You may have heard that you should spend three months’ salary on an engagement ring. But that rule of thumb is now considered pretty outdated.
Instead, it can be a good idea to consider your particular financial and personal situation when calculating how much to spend. As a point of comparison, the average cost of an engagement ring is currently $5,200, according to the wedding website The Knot.
What follows are some guidelines that can help you figure out how much you should spend on an engagement ring, along with options for covering the cost.
Key Points
• The traditional “three months’ salary” rule is outdated — spend based on your financial situation, comfort level, and partner’s preferences.
• The average cost of an engagement ring is around $5,200, though many spend significantly less.
• Payment options include cash, credit cards, jeweler financing, or personal loans — each with pros and cons.
• Personal loans often offer lower interest rates than credit cards and give you predictable monthly payments.
The Average Cost of an Engagement Ring
According to The Knot’s 2024 data, the average cost of an engagement ring is around $5,200.
While that number may represent the average, the amount couples actually spend on a ring varies widely. In The Knot’s study, roughly one-third of respondents spent less than $3,000.
Why do rings vary so much in price? The cost of an engagement ring depends on a number of factors, including the size and quality of the stone, where the gem was sourced, how the gem is set, and the type of metal chosen (such as yellow gold, white gold, or platinum). There may also be markups that come along with a luxury brand name.
Diamond engagement rings, sourced from a mine, tend to be the most expensive choice. But there are many other, less costly options, such as lab-grown diamonds, moissanite (a lab-grown gem that looks like a diamond), and semi-precious gemstones (such as tourmaline, morganite, and aquamarine).
Whether you’re in the market for a large, eye-catching dazzler or a more dainty design, the good news is that these days there are ways to accomplish almost any look for a range of price points.
While paying in cash can be the simplest (and often the cheapest) option, it may not be feasible for all couples. Below are some other payment options that you may want to consider, along with their pros, cons, and potential costs.
Financing an Engagement Ring Through Your Jeweler
Many jewelers offer financing options, but just because you’re buying from a jeweler does not mean you have to use the financing they offer. It can be a good idea to take note of the following:
• Promotional offers Some jewelers offer a 0% introductory interest rate during a set period of time. But after that period of time, interest rates may be very high.
• Down payment requirements Some jewelers may require a certain percentage down payment prior to financing.
Financing through a jeweler directly may make sense if you’re confident you can pay back the loan prior to the end of the promotional period. As with any loan, it’s likely that there will be a credit check prior to being approved for financing.
Buying an Engagement Ring With a Credit Card
Putting a large purchase like an engagement ring on your credit card can be a simple solution at the moment, but it may become a financial headache in the future. Here are some things you may want to consider before getting out the plastic.
• Interest rate If you put the engagement ring on a card with a relatively high interest rate and don’t pay it off right away, the ring will end up becoming significantly more expensive over time. Also, keep in mind that many credit cards have a variable interest rate, which means the interest rate at the time of purchase could go up.
• Credit-utilization ratio A large purchase like an engagement ring can mean using a significant percentage of credit available on your card. Having a high credit-utilization ratio may negatively affect your credit score.
• Rewards and protections Some buyers like putting large purchases on credit cards because of the consumer protections offered by the card. They also may want to take advantage of the rewards offered by the credit card company. Those rewards, however, may only be worth it if you can pay the amount back in full at the end of the billing cycle or during a 0% interest promo rate.
Using a Personal Loan to Finance an Engagement Ring
A personal loan is another avenue for engagement ring funding. A personal loan from a bank, credit union, or online lender may have a lower interest rate than a jeweler financing program. Personal loans also typically have significantly lower interest rates than credit cards.
A personal loan also works differently than jeweler financing and credit cards. With a personal loan, you’ll get the money in your bank account and can then pay the jeweler as though you were paying in cash. You then pay back the loan (plus interest) in monthly amounts set out in the loan agreement. One option to consider: You might fold the ring’s cost in other upcoming expenses as part of a wedding loan.
Here are some things you may want to consider before using a personal loan to pay for an engagement ring.
• Interest rate In many cases, a personal loan interest rate is fixed, meaning it doesn’t change after the agreement has been signed. This means that you know exactly how much you will need to pay back for the length of the loan.
• Loan terms You may have an option to pick the length of the loan. Shorter loans may mean you’re paying less interest over time but have larger monthly payments. Conversely, a longer term loan may lower your monthly payment but have you paying more interest over the life of the loan.
• Loan costs There may be fees associated with the loan, including an origination fee when the loan begins and a prepayment penalty if you pay off the loan before the end of the agreed-upon term.
• “What if” scenarios Some lenders provide temporary deferment for people facing financial hardship, such as a job loss.
Spending three months’ salary for an engagement ring is a long-standing tradition, but these days there is no one-size-fits-all formula. While couples currently spend an average of $5,200 for a ring, ultimately, the amount paid is a personal decision and will depend on your income, debt, expenses, savings, and preference.
If paying for an engagement ring upfront in cash isn’t feasible, you may want to look into different financing options such as financing by your jeweler or a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
How much should you spend on an engagement ring?
There’s no rule about how much to spend on an engagement ring. The old “three months’ worth of salary” guideline is outdated. How much to spend is a personal decision, though it’s worth noting that the average amount is currently $5,200.
How much should I spend on an engagement ring if I earn $100,000?
If you follow the old rule of spending three months’ worth of income, that would mean a $25,000 budget for a ring. But this has largely fallen by the wayside, with couples deciding the amount that best serves their big-picture financial needs and their budget. Currently, the average paid for an engagement ring is $5,200.
Is $5,000 enough to spend on an engagement ring?
There’s really no specific amount that’s enough or not enough to spend on an engagement ring. While the average spent on a ring is currently $5,2000, one survey found that most respondents spent between $2,500 to $5,000. Some couples will spend still less, while others might decide to go much higher. Take time to figure out your budget.
Photo credit: iStock/ljubaphoto
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Owing money to the IRS can be stressful, especially if you’re not prepared for a tax bill. Whether it’s due to under-withholding, freelance income, or capital gains from selling an asset, you might find yourself facing a tax bill you can’t afford to cover up front. If that happens, you may wonder: Can I get a loan to pay taxes?
The answer is, yes. Taking out a loan, such as a personal loan, to pay taxes is an option. However, it’s important to weigh the pros and cons carefully against other possibilities like payment plans offered by the IRS.
Below, we explore what tax loans are, the available options for paying taxes when you’re short on cash, and the potential advantages and disadvantages of using a loan to cover your tax obligations.
• You can use a loan to pay your taxes and it could potentially save money on penalties and interest.
• Personal loans offer fixed repayment terms and quick funding, but rates can be high if you don’t have strong credit.
• Home equity loans and HELOCs use home equity, providing potentially lower interest rates.
• A credit card with a 0% introductory rate could be an affordable option if you can pay off the balance before rates go up.
• Consider an IRS payment plan before deciding on any financing option.
What Is a Tax Loan and How Does it Work?
A tax loan is any form of financing used to pay off a tax debt. This can come in many forms, including personal loans, home equity loans/credit lines, payday loans, or even credit cards. These loans and credit lines are not issued by the IRS, but rather by private lenders, banks, or online financial institutions.
A tax loan allows you to pay your tax bill in full. You then repay the loan over time according to the lender’s terms. This could include fixed monthly payments over many months or years, along with interest and possible fees. Essentially, you’re swapping your debt to the IRS for a different kind of debt, one with a financial institution.
In some cases, the cost of a loan may be lower than the combination of interest and penalties the IRS charges if you don’t pay your taxes on time. Normally, the late-payment penalty is 0.5% of the unpaid taxes for each month the tax remains unpaid (not to exceed 25% of your unpaid taxes). The IRS also charges interest on your unpaid tax bill. The rate can change each quarter but was set to 7% for the third quarter of 2025.
Options to Pay Taxes
Before turning to a loan, it’s a good idea to consider all your options. The best choice for you will depend on your credit profile, financial health, and how quickly you can repay any borrowed funds.
IRS Payment Plans
The IRS offers payment plans, which you can apply for online. These plans allow you to spread the amount you owe into smaller payments without involving a third-party lender. Interest and penalties on your unpaid tax bill continue to accrue while you’re on an IRS payment plan, but the late-payment penalty drops to 0.25% per month.
There is a short-term plan for those who owe less than $100,000 and can pay the balance within 180 days. There is also a long-term plan for those who owe less than $50,000 but need more than 180 days to pay their balance. It’s free to set-up the short-term plan but the long-term plan comes with a set-up fee ($22 if you enroll in direct debts or $69 if you don’t).
Credit Cards
If your tax debt is relatively small and you have room on your credit card, paying the IRS with plastic can be a quick fix. However, this option should be approached with caution.
While the IRS allows tax payments via credit card, it does so through third-party payment processors that charge a convenience fee of around 1.75%. And if you can’t pay the credit card balance off immediately, you’ll be stuck paying high interest rates that can add up quickly.
One exception: If you can qualify for a credit card that offers a 0% introductory rate, using a credit card could be an affordable way to pay your tax bill over time. The key is to pay off your balance before the promotional rate ends (often 15 to 21 months). Otherwise this could be a costly way to get a loan to pay your taxes.
Loved Ones
Borrowing from family or close friends might be a viable option if you’re short on cash and want to avoid high-interest loans. This type of informal loan can offer flexibility in repayment terms, and often, little or no interest. It also doesn’t require a credit check, which can make it an appealing choice for people who may have a limited or poor credit.
However, mixing money with personal relationships can be tricky. If you don’t make agreed-upon payments on time or run into trouble repaying the loan, it could strain or damage relationships.
If you do decide to go this route, it’s important to be clear about expectations from the beginning. You might even want to draw up a simple agreement to outline expectations.
Payday Loans
Payday loans are short-term, high-interest loans intended to cover urgent financial needs until your next paycheck. They are typically easy to get and require little credit history, making them seem attractive for those looking for fast cash who might not qualify for other borrowing options.
However, payday loans come at a steep cost. According to the Consumer Financial Protection Bureau, fees often run around $15 for every $100 borrowed, which equates to an annual percentage rate (APR) of nearly 400%. Repayment periods are also typically short, generally two to four weeks.
Many borrowers fall into a cycle of renewing loans or taking new ones to pay off the previous ones, leading to a dangerous spiral of debt. These should only be considered as an absolute last resort.
Home Equity Loan or Line of Credit
A home equity loan and a home equity line of credit (HELOC) are both ways to borrow money using the equity in your home as collateral. A home equity loan provides a lump sum of money with a fixed interest rate, while a HELOC functions like a credit card, allowing you to borrow, repay, and borrow again against a set credit limit, often with a variable interest rate.
Home equity financing typically comes with lower interest rates than unsecured loans. But if you default on your loan or line of credit, you could potentially lose your home. This type of funding can also take some time to get, as the underwriting process typically requires multiple steps (including a home appraisal).
Personal Loans
A personal loan can be a practical solution for paying off taxes. There are different types of personal loans but typically these loans are unsecured, meaning you don’t need to put up any type of collateral. You borrow a fixed amount and repay it in equal installments over a predetermined term, typically one to seven years.
Interest rates vary widely depending on your credit score, income, and the lender’s policies. For borrowers with excellent credit, rates can be relatively low. However, those with fair or poor credit may face higher rates and fewer options.
Pros and Cons of Using a Personal Loan to Pay Taxes
Taking out a personal loan to pay taxes can be a smart financial move in some cases, but it’s not for everyone. Here’s a breakdown of the advantages and drawbacks.
Pros
• Fixed repayment terms: Personal loans come with fixed monthly payments, which can make budgeting easier and help you plan your finances. Term lengths also tend to be longer than what you could get with an IRS payment plan.
• Lower interest rates (with good credit): For borrowers with strong credit, personal loans typically offer lower rates than credit cards.
• Quick funding: Many lenders can approve and fund a personal loan within a week; some even faster. That can be helpful if your tax payment deadline is looming.
• Avoid IRS Penalties: Using a loan to pay your taxes on time can help you avoid late payment penalties and compounding interest from the IRS.
• Credit Building: Successfully managing and repaying a personal loan can have a positive impact on your credit profile.
• Interest costs: Depending on your credit, personal loans can carry high interest rates that add significantly to your overall repayment amount.
• Fees: Some personal loans come with origination fees, prepayment penalties, or late fees, which can increase the total cost of borrowing.
• Could negatively impact credit: Taking out the loan will trigger a hard credit inquiry which can cause a small, temporary drop in your credit scores. Any late or missed payments could have a more damaging effect on your credit profile.
• Increases your DTI: Since a personal loan adds another monthly debt payment, it directly increases your debt-to-income ratio (DTI) (a metric that compares your monthly debt payments to your gross monthly income). This could make it harder to qualify for other types of financing, such as a mortgage or car loan, in the future.
• Not a long-term fix: A personal loan is a temporary solution. If your tax issue stems from deeper financial problems, it’s important to address the root cause.
The Takeaway
If you can’t pay your full tax liability by the deadline, it may be possible to get a loan, such as a personal loan or home equity loan, to cover the shortfall. This can help you avoid owing penalties and interest to the IRS, but it’s important to keep in mind that loans generally come with their own costs.
Before you borrow, you’ll want to carefully evaluate your financial situation, shop around for the best loan terms, and compare the total cost of borrowing against using an IRS payment plan. Understanding your options and choosing wisely can help you stay out of trouble with the IRS and protect your long-term financial health.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Can I get a loan to pay taxes?
Yes, you can potentially get a loan to pay your taxes. One option is to apply for a personal loan from a bank, credit union, or online lender, and use it to cover your tax debt. If you own a home and have sufficient equity, another option is to take out a home equity loan or line of credit and use the funds to pay your taxes. A 401(k) loan or a credit card (ideally with a low a 0% promotional rate) are other potential options.
Before you borrow money to pay your taxes, however, it’s a good idea to explore an IRS payment plan. While the agency continues to charge interest and penalties on your unpaid balance, the cost could be lower than some borrowing options.
What is a tax loan?
A tax loan is any form of financing used to pay off a tax debt. For example, you can use a personal loan as a tax loan. This type of financing offers a lump sum you can use to pay the IRS or your local tax authority immediately. This helps avoid penalties, interest charges, or tax liens. However, tax loans also come with costs, so it’s important to weigh your options carefully.
How does a tax loan work?
A tax loan often works like a standard personal loan. You apply through a lender (such as a bank, credit union, or online lender) and if approved, you receive a lump sum, which you use to pay your tax bill. You then repay the loan in fixed monthly installments over a set period with interest.
A tax loan can be helpful if you don’t have enough cash to cover your tax bill, but it’s important to consider their potential costs and risks to determine if it’s the best approach for your situation.
Is using a personal loan for taxes better than using a credit card?
Using a personal loan for taxes can be better than using a credit card, depending on the terms. Personal loans often have lower interest rates than credit cards, especially for borrowers with good credit. They also offer fixed repayment terms, which can make budgeting easier. However, if you can qualify for a credit card with a 0% introductory rate and can pay off the balance before the rate goes up, that option might be more cost-effective.
What credit score do you need for a tax loan?
If you’re thinking of getting a personal loan to pay your tax bill, lenders generally prefer borrowers with good or excellent credit scores (mid 600s and above), though requirements vary. Borrowers with higher scores are more likely to qualify for better interest rates and loan terms. If your credit score is lower, you may still qualify through subprime lenders, but you’ll likely face higher rates. Many lenders also consider other factors — such as income, employment history, and debt-to-income ratio — when evaluating your application, not just your credit score.
Can I use a personal loan to pay property taxes?
Yes, you can use a personal loan to pay property taxes. This option can be useful if you’re facing a large, unexpected bill or trying to avoid late fees or a tax lien. A personal loan provides quick funding and fixed monthly payments, allowing you to spread the cost over time. Before going this route, however, it’s a good idea to compare interest rates and loan terms to other options, such as payment plans from your local tax authority.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Saving money is a common goal. Who doesn’t want more cash available to cushion their budget, pay off debt, or save for a future dream like a trip to Italy or an early retirement?
Saving money is important for many reasons. It can allow you to pay for things outright rather than running up high-interest credit card debt. It can offer peace of mind, when you know you have enough put away to navigate rough times. And having more money can give you more options.
Saving money doesn’t have to mean living so frugally that there’s never a fancy coffee or weekend getaway in your foreseeable future. In truth, saving money can be fairly painless if you’re smart about it.
Read on to learn some clever, simple strategies for how to save money each month.
Key Points
• Tracking weekly spending provides insight, can make individuals think twice before buying non-essentials, and may make them become more intentional with money.
• Creating a budget sets spending limits and can help ensure savings.
• Automating transfers to savings accounts simplifies the saving process.
• Planning meals and shopping lists reduces grocery expenses.
• Negotiating bills and canceling unused subscriptions can lower monthly costs.
1. Tracking Your Weekly Spending
Looking at your spending on a weekly basis can feel more manageable than trying to keep track of a month’s worth of spending at a time.
That’s not to say that you shouldn’t budget on a monthly basis, but breaking your timeline into smaller segments can simplify the process.
You can track spending (including every cash/debit/credit card transaction and every bill you pay) by using an app, jotting down every purchase, or collecting all of your receipts and writing it all down later.
You might then set a certain day to look over the week’s spending. This can be an enlightening exercise. Because spending can be so frictionless these days, many of us don’t have a real sense of how much we are actually shelling out on a day-to-day basis.
Just seeing it all laid out in black and white can immediately make you think twice before you buy something nonessential and inspire you to become more intentional with every dollar.
💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.
2. Creating a Simple Budget
Once you’ve mastered tracking your cash flow, and have a good idea as to your spending habits, you may want to take it one step further and set up a simple budget.
A budget is nothing more than setting limits for spending in different categories. To get started, you’ll want to list all of your monthly expenses, grouping them into categories, such as groceries, rent, utilities, clothing, etc.
If your goal is to save some money every month, you’re going to want to set a budget for yourself that includes an allocation to saving.
Next, tally up all of the income you’re taking home each month (after taxes), and see how your monthly spending and monthly income compare.
If spending (including putting some money towards savings) exceeds income, the next step is to look at all your expenses, find places where you can cut back on spending, and then give yourself some spending parameters to stick to each week.
3. Automating Savings
If you do nothing else to get yourself on the savings path, consider doing this.
Automating savings is a great way to remove a huge barrier to saving — forgetting to put that money aside, then ultimately spending it.
The reality is, we all live busy lives, and while we may have every intention of stashing away cash, there are many reasons why it’s hard to save money. Saving often doesn’t happen without a plan.
Automating is an easy way to save money without ever having to think about it.
The idea is to have money moved from a checking account and into a savings account on the same day each month, perhaps soon after your paycheck is deposited.
This way, the money is whisked from the checking account before it can be spent elsewhere.
If you are new to automating or have an irregular income, it’s okay to start with smaller dollar amounts. Likely, you won’t even notice that the money is gone from your account, and you’ll be able to increase the amount of money over time.
You can set up automatic transfers to your savings, retirement, and other investing accounts.
Increase your savings with a limited-time APY boost.*
*Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates variable, subject to change. Terms apply here. SoFi Bank, N.A. Member FDIC.
4. Planning Your Groceries
Here’s another easy way to save money: Spend less on groceries by making a meal plan and a shopping list before you go to the store.
Without a list, you may be tempted to buy things that look good but that you don’t need or can’t use. Plus, you may end up having to go back to the store later, where you may be tempted to buy more things.
You don’t have to be a pro at meal-planning. It can be as simple as picking a few recipes that you want to make throughout the week (making large enough portions to provide for leftovers is another way to save).
You can then write a list of the ingredients that you’ll need, making sure to check your cabinets and use what you have first. Doing so is a life skill that can save you money.
You may also want to list exactly what snacks and/or desserts you plan to buy, so you’re not overly tempted once you get to the chips or cookies aisle.
Another way to save money on groceries is to cut back on pricier items, such as meat and alcohol, and to go with store or generic brands whenever possible. With tactics like these, you could be saving money daily.
5. Negotiating Your Bills
Some of those recurring bills (such as cable, car insurance, and cell phone) aren’t carved in stone.
Sometimes you can get a lower rate just by calling up and asking, particularly if the provider is in a competitive market.
Before calling, you may want to do a little research and know exactly what you are getting, how much you are paying, and what the competition is charging. You may also want to get competing quotes.
Even a small reduction in a monthly bill can save significant cash by the end of the year.
If you are experiencing hardship, you may also be able to negotiate down your electric and/or other utility bills by calling and explaining your circumstances. It never hurts to ask. The same holds true with doctor’s charges: You may be able to negotiate medical bills as well.
6. Actively Paying Down Credit Cards
This might sound more like spending than saving, but if you’re currently only paying the minimum on your credit cards, a big chunk of your payment is likely going towards interest. Chipping away at the principal can feel like a tall mountain to climb.
If possible, consider putting more than the minimum payment towards your bill each month. The faster those credit cards are paid off, the faster you can reallocate money that was going to interest into savings.
Can’t seem to make a dent in your credit card debt? You might want to look into a zero-interest balance transfer offer, using a lower-interest personal loan to pay off the debt, or finding a debt reduction plan.
7. Canceling Subscriptions
It can be all-too easy for money to leak out of your account due to sneaky subscriptions.
From unused gym memberships to shopping subscription programs, subscription bills (even small ones) can rack up quickly because they come every single month without fail.
The first step is to cancel any subscriptions that no longer serve you. Try to be honest with yourself: Are you likely to start going to the gym? Could you work out at home instead?
If you’re looking to save money faster, you might consider making a sacrifice on a subscription that you do enjoy. For example, maybe you pay for Netflix, Hulu, and Disney+. Is it possible to use just one or two, instead of three? That could be a good way to save on streaming services.
8. Renewing Your Library Card
If you’re a reader and love books, one creative way to save money is to dig out your library card, or if you don’t have one, stop in to apply for a card.
The library can be a great resource for more than books. For example, you can often access magazines, newspapers, DVDs, music, as well as free passes to local museums.
These days, you can typically get many of the benefits of being a cardholder without ever actually going to a branch. You can often get audio books and e-books, as well as access to online publications and online entertainment all from your computer or phone. Cost: Zero.
9. Shopping for Quality
Buying well-made, durable items instead of cheap, trendy, or single-use items may mean spending a little more up front.
But this can be a shrewd money move that can save you a bundle over the long run because you won’t have to repeatedly make the same purchases.
Buying a few classic, well-made pieces of clothing you will wear for a few years, for example, can end up costing less than picking up eight or 10 cheaper, trendier items that you’ll end up replacing next year.
It may also pay off to spend a little more for appliances that are known for being reliable and lasting a long time and have great customer reviews, than buying the cheapest option.
Shopping for quality takes some education and practice, but it can be a worthwhile skill that your wallet will appreciate.
10. Pressing Pause on Big Purchases
Making impulse purchases can wreck a budget. That’s why if you’re tempted to buy an expensive item that is more of a “want” than a “need,” you may want to give yourself some breathing room, and allow the initial rush to wear off.
For example, you might tell yourself that you’ll wait 30 days and if, after the waiting period is over, you still want the item, you can get it then.
During that time you may lose interest in the item. If, however, you still want it in a month, that’s a good sign that this purchase will add substantial value to your life, and isn’t just a fleeting desire. If you can make room for purchase in your budget, then go for it.
This helps you make spending decisions from a slower, more thoughtful place, and can be a huge help in learning to budget and save money.
11. Round up Purchases
A painless and fun way to save money can be by rounding up purchases. You can do this in one of two ways.
• The old-fashioned way is to pay for things with cash and keep the change in a jar. Then, at the end of a week or a month, deposit that change into your savings account.
• Today, there are a variety of apps that allow you to round up purchases. That extra money can then be put into savings or invested. Check with your bank; they may offer a program like this making for a seamless experience.
12. Look into Refinancing Your Loans
Interest rates go up and down, and there may be an advantage to refinancing your loans if you can find a lower rate and/or a shorter term. Doing so could save you considerable money in interest over the life of the loan, whether that’s a mortgage, car payment, or student loan.
13. Bundle Your Insurance Policies
You may be able to whittle down your bills by combining your insurance policies (typically home and auto) with one company. Generally, when you do so, you can reap a solid amount of savings.
14. Gamify Savings
Many people find it helpful to give themselves monthly challenges to save money. It can make the pursuit of spending less more fun and can get your competitive spirit going.
For example, one month, you could vow not to get any takeout coffee and put the savings in the bank. The next month, you could vow to not use any rideshares and instead walk or take public transportation. Again, you’d put the cash saved in the bank.
15. Go Fee-Free
It can be wise to take a look at your financial institution and see how much you are paying in bank fees. There can be everything from overdraft charges to out-of-network fees to foreign transaction costs. In addition, your account might be hit with monthly maintenance or minimum balance fees. All of that can add up.
You might want to shop around for a new banking partner if you’re getting assessed a number of these charges.
Why Saving Money Is Important
Why go to the trouble of pinching pennies like this? Saving money is important for several reasons.
• It can help you build wealth.
• It can give you security.
• It can reduce money stress.
• It can help you achieve short- and long-term financial goals.
• It can allow you to navigate bumpy times (such as job loss).
• It can give you breathing room to splurge at times on the fun stuff of life.
Finding a Good Place to Grow Your Savings
Even if you’re only putting a small amount of money into savings each month, over time, that account will grow.
One way to help it grow faster is to park the money in a place where you won’t accidentally spend it and where it can earn more interest than a typical savings account.
You might consider opening up a high-yield savings account, money market account, online savings account, or a cash management account.
You may find that separating your savings, and watching it grow, keeps you motivated to save.
In some cases, you may be able to create “buckets” within your account, and even give them fun names, such as “Sushi Tour in Japan” or “My Dream House” that can help keep you motivated.
The Takeaway
Saving may not seem nearly as fun as spending, but it can give you the things you ultimately want, whether that’s a posh vacation, a down payment on a new home, or a comfortable retirement.
And, there are plenty of ways to save money that don’t require sacrifice. You can use a mix of short-term strategies (like spending less every time you go to the supermarket) and long-term moves (like paying down debt and buying higher quality goods) to achieve your goals.
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What is the 50/30/20 rule?
The 50/30/20 budget rule says that, of your take-home pay, 50% should be allocated to needs, or basic living expenses and minimum debt payment; 30% should be for wants, or discretionary spending; and 20% should go into savings.
What is the 30 day rule?
The 30-day rule is a way of avoiding impulse purchases and helping you take control of your money. If you find yourself about to make a significant impulse purchase, agree to wait 30 days. Write down the item, its cost, and where you saw it in your calendar for 30 days in the future. If that date rolls around and you still feel you must have it, you can reevaluate buying it, but there is a good chance the sense of “gotta have it” will have passed.
How much should you save a month?
Many financial professionals advise saving 20% of your take-home pay, but of course the exact amount will vary depending on such factors as your income, your debt, your household (how many dependents, for instance), and your cost of living.
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Whether you want to earn extra income to make ends meet or stay engaged with the community, there are plenty of reasons why you may decide to seek out part-time employment after you leave the workforce. And because these jobs don’t require 40 hours a week, you still have plenty of time to enjoy the retirement experience.
• Part-time jobs provide seniors with flexibility and extra income.
• Common positions include dog sitting, office management, content writing, tutoring, retail, and more.
• Pay rates vary from $16 to $80 per hour.
• Job fit depends on individual skills and experience.
• Social Security benefits are unaffected for seniors at full retirement age.
10 Part-Time Jobs for Seniors
Maybe your ideal part-time job allows you to work from home. Or perhaps you’re looking for a side hustle that keeps you moving for most of the day. Whatever your needs are, there are lots of employment options to explore. Here are 10 to consider.
#1: Dog Sitter and Walker
Many people need help with their dogs while they work or when they go out of town. If you’re an animal lover and understand basic pet first aid, offering your services as a dog sitter and walker allows you to care for man’s best friend while also earning cash to help cover retirement expenses.
• General duties: Main duties generally include feeding, walking, and overseeing the care of the dogs. If you’re pet sitting, you might care for them in your home, stay in the client’s home, or check in on the pooches throughout the day.
• Average pay: A dog walker charges an average of $16 per hour, while a pet sitter charges around $16-$24 per hour, per Care.com. However, rates vary by location and the services offered.
#2: Office Manager
Know how to make the workplace run smoothly? An office manager job may be right up your alley. Note that these jobs can sometimes be competitive, so you may want to contact former employers to see if there are part-time positions available. Or consider expanding your search to include a variety of industries. After all, the skills that the job requires — organization, time management, attention to details, problem-solving, communication — are essential no matter what type of office you’re in.
• General duties: These can vary by location but typically consist of coordinating administrative activities in an efficient and cost-effective way.
• Average pay: A typical office manager makes nearly $25 an hour, per ZipRecruiter.
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#3: Content Writer
If you have the writing chops, you may be able to find opportunities to hone your craft and earn some money. In fact, companies across the country need outstanding writers to create their content, so this could be an excellent choice for introverts looking for remote work.
• General duties: You may write content for companies to help them market themselves to potential customers or decision-makers. If you have technical skills — perhaps knowing about search engine optimization or photo editing — all the better!
• Average pay: A content writer typically charges around $40 per hour, per Glassdoor, though some prefer to charge a flat rate for each piece of content they create.
#4: Private Tutor
When it comes to retiree-friendly jobs, it’s tough to beat private tutoring. For starters, you have the option to tutor in person or over a video platform. It’s also a chance to help students with a subject you’re passionate or knowledgeable about. Plus, private tutoring can be a low-stress way to earn money.
• General duties: A private tutor provides one-on-one assistance to help one or more students learn and finish school assignments. This can involve studying the student’s textbooks or other materials and answering their questions on the subject matter.
• Average pay: Private tutors generally charge anywhere between $25-$80 per hour, though that rate can vary by location and expertise.
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#5: Retail Sales Worker
If you enjoy engaging with people and helping them to find what they need, there are numerous retail sales positions to consider. Do you love fashion? Look for jobs where you sell clothing and accessories. Interested in technology? You might be ideal in shops that sell computers, tablets, cell phones, and so forth.
• General duties: You’ll answer customer questions, provide courteous service, and accept payments for transactions. You may also stock shelves and tidy up your area.
• Average pay: On average, retail sales workers earn around $16 per hour.
#6: Receptionist
If your idea of retirement planning involves finding easy part-time jobs for seniors — easy on the feet, that is — and you enjoy talking to people, then a receptionist position could be the ticket. If you don’t mind working weekends, you may want to consider a position in a hospital, nursing home, or similar facility.
• General duties: Receptionists often greet customers or patients and help them register, if necessary. They also answer phones and offer general guidance to people who contact the organization.
• Average pay: Although pay can vary by the type of organization and the state where you live, figure an average of $18 an hour.
#7: Groundskeeper
Many of the part-time jobs for seniors on this list take place indoors. But if you appreciate spending time outdoors, you might enjoy being a groundskeeper.
Note that depending on where you live, this could be a seasonal position, so you may need to adjust your budget accordingly. Either way, consider reviewing your budget a few times a year and making any adjustments if needed with a money tracker app.
• General duties: Groundskeepers generally mow lawns, edge, pull weeds, and plant and care for flowers.
• Average pay: The national average is $18.50 an hour for groundskeeping services.
#8: School Bus Driver
A school bus driver may seem like a surprising job for seniors, but the majority of part-time bus drivers are in fact over the age of 55. To get accepted for this job, you’ll need to have or get a commercial driver’s license, a clean driving record and background, and (probably) plenty of patience.
• General duties: In the mornings, you’ll pick up students from bus stops or homes and drive them to school. Later in the day, you’ll drop them back off. You’ll also need to manage student behavior on the bus.
• Average pay: School bus drivers earn around $23 an hour on average.
#9: Consulting
There are pros and cons of working after retirement, but one benefit is the ability to share your expertise and skills with others. A consulting gig can provide such an opportunity. By the time you reach 65, you’ve likely gained plenty of knowledge that you can impart to business leaders in your field. Plus, as a consultant, you can have a decent amount of control over your when and how much you work.
• General duties: You’ll analyze a situation from an outsider’s perspective, looking for inefficiencies and providing guidance based on your expertise. Typically, consulting is a contract-based position that could continue until a situation has been addressed.
• Average pay: The range for consulting work can largely depend upon your background and expertise. Sometimes, you might charge per project.
#10: Customer Support Representative
Whether your cable conked out or your income tax software hit a glitch, you’ve almost certainly reached out for customer support for help in times of need. If you’re a strong communicator and enjoy helping others, you may want to consider serving as a customer support representative yourself.
• General duties: You’ll receive phone calls or chat messages from a customer in need of a fix. You can help them solve the problems, create tickets for others to address, and offer outstanding customer service to keep people satisfied.
• Average pay: This position typically pays around $20 an hour.
The Takeaway
After you retire, you might be looking for a side hustle that can help bring in some income and keep you active. Fortunately, when it comes to part-time jobs for seniors, there’s no shortage of options to explore. As you review potential positions, consider your work experience, skill set, interests, how much time you plan on working, and how much money you could potentially earn.
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FAQ
Can seniors still work part time and receive Social Security benefits?
According to the Social Security Administration, once you reach the full retirement age, what you earn will no longer reduce your benefits — no matter the amount. As of 2025, if you’re below the full retirement age, the Social Security Administration will deduct $1 out of every $2 you earn above the amount of $23,400.
What skills and experience are needed for a part-time job as a senior?
Required skills will vary widely based on the position. If you’re applying to be an administrative assistant, for example, it’s important to be organized and capable of managing a variety of tasks in a professional way. Being a nanny, on the other hand, requires strong communication skills with parents and children alike. When you’re looking at job ads, check the requirements listed and see how closely they match your experiences and skills.
How many hours a week should seniors work part time?
There’s no one-size-fits-all number of hours a senior should work each week. They’ll want to consider a number of factors to determine the appropriate workload for them, including how much income they need, how much free time they have, and how much they’re able to earn and still receive Social Security benefits.
Photo credit: iStock/Pranithan Chorruangsak
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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Selling things from around the house that you no longer need can be an easy way to make some extra money. If you have some valuable collectibles on hand, you might be able to turn them into more than just pocket change.
Some of the most valuable collectibles include vintage comic books, baseball cards, and toys. Taking a look through your attic, basement, garage, or closets might turn up some items that you could potentially sell for top dollar.
• Rarity, condition, and age significantly influence the value of collectibles.
• Vintage comic books, baseball cards, and toys can be highly valuable, with some selling for millions.
• The Inverted Jenny stamp, a rare 1918 issue, sold for $2 million in 2023.
• A 1979 Boba Fett prototype action figure, featuring a firing rocket, fetched $1.342 million in 2024.
• Action Comics No. 1, the debut of Superman, sold for $6 million in 2024.
What Are the Most Valuable Types of Collectibles?
Some collectibles tend to be more valuable than others, and it’s helpful to know which ones might command the most (or least) money. As you’re sorting through your stuff, here are 10 of the highest-value collectibles to keep an eye out for.
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1. Vintage Comic Books
Comic books are one of the most popular collectibles because of how much they can appreciate in value over time. Devoted comic book fans who want to grow their collections may be willing to drop hundreds or thousands of dollars on a single edition. Even if you’re not getting that much for old comics, you can still sell them to make a little money on the side.
What Makes Vintage Comic Books Valuable?
Rarity and condition usually determine how valuable a vintage comic book ends up being. First editions, limited runs, or editions that introduce a character for the first time are all examples of comic books that may sell for a lot of money. Comic books that are in mint or near-mint condition are usually priced higher, which makes sense as collectors may be willing to pay more for a book that has limited wear and tear.
What Is the Most Valuable Comic Book?
The most expensive private sale of a comic book on record involved an edition of Action Comics No. 1. The comic reportedly sold for $6 million in April 2024, making it the most valuable comic book in recent years.
2. Baseball Cards
Baseball cards are in-demand collectibles that you might be able to sell online, at sports memorabilia conventions, or at local hobby shops. Along with baseball cards, you might be able to sell other sports memorabilia, such as baseball bats, gloves, jerseys, pennants, miniature helmets, or figurines.
What Makes Baseball Cards Valuable?
How much are my baseball cards worth? The answer can depend on the age, rarity, and condition of the card. Of those factors, scarcity can have the biggest influence on what a baseball card will sell for. The fewer there are of a particular card, the more money you might be able to get for it if there are collectors actively seeking it out.
What Is the Most Valuable Baseball Card?
The most valuable baseball card of all time is a Mickey Mantle card. Specifically, it’s the 1952 Topps Mickey Mantle (#311) card, which sold for $12.6 million at auction in 2022.
3. Vintage Bakeware
You might not give much thought to your mother or grandmother’s collection of casserole dishes, but they could be worth a fortune, depending on which ones they have. Vintage CorningWare and Pyrex dishes in particular can have a decent resale value if you’re able to find buyers who are looking for missing pieces to add to their collections.
What Makes Vintage Bakeware Valuable?
The value of CorningWare and Pyrex pieces is usually tied to their age, condition, and rarity. The actual design can also make a difference, as some patterns are considered to be more desirable by collectors than others. Pieces that feature patterns with limited runs or that are several decades old may command higher prices than ones that are more widely available.
What Is the Most Valuable Vintage Bakeware?
One of the most noteworthy examples of high-value vintage bakeware is the Lucky in Love line from Pyrex. A single bowl featuring the hearts and shamrocks design that the line is known for sold on eBay in 2022 for a winning bid of $22,100.
Shopping for bakeware? A spending tracker app can help you figure out what you can and can’t afford.
4. Rare Coins
If you have a collection of old coins gathering dust, you might be sitting on a literal goldmine without realizing it. Coins are one of the most popular and most valuable collectibles, with many of the rarest editions fetching thousands at auction. While their face value may be relatively low, their collectible value can sometimes be astonishing.
What Makes Rare Coins Valuable?
The value of coins is typically tied to three things: age, rarity, and condition. The older and rarer a coin is, the more it’s going to be worth in most cases. Its condition plays a part, however, as two coins from the same period may not have the same value if one is in better condition than the other.
What Is the Most Valuable Rare Coin?
One of the most valuable coins in the world is the Saint-Gaudens Double Eagle, which was minted between 1907 and 1933. These coins are highly valued for their beauty and rarity — the 1933 Double Eagle coin is estimated to be worth up to $18.9 million.
5. Vintage Toys
Hanging onto old toys is something people may do if they hold sentimental value. But certain toys may have monetary value if they’re deemed to be collectibles. Examples of collectible toys can include dolls, action figures, and board games. Trendy and retro toys can also grow in value over time if collectors are giving them special attention.
What Makes Vintage Toys Valuable?
Whether a vintage toy is considered to be valuable or not can depend on things like its rarity, uniqueness, and age. A toy that was manufactured as a special or limited edition, for example, may become sought after by collectors if there are only a few of them to be had. Versions of toys that include manufacturing flaws that distinguish them from other versions may also prove valuable.
What Is the Most Valuable Vintage Toy?
Excluding a 2010 special edition Barbie, which technically doesn’t qualify as vintage, the most expensive toy sold at auction is a 1979 Boba Fett prototype. Featuring a firing rocket, the figure sold for $1.342 million in 2024.
6. Stamps
Collecting stamps is a popular hobby, and if you happen to inherit a collection from a parent or grandparent, you might be wondering what it’s worth. The answer could be anywhere from a few dollars per stamp to more than seven figures.
What Makes Stamps Valuable?
Stamps are assigned value based on a few things, starting with their rarity. For example, some of the most valuable stamps are ones that are the result of a misprinting. Their value is tied not only to the printing error but the fact that only a handful of them exist.
As with other collectibles, the condition of the stamp also matters. The more pristine a stamp is, the higher its value is likely to be.
What Is the Most Valuable Stamp?
One of the most valuable — and notable — stamps is the Inverted Jenny, issued in 1918. The stamp features an image of an upside-down Curtiss JN-4 biplane, and it’s believed that most of them have been destroyed or lost over the years. In 2023, a rare Inverted Jenny sold at auction for $2 million.
7. Vintage Magazines
Vintage editions of popular magazines could easily be worth a few hundred or a few thousand dollars, depending on which ones you have. At the lower end, old magazines might sell for $5 to $20 per copy, which isn’t bad if you’re hoping to clear out clutter in your home and make a few dollars while you’re at it.
What Makes Vintage Magazines Valuable?
The value of a vintage magazine usually hinges on its age, rarity, and condition. A magazine that’s in mint or near-mint condition, for example, is likely to be worth more than one that has a torn or wrinkled cover, or is missing some pages. Editions of a magazine that’s now out-of-print may also be worth more than editions of a publication that’s still in operation.
What Is the Most Valuable Vintage Magazine?
One of the most valuable vintage magazines might surprise you. In 2021, a rare first edition of The Shadow No. 1 sold to a bidder for $156,000, making it the most expensive pulp magazine ever sold.
8. Antique Furniture
Antique furniture tends to be valued for both its age and its craftsmanship. A bed frame that’s hand carved, for example, is typically viewed as being more valuable than one that’s mass produced in a factory. Some of the most valuable furniture is associated with a specific style, such as Chippendale or Rococo.
What Makes Antique Furniture Valuable?
There are several factors that can make antique furniture valuable, including its:
• Age
• Construction
• Materials
• Hardware
• Finish
Furniture that’s associated with a particular designer or stylistic movement can also be collectible. Authentic Shaker furniture, for instance, can easily sell for several hundred or several thousand dollars per piece. A professional appraisal is usually the best way to tell whether a particular piece of furniture is valuable.
What Is the Most Valuable Antique Furniture?
If you’re going by auction prices, the most valuable piece of antique furniture sold in recent years is The Badminton Chest. The chest, constructed in Florence and once believed to have been owned by the third Duke of Beaufort, sold at a Christie’s auction in 2004 for $36.7 million.
9. Jewelry
Jewelry, and related items like watches, are valuable collectibles to have simply because of their staying power. When you buy jewelry that is well made and features a classic design, it stands a better chance of withstanding the test of time. Necklaces, bracelets, brooches, rings, earrings, and pendants all have the potential to be considered collectible.
What Makes Jewelry Valuable?
Jewelry’s value is based on several factors, including the materials used to create the piece, the maker or designer, and its age. The rarer the materials or the more renowned the designer, the more a piece might be worth. The same is true for jewelry that features diamonds or precious stones. The higher the stone’s grading and the larger it is, the more value it may hold.
What Is the Most Valuable Jewelry?
As anyone who has purchased an engagement ring knows, jewelry can be pricey. The most valuable jewelry pieces are the ones that are either exceptionally rare or have some type of historical importance. Some of the world’s most expensive jewels include the Hope Diamond, the Cullinan Diamond, and the Koh-i-Noor Diamond, all of which have associations with royalty, and all of which are estimated to have valuations surpassing $350 million.
10. Antique, Classic, and Vintage Cars
Antique, classic, and vintage cars and other vehicles can also prove to be highly valuable, as these items tend to see strong demand from serious collectors. How much is my car worth? That’s a question an appraiser would likely need to answer, though you might be able to do some preliminary research using online valuation tools for vintage, antique, and classic vehicles.
What Makes Old Cars Valuable?
Valuations for antique, classic, and vintage cars can depend on several factors, including the vehicle’s age, condition, and mileage. How much of the original parts remain can also be a factor for vehicles that have been rebuilt or restored.
What Is the Most Valuable Antique, Classic, or Vintage Car?
Based on recent auctions, the most expensive collectible car is a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe. The vehicle sold for $142 million at a 2022 auction held at the Mercedes-Benz Museum in Stuttgart, Germany.
What Types of Collectibles Gain the Most Value?
Collectibles that gain the most value are typically ones that are rare and in demand. In addition to the examples mentioned above, other valuable collectibles can include:
• Vintage golf clubs
• Vintage children’s books
• Vinyl records
• Retro gaming sets
• Artworks
• Fine wines and liquors
• Shoes
• Handbags
• Clothing
• Perfumes
• Old photographs
• Vintage electronics
• Antique firearms
• Antique or vintage kitchen appliances
• Vintage tools
• Musical instruments
Keep in mind that there are distinctions between items that are antique, vintage, and retro. Something is usually considered to be antique if it’s 100 years old or older. For vintage items, the threshold is typically 40 years, while retro items are 20 years old. The time frames may be different for vehicle valuations, as collectors may assign an additional category of “classic.”
As a general rule, the older an item is the more valuable it tends to be.
Selling valuable collectibles begins with understanding what your items are worth. Getting them appraised by someone who’s knowledgeable about the type of item you have can give you an approximation of its fair market value. For example, if you have a collection of antique watches, then you might take them to a jewelry appraiser for a professional valuation.
Following an appraisal, you may want to take the additional step of getting your items certified as collectible. Having a certificate of authenticity or collectibility can prove to interested buyers that your item is the real deal.
When you’re ready to sell your items, you can research different outlets for doing so. Where you decide to sell can depend largely on what you have to sell. Some of the options for selling collectibles include:
• eBay
• Etsy (for vintage items)
• Local antique buyers
• Consignment stores
• Craigslist
• Facebook Marketplace
• Local comic book stores (for vintage comic books and other pop culture collectibles)
• Sports memorabilia dealers
• Flea markets
• Auction houses
Pawn shops are another option for selling collectibles if you need money in a pinch. Keep in mind, however, that you likely won’t get the full value of your item if you’re selling to a pawn shop.
What Might Be Considered a Collectible in the Future?
It’s difficult to say what may or may not become a collectible, as it can depend largely on trends and how value is assigned to different types of items. Collectibility can depend on several things, including:
• An item’s novelty or rarity
• Demand for that item
• Whether the item has any special historical or social significance attached to it
Applying those tests can help to identify collectible items that have the best odds of growing in value. Examples of items that may be considered collectible in years to come include:
• Funko Pops
• Gaming consoles
• First editions of books that are being published now
• Trending toys
• Autographed memorabilia, which may increase in value once the signer passes away
In general, the value of a collectible item largely rests on how many there are to collect and the condition of each one.
The Takeaway
If you’re looking for alternative types of investments to add to your portfolio, valuable collectibles are one option you might consider. It’s possible that you may have a treasure trove of collectibles that could be worth some serious cash sitting right under your nose at home. And while you’re looking for collectibles to sell, consider what else you can do to make the most of the money you already have.
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FAQ
Are valuable collectibles considered a financial asset?
What is a financial asset? In simple terms, it’s something that has positive value; assets are things you own, like real estate, cars, or bank accounts. Since collectibles typically appreciate in value, they could be considered a type of financial asset.
How do I know if my old items are valuable?
Getting a professional appraisal is usually the best way to determine whether old items are valuable. An appraiser can look at the item to assess its age and condition and then use their knowledge and expertise to give you an estimation of its value.
What is the 100-year rule for antiques?
The 100-year rule for antiques assumes that in order for an item to be considered an antique, it must be 100 years old or older. Vintage items, meanwhile, typically earn that label if they’re at least 40 years old, while retro items are usually at least 20 years old.
Photo credit: iStock/Kemal Yildirim
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