicate balance between financial need and relational harmony.

The post 8 Simple Rules for Borrowing Money From Friends and Family appeared first on Doughroller.

Whether you’re starting from scratch, repairing damaged credit, or looking to take your credit from good to excellent, here are 12 ways to improve your credit score.

12 Easy Ways to Improve Your Credit Score

1. Get your FICO Credit Score

The first step is to know your credit score. The saying goes that you “can’t improve what you can’t measure.” And that’s never more true than with your finances.

The good news is that you can get your FICO credit score for free. You do have to sign up for a 30-day trial, but you can easily cancel the service before the trial ends if you want.

Don’t want to use a service that might require payment? That’s doable. Services like Credit Karma, and Credit Sesame give you a free credit score estimate. (Just keep in mind that these are estimates, even if they may be fairly accurate.)

Another option is to check with your current credit card provider. Many of today’s credit card companies provide a free copy of your credit history and credit score every month.

The bottom line here is that you should have some idea of where you stand with your credit score. With all the free options available, there’s no reason not to!

2. Get a free copy of your credit report

Step two is to get a free copy of your credit report. By federal law, the three major credit reporting agencies must provide each consumer with a free copy of their credit report every year. This is the starting point for improving your score. And remember, you can get your free copy at AnnualCreditReport.com.

You can swing this in one of two ways. One option is to get all three reports at the same time. Then you can compare them to be sure they all have accurate information. (See steps three and four!) Or you can pull one report every four months. This lets you keep an eye on your credit history without paying through the nose for frequent reports.

Either option is fine. Again, it’s most important that you have some idea of what information appears in your credit history.

3. Review your credit report for accounts that aren’t yours

The first thing to do when reviewing your credit report is to make sure the identifying information about you is accurate and that the listed accounts belong to you.

If you see an account you don’t recognize, try to get to the bottom of it. Start by reviewing your records of outstanding debts and accounts. Sometimes creditors have a different official name than the one they present to the public. So an account you don’t recognize could be one you opened but just don’t recognize immediately.

If that’s not the case, though, it could be that you’ve fallen prey to identity theft. In this case, you’ll need to go through the steps of reporting the theft. Simply having fraudulent accounts removed from your credit history could significantly boost your score.

4. Review your credit report for errors

Even if all of the reported accounts belong to you, they may contain errors. For example, a creditor may have reported a delinquent payment that was paid on time or repaid. If you paid a creditor in full after some time of missed payments, it’s not unusual for the creditor to have failed to report your payment to the credit bureaus.

Or you may show outstanding collections accounts that are paid off. Collections accounts on your credit history aren’t good, either way. But paid-off accounts are much better than those with an outstanding balance.

You may also find negative items in your report that should have been removed due to the passage of time. Some negative items are supposed to drop off your credit report after a certain number of years, automatically. Sometimes, though, the bureaus overlook this on individual credit reports until someone brings it to their attention. It pays to be vigilant in this situation.

Here are a few of the common items that should fall off on their own:

• Old bankruptcies must be removed from your credit report after ten years.
• Lawsuits and judgments must be removed after seven years, even if you haven’t fulfilled the court order.
• Paid tax liens remain for seven years, and unpaid liens remain for fifteen.
• If you are divorced and your spouse incurred debt when you weren’t married–either before you were married or after your divorce–it should not appear on your report.

If any of the above situations apply to you, and the period for which the items need to remain on the report has passed, contact the bureau as soon as possible. They will have the negative items removed.

If you notice a mistake, start a paper trail. You might need proof of your contact with the creditor or credit agency to get the situation resolved quickly.

5. Review your inquiries for errors

When you apply for most credit, the creditor will pull your credit report as part of its decision on whether to extend credit and on what terms. These inquiries are one factor in determining your credit score.

The theory goes that if you have a lot of recent inquiries to your credit report, you may be applying for credit to address a financial crisis. As a result, inquiries will lower your credit score. What you want to make sure is that you authorized each of the inquiries that you find in your credit report. If inquiries are showing up when you didn’t apply for credit, contact the credit reporting bureau to report the mistake.

Related: Visit CreditKarma to see your free credit score.

6. Dispute any errors you find

Having carefully reviewed your credit report, the next step is to dispute any errors you find. Having successfully disputed errors in the past, I suggest taking two approaches.

First, contact the creditor directly to dispute the error. Particularly if you still have an ongoing relationship with the creditor, they generally are willing to look into the issue. Second, dispute the error directly with the credit reporting agency. By law, they are required to investigate any errors you bring to their attention and respond to you within 30 days.

Filing a dispute with a credit bureau is much easier than it may seem, and each of the three major credit reporting agencies has a section of their website (Experian | TransUnion | Equifax) that will help you dispute an error online.

7. Pay your bills on time

Having examined your credit report closely and disputed any errors, it’s now time to turn our attention to money management. The first rule of credit score health is to pay your bills on time.

Even one late payment can significantly lower your credit score. And the higher your score is, the more impact a late payment will have. Note that most creditors will not report a late payment until it’s 30 days past due. Still, being even one day late can result in penalty fees, increased interest rates, and even closed accounts.

The best way to avoid late payments is to automate your finances. Sign up for automatic bill pay whenever you can. Or if you live with a variable income, try to get a month ahead on your payments. That way if income doesn’t hit your bank account at the right time, you have built-in extra time to pay your bills.

8. Pay down your debt

This may fall into the “easier said than done” category. But it will help improve your credit score. Your overall amount of debt plays into your FICO score. And revolving debt is particularly important. Carrying high balances on credit cards relative to your available credit will tank your score quickly.

Paying down revolving debt, like credit card debt or even a HELOC, may be the quickest way to improve your credit score. And since paying off debt is also a way to get control of your finances, it’s generally an excellent strategy.

9. Do NOT close revolving accounts

It may seem counterintuitive, but closing credit card accounts, lines of credit, and other revolving debt can lower your credit score. One of the main factors in your score, mentioned above, is your debt-to-limit ratio. This is how much credit you’re using versus how much credit you have available.

Closing a credit card will lower your available credit. This will increase your credit utilization ratio, even if you don’t go into any more debt. Plus, if you close an older account, it may lower the average age of your accounts. This is a less important piece of your credit score, but it’s still a part of the equation.

If you’re struggling with overspending, try another strategy. Consider cutting up your cards and unlinking them from all of your online accounts. Or use only one card with a low limit for your everyday grocery and gas shopping. Then, pay it off as soon as you use it. This keeps your cards active but lets you avoid going into more long-term credit card debt.

Read more: How to Cancel a Credit Card Without Hurting Your Credit Score

10. Don’t max out a credit card or line of credit

Another factor in the credit score formula is whether you use most or all of the available credit on any given account. The theory is that if you max out an account, it may reflect some financial difficulties that could increase your risk of default. And this is true even if you pay off the account in full every month.

Even if you pay off a card at the end of every billing period, that may not reflect on your credit report. Say your American Express account gets reported to Experian on the 15th of every month. You’ve used your card every day for the first part of the month, so you’re carrying a hefty balance. You pay off the balance on the 28th–two days before that month’s bill is even due.

But, still, your high balance was reported to Experian on the 15th. Not good.

The best policy here is to never charge more than 30 percent of a card’s limit on any individual card. And also don’t use more than 30 percent of your total credit limit at any given time.

Sometimes it makes sense to make a large purchase on your credit card. For instance, you might book a $5,000 vacation cruise on your credit card to get automatic travel insurance and other perks. That’s great. Just pay it off as soon as the transaction is processed to avoid having that large balance show up on your credit report.

11. Apply for new credit only if you must

As noted earlier, inquiries to your credit report will lower your score. Every time you apply for credit, the creditor in question looks at your credit score. The credit bureaus record this inquiry, and it dings your score. So to avoid these inquiries, apply for new credit only if you must.

One thing to keep in mind is rate shopping. The credit agencies understand that smart consumers shop around for credit in certain situations. For instance, if you’re getting a mortgage, you should check with multiple lenders to get the best terms.

So FICO gives consumers between 14 and 45 days to rate shop. Which end of the spectrum depends on which particular FICO score (there are more than 10!) a potential lender pulls. Your best bet is to do your rate shopping within two weeks. So set a deadline to put in all of your mortgage, car loan, or student loan applications within two weeks to avoid multiple hard pulls and a larger ding on your credit score.

12. Become an Authorized User on Another’s Credit Card

Our final strategy is to become an authorized user on a friend or family member’s credit card. This is a common approach used by parents who add their young adult children as authorized users on a credit card.

According to Experian, an “authorized user is a secondary account holder on a credit card. These users can make purchases, but aren’t ultimately responsible for payment, unlike a joint account holder or a cosigner would be.”

This practice can help those with limited or no credit history get a headstart on building credit. Experian describes this strategy as one that can “benefit you tremendously.” Of the five FICO factors, authorized users can benefit from the cardholder’s payment history and age of accounts.

At the same time, there is some risk involved. If the owner of the account doesn’t pay their card each month on time, it can tank your credit score. There’s also a significant risk if you pay a credit repair company to become an authorized user on a stranger’s account.

Called for-profit piggybacking, Experian warns that this practice is expensive, ethically and legally questionable, requires you to relinquish your personal information, and it may not end up improving your credit.

Why Your Credit Score It Matters

A credit score determines the types of interest rates we receive on loans. Because of this, a good credit score could save tens to hundreds of thousands of dollars throughout someone’s life. One estimate placed the value of a good credit score at $83,770!

Sure, it’s possible to live without ever using a financial service that requires a good credit score. A full cash-based life is not entirely out of the question. For most, though, it is simply unrealistic.

Because so many people need a good credit score to maintain the best financial condition, choices and actions that increase that credit score are incredibly important. Luckily, it’s not all that “hard” to do. It simply takes time and a concerted effort.

Let’s talk about a few of the first steps you should take when attempting to rebuild or improve your credit score.

Improving your credit score can have many positive effects on your finances. The simple steps described above will help you to improve your score, and you may seem results very quickly. Of course, if you are recovering from a financial meltdown, it will take time. But with patience and sound financial management, you should see your score start to improve.

Next Up: Best Apps to Boost Your Credit Score

The post 12 Simple Ways to Improve Your Credit Score Today appeared first on Doughroller.

But what about helping people avoid financial messes in the first place?

The best time to set individuals on the path to successful financial management is as young children. Even kids can learn basic concepts like saving for what they want and working hard to earn money. However, many people learn the specifics of sound financial management during high school and early adulthood. During these few years, most students manage some money, either allowance or income from a part-time job. They’re also on the verge of making some of the biggest financial choices of their lives: where to go to school, how to pay for school, and what career to choose.

Luckily, many things high school students should know by the time they graduate are very basic. Here are 14 lessons we suggest teaching your high school student before they leave the nest.

1. You’re Never Too Young To Save

Kids can and should have savings goals and even retirement accounts. One excellent personal finance book for kids teaches that youngsters as little as 5 or 6 years old should have to set savings goals. Then give them a small allowance, and watch as they learn to make tough choices. Should I buy the $1 pack of gum or save that money for my longer-term goal?

In high school, this can mean helping your teens set mid-term savings goals. They can save for their own prom dress, video game system, or car.

But high schoolers should also work towards longer-term savings. For instance, you can set up a Roth IRA for a minor. It’s a great way to show them how to save for the long term. And they don’t necessarily have to use that money for retirement. They could also choose to use it for a down payment on their first home.

Related: Best Money Apps for Kids, Teens and Young Adults

Book Review: Retire Before Mom and Dad

2. Compound Interest Is a Beautiful Thing

Explaining compound interest can help a savings-resistant teenager find the motivation to stash away cash. This calculator from Investor.gov can help you calculate how much interest that Roth IRA could earn if your child starts saving right away.

For instance, start with $1,000 and add $25 a month for 40 years. If the investment earns 8% and is compounded annually, your high school student could have nearly $100,000 in savings well before retirement age.

You can also make this apparent by offering compound interest from the Bank of Mom and Dad starting at an early age. Consider giving your child a nickel each week for every saved dollar of allowance. It quickly becomes apparent how fast this extra cash can add up–much more so than if they put it in a bank account earning .01% APR.

3. Compound Interest Might Bury You

On the flip side, be sure to talk about how compound interest could bury a young spender in debt. This simple credit card calculator helps illustrate how a small credit card debt can quickly snowball out of control.

The calculator shows that a $1,000 credit card charge with a 19% APR could take eight years to pay off and would cost $998 in interest. Just seeing these numbers on paper can help a student grasp the dangers of uncontrolled debt.

Again, you can demonstrate this issue with the Bank of Mom and Dad. If your teenager can’t wait to save money for the next hot thing, consider lending them the cash with a steep interest rate. That’s safer than them taking out a formal loan, but it can also teach them how fast compound interest can work against them.

4. You Don’t Have To go into Debt To Pay for College

Contrary to popular belief, student loans are not required for a college degree. Some colleges, like Davidson College in Charlotte, N.C., work with students to ensure they don’t go into debt for school. Others simply offer a great education at a fraction of the private school price.

Students have many options for college without debt: attend part-time, work while in school, choose a cheaper school, graduate early, and start at a community college.

This isn’t to say that going to school debt-free should be every student’s goal. Sometimes the student loan debt is worth it. If you launch into a high-paying field within four or five years of high school, student loan debt isn’t all bad. But students shouldn’t just take this debt as a fact of existence in college. And they should think carefully about every dollar they sign up to pay back.

5. College Degrees Are Not All Created Equal

Choosing the right school is important, but choosing the right degree maybe even more so. Sure, high school students should follow their interests and talents when choosing a career path. But they should also become familiar with the current and probable future job market.

Just having a college degree is no longer enough to guarantee a decent job. This means that students must do as much research as possible to ensure their degree will lead to excellent job opportunities.

One way to help students think through this is to have them do internships and job shadowing during high school. Sometimes, exposure to unknown fields can light a new passion they never knew existed.

6. Everyone Needs an Emergency Fund

As soon as a high school student leaves home, they need an emergency fund, preferably one that doesn’t involve a line of credit. A line of credit can make a decent emergency fund for those of us with more maturity and money management experience. But for teens and twenty-somethings just beginning to manage their money, having cash to fall back on is essential.

It’s a good idea to help your high school student save a small emergency fund well before graduating from high school. This money can be used for emergency car repairs and other issues that might crop up during college.

If you’re concerned that your young college student might spend out of this account for non-emergencies, consider a co-signed account that requires your input for spending. Or at least make it a joint account that you can monitor. Just having the accountability of someone else watching what you’re spending can make you think twice before swiping that debit card.

7. A Car Isn’t a Good Investment

Chances are that buying a car will be the first major financial decision a high school student makes. And most high school students drool over high-end SUVs or fancy muscle cars.

But cars are (quickly) depreciating assets. Cars are not a good investment. High school students should strive to pay cash for cars, even if that means driving around a beater.

If you haven’t already had the conversation about the problem with paying interest, car buying time is the time to do it. Some students may truly need a car to enable them to maintain a job or get to after-school activities. And that’s fine. But taking out an interest-bearing loan for a car should be a last resort.

8. Keeping Up With the Joneses Could Wreck Your Life

It’s human nature to want what your neighbors have and to be like others. And wanting to have nice things isn’t all bad. But allowing what others have to drive our financial choices, particularly when those choices involve spending beyond our means, is a slippery slope.

Teenagers are developmentally primed to fit in with their peers, which is why they worry so much about what others think. So this lesson can be a difficult one to teach. But if a teenager can step back from the drive to keep up with the Joneses now, they will make much better financial choices in the future.

Again, you can make this an object lesson by letting your high schooler try to fit in. For instance, if you usually spend $250 on back-to-school clothes, hand it over to your teenager. Just make sure they understand that you won’t be there to bail them out. If they spend $125 of that $250 on a pair of expensive designer jeans that look cool, it’s up to them to make the remaining money stretch to fit all their back-to-school needs for the year. And if they end up having to dip into their own money or shop Goodwill to “keep up with the Joneses,” so be it.

9. Financial Institutions are There To Sell You Things

It’s easy for students–and the rest of us–to think that banks and lenders are our friends, especially when students are trying to finance a college education.

But the fact is that financial institutions exist to make money. And they make money by selling financial products. This doesn’t mean students should avoid dealing with financial institutions. It simply means they should be shrewd when doing so.

This is an especially important conversation to have before your student steps foot on a college campus. College orientations are rife with booths from various local banks and large credit card companies peddling their wares. Again, these wares aren’t necessarily bad. But students can easily sign up for way more credit than they have any business handling before college even starts.

10. Budgeting Doesn’t Have To Be a Drag

Most adults hate the word budget, and many teenagers have never even considered living on one. If they do think about it, they probably assume that living on a budget means never buying a pair of jeans, going to a movie, or spending any money in general.

But living on a budget isn’t about never spending money. It’s about taking control of your money to meet financial goals. Students who understand this and who start budgeting while they’re in high school will be set up for a life of financial happiness and success.

High school is the perfect time for teenagers to learn to budget. You can give them this power by handing over a lot of the money you would have spent on them. For instance, give them complete control over their lunch money. If they run out of money by Wednesday a few weeks in a row, they’ll quickly learn to budget their spending for the week, so they don’t have to go hungry or bring a PB&J from home.

Tip: FamZoo is a great app for older teens, especially those going off to college. It assigns a purpose to every single dollar your child earns and spends, creating incentives for them and helping track their savings progress.

11. Not All Debt Is Bad Debt

Two or three generations ago, people didn’t go into debt. Many of our great-grandparents probably paid cash for their homes. These days, living completely debt-free isn’t always possible or even wise.

High school students need to understand how to stay out of the most expensive forms of debt: long-term student loans, depreciating car loans, high-interest credit cards, etc. But they also need to understand when to use debt and how to manage it wisely.

One way to help them figure out this equation is to research where they want to live someday. They can look at current home values and mortgage rates and figure out what it would cost them to buy a home responsibly. Then talk about why mortgage debt isn’t always bad and even how they can eventually use credit cards to net some great financial rewards.

12. Credit Scores Are Important

Like I said above, living completely without debt is tough, if not impossible, today. People are rarely able to cover the cost of a home with absolutely no debt. So students should learn early on about their credit scores, including how to maintain one.

Again, you can help by giving them some exposure early on. As soon as your child takes out their first student loan, they’ll have a credit report and subsequent score. Talk about what a good score is and how to maintain excellent credit.

You can extend the lesson further by giving your kid access to a secured credit card. These require a deposit, so lack of payment doesn’t cause a hefty and immediate consequence. But this can help them build up credit over time. And keeping tabs on their score while they do this is a great way to motivate them to keep building credit for the future.

TIP: Experian Boost. It’s free and can see when you pay your utility and mobile phone bills. Every payment you make on time can boost your credit score.

13. Living Takes Money — A Lot of It

Most teenagers have no concept of how much it takes to cover the basic costs of living. Why should they? It’s not like they buy all your groceries, pay your mortgage, or cover insurance premiums.

The problem is that this lack of awareness can leave young adults with sticker shock when they get out on their own. You can help prepare your high school student for the real cost of life by letting him in on your family budget, having her shop for groceries, or requiring that he pay for his car insurance.

One good option here is to run an experiment with pretend money. Talk to your teenager about the life they want to lead someday. Research their potential income and cost of living where they’d like to live. Then give them a month’s salary in play money. Go through a typical budget, and have them fork over the money for basics like rent or a mortgage, groceries, student loan payments, and vehicle expenses. When they see what’s left, they’ll know how much it costs to be an adult.

14. Money Isn’t Everything

It’s easy for high school students to get caught up in dreams of giant homes, luxury cars, and tropical vacations when they land a high-paying job in the future. But remember to teach your student that money isn’t everything.

This comes into play when students choose a college major. Yes, high school students should choose a major that will help them become employable. But they shouldn’t choose a high-powered, high-paying job just because of the money. There’s a balance to be had, and you can teach this lesson best by demonstrating it in your own life.

Lead By Example

Remember, it’s important to set a good example for your kids. It’s much easier for a child to adopt healthy financial habits when they watch their mentors successfully practice them daily.

The post 14 Things Every High School Student Should Know About Money appeared first on Doughroller.

Even if you’re not currently on a bare bones budget, you may want to go ahead and write out what your essential budget would look like right now. If you lost your job, how much money would you have to pay each month to keep the lights on and food on the table?

Why do you want to know this figure even if you’re ripe with extra cash? For one thing, it helps you set your emergency fund target. Too often, people think an emergency fund should be three to six months of net income.

Though, in a true emergency, you’d likely be able to cut back your expenses — sometimes dramatically, so you want to set your emergency fund goal, at first, for three to six months’ worth of essential expenses.

Unless you only pay out essential expenses, you must know your bare-bones budget. Here’s how you figure that out:

How to Create a Bare Bones Budget

Start With the Four Walls

Here at Dough Roller, we’re not necessarily on board with everything Dave Ramsey preaches, but his four-wall concept for budgets is pretty solid. The four walls are the things you must pay for to keep living. As Dave Ramsey lists them, the four walls are food, shelter, clothing, and transportation.

Here’s the thing: your budget for your four walls may look different from my own. So, it would be best to consider how it would look to strip these essentials back to their minimums in your particular situation. Let’s do a quick case study of the four walls for my own family.

For my family, the four walls would include groceries, a mortgage payment, utility payments, one vehicle’s gas and expenses, a monthly bus pass, essential medical expenses, and basic clothing for myself, my husband, and our two kids. Dave Ramsey’s four walls don’t explicitly mention medical expenses, but certain medications must be filled monthly.

Those expenses would look something like this:

• Groceries: $400/month
• Mortgage (including property taxes and insurance): $1,730/month
• Utilities: $150/month (average)
• Car Maintenance, Insurance, and Registration: $150/month
• Gas: $100/month
• Bus Pass: $30/month
• Basic Clothing: $50/month
• Medical Expenses: $50/month
• Total: $2,660

Our current budget doesn’t look much like this at all. We spend a bit more on convenience foods, but we could cut back if we had to. Our mortgage would stay the same, but we could be less comfortable saving on utilities. (i.e., My husband likes his air conditioning!)

Learn More: How to Earn Cash Back on Groceries

We currently have two cars, one with a monthly payment. But if the worst happened, we could sell that vehicle and use our paid-off vehicle for my husband, who must have a work vehicle. I could take the bus to and from work if I needed to. And our clothing doesn’t have to be very expensive, as my husband and I have fairly casual workplaces, and we buy most of our kids’ clothes secondhand, anyway.

Your four walls might come in much higher or lower than ours, depending on your situation. For instance, maybe you live in an area where walking or busing everywhere is possible. So, if you lost your job tomorrow, you could sell your vehicle and get by without it. Or maybe you must have two vehicles to get both spouses to and from work.

Or maybe you work in a highly formal environment requiring you to have dry-clean-only suits. If dressing this way is essential, budget for more expensive clothes and the costs of caring for them.

The key here is to think carefully about what you would have to pay in this situation if you were cutting your budget as much as possible.

Add in additional essentials

The four walls are a good starting place and should make up the bulk of your bare-bones budget, but you should also consider other close-to-essential expenses you may want to add to your budget. This might include some of the following items, depending on your circumstances:

• Phone or cell phone service
• Internet service (especially if you work remotely)
• Coffee shops (if you rely on them for internet access rather than paying for home internet)
• Home maintenance
• Medical insurance
• Additional insurance policies (such as life insurance)
• Professional association fees
• Daycare
• School tuition
• Haircuts
• Toiletries
• Pet care items
• Cleaning supplies

Many of these expenses could be cut out, if not forever, at least for a long time. But some are pretty close to essential.

For our family, I’d count phone service, internet service, home maintenance, life insurance, daycare, pet items, toiletries, and health insurance among our essentials. Daycare is the largest of those expenses, but we can’t be a two-income family without daycare. If one of us lost a job, we’d want to maintain our spots at our local daycare or risk being unable to find daycare when we find a job again. Here’s what these expenses would look like stripped down and counted monthly:

• Phone Service: $50/month (if we switched to a lower-cost provider)
• Internet Service: $50/month
• Home Maintenance: $50/month for basic upkeep
• Life Insurance: $55/month (we wouldn’t want to lose this coverage!)
• Daycare: $800/month (and that’s cheap!)
• Pet Items: $30/month
• Toiletries: $20/month
• Health Insurance: $250/month
• Total: $1,305

Health insurance is an iffy expense to include here, I think. It depends on why you’re calculating your bare-bones budget. Count your current health insurance costs to cut back on this budget to knock out debt. But if you’re looking at what would happen if you lost your job, consider how your job loss would possibly make available options like government-subsidized insurance.

Again, your next-to-essential expenses probably differ from mine, depending on your situation. The key is to think clearly about how much you would need for expenses like these should you need to cut your budget to the bone.

Steer clear of bankruptcy if you can

What about debt payments? You should include your minimum debt payments if calculating your bare-bones budget to set an emergency fund goal.

Related: How to Get Out of Debt… and Fast

But what if the point of this exercise is to cut your budget back so that you can get out of debt? In this case, you might look at your budget like this: First, pay essential expenses, then put everything else towards debt. In this case, your minimum debt payments (other than those like your mortgage that are part of your four walls) don’t need to factor in. You’ll just put whatever is left each month towards debt.

For me, long-term debts like my and my husband’s student loans would be part of our bare-bones budget. Even if we lost a job tomorrow, we’d do everything possible to pay these debts to avoid negative credit consequences. Minimum credit card or personal loan payments might also factor in for you.

So, if I add minimum student loan payments based on our current repayment plans, that’s $215 monthly.

Add it all together

So, if you want to know your bare-bones budget, add these three figures together. For my family, the total comes to $4,180. And again, some of the expenses I’ve included — such as toiletries and even debt payments — could be stripped or stretched for at least a short period.

With that figure, I could say that the first $4,180 of our monthly income goes toward essential expenses. Whatever is left over can go towards debt. Or I could calculate my emergency fund savings goal- somewhere between $12,540 and $25,080 for the standard three- to six-month expenses.

How to Use a Bare Bones Budget

So, how can you use this budget in your everyday life? You’ve got a couple of options:

• Stick to it. To stick to this stripped-down budget (which I wouldn’t recommend doing for longer than you need to!), consider doing a cash budget. Pay your essential monthly expenses upfront, and then use cash for variable expenses like gas and groceries. Or use a budget app to ensure you stay within range on all these line-item expenses.
• Guide by it. What if you want to use your bare-bones budget as a guide to make sure your spending doesn’t get too out of control in any one area? In this case, write down what you could live on each month, and then start tracking what you do live on.

For instance, say you could feed your family for $300 monthly, but you spend $600. It might be time to look at ways to cut back on grocery spending!

Or, say you could get by without a vehicle if you had to, but your car expenses total $1,000 per month. Is it worth continuing to pay that much for your car payment, maintenance, gas, and more? Or could you find a way to moderate that expense?

Learn More: 4 Budget Types and the Best Tools for Each

Ramsey says you should live on a bare-bones budget while getting out of debt. Sometimes, this is appropriate, especially if you can pay off a big debt in three or four months. However, sustaining this tight budget over the long haul is extremely difficult. Plus, it might defeat the purpose. The goal of managing your money is to give yourself more options and to enjoy life more, not to live like a miser who never enjoys anything!

Writing down your bare-bones budget is a good exercise, though you might not want actually to live on this budget unless you must. But it gives you a place to start when determining your monthly expenses.

A Few Budget Apps to Get You Started

If you’re struggling to create and follow through with a manual budget, you may need some help. If so, plenty of low-cost budgeting apps can help you succeed.

YNAB

YNAB is one of the most popular budgeting apps available. It centers around Four Rules: 1) each dollar in your budget is assigned an expense category, 2) you will anticipate large, occasional expenses, 3) you’ll build flexibility into your budget, and 4) you’ll “age your money.”  Aging your money brings you to a point where you begin paying this month’s bills using money accumulated from the previous months. Once you reach that stage, you’ll move past the paycheck-to-paycheck cycle and gain greater control over your finances.

YNAB is available for a monthly fee of $14.99 or an annual payment of $99 (the equivalent of $8.33 per month).

Read our YNAB Review

Buxfer

Buxfer is one of the most comprehensive budgeting apps available. In addition to budgeting, it also offers forecasting, investment tracking, and retirement planning.

Engaging in international transactions or having foreign-based accounts is especially valuable. That’s because it can work with more than 100 currencies in over 150 countries. It uses a user-friendly question-and-answer format, making it easier for you to access any information you need to manage your finances better.

Buxfer offers three different plan levels:

Monarch Money

Monarch Money starts by having you add all your financial accounts to the dashboard. That includes savings and checking accounts, investments and retirement accounts, loans, and credit cards. You can then set goals, and the app will help you to reach them.

Though it is not an investment service, Monarch Money will provide investment assistance by analyzing your accounts, helping you balance your allocations better, and project future valuations.

Monarch Money is available for a monthly fee of $14.99, or you can sign up for an annual plan at $99.99 – the equivalent of $8.33 per month. It all begins with a seven-day free trial. You can add unlimited household members to the app at no extra charge.

Read our Monarch Money Review

Frequently Asked Questions (FAQ)

The post How to Create a Bare Bones Budget in 4 Easy Steps appeared first on Doughroller.

The apps to make money listed below generally won’t make you rich any time soon. But many can give you ways to earn just a bit of extra cash. Check them out if you want to earn a little money on the side, often for little to no actual work.

Summary of the Best Money-Making Apps

Yes, there are 30 money-earning apps on this list, but not all of them will be a good fit. Here’s a list of ten that most people will be able to benefit from in different ways:

The 30 Best Money-Making Apps for 2024

1. Capital One Shopping

One of the best savings (and money-making) apps is Capital One Shopping. This shopping app can help you make money by finding better deals and rewarding you.

The first is by helping you save money on the products you buy every day. A penny saved is earned, so saving money on a purchase you would make anyway is just as good as making money.

Capital One Shopping has a database of websites that sell products and showcase their prices. Once you install the app on your browser, Capital One Shopping can automatically comparison shop for the product you’re interested in. You can also use the phone app to scan barcodes of products in stores and find local retailers selling the same thing for a better price.

The other way Capital One Shopping can help is by giving you rewards when you shop. When you shop, you’ll get reward points you can redeem for gift cards to popular websites.

Read our Capital One Shopping Review

2. Robinhood (Up to $200 Bonus)

Robinhood is an investing app offering you the opportunity to buy stocks with a $0 trading cost. The beauty of the app is you can invest in partial shares of stock, so if you only have $20 to invest, you can still own part of Google!

The bonus of Robinhood is when you sign up (which is free), you’ll be awarded a free share of stock. This share of stock can range in value anywhere between $5 and $200 (the value of the stock is likely on the low end, but you’ve got a shot for a good one).

3. Swagbucks ($10 Bonus)

We’ve written before about Swagbucks as a way to earn side money. You can make this even easier now by using Swagbucks as an app instead of just on your computer. As with many other apps featured here, this one will notify you when you’re eligible to take surveys or complete other paid tasks.

Read our Swagbucks Review

4. MyPoints ($5 Bonus)

MyPoints is a popular rewards site established in 1996 that offers users the ability to accumulate virtual points in different ways to exchange them for prizes or cash. You can later redeem your points for Amazon gift cards or over 75 other retail and restaurant partners.

5. Worthy Bonds

Worthy Bonds earns a fixed rate of return of 5%, and the cost of the bond is only $10. Buy as many bonds as you’d like and watch as you accrue interest weekly. Bonds have a 36-month term but can be cashed out at any time, without penalty.

6. Public

Public is a social investing app that can build your financial literacy with your friends. Public offers fractional shares of thousands of public companies and ETFs, allowing you to build a portfolio no matter your budget.

Since Public is a social experience, they offer many ways for members to earn free slices of stock (valued up to $10) for referring their friends. Like other apps, each Public member gets a unique share link. Public also makes it possible to share your trades outside the app (even to Instagram stories!), and when you do, and friends join and are approved, you can earn free stock.

You can also earn free stock by inviting friends to chat groups. Once they join and are approved, you’ll also earn free stock for that. The more friends you bring in, the more slices you earn.

7. Acorns ($20 Bonus)

Acorns is a terrific investing and savings app offering $20 after signing up. Acorns can help you track your daily finances, save for the future, and plan an investment strategy that fits your risk profile.

Read our Acorns Review

8. Earny

If you use credit cards or retailer apps, chances are some of the items you buy are subject to price protection policies. This means if the price drops within a certain amount of time of your purchase, you get a refund. Earny hooks up with your credit cards to automatically search for price drops and subsequent refunds. The app takes 25% of the refunds it gets you. But it’s still free money.

Read our Earny Review

9. Rakuten

This cash-back app lets you search for rewards, coupons, and promo codes. If you’re a frequent mobile shopper, installing Rakuten can help you save. The app also gives you push notifications about new deals and sales.

Read our Rakuten Review

10. Google Opinion Rewards

Google Opinion Rewards is yet another survey app that lets you get surveys about once a week. With this app, you get rewards you can use in the Google App Store. The surveys are generally pretty short and can include things like rating different ads.

11. KashKick

Kashkick is a website more focused on playing games and also lets you earn money by watching videos. When you play games on your mobile device and achieve milestones, you earn cash. You can then transfer the cash to your PayPal account.

12. iPoll

iPoll gives you alerts when you qualify to take a paid survey. You can set up your profile ahead of time and then get notifications for surveys for which you qualify. You can also do product reviews, be a secret shopper, or test ads. You’ll get rewards, which you can redeem at iPolls online store.

13. Sweatcoin

Sweatcoin turns your step counter into cash. It tracks your activity and then rewards you with a sweat coin. You can’t turn the digital currency into cash. But you can spend it in the in-app store on goods and services or donate them to charity as cash. It’s an easy way to earn just by walking around.

14. Foap

If you’re constantly snapping photos on your smartphone, Foap could help you make money. You can sell your photos to brands and individuals around the world. You can sell photos you already have in an online portfolio. Or you can go on specific missions to sell photos to brands like Bank of America or Pepsi. Foap lets you cash out your earnings through PayPal.

15. Mercari

Turn your spring cleaning into cash with Mercari. This app-based shop lets you sell everything from toys to clothes. Your listings are free. You just pay a 10% fee when your sale is complete. This is also a great place to buy used merchandise online.

16. Mobee

Want to become a secret shopper? Mobee lets you do it easily. Download the app and then use the map to pick a business. You can complete missions at a variety of retailers and restaurants. You’ll get points for each mission, which you can redeem for gift cards or swag.

17. Offer Up

Offer Up is an excellent way to sell unwanted stuff with ease. Just download the app and then sell pretty much anything. This app is made for local sales of larger items like furniture, but you can also find baby and kid stuff, clothes, electronics, and more.

18. Task Rabbit

If you’re interested in earning money by completing basic tasks and running errands locally, check out Task Rabbit. You can earn money for completing these things for your neighbors and then cash out your money. It could be a good side gig.

19. Ibotta

Use Ibotta when shopping to save with cash-back rebates or earn points for buying your favorite brands. You can also earn by linking your store loyalty cards to the app or sending your receipts to the app after you shop. You can cash in your cash back through PayPal, Venmo, or in the form of gift cards.

Related: Best Game Apps That Pay Real Money

20. Bookscouter

This book app lets you find retail pricing for used books and textbooks. Just use your phone’s camera to snap a picture of the book’s ISBN, and you’ll see what it’s worth online. You can even use the app to create a shipping label for the books you send to Bookscouter. This is a great app if you want to declutter some books, cash in on your used college textbooks, or shop for potentially valuable used books at garage sales and thrift stores.

21. Snapwire

Snapwire is another app that lets you make money from your smartphone photos. This gamified photo-selling app gives you points and lets you level up as you provide businesses with photos. You can use the app to create a portfolio and share photos with whomever you want. You can also get notifications about requests you might be able to fulfill.

22. Decluttr

Decluttr lets you sell specific items that you might have lying around the house. It focuses on CDs, DVDs, and games. You can use the app to snap a picture of the item and get an instant offer for the price. You can ship the items to Decluttr for free and get your money by direct deposit the next day.

23. Checkout 51

Checkout 51 is both a couponing and a cash-back app. It lets you search for and save coupons before you go grocery shopping. Then you can use the app to earn cash back when you purchase your favorite brands.

24. Lyft

As with Uber, Lyft drivers have to apply, and Lyft’s criteria are a bit more stringent. But, still, you can install this app to give rides as you go about your day, which can be an easy way to earn a bit of money on the side.

25. Gigwalk

Gigwalk is geared towards those who want to make a few bucks, but you could also become a full-time Gigwalker. You can use the app’s built-in map feature to find gigs near you. Gigs can include putting together furniture, walking the dog, or running basic errands. Pay and frequency of gigs depend on where you live.

26. Surveys On the Go

Surveys On the Go is another survey app that lets you set up your profile and then take surveys for which you get paid. It lets you rate shopping experiences and products or even review movies or TV shows. You’ll get your first dollar right away when you download the app.

27. Upwork

This is the replacement for the older eLance website. Upwork lets you find gigs similar to the other gig apps mentioned here. But for the most part, these gigs will take place online. You can find work as a virtual assistant, a writer, or a web developer. And you can set up the app to get notifications of job openings and more.

28. Letgo

Do you have more clutter to get rid of? Try Letgo. The app uses image recognition and artificial intelligence to title and categorize items as you list them. You can sell even large items to buyers nearby.

29. Field Agent

With Field Agent, you can get notifications about missions in your area. Your goal is to help companies better serve their customers. You can do this by visiting local stores, shopping for specific products, or taking photos. You can also answer questions or take surveys. You’ll earn cash, which you can receive via direct deposit or Dwolla.

30. Uber

You’ll have to work slightly harder to earn money with this app. Uber driving could be a full-time job if you work it hard enough. For many, though, it’s just a side gig. Consider signing up to drive and then just turning the app on as you go about your day. You might be able to pick up a ride on your way to work or school, for instance, for just a bit of extra money.

How to Make Money with Apps

There are plenty of ways to make money with apps, with some having a more automated process than others. To start, you’ll need to decide which app you want to use and how you want to earn money.

• Cashback – Many cashback portals or shopping browser extensions help you save money on purchases you’ll already make, earning you cash back towards gift cards or straight-up cash.
• Small tasks – Many of these apps allow you to earn money doing small tasks that take a few minutes, such as filling out surveys, watching videos, and even playing online games. Most you can even do while multitasking.
• Larger tasks – Apps like these allow you to set up a profile and advertise your services or choose from a list of gigs you want to get paid for.
• Investing – You can earn money from the amount you invest, which is a pretty passive way to earn money. It doesn’t require a lot of money to start.

Afterward, you simply need to sign up for an account and read through what you need to do to get started. While it might sound a bit boring, reading through their terms and conditions helps know things like how you’ll get paid.

How to Choose the Best App for You

Choosing the best app for you may take some trial and error. First, begin by thinking about how much time you have to devote to the app. For instance, if you’d rather have a more passive option of earning money, perhaps Robinhood, Public, or Capital One Shopping is your best bet, as you don’t have to do much to start getting money from your efforts.

If you have some time to devote and think it might be fun, signing up for an app like Swagbucks or Field Agent allows you to earn up to a few hundred dollars a month without too much effort.

However, if you’re looking to earn more money, going with apps where you can post gigs like UpWork or TaskRabbit is your best bet. That, or invest a larger sum of money in an investment app and let the magic of compound interest work for you.

Scams to Avoid

Sadly, there are scammers out there who will try to pry your hard-earned money from your hands. Remember, if any apps or people are contacting you that require you to pay or spend money for you to earn rewards, run far away. Yes, investing apps will need you to invest money, but you don’t need to pay anything to access your cash. If you’re unsure whether an app is legit, it’s better to be safe than sorry and not sign up for it.

How We Chose the Best Money-Making Apps

We looked through hundreds of apps, evaluating factors such as ease of use, reward thresholds, types of activities, and how long it might take for you to complete tasks. The ones we picked were ultimately the easiest to use, offered great customer support, and helped you earn rewards in exchange for a reasonable amount of time and effort.

Final Thought on the Best Money-Making Apps

There are many ways to make money, and using apps to help you do so can be a smart idea. After all, many of the options on our list are free and don’t require you to spend a lot of time to start receiving perks. Give some of them a chance, and hopefully, you’ll earn a bit of income in no time.

The post The 30 Best Money-Making Apps of 2024 appeared first on Doughroller.

Here, we’ll look at six tax preparation software companies: TurboTax, H&R Block, FreeTax USA, TaxAct, TaxSlayer, and Cash App Taxes. While these aren’t the only names on the market, they’re some of the most well-known. Any of these options could be a good fit for you, depending on your needs and how much assistance you’ll need to safely get through filing your taxes.

Overview of the Best Tax Software

The Best Tax Software

1. TurboTax

TurboTax is one of the most popular online tax preparation options, but it can also get pricey. It offers three service options: DIY, Assisted with live expert advice, and Full Service which offers complete tax preparation.

You’ll find great features and a slick, easy-to-use interface. If you’re nervous about missing something when filing your taxes online, TurboTax may be the software for you. TurboTax walks you through the process step-by-step and offers access to video tutorials and an online community of other users if you have questions.

If you prefer live expert advice with the Assisted option, you follow the same path as the DIY preparation, but you have access to a live professional at any time. TurboTax Full Service provides you with a licensed professional who does your taxes for you.

TurboTax Features

• Auto-fill your W-2 information when you upload a picture of your W-2 form. This can save you some time. Depending on who you work for, just your personal and employer information may be enough to pull your W-2 information into your tax filing automatically.
• A mobile app, that lets you file your taxes on the go or even if you don’t have a home computer.
• Tax assistance from a live tax expert is available with the Assisted and Full Service options.
• Audit Support, which is free for basic answers to questions if you’re audited at any point after filing your taxes. You can also choose to pay for additional audit support called TurboTax Audit Defense, which would then give you access to a professional who would take care of most of the proceedings in case of an audit.

TurboTax Pros

• Plenty of options to file
• Provides a simple walkthrough if you decide to do your taxes yourself
• You can start with the cheapest option and easily upgrade as you go if necessary
• Excellent customer service

TurboTax Cons

• Pricing is higher than competitors
• No option for face-to-face assistance

TurboTax Cost

How much TurboTax charges depends on how complicated your return is and how much access to a tax professional you want to have. The plans are DIY, Assisted, and Full Service. The free plan is for simple tax returns only.

DIY offers no tax help while Assisted allows you to speak with a tax pro and ask questions about your taxes. Full Service means that a TurboTax tax expert will do your taxes for you.

• DIY: $0 – $89
• Assisted: $0 – $169
• Full Service: $169 – $359

TurboTax Is Best For Easy Filing

TurboTax is excellent for anyone who wants to do their taxes. If you qualify for the free filing, it’s a no-brainer. You can always upgrade to the Assisted option if you feel more comfortable having immediate access to a specialist for help.

Read our TurboTax Review

2. H&R Block

With H&R Block, you can drag and drop last year’s return into the program, and you’re ready to prepare your taxes. They offer various options for taxpayers, including investors, business owners, or taxpayers looking to maximize deductions. 

H&R Block Features

• You can add online live assistance and screen sharing to any plan starting at $70.
• In-person assistance is available at H&R Block locations.
• The free plan is open to more people including students or anyone with a 1040 and Schedules 1 and 3.
• You can receive your refund on Spruce, a mobile banking app from H&R Block, that comes with a debit card.
• A mobile app is available. You can file your taxes right from your phone.
• The free version allows you to file in more than one state for no additional cost.
• Has a version specifically for expats. So if you are living overseas this might be the best tax software for you.

H&R Block Pros

• It’s easy to import last year’s tax return if you used another service
• Plenty of affordable options

H&R Block Cons

• No phone or live chat support if you use the free version
• There are a lot of add-ons that for many people are necessary, making the cost higher
• Your online professional won’t necessarily be a licensed CPA

H&R Block Cost

H&R Block offers four pricing tiers:

• Free version for simple tax returns – $0 for federal and $0 for each state return
• Deluxe for those that don’t qualify for the free version – $35 and $37 for each state return
• Premium for investors and real estate owners –  $60 and $37 for each state return
• Self-employed for anyone who owns their own business or freelancers – $85 and $37 for each state return
• Plans with tax assistance start at $89.

Expat plans are as follows:

• DIY returns start at $99 plus $49 per FBAR, $99 per state return
• Advisor-assisted plans start at $199 plus $99 per FBAR, $125 per state return

H&R Block is Best For Experienced Filers 

H&R Block is TurboTax’s largest competitor, but it’s not as user-friendly as TurboTax. If you don’t need the simplified walkthrough that TurboTax offers, H&R Block is a good option, and the pricing tiers are more affordable.

H&R Block is a trustworthy name if you want to have your taxes done in person, but its software is also a good option. It’s still not quite as intuitive as TurboTax, but it’s getting there. It also offers the option to get live tax help while you’re filing your taxes at home.

Read Our H&R Block Review

3. FreeTaxUSA

FreeTaxUSA is extremely affordable for all tax situations and only charges $7.99 for the Deluxe plan with live chat assistance if you have questions. The Deluxe version handles tax forms that most software doesn’t handle until you pay for the premium or self-employed version. This includes Schedule C for self-employment, Schedule E for rental real estate, and Schedule D for capital gains.

You can also get access to a tax pro for $39.99.

FreeTaxUSA Features

• Free tech support via email, or if you pay for the deluxe version via chat.
• Support for most tax forms, even with the free basic version.
• An accuracy guarantee that will pay interest and penalties assessed by the IRS due to a calculation error in their software.
• Cheaper than average state returns

FreeTaxUSA Pros

• The Deluxe plan comes with valuable live chat support for a low price tag.
• The Pro Support option is also affordable for the ability to talk with a CPA/EA.

FreeTaxUSA Cons

• Face-to-face support is not available.
• There’s no mobile app.

FreeTaxUSA Cost

FreeTaxUSA has three price points. All plans cover the same tax situations but the Deluxe version adds a few extra features such as tax assistance and unlimited amendments. The Pro Support plan gives you access to call a CPA/EA if you have any questions.

• Free: $0 for federal and $14.99 for each state return
• Deluxe: $7.99 for federal and $14.99 for each state return
• Pro Support: $39.99 for federal and $14.99 for each state return

FreeTaxUSA – Best for Low-Cost Filing with Live Chat Support

The Deluxe plan is only $7.99 and offers live chat with a tax specialist if you need help along the way. If you need personalized tax advice, you can pay $39.99 for Pro Support.

Read Our FreeTaxUSA Review

4. TaxAct

TaxAct doesn’t get nearly as much recognition as its competitors but it also has a good interface and can help you find deductions to save money. The program offers many great features and lower prices than TurboTax and H&R Block.

TaxAct’s process isn’t quite as guided and foolproof as TurboTax. But if you know which income and deductions you’re going to file, it’s easy to use. It may not be as fancy as the others, but it gets the job done and leaves more money in your pocket. 

TaxAct Features:

• You can pay an additional cost of $39.99 to file with an expert for live support.
• Offers pro tips throughout the process to help you make the most of filing your taxes.
• Provides personalized advice for next year’s taxes to make it easier for you.
• Mobile App available for Android users and on the Apple Store in some regions.
• TaxAct inspects returns for incomplete information, errors, and additional savings opportunities.
• Offers Audit Defense for an additional fee.

TaxAct Pros

• You can import last year’s taxes even from other programs
• Has a ‘double-check’ feature that ensures you didn’t miss anything

TaxAct Cons

• The free plan is very limited and students with student loans don’t qualify
• It doesn’t offer step-by-step guidance like its competitors

TaxAct Cost

TaxAct has four plans depending on how complex your taxes are.

• Free – Only for taxpayers with the simplest tax returns – $0 for federal and $39.99 for each state return
• Deluxe – For most other taxpayers with itemized deductions – $24.99 for federal and $44.99 for each state return
• Premier – For stock and real estate investors – $34.99 for federal and $44.99 for each state return
• Self-Employed – For freelancers, contractors, and business owners – $64.99 for federal and $44.99 for each state return

TaxAct – Best for Several Affordable Options with Expert Assistance

TaxAct can be great software if you’re sure of how to file your taxes and don’t need a lot of help. If you do need extra support, it offers expert assistance for a reasonable cost.

Read Our TaxAct Review

5. TaxSlayer

TaxSlayer offers lower prices but at a cost–there’s less support throughout the process. If you’re confident in your ability to file your taxes, you might find TaxSlayer good enough for you. If you’re a freelancer or self-employed, you’ll also find TaxSlayer’s Self-Employed version is one of the most affordable options on this list.

TaxSlayer Features:

• Phone and email support is available for the free version.
• Offers the most affordable option for self-employed individuals out of the competitors in this list.
• Active duty military can file for free.
• Free email, chat, and phone support if you have technical problems with the software.
• Only offers audit support on the Premium edition.
• Ask a tax professional questions about the Premium and Self-Employed plans.
• Access to the Classic edition of TaxSlayer for free for military members and active-duty military families, state fees still apply.

Pros

• Its free version works for students
• Lower cost than most competitors
• The free version includes a free state tax return

Cons

• More complicated to follow if you are not confident in filing your taxes
• It will require more work since uploading or importing documents is not available with the free version

TaxSlayer Prices:

TaxSlayer has four plans. Free and Classic do not offer any tax assistance from a live tax expert. Premium and Self-Employed both offer unlimited tax support from a tax expert.

• Simply Free for simple tax returns including students – $0 for federal and one free state return
• Classic works for anyone except the self-employed – $34.95 for federal and $39.95 for each state return
• Premium works for any situation except self-employed and includes live chat, skip-the-line phone support, and email support – $54.95 for federal and $39.95 for each state return
• Self-employed is for anyone who owns their own business or for freelancers – $64.95 for federal and $39.95 for each state return

TaxSlayer – Best for Military and Self-Employed 

If you know what you’re doing, TaxSlayer is the best option for active-duty military since it’s free and for self-employed individuals since it’s affordable. You’ll pay lower fees than competing tax preparation software companies and get what you need to file your taxes on time.

Read our TaxSlayer Review

6. Cash App Taxes

Cash App Taxes, formerly Credit Karma tax, is a 100% free tax software platform. It’s best for people with basic tax returns, but it can be used by those who itemize their deductions or are self-employed. It doesn’t come with any tax assistance, not even for an additional fee. However, it does offer audit defense for free.

Cash App Features:

• No paid tiers. Everyone files taxes for free.
• The mobile app is available for filing taxes.
• Audit defense included. This includes not only the ability to ask questions but they will also represent you to the IRS.
• No tax assistance from a tax professional.
• Tech support is email only.

Pros

• It doesn’t cost anything for anyone
• Provides free audit defense
• Easy to use – most people file in a short time
• Access to your refund up to six days faster if you deposit it in the Cash App

Cons

• Doesn’t work for all tax situations (most complex situations)
• Less support than other programs provide
• You’ll need to download the Cash App first and then file on your phone or computer

Cash App Taxes Price

Cash App has a pretty straightforward pricing structure. It’s free.

Cash App Taxes – Best for Free Filing

If you’re somewhat comfortable filing your taxes and don’t have any highly unique circumstances, Cash App Taxes can be an excellent option for you, and it’s completely free!

Read Our Cash App Taxes Review

Which Tax Software Is Best?

If your tax filing situation is relatively basic, any of these options could work for you –especially the free versions. However, some have features that might win out over competitors, including:

• TurboTax’s superior guide: TurboTax is known as one of the most user-friendly options on the market, as it will guide you through every step of the process so you don’t miss anything. It also bookmarks where you leave off if you file your taxes in several sessions.
• H&R Blocks’s in-person option: H&R Block is the only company on this list that offers actual in-person advice.
• TaxAct and TaxSlayer’s balance of pricing and guidance: TaxAct seems to offer more guidance than the other cheaper options on the market, so if you’re willing to pay slightly more for this extra guidance, it’s a great option. TaxSlayer offers tax assistance for relatively cheap.
• FreeTaxUSA’s and Cash App Taxes’ pricing: These are the cheapest options on the market. Check each one for the tax forms you need before you decide which super-cheap option to choose.

There’s quite a bit to consider when deciding which tax software to use, especially if you’ve never used one to file your taxes before.

Again, if you’re a DIY tax pro – meaning you’ve successfully filed your taxes before and don’t mind the process – any of these choices are worth considering. If you’re new to the DIY route, investing in an option that is user-friendly and offers solid customer support and guidance is probably your best bet.

What Is the Cost of Tax Software?

Based on the pricing information we have obtained for this review from the six tax software programs included, the cost can range from $0 to $399.

However, this doesn’t mean that free or low-cost tax software will be the best choice for you. Higher-priced software covers a much wider variety of tax situations. For example, the highest-priced plans can cover situations like self-employment and rental real estate. In some cases, the final cost may be higher than the stated cost, which is only a base price. In the case of both TurboTax and H&R Block, you’ll have the option to turn the tax-preparation job over to professional tax preparers for an additional fee. You may also pay extra for a specific audit defense package.

Cost is always an important factor in evaluating tax software, but only to the degree that the software in question will adequately enable you to prepare your returns.

Free Tax Software

If you have a simple tax situation, with just W-2 income and the standard deduction, then you can choose any tax software you want as they all offer free tax prep for simple returns. Note that FreeTax USA charges $14.99 for each state return and TaxAct charges $39.99 – $44.99. However, if you have a simple return and need to file in multiple states consider H&R Block since it allows you to file more than one state return for free.

If you have a more complicated tax return to file but feel confident in your ability to DIY your return then consider Cash App or FreeTax USA. Both offer free (or low-cost) returns for more complicated taxes. FreeTax USA offers access to a tax professional for just $39.99. It’s not free, but it’s still hard to beat.

Other Ways to File for Free

1. IRS Tax Volunteers VITA and TCE 

VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) are reliable and trusted sources for preparing tax returns. All VITA/TCE volunteers must take and pass tax law training that meets IRS guidelines. To use the program, though, you must meet specific eligibility requirements.

Eligibility Requirements

• Earn $60,000 or less per year
• Have a documented disability
• Don’t speak English as your first language
• Be over 60 years old 

Pros

• Free access to qualified tax help
• Helps you understand your tax rights

Cons

• Only certain people are eligible
• The software isn’t operated by the IRS (although they manage it)

Unique Features

• You get 100% free tax help
• You can file your taxes and just ask for their guidance if you prefer
• You can e-file for free

Cost

The software is entirely free.

VITA and TCE – Best for the Elderly and Low-Income Filers

You must meet the eligibility requirements to use the program, which means you must be elderly or have a low income to qualify. 

2. IRS Free File

The IRS Free File offers a couple of options to file your taxes for free. To qualify, you must make less than $73,000 a year for guided tax preparation online. For free fillable forms online, though, you can use the software no matter your income.

Pros 

• It’s free
• There’s no income limit to access the fillable forms

Cons

• You must be able to file your taxes without help if you make more than the income limit
• Doesn’t provide error checking

Unique Features

• You get access to all tax forms for free
• There are line-by-line instructions available
• You’ll receive confirmation when the IRS accepts your form

Cost

It’s free for everyone.

IRS Free File – Best for the Thrifty Filer

If you’re comfortable filing your taxes and don’t need any support, you could file your taxes free, saving yourself money.

Best Tax Software for Investors

Investors tend to have more complicated tax returns, especially if you’ve sold investments during the year. This means that you likely need to pay for tax software to prepare your taxes.

If you are comfortable filing without any tax assistance from an expert then aim for the cheapest version that will suit your needs, such as FreeTax USA. However, taxes where you have real estate investments or you, have sold stocks during the year, either at a gain or a loss are complicated and it’s normal to have questions along the way.

Here are the plan levels for investors:

TurboTax – DIY without assistance it’s $0 to $89 for federal and $0 – $39 for state (depending on if you qualify for a free federal return). With tax assistance, it is $0 – $169 for federal and $0 – $49 for each state.

H&R Block – Premium without assistance is $60 for federal and $37 for each state return. It doesn’t say what their plans for investors will cost with assistance, but it starts at $89 for federal with state returns being an additional fee.

FreeTax USA – The free edition covers all tax situations, including investing income or losses, for $0 for federal and $14.99 for each state return. If you want to add tax assistance with a tax pro it will cost $39.99.

TaxAct – Premier with assistance is $74.98 for federal and $44.99 for each state return.

TaxSlayer – Classic without assistance is $34.95 for federal and $39.95 for each state return. Tax assistance comes with the Premium plan for $54.95 for the federal and $39.95 for the state.

Cash App Taxes– Free for both federal and state, but does not offer any tax advice.

What Is Tax Software?

Tax software is an online, automated tax preparation application. Each program has different features. Some walk you through step by step, while others leave you on your own but offer the option to pay for live support. The best tax software for you helps you file your taxes with confidence and with the guarantee you need for peace of mind, including audit defense if you’re concerned about an audit.

In a best-case scenario, a simple return can be completed in as little as a few minutes, while a more complicated one may be done within no more than two hours.

The major advantage of tax software is the ability to prepare your income tax returns – both federal and state – without paying the higher cost of a live tax preparer.

How to Choose the Best Tax Software for You

Look at the features of each tax program to decide which is the best tax software for you. Each program has different features and different pricing.

Think about your tax situation, what forms you’ll file, and what level of support you need. If you don’t need a lot of support, you can choose a less expensive option. If you need more help, though, there are plenty of programs that offer one-on-one support or at least a thorough walkthrough to help you file your taxes correctly.

Never look simply at the cost of tax software. Yes, price matters, but what’s equally important is the ability of the specific software to accommodate your personal tax situation.

For example, the lower-cost plans and providers are generally designed for people with relatively simple tax situations. If you’re a straight W-2 employee with employer-paid healthcare, a simple retirement plan, and planning to take the standard deduction, you don’t need much. The most basic version of any of these tax software options would likely work for you.

Or you may have W-2 income, interest and dividends, a relatively modest amount of capital gains, itemized deductions, and deductions and credits specific to dependent children. Virtually any medium-level tax software should be able to accommodate this tax profile.

But if you are an investor who trades frequently, or engages in more complicated investment ventures, or if you’re self-employed or own rental property, you’ll need to look at the more advanced software.

You may also want to look at the long-term benefits, like audit security if your audit risk is high or file storage if you plan to use the same tax software year after year.

As a general rule, TurboTax and H&R Block are best suited to complex tax situations. This is not only because they can accommodate more tax profiles, but also because they are strong on support. This can extend to preparing your income taxes directly should you decide the job is beyond your time or knowledge constraints, as well as offering a comprehensive defense in the event of an audit.

Finally, in choosing the right tax software for you, carefully evaluate your understanding of federal income taxes. Most tax software is user-friendly and can help you prepare your return. Even if you have no previous experience with tax preparation, it is important to know your limits.

Should I Hire a Tax Professional? 

While tax software is designed for the majority of people, it won’t be the right solution for everyone. If you have a complex situation, own a small business, or don’t know the first thing about filing taxes, it’s best to hire a tax professional. 

If there are any aspects of your tax situation that you do not understand, you may be better served by working directly with a paid tax preparer, including a certified public accountant (CPA) if necessary.

Frequently Asked Questions (FAQ)

Final Thoughts on the Best Tax Software

The sophistication of tax software is increasing with each year. Tax software can now do nearly all the functions of a live tax preparer and do it for a lot less money. Even if you’ve never prepared your taxes before, you’ll almost certainly be able to do the job now using the right tax software.

You don’t need to know anything about taxes, the software can walk you through the whole process. You won’t even need to check your numbers – the software can also do that for you. And if you’re missing any information, the software can let you know.

If you’re tired of paying a live tax preparer to do your taxes, let this year be the one you start doing the job yourself. Do it once and you’ll find out just how easy it is. And once you do, you may never go back to a live tax preparer again.

The post The Best Tax Software for 2024 – (Tax Year 2023) appeared first on Doughroller.

While the 20% expected down payment is (mostly) a thing of the past, you’ll still need a hefty sum to purchase your home — especially in today’s market. You’ll also need to account for closing costs and other fees in your savings plan.

Wondering how much you’ll need to save before you buy your first home? Consider these questions when setting your home savings goal.

How much house can you afford?

How much you’ll need to save for your home depends on how much you plan to spend. One rule of thumb is to spend about 2.5 to 3 times your annual income on a home. So if you bring in $60,000 a year, shoot for a home that’s worth $150,000-$180,000. If you make $100,000 a year, a home worth $250,000-$300,000 is a good number.

This rule of thumb is merely a starting point. If you’re carrying a lot of debt, or your area has high real estate taxes, or if you want to live well under your means to achieve another financial goal, like early retirement, then you may want to aim for a smaller one.

Remember, you don’t have to sign on the dotted line for a mortgage at the very top of your budget. There’s something to be said for an affordable but comfortable starter home.

How big of a down payment do you need?

The longstanding benchmark when buying a home is that you need a 20% down payment. While that is a solid goal to aim for, it’s not always necessary. These days, down payments range from zero down up to 20%.

While zero-down mortgages are rare, they do exist. VA and USDA both offer zero-down mortgages, but you must meet the requirements to be eligible. And just because you qualify for a zero-down mortgage doesn’t mean you’ll be stuck paying private mortgage insurance (PMI). Both VA and USDA loans offer exemptions to this.

Fannie Mae’s HomePath and Freddie Mac’s Home Possible are two mortgage programs that offer 3% down mortgages. HomePath mortgages are for homes that have gone through foreclosure and are owned by Fannie Mae. Home Possible loans are reserved for buyers under a certain income threshold (80% of Area Median Income).

FHA loans require just a 3.5% down payment. Backed by the Federal Housing Administration, these loans come with one major caveat—you’ll have to pay PMI for the life of the loan or a specified period, and the only way to get rid of it is to refinance to a conventional loan. 

If you don’t qualify for any of the above, you’re most likely looking at a conventional mortgage. With it, you’ll likely pay between 5-10% as a down payment, plus closing costs. And don’t forget about PMI. You’ll have to pay this until you’ve reached 20% equity in your home.

How much are we talking for a down payment, numbers-wise? Let’s say you purchase a home that’s $200,000, with a 10% down payment of $20,000. According to this calculator, with today’s interest rate of 7.59%, your closing costs for a 30-year fixed, conventional mortgage ring in at $6,316.25. This includes underwriting and processing fees, appraisal, titles, closing and escrow, and taxes. So to purchase a $200,000 home, you’d need to save approximately $26,316.25.

What if you get a VA loan for $300,000 for a 20-year, fixed-rate mortgage, and that interest rates go down a bit, to 5.5%? You wouldn’t have to pay PMI or pay a large down payment, but you’d still be on the hook for closing costs. Expect to pay around $8,107 to get into your new home.

Now we are bumping up the purchase price of a home to $400,000 while securing a conventional mortgage with 2018’s 4.54% interest rate. (We can dream, can’t we?) After putting 8% down, it would still leave you with a $33,200 down payment, plus closing costs, for a total savings needed of $42,955.89.

How much will you pay in fees and closing costs?

When you buy a home, you’ll have to pay more than just the down payment. You’ll also be responsible for covering closing costs, which can be between 2-5% of the home’s total purchase price.

What are closing costs? Closing costs include mortgage fees, attorney’s fees, property appraisals, and taxes.

You may be able to get some help with closing costs. If you buy with an FHA loan, they may be included in your 3.5 percent down payment. Plus, many state homeownership programs offer assistance with closing costs.

What other costs should you consider?

Unfortunately, your down payment and closing costs aren’t the end. When saving for a home, you’ll also need to factor in some other costs. These include home inspections, legal fees, and a title search.

Remember that not all of these costs are the homebuyer’s responsibility. The home you buy, the lender’s requirements, and other factors will determine which costs you’ll have to pay. Still, they can add up, so you’ll want to take them into account when saving for a home.

The cost of moving is another big one. The average cost of a long-distance move is $4,300, but that number can vary if you opt for a more full-service approach or if you plan to pack, load, and unpack yourself.

How do I know if I’m ready to buy a house?

This answer will be different for everyone, but there are a few things to consider. First, if you can’t save up for a down payment of at least 10%, that could be a sign that you’re ultimately getting into an unaffordable mortgage. This doesn’t mean that you have to opt for the 10% down payment — it just means you have the funds to do so.

Second, calculate how much your mortgage payment will be each month and factor that into your budget. You may want to rethink things if it’s significantly more than what you’re paying for housing now.

Third, check in on your credit. If your credit score is lacking, it may be a sign to wait to buy. Lower credit scores often translate into higher interest rates on your mortgage, which means it will take you longer to start making a dent in the principal of your loan.

One of the easiest ways to check your credit score and quickly improve it is with Experian Boost®. It’s free to use and after you’ve signed up, Experian will check to see if you have things like rental payment history on your credit report that can be used to show good credit use and improve your score.

Frequently Asked Questions (FAQ)

The Bottom Line

There’s no magic number to sock away for a home purchase. You’ll have to run those calculations on your own, taking into account your earnings, debt, and down payment. And don’t forget about closing costs, home inspections, and legal fees.

Once you do have your magic number, you can start working toward your goal of homeownership. And you can do so with peace of mind that you are opting for a home that you’ll not only love but that you can comfortably afford.

The post How Much Should You Save for a Home? appeared first on Doughroller.

Quicken is a budgeting software that can help you manage it all. They’re the oldest personal finance management software company and have been helping consumers pull financial reports longer than anyone. We’re going to take a deep dive into Quicken and see whether or not paying a small monthly fee is worth the features they provide.

Quicken Review 2024

Quicken is basically accounting software but for personal use. At its core, it is a budgeting tool but it doesn’t stop at budgeting. You will set a budget, with categories, limits, savings goals, etc., and then track all of your income and expenses against this budget by categorizing and tagging transactions.

By linking your bank accounts to the software your transactions will pull in automatically making it very easy to track your income and outflow. It will also track your bills and, depending on the package you choose, allow you to pay your bills right inside Quicken.

It also has investment tracking features, as well as revenue and expense tracking for a small business or rental property.

Where Quicken really shines is in its reporting capabilities. You can pull reports for just about anything you’d want to see.

Quicken Pricing and Fees

Quicken has several plans, each with different levels of features. They include:

• Simplifi – per month
• Quicken Deluxe – $2.50 per month
• Quicken Classic – $3.50 per month
• Quicken Home and Business – $5.00 per month

All plans can be used on the desktop or mobile app and come with phone and chat support.

If you want the basic features such as creating a budget and tracking your spending either Simplifi or Quicken Deluxe will work for you, although with a discount for paying annually, the Deluxe version is almost the same price as Simplifi and gives you a lot more features.

Premier and Home and Business is where the feature really starts to pick up. Premier is best for users who also want to track their investments and Home and Business adds-on features that will help you file taxes if you own rental property or a business.

Your Quicken Dashboard

Your Quicken dashboard is where you can get a quick view of the information that is most important to you. You have various “cards” you can choose to show on the Dashboard and then each of those cards can be customized so you are seeing exactly the info you want.

For example, you could choose to see your expenses compared to your income. Or how much you’ve spent at various retailers or vendors. You could also add a card for your top investment performance or track your net worth over time.

[Image quicken spending categories]

Tracking Income and Expenses with Quicken

Tracking your income and expenses is at the heart of Quicken.

With all levels of Quicken, you can create a budget and plan your spending. If your accounts are connected to Quicken the software will automatically pull in all of your transactions. You can then categorize and sort these transactions against your budget so you always know where you stand in each category.

Quicken allows you to create custom categories, tag transactions so you can see all types of transactions easily even if they are in different categories, split transactions in multiple categories, and add notes to transactions.

You can also use Quicken to track and pay your bills. All plans will allow you to track your bills and project your cash flow, however only Premier and Home and Business have access to the bill pay service within Quicken.

How Does Quicken Help You Plan Your Future

Quicken’s robust budgeting features ensure that you are using your money to reach your financial goals. You can set spending and savings goals and track your progress against those. You can also forecast and do long-term planning within Quicken.

Every level of Quicken, except for Quicken Starter, will track your net worth, loan, and investment balances, including any 529 accounts, 401(k)s or IRAs, and your home value. Home and Business will even pull your home value directly from Zillow.

Using Quicken for Investment Tracking

If you want to track investments via Quicken Premier or Home and Business is likely your best bet. Simplifi and Dexlue have some basic investment tracking features, such as pulling in your balances across various institutions, but the higher-level plans are where it gets interesting for active traders.

Premier Home and Business both display live security prices which update every 15 seconds. They also allow you to see what the tax implication of buying or selling a security would be, including a “what if” calculator for estimating capital gains. You can also use Morningstar’s Portfolio X-ray tool right inside Quicken.

Read more: Best Way to Track Your Investments Online for Free

Tax Help with Quicken

Quicken makes tracking your expenses easy, which in turn can make your taxes a lot easier. Being able to categorize and tag transactions lets you quickly run reports and see all of your deductible expenses.

For example, you could tag your charitable giving and unreimbursed work expenses throughout the year and then run a report at tax time that will give you the details you need to file for those deductions.

If you want real help with your taxes you’ll likely want either the Deluxe, Premier, or Home and Business options, these packages offer. These packages offer more specialized tax help.

For those who itemize, Deluxe, Premier, and Home and Business will even create your schedule A reports.

If you use Quicken to track your investments you’ll also be able to see your capital gains. If you have interest or dividends you need to report, Deluxe, Premier, and Home and Business can also create your Schedule B reports.

The Home and Business package also can create your Schedule C report so you can report your small business income and Schedule E if you need to report income from a rental property.

Starter, Deluxe, Premier, and Home and Business will all import into Turbo Tax to make your taxes even easier.

Quicken Reports

Quicken has a robust reporting feature. You can get a multitude of reports, anything from your net worth to how much you spent on pizza last year — and how that compares to previous years.

You can run reports over any chosen time period and cover just about any data points you need. The reports are customizable and you can save your favorites so they are easy to run again with all your individual preferences so you don’t have to customize them each time.

How to Get Started with Quicken

To sign up for Quicken, you just have to create an account at Quicken.com, decide which version you want to use, and download the desktop version. You’ll want to download the desktop version even if you plan to use Quicken mainly on the web. The two are synced, so having the latest desktop version ensures that everything works properly online.

Once you’re in, you can walk through each tab to set up Quicken, including syncing it with your bank accounts if you decide to do that.

Quickens Synchronization

Quicken actually has a couple of different types of synchronization. One is with your bank, should you choose to use it, and one is to the Quicken Cloud.

Quicken Bank Synchronization

Quicken can securely sync with your bank and investment accounts if you choose to set this up. This means it can automatically pull in balances, transactions, and investment performance. In my opinion, this is one of Quicken’s strengths. Many people are more likely to stick to budgeting each month if they don’t have to hand-enter transactions. Here’s more information from Quicken on syncing your accounts.

Note, though, that you don’t have to set up Quicken to sync with your bank accounts. You can do all of the transactions manually if that’s your jam.

Quicken Cloud

The Quicken Cloud keeps your data in sync between the desktop version, Quicken Mobile, and Quicken on the web. If you want to keep your data on the desktop only, you can turn it off if you’d prefer. However, it is a convenient option for ensuring you can access your financial information wherever you are.

Is Quicken Safe to Use

Yes, Quicken is safe to use. It uses bank-level security, so it’s as safe as any banking online you already do. Quicken provides a secure encryption technology that scrambles your personal information and financial data while it’s sent over the internet. It also uses multiple firewalls and checks to ensure that your data stays secure. You can also password-protect your data files in Quicken for an additional layer of security.

At the same time, it’s important to remember that no online system is completely risk-free. You should always be aware of who has access to your account and take measures to protect yourself from fraud. Make sure you use a strong password and change it frequently, never share your login details with anyone, and review your account activity regularly. By following these steps, you can help ensure that your Quicken account remains safe and secure.

Quicken Security

As with many financial products, Quicken uses bank-level 256-bit encryption to keep your data secure. It also uses multiple firewalls and checks to ensure that your data stays secure as it’s coming into Quicken. You can also decide to password-protect your data files in Quicken for an additional layer of security.

Quicken for Mobile

Quicken does have a mobile app that works with Apple and Android phones. The app is similar to the web service. It gives you access to your most important financial dashboards and data. On mobile, you can store receipts via your phone’s camera and enter transactions as you spend. You can also check out your budget to ensure that you’re not overspending when you’re out and about.

As with the desktop and web versions, the mobile app is protected by a passcode and 256-bit encryption. You can also add more protection using Face ID or Touch ID.

You can’t completely run and set up Quicken from your mobile app. But if you get everything set up on the desktop version, you can do the most essential financial data entry and management from mobile.

Quicken Pros and Cons

Pros

• Robust budgeting tools
• Bill tracking, reminders, and bill pay. Always know what is due and when.
• Automatic net worth tracking. It will pull in balances from a wide variety of accounts and display them all in one place.
• Full reporting capabilities. Quicken has a large variety of fully customizable reports.
• Forecasting and long-term planning capabilities. You can see how different choices will play out over the long run.

Cons

• Relatively expensive, a lot of what Quicken does can be done with free tools but not all in one place.
• Can be overwhelming. Quicken has a lot of features and options which can lead to a learning curve.
• Not as intuitive as competitors.

Quicken Alternatives

Rocket Money

Rocket Money does a terrific job of detailing your daily spending while offering excellent budget tools to keep your finances in order. The platform charges between $4 and $12 a month for its premium services (you choose within that range how much to pay) but does offer its basic service for free.

You can set up automatic alerts and with the premium service, request your subscriptions to be canceled (or reduced in price). I prefer the Rocket Money dashboard to the Quicken dashboard but both are excellent options. With Rocket Money, you can link an unlimited number of personal accounts.

Read our Rocket Money Review

Tiller

Tiller is another personal finance budgeting platform but it’s a little different than both Quicken and Mint. Tiller allows you to create spreadsheets that you can customize in any way you desire. After connecting your financial accounts to Tiller, the software will automatically update your spreadsheets every day. You receive the information you want, in the way you want it.

Tiller offers a 30-day free trial to start, which allows you some time to play around with your spreadsheets and design the best delivery method possible. You do have to have a little bit of Excel knowledge in order to take full advantage of Tiller and after the free trial ends, the cost is an annual fee of $79.

Read more: Alternatives to Quicken that are Easy to Use

Bottom Line

Quicken is an old hand at the budgeting and financial management game, and it seems to be doing a better job in the last couple of years of keeping up with its newer competitors. It does basically everything you would need a financial management tool to do, including managing both budgets and investments.

With that said, it can have a steep learning curve because it is so robust, so if you don’t want to spend a lot of time managing your finances at first, you might opt for a simpler, more streamlined system.

Quicken

Abby Hayes

Features

Mobile App

Pricing and Fees

Account Integration

Security and Customer Service

Summary

Quicken is a leader in the personal finance management space and their software plans to track and manage your budget are an excellent choice.

4.2

Give Quicken a Try

The post Quicken Review 2024 – Personal Finance Software appeared first on Doughroller.