We’ve found the best business checking accounts for freelancers and entrepreneurs, spotlighting those catering to their unique needs. From accounts that offer seamless integration with popular payment systems to those providing invaluable financial advice and low-fee structures, we’ll help you make an informed decision that supports your business’s growth and financial health.

Best Business Checking Accounts For Freelancers and Entrepreneurs

1. Bluevine

The Bluevine Business Checking account is an innovative financial solution tailored specifically for freelancers and entrepreneurs. Designed to meet the unique needs of small business owners, it offers a suite of features that promote ease of use and financial efficiency. Notably, it provides a high-yield interest rate of % on balances up to $100,000, which is rare in business banking.

This means that freelancers and entrepreneurs can earn more from their savings, helping to grow their businesses faster. Additionally, the account boasts no monthly fees, minimum balance requirements, and unlimited transactions, ensuring business owners can manage their finances without worrying about unnecessary costs.

BlueVine’s business checking account is highly regarded for its user-friendly online banking platform and efficient mobile app, allowing seamless fund management, invoice generation, and payment processing. The convenience of having a digital-first banking experience means that freelancers and entrepreneurs can focus more on their core business activities rather than being bogged down by complex financial management tasks.

With the integration of advanced security measures, BlueVine ensures that its clients’ financial assets are protected at all times, providing peace of mind alongside its financial services.

Read our Bluevine Review

2. Chase Business Complete Checking

The Chase Business Complete Checking Account is a comprehensive checking account designed to meet the diverse needs of freelancers and entrepreneurs. It offers a balanced mix of features to support the financial operations of small businesses, including low minimum balance requirements to avoid monthly fees and various ways to waive these fees entirely, making it accessible for businesses at various stages of growth.

When you open a Chase Business Complete Banking Checking Account, you’ll earn $300 for completing qualifying activities. This includes:

1. Deposit $2,000 in new funds into your account within 30 days of offer enrollment.
2. Maintain at least a daily balance of $2,000 for 60 days.
3. Complete five qualifying transactions within 90 days of offer enrollment.

What makes the Chase Business Complete Checking Account particularly appealing to freelancers and entrepreneurs is its integration with other Chase business services, including merchant services and business credit cards, which can streamline financial management and potentially offer rewards that benefit the business.

The account also supports QuickAccept, a feature that allows businesses to accept card payments directly through the Chase Mobile app or a contactless mobile card reader. This facilitates immediate cash flow, a critical factor for small businesses’ success.

Read our Chase Business Complete Checking Review

3. Found Business Checking

Found Banking is a modern financial platform designed for freelancers and entrepreneurs. It offers a suite of features tailored to the unique needs of independent business owners. This digital-first banking solution stands out for its no-fee model, which includes no monthly fees, minimum balance requirements, or overdraft fees.

Found’s standout feature is its built-in accounting software, which automatically categorizes transactions for tax deductions, tracks expenses, and generates financial reports. Integrating banking and accounting functions in one platform simplifies financial management, saving users valuable time and effort.

For freelancers and entrepreneurs who juggle multiple responsibilities, Found Banking’s ability to issue invoices directly from the account and its real-time tax savings suggestions are particularly beneficial. The platform estimates taxes on each deposit made into the account, helping users set aside the right amount for tax payments and avoid year-end surprises.

Additionally, the ease of setting up and managing a Found account and its powerful expense tracking and tax planning tools make it a great choice for those looking to streamline their financial operations. Found’s focus on providing a comprehensive, hassle-free banking experience helps the self-employed focus more on growing their businesses and less on managing their finances.

4. Novo

Novo Business Banking emerges as a compelling option for freelancers and entrepreneurs seeking a modern, efficient way to manage their business finances. This digital-only platform is designed to cater to the needs of small business owners, offering a robust, no-fee checking account that eliminates common banking nuisances such as monthly fees, minimum balance requirements, and transaction fees.

Novo sets itself apart with its easy integration with popular business tools and services, including Stripe, Shopify, and QuickBooks, facilitating seamless financial operations and simplifying reconciliation. This integration capability makes Novo an exceptionally versatile banking solution, allowing entrepreneurs to connect their financial accounts with their operational tools, streamlining their business workflows and improving efficiency.

The account has many unique features, like the ability to send invoices directly from the banking app and access to a reserve feature to set aside funds for taxes, expenses, or savings. These tools are designed with the user’s financial health in mind, providing a straightforward way to manage cash flow and prepare for future expenses.

Novo’s responsive customer support and straightforward, mobile-optimized banking experience ensure that business owners can manage their finances effectively and with minimal hassle, regardless of where they are. By focusing on the specific needs of small businesses and integrating with key financial and operational platforms, Novo Business Banking positions itself as a valuable partner for entrepreneurs and freelancers aiming for growth and financial stability.

Read our Novo Review

5. Lili

Lili Business Checking is a forward-thinking financial solution for the modern freelancer and entrepreneur. It combines traditional banking features with innovative tools tailored for independent workers and small business owners. All at no cost for it’s Lili Basic platform.

One of the standout features of Lili is its fee-free structure; the account does not charge monthly maintenance fees, requires no minimum balance, and offers free mobile check deposits, making it highly accessible for businesses of all sizes. Additionally, Lili’s real-time expense tracking and tax optimization tools are particularly beneficial, helping users categorize transactions on the go and set aside a percentage of income for taxes, simplifying financial management, and year-end tax preparation.

The app’s intuitive design allows users to manage invoices, payments, and expenses in one place, reducing the need for multiple financial tools and services. Lili also offers a unique Emergency Bucket feature, enabling users to automatically save small amounts of money, which can be crucial for unexpected expenses or income fluctuations.

Read our Lili Review

6. Truist Simple Business Checking

Truist Simple Business Checking is tailored for freelancers and entrepreneurs looking for a straightforward and efficient banking experience supporting their business’s growth. This account offers a no-frills approach to business banking, with no monthly maintenance fees for the first 12 months, a low minimum opening deposit requirement, and a generous allowance of free monthly transactions.

Truist (formerly Sun Trust) provides access to a wide network of branches and ATMs across the United States, ensuring business owners can access their funds and in-person support when needed. This blend of accessibility and cost-effectiveness is designed to meet the demands of small business owners who need reliable banking services without unnecessary complications.

Beyond its basic banking features, Truist Simple Business Checking stands out for its focus on enhancing the customer experience with digital tools that streamline banking processes. The Truist online banking platform and mobile app offer intuitive interfaces for managing accounts, transferring funds, and monitoring transactions.

With dedicated business support and the ability to integrate with various business management tools, these digital services underscore Truist’s commitment to facilitating smooth financial operations for freelancers and entrepreneurs. The account’s straightforward structure, the supportive digital ecosystem, and the potential for fee waivers make Truist Simple Business Checking a compelling choice for those starting or looking to simplify their business banking experience.

7. Grasshopper Business Checking

Grasshopper Business Checking stands out as a digital-first banking solution specifically designed for freelancers, entrepreneurs, and small business owners seeking a modern and efficient way to handle their banking needs. Unlike traditional banks, Grasshopper eliminates many common barriers to business banking, such as monthly maintenance fees, minimum balance requirements, and transaction fees.

This approach makes it incredibly appealing for new and small businesses looking to maximize their financial resources without being weighed down by unnecessary costs. Grasshopper’s platform is built with the user experience in mind, featuring an intuitive online interface and a mobile app that allows for easy management of finances anywhere, anytime. This level of accessibility ensures that business owners can focus on growing their businesses rather than managing banking logistics.

Grasshopper Business Checking is tailored to support the dynamic needs of freelancers and entrepreneurs. Its features include early direct deposit, which can improve cash flow by providing quicker access to funds. Its seamless integration with popular accounting software also helps streamline the reconciliation process, making financial management and tax preparation simpler and more efficient.

Grasshopper also offers innovative tools such as invoicing and the ability to send and receive ACH transfers, which are crucial for managing client payments and expenses. The bank’s commitment to providing a comprehensive banking experience is evident in its personalized customer service and educational resources to help business owners make informed financial decisions. For freelancers and entrepreneurs searching for a banking partner that aligns with the needs of the digital age, Grasshopper Business Checking offers a compelling blend of flexibility, convenience, and support.

8. Mercury

Mercury Banking is a fintech platform that caters specifically to the needs of startups, freelancers, and entrepreneurs. It offers a suite of financial services designed to support the modern digital business landscape. Unlike traditional banking institutions, Mercury provides a no-fee business checking and savings account, which means no monthly fees, minimum balance requirements, or transaction fees.

This approach makes it highly attractive for new and growing businesses looking to keep operational costs low while benefiting from high-quality banking services. Mercury’s accounts are also equipped with advanced features like API access for custom integrations, enabling businesses to automate their financial workflows and connect seamlessly with other tools and services.

Its strong focus on the tech and startup ecosystem sets Mercury apart in the crowded field of business banking solutions. It offers tailored products like treasury management for companies looking to manage their cash more effectively and grow their reserves. Mercury also emphasizes ease of use and efficiency with its sleek, user-friendly online platform and mobile app, which allow business owners to manage their finances on the go, send and receive payments, and get real-time insights into their financial health.

Mercyrt also supports multi-user access, making it easier for teams to collaborate on financial management without compromising security. With its combination of tech-forward features, robust financial tools, and a commitment to simplicity and transparency, Mercury Banking stands out as an excellent choice for freelancers and entrepreneurs who value innovation and efficiency in their banking experience.

Why You Need a Business Checking Account as a Freelancer or Entreprenuer

If you have a small business, it’s important to maintain a clear separation between your finances and your company’s. The easiest way to do this, of course, is to have a dedicated business checking account for managing all of your business’s cash flow.

A business checking account will make it easier to view your current financial situation, track expenses, and watch for incoming funds. A separate business account will make the process easier if you are audited.

While it’s easy to see how a business checking account is imperative for small business owners and entrepreneurs, it might not be as clear for freelancers. And it isn’t a legal requirement, either.

However, a designated account can be key to tracking monthly finances, preparing for a potential audit, or separating home office and work-related expenses for tax deduction purposes. Depending on your tax filing status, you may or may not be able to qualify for a true business checking account as a freelancer. After all, a freelance business is still a business, so it only makes sense to treat it as such.

Instead, you might have to open another personal checking account that you designate for work expenses only. The bank you choose and whether you freelance as an individual, sole proprietor or have an LLC will determine this.

4 Key Factors to Consider with a Business Checking Account

When shopping around for a new business checking account, there are a few things you’ll want to look for that will help you pick the right one. In selecting between these factors, always consider how you plan to use your business checking account, and why your typical usage patterns dictate.

Fees

The less you spend on bank fees, the more money you can keep in your pocket. Therefore, looking for a business checking account that doesn’t charge monthly maintenance fees or provides an easy way to waive them makes sense. After all, even a monthly fee of $10-15 can add up to hundreds of dollars a year.

Sometimes, though, these fees are unavoidable. Sometimes, you may opt for a bank that doesn’t waive or charge fees for a more robust account. If that account provides the services you need most and/or you can earn enough interest to offset those fees, it might be worth paying.

Beware of hidden fees, which are fees for activities you might not expect. Common examples include insufficient fund fees, stop payment, monthly service, maintenance, and wire transfer fees.

As with credit card annual fees, be sure that the benefits you receive warrant a monthly checking account fee. Otherwise, do your best to avoid paying one altogether.

Transaction Limits

Transaction limits are just as important as fees (but sometimes overlooked). Limits are placed on certain activities within your account, which will incur fees if you exceed the allotted amount.

Common transaction fees include limits on electronic transactions and checks. Some checking accounts have a cash deposit limit, limiting the number (or amount) of cash deposits you can make monthly.

This speaks to the importance of understanding how you will use your bank account. Consider the type and number of transactions you usually undertake and compare it against any limits on these transactions.

Interest

Certain business checking accounts are interest-earning, which can be a good way to see your money grow if you have a high account balance. However, many interest-earning accounts have certain transaction limits, fees, or a minimum balance requirement that you’ll have to consider. Match these factors against the interest-earning potential to ensure your earnings aren’t canceled.

Interest-earning accounts are usually best for business owners with fewer transactions and much long-term cash.

Accessibility

How do you personally prefer to bank?

If you handle a lot of physical currency or prefer face-to-face banking, you want to choose an institution with local bank branches. If you do all your banking online or through a mobile app, you’ll want to choose a bank with a robust digital platform. An online-only bank will be easier to set up and often has lower fees. Still, the lack of access to a physical location is a real consideration for many business owners.

Therefore, if you choose an online-only bank or prefer to bank online, you need to consider the functionality offered by the app or desktop platform. Important features include online payments, mobile check deposits, bill payments, and invoicing capabilities.

Suppose you regularly deposit or withdraw funds from an ATM. In that case, you should choose a bank with network machines in your area or reimburse account holders for ATM fees. You should also note whether these machines give you access to withdrawals and deposits and whether there is a transaction fee for using the ATMs in your network. ATMs are a common way for a bank to hit you with hidden fees.

On the other hand, if you mainly deal with ACH transfers, choose a bank that allows for such without added fees or hassle.

Choose the business checking account that best matches your personal banking style, not just the one that sounds nice.

Type of Bank

Depending on your business, the type of bank may impact its functionality. Consider whether it’s a local bank, a national U.S. bank, an online-only bank, or even a credit union. Local banks may have certain more relevant features for business in your area. In contrast, national banks provide physical branch access wherever you are, among many other relevant considerations.

How to Set Up a Business Checking Account

Setting up a business bank account doesn’t usually take long, but it can be a bit complex if you don’t have the right information or documentation. Here are the basic steps you’ll need to get started:

• Register your business. Ensure your business is a legal entity set up as an LLC or something else. If you’re a freelancer and don’t choose this option, find a bank that allows no business EIN (Employer Identification Number), such as Lili.
• Gather the right paperwork. At a minimum, you’ll usually need your EIN, articles of incorporation (if applicable), and business license. More on this below.
• Choose a bank. We’ve given you several excellent options here, so the first step is to select the one that best suits your needs. Remember that a true business checking account will require business documentation.
• Apply. Filling out applications for business bank accounts online is very easy. All of the options we’ve listed above have a streamlined application process.
• Wait. Unfortunately, you often have to wait while your business information is verified. Some banks promise an account opening in as little as 3 minutes, but from my experience, it takes at least a couple of days for the bank to verify your business.

Related: Business Checking Accounts That Don’t Use ChexSystems

What Do You Need to Open a Business Checking Account?

As I mentioned above, there are a few pieces of information you’re going to need to open a business checking account:

• Your EIN. Legally registered businesses can get this directly through the IRS. It’s like your business’s Social Security Number.
• Your own Social Security Number. Your Social Security number is often used to verify ownership, so you’ll need it handy.
• Proof of incorporation. This is your Articles of Incorporation for an LLC, but other business structures might have other documentation. Either way, you need documentation to prove your business is a legitimate legal entity.
• Business license. After you get an EIN, you will likely have to register your business officially with the state you’re operating in. This can usually be done directly through the state’s website, but you’ll need this to prove that you’re legally allowed to do business there.

Learn More: How to Open a Business Bank Account

Frequently Asked Questions (FAQ)

Bottom Line

Whether you run a small business or freelancer, you must monitor your finances closely. This will help you maintain a budget even with a variable income and track expenses for tax purposes.

Choosing the right institution depends on how you bank, how much money you tend to keep in your account, and your financial management priorities. Luckily, there are some great banks to choose from when shopping for a new business checking account.

Related: Best Bank Account for Startups

The post The 7 Best Business Checking Accounts For Freelancers and Entrepreneurs in 2024 appeared first on Doughroller.

Monitoring your credit for fraudulent activity can be exhausting. You have the choice to either check all three bureaus regularly for new inquiries, unfamiliar accounts, and collections reports for accounts that aren’t yours or freeze your credit across the bureaus and hope for the best. Well, there’s actually another option: sign up for an identity theft monitoring service and rely on the alerts that they will send you.

If you’re a AAA member, you’re in luck. The company, known for its roadside assistance and excellent discounts, now offers its members a free credit monitoring service called ProtectMyID, provided by Experian.

Considering that the service is free, it’s easy to add it to your credit-protection arsenal. But does AAA’s identity theft service do a better job than the monitoring services you already have, and is it really free?

Let’s take a look at what members will get with ProtectMyID, and whether it’s worth the trouble to sign up.

What You Get

Initially, ProtectMyID was only offered to AAA members in a select number of states (Hawaii, California, New Mexico, and Texas). Now the service is available to members all across the country.

There are three options to choose from when signing up for ProtectMyID as a AAA member: Essential, Deluxe, and Platinum. The complimentary service is the Essential level, and won’t cost you a thing. To upgrade to Deluxe is $10.95 a month ($109.50 a year) and Platinum is $15.95 a month ($159.50 a year). You can also add child identity monitoring to the Deluxe level for $3.95 more a month–it cannot be added to the Essential level and is included for free with Platinum.

When you sign up for Essential monitoring, you’ll get a handful of features. Of course, keep in mind that this service is entirely free, so beggars can’t be choosers.

First off, your Essential monitoring will only include data from Experian. This is still beneficial, and most other free credit report/monitoring websites do the same (choosing one or two bureaus to pull data from), but it won’t give you a complete picture. If an inquiry were to be reported to either of the other two bureaus, you wouldn’t know about it, even though you’re having your identity monitored with ProtectMyID.

When you first enroll, you’ll be given your Experian credit report. Again, this will only cover accounts that were reported to Experian, but it is still nice to have. However, it will not include a credit score–for that, you’ll need to be Deluxe or Platinum level (at which point you’ll get your VantageScore 3.0).

With Essential monitoring, you’ll enjoy coverage like lost wallet protection. This means that if your wallet is lost or stolen, you’ll be able to cancel and replace all of your important cards (credit cards, insurance cards, etc.) with only one phone call. No more waiting on hold for each and every credit card company to cancel and order new cards–just give ProtectMyID a call and they’ll do all of the hard work for you.

You’ll also get fraud resolution support. If your identity is stolen, ProtectMyID will provide an agent that will guide you through the resolution process. They will offer step-by-step instructions for investigating the theft, as well as restoring your good name and clearing the fraudulent accounts.

Lastly, with Essential monitoring protection, AAA Premier Members will be covered with up to $10,000 in identity theft insurance. This money can be used to reimburse you for certain eligible expenses associated with ID theft. These include lost wages, legal fees, and even electronic fund transfers.

What You Don’t Get

We all know the saying, you get what you pay for. Well, with ProtectMyID, it holds true.

While this complimentary service makes a great addition to your arsenal, it’s just that: an addition. Their Essential level of protection is entirely too basic to be your go-to for identity theft monitoring, and you’ll still need to find (or keep) a number of other services in order to be truly protected in real time.

Here are just a few of the things you won’t get with AAA’s free monitoring (unless, of course, you want to pay a monthly fee to upgrade):

• Your credit score
• Dark web surveillance
• Real-time identity alerts
• Change of address alerts
• SSN monitoring
• Bank account and credit card takeovers
• Criminal bookings and court records monitoring
• Child identity monitoring
• Social media monitoring
• Payday loan monitoring
• Sex offender monitoring
• Positive credit activity alerts
• Credit limit and usage alerts
• Dormant credit card monitoring

You may have a monitoring service that already does these things, in which case, you’re likely covered. It’s always great to have an overlap or services (especially if it can be provided for free), but on its own, you’re lacking quite a bit with Essential coverage.

Is AAA’s Identity Theft Monitoring Worthwhile?

At the end of the day, it comes down to this: AAA is offering its members a free service that helps them check and monitor credit/identity-related activity. There’s only so much you can expect from the service, as it’s complimentary, but it is probably worth adding to your arsenal. After all, there’s no harm in doing so.

Whether you decide to upgrade to either the Deluxe or Platinum levels is up to you. It should be contingent on which of those services you need, and which you’re already getting from other credit monitoring subscriptions.

I wouldn’t feel entirely secure simply by signing up for AAA’s free service. If I were a member, though, and had the chance to snag a complimentary Essential level plan, I would probably go for it. After all, you can’t go wrong with something that’s free.

What If You Are Not an AAA Member?

Not everybody is an AAA member, but there are other alternatives:

• Experian – AAA’s free service is provided in partnership with Experian Identity Protection Service. Even without the AAA membership, you can get prime identity theft protection for as low as $ 9.99 (and a free month). Maybe it is not free, but indeed affordable to keep your identity safe.
• myFICO – Another great alternative is the notorious myFICO service. You can get a great deal that includes (besides identity theft protection) credit reporting services.

The post AAA ProtectMyID Identity Protection Review appeared first on Doughroller.

Sponsors: The 31-Day Money Podcast is sponsored by Betterment and Empower.

Betterment and Empower are two tools to make investing easier, less expensive, and more effective.

About Your Net Worth

Do you know exactly where you stand financially? I don’t just mean how much money you have in your checking account or whether you’re up-to-date on your bills, either. I am talking about the status of your overall finances, as measured by your net worth.

Perhaps you’ve never tracked your net worth before, and wouldn’t even know how or where to start. You might not even see the value in doing so. That’s why today, we are going to spend some time talking about how and why you definitely want to track your net worth… and how it can completely transform your progress toward financial freedom.

Your Worth Isn’t Your Income

Here’s one of the most important things you need to remember as you work toward some of your biggest goals: financial freedom is not about how much you make, it’s about how much you keep.

Many of you may have never really thought about finances in that way before, but that truth has the ability to completely transform how you approach personal finance for the rest of your life. After all, it is the same reason that we hear about school janitors retiring with millions, or star athletes going bankrupt.

At the end of the day, your paycheck isn’t the biggest factor: how you manage that money is.

In fact, building lasting wealth can be summarized in just two simple steps:

• Spend less than you make, and
• Invest the difference wisely.

This is the formula for wealth regardless of whether you make $50,000 a year or $1,000,000.

Seriously, It’s That Simple

There are many Americans who earn a modest income, yet are able to achieve financial freedom. These folks are the unsung heroes of money management. They don’t often make the front page of the newspaper (except maybe this guy); instead, like my grandmother, they are nurses in small towns in Ohio, living in a home that is paid off and building a comfortable retirement nest egg.

How? By (1) spending less than they made, and (2) wisely investing the difference.

Likewise, there are countless stories of professional athletes, lottery winners, and movie stars who made millions, but wound up dead broke. Why? Because they failed to (1) spend less than they made, and (2) invest the difference wisely. Ed McMahon. MC Hammer. Vince Young (former NFL Quarterback). Sharon Tirabassi ($10 million lottery winner).

So, how do you go about using this lesson to your advantage? And more importantly, where does your net worth come into play?

All About Net Worth

Your net worth is a simple formula: it’s the sum of your assets minus the sum of your debts. This gives you a much more comprehensive picture of where you stand financially, versus simply looking at savings and retirement accounts, or credit card balances (though all of those are still important).

As you’ll notice, the net worth formula isn’t impacted whatsoever by your annual income. Your net worth doesn’t depend on whether you will make seven-figures this year or five; instead, it will simply account for how you use the money that you make.

Assets and Debts

So, what should you include in either side of your net worth calculations? Deciding which numbers to punch in–and which ones “don’t count”–can be a bit tricky.

On the assets side, you’ll want to be sure to account for your:

• Cash
• Checking account balance
• Personal savings
• Retirement savings
• Equity in a home
• Other real estate equity
• Investments

You might also have other, less-common assets that you would want to include, such as a pricey art collection, a stash of gold bullion, or high-dollar jewelry. Just keep in mind that valuing these things for the purpose of tracking your net worth can be a bit tricky.

In the debt column, you should include things like your:

• Credit card balances (yes, even if you plan to pay it off in full)
• Outstanding mortgage balance(s)
• Student loan debt
• Personal loan debt
• Auto loan balance

Essentially, if you owe it, it goes in the debt column. If you own it, it might go in the asset column.

You’ll notice that I didn’t include your car value in the asset section. That’s because vehicles depreciate rapidly and your car isn’t likely to be an asset you could readily (or effectively) pull from if needed. However, if you feel that your car’s equity is important to your net worth, feel free to include it.

Net Worth and Your Monthly Budget

I’m sure you’ve noticed that your finances change each month. Some months, you’ll need to pay insurance premiums while others, you’ll get a tax refund. Some months will see you buying Christmas presents for your whole family while you’ll make some extra cash from your side gig in others.

If you want to know where you stand in the big picture, your budget isn’t all that helpful. Instead, you’ll want to track your net worth.

Yes, a budget is still important, especially if you have a tendency to lose track of spending or even overspend. And if you’re regularly overspending, you will inevitably impact your net worth. However, your net worth trend line says a lot more about your progress than your envelope system ever will.

How Your Goals Impact Net Worth

At the end of the day, you want to have a nice, large net worth number staring back at you. However, it’s important to realize that for many of us–especially the younger crowd–this number might actually be negative for quite some time, thanks to certain financial goals.

This isn’t always a bad thing. For instance, paying for your education will likely result in higher earnings over the course of your lifetime… after all, that’s why it’s called investing in your future. It can sting in the beginning, though, as you focus on tuition payments instead of savings, or even go into debt with student loans.

Related: How to Pay Off $20,000 in Student Loans in One Year

When you take out a mortgage, your net worth will take a nosedive. Over time, though, you will build equity in your home and it will become an asset.

Some financial goals are less beneficial to our net worth than others, however.

Focusing a large percentage of your income on savings is a great thing, if you can afford it. Focusing a large percentage of your income on a too-large home? Not so much. If your goal is to drive around in a brand new car every two years, that’s your prerogative; driving a used vehicle so you can pay off student loan debt early will grow your net worth faster, though.

Take a look at your immediate and long-term goals; do your monthly spending habits help you to reach them? And more importantly, how do your goals impact your net worth each month?

Net Worth Statements

One of the easiest ways to keep track of your financial progress is through net worth statements. There are many templates available online that you can utilize or, if you’re handy with Excel, you can create your own.

It can be as simple or advanced as you’d like. You’ll just want to be sure that you include each of your assets and each of your liabilities (debts). You’ll also want to track the change in your net worth from month to month, either by numbers or a good old-fashioned graph.

When to Update

Net worth statements should ideally be updated monthly. Any longer than that, and you might miss out on accurately tracking your progress, or seeing how small changes impact the overall picture. Any sooner than that, and you’ll probably drive yourself crazy.

I know someone who updates his net worth spreadsheet weekly… and I regularly let him know that he’s adding unnecessary stress to his life. The changes that occur from one week to the next have a tendency to ebb and flow. By waiting a month before crunching numbers, you ensure that small impacts (like the electric bill coming out) don’t cause your net worth to continuously bounce around.

Plus, things like mortgage and auto loan statements come out once a month, so it makes sense to just wait.

There are some people who only update their net worth statement once or twice a year. While this can work–and is better than not tracking it at all–it does make it difficult to know where you stand throughout the year. If you have specific goals in mind, it’s important to see if you’re set to meet them or if you need to make changes to your financial approach.

A monthly update is ideal; however, try to at least punch in new numbers once a quarter, to keep yourself up-to-speed and on track.

Those Who Build Wealth vs Those Who Don’t

Many of us think that if we could just get a better job, win the lottery, or become the surprise beneficiary of some late uncle’s estate, we would meet our financial goals. However, this is rarely the case.

Sure, a larger income can help, especially if you’re living paycheck-to-paycheck just paying basic expenses. For most people, though, the key to building wealth lies not in how much one makes, but in how much they keep.

This means living below your means consistently. Save first, spend second, and eliminate wasteful expenses from your life. If you’re having trouble building savings and/or reducing liabilities, see where you could “trim the fat” in your financial life. That might mean downsizing your home, switching to a one-car family, reducing your monthly grocery bill, or all of the above.

Related: 92 Painless Ways to Save Money

Building wealth is possible for everyone, regardless of income. You can file for bankruptcy after making $30 million a year, or you can be a retired janitor with seven figures in the bank. And if you want to know which you’re on track to become, knowing (and tracking) your net worth is paramount.

And that brings us to this podcast:

Topics Covered

• What is a net worth statement and how do you prepare one
• Why you should not include your cars, furniture or other personal possessions in your net worth statement
• How to use your net worth statement to track your financial progress
• How most of the important financial goals (getting out of debt, saving for emergencies, saving for retirement) affect your net worth
• The key relationship between your net worth and your monthly budget
• How and why assets generate income
• How and why debts generate expenses
• The difference between those who build wealth and those who do not

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Rakuten is a free website that allows you to earn cash back almost every time you shop on the web. Whether you are ordering household supplies, a new computer, or soccer cleats for the kids, you will earn money back in the form of a rebate. Then, you can cash out and use that rebate for anything you want, including depositing it in a savings account or vacation fund.

To some, Rakuten may sound too good to be true, but it’s really not. Here’s a rundown on how this rebate site can transform your online shopping forever.

What is Rakuten?

While you can often find coupon codes available, Rakuten isn’t a coupon site by definition. You won’t usually save any money on your transaction by buying through a Rakuten link. Where the benefit most often comes in is after the transaction, when you will receive a rebate for your buys.

Rakuten became the pioneer and leader of online cash back shopping 20 years ago. The company was founded in 1998 by two Deputy District Attorneys in Silicon Valley, in fact. They used to prosecute web fraud and identity theft prior to founding Rakuten, so it only seems natural that their popular company centers around online transactions.

How Much Does Rakuten Cost?

The only thing better than earning cash back on your purchases is doing so for free. Whether we are talking about rewards credit cards that don’t have an annual fee, grocery/gas loyalty programs, or companies like Rakuten, free money is the best money.

Joining Rakuten is always free; all you have to do is sign up. No matter how much–or how little–money you spend through their website, Rakuten never takes a penny from you.

Every three months, Rakuten will mail you a check with your earned rebate balance, or they can also transfer the money to your PayPal account. There’s no fee, no catch, and the process is easy. If you want to use that free cash to do some good, they’ll even send the money to your favorite charity. No matter your preference, there is absolutely no charge for any of it.

How Does Rakuten Earn Money, Then?

So, you might be wondering how exactly Rakuten works, and how they’re making money if they’re not taking it from you in some way. Well, the concept behind the website is simple: your online merchants pay Rakuten for referring your business to them.

In order to earn your promised rebates, you will need to shop through the Rakuten site, from their list of partner merchants. This means logging in after you’ve signed up, finding your store of choice, and clicking through to that site from the Rakuten portal. This allows Rakuten to confirm your purchase as well as earn credit for the referral.

When you make a purchase, the merchant will send a share to Rakuten, as sort of an affiliate commission. Rakuten then passes most of the money they make on to you, keeping a small percentage for themselves. The share they keep adds up quickly, but you don’t even notice, because you’re still getting the majority of it in your own account, as free cash back.

So, the more you shop via Rakuten, the more money they will make. The more they make, the more money they can pass back to you in the form of a rebate. Makes sense, right?

The Sign-Up Process

The process for signing up for Rakuten and saving money online is about as easy as it gets. The first step is to visit their website, Rakuten.com. There, you’ll register an account, which takes just a few seconds to complete.

You can see from the graphic above that the only things required to get started with a new Rakuten account are your email address, a password, and the email address of the friend that referred you (if applicable). Once you start earning money with Rakuten, you will need to provide more personal information. This includes things like your address, phone number, and Paypal account email address, but that info is only used to pay you.

The Cash Back Process

As it currently stands, there are over 2,500 merchants who participate in the Rakuten program, many of which you’re likely familiar with. From Macy’s to Holiday Inn Express to Barneys New York, the locations where you will earn cash back are growing every day.

The cash back amount you’ll receive from Rakuten is clearly displayed on each page, so there are no surprises. This amount varies from 1.0% back to as high as 50.0% cash back, and beyond (that’s the highest I’ve seen, but who knows what will happen in the future).

For example, let’s assume you’re looking to buy some back-to-school clothes at Macy’s for your kids, to the tune of $300. Rather than visit their site directly and make the purchase, you should first visit Rakuten. There, the current cash back percentage for shopping at Macys is currently 6%–not a bad rate!

Once you’re ready, click on the Macys link through Rakuten and you will be temporarily directed to the following page:

This page will stay on your screen for just a few seconds before you are automatically directed to the Macy’s website. Then, make your purchases there as usual; feel free to use coupons, if you have them, and even a rewards credit card, to earn even more!

When you return to Rakuten a few days later, you should see the 3% cash added to your account. On $300 spent, that’s a solid $18 saved, plus whatever your cash back credit card gives you.

You can earn an unlimited amount of cash back through Rakuten. There are a few individual merchant limits, which Rakuten will clearly define before they redirect you, but that’s it. Plus, receiving payment is a breeze.

Once per quarter, you’ll receive a check or Paypal transfer from Rakuten, and that’s really all there is to it. If you’re making a TON of money with your online shopping, they may choose to send out checks sooner than every three months. And if you choose to sign-up for their newsletter, you’ll even be provided the chance to earn double cash back on a different store every day.

More Than Shopping

Since its introduction, Rakuten has become more than just an online shopping rebate website, though. Now, you can even earn cash back when you book certain hotels or travel plans, or even when you use VRBO to book a vacation home.

You can also access special coupons through the site, whether those merchants offer actual cash back or not. Coupons vary and change regularly, but it’s another great place to look if you want to save on your next online purchase.

Lastly, you can even snag your cash back when shopping in-store at select merchants. If you are at the mall anyway or absolutely want to check out an item in person before buying, you don’t have to forgo your rebate; just make sure that the merchant is part of Rakuten in-store cash back list.

In-store cash back is often less than offered online; for instance, Macy’s only gives 2.0% back right now when you buy in-person, versus the mentioned 6.0% for buying online. However, this might be worth it to you if you can’t pass up that clearance item in your size or find the perfect home accent for your living room.

There’s no downside to shopping online through Rakuten, as it gives you an easy, free way to build up extra cash… all for buying the things you were buying anyway. Combine it with coupons and rewards credit cards to double up on your earnings, and see just how much you can save!

To sign-up for your Rakuten account and start saving on most of your online purchases, visit www.Rakuten.com.

Also read: Best Cashback And Rewards Apps

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