SoFi

If the thought of sitting down to make a budget is overwhelming to you, you’re not alone. One poll found that only 32% of Americans maintain a household budget.

It makes sense. We’re all crazy-busy, and already spend more than enough time in front of our computer and telephone screens. Very few people get excited to come home and budget after a long, exhausting day at work.

Some folks may avoid building a budget because they don’t know where to start. Others may be struggling with finding the motivation to sit down and do it.

For those that don’t know where to start, here’s your first step: Track your spending. It is impossible to build a meaningful budget if you don’t know where the money is going in the first place. (Building a budget requires you assign dollar figures to spending categories, which you’ll need some sense of first.)

If you’re struggling with motivation, we’ll also cover the five reasons you should track your spending, along with some tips on how to track spending and ultimately, build out a budget plan.

Identify Areas That You’re Overspending

In every person’s spending hides some sort of gremlin, busting up budgets while lurking around completely unnoticed. And there’s no way to uncover the problem without spending some real time looking at the numbers. The truth is, spending is so easy and frictionless these days, that it’s nearly impossible to do mental accounting on how much we’re spending in each category and overall.

It’s not uncommon to hear stories about people who are tracking their spending for the first time who realize they are spending hundreds more in certain categories than they had anticipated.

For example, lots of people find they are spending more than they expected on dining out, Starbucks, groceries they don’t use, or shopping. Sometimes, the act of daily or weekly tracking alone inspires people to spend less.

What’s Measured Gets Improved

When it comes to spending less and saving more, the old adage holds true: what’s measured is what gets improved. There’s hardly a way to make meaningful change if you have no benchmark for which you can build from. Say, for example, that you want to spend less on dining out. That’s great, but how can you spend less, if you don’t know how much you spend now?

Only after tracking your spending for a time can you begin to build a meaningful budget. Think about building a budget without knowing how much you spend in each category! There would literally be no point.

For example, say that you guess that you spend $100 on gas each month. But if you had actually tracked your spending, you would know that you get gas once/week, and it costs $40 each fill. Really, you need to budget $160 for gas each month (or slightly less, if you are trying to reduce gas spending).

Feel Inspired to Make Eliminations

The shock of seeing how much you’re spending (and on what) may be the inspiration you need to make real changes. And perhaps these changes extend beyond simply nixing the daily Starbucks habit.

Use that motivation to eliminate unused subscriptions, to work on lowering your gas or phone bill, to cut out entire spending categories, to take public transportation more, or to consider more drastic measures—like getting a roommate or moving into a more affordable place.

Change is never easy to make, but it’s best to use the spark of motivation you first have when you realize that there are plenty of ways to cut back.

Give Yourself the Freedom to Spend on What You Love

Sure, budgeting can feel restricting at first. But eventually, you may come to find that budgeting gives you both peace of mind and the freedom to spend on exactly what you love.

Without a budget, it is possible to feel anxious every time you swipe your card, not sure if you can really afford this thing. With a budget, you can make a purchase knowing that you planned for it and that the money will be there.

Here’s what a lot of people get wrong: the tracking of spending doesn’t have to result in the diminishment of your pleasure. Instead, it’s about looking at how you spend, and assigning priority to those different expenses.

Ask yourself this question: In retrospect, was that purchase worth it? And what purchases weren’t? Again, eliminate the categories that don’t bring you utility or joy, keep the ones that do, and never hesitate to spend on those items again. Tracking and budgeting allow you this freedom.

Build Saving Into Your Plan

If you want to build savings into your monthly financial plan, but can’t imagine how, you have to begin by tracking your spending. Identify areas that you can cut back in so that you are then able to re-allocate those funds to your future.

Once you have found some spending categories where you can give yourself some leeway, practice moving that spare cash into a savings account at the end of the month.

After a month or two of this, you’re ready to truly build savings into your budget, through automation. To do this, set up an automatic transfer of funds from your account, scheduled a few days after your paycheck hits.

Now, you can do as Warren Buffet says: “Do not save what is left after spending, but spend what is left after saving.” Building automatic saving into your monthly financial plan is always best, but monitor to make sure you don’t overdraft your account.

Tips and Tricks On How To Track Spending

Start By Gathering Account and Income Information

If you want to make a personal budget and keep track of spending, your first step is to know exactly where money is moving both to and from. Gather up information on checking accounts, credit cards, online mobile transfer accounts (like PayPal), and so on. Organize your information and make sure that you can log into all of your accounts.

While you’re at it, make sure that you have all sources of income accounted for. Know what these figures are both before and after income and other taxes. It will be up to you whether you budget with after-tax income or pre-tax-income (and consider taxes a line item in your budget), but start with both figures.

Track Last Month’s Income

Instead of starting in the middle of the month, begin by looking at the most recent full month’s worth of spending. Practice putting money into categories like groceries, entertainment, dining out, bills, etc.

You may want to practice doing this in a few different ways. A good way to start is by downloading all of a month’s spending into a spreadsheet. (This should be an option provided by your bank, usually under the “statements” tab or something similar.)

This method requires more upfront work, but forcing yourself to sit with the numbers and manually identify transactions is an important skill to learn. You can also switch to using an app like SoFi Relay.

Determine Your Categories

After looking through last month’s spending and putting transactions into categories, determine how much you’d like to spend in each category. These categories can be as broad or as narrow as works for you and your budgeting style. Don’t forget to account for expenses that don’t happen monthly (like semi-annual car insurance payments) and incidentals.

Increasingly, folks do their shopping at stores like Target or on Amazon, where spending doesn’t fit nicely into one category. During one trip, you could easily buy groceries, toiletries, clothes, and furniture. This makes it hard to budget by category. In that case, consider giving yourself a budget by store.

Get Into A Groove

Maybe you’ll continue to update your spreadsheet with downloaded information from your account, and this is the tracking method that you’ll stick with forever.

Perhaps you’ll find something that you like better, such as app or program. To figure it out, you’re going to have to try it all out. This will be hard in the first few months—give yourself the space to feel frustration—but know that it does get easier over time. The good news is that money-tracking technology is getting better and more helpful and there are many solutions you can check out.

SoFi Checking and Savings

SoFi Checking and Savings^® is one option to check out. It is a bank account online that comes with a dashboard that provides weekly expense tracking and members can earn up to 4.50% APY.

After a few months of tracking, you’ll have a better idea of how to put purchases into categories that work as part of a bigger budgetary system. For most people, this will be the hardest part, but it will be worth it. You’ll get into a groove, feel in control of your spending, and finally be able to say, “I am confident in my ability to keep track of my spending.”

Get started with SoFi Checking and Savings to keep track of your expenses.

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External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet..

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

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Perhaps you’ve found your dream home, or maybe you’re still in the exciting stages of looking for the house you want. In either case, you’re likely thinking about getting a mortgage loan—and you may be wondering if the amount of debt you currently have will become a stumbling block to qualifying for a mortgage.

To qualify for a mortgage, a lender needs to be confident that you can responsibly manage the amount of debt that you’re currently carrying along with a mortgage payment. The formula used to determine that is called a debt-to-income (DTI) ratio.

More specifically, a DTI ratio is the percentage of your qualifying monthly income, before taxes, that is needed to cover ongoing debts. This could include student loan payments, a car payment, credit card payments, and so forth. If the DTI ratio is too high, then a lender may see you as a higher risk.

This post will describe DTI in more detail, including how to calculate yours, what lenders typically like to see, and what might be too much debt to buy a house. We’ll also share strategies to manage your debt and lower your DTI ratio to help you qualify for the house of your dreams.

Understanding How Your DTI Ratio Can Affect Your Mortgage Options

The DTI formula is pretty simple. First, make a list of all your debts with recurring payments. Then, if you’re a W2 earner, take your pre-tax monthly income and divide your monthly expenses by this amount. That percentage is your DTI ratio .

Note that, with a mortgage, to calculate your DTI ratio, you’ll need to have a reasonable estimate of monthly property taxes on the home, insurance (homeowners, for sure, and PMI and flood insurance, if applicable), and HOA dues, if applicable. Even if you wouldn’t necessarily pay those bills on a monthly basis, you’ll need the bill broken down into a monthly amount for DTI calculation purposes. (And remember these are just examples. Your actual DTI, as calculated by a lending professional, may differ.)

If your debt-to-income ratio is too high, it can impact the type of mortgage you’ll qualify for. Each mortgage lender will have their own preferred DTI ratio, of course, and lenders can and do make exceptions based on your unique financial situation. Here’s an explainer on desirable debt-to-income ratios from the Consumer Financial Protection Bureau.

Preparing for When You Need a Mortgage

If you know you’ll want to buy a house within, say, the next year or two, it can be beneficial for you to understand how much home you can afford. This will give you time to manage your finances to make getting a mortgage approval easier. Perhaps you can’t pay off all your debt in that time frame, but there are strategic moves to make to position yourself better when mortgage time is upon you. In addition, consider reviewing our home buyers guide to get a better understanding of everything you need to prepare for your mortgage.

First, be careful. There are plenty of debt-related myths, but let’s address two debt-related realities:

1. Having a lot of debt in relation to your income and assets can work against you when applying for a mortgage.
2. If you are consistently late on debt payments, lenders may question your ability to pay your mortgage on time.

Here are a few tips that can help with some of the most common debt challenges:

Student Loan Debt

If you’re looking to take control of your student loan debt, consider refinancing your student loans into one new student loan with a potentially lower interest rate.

This can make paying back your loans easier, because there is just one monthly payment to make. Plus, with a (hopefully) lower interest rate, you can pay back less interest, overall. And, if you’re concerned about your monthly DTI ratio being too high when you go to apply for a mortgage, you may be able to refinance your student loan to a longer term for lower monthly payments, to reduce your current monthly DTI ratio. (Keep in mind, though, that extending your loan term may mean paying more interest over the life of your loan.)

When you refinance at SoFi, you can combine federal loans with private ones, something not many lenders permit. Request a quote online to see what you can save. Note that SoFi does not have any application fees or prepayment penalties.

Credit Card Debt

When you have a significant amount of credit card debt, the monthly payments can negatively impact your DTI ratio.

If you’re concerned about managing credit card debt payments while paying a mortgage, you could even consider focusing your efforts on getting out of credit card debt before you start the homebuying process.

To manage your credit card debt, and ultimately eliminate it, here are a few debt payoff methods to consider

•  The snowball method. List your credit cards from the one with the lowest balance to the one with the highest. Then, focus on paying off the one with the smallest balance first, while still making minimum payments on the rest. When that first card is paid off, focus on the next one on your list and so forth.

•  Tackling high-interest debt first. Using this method, you list your credit cards from the one with the most interest to the one with the least. Then, focus on paying off the credit card with the highest interest while making minimum payments on the rest. Then tackle the next one, and then the next one.

•  Consolidating credit card debt using a personal loan before you apply for a mortgage loan. When you do this, you’ll have just one loan, and personal loans typically have lower interest rates than credit cards (if you qualify). Ideally, keep credit cards open while only using them to the degree that you can pay off in full each billing cycle. And as with all debt payments, make all personal loan payments on time.

By reducing and managing your credit card debt, you can better position yourself for a mortgage loan on the house of your dreams.

Consolidating Your Credit Card Debt with a Personal Loan

Ready to consolidate credit card debt into a personal loan? SoFi makes it fast and easy, and it only takes minutes to apply. Plus, our personal loans have the following perks:

•  Low rates

•  No fees

•  Access to live customer support seven days a week

•  Community benefits; ask about how, if you lose your job, we can temporarily pause your personal loan payments and help you to find a new job

We look forward to helping you achieve your financial goals and dreams. Learn how a personal loan from SoFi can help.

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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi Mortgages are not available in all states. Products and terms may vary from those advertised on this site. See SoFi.com/eligibility-criteria#eligibility-mortgage for details.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the
FTC’s website on credit.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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Life is filled with tough decisions, including the mother of all: do I live in the now, or save for tomorrow?

It’s tough because this is the decision that generally seals our fate. Most of us would rather not think that far ahead; after all, retirement is decades from now. We often feel that we can’t afford to do both. And the expression “you only live once” (YOLO) is a temptation to put off tomorrow while you live in the moment.

Other ways we put off saving for our future — and this is where it gets heavy — could be the blame game: our parents, our government, the banks, the system. The feeling that everything is already rigged against us makes it easy to live life without an end plan.

If you would like to change your way of thinking, try this splash of cold water: imagine yourself at age 65. Where will you be living? How would you be paying for food, heat and electricity? Will you be existing solely on Social Security (if it’s still around)?

We’re not trying to scare you, even though the thought is scary. In fact, there are solutions to this dilemma that you can put into action today. We’re going to show you that there is a way to have your cake and eat it too. You can save for the future while living your current life to the fullest.

Follow these simple steps to live in the now while saving money for the future.

Start With a Clear Eye

Get a bird’s eye view of your situation and the way you roll by devising a list of questions that get to the heart of the matter. Give serious consideration to the quality of your crib, your wheels, your wardrobe, and other materialistic matters. Don’t forget to asses the even more important stuff, like the degree of your happiness and spirituality, your romantic life, your circle of friends, and so on. You don’t have to share this list with anyone, so don’t be afraid to get really honest.

Divide Your Goals into Categories

Distinguish the goals that address your wants from the goals that will take care of your needs. All of this should be based on your income and financial standing as it is at this moment. Try your list this way:

Bucket list

Write down all the things you want to do before you die, and get busy checking them off. Parasailing? Learning French? Cooking a multi-course meal? No goal should be out of reach. The idea is that, eventually, you will have the satisfaction of having lived your life to the absolute fullest.

Retirement

Make a list of the ways you want to spend your golden years. Will you have the money to cover these goals? What must you do now in order to reach those financial goals? For some perspective, see if your on track for the retirement you want with our retirement calculator.

Budget

Take a cold, hard look at what you’re spending, and where. Include your rent/mortgage, utilities, transportation-related payments, groceries, wardrobe, eating out, and other assorted obligations. See where you can make cuts or reductions, and where you can redirect that spending into a retirement or emergency fund.

You don’t have to cut your budget so close to the bone that you’re life becomes dull; it may take a while to figure out just the right balance between living in the now and saving for the future. It could mean something as simple as brown-bagging your lunch or taking the bus to work instead of your car. You also don’t have to fix any spending that isn’t broken. If it’s working for you, keep it.

Current Income and Savings

To get a good understanding of where you can go from here, make a list of all your sources of monthly income. This includes your take-home pay (after taxes!), your retirement and savings accounts, Flexible Spending Accounts (FSA), and your emergency fund and vacation fund.

Debt

Create a detailed list of what you owe to creditors and lenders every month, including credit cards, school loans, and any other loans. Once organized, you can start deciding on a debt repayment plan that best suits your situation.

Evaluate Your Financial Situation

Be brutal in your estimation of where you stand. Ask yourself if you think you are saving enough for retirement, if you are paying your bills on time, if you are happy with your credit score, and if you have enough disposable income to have the fun you want to have (after your responsibilities are met).

Review and Revise

Once you discover your weak links, you’ll need to figure out how to change, adjust or alter your lifestyle. The emphasis for improvement should be more on the things you need. Once you take care of that, the things you want will be easier to achieve.

Start On Your Spending Cuts

Now that your entire financial life is laid out before you and you’ve realized your priorities, it’s time to get the scalpel. See what you can cut out completely, or at least reduce; see if there is a way to pay off your debt faster.

Adjust Your Plan Where Needed

The closer you watch your spending and the the more proactive you get with monitoring and switching up your budget, the more cash you may see become available for your future. It may take some trial and error, but don’t give up and don’t allow yourself to fall short of your goals. Always keep them in front of you, and understand that sometimes painful changes in your current situation can lead to incredible improvements in your life and your future.

Start an Account to Start Saving Money

Rather than use credit cards for the things you want now (vacations, tech, wardrobe, etc.), open separate savings accounts dedicated to each individual goal. For instance, label one savings account “Trip To France.” Label the next one “My New Laptop.” Even if you can only contribute a few dollars a week, your goal will get nearer with each deposit, and you’ll be able to pay for your goal in sweet cash. That saves you from getting deeper into debt and paying more interest, and helps you save for the future more effectively.

SoFi Checking and Savings®, a checking and savings account, may be able to help you see this through. SoFi Checking and Savings earns you 0.20% Annual Percentage Yield on all your cash and has no account fees.

We work hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time.”

Introducing SoFi Checking and Savings®

Sometimes a plan like this can feel overwhelming and even hopeless. It’s a common feeling, but don’t let it get the best of you. Consider getting some help without it costing you a penny. SoFi Checking and Savings can help you track your spending in your weekly dashboard all within the app.

SoFi Checking and Savings is a checking and savings account where you can spend, save, and earn all in one place. Once you are able to stick to your goals and your budget with the help of SoFi Checking and Savings, your lifestyle can change for the better and your financial situation can improve.

Get started with SoFi Checking and Savings!

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External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet..

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Caught up in the frenzy of wedding planning, with a growing list of things that must be done, it’s easy to overlook one of the most meaningful decisions you and your partner will make together.

Choosing your wedding bands.

You’ll see lots of tips out there—online and in bridal magazines—about good times of year to buy engagement rings. What you don’t see nearly as often is information about budgeting for and purchasing wedding bands. But that doesn’t mean it should become an afterthought.

After all, if all goes well, you’ll be wearing those rings for the rest of your lives. Your bands are a symbol of your love and commitment, and they will hopefully make you happy every time you look at them.

You’ll want your band-browsing trips to be romantic but also rewarding, especially if you’re hoping to get the right rings at a bargain price. And that makes February—a month devoted to lovers—an ideal time to shop. Here’s why.

The Christmas Crush is Over

Valentine’s Day (Feb. 14) is still one of the most popular holidays for couples to get engaged , but more people choose to pop the question in the period between Christmas Eve and New Year’s Day than any other time of year.

So while jewelers still will be catering to happy couples in February, and there will be plenty of inventory, the stores won’t be quite so crowded. And you might be the only ones in there looking for bands instead of a big diamond. You should be able to get lots of attention and negotiating for a better price could potentially be easier.

Ring Sets

If you’re among those still looking to buy an engagement ring for a Valentine’s Day proposal or announcement, keep an eye out for package deals. Jewelers often recommend buying a bridal set—an engagement ring and wedding band that go together, or even fit together—because they can be more comfortable and make decision-making a bit simpler.

Some sets come with a matching groom’s band as well. You may find three rings you love already on sale together—but if they aren’t, don’t be afraid to ask if you can get a better price for a package.

Bridal Fairs are Kicking Into Gear

Many bridal expos are held in February and March , offering a great opportunity to see the trendiest and most enduring styles without the sales pressure.

Vendors are there to give tips as well as a good pitch—and many will be offering limited-time expo-related discounts. Gather up information and coupons at the bridal fair, then give yourselves a day or two to regroup and possibly go make a purchase.

Great For a Summer Wedding

Many jewelers recommend shopping for your bands at least two to three months before your wedding date. That will give you time to look and look again, get the rings sized and get any engraving or other customizing done.

If your wedding is in June or later in the summer, starting in February should provide plenty of breathing room, even if it takes a while to find what you want at the price you want to pay. (And, come on, you know every store will be covered in hearts and flowers, so the setting will be super-romantic.)

Before you scoot out the door on a band-buying mission, though, do a little prep work . It will help you stick to a reasonable price for your rings and make things go more smoothly.

Set a Budget

You want bands you’ll love forever, but not at a price that will put you in debt for the rest of your lives.

It’s really a matter of taste: what metal you want, how wide the band is, the intricacy of the design, and if it’s custom-designed. If your budget is limited, talk about whether you might want to upgrade down the road or add an anniversary ring in 10 or 20 years.

Look For a Ring You’ll Want to Wear

Of course, you want your ring to be a good fit for your budget, but it also should suit your lifestyle. If you don’t plan on taking your band off every time you’re in the garden or workshop, if you play an instrument or sport, or if you don’t want to attract attention, stick to something simple.

Start by looking at images online (try to find sites with 3D photos ), then go try on similar styles. When it’s time to buy, online jewelers can be less expensive, but be sure you go with a reputable brand.

Keep Maintenance in Mind

Softer metals can bend. Small stones can get loose and go missing. If you’re not up for the trauma, trips to the jeweler for repairs or the cost of replacing tiny diamond chips, you might want to go with a basic platinum or gold band that will hold up with little care.

Beware of “Interest-Free” Financing at the Jewelry Shop

Larger jewelry stores usually offer some sort of in-store financing, including 0%-interest credit cards. But you could curse that convenience later if you can’t pay off the balance in full during the designated promotional period.

If the interest is “deferred” and you still carry a balance—even if it’s just a few dollars—you’ll have to pay all the interest that’s been adding up since you made the purchase. And that interest rate probably will be higher than other credit card or loan offers available to you.

Financing Your Wedding Bands

If it looks as though your dream bands will be a bit outside your budget because of all the other costs of starting your life together, a wedding loan may be a proactive way to plan your payments. With a personal loan, you’ll be clear from the get-go about the interest rate and length of the loan—no surprises.

And you could potentially qualify for a competitive rate if you and your spouse-to-be both have a solid financial history, including factors like a good credit record and well-paying jobs.

If you sign on as co-borrowers, and the funds will be delivered to a joint account, you can own the loan together and work the payments into your new household budget. Another plus: You may be able to negotiate a discount with the jeweler for paying the entire bill up front and in cash.

Applying for a SoFi personal loan online is quick and easy. There’s no prepayment penalty, so you can pay the loan back early if you want.

If you qualify for a personal loan using SoFi as your lender, you’ll also qualify for member benefits that include access to other financial services you may require in the future, whether you’re buying a home, sending your kids to college or planning your retirement.

The words “till death do us part” should hopefully refer to your marriage, not your wedding bills.

A SoFi personal loan can help if you come up short when it’s time to buy your bands—or with any other expenses related to your wedding.

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The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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Living in America? Consider how your average monthly expenses stand in comparison to your country-peeps:

Every year , the average American spends:

•  $18,886 on housing (including property taxes, if applicable)

•  $9,049 on transportation (including gas)

•  $7,203 on food (groceries and eating out)

•  $2,913 on entertainment

All that expense seems to be pretty standard, even before you start chasing the classic American Dream. For that, it’s easy to look to your peers to see how it’s done (even if they’re doing it wrong).

An old-school term for this is “keeping up with the Joneses,” trying to acquire as many things your neighbors next door. Even for the most competitive, that race gets tiresome very fast. Once you realize that the best person to compete against is not others but yourself, you can get more focused on your own financial goals.

Otherwise, comparing yourself with others will leave you in a constant state of distraction. Until then, you may be burning many wasted calories that could be put to better use focused on your own average monthly expenses, spending, budget and goals.

Let’s face it, though: some of this is a result of social media. Part of the need for keeping up with your friends comes from Facebook and Insta envy. Seeing your friends post photos and videos of their latest acquisitions (cars, houses, tech equipment) can light that competitive fire in you (or maybe it’s just plain envy). Sometimes, a message like that from an online friend can be even more powerful and influential than an advertisement from the actual brand.

How Do You Compare?

Data regarding average monthly expenses among peer groups is shown on a website called Status Money . It matches individuals to a peer group based on income, geography and age to compare how other people are doing in relation to your financial situation.

It also lets you compare your spending habits with like-minded people among your peer group. Average monthly expenses include transportation costs, shopping, eating out and other obligations.

How it came about: Status Money cofounder Majid Maksad was formerly a data analyst for Citi; he found
that , even during the Great Recession, Americans were not becoming as frugal and financially careful as you might expect.

In fact, what he found was the complete opposite: continued spending, not by personal choice but mostly driven by writing off bad debts through foreclosures and personal bankruptcies.

What it boils down to: think differently. Train yourself to be more aware.

“It wasn’t a change in behavior that was occurring,” Maksad told Forbes about the stats he discovered. “And that raised the question: ‘How do you get people to change behavior?’”

Perhaps the answer lies in knowing — not assuming — exactly what your peers average monthly expenses are. The results seem to support this. A study on the early users of Status Money found that comparing yourself to those in your peer group (a minimum of 5,000 people) could strongly influence your spending habits (this can also be called FOMO spending). Between September 2017 and April 2018, spending among those surveyed by Status Money declined by about $600 a month.

“People need to know what others are doing with money,” Maksad told CNN Money, “but in a completely secure and anonymous way.”

Comparing Finances To Your Peers

When comparing finances online, completely secure and anonymous is how most people want to roll, particularly Millennials. If you are a part of this largest living generation, here are some broad strokes to give you a general idea of where you stand when compared to your peeps. It’s all according to a survey from the American Institute of Certified Public Accountants:

•  Over three-quarters of Millennials want to have the same clothes, cars and tech gadgets as their friends.

•  Around half of have used a credit card to pay for daily necessities.

•  Over 25 percent of them had late payments or are dealing with bill collectors.

•  Seven out of 10 of those surveyed define financial stability as being able to pay off of their bills each month.

•  Gender difference are also a thing. The study reveals that men are more inclined to keep up with their friends when it comes to material goods. Women, however, tend to be more frugal and consider saving money important.

According to the apartment rental site RentCafe, younger adults may have spent as much as $93,000 by age 30 on rent. During their first decade in the workforce, rent can take up about 45 percent of their income, which can leave next to nothing for savings, investments, and paying off debt. Compare that to GenX adults, who spent only 41 percent of their income on rent per year by age 30 (adjusted for inflation); Baby Boomers spent only 36 percent of their income on rent back in the day.

Are you paying more than 30 percent of your income on housing? The U.S. Department of Housing and Urban Development considers you “cost-burdened.” If you’re spending 50 percent or more on housing, you maybe put in to the category of “severely cost burdened.”

Tips on How To Combat Peer Pressure Spending

Here are a few ways to put blinders on when that peer pressure spending urge comes on:

Get Real

Make a deal with yourself to be honest about your overspending. Don’t try to fool yourself or rationalize away unnecessary purchases. Ask yourself — constantly — “Do I really need this, or am I just trying to keep up with my friends?”

Get Stubborn

Once you have a budget in place, be rigid about sticking to it. If you can’t afford something, don’t let the devil on your shoulder sweet talk the angel on your other shoulder. Step in and take charge. With time, the compulsion to give into your spending impulses will start to weaken and listen to you.

Treat Yourself

If you’re doing a good job of sticking to your budget and not overspending, allow yourself a periodic reward that you promise yourself in advance (once a month, every six weeks, etc.). Go have a meal with friends or buy that pair of shoes you really like. Be sure not to treat yourself so well that you overspend and wind up taking giant steps backward.

Get Help With SoFi Relay

Often, it helps when you can keep tabs on your spending and have access to someone to talk through your expenses without fear or embarrassment. With SoFi Relay you’ll have access to both of these, and more, at no cost!

SoFi Relay gives you insight into your cash flow and spending habits so you can see the full picture of your finances. Additionally, you can connect all of your accounts on one dashboard to get a bird’s-eye view of your balances on the go.

What’s more? You can talk with a financial planner about your spending habits & take a serious look at your expenses to create an action plan to help achieve your financial goals.

Keep track of your spending with SoFi Relay!

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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. Advisory services offered through `SoFi Wealth, LLC. SoFi Securities, LLC, member
FINRA / SIPC .
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