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While talking about prenups and postnups isn’t as romantic as discussing your honeymoon or dream house, these agreements can be a financial lifesaver if your marriage were to end.

Both prenups and postnups help determine who would get what if you and your spouse got divorced. But there are some significant differences between them. And depending on your circumstances, one may suit your relationship better than the other.

Here, you’ll learn some of the key ways prenups vs. postnups differ, as well as how to decide if you and your partner would benefit from getting one or the other.

What is a Prenup?

Short for “prenuptial agreement,” a prenup is a legally binding document set up before a couple gets married — hence the “pre” suffix. Prenups may also be known as “antenuptial agreements” or “premarital agreements,” but the bottom line is, they’re contracts drafted before vows are made.

These contracts typically list each party’s assets, including property, bank accounts, heirlooms, collections, pets. etc, as well as any debts either soon-to-be-spouse might carry.

It then details how these assets and financial obligations will be divided in case the marriage comes to an end, either through a divorce or the death of a spouse.

Who Needs a Prenup?

Couples who are getting married for the first time and are bringing little to no assets into the marriage may not need to bother with drawing up a prenup.

However, a prenup can be particularly useful if one spouse is coming into the marriage with children from a previous partnership, or if one partner has a large inheritance or a significant estate, or is expecting to receive a large inheritance or distribution from a family trust.

These types of agreements aren’t just used in case of divorce, but also death, which can be particularly important for couples with children from a previous marriage. If that partner dies, the prenup can define how much of their wealth should be passed onto their children versus their surviving spouse.

Prenups can also be useful for protecting assets earned and property acquired during the course of a marriage, which, without a prenup, are generally considered “shared ownership.” If one partner wants to maintain a separate claim to acquired wealth or possessions, a prenuptial agreement makes that possible.

A prenup can also keep a high-earning partner from being required to pay alimony to their partner in the case of a divorce. However, in some states, a spouse can’t give up the right to alimony, and the waiver may not be enforced by a judge depending on the way the prenup is drafted.

In the event of divorce, a prenup can also help protect a spouse from being liable for any debt, such as student loan payments, the other spouse brought into the union.

What is a Postnup?

A postnup, or postnuptial agreement, is almost identical to a prenup — except that it’s drafted after a marriage has been established.

These contracts may not be as well known as prenups, but postnups have grown increasingly common in recent years, with nearly all 50 U.S. states now allowing them.

A postnup may be created soon after the wedding if a couple meant to get a prenup but simply didn’t get around to it before the big day. Or, it might be drawn up well afterwards, especially if some significant financial change has taken place in the family.

Either way, a postnup, much like a prenup, does the job of outlining exactly how assets, including individual checking accounts, joint bank accounts, property previously owned and purchased together, etc., will be allocated if the partnership comes to an end.

Who Needs a Postnup?

Along with being drafted whole cloth, a postnup can be used to amend an existing prenuptial agreement if there have been big changes that mean the initial contract is now outdated.

And although it’s not fun to think about, if a couple feels they’ll soon be facing divorce, a postnup can help simplify one important part of the process before the rest of the legal proceedings take place.

A postnup, like a prenup, can help separate out assets that would otherwise be considered shared, or “marital property,” which can be important if one partner obtains an inheritance, trust, piece of real estate, or other possession they want to maintain full ownership over.

Postnups can also be part of a renewed effort for a couple to commit to a marriage that may be facing some obstacles and challenges.

Recommended: How to Make Talking About Finances Fun, Not a Fight

Prenup vs. Postnup: Which is Right for Your Relationship?

While it may be a difficult conversation to face with your fiance or spouse, creating a prenup or postnup can be an important step to help you avoid both headache and heartache later on.

If you don’t make a prenup or postnup, your state’s laws determine who owns the assets that you acquire in your marriage, as well as what happens to that property in the event of divorce or death. State law may also determine what happens to some of the assets you owned before marriage.

While almost any couple can benefit from a frank discussion of who gets what in the worst-case scenario, here are the situations in which you might specifically want to consider a prenup vs. postnup.

When to Consider a Prenup

•   If one or both partners have existing children from a previous partnership, to whom they want to lay out specific inheritances in case of death.

•   If one partner has a larger estate or net worth (i.e., if one spouse is significantly wealthier than the other).

•   If one or both partners want to protect earnings made and possessions acquired during the marriage from “shared ownership.”

When to Consider a Postnup

•   If you intended to create a prenup but ran out of time or otherwise didn’t do so before the wedding.

•   If significant financial changes have made it necessary to change an existing prenup or draft a new postnup.

•   If divorce is looking likely or inevitable, and you want to streamline the process of dividing marital assets before undergoing the rest of the process.

In all cases, prenuptial and postnuptial agreements can help simplify the division of assets in the case of either death or divorce — and in either of those extremely emotionally charged scenarios, every little bit of simplification can help.

However, prenups are sometimes considered more straightforward, since they’re made before assets are combined to become marital property.

Prenups may be more likely to be enforceable than postnups should one partner attempt to dispute it after a divorce.

How to Get a Prenup or Postnup

Here are points to consider:

•   For a prenup or postnup agreement to be considered valid by a judge, it must be clear, legally sound, and fair.

•   Couples looking to save money may be able to use a template to create a prenup or postnup themselves.

•   It may still be a good idea, however, for each partner to at least have separate attorneys review the document before either one signs.

•   If your estate is more complex, you may want to consider hiring an attorney to draft the agreement.

•   Either way, having an attorney review the document will help protect your interests and also help ensure that a judge will deem the agreement is valid.

Recommended: How to Manage Your Money Better

Reducing the Odds You’ll Ever Need to Use that Prenup or Postnup

While creating a prenup or postnup can be a smart move for even the most hopeful and romantic of couples, the ideal scenario is a happily-ever-after that leaves those contracts to gather dust.

Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.

For some couples, one way to improve their odds might be waiting until they’ve achieved some measure of financial stability before tying the knot. Walking into a marriage with a solid personal foundation, such as a well-stocked emergency fund and a well-established retirement account, can help partners feel empowered and able to focus on other important relationship goals.

Financial transparency, starting before and/or early in marriage, can also help mitigate marital tension over money.

To achieve more transparency, some couples may want to consider opening up a joint bank account, either after they tie the knot or before if they are living together and sharing household expenses.

While there are pros and cons to having a shared account, merging at least some of your money can help make it easier to track spending and stick to a household budget, while also fostering openness and teamwork.

For couples who’d rather not share every penny (or explain every purchase), having two separate accounts along with one joint account can be a good solution that helps keep money from becoming a source of tension in a marriage.

The Takeaway

Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies.

A prenup is drafted before marriage, while a postnup can be drafted soon after or many years into marriage. Both agreements can make divorce or the death of a partner significantly less traumatic and help divide assets in an equitable way.

Whether you’re looking to integrate your money with your partner or keep at least some of it separate, the right banking partner can simplify money management both before and after you get married.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Are postnups as good as prenups?

Postnuptial agreements can be just as effective as prenuptial agreements, provided they are well-drafted and both parties enter into them voluntarily. Both agreements serve to clarify financial responsibilities and asset distribution in case of divorce. However, postnups may face more scrutiny in court because they are made after the marriage, potentially under different emotional circumstances. Ensuring the agreement is fair and legally sound is crucial for its effectiveness.

What are the disadvantages of a postnuptial agreement?

Postnuptial agreements can strain a marriage, as they may be seen as a lack of trust or commitment. They can also be more challenging to enforce if one party claims they were coerced or if the agreement is deemed unfair. It’s important to handle the process with sensitivity and legal guidance.

Is a postnup enforceable?

A postnup is generally enforceable if it meets legal requirements, such as being in writing, signed by both parties, and notarized. It must be fair and not result from coercion or fraud. Ideally, both parties should have independent legal representation, as this helps to ensure the agreement is valid. Courts may scrutinize postnups more closely than prenups due to the emotional dynamics of a marriage, but a well-drafted postnup can still hold up in court.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
This article is not intended to be legal advice. Please consult an attorney for advice.

SOBNK-Q225-072

If you’ve made the decision to buy a home—or sell the one you have—you also may be thinking about hiring someone to help things go as smoothly as possible.

A real estate professional can assist in assessing how much to list or bid on a home for, help with negotiations, hold your hand while you make important decisions, and help you understand the complicated paperwork.

The right agent can help you buy your dream home or sell the home you have now. The wrong agent might not focus on your needs or price your house incorrectly, leaving you angry or disappointed.

But how can you know who to hire when the pros often have different job experience or expertise and go by different job titles? Are all real estate agents also Realtors®? Is that the same thing as a sales associate? What’s the difference between a buyer’s agent and a listing agent? And what does a real estate broker do?

What’s in a Name?

Though the terms Realtor and real estate agent are often used interchangeably, there are important differences you should know when it’s time to buy a house. Here’s a breakdown of the various titles real estate professionals use and what they mean:

Real estate agent: This is the most common term used for professionals who help clients buy and sell real estate. (Some firms may call their real estate agents “sales associates” or “salespeople.”) But a person can’t just slap their name on a business card and start selling homes.

A real estate agent must have a professional license to help residential or commercial clients buy, sell, or rent real estate. And to get that license, aspiring agents must take the required hours of pre-licensing training and any written exams mandated by their state. There are also continuing education requirements for license renewal. States also have different age, education, and residency requirements, and some jurisdictions also require a background check.

Realtor: This term is trademarked by the National Association of Realtors (NAR), the largest trade organization in the U.S., and it should be used only to refer to that organization’s dues-paying members.

Members of the NAR are licensed professionals who expect to be held to a higher standard of practice, and they have their own strict code of ethics which is made up of 17 articles, meant to protect clients, the public, and other real estate agents. According to the NAR, in 2024, 65% of its members are licensed sales agents, 22% hold a broker license, and 17% hold a broker associate license.

If you’re looking at hiring a Realtor vs. an agent, one of the big perks of NAR membership is access to additional research, market data, and transaction management services.

Broker: Brokers are professionals who take their real estate education and licensing to the next level — and they often manage other agents. (Think of it like a school principal who still may teach, but also has management responsibilities.)

Because of this elevated role, a broker’s pre-licensing coursework usually dives deeper into complicated topics such as contracts, taxes, insurance, and other legal issues.

Real estate brokers can work as independent agents or have other agents working for them — in the latter situation, they typically receive a percentage of their agents’ commissions as payment for overseeing their transactions. Agents who pass the broker exam but choose to work under another broker may be referred to as associate brokers.

Listing agent: Some agents prefer to work only with sellers. Others work only with buyers. But many agents do both. Real estate agents who represent someone selling a home are called “listing agents.”

In that capacity, their duties may include pricing the home, suggesting improvements, marketing and holding open houses, coordinating showings with other agents, recommending renovations or offering staging tips, and negotiating with potential buyers.

Buyer’s agent: Agents who represent homebuyers are called “buyer’s agents,” and it’s their job to help their clients find potential homes to tour and show those homes, offer references for other professionals that may be needed (inspectors, mortgage brokers, etc.), negotiate house prices, and help their clients through the closing. Listing agents and buyer’s agents typically split a 4% to 6% commission on a home’s sale price — and that money is typically paid by the seller from the sale proceeds of the home.

Recommended: How to Make an Offer on a House

Looking Beyond the Job Title

Besides understanding the credentials, duties, and level of education each real estate professional involved in your home sale or purchase may have, here are some other factors to consider when finding a real estate agent:

•   Do you want to work with a team or an individual? With a team, you’ll have multiple agents looking out for you — and there might always be somebody to sub in if your agent is unavailable for a showing or to answer a question. With an individual agent, you’ll have just one person to go to for all your needs, but you’ll get to know that agent, and they’ll get to know you. That personalized approach might be helpful during what could be a stressful process.

•   How much experience does your potential agent have? Not that there’s anything wrong with a sharp, gung-ho newbie, but given that your home purchase may be the biggest financial transaction of your life, it’s important to get it right. A seasoned agent can draw from past experiences when negotiating and problem-solving. You also may want to ask if the agent considers real estate to be a full- or part-time job. If this is a major purchase for you, you may want to know that you have the person’s full focus.

•   How familiar is the real estate agent with your current neighborhood (if you’re selling) and desired neighborhood (if you’re buying)? Knowledge of the area can be a plus when you’re looking at “comps” or “comparables” to determine the fair value of a home. Your agent should also be able to help if you need information about schools or crime. Of course, anyone can look up this information, but an agent’s insider knowledge (school zones that might slow your commute? A big new development planned nearby but not yet constructed?) may give you an edge in decision-making.

•   Where did you hear about the professional you’re considering? The agent with the biggest advertising budget may or may not be the right person for you. If you have family and friends in the area, they might be able to help with recommendations. (Don’t just ask who they used—ask if they’d use that person again.) Plan on interviewing your top prospects, ideally in person, to be sure communication is easy.

Recommended: First-Time Homebuyer Guide

The Takeaway

Finding a qualified, experienced real estate professional to work with a major step in the home buying or selling process. The right person could help you with everything from figuring out how much house you may be able to qualify for, to getting you into the home you want with as little financial and emotional pain as possible.

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.

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SOHL-Q225-030

Ask couples what they fight about most, and money is sure to be at the top of the list. Decades of research have shown that common clashes are sparked by different spending habits, different financial values (which influence spending habits), and how to raise financially smart kids.

While dealing with money isn’t always easy, it doesn’t have to drive a wedge in your relationship. These strategies can help ensure your financial discussions with your partner are productive and — dare we suggest — maybe even something to look forward to.

Meet Regularly — but Don’t Discuss Money

When couples fight about money, the classic mistake is to think that having a regular “money talk” will help solve things. Unlikely.

That’s because the source of most financial disagreements is that one person’s values don’t line up with the other’s. In order to truly ease money stress, you have to start by understanding the bigger wants and needs and priorities of your partner.

Make time to meet regularly and focus on things you both want out of life. It doesn’t have to be a long conversation — maybe 30 minutes, or an hour.

Come Prepared

Consider bringing a list of topics to each meeting, but don’t expect to cover them all. There will be other meetings, and it’s more important to leave each conversation with a sense that you understand each other better. Depending on the stage of your relationship, you might raise some common questions:

Do you want kids? Do you want pets? Do you want to live a certain lifestyle? Start a business? Retire early? Send the kids to private school vs. public?

How important is it to have a vacation each year, or is it more important to have a beautiful home — or both?

Do you both believe in working hard and playing hard? Working to live or living to work? These may sound like cliches, but dig into each topic to get at each person’s core feelings.

Create a Safe Space

A key aspect of these non-money talks has to be a spirit of openness, not criticism or judgment. You’re trying to get to know one another in a slightly different way. Ask questions, take time to listen to each other’s answers.

While these sessions may seem uncomfortable at first, having these non-financial conversations may actually prevent important issues from causing conflicts or money fights in the future.

Again, keep these conversations fairly short. The idea is to find common ground, and that may not happen right away. So don’t expect to agree, expect to learn something new about your partner.

Look for Shared Goals and Points of Agreement

Even couples that fight about money, also agree on plenty of financial issues. Be sure to pay attention as you discover these points in common, and celebrate the fact that you have them.

Knowing that you have financial goals and priorities in common, not just pain points, can build your confidence and momentum and lead to the good part of all this: Having more fun because you’re not stressed about money squabbles!

Address Financial Topics as Organically as You Can

Rather than set up more meetings (who has time?), you can use your newfound empathy and sense of shared values to tackle topics as they come up naturally in your day-to-day lives.

Now you can talk about spending when you get the credit card bill, or when you have to make a tough choice between two competing priorities. In some ways it’s less stressful to discuss whether to refinance the house or set up a Roth IRA when that question comes up organically, rather than trying to anticipate bigger issues.

Be sure to include something fun in your financial plan. Money is for the future, and it’s also for the present, so make sure you enjoy it.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Let Go of Resentment

Financial inequity between partners — say, if one person has a lot of debt or there’s a large disparity between incomes — can be a common source of tension.

If you feel like one person’s debt is holding you both back, remember that it doesn’t have to last forever. There are many strategies for paying off debt — talking it through will help you find the right path for you both. You might also decide to meet with a financial advisor who can help you prioritize, create a budget, and perhaps even refinance to break even faster.

In cases of income disparity, it may help to reframe each partner’s contribution to the household. Yes, one person may bring in more (or all) of the household income, but be clear on the non-monetary intangibles that the other person is contributing. Cooking, cleaning, watching the kids, caring for aging relatives — these duties all add up and represent what each of you is bringing to the household.

Reward Yourselves

Create incentives to stick with your meeting schedule. Maybe that means taking your laptops to your favorite coffee shop, or treating yourselves to a movie night afterward.

Another idea is to reward yourselves as a couple after you hit a predetermined financial goal or milestone. For example, every month you successfully increase your emergency fund by a target amount, you might choose to enjoy a nice restaurant meal.

Even a free indulgence — like a walk around your favorite lake after the discussion — can be effective. Just make it something that you both enjoy (bonus points if it’s something that you don’t do all the time so it feels extra special). That way, you’ll look forward to it.

The Takeaway

The best way to take the sting out of discussing finances with your partner is to start by getting in sync as people, understanding each other’s values and perspectives. Scheduling time to talk monthly (or whatever cadence works for you) allows you to also savor the ways you are on the same page already, and what some of those shared goals are.

Don’t try to meet about big hairy financial goals that aren’t on the table yet. You do have to plan ahead, but it’s also important (and less stressful) to address money matters as they arise naturally. Then, get back to the fun of living your lives together the rest of the time.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do you talk about money in a relationship?

Talking about money in a relationship requires openness and honesty. Start by setting up a regular time to discuss your financial goals, values, and concerns. Create a safe space where both partners can share without judgment. Try to only use “I” statements to express your feelings and avoid blame. This approach helps build trust and ensures both partners are on the same page.

At what point in a relationship should you talk about money?

It’s best to talk about money early in a relationship, ideally before moving in together or becoming financially intertwined. This could be after a few months of dating or when the relationship feels serious. Discussing financial matters early helps prevent misunderstandings and builds a foundation of trust. It’s also wise to revisit the topic periodically as your relationship and financial situations evolve.

What is a financial red flag in a relationship?

A financial red flag in a relationship includes secretive behavior about money, excessive debt, or an unwillingness to discuss financial matters. Other signs include lying about spending, refusing to contribute to shared expenses, and having different financial goals without a plan to reconcile them. Recognizing these red flags early can help you address issues and maintain a healthy, transparent relationship.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q225-092

Even people who closely monitor their spending might go over budget now and then. What’s important is how they handle getting back on track.

If you go over your budget, there are a few different steps you can take to get back on course. And combining some of them might help speed up the budget repair process. Here’s what you need to know.

Keep an Eye on Spending

Reviewing account balances and statements once a week is an easy way to keep track of money coming in and money going out. A few big purchases can easily upset an otherwise balanced budget.

Waiting until the end of the month to check in on accounts leaves you at risk for excess spending and potentially overdrawing a checking account or having a higher credit card bill than you anticipated.

Checking in once a week leaves time to self correct and adjust the budget to help balance the numbers.

Identify What Went Wrong

Going over budget sometimes means there’s uncertainty about where the money went. Overspending can mount quickly, putting the budget out of balance. It might only take a few extra additions to your grocery cart, an unexpected car repair, or a couple of splurge purchases.

When there is general overspending or if it’s just in a specific budgeting category, looking at recent bills and credit card statements might help identify where the money was spent. Were there too many restaurant meals, increasing food spending as a result? Was there too much temptation to shop online sales? Identifying budget lapses can make it easier to avoid them in the future.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

Cut Unnecessary Expenses Temporarily

When a budget is too restrictive, it can feel punishing. A budget can account for the unnecessary spending that makes life fun like travel, dining out, shopping, gifts, and beauty treatments. If these expenses create a problem in the budget, you can temporarily cut back on those categories. Once your budget is balanced again, those expenses can be put back into the mix. Balance is key.

Use a Budgeting Tool

A free budget planning app can help you customize your spending categories and even keep track of your bills. It will send you updates on your progress and let you see where your earnings and spending go each month. This can make creating a realistic budget even easier.

Build an Emergency Fund

One thing you can do to get back on track after going over budget is to make sure you have an emergency fund for financially difficult situations, such as expensive medical bills or necessary home repairs.

Emergency funds can also be used to prevent emergencies. For instance, an emergency fund might provide extra support if a debt payment is at risk of being paid late, which could incur fees and interest and add to your debt load.

💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.

Explore Different Budgeting Techniques

Sometimes the trick to sticking to a personal budget—or bouncing back after going over that budget—is to try a different budgeting method. Not all methods work for all personality types. Take some time to find the right budgeting fit, even if the first few rounds don’t go according to plan. There are a few different popular budgeting methods that might help someone get their budget back on track, such as:

1. Line-item budget. This is probably what most people think of when they think of a budget. With a line item budget, the income and expenses are usually in a spreadsheet format where each expense is listed by category with the goal being not to exceed spending targets in any of the categories.

2. Proportional budget. This type of budgeting system requires dividing monthly income into three categories—needs, wants, and savings—based on percentages. The budgeter will allocate a spending percentage to each category and aim to stick to that budget. A common proportional budget is the 50/30/20 budget, with 50% of income going to needs, 30% to wants, and 20% to savings.

3. Paying-yourself-first budget. For those who want to keep their budget simple, this method is pretty straightforward. You simply “pay yourself first” which means you put money towards savings or financial goals first (perhaps 25% of your take-home income). Then you can spend the rest of your income exactly as you need or wish to.

4. Envelope budget. This technique provides a hands-on approach to spending that can be helpful for people who tend to swipe their credit card without fully realizing the potential consequences. With the envelope method, you use envelopes to hold cash that represent different spending categories. You then make all your purchases for the month in cash. If an envelope runs out of money, spending in that category stops until the next month — unless you borrow money from another envelope, limiting spending in that category.

5. Zero-sum budgeting. With zero-sum budgeting, you “spend” every dollar you have, allocating each one to a specific purpose, like adding money to your savings account. Once every dollar is allocated, there are zero leftover dollars, hence the name zero-sum budgeting.

Recommended: 15 Creative Ways to Save Money

Cut Out Temptations

Temptations happen, and it’s generally better to learn from budget mishaps than agonize over them. However, if there is a certain temptation that seems to rear its ugly head again and again while wreaking havoc on your budget, it might be time to send that temptation packing.

Common Triggers of Overspending

There are many things that might trigger overspending, but some common ones to look out for might be:

•   Email sale and coupon promotions

•   Social media advertisements

•   Friends who pressure others to spend

•   Grocery shopping when hungry

•   Shopping when emotional

•   Shopping as a reward

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

Launch a Side Hustle

For someone who wants to get their budget back on track, a side hustle can be one way to bring in more cash and maybe even build valuable career skills and opportunities. Launching a side hustle might allow you to pursue a passion outside of your day job while benefiting your budget.

The Takeaway

Sticking to a budget can be challenging. If you go off track, don’t beat yourself up over it. Instead, determine what went wrong and how you can prevent it from happening in the future, cut your expenses for a few weeks, and figure out the best method to get your spending and savings back on track. You may even want to try another type of budget that could be easier to follow going forward.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What’s the first step to get back on track after overspending?

When you’ve gone over budget, the first step is to carefully review your spending. Check bank and credit card statements to see where your money went and to identify why you overspent. Understanding your spending patterns can help you create a recovery plan.

What practical steps can help me recover financially after going over budget?

After overspending, determine how you can reduce non-essential spending. This might include limiting shopping and dining out, skipping the pricier takeout coffee in the morning, and pausing subscriptions until your finances are realigned with your budget. Also consider removing spending triggers, such as unsubscribing from emails that encourage impulse buys, shopping as “retail therapy,” or even acquaintances who encourage excess spending.

What practical tips can help me avoid overspending in the future?

To help maintain your budget, work on building an emergency fund. Having savings specifically for unforeseen costs like medical bills or urgent repairs can prevent these surprises from derailing your budget. Also consider trying a different budgeting technique, whether you’re using a spreadsheet or a budgeting app. Line-item budgets, proportional methods like the 50/30/20 rule, and “pay yourself first” are just some of the budgeting methods to consider.

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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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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