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Mental health and financial health typically go hand in hand. For years, studies have shown a link between stress over finances and an increase in mental health problems, including depression, anxiety, and substance abuse. And on the flip side of the coin, people with mental illnesses are more likely to have financial problems.

Recent research also supports this important connection. In SoFi at Work’s The Future of Workplace Financial Well-Being 2022 survey (which included 800 HR leaders and 800 full-time employees), 75% of workers said they were stressed about financial issues. They also reported that this stress has worsened their sleep (38%), mental health (36%), physical health (27%), and ability to focus at work (23%).

Financial stress and mental health problems can lead to increased absenteeism and low productivity among your workers. As a result, it may make sense to help employees combat financial issues and mental health problems at the same time. Indeed, over the last few years, many employers have been exploring ways that financial well-being benefits and mental health benefits could work together to build the support and offer the solutions employees need to weather financial and mental stress. Here are some lessons from those efforts that might benefit you and your organization.

Recognize How Financial Well-Being Programs Can Support Mental Health in the Workplace

Financial planning, budgeting tools, debt counseling, and financial education services have become increasingly popular employer offerings in recent years. These tools can help employees become financially stable so that they can move on to long-term savings and goals. In addition, gaining control over day-to-day financial challenges can help reduce the stress and anxiety associated with financial instability.

Now may be a particularly good time to emphasize the connection between financial and mental health wellness to your workforce. According to SoFi’s survey data, 84% of employees believe their company should be responsible for their financial well-being, but only 55% feel their company is concerned about their financial wellness. What’s more, 86% said these benefits impact their desire to stay with their employer.

Offer a Choice of Flexible Financial-Contribution Programs

Personalized benefits that are relevant to individuals’ situations can be especially helpful in reducing the financial stress employees are feeling right now. Depending on an employee’s personal situation, payroll deduction emergency savings accounts, student loan repayment programs, and/or debt management tools may be tailor-made tools that can help them handle the financial stressors that may be contributing to depression, anxiety, and other mental illness.

This is a good time to take inventory and see what solutions might be missing from your financial well-being benefits. Questions to consider include:

•   Have you set up an automated emergency savings program for employees?

•   And if you have, are you sure your employees know it exists and how to participate?

•   Do you have a 401(k) matching program for employees paying off student loans?

•   Are your education and financial planning efforts aimed at all employees, not just those focused on long-term savings?

Help Employees Keep an Eye on Long-Range Goals, Too

Today’s high cost of living combined with immediate financial concerns like repaying student loans and credit card debt means that many employees are simply not saving enough for the future. In fact, SoFi’s financial wellness survey found that 47% of workers are concerned that the money they have won’t last, and only 54% said they are securing their financial future.

Despite the demand for short-term saving solutions, you may also want to help employees balance short-term and long-term goals. Even for younger employees, you don’t want to take the focus completely off retirement and college savings benefits. And for employees who are closer to retirement, maintaining savings is important, too. Helping everyone in your workforce, regardless of where they are, maintain a balance between short-term and long-range goals can be an important step to developing their overall financial well-being and lowering their stress.

The Takeaway

Human resource leaders, mental health professionals, and economists all agree that financial stress can have far-reaching consequences for your workforce, including increased mental and physical health issues and reduced engagement and productivity.

Given what we know about the connections between mental health and financial well-being, combining your mental health and financial well-being benefits to create customized packages accessible and meaningful to all employees can help ensure your workforce is ready for the challenges ahead.

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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.

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It can feel as if paying rent every month is akin to throwing money away. You don’t grow equity in a home, nor do you have a place to call your own or customize as you see fit (farmhouse kitchen sink, anyone?).

Perhaps you’re wondering if the time is right to buy a home or at least start saving for one. Maybe you’ve caught DIY fever and have ideas about what your dream home would look like and have been watching videos of how to redo a backsplash and plant some annuals. Or maybe you are planning on enlarging your family and think it’s time to become a homeowner, since a yard and playroom sure would be nice.

But there are other considerations, especially financial ones, to contemplate as well. The housing market has been hot, and pulling together a down payment plus affording a home loan may stretch your budget. Maybe renting is your best bet after all.

“Am I financially ready to buy?” is certainly one question you will likely want to answer. But it’s not the only issue. Here, learn the four signs that you may be ready to join the ranks of first-time homebuyers.

Renting a Home vs. Owning a Home: Pros and Cons

One important way to know if you are ready to be a first-time homebuyer is to consider the pros and cons of owning vs. renting.

First, take a closer look at the benefits of owning:

•  You know what your housing payments will be in terms of your mortgage amount, especially if you opt for a fixed-rate mortgage.

•  Month by month, you will build equity in your home.

•  As your equity grows, you may be able to borrow against it for other financial goals.

•  Owning a home can be a step toward building your net worth.

•  You may qualify for tax deductions.

•  On-time payments can help build your credit history.

•  You can customize your home to reflect your particular needs and tastes.

Now, here are the cons of owning a home:

•  You often need to come up with a down payment, which can be hard to save for. There are also closing costs to be paid.

•  You need to qualify for a mortgage.

•  You also need to budget for property taxes and related expenses such as insurance.

•  It will be your responsibility to pay for home repairs and upgrades, which may make having a healthy emergency fund more important. If, say, the furnace conks out, there’s no landlord to call for help.

•  Your mortgage, as well as taxes and other expenses, could add up to more than rent.

•  You are making a long-term commitment to owning a home. While, of course, you can always sell a property, it’s in your best interest to stay put and recoup closing costs and other expenses vs. picking up and moving frequently.

Next, think over the pros of renting:

•  It could be cheaper than owning. Your rent could be less than the mortgage, and you won’t have property taxes to pay.

•  Repairs and maintenance will likely be your landlord’s responsibility.

•  You’ll have the flexibility to move more easily when you want to.

•  You don’t need to come up with a down payment or qualify for a mortgage loan.

Last of all, take a look at the cons of renting:

•  You won’t be building equity in a property as you make your monthly rental payment.

•  Your net worth will not grow with rising property values.

•  You won’t have the security of ownership and its costs. Your landlord could raise your rent or decide not to rent the property any longer.

•  Your payments typically don’t build your credit history.

•  While you can likely decorate as you please, you won’t be able to upgrade or renovate as you might with a home you own. For instance, even if your landlord did allow you to get a new smart fridge, you probably couldn’t take it with you when you move.

💡 Quick Tip: Buying a home shouldn’t be aggravating. Online mortgage loan forms can make applying quick and simple.

Renting a Home vs. Owning a Home Differences

Deciding whether to buy or rent is a major decision that can involve your financial and personal needs and aspirations. Here are some specifics:

•  Renting a home offers you more flexibility in terms of when and where you move; you will likely feel less anchored in a property.

•  Renting may well be less expensive: You don’t need to come up with a down payment, and rent may cost less than a mortgage or a mortgage plus property taxes.

•  However, when you have a mortgage, you are likely building equity and wealth, which you may choose to borrow against in the future (say, with a cash-out refinance). You may not have that feeling of “throwing money away” every month on rent.

•  When you buy a home, you are on the hook for that monthly payment, but, if you have a fixed-rate loan, it is more predictable than rent which may fluctuate with the housing market.

•  As a homeowner, you would be liable to pay taxes and insurance, as well as bankroll any renovations and upgrades to your home.

•  When you own your own place, you can personalize it to suit you, whether that means putting in a spa bathroom, knocking down walls, or building a patio.

Buying a Home vs. Renting an Apartment

When it comes to deciding whether to buy a property or rent a home (say, an apartment), there is no right or wrong answer.

•  Renting is often more affordable, allowing you to save money and perhaps meet other money goals like paying down debt.

•  Renting is more flexible in most cases. If you rent an apartment, you are able to move at the end of your lease (or possibly before) without a lot of hassle.

•  When you rent an apartment, your landlord is probably covering property taxes and will be responsible for repairs, such as HVAC upgrades or a clogged sink.

That said, when you buy a home, you may find the following:

•  A bigger financial commitment may be required (down payment, closing costs, property taxes, home maintenance), but you are building equity and possibly growing your wealth.

•  You can make your place yours and renovate it to suit your taste.

•  Buying a home vs. renting an apartment can give you a sense of security: You won’t have a landlord who can raise your rent by a major amount, and you can put down roots in a community.

4 Signs You May Be Ready to Buy

If you think owning a home vs. renting is right for you, here are four signals that you may be ready to move ahead.

1. Your Budget Is Big Enough to Cover the Expenses

Home ownership isn’t all gain, no pain. Expenses may include:

•  Down payment and closing costs

•  Mortgage payments, including property taxes, homeowners insurance, and, if applicable, private mortgage insurance

•  Repair and maintenance costs, including HOA dues, if applicable.

How can you budget for these upfront and ongoing expenses? One way is to take a look at the average amount each of these costs in the housing market where you plan to buy a home to get a sense of how home-related expenses may affect your finances in the larger picture.

Doing some number crunching with a home affordability calculator may be enlightening.

You may get excited about buying a fixer-upper when watching home improvement shows. A common mortgage for such homes is an FHA 203(k), backed by the federal government, which includes money for the purchase price and some repairs and renovations.

Buyers will need to get bids for all the repairs they hope to fund with the loan. For less extensive repairs/improvements, there’s a Limited 203(k).

If the desired renovation is on the smaller side and you acquire a traditional mortgage, cash or a personal loan are options.

You can get an idea of how much your chosen home repair or improvement costs will be with this home improvement cost calculator.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

2. You Plan on Staying Put for a While

Buying a home signals more of a commitment to location than renting. If you’re likely to relocate in the coming couple of years, renting may be the right move.

Here’s why: If you buy a home and sell it soon after, there’s a chance you’ll barely break even. That’s because real-estate commissions and other factors will come into play. And the financial and emotional stress of selling again soon after buying can be significant. On the other hand, if you can see yourself staying put in your new home for a while, it might be a sign to start shopping.

3. You Have Good Credit

Your good or better credit profile may have been advantageous when applying for a place to rent.

The credit you’ve spent years building will likely pay off in a bigger way once you make the move to own, with improved lending terms such as a lower mortgage rate offered.

What credit score is needed to buy a house? The average American’s credit score remains in the range considered “good.” But applicants with “fair” and even “poor” credit scores can and do secure mortgages.

Here’s how credit scores are usually classified:

•  Excellent: 800–850

•  Very good: 740–799

•  Good: 670–739

•  Fair: 580–669

•  Poor: 300–579

If you’ve spent years building your credit and your number reflects that, then you might be financially ready to buy a home.

Credit score requirements for loan program eligibility and pricing can vary from lender to lender, so you may want to shop around.

4. Rents in Your Area Are High

In many markets, the rising price of rent could make buying more enticing than ever. It may be a smarter move to invest your money toward homeownership vs rent.

Two big factors to consider are:

•  How long you plan to stay in your home

•  The price-to-rent ratio, which compares the median home price and median annual rent in a given area.

Several websites (such as Zillow, Trulia, and Realtor.com) have tools that allow you to assess the dollars and cents of renting vs. buying. Estimating your break-even point of renting vs. owning a home could be another useful way to answer the question of whether it’s a good time to buy a home.

It’s best to take the calculations with a grain of salt, though. These are general estimates, and no one can predict the future of housing prices, rents, and taxes.

The Takeaway

When considering whether to buy vs. rent, there’s not one right decision. It’s a matter of which scenario suits your life and your financial situation at a given time.

Signs that you may be ready to buy a home can include having an adequate budget for the costs involved and a good credit profile, a desire to put down roots, and an understanding of the price-to-rent ratio in your target area.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What are the advantages of owning vs. renting a home?

There are several pros to owning vs. renting a home. You can build equity in your home and potentially grow your net worth. What’s more, you can personalize your home however you like. You’ll also have stability in terms of both knowing your housing costs every month (versus a surprise rent hike) and putting down roots in a community.

What are 3 disadvantages to owning a home?

There are several cons to owning vs. renting a home. You may face higher costs (down payment, closing costs, mortgage, plus property taxes). In addition, you will be responsible for home maintenance, which can be pricey and require your time and energy. You’ll likely have less flexibility in terms of moving, too.

What is the main reason to avoid renting to own?

Renting to own can be problematic if you change your mind. You can wind up losing your down payment and other charges.

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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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.

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.

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.

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Moving can be stressful. Making sure your fragiles are packed so they don’t break, deciding on a DIY move or hiring professional movers, managing security deposits or down payments on both ends of the move — moving cross country could overwhelm even the most relaxed person.

But there are steps you can take ahead of time to help make the process go more smoothly.

Reduce, Reuse, Recycle

The three Rs aren’t just good environmental stewardship — they’re also essential for planning a cross-country move.

After all, moving is a great time to embrace your inner minimalist and get rid of absolutely everything that’s no longer needed. Not only does decluttering help cut down on moving costs, it also helps you avoid filling up the new place with meaningless stuff.

Instead of just throwing away unwanted goods, trying to find them a new home might give them a second life. Furniture items can be sold online or in consignment stores to raise a bit of extra money for the moving fund, or they can be donated to a thrift store.

Professional clothes that are no longer worn could help someone if donated to a job readiness program. Animal shelters often take donations of old sheets and blankets to make cuddly beds for their charges.

Local freecycle or buy-nothing groups can also be great places to unload unwanted home goods. You never know who has a use for those five dish strainers you’ve somehow accumulated.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

Pack Like a Pro

Once you’ve decluttered, it’s time to get packing. Resist the urge to throw everything into a medium-sized box and call it a day. Taking the time to pack up your home like a professional will make moving — and the subsequent unpacking — a whole lot easier.

First, gather your packing supplies. You’ll want to make sure you have plenty of boxes of varying sizes, several rolls of packing tape, large black markers, scissors, a utility knife, and several types of packing materials, like old newspaper, bubble wrap, and even old rags or sheets.

Start by packing up non-essentials, like seasonal home goods, out-of-season clothes, and rarely used kitchen goods.

Make sure to wrap all fragile items in paper or bubble wrap before putting them in boxes. Plates can be packed next to each other vertically, which helps prevent breaking. Likewise, adding a layer of crumbled newsprint or packing paper on the bottom of your box can also help prevent breakage.

Aim to keep each box light enough to lift alone, with heavy items on the bottom and lighter items on top. Don’t forget to pack similar items together. No one wants to arrive at their new home and find their dishes somehow got packed next to the cat’s litter box.

Recommended: 21 Items That You Can Recycle for Money

Choose Your Mode of Transportation

One of the most challenging parts of planning a move across the country — or even to another state — can be planning the actual transportation. Will you fly, and then ship your cargo to your new home? Hire a moving company to pack everything up and unpack it at your new place? Rent a cargo trailer and drive across the country?

Each option has its benefits and its drawbacks, but choosing the mode of transportation that best fits your needs and budget can help keep your move as stress-free as possible. And, depending on the mode you choose, it could help you keep your budget intact, too.

Hire a Moving Company

The easiest, and usually the most expensive, option is to hire a moving company and let them take care of the details. Using a moving company for a cross-country move can cost between $2,000 and $8,000. That figure can rise when you add in fuel costs, fees, and insurance.

Some moving companies will send someone out to take a look at how much stuff you plan to move to give a more accurate cost estimate. They may also estimate the weight of the load and calculate how far you plan on moving when giving you the final estimate.

If you’re hiring movers, one way to cut down on expenses is to pack and unpack your stuff yourself. Asking for personal recommendations, reading online reviews, and getting a few different quotes before deciding on a moving company can help you get the best company for your needs.

Ship Your Belongings

If you don’t have any big furniture to move, you may be able to get away with shipping your goods and hopping on a plane with just your essentials.

Shipping your goods as freight can be a more affordable option, whether you send them via mail, train, or even take a few boxes as checked baggage on the flight.

The downside is that unless the boxes are traveling on your flight with you, you may end up waiting a while for them at your destination. And, like all mail, there is always a chance things could be lost or damaged during the journey.

Rent a Truck or Trailer

Many movers choose to take the DIY route and rent a cargo truck or trailer to haul their worldly possessions. This can be a budget-friendly option, but remember that for all the cost savings, you’ll be putting in a lot more hard work.

You’ll need to pack and load all your boxes and furniture into the trailer yourself. On top of packing, you’ll also have to be comfortable driving the cargo truck or trailer the hundreds or thousands of miles that lie between you and your destination.


💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why credit card consolidation loans are so popular.

Budgeting for Your Move

Still wondering how to move across the country without going broke? There’s no doubt about it: moving is expensive.

And don’t forget to include the additional costs of moving, like a down payment on your new place, or first and last month’s rent, and the cost of setting up your new home with all the essentials.

On top of that, moving often coincides with changing jobs, which may mean that you have a few weeks where you could be without a paycheck. All of this makes moving across the country financially draining for many people.

If you know you’ll be moving in the future, saving up now and using any money you make selling unwanted goods can be a good way to build up your moving fund.

Some people, however, realize they need a little more help in covering the upfront costs of moving across the country. When you need quick cash for your move, a relocation loan can be an option worth exploring, as some lenders disburse loan funds within a few days. The money can cover a wide range of moving costs, from deposits to storage to professional movers, transportation, and even hotel stays.

A personal loan may offer lower interest rates than many credit cards do and, unlike a credit card, a personal loan is not revolving credit. That means the loan is for a set amount of money and paid back over a fixed period of time.

Recommended: Get Your Personal Loan Approved

The Takeaway

Moving across the country can be overwhelming, but there are ways to help make the process feel less stressful. Getting rid of things you no longer want or need is a good place to start. Just as important is how you plan on transporting your belongings to your new home. Hiring movers is generally considered the easiest option, though it tends to also be the most expensive. If you’re looking to keep expenses down, you may decide to ship your items or rent a truck and drive them across the country yourself.

As you’re creating your moving budget, be sure to factor in the cost of setting up your new home. This may include the down payment or security deposit on your new place and paying for groceries, new furniture, and other essentials.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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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.

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