There’s no rule that we have to make all our New Year’s resolutions on January 1! Infact, it’s never too early or too late to think about our goals for the year. Additionally, figuring out your yearly goals can be an ongoing process. So keep reading to learn what key goals everyone should have in place!

Setting goals for the year isn’t meant to lock you into a rigid mindset of success or failure. It’s simply meant to help you reflect on what you want out of life and create steps to achieve it over time.

That said, you can set yearly goals in any or every area of life. Here are 29 ideas for yearly goals for your finances, career, health, relationships, and personal development!

For your finances

Since this blog is all about finances, it makes sense to start with some yearly financial goal ideas! The best new goals for the year will depend on where you are in your financial journey, of course.

You might already have some of these money goals checked off the list!

However, it’s always good to see where you stand and update your goals if needed.

1. Build or replenish your emergency fund (One of the most important yearly goals)

An emergency fund is the perfect first financial goal to have because this is the savings that will allow you to live without a job or deal with other surprise expenses without going into debt.

The recommended amount for your emergency savings is to have 3 to 6 months of basic living expenses i.e. for food, housing, transportation, core utilities, etc. But if that seems overwhelming, I say you should work on saving your first $1,000 and build from there!

2. Create a monthly budget that ties into your yearly goals

Budgeting is also a foundational financial goal because this is what allows you to get a full picture of how much you’re making, how much you’re spending, and where there might be leaks in the ship.

There are a variety of different budgeting methods, so you should pick the one that appeals to you most. Try a percentage budget or a biweekly budget or monthly budget, depending on what dates you are paid.

3. Start a side gig for extra income

We could all use a little extra cash, whether to pay down debt, increase savings, achieve a financial goal, or retire earlier. No matter what it is, starting a side hustle can help you speed up your goal timeline.

Check out these ideas for how to make an extra $1,000 a month, like freelance writing and starting an online store. If you’re thinking more about starting your own business on the side, start learning how to start a side hustle.

4. Contribute more to your retirement accounts

There’s no rule that you have to wait until you’re 65 or older to retire. The sooner you start saving, the sooner you will have that coveted financial freedom within your grasp.

Haven’t started a retirement account yet? Here’s everything you need to know about how to start saving for retirement!

5. Try a no-spend challenge

Have you heard of a no spend challenge? It’s a period of time, usually a couple of weeks to a month, during which you eliminate all non-essential spending.

You’ll still pay for rent, gas, utilities, groceries, and other necessities, but this is a chance to identify bad money habits and find new (free) ways to entertain yourself.

In my opinion, it’s a fantastic and simple way to save money. You can start with a no-spend week and then work your way through an entire month without spending excess money.

6. Plan your financial goals

There are different kinds of financial goals. Some will be short-term, like saving for Christmas on a budget or vacations. And some will be mid term goals, like saving up a house down payment or paying off a car.

Others are your long-term goals—the big stuff like paying off a mortgage or reaching a certain net worth by a specific age. Resolve to outline your financial goals so you can start measuring your progress.

7. Cultivate good money habits

Like any other habit, good money choices take practice and repetition.

Prioritize saving, whether you’re just getting started or you’re flexing your saving muscles by increasing how much you put away each time. Stay diligent with debt management, paying it down, and avoiding future debts.

And, of course, drop those bad habits. Nothing will block the path toward your goals like persistent bad habits such as credit card debt or overspending.

To build your career

Since most people work 9 to 5, five days a week, it’s important that we enjoy what we do and set up career strategies and goals for the year. Here are some good goals to have and ideas!

8. Learn new professional skills (One of the most lucrative yearly goals to set)

Learning new things doesn’t end after graduating high school or college. It’s a lifelong process! Improving your current money making skills and adding a new skill or two to your arsenal keeps you engaged, passionate, and competitive in your field.

It prepares you for promotions and enables you to switch jobs more easily if your circumstances change.

As an example, here are some high-income skills to help bring in more of that money!

9. Apply for a promotion

Sometimes, promotions just fall into our laps. Other times, you have to be bold and ask for them! It might sound intimidating, but there’s a right way to go about it.

I recommend thinking about what value you’ll bring to the role, asking your manager or coworkers if they see areas for improvement, and letting the higher-ups know you’re interested and ambitious.

However, the conversation can be as simple as asking your boss what you need to do to get to the next level or asking for a raise.

10. Create (or update) your website and resume

So, if you don’t have a personal website yet, building one would be a great yearly goal. A website is your own professional “home” on the internet.

You can use it to introduce yourself, highlight projects you’ve worked on, write blog posts to demonstrate expertise on certain topics, let recruiters know how to contact you, and so on. Update your resume simultaneously (even if you have a job gap)!

11. Strive for a healthy work-life balance

Is “work less” really a valid career goal? Definitely! If you’re starting to feel burned out, your body and brain are telling you that what you’re doing is unsustainable.

When you spend all your time working, you’re taking priority away from other important areas of your life—because you only have 24 hours in the day.

Over time, burnout will start to affect your career performance, so it’s important to stop it in its tracks. Check out our article on why time and money are both valuable (and how to play the balancing act between them).

I’m very intentional about taking breaks when I’m working and I have specific times where I fully disconnect from work like on the weekends and when I’m on vacation.

12. Network in your industry

These days, you can’t just walk into an office with a resume, shake the manager’s hand, and walk out with a job. Submitting online applications doesn’t feel much better. No matter how great your cover letter skills are, it’s still hard to distinguish yourself from dozens (or hundreds) of competitors.

This is where the phrase “it’s not always what you know, but who you know” holds true. The more you use networking tips and meet people in the industry, the more connections you’ll have for career opportunities, referrals to new companies, professional mentorship, etc.

13. Invest in yourself as one of your yearly goals

You are your greatest asset, so you’re also your best investment. Pour into yourself so that you can pour into your future and help others.

Seek out education, either to deepen your expertise or broaden your perspective. Choose conferences, mentors, and projects that will boost your career (and earning potential!).

And don’t overlook the “softer” side of investing in yourself. Find a self-care routine that fits your personal needs and your budget. Prioritize your health and well-being.

Not only will this equip you to tackle your goals, but it will also save you time and money in the long run by preventing illness and burnout.

14. Have a job (or build a business) that meets your needs

Most of us work to earn money. So, you absolutely want your job to meet your financial needs and fund your financial goals.

There are many reasons women face salary problems that make it challenging to reach their goals. Course correct by seeking a promotion, negotiating a salary increase, or finding somewhere you’re valued better. Answer the question of how much money you want to make: is 100k a year good? 200k?

For many people, actually liking their job is also one of their basic needs. If you want to retire super young and are willing to grind through tough conditions in the short term in exchange for big bucks, that might be the right solution for you. But if you want a long, fulfilling career that also pays the bills, make it happen.

If you can’t find what you’re looking for in your current job or work environment, seek one that feels right. Or, if entrepreneurship is calling your name, start your own business from scratch.

For your health

You only get one body, so it’s important to take care of it and your mental health. Here are some good goals for the year.

15. Focus on fresh, clean eating

When life gets busy, eating habits are often one of the first things to falter. It’s so easy to swing by the drive-through on your way home and certainly not so easy to do a monthly meal plan, chop and prep ingredients, cook, and wash dishes.

But the food we eat does have a huge impact on our health and wellbeing, so even though it requires a little added time and thought, clean eating is a worthwhile goal.

A whole food plant-based diet works well for me; I love sites like BudgetBytes for quick, simple meal ideas I can whip up at home. Learn more about living a healthy lifestyle on a budget.

16. Spend more time in nature

The Japanese have a beautiful term—shinrin-yoku—meaning “forest bathing.” The concept is all about the many benefits we get from nature, both mental and physical. Forest bathing is as simple as wandering along a nature trail, breathing in the fresh air, and admiring your surroundings.

Time in nature lowers stress and lifts our moods. Check out the AllTrails or TrailLink websites to find hidden gems in your area!

17. Find an exercise routine you love

Ideally, you can combine this goal with the one above by finding ways to exercise in nature! You can go for a bicycle ride, jog on a nature path, do yoga in your backyard at sunrise, or take a fitness class in the park—the options are plentiful.

There’s nothing wrong with an indoor workout or hitting the gym, either. Of course, any kind of movement is amazing for our health, including managing anxiety and improving mood.

18. Practice good “sleep hygiene”

Sleep is another daily habit that drastically impacts our lives. According to the Sleep Doctor, skimping on sleep affects our energy, mental functioning, memory, and more.

According to the Sleep Foundation, sleep “hygiene” is a collection of behaviors and surroundings that help improve sleep.

Create a good routine that includes whatever helps you relax, whether that’s meditation, listening to a podcast or reading, or anything that brings you comfort. Tips include following a consistent nightly routine, turning off electronics 30-60 minutes before bed, and sleeping in a cool, dark, comfortable room.

To improve your relationships

There are few things more important than the people we share our lives with, so make sure to include them in your goals for the year.

19. Learn the love languages

The “five love languages”, discovered by Gary Chapman, aren’t an exact science, but they are a great way to start conversations with your loved ones about what makes them feel most loved and appreciated.

The main five are:

1. Words of affirmation
2. Quality time
3. Physical touch
4. Acts of service
5. Receiving gifts

Much relationship strife comes from simple relationship communication problems and not understanding what the other person needs. If your partner most values quality time, a cheap picnic in the park might mean more than a $1,000 necklace.

20. Practice positivity and gratitude (Essential yearly goals to establish)

Sometimes, we can get into the habit of taking the people in our lives for granted. They’re the ones you turn to when you need to vent about your problems and bad days…and while this is important, too much complaining can turn the relationship negative.

Whether it’s with your partner, your best friend, or a parent or child, make it a goal to regularly share why you’re grateful for them and always do your best to appreciate the little things.

21. Try new experiences together

Falling into a dull routine is another phase many relationships go through. Go to work, come home, make dinner, watch TV, sleep, repeat. Carve out time to mix things up a little by trying new activities!

It doesn’t have to be fancy, and you don’t have to leave your house. Check out these budget-friendly at home date ideas like a paint night or backyard campout. Involve the whole family in some of your ideas, too, with family night ideas.

22. Prioritize your friendships

As people age, their social circles can narrow, as everyone is busy with their families, jobs, and lives. Be intentional about not letting treasured friendships fade!

Your “circle of influence” impacts everything from your mood to your eating habits to your finances. Surround yourself with the right people and make an effort to see them, and you’ll reap the rewards.

I’ve found that one of the best ways to stay in touch with my friends is to make it a point to text or call them monthly. That way, we can catch up over the phone or make plans to meet for dinner or something later in the week.

23. Establish firm boundaries with yourself and others

Boundaries can be scary, but they’re necessary to accomplish your goals. Stay disciplined with yourself. 

Become your best advocate in every part of your life. Reflect on what you need and want. Once it’s clear to yourself, make it known to those around you.

For example, if your family, friends, or partner have different spending philosophies than you, but you know your goals, it’s easier to stand firm in your decisions. Learning to speak up for yourself on the job can improve how you feel about your work environment and might even move you closer to your career goals.

Keep your eye on your goals and know that healthy boundaries will get you there faster.

For your personal development

Lastly, here are some goals for the year to help make your life fulfilling and help you with figuring out who you really are.

24. Read a certain amount of books a year

Books hold an incredible wealth of knowledge, entertainment, and life advice. Depending on how quickly you read, make it a goal to read a certain amount of books per year.

For instance, try starting with one a month to see how it goes. You can choose fiction, nonfiction, or a combination! 

Check out our recommendations for financial literacy books, career, business, and personal development books.

25. Define your personal core values

When was the last time you sat down with yourself and thought about what’s actually important to you? This is your time to get a little existential.

What kind of person do you want to be? What traits do you admire in others? How will you cultivate those traits in yourself and practice them in the real world?

Grab a journal and start brainstorming. You can even use journal prompts for self discovery.

For example, you can jot down something like…

• Independence is important to me, so I want to get out of debt and learn more self-reliance skills.
• I value compassion, so I want to get involved with charities/animal shelters.
• I value adventure, so I want to make more time to travel and try new things.

Discovering and defining your personal core values can help you lead the life you want to live.

26. Outline your strengths and weaknesses

Along the same lines, make it a yearly goal to assess your own strengths and weaknesses.

For example, this can be professional skills, personal traits, or whatever else you want to self-evaluate. Start with what you’re good at.

Do you keep a cool head in a crisis? Do you have a natural affinity for numbers or words? How can you leverage those strengths in your life? Then, move on to self improvement ideas.

Are your communication skills a little lacking? Do you struggle with time management or self-discipline? Self-awareness is the first step to fixing a problem!

27. Limit social media & TV

Did you know that the average internet user spends 143 minutes daily on social media, according to Statista? That’s almost two and a half hours every day scrolling through posts and pictures you’ll barely even remember tomorrow!

However, TV is even worse, with the average American logging 168 minutes per day, claims Oberlo.

So, if you have issues with poor sleep or creativity, all that screen time is likely one of the causes, according to Harvard Medical School. Make it a goal to spend less time in front of screens this year!

Also, a social media detox can even be beneficial for your finances.

28. Start a new hobby

So, what will you do with all that extra time once you’re not spending it scrolling on your phone or plunked in front of the TV? Start a new hobby! Try out a whole bunch to see what makes you feel passionate and energized.

It could be an outdoor hobby like hiking or kayaking, an indoor hobby like baking or playing an instrument, or even a hobby that makes money like woodworking or photography.

29. Manage your time

Time is money, after all! Spend your time doing something productive or something you love. (It’s even better when the task ticks both boxes.)

Maximize any time spent on a side business to earn more in less time.

Focus on quality time with loved ones rather than keeping one eye on your inbox and one thumb scrolling on your phone. And yes, sometimes rest really is the most productive way to spend your time.

I’ve found that the main thing with time management is to make a plan and follow it.

For instance, plan out how many hours of your week will be free time and how many will be spent on reaching your goals.

Expert tip: Make your goals smaller for success

For my big yearly goals that I want to meet, it helps for me make them smaller. I break them down by month, by week, and, if necessary, by day and I’ve found this approach to be very effective.

To help yourself stay organized with tracking your goals, use a yearly calendar on your phone or a planner. Then you can break down your goals into smaller chunks throughout the year and achieve them slowly without overwhelming yourself. Be sure to track your progress. I like to pick a day of the week, like Sunday, to go over my progress.

How to set your goals

As you consider all of these goal ideas, you may wonder what is the best way to begin. Try these ideas to help you set and stick to your plans.

Create your goals in a logical way

As you map out your goals, there’s no perfect formula. You could use SMART goals (specific, measurable, achievable, relevant, and time-bound). Or you could set firm goals and work backward to determine how they will play out.

You could also focus on the big picture of how you imagine your life and then calculate what milestones will get you there.

Remind yourself why your goals matter

Without a very specific reason for completing your goals, you may lose motivation. To stay focused, I like to remind myself why my goals are so important.

For instance, if I want to save a six-month emergency fund, I need to define why that matters. Something like, “I’m saving a six-month emergency fund so I can have financial peace of mind and avoid living paycheck to paycheck.”

Come up with a sentence that explains your why and refer to it when you are losing focus.

What are some examples of 1 year goals?

Some 1 year goals are saving a specific amount of money, learning a language, or committing to a new fitness routine. There are lots of short-term goals like these to choose from.

When thinking about year-long goals, consider how much time you can devote to them, how much money they will cost, etc. Ensure you can complete them in that amount of time, or you may lose focus. And reward yourself along the way!

What are 3 main good goals to have?

When choosing 3 main goals, try choosing from 3 important categories, such as finances, family, and health.

Or, if you prefer, one for personal development, one related to your career, and one just for fun.

Once you’ve chosen your categories, choose a reasonable goal to complete in a fairly short time frame, such as 1 to 3 years.

For instance, save $10,000 in a year, pay off debt, hike 100 miles over the course of a year, get a new job, etc. Pick whatever makes sense for you and enjoy the process.

Are there any fun goals and what are they?

Yes, there are plenty of fun goals, and since you make your own goals, these are up to you! If you aren’t sure where to begin, I suggest considering your interests.

If you love reading fiction, make it a goal to read books from 5 authors that are new to you. Or, if you are interested in making a higher salary, complete a course that is fun and challenging for you to help further your career.

Some other ideas to consider are taking on a new hobby or saving up a vacation budget and traveling somewhere you’ve always wanted to go. The main point is to make a goal out of something you enjoy.

Articles related to goals

If you’re all ready to get started on your brand new goals now, read these posts next for more inspiration!

• Examples Of Financial Goals
• Financial Goal Setting For Success
• New Month New Goals: Ideas For Goals To Set Each Month
• How To Successfully Plan For The Year

Yearly goals are a great way to improve your life!

In practice, these yearly goal ideas will look different for everyone because we all have different lives, resources, and circumstances. Now, it’s up to you to figure out which goals for the year are most important to you and how you’ll achieve them!

However, setting financial goals should definitely be at the top of the list because getting your money right leads to wealth and success. Learn how to create the right financial goals with our completely free goal setting course!

The post 29 Yearly Goals Everyone Should Have! appeared first on Clever Girl Finance.

The term personal finance ratios might give you flashbacks to math class, learning various formulas, equations, and ratios. Back then, if students looked like they were zoning out, your teacher might have told you “pay attention, this will be useful to you later.” Well, this time, you don’t have to wait—a lot of the equations below will be useful to you right now!

Let’s learn more about what ratios are and fourteen of the top money ratios you can use today!

What is a personal finance ratio?

In mathematical terms, a ratio is essentially a way to compare two numbers. Since finance is all about numbers, that can come in handy in many ways especially when making financial calculations!

You can use ratios to keep track of many different aspects of your financial situation—from cash flow to savings to tips for retirement planning and more.

A traditional ratio is expressed as a divisible number, but some of the ones below use multiplication or subtractions instead.

Ultimately, just think of it as a way to track your money and how you use it. Keeping a record of your money ratios can also illuminate how these numbers change over time.

14 of the most useful personal finance ratios

The best way to explain the ratios is just to start showing you examples! So below, we’ll explain how to use each one and why they can be helpful to your journey.

1. Monthly cash flow ratio

Monthly expenses divided by monthly income

The monthly cash flow formula helps you understand what percentage of your income is dedicated to your monthly expenses. Think about the cash flow ratio as how much cash flows in vs flowing out.

Start by adding up all your regular income from jobs, side gigs, investment income, etc. You can use a gross figure or your actual take-home pay (aka net income) after taxes.

Then, create or refer to your spending journal or a budget template or tool to see how much you spend every month. Don’t include savings or investments in your spending calculations (that has its own personal finance ratio)! Everything else is fair game: necessities, car payments, fun money, gifts, monthly debts, etc.

If you spend around $2,000 monthly and make $2,500, your cash flow ratio would be $2,000 / $2,500 = 80%. It tells you that 80% of your income is spent on expenses.

2. Savings ratio

Monthly savings divided by monthly income

This is basically the flip side of the one above. Instead of telling you how much you’re spending monthly, it tells you your savings rate.

Include all kinds of savings here. Whether you’re putting money in a savings account, your company’s 401(k), your personal IRA, an investment account, or even setting aside physical cash, it qualifies.

Using the same monthly numbers as above, let’s say you’re putting the rest of your money ($500) towards savings and investments.

Your monthly savings ratio would be $500 / $2,500 = 20% savings rate. You can also do the same to find your annual savings ratio. That way, you can decide if you want to save more to live better or if the amount you save makes sense.

3. Emergency fund ratio

Essential monthly expenses x 6

An emergency fund exists to protect you in the event of unexpected expenses or job loss. It’s money you want to keep easily accessible so you can use it as soon as needed.

As a full-time freelancer, I’ve had months where I have a ton of clients and projects, as well as months where business is a little slower. My emergency fund gives me peace of mind that I won’t be in a dire situation if my work schedule changes.

Since the common wisdom is to save 3-6 months of expenses in your emergency fund, this ratio reflects that. Simply multiply your essential monthly expenses by 6 to come up with your target for a fully stocked emergency fund.

When I say “essential,” I mean you might be cutting out some of your “fun” budgets for this one. Just include the things you can’t live without (housing, utilities, food, health insurance, etc).

Our example person may normally spend $2,000 a month, but let’s say that they can pare down their essential expenses to $1,500. $1,500 * 6 = $9000 would be the target for their emergency fund.

Keep this money in an interest-bearing account—ideally, a high-yield savings account. That way, it will remain accessible whenever you need it, but the interest will help you grow your money while it’s there! 

4. Liquidity ratio

Liquid assets divided by monthly expenses

The liquidity ratio is one of the personal finance ratios closely tied to your emergency fund since they both revolve around the idea of liquidity. Put simply, liquid assets refer to (A) cash or (B) other financial assets you can quickly convert into cash.

Money in a checking, savings, or money market account is highly liquid. If you have savings bonds you can cash in any time, they’re liquid.

If you have stocks, bonds, index funds, and other “cash equivalents” or other highly liquid investments that you can easily sell on the market, they would qualify as liquid, too. (However, their value fluctuates more, so it’s not a stable number).

Of course, you can’t just sell your house on a whim for quick cash, so that’s a great example of a non-liquid asset. Money stored in retirement accounts is also illiquid since withdrawals are subject to lots of rules and take time.

Once you have these figures, running the liquidity ratio formula will reveal how many months your liquid net worth could support you. So for someone with $20,000 in liquid assets who spends $2,000 a month, it’s $20,000 / $2,000 = 10 months of covered expenses.

5. Debt-to-assets ratio

Total liabilities divided by total assets

Now we’re getting into some potentially less fun territory: a couple of debt ratios. Don’t be scared if your numbers are higher than you’d like at first. It’s all part of your debt reduction journey!

If you don’t know where you’re starting from, you’ll just be stumbling around in the dark, hoping your debt will be gone one day.

You may also hear the debt-to-assets ratio called a solvency ratio. (Typically, “solvency ratio” is a term used for companies more often than individuals.) It’s a way to see whether you can pay off your debts by selling your assets.

Start by adding up your college loans, any consumer debt like credit cards, personal loans, car loans, and whatever other kind of debt you carry.

Then, calculate the value of your key assets, including all savings and investment accounts, paid-off vehicles, and personal valuables.

If you have $10,000 in total liabilities and $40,000 in total assets, you have $10k / $40k = 25% as much debt as assets.

Is a house counted as an asset or liability?

What about your home? Is a house an asset or a liability? It’s both! Unless your mortgage is paid off, you have equity in your house and debt at the same time.

Homeowners can choose whether or not to add their remaining mortgage balance as debt and home equity as an asset in this ratio. 

Keep in mind that since mortgages are the largest loans most people will have in their lives, including it can make your ratio seem skewed. If you like, you can run the numbers with and without the home factored in to see the difference.

6.  Debt-to-income ratio

Annual debt payments divided by annual income

This is one of the personal finance ratios that will help you figure out how much of your income is being funneled toward your debts each year. 

To start your equation, look at the debts you gathered above. But this time, add up your yearly payments towards each of them.

One exception is that if you’re a homeowner, it’s best to exclude mortgage debt from this equation—that’s a surefire way to kill your ratio! (Plus, housing payments fall more into normal expenses than debt payoff.)

Next, you’ll divide your annual debts by your annual income. Normally, people use their gross income rather than net income for this calculation. Include any income from side gigs and alternative sources as well.

As your debts shrink, the result of this ratio will, too! But if you’re adding new debts or paying things off too slowly, compound interest might increase your debt payments and, subsequently, this ratio.

Someone making $15,000 in annual debt payments while earning $50,000 a year is paying $15k / $50k = 30% of their income to their debtors.

For companies, a similar ratio called the “debt servicing ratio” helps lenders assess a business’s debt repayment ability.

7. Net worth ratio

Total assets minus total liabilities

The net worth ratio is going to be short and sweet! Grab the same numbers you used in #5, but instead of dividing, we’ll simply subtract.

Assets minus liabilities help you calculate your net worth! It’s motivating and fulfilling to watch this number grow over time.

$40,000 assets – $10,000 liabilities = $30,000 net worth.

8. Debt to net worth ratio

Total liabilities divided by net worth

This is very similar to the debt-to-assets ratio.

However, you aren’t just comparing total debt to total asset value with this one. Instead, you’re comparing your debt to the net worth figure from #7—where debt has already been subtracted from your asset value.

The ratio is meant to help you determine how much debt you’ve taken on relative to your net worth.

If your ratio is over 100%, you may feel over-leveraged and struggle with payments. The lower the result, the more comfortable you’ll feel with your debt levels.

$10,000 liabilities / $30,000 net worth = 33% debt to net worth ratio.

9. Housing-to-income ratio

Monthly housing costs divided by monthly income

You’ve probably heard some advice for spending a certain percentage of your income on housing. In the past, the rule of thumb number was 30%. Now, there’s a slightly more detailed model called the 28/36 rule.

The first part (28) means you should aim to spend no more than 28% of your income on your total house payment, including taxes and insurance.

The second part (36) adds your mortgage payment to all your other debt payments and recommends that this total not exceed 36% of your income. It’s effectively the same thing as your debt-to-income ratio from #6 (but a mortgage-inclusive version).

The 28/36 rule is a way to help you weigh whether your home purchase would put you in too much debt.

For instance, if a potential home purchase would bump you too far over the 36% debt-to-income figure, you might want to look at cheaper properties. Otherwise, you run the risk of becoming house poor!

If you’re spending $1,000 a month on housing while making $3,500, you’re spending $1k / $3.5k = just about 28% on housing.

10. Needs/wants/savings budget ratio

50/30/20, 60/20/20, or other

Want a personal finance ratio that gives you a quick guide on dividing your expenses? There are several ways to do this.

Usually, the simplest methods involve breaking down your expenses into needs, wants, and savings. Needs are everything you can’t live without, wants are the nice-to-haves, and savings are what you put aside for your future.

The 50/30/20 rule

One common budget ratio is called the 50-30-20 rule. In this formula, 50% of your income goes to necessities, 30% is reserved for discretionary income, and 20% gets saved.

Let’s see how this might work for someone who makes $3,000 a month. The 50/30/20 ratio would mean $1,500 goes to needs, $900 to wants, and $600 to savings/investments.

Other percentages

All of these numbers can be tweaked depending on your situation.

So if you’re spending 60% of your income on necessities, you might want to aim for more of a 60 20 20 breakdown or even the 70-20-10 budget.

11. Retirement ratio

25x your annual expenses

Ever find yourself asking, “Can I retire yet?” Once you stop working, you want to be confident that your savings and investments will be able to continue funding your life.

It’s a tried-and-true method for understanding what you need in retirement. It’s also based on something called the 4% rule, which refers to the idea that a retiree can safely withdraw 4% of their savings each year with little risk of running out.

Calculating your retirement expenses

Look at your current annual expenses and try to figure out if they’ll be higher or lower in retirement. Perhaps you’ll have a paid-off house by then and eliminate rent/mortgage expenses.

On the flip side, you might want to try full time traveling or have extra for medical care. It never hurts to pad the numbers, but the 25x expenses formula is a great place to start.

Someone who spends $50,000 a year would ideally want $50,000 * 25 = $1.25 million to retire confidently.

12. Credit utilization ratio

Sum of credit card balances divided by total available credit

Your credit card utilization ratio helps show how effectively you manage your available credit. High utilization could signify that you have an unhealthy reliance on debt. 

Utilization is also a big factor in determining your FICO credit score, so it’s worth paying attention to if you’re trying to improve your credit. Understanding and managing this ratio can positively impact your creditworthiness and financial well-being.

Figuring out your credit utilization 

To calculate it, take the current sum of your revolving credit account balances and divide it by the total credit limits across all your accounts.

A lower credit utilization rate helps your credit score. Avoid going over a 30% credit utilization ratio—keeping it at or below the 10% range is ideal. Focus on paying off outstanding debts and limiting the balances you carry from one month to the next. 

Consider a scenario where your credit card balances amount to $2,000, and your total credit limits across all cards are $10,000. The credit utilization ratio would be $2k / $10k = 20%. This indicates that you’re using 20% of your available credit. 

The good thing about utilization is that it essentially changes every month. Even if you have a high ratio for one month, you can pay down your balances and return to a low utilization in no time.

13. Student loan debt to starting salary ratio

Total amount of student loan, divided by expected starting salary

College is notoriously expensive. And unless you know how to get a full ride scholarship or have a college fund, it can be hard to stare those student loan offers and interest rates in the face and ask yourself, is it worth it?

The debt-to-salary ratio provides a simple guide for college students and their families to help answer this question. Will your degree be worth the debt in the long term?

This formula helps you determine the maximum loan amount to borrow for a particular degree program.

How do I tell if my college degree will be worth it?

Since you can’t predict the future, it’s impossible to calculate the exact ROI (return on investment) for a college degree. But you can look at the job market in your target field and determine what starting income you can expect after graduation. Websites like salary.com can help with this research.

Your results will also help you plan a realistic debt repayment schedule for your college loans. As a rule of thumb, students should limit their debt-to-starting-salary ratio to less than 100% to repay the loans over approximately a 10-year period. (Of course, interest rates can affect the exact timeline.)

So, let’s say you take out $30,000 in loans, and your anticipated starting income is $50,000. The debt to starting salary ratio would be $30,000 / $50,000 = 60%. The result indicates that your debt would be 60% of your expected starting salary, which is relatively conservative and reasonable.

On the other hand, borrowing $60,000 for a degree that leads to an average starting salary of $30,000 does not make as much financial sense. That would put the ratio result at 200%—double the recommended amount.

No matter what your degree costs, enroll in our free student loans 101 course bundle to ensure you clearly understand how they work.

14. Loan-to-value ratio

Remaining mortgage amount on a property, divided by its appraised value

The loan-to-value (LTV) money ratio is a crucial metric in the realm of real estate financing. Lenders reference this ratio as a part of the mortgage approval process. They also consider it for refinancing and home equity line of credit (HELOC) applications. A low LTV is good because you owe less on the loan.

Whether you’re a current homeowner or a prospective first time home buyer, this personal finance ratio will be relevant to you.

How the LTV ratio works for new home buyers

If you’re buying a home, your initial LTV will depend on the size of your house down payment. Let’s say you put 20% down on a house valued at $200,000, so your down payment is $40,000 and your mortgage is $160,000. 

That makes your LTV ratio equation $160,000 / $200,000 = 80%.

If you only put 10% down, you’ll be left with an LTV of 90%. Higher LTVs on new home purchases can come with additional costs, like higher mortgage interest rates and private mortgage insurance (PMI). 

The larger your down payment is, the smaller your LTV will be, and vice versa. Saving up at least a 20% down payment will get you the most favorable terms.

How the LTV ratio works for homeowners

For current homeowners, the LTV represents how much equity has built up in your home, i.e. how much of the mortgaged property you own. This figure also determines whether you can refinance at a lower interest rate or access a home equity line of credit.

Your LTV will decrease as you pay your mortgage, but it can also change if your appraised property value changes. 

In some cases, LTV can increase if a property’s market value drops. It can happen if there’s property damage (e.g. from flooding) or a recession hits. But it’s much more common for your LTV to decrease as your real estate value grows, which is a beneficial change.

Let’s say you bought our example home when it was valued at $200,000. After five years, you still owe $125,000, but your property value has appreciated to $250,000. That new value is the figure you’ll use for the ratio: $125,000 / $250,000 = 50% instead of $125,000 / $200,000 = 62%. It’s like getting extra equity for free!

Expert tip: Consider money ratios within the context of your life

Okay, you’ve just gone through a lot of math—take a breath! Now is the time to remember these math equations are most insightful when you put them into context. A single ratio isn’t going to provide a comprehensive view of your financial health. 

You should never feel bad if some of your ratio results are above or below the ideal numbers. You don’t have to live and die by money ratios! They’re just a guide, and there’s always room for exceptions and flexibility based on your unique situation. 

Maybe your desired college degree doesn’t come with an amazing starting salary…but it’s a field you’d love working in, with great future growth opportunities. Don’t rule it out because of a math equation.

Consider them all within the context of your personal core values, needs, and goals to make them work for you.

Why are personal finance ratios important for you?

These ratios are great ways to distill tried-and-true financial wisdom into simple formulas that anyone can use.

If you want to know whether your savings are on track—there’s a ratio for that. Curious if you’re spending too much on housing? There’s a ratio for that.

Knowing your financial numbers can help you improve your life

Furthermore, keeping a record of these numbers lets you reflect on where you came from. As you learn new frugal life hacks, you can pare down your expenses and improve your cash flow ratio.

As your income grows and you pay off debt, those debt ratios shrink in front of your eyes while your net worth swells.

They’re some satisfying little equations that give you another way to track your finances and set new goals.

What are the most important ratios for money?

Finance is a highly individualized journey, so the importance of specific ratios can vary based on individual circumstances and financial goals. But in general, there are a few ratios that everyone should be paying attention to.

The emergency fund ratio is one of my top recommendations for the beginning of your financial journey. Life can throw curveballs at anyone, anytime.

Having at least six months of expenses squirreled away helps give you a runway to figure things out if you get laid off, need to pay for a surprise home or car repair, etc.

I’ll also highlight the savings ratio, which includes traditional savings and investments. Savings are essentially your key to the future. They put all your goals in reach, whether it’s buying a house, paying off your loans, or early retirement.

What is a good debt to net worth ratio?

A good debt to net worth ratio strikes a healthy balance between leveraging debt for wealth-building and avoiding excessive indebtedness.

You might think it’s best to strive for no debt.

However, while that may be a worthy goal for some people, it isn’t always the case. In some situations, debt can be a tool to help you better your financial health. 

It ties into the concept of types of debt, like good debt vs. bad debt.

For example, student loan debt or business debt can help you earn more money throughout your lifetime. But credit card debt will eat your income with its high-interest rates.

You can think about it in terms of these ranges:

• Safest range: A ratio below 50% is generally considered healthy—indicating that your net worth is at least twice your total debt. 
  
• Moderate range: Ratios between 50-100% can still be manageable, depending on the situation. Evaluate the types of debt you have, its purpose, and whether it contributes to your overall financial well-being.
  
• Cautionary levels: Ratios exceeding 100% indicate that your total debt surpasses your net worth. It signals a higher level of financial risk, so proceed carefully and ensure you have a solid debt repayment strategy.

Articles related to organized finances and financial literacy

If you’ve added these ratios to your financial toolkit, you’ll love these reads!

• The 23 Best Financial Literacy Books
• Financial Freedom Vs Financial Independence: The Difference
• 7 Financial Literacy Basics We All Need To Know
• How To Manage Your Money: 19 Tips To Do It Right

Calculate your personal finance ratios!

Now it’s officially your turn!

In order to start crunching the numbers, you’ll need some key pieces of information in front of you. The main things you’ll need include:

• Total annual income
• Total monthly income
• Total debts/liabilities
• Monthly expenses (broken down by category)
• Total asset value
• Liquid asset value (aka cash or things you can quickly turn into cash)
• Credit limits on your cards
• Real estate value (for property owners)

Once you have these figures in front of you, the rest is just plug-and-play. You can recalculate these personal finance ratios as often as you want—say, once a month, once a quarter, or once a year—to stay on top of your personal financial plan. Over time, if you stay the course, you might even learn how to become wealthy!

The post 14 Most Useful Personal Finance Ratios And How To Apply Them appeared first on Clever Girl Finance.

When it comes to your financial health, your income is one of the most important numbers in the equation. Additionally, there are a lot of details to consider how much money you actually earn each month. So, 45,000 a year is how much an hour? What about after taxes and benefits? Well, we’ve got the answers right here!

When you’re comparing the income potential of various job opportunities, it’s rarely as simple as “this job pays $X, and this job pays $Y.” Some jobs pay a salary, while others pay hourly. Some fall under different tax situations that can affect your take-home amounts.

And, of course, you’ll need to factor in other forms of compensation like benefits and bonuses, especially if you’re wondering how to save money from salary jobs.

That means if you’re wondering, “$45,000 a year is how much an hour?” — there is a simple answer and a detailed answer. Luckily, in this article, we’ll be looking at both! 

$45k a year is how much an hour…as gross pay in a 9-5 job? How much an hour is 45000 a year…after taxes?

How might this number be affected in a freelance job? What other factors should you consider? What kinds of jobs earn a $45k salary? Let’s find out together!

$45,000 a year is how much an hour, day, week, or month?

How much an hour is 45000 a year? Let’s start by looking at the numbers in their simplest form. 

If you’re working the equivalent of 40 hours a week for 52 weeks a year, then that adds up to 2080 hours over the course of one year. Thus, to answer $45k a year is how much an hour, we simply have to divide $45,000 / 2080. 

$45,000 a year is how much an hour? About $21.63.

Remember, this doesn’t factor in anything else.

For instance, holidays, vacation time, sick days, if you are working overtime, and things like that may shift your number of actual worked hours up or down. In addition, various paycheck deductions will affect your real take-home amount.

But in general, if you’re earning $45k a year, you can think of yourself as earning around $21 an hour.

Now, let’s crunch some of the other numbers… 

If you just wanted to know the simple answer to “$45k a year is how much an hour?” then you’re done! But if you’re curious about breaking down the details, let’s get into it.

How much an hour is 45000 a year after taxes?

Your income may look very different with pre-tax income vs. after taxes. Sure, your total salary may be $45,000, but your “real pay”—the amount you take home—will be less after Uncle Sam takes his cut. Let’s look at the three main categories of taxes you can expect to pay in the US.

Federal income taxes

In the US, we have a progressive federal tax system, which means that income taxes are charged at different rates based on tax brackets. So, not all of your income will be taxed at the same rate, and rates can change from year to year. 

According to Investopedia, for a single filer earning $45,000 in 2024, you’ll be taxed about $5,167 total:

• 10% on your first $11,600 = $1160
• 12% on the amount between $11,601 and $47,150 = $4007

As you can see, your income falls into the lower 10% or 12% brackets.

Of course, these calculations don’t factor in any taxable income deductions, which can reduce what you owe. But to give you a general idea of average numbers, let’s keep a tally as we go! $45,000 – $5,167 brings your take-home income to $39,833 so far. 

Social Security and Medicare taxes

On your paycheck, you’ll also notice withholding lines for Social Security and Medicare taxes. These are a little more straightforward since they’re both a flat rate for everyone!

Someone earning $45,000 will pay about $3,442 in social security and Medicare tax, according to the IRS percentages. Here’s how it breaks down:

• Social security: your employer pays 6.2% and withholds another 6.2% from your paycheck. 6.2% of $45,000 =about $2,790
• Medicare: your employer pays 1.45% and withholds 1.45% from your check. 1.45% of $45,000 = about $652

Keeping the tally going, $39,833 – $3,442 means now you’re taking home $36,391.

State income taxes

Where you live can make a significant difference in how much you take home after taxes. However, some states don’t charge income tax at all. Others have a flat-rate state tax system that applies regardless of income. And many states mimic the federal progressive tax system by using income tax brackets. 

Learn more about state tax rates here.

Since this number varies from state to state, your take-home total could now be anywhere from around $34 to $36k. Local income taxes could lower this amount further.

If your post-tax income is closer to the lower end of $34,000, that would equate to an hourly take-home rate of approximately $16 per hour. 

Calculate your taxes

Since these figures can change based on the year, the state you live in, etc., it’s always best to crunch the numbers for yourself!

Plug your information into a tax calculator to easily add up all these figures based on your personal situation. That will give you the best personalized answer to $45,000 a year is how much an hour after taxes.

Expert tip: Calculate your total compensation not just salary

When you’re evaluating job opportunities, salary is only one part of the picture. You should always be thinking about the total compensation it offers.

A job may pay a base salary, and then have extra opportunities for bonuses or commission payments. Or, two jobs may have equivalent salaries, but one offers more paid time off, a higher 401(k) match, and a learning stipend.

As another example, even little things, like free gym memberships or office lunches, can be factored into your total compensation calculations.

Plus, don’t forget to consider factors that affect your life but may not come with a monetary price tag.
Does a job have flexible hours? Will you have to spend a lot of time commuting, or is it remote-friendly? Are you expected to be on call, or will you have a predictable work-life balance?

While you may have to make some compromises, weighing all these factors (along with your personal priorities) will help you make informed career choices that bring you satisfaction and financial gain.

Jobs and careers that pay $45,000 a year

Let’s take a peek at some of the jobs that fall smack dab in the $45,000 range. Additionally, we’ll see what kind of career advancement you can access from these jobs.

1. Dental assistant

Mean yearly wage according to the Bureau of Labor Statistics: $44,710

Dental assistants take X-rays, help with patients, and manage patient records, etc.

To level up in this career, you could become a Certified Dental Assistant (CDA) or pursue specialization to assist in areas like orthodontics or oral surgery. With experience and advanced training, you can move into higher-earning roles like dental office management or dental hygiene.

2. Office/administrative support

Mean yearly wage according to the Bureau of Labor Statistics: $45,550

The umbrella career of “office and administrative support professionals” encompasses administrative assistants, receptionists, data entry clerks, customer service representatives, HR assistants, and more.

People in these jobs may handle tasks like managing schedules, answering phones, organizing files, assisting customers, etc.

To work your way up from a role like this, you can pursue training for higher office roles, like executive assistant, office manager, HR representative, project manager, etc. Ask your manager if there are specific things you can do to reach the next level. You might also learn how to become a virtual assistant with no experience to earn more in a related field.

3. Bookkeeping, auditing, or accounting clerk

Median yearly wage, according to the Bureau of Labor Statistics: $45,860

This career can work out well if you are good at math and numbers. Typically, you’ll keep track of and produce financial records.

If you want to earn more, consider becoming an accountant, as the pay goes up significantly for this type of role.

4. Personal chef or cook

Mean yearly wage according to the Bureau of Labor Statistics: $45,510

If you have experience working in kitchens, becoming a private chef could be a welcome transition from the chaos of a restaurant.

For instance, individuals, families, and private organizations may hire private chefs to create menus, shop for ingredients, and cook meals that accommodate for various dietary needs and preferences.

Those who enjoy this field can focus on building a strong reputation and expanding their client base to wealthier individuals. Or, work towards opening your own catering business or restaurant.

How can I earn more than $45k a year?

Now you’ve answered that $45,000 a year is how much an hour question, and if you’re currently earning $45,000 a year and want to bump that number up, we’ve got you covered! Here are three ideas to help you bring in more cash.

1. Start a side hustle

If you have free time outside of your day job hours, starting a side business can immediately boost your income! And there are a ton of ideas, so you can choose a gig that best matches your skills, interests, and personality.

Freelancing

As a freelancer, you have the flexibility to choose your clients, projects, and work hours so you can work around your existing schedule.

Leverage your expertise in areas like writing, graphic design, web development, or digital marketing, and figure out how to start freelancing with no experience! As a beginner, you can find clients through platforms like Upwork and also Fiverr.

E-commerce business

You can set up an online store to sell a wide range of products, whether they’re physical goods or digital downloads. Figure out what to sell on Etsy or check out Shopify, which provides user-friendly tools to help you establish an E-commerce business. 

Service-based hustles

The beauty of service-based side hustles is that you can tailor them to your interests and expertise.

For example, do you love pets? Offer to pet sit or dog walk in your community.

Yoga buff? Then, get certified to teach classes at a local studio or gym!

Skilled at an academic subject like math or English? Become a tutor.

Gig economy apps

If you have a smartphone and a car, a new side gig could only be a few clicks away! Popular gig economy apps include ride-sharing services like Uber, food delivery platforms like DoorDash, and projects and tasks using a platform like Taskrabbit.

2. Improve your skills

Whether you want to climb the ladder in your current career or transition to a new field, it all starts with improving your skill set. Here are a couple of tips to start with.

Identify marketable skills

Take some time to research the skills that are in demand in your industry (or desired field).

For instance, these could be technical skills, soft skills like communication or leadership, or specialized knowledge that will set you apart.

Invest in education and training

Consider enrolling in online courses, workshops, or pursuing a higher degree or certification relevant to your career aspirations. Continuous learning will make you a more attractive candidate and equip you with the knowledge and confidence to take on more challenging roles and responsibilities.

Apply for a new job or promotion

Once you’ve honed your skills and feel confident in your abilities, it’s time to turn that into a higher salary! Update your resume, showcase your newly acquired skills, and actively find a new job that offers better compensation and growth prospects.

3. Earn passive income

Find the best passive income ideas to supplement your salary. Let’s check out a few of them!

Invest your money

Answering $45,000 a year is how much an hour is just part of the equation.

However, investing your money wisely can generate passive income streams over time. Stocks, real estate investments, ETFs, and other kinds of investments can yield dividends, interest, and capital gains that boost your income. Learn about how to start investing for beginners!

Create content

If you have creative talents or expertise in a particular field, consider creating content that can generate passive income.

For example, this could include writing and publishing books, creating online courses, building apps, etc.

Rent out your assets

You can rent out more things than you think—from designer clothing in your closet to tools in your garage. Or even sell designer handbags for cash! Platforms like Airbnb for property rentals or car-sharing services like Turo can help you monetize your assets when you’re not using them.

How much is $45000 a year biweekly?

If you’re paid on a strict schedule of every two weeks, 45k a year biweekly for your gross paycheck figure should be $1730. (Again, you can expect taxes and deductions to reduce the amount that actually hits your bank account!)

Many jobs pay employees every two weeks. Since there are 52 weeks in a year, we simply divide that number in half: there are 26 biweekly pay periods in a year. Then, we’ll divide $45,000 by 26 to get our answer.

Other jobs pay on a slightly different cadence, e.g., on the 1st and 15th of each month. This is almost every two weeks but shakes out to 24 pay periods throughout the year instead of 26. If you’re paid twice a month like this, your gross paycheck should be $1875 instead. And don’t forget to create a biweekly budget!

Is 45k a good salary?

It can be, but it depends on your lifestyle and circumstances. USA Today (based on U.S. Bureau of Labor) explains that the average annual wage at the end of 2023 was approximately $59,000, which means $45k is technically a below-average salary. That said, the answer to this question is truly all relative. 

The cost of living is probably the biggest consideration here. A $45k salary will go much further in a rural or low-cost area compared to a major city with a high cost of living. 

It also depends on your personal circumstances.

E.g., do you have dependents? Single or dual-income household? How far along in your career are you? What other benefits and perks come with the job?

Ultimately, it’s up to you to consider how your salary aligns with your overall financial goals and quality of life. If you don’t feel like you’re earning enough, here are some tips on how to ask for a raise.

How much is $45,000 a year per month?

Dividing $45,000 by 12 comes out to $3750.00 a month, gross.

However, after taxes, your take-home pay will probably be closer to $35,000 (depending on various factors), which would leave you around $2900 per month for expenses.

Most of our bills are due on a monthly basis: rent or mortgage, car payments, insurance, credit cards, etc. When you’re budgeting with your monthly expenses list, it’s important to have a clear picture of your monthly income.

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• The 5 Biggest Salary Problems Women Face
• $50k A Year Is How Much An Hour?
• What Does A 5 Figure Salary Get You?
• How Much Is A 40k Salary Hourly, Bi-Weekly, And Monthly?
• $60,000 A Year Is How Much An Hour?

Build your career plan to earn $45k a year and beyond!

It’s always smart to keep brainstorming how to reach the next level in your career and achieve all of your financial goals. Knowing how much an hour is 45000 a year is a good place to start.

Whether you’re aiming for a $45,000 annual income or higher right now, remember that your career journey is uniquely yours, and the possibilities are limitless when you’re armed with the right strategies and determination. Here are five tips to set yourself up for career success!

The post $45,000 A Year Is How Much An Hour? appeared first on Clever Girl Finance.

When you’re new to investing, it can seem like there’s a lot of information to learn. But you have to start somewhere—so you might as well start with the best investing websites right off the bat!  

These days, the best investment websites don’t just throw you in the deep end to figure everything out yourself.

Instead, they equip you with the knowledge and tools you need to make investment choices and use their platforms successfully. From educational resources to trading simulators to robo-assistants, the best investing websites have a ton of useful features to discover.

So let’s explore six of the best investment websites for beginners and understand how to use them for research and analysis to learn how to start investing!

But first, why are these the best investment websites?

What makes the best investment websites the best?

Different people often have different criteria for selecting the best investing websites. So that means it’s important to know which factors they care about and why. 

For instance, one person might deem the best investment research websites to be ones that tell you things like, “This company is hot right now! Buy this stock today!”

Personally, I tend to stay away from investment analysis sites like that because data has shown that picking individual stocks is rarely the most successful way to invest. Even professional hedge fund traders tend to under-perform index funds, according to CNBC!

So you should be wary of information that promises or implies that you’ll be able to get rich quickly with a certain stock or by day trading. (Learn more about the advantages of investing with index funds!) 

In this article, we’ll focus more on the best websites that make it simple to start investing and then grow your financial knowledge.

We’ll be looking for things like:

• Educational resources, as well as investment tools
• A user-friendly layout
• Free or at least low fees
• Updated features
• Options for both automated and manual investing
• Great analytics to help you monitor your results/progress
• Solid security & privacy
• Mobile app access
• Responsive customer support

With this in mind, let’s get started!

6 Best investing websites for research (and taking action!)

As we go over the six best investment websites, we’ll be looking at a few different things.

First, we’ll see what kind of resources are available to help beginners build their investment strategies.

Then, we’ll look at the features that stand out in each of the best investing websites.

Finally, we’ll sum up what makes the site a great choice for beginner investors. 

Most of the websites below have educational resources and options to turn your new knowledge into reality by opening your own accounts. So that means if any of these platforms stand out to you, you can start your investment journey as early as today!

1. Fidelity

Fidelity is one of the most popular investment firms out there—and for good reason! Founded in 1946, it’s a well-established firm with a great track record and a diverse range of investment options.

For instance, they have their own collection of index funds with no expense ratios or minimum investments (AKA cheap and accessible for beginners)!

In addition, it offers a user-friendly platform with research tools and learning resources for investors of all levels. 

Fidelity research & education

You’ll find a diverse range of resources on Fidelity, including articles, videos, webinars, and more.

The Fidelity Learning Center features insights on investing, retirement planning, and other financial topics. Topics can be as basic as “What Are Stocks?” and range to more complex strategy talk.

Other research tools on the platform include stock search tools, market analysis tools, and independent research reports. 

Fractional share investing

Invest in high-priced stocks and funds with smaller amounts of money.

Retirement planning tools

Fidelity provides retirement planning tools, including calculators, educational content, and retirement income planning help.

Robust mobile app

Want to manage your investments on the go? Fidelity’s mobile app provides easy access to account management tools.

Robo-investing through Fidelity Go

Fidelity Go is great if you’re interested in a “set it and forget it” investing strategy. Personalized robo-advisors like Fidelity Go are also a cheaper way to have your investments managed for you.

Is Fidelity good for beginners?

Whether you’re new to investing or you’re ready for the next level, Fidelity is a great place to gain knowledge.

The Fidelity Learning Center provides valuable content to help beginners understand investing concepts, while the user-friendly platform and mobile app make it simple to jump in and start your own accounts.

2. Charles Schwab

Another important name in the brokerage space, Charles Schwab was one of the first firms to push the industry toward low-cost trading.

In order to make investing more accessible to all, they got rid of trade commissions entirely in 2019!

In addition, their recent acquisition of TD Ameritrade means users will benefit from the best features and resources from both platforms.

Charles Schwab research & education

Charles Schwab offers a huge array of educational content through its Insights & Education section, covering investing strategies, market updates, retirement planning, etc. They even have an original podcast called Choiceology.

Schwab also provides its clients access to third-party research reports and tools. The brokerage offers webinars, workshops, and online courses to help investors improve their skills.

Once the merger with TD Ameritrade is complete, Schwab investors will also have access to courses and resources from its Education Center. Also moving over is TD’s popular thinkorswim platform which offers paper trading and in-depth technical analysis tools. Paper trading is a simulation of trading without using real money.

Schwab intelligent portfolios

Schwab Intelligent Portfolios is a robo-advisory service that creates diversified portfolios based on how risk averse you are and your goals.

Global trading

Schwab provides access to international markets and foreign currency trading.

Schwab stock slices

Stock slices are Schwab’s version of fractional investing—buy partial shares of popular stocks for as little as $5.

Thematic investing

Align your passions and values with your investments with Schwab’s “thematic stock lists” feature. From sustainability to artificial intelligence, this lets you invest in the future you want to see.

Is Charles Schwab good for beginners?

Charles Schwab is one of the best investing websites for beginners, offering a mix of educational resources and tools.

For instance, its robo-advisory service simplifies portfolio management, and the educational content helps beginners grasp trading basics. The platform is easy to use for various skill levels, though beginners may find the range of features a bit much initially. Schwab also has a well-reviewed mobile app. 

3. Vanguard

Vanguard is well known for its focus on low-cost index funds and ETFs.

In addition, one thing that really sets it apart is that there are no private owners or shareholders—the owners of Vanguard are its clients.

Founder John Bogle set it up this way in order to ensure that Vanguard’s interests would always be aligned with the interests of its investors. 

Vanguard research & education

Vanguard’s educational focus is on long-term investment principles and cost-effective strategies. While it doesn’t offer as many tools as some other brokers, the site provides investors with a library of research and educational articles, webinars, and calculators to help them understand key investment concepts.

Ownership structure

As mentioned in the intro, Vanguard is client-owned, meaning its funds are owned by the investors in those funds.

Low-cost index funds

Vanguard is known for pioneering low-cost index fund investing, helping reduce overall investment expenses, and encouraging a patient, long-term investment philosophy.

Vanguard personal advisor services

The company offers a hybrid robo-advisory service combined with access to human financial advisors.

Portfolio watch feature

A tool that analyzes your portfolio to make sure your investing strategy matches your goals so you can follow your dreams. 

Is Vanguard good for beginners?

Compared to some of the other sites on this list, Vanguard’s website and features are more basic.

However, Vanguard’s simple interface and focus on long-term investing may be good for beginners looking for a passive investment approach. It’s mainly designed for buy-and-hold investors who don’t necessarily need the most modern features. (Luckily, it is modern enough to have its own app!)

4. InteractiveBrokers

InteractiveBrokers is known for its advanced global trading platform and a broad range of investment options, including stocks, options, futures, and more.

It caters to active traders and offers competitive pricing, advanced charting tools, and global market access. Of course, they also let users trade on the go through the IBKR Mobile app.

InteractiveBrokers research & education

Even though it’s on the advanced side, InteractiveBrokers makes the list because of its financial education platform at Trader’s Academy. If you want to really deepen your knowledge of investing, this is a great resource. 

The courses at Trader’s Academy are very thorough and explain the theories underlying each concept. You can learn about everything from economics to how the US labor market works, to options and stocks, and much more.

There are also courses that relate specifically to using the InteractiveBrokers platform if you’re interested in giving it a try.

Comprehensive investment variety

You can trade almost any type of investment here, even more niche things like investing in cryptocurrency.

Paper trading

Users who have approved, funded investing accounts can also open paper trading accounts to learn and experiment.

Advanced trading tools

Although this is less important to beginners, the platform is famous for its powerful trading platform with advanced features, including customizable algorithms.

Impact dashboard

Impact dashboard helps conscious investors build a portfolio that matches their values.

Is InteractiveBrokers good for beginners?

As a brokerage, InteractiveBrokers is almost certainly the least beginner-friendly option on this list. After all, it has a complex interface and a focus on advanced trading tools.

However, their Trader’s Academy is a standout when it comes to educational resources. Since you don’t even need an IB account in order to access the courses, it’s worth checking them out.

5. Merrill Edge

Merrill Edge is the online brokerage of Bank of America. It offers a solid array of $0 minimum investment options and research tools on a user-friendly platform.

It’s a good option for Bank of America customers for its seamless integration with the bank’s services and its accessibility to a variety of financial products.

Merrill Edge research & education

In partnership with Morningstar, Merrill Edge has developed an Investing Classroom. Here, you’ll find a series of short courses on stocks, funds, bonds, ETFs, and portfolio types. This makes it one of the best investing websites.

Courses also come with quizzes, which you can use to gauge your knowledge or test what you’ve learned. Don’t miss the webinar series, which covers topics from financial psychology to sustainable investing.

In their Tools & Calculators section, you’ll find resources to help you crunch the numbers for college planning, retirement goals, and general personal finance. Users also have access to the BofA Global Research platform, which provides research reports, market insights, and analysis from Bank of America. 

Bank of America integration

This brokerage seamlessly integrates with Bank of America accounts, providing easy transfers and account management.

Preferred rewards program

BofA members who enroll in preferred rewards get banking benefits (e.g. an interest boost on savings and credit card bonuses).

Merrill guided investing

This is an automated investing service that will help you build and rebalance a portfolio that fits your goals.

Is Merrill Edge good for beginners?

If you’re already a Bank of America customer, using Merrill Edge should feel natural and familiar. Its trading tools may be a little more basic compared to other platforms, but if you’re a long-term investor, you don’t need anything fancy. You can also manage your accounts and investments through the Merrill Edge app.

6. Investopedia

This last one is a little different because it’s the only one that isn’t a brokerage, but it is one of the best investing websites! Investopedia is one of my favorite sources of financial knowledge.

It has a wealth of educational articles, recommendations, and news about current market events. No matter what subject they’re covering, the goal is to simplify concepts in a way that anyone can understand.

Investopedia research & education

Essentially, the whole Investopedia site is about research and education.

Content ranges from simple concepts like stocks and bonds to more advanced things like technical analysis. Their mix of information with real-world examples and interactive tools helps make the investing process easier, empowering newcomers to make informed decisions. 

Comprehensive educational resources

What sets Investopedia apart is its ability to simplify complex financial terms and concepts, making them easily understandable for beginners.

The resources on Investopedia are accessible to individuals at all levels of expertise in finance who have money goals.

Realistic stock market trading simulator

The platform offers a highly realistic stock market trading simulator that helps users practice trading stocks, options, and ETFs using virtual money. This experience helps users learn how to navigate the dynamics of the market without real financial risk.

Up-to-date market insights

Investopedia provides up-to-date market news, analysis, and trends, keeping readers informed about the latest developments in the financial world. This feature enables investors to stay aware of market shifts and, in turn, make more informed investment decisions.

Is Investopedia good for beginners?

Overall, Investopedia is a good starting point for beginners to build a strong foundation in the world of investing. And their stock market simulator is free, so give it a try!

Expert tip: You can use more than one investing website!

In the past, many investors picked one brokerage, kept all their investments there, and stayed loyal to it forever. Today, you’ve got options with the best investing websites!

Want to do your research on Investopedia, start a retirement account at Fidelity, and keep a “fun money” account at InteractiveBrokers? You can! Or, you can experiment with a few different sites and choose your favorite once you have more perspective and experience.
 
Before you open any new account, make sure to read the terms and conditions so you’re aware of any potential fees or restrictions. Once you have an account (or two or three), be sure to monitor it regularly to make sure your goals are on track.

How can I invest $1,000 right now?

The best way to invest $1,000 right now is to take a look at your current financial situation and your immediate goals. Let’s check out a couple of examples!

First, if you don’t have an emergency fund, then use the $1,000 to start one! Here’s a quick guide on creating an emergency fund and why it matters.

However, if you’re carrying high-interest debt, like credit cards, it might make more sense to pay extra on that if you’re unsure whether to pay off debt or save. (This way, you’ll save money on future interest payments!)

If you already have an emergency fund and minimal debt, then it’s time to invest! I suggest starting by opening a retirement account to build retirement savings, like a personal IRA or a 401(k) through your work. These accounts are available at many of the best investment websites listed above!

Once you have an account, use the above-mentioned research and education tools to figure out what stocks, bonds, or funds to buy with your $1,000 within the account.

Where to invest 100 dollars in stocks?

Whenever you find yourself with an extra $100 to invest in stocks (or even an extra $20), you can use that money to help build your financial future! One great option is to invest in fractional shares of index funds or ETFs.

Let’s say that you’d like to invest in a certain ETF, but it costs $200 per share, and you only have $100. At brokerages that allow you to buy fractional shares, you can use that $100 to buy half a share of your chosen ETF. This way, you don’t have to wait to get the investments you want!

Here are some other ideas for how to maximize small investments and invest smart. 

What is the most trusted investment company?

Some of the largest and most trusted brokerage firms include Fidelity, Vanguard, and Charles Schwab. Trust is crucial when you’re deciding where to keep your money. If this is a big consideration for you, stick with one of the tried-and-true options!  

On the flip side, it’s usually better to avoid the newer, shinier investing apps that don’t have an established track record yet. Here are some signs an investment app isn’t trustworthy.

Articles related to the best investing websites

If you enjoyed reading about investing websites, check out these other articles about investing!

• Investing Money For Beginners: How To Start Investing Today!
• Popular Low Cost Index Funds
• Real Estate Investing For Beginners: Getting Started
• Invest Smart: How To Maximize Small Investments

Pick the best investing website for you and get started!

Now that you have an idea of the best investing websites to use for research, analysis, and trading, it’s time to make your own plan!

Start by learning how to start investing and make a game plan. You can also enroll in free CGF courses on investing and business to continue growing your financial knowledge.

The post 6 Best Investing Websites For Beginners: Research And Analysis appeared first on Clever Girl Finance.

There are two basic ways to make money. The first is the traditional way: getting out of bed in the morning and going to work at a full-time job. But the second way, using the best passive income ideas, is a lot more fun because it means you get to earn money while you’re sleeping, reading a book, in the middle of a lake on your kayak, or anywhere.

Once you’ve got them set up, the best passive income ideas require little to no active effort from you.

Most of these require a bit of startup capital, so your first step will be building up some savings through a saving game or budgeting. After that, get ready to learn how to make your money work for you!

Knowing how to create passive income opportunities with no money is a bit trickier and narrows your options.

However, there are still a variety of ways to make passive income and increase your cash flow.

Top 30 best passive income ideas

Without further ado, let’s dive into 30 of the best passive income streams! For further learning, be sure to check out our list of great passive income books, and also learn the key differences between active vs passive income.

1. Build a niche affiliate website

A great source of passive income is to build a website. The upfront work of this method includes finding a niche to write about, creating an attractive website, researching keywords that will drive traffic to you, and joining affiliate programs.

Once it’s set up, you’ll earn ongoing income from any affiliate sales your content generates.

You can make occasional updates to keep the site active and also update keywords. For websites like these, think small and specialized.

Review websites for a specific type of product that can be successful and easy to monetize, and research the types of blogs that make money. You can also make a YouTube channel or other social media accounts to create more content related to your website.

2. Create apps or software to sell

If you already have tech skills, think of a program that would improve people’s lives or be fun to use. Even simple apps can be successful.

For instance, look at the story of Flappy Bird: an extremely simple yet addictive game that went viral and at one point was earning its creator $50,000 a day from ad revenue.

The Flappy Bird story is an exception rather than a rule, but it demonstrates that you don’t have to build the fanciest, most complicated apps to earn a profit.

Once your app is available for sale, there’s little ongoing work besides making any necessary updates. There are lots of resources where you can learn how to build an app to make money.

3. Publish eBooks

Self-publishing books on Kindle is one popular way to monetize fiction or nonfiction writing. Actually, writing the book will require the most time and effort, but it’s also one of the best passive income ideas. You’ll also need to market your book in order to let readers know about it.

After that, you get to sit back and make sales! Even if you only charge a couple of dollars, it can add up as people continue buying copies for years into the future.

4. Own rental properties

Rental properties are one of the best passive income ideas, and one of my personal favorites for making money. But if you’re not up for the job of screening tenants and being a landlord, you can turn this into a passive income strategy by hiring property managers. Of course, property managers are an added expense, but it takes a lot of work off your hands.

Owning rental properties is not without risk.

For instance, the property could stay vacant for too long, or repairs might cost you a lot of money. Even so, with caution and due diligence, owning real estate can be very lucrative.

5. Buy bonds and/or Certificates of Deposit

Bonds and CDs (certificates of deposit) are two of the very low-risk best passive income streams. The tradeoff for this safety is usually fairly low returns and having your money committed for a certain amount of time.

There is usually a penalty if you need to withdraw early, so make sure you don’t need the cash soon.

So how do savings bonds work? With bonds, how much they pay mostly depends on how stable the bond issuer is. 

U.S. savings bonds are government-guaranteed and are very safe. Corporate bonds depend on a variety of factors to determine their risk factor and interest rate.

And what is a Certificate of Deposit? It allows you to place a specific sum of cash into an account and earn interest on it in a low-risk way.

It is sort of like a savings account, except you can’t remove your money until the term is done. But at that point, you’ll have extra money in addition to the original amount due to interest.

6. Sell stock photos

One of the easiest and best passive income streams to start is selling stock photos.

Although this isn’t a passive income idea that will usually make you rich, it is relatively easy.

Once you’ve done the work of taking photos and listing them on a stock photography site like Shutterstock, your photos can bring you a little cash on the side for years to come.

These days, most smartphone cameras are capable of producing high-quality images. So you don’t necessarily even need to upgrade your equipment (unless you’re already a hobbyist photographer and have a DSLR on hand!).

Think about the types of photos companies might want to use for websites, articles, etc. The subject matter might not always be the most exciting, but getting paid is exciting!

7. Own a vending machine or ATM

Vending machines and ATMs are some of the more unusual ideas that not as many people realize are possible. You find vending machines and ATMs everywhere but might not stop to consider who owns them! And it’s a great passive income resource.

When you buy or rent an ATM, you can place it in a location you are the owner of or negotiate to share profits with someone who has property in a more lucrative location.

You make a profit from ATM fees charged each time someone uses the machine. You’re responsible for keeping the machine stocked with cash, but you can turn this into a passive income source by outsourcing this work to a trusted third party.

A vending machine business is similar. You’ll want to place it somewhere with a decent amount of foot traffic, and you can outsource the restocking of snacks or drinks inside the machine. Inventory costs can be very low when you’re buying in bulk, so it’s a chance for a decent profit margin.

8. Flip domain names

Domain names are sort of like the real estate of the internet: everyone wants a good one, but there’s a limited supply. Most people want a .com domain that’s memorable and relatively short, so it’s easy for people to type.

If you’re a creative type with a little business acumen, a good passive income hustle could be buying domain names you think could be profitable and in demand and listing them for sale.

You can often do this relatively cheaply, but it’s not without risk since you could find yourself paying for a domain name that just won’t sell.

9. Sublease to roommates

If you currently own a house or apartment (or are in the market for one), doing a rent split with roommates can drastically increase your passive income.

For the cost of sharing a spare room, you’ll add hundreds of dollars to your monthly income. Splitting rent is a form of house hacking, which is essentially canceling out your mortgage payments with rental income.

If you don’t want a full-time roommate and live in a popular area, you can list a room on Airbnb open to shorter-term travelers. You’ll just need to do some cleaning between stays.

Renting your room on Airbnb is one of the most lucrative and best passive income ideas to try!

In fact, you may be able to earn more renting weekly rather than monthly.

10. Rent out your car or parking space

When you’re not using your car, why not let it make money for you? You can offer your vehicle for short-term rentals to travelers on a service like Turo.

Or, you can help someone out with their own side hustle journey by making your car available on HyreCar, where it can be connected with drivers for services like Uber, Lyft, DoorDash, and Instacart. Insurance is built into these services, making it less risky to have a stranger drive off with your car!

And if you live in a high-traffic area, like a city or beach town, you can even rent out your garage for parking. It’s a great idea if you have a space but not a car or are gone most of the day and only need the space in the evenings.

11. Install money-saving apps and get cashback for online shopping

Many of the best coupon websites and a lot of apps are available today where you can earn cashback, find coupons, etc. Most require some ongoing effort, so they’re not passive.

However, Dosh is an example of a totally passive cash-back app. Just link a card in the app, and if you spend money at an eligible store or restaurant, you’ll get your money back automatically.

In the same way, Paribus will work behind the scenes to check your email inbox for online shopping receipts and issue partial refunds if the price drops shortly after your purchase.

And if you tend to do a lot of your shopping online, get some motivation for saving money with a single click, thanks to online cash-back portals. Rakuten, formerly called Ebates, is the big one in this space.

Just install their cash-back button on your browser, and you’ll be notified when you’re on websites where cashback is available. It’s one of the best passive income ideas and requires almost no work.

12. Invest

Investors understand one of the most common ways to make passive income. Over the long term, the stock market has consistently generated steady returns, even if it has ups and downs in the short term. Learning how to start investing in assets that will make you more money is a great way to earn passive income.

Dividend stocks

There are a couple of ways to earn money from stocks. You could buy high dividend stocks for regular cash payouts based on company earnings. Or, hold onto ordinary low-dividend stocks and let them grow in value until you’re ready to sell at a profit.

Dividend-paying stocks can be a smart way to make extra money but keep in mind that dividends aren’t guaranteed. You should use this passive income idea in addition to others for more consistency.

Investing in stocks is one way to avoid having to make an active income by simply growing your money and expanding your portfolio.

REITs

It’s also possible to buy shares of REITs (real estate investment trusts) and earn a share of income from the real estate projects they hold. Learning about real estate investing for beginners is simple and a great way to make money.

Annuities

An annuity can give you the opportunity to make passive income. You can find an annuity to buy from an insurance company. It’s an investment that you pay into now in exchange for funds later.

Other investing opportunities

There are also mutual funds, exchange-traded funds (ETFs), and index fund investing that you can continually invest in, in order to get a large profit later. You can begin with any of these using Robo-advisors or an investment advisor.

13. Crowdfund real estate

As mentioned above, REITs are a simple way to start passive real estate investing and earn a share of income from real estate, but with those, you don’t get to choose specific properties to invest in. If that sounds interesting to you, the next level up is contributing to crowdfunded real estate.

Through programs like Fundrise and RealtyMogul, you can buy a stake in specific real estate projects from the comfort of your couch and earn a share of the income from them.

However, most platforms require a minimum investment of at least $1,000 and sometimes more.

14. Earn credit card rewards

Who doesn’t want to earn money just from doing their normal spending? A lot of credit cards offer sign-up bonuses and a certain percentage of cash back for various purchase categories.

It’s one of the best passive income streams to earn extra money or save up credit card points to use toward travel.

The one caution I have with this passive income method is that you have to be careful and disciplined with your spending.

I recommend treating it like a debit card, and don’t spend more than you have in your bank account. That way, you’ll be able to pay your balance in full each month instead of having to learn how to manage credit card debt.

15. Rent out your tools

Sure, renting out your tools may be one of the more unique passive income ideas, but it can be a great way to earn cash. When it comes to renting, you can look beyond your home and your garage and into your shed!

Offering community rentals of some bigger-ticket items, such as lawnmowers, power tools, etc., can be a great idea on multiple levels.

It allows everyone in your neighborhood to get things done efficiently without each shelling out thousands of dollars for individual sets of equipment that only get used once in a while.

You can try to organize something like this locally (as long as you trust your neighbors!) or try out a peer-to-peer rental app.

Beyond tools, you could list things like camping equipment, kayaks, furniture in college towns, etc. Just make sure to consider any legal implications if you rent something that could lead to injury.

Be sure to get your copy of the book, The Side Hustle Guide!

16. Housesit

Housesitting is another semi-passive income idea since housesitting isn’t all just literally sitting around. Depending on the arrangement, you might be living at the property while the owner is away, or it might just require you to stop by to get mail, water plants, feed a cat, etc.

The beauty of this is that if you have work you could get done online or one of the high paying remote jobs, you can do it at the same time while you house-sit—essentially making two income sources at once! You can also housesit as a way to travel for free.

Making a profile and getting verified on a website like TrustedHousesitters can help you start finding gigs around the world, especially if you have some references.

17. Lend money to peers

Just like you can get a lease or buy a car or get a mortgage and pay interest on it, you can be the lender who charges interest. If you have some liquid funds that you’re able to part with for a while, this is another way your money can make money.

There are a variety of P2P (peer-to-peer lending) websites where this can be done with contracts and personal verification methods to help make sure that borrowers and lenders are legitimate.

However, there’s still a risk that a borrower can default on a loan, so don’t put all your eggs in one basket here.

It’s also not usually a good idea to do this with people you know, as loaning money to family and friends can be complicated unless you’re prepared to consider it a gift. Plenty of relationships are ruined over borrowed money.

18. Keep your savings in a high-interest account

Different types of bank accounts, like high-yield savings accounts, are very secure places to keep your money.

However, the drawback is that you usually won’t earn significant amounts of passive interest income.

Sometimes you can get up to 5% on limited amounts at credit unions or other special accounts like Netspend.

Otherwise, you can usually expect to see 1-2% on regular online savings accounts. These rates are partially determined by the Federal Reserve’s target interest rate, so they can go up and down.

19. Buy a blog

Instead of starting a blog from scratch, you may be able to buy one that’s already earning income. Then, you can turn it into passive income by outsourcing the labor to writers and digital assistants.

Some active management and communication might be necessary, especially as you try to scale.

However, if you focus on putting out evergreen content with monetized affiliate marketing, this can turn into a very lucrative passive income idea.

You can also make money from ads, selling products, and even offering courses on your blog.

It can take a couple of years of hustling to start bringing in a significant amount of passive income each month. If the best passive income ideas were easy, everyone would do them!

But with enough determination and creativity, you can set your future self up for a life of kicking back while the money rolls in. Especially if you learn how to make money with a blog for beginners!

20. Sell a course

Did you know you can create your very own online course to sell? Whether you are a fantastic cake decorator, know exactly how to teach about decluttering your life, or know how to play an instrument, you can create and sell a course for it!

Selling courses is one of the best passive income ideas. Once you create your course, your earning potential is unlimited.

Course platforms to use

There are many platforms you can use to get started, but Udemy and Teachable are among the most popular.

You will have to invest some money for monthly fees depending on the type of plan you go with.

However, teachable has a free starter plan that you can try out and see how you like it first!

21. Start a vlog

Vlogging is another excellent way to make passive income.

However, this requires a bit more footwork than the others, but it also has the potential for a decent payout.

The average YouTuber makes over $60,000 a year! There are plenty of ways to monetize and make passive income from a vlog.

For instance, with advertising, affiliate links, sponsorships, and more.

You will continuously create content but can keep earning from videos that you have already made. And since the number of hours watched every day on YouTube is 1 billion, there’s a good chance you can earn from your vlog.

22. Sell printables

Who doesn’t love printables? Printables are those adorable print-outs you can download and use for just about anything.

You can create anything from health trackers to planners to sell. Design your digital products on sites such as Canva or PicMonkey.

Once you design your printables, you can either sell digital products on a platform like Etsy or on your very own website.

Printables are one of the easiest and best passive income streams that continuously earn you cash!

23. Rent out your designer items

Are you a fashionista with a designer collection of handbags and clothing? Then make some money by renting out those beautiful items! Rather than selling them once, you can rent them out and keep making money on them.

Plus, if you are still in love with that Chanel bag hanging in your closet and not ready to part ways with it, this is an excellent way to keep it while earning money with it.

Get started making extra money with sites such as Rent My Wardrobe! It’s one of the best passive income ideas that can help fund your savings account and fashion habit.

24. Sell custom products with print on demand

Thanks to print-on-demand platforms, you can set up your own store and not even have to carry inventory. Whether you want to sell coffee mugs, shirts, or notebooks, sites like Printify and Printful will help.

You create your design and upload it to any product you want to sell in your shop, and voila, you start earning money.

There are options to sync your print-on-demand products to sites such as Etsy, or also Shopify, Printify, or your own website store. You can earn hundreds or perhaps even thousands of dollars a month, so it’s one of the best passive income ideas to start.

25. Rent out storage space

Do you need extra cash and have some unused space in a basement or garage? You can rent this extra space out for other people to store their stuff.

Your unused space can even help pay your mortgage or at least some of it! Check out Neighbor.com to connect with people who need storage space.

26. License some music

Are you musically talented? If you spend hours creating new music, it doesn’t have to be just a hobby, it can actually make you money.

Licensing your music is one of the hobbies that make money. You allow other people to use your work in exchange for royalties or commission.

Epidemic Sound is an example of a widely popular platform that can help you license your music to others.

27. Advertise using your vehicle

You may be able to make money just by driving around town or to and from work. There are companies that allow you to place an advertisement on your car to make money.

Getting your car wrapped is a good way to make passive income because once it’s done, it doesn’t require much thought or upkeep.

However, it’s important to work with a reputable company because there are a lot of scams associated with car advertising.

28. Sleep studies or surveys

A sleep study gives a whole new meaning to making money in your sleep. You can sometimes get paid to take part in a medical sleep study.

During a study, a technician monitors the activity in your brain.

Each study may have requirements for those that participate. But it can be one of the best hacks to make money without much effort.

29. Open a laundromat

A laundromat is another passive income type of business. It does require money to get started, as you’ll likely need to purchase supplies and equipment, not to mention rent or buy a space.

Be sure to do your research on how best to buy a Laundromat whether it’s own your own or through broker. It’s also very important to throughly assess your Laundromat operating costs and profit margins.

However, laundromats operate on a mostly passive basis, without you needing to do too much as long as you outsource the work. So this is a great way to make an income long-term. It’s not uncommon for people to purchase an existing laundromat and take over it’s ownership.

​30. Try dropshipping

Dropshipping is a way to have an online store without having to keep any inventory. People order from your store, but then a third party sends them the product. It can be more passive if you hire someone for the day-to-day operations.

Starting a dropshipping business involves doing research, finding a supplier, creating a store, and more. But it can be worth the time and effort! You can make almost $40,000 a year on average, not bad for a passive income idea!

Expert tip: Give yourself time to build passive income

When choosing a passive income source, it’s important to understand that setting up this new income idea will take a bit of time. Depending on which of the many options you select, you could spend anywhere from a few hours to a few months getting things ready.

Before you get started, we recommend being sure you have the time or can make the time to devote to the passive income idea in the beginning, and then later you will have the benefit of spending less time on it while still making money!

Taxes and passive income

There are some things to keep in mind about taxes and passive income. You will still owe taxes on your passive income, the same as active income.

Although you may be able to find some ways to make passive income with lower taxes, such as tax-free municipal bonds or long-term capital gains, it’s important to still talk with your accountant for tax advice before creating a passive income source.

How can I make $1,000 a month in passive income?

Making $1,000 a month in passive income can be done by selling something such as a course, printables, or stock photos.

There are, of course, many other ideas how to make an extra $1,000 a month in passive income, though selling something is one of the easiest and potentially fastest ways.

Keep in mind that $1,000 a month is $250 a week so it’s a good idea to breakdown how much on average you’d need to sell a week to meet your monthly goal.

How to passively make $2,000 a month?

For you to passively make $2,000 a month or $500 a week, you can combine a couple of different passive income ideas.

For example, selling a created product (e.g. an ebook or online course) or an affiliate product and stock market investing. Or real estate rentals and stock market investing. Choose two high-earning ideas and do both to have the best chance of making a couple of thousand dollars consistently.

How to make $5,000 a month passively?

If you use a few different ideas, you improve your chances of making more money, and be sure to choose ideas that are likely to make a higher income over time.

To make $5,000 a month passively, you will likely need to combine two or even three passive income sources. Some ideas include starting a blog, affiliate marketing, investing in real estate, investing in the stock market etc.

You can also check out our article on high income skills you can develop that can help increase your passive income earnings.

Articles related to making passive income

If you enjoyed this read about passive income, you’ll love these articles!

• How To Start: Passive Real Estate Investing
• 17 Best Passive Income Books To Inspire You!
• Active Vs Passive Income And How They Work For You
• 19 Passive Income Ideas For Students

Make more money with this list of best passive income ideas!

There are so many ways to make passive income that are easy and lucrative. You can start with one and continue to add more so you can earn even more money.

Remember, some of these ideas require more work than others, so decide what is best for you and your schedule by creating a time management plan and go from there. Also, use better budgeting techniques to manage the money you earn!

The post 30 Best Passive Income Ideas appeared first on Clever Girl Finance.

Let’s talk about the best business ideas for women! It’s so important for our world to have women in business. After all, we’re half the population—that’s billions of women with unique ideas, skillsets, and visions for the future!

Female business owners own 40% of businesses in the United States and generate 1.8 trillion dollars annually. They help keep the economy running while improving their own lives and innovating new ways to make the world better.

While any woman can start any type of business she has the knowledge and experience for, here are some of our favorite small business ideas for women who want to be their own boss!

The great news is that a lot of these business ideas are low-cost to start. Especially if you already have the necessary skills to get started!

Business ideas for women with kids

If you have children, then your life is probably quite busy already. But there are still plenty of great job ideas you can do even if you’re busy with your kids’ schedules and don’t have a lot of extra time.

1. Bookkeeping and accounting

If you liked math in school and have a knack for numbers, you might make a great bookkeeper. Bookkeeping is a great small business idea for women because you can easily find free bookkeeping courses to get trained in the right skills.

You can often find part-time online work doing bookkeeping for small businesses. It has the potential to be one of the most flexible business ideas for women at home, since you can do it as a side hustle or as a full-time job.

Comparatively, accounting requires more formal training and licensing. But you can always start with bookkeeping while you take your accounting classes.

2. Professional home organization

Remember when everyone was talking about Marie Kondo? Her Netflix series drew attention to the fact that many people aren’t happy with the amount of clutter in their homes.

However, sometimes it takes an emotionally unattached third party to manage the purging process. With a home organization business, you can charge an hourly fee to declutter a home and style rooms in a better way.

It’s a great business for women who are highly organized and have a passion for explaining their organizational processes easily to others.

And this job has flexible hours that you set yourself — a huge bonus!

3. Caring for children

Do you love kids? Get paid for it by starting your own business!

Almost 79% of childcare workers are women. A home daycare might be the best business to start for women who want to stay home with their kids while they work. After all, you can watch your own at the same time!

You’ll need to obtain the proper licensing for your state, set up a welcoming care space, and consider how you’ll handle the thousand things that kids can need.

4. Photography

The money in photography is mostly in events like weddings, and it can be a difficult industry to enter.

But it also makes a great side business idea for women, since you can schedule wedding or portrait sessions on weekends and still keep your weekdays free. Learn how to start a photography business and earn some extra money!

5. Social media management

Social media management is a good business idea for women who know how to navigate the world of the internet. If you like keeping up with online trends, can grow a following, and like managing social media accounts, then you can be a social media manager.

Marketing isn’t just for big corporations. In fact, many small business owners use the internet to advertise their services and connect with their customers.

Social media management may involve daily tasks of posting and interacting with clients on Facebook, Instagram, and even Twitter. It could also mean creating video content for YouTube channels.

You can start offering services for skills you already have, like growing a large social media following for example. Plus, you can pick up other skills as you get more experience.

It’s an especially great job for moms because you may be able to fit your social media tasks into your day whenever you have time (depending on your clients’ schedules), instead of working 9-5.

6. Personal styling

Have you always loved fashion? If you have a keen eye for putting great outfits together, becoming a personal stylist allows you to get paid for your passion.

As a stylist, you have the opportunity to work closely with clients, understanding their unique tastes, body types, and lifestyle preferences. You could offer services such as wardrobe assessments, personal shopping, and outfit coordination. And you can do it remotely or in person, making this another of the most flexible small business ideas for women!

To establish yourself as a personal stylist, you can start by building a portfolio showcasing your fashion sense and previous styling projects. Consider offering trial sessions or partnering with local boutiques to gain exposure. Don’t forget to leverage the power of social media to share style tips, outfit inspirations, and client success stories.

7. Sewing & alterations

This business for women allows you to use your sewing skills to offer a practical service that people always need.

As a professional seamstress, you can cater to a wide range of clients, including individuals who need hemming, resizing, or restyling of their clothing items. Maybe you’ll decide to specialize in wedding dress alterations or restoring vintage pieces. It’s completely up to you how many clients you take and how often you work!

To start your sewing and alterations business, consider setting up a dedicated sewing space equipped with all the necessary tools and machinery. You can market your services through word-of-mouth referrals, local advertising, or online platforms to reach a broader audience.

8. Candle-making

Candles have the power to instantly transform the ambiance of a room. The flickering flame and amazing scents help to instantly create a warm, cozy place to relax. As a candle-maker, you can help create that experience for your customers!

To get started, you’ll need to source high-quality materials such as natural waxes, fragrance oils, wicks, and containers. Experiment with different combinations of scents to create unique and captivating aromas your customers will want to reorder again and again.

Once you’ve got a handle on your business, you can expand your product line to include other scented items like wax melts, reed diffusers, room sprays, etc.

Kids love arts and crafts, so you can even involve them in age-appropriate ways! For instance, they can work on creating their own “signature scents” by experimenting with oil combinations. Check out these easy candle making ideas.

9. Transcription

Many people rely on written transcripts to follow along with audible content like podcasts, speeches, videos, TV shows, etc. It’s especially important as an accessibility accommodation for deaf people or those with hearing loss.

While automated transcription software does exist, there is still demand for human transcriptionists in industries where high accuracy matters. E.g., in legal, medical, academic, and business sectors, mistakes can be costly. You may choose to specialize in one of these fields so you can gain familiarity with industry-specific terminology, context, formatting guidelines, etc.

To get started, create a website and join professional networks in your target industry to spread the word about your service. Building a strong reputation for accuracy, confidentiality, and timely delivery will help you grow your client base over time. There are also several great transcription courses you can check out.

10. Pet care

If you’re a pet owner or an animal lover, there are plenty of ways to turn furry friends into furry clients. One of the easiest ways is to start a dog walking business by using an app or website like Rover.

As a professional pet sitter, you could visit people’s homes to feed or walk their animals while they’re away. Or, start your own “doggy daycare” where pups get dropped off at your home instead.

Pet grooming is another option in this industry: you can offer services like bathing, nail trimming, brushing, trimming, etc.

Before jumping into any animal-centered small business ideas for women, make sure you’ve evaluated potential risks. Can you handle a dog who gets aggressive? Do you have a certification for basic pet first aid in case of an emergency? Pursue the right training to make sure you and your clients are comfortable.

Best business to start for women who want to work remotely

If you would like to work remotely or work from home, then starting an online business is a smart idea. Here are some of the best jobs.

11. Online course creation

You can share your expertise on a certain subject by building your own courses. It’s a highly efficient way to teach others. It’s a lot of work upfront, but once you’ve written the materials or recorded the videos, the bulk of the job is done.

In addition, you don’t have to start from scratch. There are a variety of online course platforms where you can build and sell courses. That means a lot of the logistical work is already done!

12. Web design

Web design is one of the best home-based businesses because you can work from your computer. It’s common to see self-taught professionals in the tech industry, so you can easily find resources to teach yourself web design and start seeking clients.

There are several different tech skills under this umbrella, including visual design, UX (user experience) design, and sometimes basic coding like HTML. Your goal is to make websites attractive and also easy to navigate.

13. Graphic design

Use your art skills and graphic design software to make logos, infographics, advertisements, web banners, and more.

Web design and graphic design services are great small business ideas for women at home. They’re an excellent option for women who’ve already worked in a similar industry and are ready to strike out on their own with a graphic design business.

14. Virtual assistance

For many small business owners, virtual assistants are their lifeline—the ones behind the scenes who keep everything running.

Virtual assistants typically perform a variety of administrative tasks like answering emails, organizing calendars, doing research or data entry, etc. You can work this job on your own as a side hustle or scale up and hire other virtual assistants so you can take on more clients.

15. App development

Coding skills are easy to learn for free online and have a wide variety of useful applications (no pun intended). If you want to use them to work for yourself and build projects, you might enjoy focusing on app development programming languages.

You can build any kind of app you want. But if you want to add a female-centric twist, there are plenty of helpful apps built by women for women.

Think about the small problems you encounter each day as a woman and how an app could solve them. Then, you could build one related to personal safety, making new female friends, personalizing skincare based on data, etc.

16. Travel planning

If you love to plan things and have a lot of knowledge about great travel deals and flights, you might be interested in being a travel planner or travel agent.

Help clients book fantastic trips, flights, or transportation, and generally make sure that their vacation goes smoothly.

17. Running an online store

There are tons of online business ideas for women at home, but one that offers lots of flexibility and low startup costs is running an online store.

With your own online store, you can leverage the power of the internet. Get your products out into the world without renting a physical retail storefront.

You can run your business through an established e-commerce site like Etsy, Amazon, or eBay. Or you can choose to build your own website on a platform like Shopify.

The biggest question is what to sell—and that part’s up to you. You can sell your own crafted items, flip garage sale finds, or design clothing—whatever there’s a demand for. To get started, you’ll need an internet connection and some creativity.

18. YouTube fitness video instruction

If you have a specific fitness skill, like aerobics or yoga, you can make YouTube workout videos. It’s one of the best ideas for women at home because you can work from anywhere.

You’ll need to start a YouTube channel, do research, market and monetize your channel, and be sure to create interesting videos with good lesson plans.

19. Teaching English online

Since English is a global language, there’s plenty of demand from adults who want to learn it and parents who want their children to grow up bilingual.

There are already plenty of companies like VIPKID where teachers can offer their services. Or you can take another route and start your own business as a private tutor if you have the marketing chops or connections.

20. Selling wall art

Have great ideas for decorative wall art? You can create your own designs and then sell them online.

People are always looking for unique ways to decorate their homes, so this can be one of the best small business ideas for women. You can make designs using a computer and then sell the image online, or if you prefer, you can draw or paint unique art.

If you choose to go the computer route, you can use a program like Canva to create beautiful artwork. And if you want to paint or draw your own artwork, you can sell it online or even at a market or a store.

21. Writing/blogging

Did you always get an A on your college essays? You might have a talent for the written word! Use it to start a freelance writing business or run and monetize your own blog on a topic you’re passionate about. This is my career, so I won’t be biased: it can be a hard business to start.

For example, for every great client, you might encounter 10 who want to pay a penny per word. You might get your start writing ultra-glamorous content about water filters and whether asphalt or concrete is better for driveways. It’s all part of the journey!

If you go the blogging route as a freelance writer, it takes time to get established in your niche. It takes a lot of work and learning SEO (search engine optimization) before your blog posts start appearing in search engine results.

Only then can you turn your blog into a successful business and a source of revenue. You can make money from affiliate marketing and also by selling products on your blog.

Or you might decide to become an author and instead create an ebook. You can self-publish or publish traditionally, but either way, it’s possible to make an income this way.

Be sure to get your copy of the book, The Side Hustle Guide!

22. Freelance editing

Writing is only the first step of any content publishing process. The next is having an editor come in and polish it — that could be you!

As a freelance editor, you can specialize in a few different areas. If you have a great sense for stories, characters, and plots, you could specialize in developmental fiction editing. Or, if you’re a grammar whiz, you can focus more on general copy editing and proofreading.

Your clients could range from individual authors to publishing houses to blogs or businesses. Networking with writers and bloggers is a great way to find your first clients.

23. SEO auditing

Because the internet is huge, it can be hard for businesses to stand out. SEO (search engine optimization) is like a ticket to the front of the line. When a potential customer searches online for “XYZ near me,” for instance, every relevant business wants to be at the top of those search results.

As an SEO auditor, you’d know how to make this happen! Your main duties would be to assess and analyze a website’s SEO performance, identifying areas for improvement and providing actionable recommendations to enhance its organic search rankings.

If this sounds interesting, your first step is to familiarize yourself with popular SEO tools and software. These tools can help you analyze keyword rankings, backlinks, site speed, mobile responsiveness, and more.

24. Audiobook narrating

If you’ve ever been told you have a pleasant voice, people would probably love to listen to you reading books!

As an audiobook narrator, you’ll bring stories to life and give unique voices to the different characters. You’ll need a professional recording setup and ideally a soundproof space to create high-quality audio without distractions.

Create a website where you feature samples of your work so potential clients can decide if you sound like a good fit. Join networks of authors, publishers, and production companies to make connections and market yourself.

25. Illustration

If you have a passion for storytelling and your talents lie more on the visual arts side, think about becoming a freelance illustrator!

As an illustrator, you have the opportunity to bring ideas, characters, and concepts to life through visual storytelling. Find your niche, whether that’s creating illustrations for children’s books, webcomics, magazines, or even greeting cards. You can find gigs on sites like Fiverr and Upwork.

26. Video editing

These days, video content is bigger than ever. There are over 100 million YouTube channels alone! Videos are also created for websites and social platforms like Facebook and Instagram.

It’s an incredibly useful skill to be able to take raw footage and turn it into a compelling video with a cohesive narrative. As a video editor, you’ll bring together various elements such as audio, music, effects, and graphics to create a polished final product.

You’ll need a creative eye, technical skills, and professional editing software to start this kind of business for women. You can find video editing jobs on sites like Fiverr, Upwork and by sharing your work on social media.

Business ideas for women who work full-time or have a busy schedule

Maybe you’d like to start a side business, but you already work a full-time job or are just very busy. The best business to start for women without a lot of free time will be one that can work around your schedule.

27. Woodworking

Do you love to make things? If you’re an experienced woodworker, you can make and sell furniture, decorations, and more.

A woodworking business involves some expenses, such as tools and materials for your projects. Of course, if you are thinking of going into this industry, you likely already have a lot of these items.

28. Jewelry making

If you have an artistic eye and love to make things, then a jewelry business could be for you. You’ll need supplies and tools to begin, but once you’ve created a few designs, you can start selling them.

You can do this online or in person, depending on what works better for you. Set up a stall at a local artisan market or open an Etsy shop — or both!

29. Consulting or coaching

You can become a consultant in an industry that you have a lot of experience with. For example, marketing, business, etc. Clients can hire you to give your opinion and ideas about how they can improve.

Or you might choose to become a coach who helps others achieve their goals. Some common types of coaching jobs are a life coach and wellness coach.

30. Real estate agent or landlord

If you’re interested in real estate, become an agent. First, you need to obtain a real estate license and take an exam. Then you can sell people their dream homes and make a great income at the same time!

On the other hand, if you’d rather own property, you can purchase a rental house, condo, or apartment and become a landlord. Or you might rent out commercial real estate. However, this approach takes some money up front, because you’ll need to buy a space to rent out.

31. Personal training

Personal training can be a great option for anyone who loves fitness. A lot of people want to get in shape and like the motivation of having a personal trainer.

Coach your clients to become their healthiest selves by making workout plans and providing helpful advice and suggestions.

32. Tutoring in-person or online

Women with academic skills can use them to help kids succeed in their subject of choice. Tutoring is a super flexible business for women, since you can accept as many students as you want and limit your work to afternoons/evenings and weekends.

You can offer tutoring for elementary school students, high schoolers, college students, or even adults.

33. Teaching music

This can be one of the best small business ideas for women skilled in an instrument. Advertise locally and have students come to you for lessons in piano, violin, guitar, or whatever your specialty is.

You can also teach virtually. There are requirements to teach music in schools, but anyone can give private lessons.

34. College prep

Due to competitive college admissions systems, many high-school students need extra help to set themselves up for success.

With a college prep small business, you can offer SAT tutoring. Also help students write practice admissions essays, give advice on applying for scholarships, help them brush up on the subjects they’re likely to face their first semester, etc.

35. Pilates or yoga instructing

If you love doing Pilates or yoga yourself, consider sharing your skills! Instructors often partner with local gyms or studios to host their classes. Or, look into hosting your own classes in a public space like a park.

You can offer classes whenever you’re available. Many students like to attend in the early morning, evenings after work, or weekends. So you can probably fit at least one or two weekly classes into your busy life!

To build your reputation and experience in this arena, sign up for a training program to become a certified instructor.

Best business to start for women who want to be full-time entrepreneurs

If you want to devote the majority of your time to your business, there are a lot of options. Check out these ideas.

36. Skincare & beauty

Despite women comprising the bulk of consumers in the beauty industry, approximately 2/3 of beauty brand executives are male.

But since these products are primarily used by women, it makes sense for them to be created by women as well, right?

To help inspire your beauty-focused small business ideas for women, here are 50 female-owned beauty brands spanning lotions, cleansers, skincare for women of color, makeup, and more.

A small Etsy shop or a farmer’s market stall are great jumping-off points for these home business ideas for women. Hone your craft with artisan soaps, dry shampoo, body butters/scrubs, or other natural beauty products you can make at home.

Also, consider sensitive and minimalist skincare product ideas when creating your business model since there are fewer of those around.

37. Cleaning company

Cleaning is a great business to start that is practical and lucrative. You can begin by cleaning homes or office buildings and one day expand your business by hiring a team.

While this may take a lot of hours in the beginning, you’re also in control of how much work you accept. And as you get more clients and more people working for you, you can spend less time scrubbing counters yourself!

38. Running a bed and breakfast

A bed and breakfast business venture combines a real estate investment (your B&B building itself) with the hospitality industry (offering rooms, meals, and hotel-style amenities). Usually, you can charge a decent rate per night for this kind of boutique experience.

It’s much easier to find a building for a small B&B than it would be to open a full-fledged inn or motel. If you’d prefer to skip the “breakfast” part, you can also host short-term rentals through a platform like Airbnb.

A short-term rental business can help you cover the mortgage and taxes on a property and turn a profit, but it can also be risky during periods of travel uncertainty.

Build a solid business plan, and don’t over-leverage yourself. Your bills for the property will still be due even if no guests stay that month!

39. Interior designing

Help people create attractive and functional spaces in their homes while running your own creative business as an interior designer!

Interior design involves conceptualizing and planning the layout, color schemes, furniture, fixtures, and decorative elements of a space to create a harmonious and visually appealing atmosphere. It requires a combination of artistic vision, technical knowledge, and the ability to understand and fulfill the needs and preferences of clients.

Note that in some states, starting an interior design business requires that you have specific licensing.

40. Tour guiding

If you live near a tourist destination area and enjoy meeting new people, you can start your own tour guide company! Show guests famous sites and restaurants, and answer their questions.

While it may take time to get started, this can be an awesome way to earn money for the right person.

41. Event planning

Event planning is another industry that involves a ton of multitasking and coordinating details, and it’s one of the best business ideas for women at home.

For example, you can start a wedding planning business to help brides and grooms coordinate all the things that go into the day. These include flowers, catering, DJs, photographers, and anything else you can think of.

Or you can focus on other types of events. Become an event planner for corporate events, business grand openings, product launches, children’s parties, etc.

42. Baking

Baking is one of the best small business ideas for women who love being creative with making and decorating baked goods. And it can take several forms.

You could get a physical storefront and start an official bakery, offer made-to-order baked goods for pickup or delivery, or even sell them online if you’re confident they’ll ship intact. Make cakes for special occasions, take orders for cookies and cupcakes, bake fresh loaves of bread, etc.

This could also be the best business to start for women who have a sweet tooth. Because of course you’ll get to sample your creations to make sure they’re ready to sell!

43. Catering

You can also start a home-based catering business to prepare appetizers and meals for various types of events.

If you can occupy a niche market that’s rare in your area, you’ll be more likely to get attention as a new business. For example, newer markets you can explore are gluten-free or vegan catering.

44. Food truck

Take your recipes on the road by investing in a mobile kitchen—a food truck business! These can be costly to start up, so it might be wise to test your recipes and local demand on a smaller scale first.

Of course, they’re still much cheaper than a full-fledged restaurant and can give you more freedom with the business.

45. Makeup artist

If you’re great at makeup and know how to market your services, you might do well as a makeup artist. You can do makeup for theater, events, movies, and more.

For this sort of work, it’s important to keep developing your makeup skills through taking courses, watching videos, and lots of practice.

46. Personal chef

If you have the training and the time, you might consider becoming a personal chef. You can cook meals for families and plan out the weekly menus.

A chef job is a fun and creative way to start a business, and it may lead to a catering business or a restaurant, eventually.

47. Flower shop

Opening a flower shop is a great business idea if you love designing bouquets and have a lot of gardening and plant knowledge.

You can sell flowers, plants, corsages, and boutonnieres, or even handle the floral arrangements for weddings and events.

48. Dietitian or nutritionist

As a dietitian or nutritionist, you have the opportunity to educate and guide individuals in making informed choices about their diet and lifestyle.

These two business ideas for women are related, but being a dietitian vs being a nutritionist are also two distinct things. Dietitians are registered health professionals who have undergone specific formal training and become certified. It’s a long process that you’ll have to invest a lot of time in. Learn more about how to become a registered dietitian here.

On the other hand, nutritionists don’t have strict regulations. As long as they don’t misrepresent their medical training, they can offer services after completing more basic training and certifications. This page explains how your specific state regulates nutrition counseling.

If you pursue one of these paths, you can stand out by catering to specific types of clients. E.g., start a vegan nutritionist business, become a dietitian who supports people with specific health conditions, etc.

Expert tip

Regardless of which small business ideas for women appeal most to you, be focused and intentional in your approach. Conduct thorough market research and draw up a detailed business plan. Be clear with yourself about how much time you have to dedicate to your new side hustle. Evaluate potential start-up costs and figure out how to budget for them.

Most importantly, go into it with a strong mindset! You’ll probably encounter challenges along the way. But you can overcome them by staying resilient, adapting to change, and learning from mistakes.
Learn more about the logistics of starting a business from scratch in this article.

What business is best for women to start?

If there was one single answer to, “What business is best for women to start?”, then there would be millions of identical businesses!

The truth is, the best business for you to start is the one that aligns with your passions, skills, and experience. If you feel drawn to a specific industry, that’s your first clue!

What do female business owners struggle with?

This answer also varies. As women, we’re all unique people with our own strengths and weaknesses. Challenges can also arise based on what kind of business you own. That said, some common struggles for female business owners include:

• Work-life balance, especially for women who are also juggling family responsibilities
• Self-doubt and feeling “imposter syndrome” (watch our founder Bola’s video on tackling this!)
• Gender bias and being taken less seriously than a male business owner
• Difficulty securing funding (over 50% of female business owners report having unmet financing needs)
• Less access to established business networks and mentors

While this can all seem daunting, you can help pave the way for future female entrepreneurs by pursuing your dreams anyway!

What business ideas make the money money?

This is a question you’ll get to answer during the market research part of your planning. What are the average business earnings in the industries you’re considering? What locations are most profitable? Is your business idea scalable?

Some of the most famously high-income industries include technology, real estate, and eCommerce. But as long as you have a solid business idea and plan, you can make lots of money in any sector!

What is the easiest business to get into?

Think about the skills, education, and experience you already have. If you have great people skills, start a business where you work directly with customers.

Always loved writing essays in college? Then freelance writing or editing could be a natural fit. Are you the designated photo-taker for friends and family? Then make it official with a photography business!

Ultimately, the easiest business is the one where you don’t need a ton of extra training and preparation to start it. For instance, building apps won’t be easy if you’ve never coded before.

Of course, that doesn’t mean you can’t do it — you’ll just need a longer runway! Look at your one-year, five-year, and ten-year plans and decide where you want to be.

Related posts on business ideas for women

If you enjoyed this article on business ideas for women, here are a few more to check out!

• A Guide For How To Start A Business With No Money
• How To Get Clients Online For Your Side Hustle
• How To Start Freelancing With No Experience
• 25 Side Hustles For Women That Make Real Money
• Women & Money Survey: The State of Our Finances

Try out one of these best business ideas for women!

To start your woman-owned business off on the right foot, take our free business courses on creating a solid brand and marketing strategy. While you’re at it, don’t forget to prioritize your self-care as an entrepreneur!

There’s no better time than now to take action on the small business ideas for women we’ve listed above.

And remember, there are tons of lucrative businesses and side hustles out there, and you’ll find the perfect one that fits your lifestyle and your finances.

The post The 48 Best Business Ideas For Women appeared first on Clever Girl Finance.

You work hard for your money, and it’s only right for your money to return the favor! Leveraging the best compound interest investments is essentially a way for your money to make money. These investments are widely recognized as one of the most powerful tools for growing money over the long term. 

There’s even a popular quote that says: “Compound interest is the eighth wonder of the world.” It’s often attributed to Albert Einstein, but the fact-checking jury is out on whether that’s accurate.

Either way, if you don’t have time for a trip to Machu Picchu or the Great Wall of China, the wonder of compound interest can change your life no matter where you are!

With the right strategy and a mix of the best compound interest investments, you can take advantage of the power of compound interest and maximize your returns. Let’s learn about how it works and nine of the best investments for compound interest!

9 Best compound interest investments

If you’re looking for ways to start growing your money, this list is a great place to start! Here are nine of the best compound interest investments and how to start leveraging them. 

1. High-interest savings accounts

High-interest (also called high-yield) savings accounts offer one of the safest, easiest, and best investments for compound interest. In my opinion, everyone should have one!

Many traditional savings accounts barely pay any interest. If you look up the savings account interest rates at most brick-and-mortar bank chains, you might find numbers that are awfully close to zero…like 0.01% APY. Interest that low won’t compound very fast.

High-interest savings accounts, meanwhile, can offer yields that are exponentially higher than the national average. Normally, you’ll find these accounts at online banks or local institutions rather than nationwide chain banks. Since online banks have lower overhead expenses than their brick-and-mortar counterparts, they can invest more money into paying high yields to customers. 

Even better? Many of these banks offer daily compounding on the interest you earn. That means every single day, the interest you earned yesterday is calculated as part of your balance.

Then, that interest will immediately start earning interest too! All interest you accrue will usually be paid as a lump sum at the end of each month. 

How to invest in a high-interest savings account

You can find high-yield savings accounts at many different banks and credit unions. Consult Investopedia’s list here to see which savings accounts currently offer the highest yield. Be sure to also read up on the terms and possible fees for each one. 

2. Certificates of deposit (CDs)

If you have savings that you aren’t going to need in the immediate future, consider investing in CDs! Not the music kind, though—the “certificate of deposit” kind.

So, what is a certificate of deposit? CDs are essentially fixed-term, fixed-rate investments that require the investor to deposit a certain amount of money into the CD for a specified period of time. That could range anywhere from a few months to 5+ years.

Usually, the longer the term, the higher the interest rate will be. When the CD matures, the investor can either cash it out or reinvest the funds in another one.

Generally, CDs offer higher interest rates than savings accounts (but not always—make sure to compare your options). They usually also pay compound interest; you’ll have to check the individual terms to see how often it compounds.

The downside of CDs is that they aren’t as flexible as savings accounts. You can’t just withdraw whenever you want and may face early withdrawal penalties if you want your money before the savings term is complete. (On the flip side, this can “force” you to save money, which is helpful if you struggle with impulse spending!)

How to invest in a certificate of deposit

Many banks and credit unions also offer CDs to customers seeking a higher-interest alternative to savings accounts. Investopedia also has a list of the highest current CD rates, so that’s a great place to start your research. Decide how long you’re willing to have your money locked up and choose accordingly.

3. Treasury bonds or notes

The U.S. government offers a variety of bond and note investments through TreasuryDirect. These are safe and stable investment choices that let you lock in a good rate for the future.

Also called T-bonds, treasury bonds are extremely long-term investments with terms of 20 or 30 years. Treasury notes (T-notes) come with shorter terms of 2, 3, 5, 7, or 10 years. You can decide to sell bonds and notes before they mature without facing a penalty.

Both T-bonds and T-notes come with a fixed interest rate, paid every six months until maturity.

However, unlike with many other compound interest investments, the interest doesn’t automatically get added to the principal amount. Instead, it gets paid to you directly. That puts the compounding decisions in your hands. 

If you own T-bonds or T-notes and want to make your interest compound, save up your interest payments and use them to buy more bonds or notes. You can buy them in increments of $100, so as soon as you’ve earned $100 in interest, you can get a new bond and keep the interest accruing!

For those who want their interest to compound automatically, check out EE or I savings bonds. EE bonds come with fixed interest, while the interest on I bonds can change every 6 months based on the inflation rate. 

How to invest in treasury bonds or notes

Start by creating an account on TreasuryDirect if you don’t already have one. This is the simplest and most direct way to research current rates and make purchases.

You can buy EE or I savings bonds anytime. If you want T-bonds or T-notes, you have to wait for specific bond auction dates to buy them.

4. Corporate bonds & bond funds 

The government isn’t the only place you can get bonds. Corporate bonds are debt securities that individual companies issue. Bondholders essentially loan money to these corporations to help finance their growth and operations. In exchange, they receive regular interest payments. 

Bond funds are similar, but instead of investing in one bond from one company, you’re investing in a pool of bonds managed by an investment company. This helps diversify your investments, which reduces the risk you might face from any one company defaulting on their debt.

Traditional bonds don’t offer compound interest, although you can choose to reinvest your profits in more bonds or bond funds. Zero-coupon bonds are an exception to this rule. When you have a zero-coupon bond, you don’t get paid periodic interest.

Instead, the interest compounds over the term of the bond, and you receive everything as one lump sum on the maturity date.

How to invest in corporate bonds & bond funds 

You’ll need an account at a brokerage (e.g. Vanguard, Fidelity, etc). There, you can purchase bonds and bond funds, as well as stocks and other types of investments. Bonds are a simple way to learn how to start investing.

5. Money market accounts

A money market account (or MMA) is another type of interest-bearing account offered by many financial institutions. It shares an acronym with “mixed martial arts” and might be just the thing to get your money into fighting shape!

MMAs traditionally function like a kind of hybrid between checking and savings accounts. Like a checking account, they may allow you to use a connected debit card and write checks. Like a savings account, they tend to pay higher interest rates, and you can expect interest to compound on a daily or monthly basis.

Some money market accounts have minimum deposit requirements, which makes them a bit less flexible than the average savings account.

However, there are also plenty of MMAs without strict requirements. These can be a great alternative to traditional savings accounts! 

How to invest in money market accounts

Check out which banks are offering the best rates on money market accounts right now. Review the terms and benefits of each one to decide if you’d like to open an MMA.

6. Peer-to-peer (P2P) lending opportunities

With most of the best compound interest investments on this list, you aren’t doing any direct lending. Instead, you’re engaging with a middleman (like a bank or investment firm) to handle the loan logistics while you just provide money. With peer-to-peer (P2P) lending, it gets a lot more personal.

Through a P2P lending platform, you lend money directly to individuals or businesses that need it. In exchange, of course, they pay you interest on the loan. You can harness the power of compounding by reinvesting that interest in other loans or investments.

P2P lending can offer attractive interest rates compared to some of the other options on this list.

However, you also face an increased risk. If any of your borrowers default on their loans (aka stop paying), you’re the one who absorbs that loss. 

Many peer-to-peer lenders enjoy having a more personal involvement in their investments compared to simply buying stocks and bonds.

For instance, it can be satisfying to help fund a business with a mission you care about and watch them grow.

How to invest in peer-to-peer (P2P) lending opportunities

Find a trustworthy P2P lending platform that works for you. Some have strict requirements for their investors, like a certain income or net worth. Here are some of the most accessible P2P lending platforms for investors.

7.  Dividend stocks

These next few investments are a great example of compounding growth since they don’t technically pay interest. I mentioned dividend stocks earlier, so let’s learn more about them now.

Dividend stocks are just like other stocks: they’re shares of a publicly traded company. The value of a dividend stock can go up or down at any time, depending on the market and the company’s performance. 

What sets dividend stocks apart is that they regularly distribute a portion of their earnings to their shareholders in the form of dividends. You can turn this into a compounding investment by reinvesting your dividends to purchase more shares, which in turn leads to an increase in your overall dividend income over time.

However, you should note that there’s no guarantee a company will continue paying dividends. They could decide to reduce their dividend payout or even eliminate them in some circumstances. Plus, the company’s stock could go down, so it’s best not to rely on this as an income source.

How to invest in dividend stocks

You can buy dividend stocks through any stock market brokerage. Or, you can diversify your risk by purchasing shares of dividend funds (which contain a variety of different dividend stocks).

Dividend funds may pay you dividends as income or may automatically reinvest the money so it can compound.

8. Index funds and ETFs

Index funds and exchange-traded funds (ETFs) are very similar investments. They’re both collections of stocks, bonds, and other securities that track an underlying index (the biggest example is the S&P 500 index). 

The main difference is that ETFs are easier to buy and sell throughout the stock market trading day just like stocks on the open market. Index funds are only available for trading at the end of the day trading price. They are also typically bought directly through the fund company and may have higher barriers to entry (like minimum investment amounts).

Investing in index funds and ETFs is widely considered one of the smartest financial moves you can make. That’s because both of them have diversification built right in.

If you buy a total-market fund, you can essentially own a little piece of the entire US stock market!

Many brokerages allow you to set up automatic dividend reinvesting, allowing your investment to grow over time through the power of compounding. 

How to invest in index funds and ETFs

You can buy ETFs through any brokerage or stock trading app. Index funds are available through their providers; most major brokerages have their own index funds. Learn more about investing with index funds to see if it’s the right choice for you.

9. Real estate/REITs

Do you have a passion for property? Investing in real estate could yield a higher return than other investments, and it can also provide a steady income stream. 

Traditional real estate investments require a larger amount of capital upfront since you’ll need to buy properties and get them rental-ready.

Whether you buy residential or commercial property, you’ll earn income by leasing your property to tenants. Reinvest your profits by improving your properties or purchasing new ones.

If landlord life doesn’t sound like your thing, don’t worry! There are simpler ways to invest in real estate. REITs, or real estate investment trusts, offer a way to invest in real estate assets through the stock market.

By law, REITs have to distribute at least 90% of their taxable profits as dividends to the shareholders. You can reinvest these REIT profits to compound your investment.

How to invest in real estate/REITs

To invest in real estate or REITs start by doing your research. For real estate, explore locations, property options, and financing options. You’ll also need to do some math to figure out the potential profit margins. REITs can be purchased at a brokerage just like you would index funds.

It all depends on what kind of investing you want to pursue! Discover more about real estate investing for beginners and decide how to build your wealth.

Expert tip

You can choose from multiple investment options. But the main point is that your money isn’t just sitting there – it’s creating more money for your future. You can start off simple with a high-interest savings account and then work up to more complicated investments later once you feel that you understand the process.

It may also be a good idea to diversify your money by placing it in a few different compound interest investments, especially if it’s a large amount.

What is compound interest?

In the most basic terms, you can think of compound interest as “the interest you earn on interest.”

But how does compound interest work? To help establish our foundation, it helps to understand what exactly interest is. Interest refers specifically to the cost of borrowing or lending money.

If you’ve ever had a loan, you’re familiar with paying interest. Earning interest is a lot more fun, though! 

So, how do you earn interest? Let’s say you decide to store your money in an interest-bearing account at a bank.

The bank then uses your money to make money via lending and pays you a percentage of the interest while also keeping some profit for themselves. On your end, you don’t have to worry about lending risk: your money is secure thanks to FDIC deposit insurance, and you’ll receive regular interest payments. 

Compound and simple interest

Interest generally comes in one of two forms: compound or simple.

When an investment pays compound interest, each interest payment you earn gets added to the original amount you put in (your principal). Then, the next interest payment is calculated on that new total (principal + accumulated interest).

This process continues indefinitely, allowing you to make more money from your investments in the long run as the interest earned compounds upon itself. (We’ll look at an example in the next section!)

Compounding can happen faster or slower depending on how frequently interest is calculated and applied to the investment. Interest could compound daily, monthly, quarterly, semiannually, or annually. The more often it compounds, the faster your investment will grow.

The opposite of compound interest is simple interest. This means that interest is only calculated using the original principal amount. Accumulated interest is not added to the calculation.

How does compound interest grow your money?

The simple answer: with compound interest, your money makes money, then that money makes money too! That translates to constant, automatic growth.

Investing example

Here’s a quick example of how it works:

First, you invest $1,000 into an account that pays 5% APY (annual percentage yield). To keep it simple, we’ll say the interest is paid yearly, and you don’t add any new funds to the account as time goes by.

At the end of year 1, you’ll earn $50 in interest, so you will have $1,050 in the account.

During year 2, you’ll earn interest on that new balance of $1,050. That means you’ll earn $52.50, and your balance will increase to $1,102.50.

Interest for year 3 clocks in at $55, continuing to increase your balance.

This process will continue until you withdraw the money or something else happens, like a drop in interest rates. If you don’t touch the money and the rate remains the same, each interest payment should be more than the last.

As you can see, compound interest makes your money grow without any extra effort from you. You didn’t have to do anything except save money in the right type of account and give it time.

How long will it take to double your money?

The amount of time it takes for compound interest to double your money depends on several key factors: the rate of return, the length of the investment, and the frequency of compounding. You can use a compound interest calculator to easily crunch the numbers.

For example, if you invest $1,000 in an account that offers a 5% rate of return, and it compounds monthly, it would take a little over 14 years to turn that into $2,000. Doubling it to a 10% interest rate would cut that to just over 7 years. 

If you continue making contributions to the account on a monthly or yearly basis, your money will obviously add up a lot faster!

Is compound interest the same as compound growth?

People often use the terms “compound interest” and “compound growth” interchangeably. However, there is technically a difference. Compound interest is essentially “the interest you earn on interest.”

Compound growth, on the other hand, factors in the “interest that you earn on interest” and represents the average rate of growth on your investments based on the reinvestment of interest earned and dividends, as well as investment appreciation over a period of time e.g. multiple years.

One thing to keep in mind when it comes to compound growth is that all investments can grow, but not all investments pay interest. e.g. Some investments earn dividends and can appreciate.

For example, Let’s say that instead of investing in an interest-bearing account, you buy dividend stocks. You still get regular payments based on a set percentage rate, which can then be reinvested to help you buy more stocks or earn more money.

However, the money you get from dividend stocks isn’t technically “interest”—it’s a “dividend yield.” Which is an annual payment to shareholders based on the current price of the investment.

Since compound interest and compound growth have a similar mechanism, our list of best compound interest investments will include multiple investment types, not strictly interest-bearing ones. As long as they’re expected to grow regularly and allow you to reinvest the money, these investments can all help compound your wealth!

Articles related to compound interest investments

If you enjoyed this article on compound interest investments, check out this related content:

• How Does Compound Interest Work For You?
• How to Invest In Dividend Stocks For Beginners
• What Is Dividend Investing And How Does It Work?
• Investing Money For Beginners: How To Start Investing Today!

Choose the best investments for compound interest for you!

What are the best investments for compound interest for your situation? That part’s up to you! For the best results, you can leverage a mix of the best compound interest investments. 

To start, I recommend opening a high-yield savings or money market account to store your emergency fund. You can also use these for any other savings you want to keep stable and easily accessible, like sinking fund categories.

After that, you can open a retirement savings account and start filling it with investments like dividend funds, ETFs, bonds, etc.

You can decide to devote any extra money to treasury bonds, real estate investments, CDs, P2P lending, or whatever else makes sense for your financial situation.

No matter what direction you go in, it’s important to do your research before investing.

There are risks associated with all types of investments, and you want to be confident in your choices. (Take our quiz to find out how risk-averse you are.) Knowledge is power, so keep researching and learning more!

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