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Are you a certified cheapskate, a modern-day Scrooge? Or are you frugal in a smart, reasonable way that doesn’t reflect badly on you or cause those around you some pain? These two classifications differ greatly. With careful introspection, you can learn which side you’re on and go from there.

But this is not just a quiz or a game to find your fun profile. Penny-pinching, or being a cheap person, can be painful for friends and family and also for you. It can stir up feelings of deprivation and insecurity; possibly even dishonesty. Whether you take a pocketful of “free” peppermints from a cafe or stiff your waitress, the consequences can add up, impacting your well-being across the board, from finances to relationships. On the flip side, being frugal means having a levelheaded (and even generous) attitude about money. Frugal people are usually respected and appreciated.

Need more cheapskate identifiers? Read on to learn 15 signs you are cheap, including:

•   Hoarding possessions because you think they might be worth money

•   Stealing things, from Post-its at work to a bagful of granola bars at a social function

•   Skimping on restaurant tips

What Is a Cheapskate?

A cheapskate is a person who is extremely stingy with their money and time. Take a closer look if you want to answer the question “Am I too cheap?”

•   Are you so tight-fisted that instead of paying postage, you mail things from the office, so your employer foots the bill?

•   Do you (over)help yourself to “free” food but refuse to buy a snack or drink at a movie theater?

•   Are you stingy with your time, never volunteering for a good cause or putting in extra hours when your work team is in a crunch?

•   If the kids’ menu is for ages 12 and under, do you lie about how old your children are so they can partake for less?

If, in these and other ways, you think your personal profit is more important than everyone else’s losses, then yes, it’s safe to say you are a cheapskate.

How Does a Cheapskate Differ from a Frugal Person?

Cheapskates want, at all costs, to keep cash in their own wallets and bank accounts. Frugal people, on the other hand, think calmly and clearly about how to spend mindfully.

A cheapskate might go out to dinner with friends and “forget” to bring his money to chip in. A frugal person might suggest the group goes to a mid-priced restaurant (not one with $15 cocktails), and make other careful choices. Then, at the end of the month, they may have enough money for something meaningful, such as a soup kitchen donation or a lavish Mother’s Day experience for Mom and Grandma.

A frugal person tries not to waste money on frivolous purchases but also has a sense of generosity. Guess who’s more fun to be around?

15 Signs You Are Being a Cheap Person

A few examples of being a cheapskate were mentioned above. Here, we’ll dig into signs of a cheap person in more detail. Watch for these red flags in the game of life. No one wants to be bad with money, but taking scrimping and saving too far can also be an issue.

1. Letting DIY Turn into BIY (Break It Yourself)

Unless you’re an expert, taking the DIY route on repairs can be a sign you are cheap. These fixes are often bad and flimsy, leaving you with leakier pipes or unsafe wiring. Reputable professionals may charge a lot but will stand by their work.

For example, if you go the cheap way and try to fix a car problem by watching a YouTube video before taking a road trip, you could find yourself paying dearly for it. If the vehicle winds up breaking down, it will throw a wrench in your plans and cost you time and money as you get towed, pay for repairs, and have to Uber around while waiting for your car to be road-ready again.

2. Sneaking Refreshments Into Movies

Some people do bring their own snacks due to health reasons. But if you have to sneak something in under cover, it’s probably dishonest. Do you feel guilty spending $7 on a small pack of candy? Yes, it’s cheaper elsewhere, but going to the movies is a little splurge, and the treats are part of the fun. It’s also partly how the theaters stay in business.

While many movie theaters allow patrons to enter with their own beverages, that doesn’t mean you should bring all your bffs and not spend a penny on refreshments.

Recommended: Why Do People Feel Guilty After Spending Money?

3. Hoarding at Home

Many people hoard because they don’t want to part with things that might be valuable. But how many samples of shampoos and makeup, t-shirts, skeins of yarn (in case you take up knitting), Christmas ornaments, and reusable water bottles can you keep? Letting go can be freeing and it feels even better if you donate items to charities that will sell them and give them a second life.

4. Stockpiling Condiments

The 2021 pandemic-drive ketchup shortage led to people selling Heinz packets on eBay for a profit. But it’s cheap behavior to squirrel bagfuls away in your cabinet. Will you ever use them? The same holds true for sugar, soy sauce, and salt and pepper packets. Snagging them for free and hoarding them can be a sign you are a cheapskate.

5. Reusing Paper Goods

Some people save paper cups that still look pretty clean and recycle soiled paper towels for another chore. But that’s a cheapskate way of living that likely doesn’t save you much. Better to buy recycled paper products to help save energy, water, and trees. Get dishwasher-safe, reusable party plates; they are sturdy enough to hold large pizza slices and the like.

6. Doing Only Free Activities

Free activities are wonderful and a part of a smart, frugal lifestyle. But cheapskates take this to extremes and only want to go somewhere if it doesn’t cost money. This limits their plans accordingly. For instance, if you only go to the beach after 5 pm, when there are no entrance fees, you will never experience a classic sunny day. Plus, there probably aren’t any lifeguards on duty.

In life, balance is best. There’s no sense being miserly vs. having fun and staying safe. Paying the fee to visit, say, a beach or a majestic national park could provide a view worth a million bucks and a lifetime of great memories.

Recommended: Ways to Be a Frugal Traveler

7. Being Nosy about Other People’s Money

Cheapskates dwell on what other people spend, gossiping about or criticizing their purchases, such as a designer handbag or resort vacation. But maybe the buyer is a frugal person who has a solid money mindset and saved for a year to afford those nice things. Frugal does not mean cheap, and judging others’ spending can say more about your own financial habits than theirs.

💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.

8. Always Snagging Leftovers

It’s one thing to take home the restaurant meal you couldn’t finish but another to make off with the leftover shrimp at a friend’s party. If the host invites you to take some food, great. But don’t push it. You are a guest, after all.

It’s also a classic cheapskate move to take back anything you brought that wasn’t entirely devoured. If you brought two bottles of wine and only one was opened, the other one stays put, as a gift to your host for welcoming guests.

9. Saving Almost Spoiled Food

Many people look for ways to save money on food. But safety comes first. No matter how expensive that deli meat was, if it’s past the date that tells you it’s safe to consume, throw it out. That’s a risk we take when we buy food, from fresh produce to chicken: Use it or lose it. If yogurt or cheese grows a layer of mold, out it goes. Only an ultracheap person would cling to it, eat it, and risk their health.

If you’re not sure how long food stays safe in the fridge, open a tab and search. There are many sites that share the full details.

10. Regifting Thoughtlessly

It’s okay to pass along (with honesty) a gift you cannot use or that doesn’t suit your needs, such as a pound of rocky road fudge when you’re avoiding sugar or a sweater that’s not your color. But it’s hurtful to wrap up something you have around, like an extra college sweatshirt or a set of mugs, and pass them off to a friend or relative as a new gift. That’s just plain cheap.

11. Buying Cheap Quality

If you buy cheaply made clothing, it will likely fray, fade, and fall apart way before good quality items do. Same with ultra low-priced bedding and towels. Likewise, if you invest in a good pair of shoes, they will stand up to new heels, soles, and repeated polishing. A cheap pair won’t go the distance.

Keep in mind that the same holds true with household purchases: Cookware with a rock-bottom price tag is likely to disappoint you, and the same may hold true with furnishings. Read reviews before you buy, and snag a good-quality item that’s a little pricier but more reliable.

Recommended: Guide to Practicing Financial Self-Care

12. Depriving Others While You Amass Money

Another sign you are a cheapskate can be that you are totally focused on your own wealth management and never help others. Maybe a miser could make a payment to help a cousin or niece with a heavy student loan debt. That kind of money magic fills the heart of the giver and the recipient. Being selfishly cheap just leaves you with a heart tightened like a fist.

Recommended: Common Money Fights

13. Haggling Over Every Transaction

Bargaining nonstop can make everyone uncomfortable, except the cheapskate. The salesperson, other customers, and especially the cheapskate’s friends and family who are present may want to vanish.

There are times and places where haggling is appropriate and can improve your financial life. Overstepping those boundaries can be a sign you are a cheapskate.

14. Helping Yourself to Office Supplies

It’s one thing to take a pad personalized with your name or a paperweight that was a gift from the boss. But it’s another to stock your home office or a kid’s back-to-school list from the office supply closet. Just don’t. It’s veering into stealing.

Same goes for taking condiments and coffee supplies from the staff break room or raiding the bathroom for toilet paper so you don’t have to buy any.

Recommended: 17 Ways to Make Financial Freedom a Reality

15. Being a Bad Tipper

This may be the most obvious and most common sign of a cheapskate. They look for any reason to reduce the gratuity after a meal, from too few sugar packets on the table to the entree arriving too quickly or too slowly. Waiters and waitresses often manage many tables and make a low hourly wage. They count on tips to bring up their earnings.

If the food and/or service is awful, it makes sense that the tip would reflect that. But for a typical meal with perhaps a tiny glitch, not leaving a tip can be a giveaway that someone is a miser.

Tips to Avoid Being a Cheapskate

Try to remember this advice next time you feel your inner cheapskate emerging.

•   Give yourself a fun budget: Find a little breathing room in your budget for things that bring you pleasure even if they are not great bargains. Maybe a fancy coffee on Friday mornings, to end the work week on a high note, can be a nice self-reward.

•   Shift your focus from cash. Consider rewards that have no set price attached to them. That means enjoying a movie plus popcorn with your best friend. Or the smile on your mother’s face when you bring her flowers.

•   Set up a separate bank account for generosity. Put a certain amount of money in every week, even just $50 or $10 can make a difference. Then, at the end of the month, do something kind for someone. This can help offset any cheapskate tendencies.

•   If you are dining out or getting coffee, build extra bucks into your budget ahead of time for the tip.

•   Instead of clinging to your money, think about how hard behind-the-scenes people work. The staffers who put out the free hotel breakfast buffet, the shampoo girl at the salon: Appreciating their work with a tip goes a long way to make both you and them feel better.

The Takeaway

Knowing the difference between being a cheapskate and being frugal is an important life lesson. The former leans toward miserly and is unpleasant to be around, while the frugal person usually spends mindfully and can afford to be generous in meaningful ways.

When you understand the signs of being cheap, you can likely stop yourself and become better at a healthy financial mindset. It’s not just “mine, mine, mine,” but sometimes “yours, mine, and ours.”

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Are there benefits to being a cheapskate?

A true cheapskate may be able to reach financial goals, which is a benefit. But they might be so focused on saving that they cannot enjoy life. They are likely so busy not spending that they don’t know how to give back, chip in, be honest, and have fun with loved ones.

Is being cheap a personality trait?

Being cheap can be a personality trait, but it need not be a permanent one. It could be a habit developed because you grew up poor and wished for more money or possessions or it can stem from other insecurities. It’s possible to change this behavior if you become more aware of it and are motivated to be less stingy.

How do you deal with cheap people?

If you value the person and your relationship with them, do your best not to argue with them. That is unlikely to get them to spend more freely. Set expectations on get-togethers early; if something sounds too pricey for them, make another, less expensive plan. Avoid those situations that are likely to provide a forum for their cheap tendences.

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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK1022014

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Underwriters are a bit like jurors: They soberly weigh the evidence and render a verdict. Unlike jurors, underwriters sometimes reach out to those they are, well, judging to add information, clarify a matter, or otherwise help the case for mortgage approval.

If it’s a “yes” to the address, underwriting has found that you’re fiscally fit enough to take on a mortgage and that it’s a manageable size.

By learning about underwriting, you’ll be prepared for the document-gathering and hurdles ahead.

What Does an Underwriter Do?

Underwriters protect a bank, credit union, or mortgage company by making sure that they only give loan approval to aspiring homeowners who have a good chance of paying the lender back.

Here are some of their tasks:

•   Verify documents and financial information and make sure that enough savings exist to supplement income or contribute toward the down payment.

•   Check an applicant’s credit score and history and note any bankruptcies, late payments, a lot of debt, or other red flags.

•   Calculate the debt-to-income ratio by adding up monthly debt payments and dividing that number by monthly pretax income.

•   Request additional documents and ask questions if necessary. For example, if a homebuyer has had more than one job over the past year and their income is not consistent, an underwriter may want to see more assets.

What Is the Underwriting Process?

The mortgage-seeking journey is a winding path that eventually arrives at the underwriter.

Automated underwriting may approve your loan application, though a human underwriter will verify your application and documentation. If the software refers your application to manual underwriting, that’s usually a slower process.

Here are common steps leading to underwriting:

1. Explore your budget. Prequalifying for a mortgage is a quick act that will provide a ballpark figure, based on self-reported financial info. And you can employ a home affordability calculator to get a feel for your top price.

Think, too, about lender questions you’ll have during the mortgage process.

2. Get preapproved for a loan. Shop around for the best deal, and best-fitting loan, with a mortgage broker or direct lender.

This is the time to submit documentation of your income, employment, assets, and debts and allow a hard pull of your credit scores. What credit score is needed to buy a house? Much depends on whether you plan to use a conventional or government-backed mortgage loan (an FHA loan is especially more lenient).

A mortgage preapproval letter, often good for 30 to 90 days, indicates the lender’s willingness to lend you a particular amount at a tentative or locked interest rate. A preapproval letter also allows a buyer to act quickly in a seller’s market.

3. Go house hunting. You find a home that meets your needs, and agree on a price.

4. Apply for the loan. You may choose one of the lenders you gained preapproval from, or another lender, to apply for the mortgage. You’ll receive a loan estimate within three business days from each lender you apply with.

If you go with one of the former, you submitted documents in order to get preapproved. Still, the lender will likely ask for further documentation now that you’re ready to act on a purchase, and will take another look at your credit.

5. Wait for the underwriting verdict. A loan processor will confirm your information, and then it’s time for the underwriter to review your credit scores and history, employment history, income, debts, assets, and mortgage amount.

The underwriter will order an appraisal of the chosen property and get a copy of the title insurance, which shows that there are no liens or judgments. Finally, the underwriter will consider your down payment.

Then comes the decision: approved, suspended (more documentation is needed), or denied.

Required Information for Underwriting

Lenders are going to request a lot of documents from mortgage loan applicants.

Income verification. The lender will want to see W-2s from the past two years, your two most recent bank statements, and two most recent pay stubs. Those who are self-employed will need to document stable work and payments and ideally have a business website. Applicants will typically need to show evidence of at least two years of self-employment income in the same field.

Any additional income. Pension, Social Security, alimony, dividends, and the like all count.

Proof of assets. This can include checking and savings accounts, real estate, retirement savings, and personal property. A lender might want to see that a down payment and closing costs have been in an applicant’s account for a while.

Debts. Your debt-to-income ratio matters greatly, so list all monthly debt payments, each creditor’s name and address, account numbers, loan balances, and minimum payment amounts.

Gift letter. If you’ve received money from a family member or another person to put toward the house, the lender will request a gift letter for the mortgage and proof of that funding in your account.

Rent payments. Renters will likely need to show evidence of payments for the past 12 months and give contact information for landlords for two years.

How Long Does Underwriting Take?

Underwriting may take a couple of days to more than a week. It all depends on how complicated someone’s finances are and how busy an underwriter is.

Thankfully, underwriters typically do everything online these days, so an applicant can upload documents to a website or simply email them.

How Can I Improve My Chance of Approval?

Before applicants try to get a mortgage, they can take a number of steps to improve their chances of getting approved.

Lighten the debt load. It’s critical to pay off as much debt as possible and to try to keep your credit utilization ratio below 30%, though some lenders like to see a ratio below 25%.

Applicants can pay off debt faster by making a budget, using cash instead of credit cards to make purchases, and negotiating interest rates with creditors.

Look at credit reports. Applicants should also scour their credit reports and fix any mistakes so that their score is as high as possible. Federal law guarantees the right to access credit reports from each of the three major credit bureaus annually for free.

The reports show only credit history, not credit scores. There are ways to monitor your credit scores and track your money at no cost.

Attempt to boost income. Applicants may want to apply for higher-paying jobs or get to know the benefits of a side hustle so they can save more money.

Ask for a gift or loan partner. You could also ask a family member for a gift to put toward the down payment, or you could ask a relative with a stable credit history and income if they would apply for the loan as a co-borrower or cosigner.

With an underwriter extending a hand, a solution may be found that leads to approval.

The Takeaway

Ready to apply for a mortgage? Prepare for a probing look at your private life — the financial one — by an underwriter, who is gauging the risk of lending you a bundle of money. The underwriter looks at a homebuyer’s finances and history, the loan amount, and the chosen property and renders a verdict.

Mortgage shoppers should add SoFi home loans to their list. Why? Click on the link to see all the life-enhancing perks.

And then find your rate in just minutes.

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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.

SOHL0922014

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Inflation, or a rise in prices and decrease in buying power, is hitting American families hard. Rates have been spiking for months and currently stands at 7.7%. When it will slow down is anybody’s guess. This makes it increasingly difficult to afford necessities like food, transportation, and housing. Put simply, when inflation is escalating, your dollar buys less than it did in the past.

How much of an impact has inflation had on the U.S. and where is it at its worst? A report from the Joint Economic Committee provides up-to-date data as of July 2022 on how much prices have changed for everyday items, for an average family, in each state since January 2021.

This information can help you make informed decisions about your spending and your future. If you’re living in a state with surging inflation, you may want to pay special attention to balancing your budget so you don’t wind up depleting your emergency savings or ringing up credit card debt.

According to the report, these are the 25 states with the highest inflation rates over the year reviewed, arranged in descending order, with the steepest figure at the top. They are ranked by the impact on monthly spending in dollars vs. the percent of inflation.

Read on to see if your state made the list.

25 Highest Inflation Rates by State

1. Washington D.C.

OK, it’s not technically a state, it’s a district, but our nation’s capital tops the list of locations feeling the impact of inflation. With an inflation rate of 13.9%, DC saw a monthly uptick in expenses due to inflation at an eye-watering $1,037 in the year studied. That kind of impact can certainly give a household reason to take a fresh look at making a budget and perhaps even consider moving to a less expensive area.

2. Colorado

There are several main causes of inflation, and they seem to have conspired to raise prices in Colorado. There, the cost of living has increased by a staggering 15.4% since January 2021. This means that the average household in the state will spend about $937 more this year than last year. The main driver of this inflation is transportation costs, representing an increase of $410/mo.

3. Utah

In Utah, inflation has been rising, with the total inflation up 15.4% or $910 per month for the average family. While this may not seem like a lot if you earn a high salary, that kind of price hike can significantly impact residents, particularly those on a fixed income.

4. Arizona

Arizona has seen a significant increase in inflation over the past year, with prices rising by $833. This figure represents a significant burden for residents and may well encourage them to find ways to save money daily.

While the cost of living in Arizona is still relatively low compared to other states, the increasing cost of goods and services puts pressure on households as the prices have increased at what is among the highest rate in the United States, a challenging 15.4%.

5. Nevada

Inflation has been rising by 15.4% in Nevada, with families now shelling out an average of $831 more per month than in January 2021. Rising energy and transportation costs seem to be fueling this surge.

Additionally, many goods and services have become more expensive as businesses attempt to offset their own rising costs. This has decreased purchasing power for Nevada residents, making them adjust their budgets and spending habits to keep up with inflation.

Although it can be challenging to cope with rising costs, it’s important to remember that there are pros and cons of inflation. It is a natural part of the economy and will continue to fluctuate over time.

6. Minnesota

Life has gotten considerably more expensive in Minnesota. With inflation soaring 13.8% over a recent year, residents are shelling out $831 more just to keep up.

With this kind of price trajectory, it can be worthwhile to consider whether to pay down debt or save money when trying to make ends meet. When your money doesn’t go as far, you need to be smart about prioritizing your available funds.

7. Wyoming

Average monthly expenses in Wyoming hiked up $812 a month as of July 2022, compared with January 2021, putting it the seventh highest position on the ranking of U.S. states.

The main drivers behind this increase have been higher transportation, energy, and housing costs. These factors can put a strain on Wyoming households already struggling to make ends meet and can also leave other families with less disposable income to put towards long-term money goals, such as investing for retirement.

8. California

America’s most populous state with more than 39 million residents, California clocks in as the 8th most inflationary state in the nation. Residents paid an average of $794 in monthly expenses in July 2022 vs. January 2021. That’s a lot of people feeling the pinch at the gas pump, supermarket, and elsewhere.

9. Alaska

Our northernmost state has experienced intense inflation over the past year or so. The average Alaskan household is now spending 12.5% more, which equals an additional $790 per month. Of that figure, $345 went to rising transportation costs and $197 towards energy costs.

10. Montana

Inflation in Montana is up 15.4 percent, or $790 per month for the average family, which puts the state in the number 10 position of states being hit hardest by rising prices.

When dealing with this kind of pressure on your income, it may be wise to think about bringing in more income. That’s one of the benefits of a side hustle and can help make ends meet when prices zoom upward.

11. Illinois

The cost of living in Illinois has been increasing steadily over the past few years; between January of 2021 and July of 2022, the typical household is shelling out $787 more per month to pay for the same expenses. That reflects rising costs of housing, energy, and transportation, among other factors, to the tune of 14.1%.

If you are grappling with the impact of inflation and feel as if you can’t keep up with bills, especially credit card charges with their high interest rates, you might consider a balance transfer credit card. These can give you a reprieve from high interest rates for a period of time, which may help you pay down your debt.

12. Florida

Since January 2021, inflation has increased significantly in Florida, with the average Sunshine State household paying $784 more every month to maintain their standard of living. This is a significant increase of 13.9% and can certainly have an impact on how far one can stretch a salary.

If you’re a Floridian looking for ways to enhance your income, you might consider downsizing some of your gently used possessions (clothing, electronics, etc.); there are many options for places to sell your stuff that’s no longer wanted.

13. Maryland

Brace yourself, Marylanders: You’re paying $774 more for your living expenses over the past year and change. That represents inflation of 13.9%, and it can certainly stress a budget.

If you’re residing in Maryland, now might be a good time to review your outflow of cash and see where you might economize. How many streaming platforms do you have vs. really need? How many fancy coffees and take-out dinners are you paying for? A bit of belt-tightening can help bring expenses back under control

14. Hawaii

While the rate of inflation in Hawaii is “only” 12.5% currently, the fact that the Aloha state has such a high cost of living to start with means it’s number 14 on the list. Every month, inflation has lifted household costs on an average of $768.

15. Idaho

Next up is Idaho, a state that has been hard hit by inflation. Prices have increased by 15.4%, or $763 per month for the average household. This spike reflects a combination of factors, including the state’s growing population, which is driving up demand for goods and services.

16. Delaware

In Delaware, the average family is paying $760 more per month for their expenses than in January 2021, representing an uptick of 13.9%. With rising gas prices and housing costs, many families may have to slash their budgets. When doing so, it’s worthwhile to research tips to hedge against inflation.

17. North Dakota

If you live in North Dakota, you’ve likely felt the pinch over the past year and change as inflation has zoomed up 13.8%. For the average family in the state, that means they are spending $760 more per month to make ends meet and pay their bills.

18. South Dakota

Right behind its neighbor to the north comes South Dakota. Here, prices have also ticked up 13.8%, resulting in $759 more being paid out per average household. That’s a whole lot more money for most families to come up with.

If you live in South Dakota or elsewhere and feel stretched too thin, it can be wise to look into how to pay off outstanding debt and open up some breathing room in your budget.

19. Nebraska

Things have gotten pricier in the Cornhusker state: With an inflation rate of 13.8%, the typical household is shelling out an additional $754 a month in July 2022 vs. January 2021. That’s a steep increase and could inspire a person to look for a low-cost side hustle to bring in some additional income.

20. Texas

Inflation has been on the rise in Texas, with the total inflation coming in at 14.8%. If you’re a Texan, that means you are likely needing to come up with an extra $747 per month to make ends meet. Every time you fill your vehicle’s gas tank and pay your energy bill, you may well realize that the amount is significantly higher than before.

21. Virginia

Inflation is a significant problem in Virginia. Prices have ratchet up by 13.9% since January 2021. This means, for instance, that $20 buys less gas than it used to, and residents’ grocery bills are likely to be noticeably higher since they aren’t protected from inflation. It may be a struggle to make ends meet as the average household is forced to come up with an additional $741 per month to cover their expenses.

22. Missouri

Missouri comes in at number 22 on the list of states feeling the impact of inflation. With the inflation rate hitting 13.8%, that means a typical family has to shell out $737 more per month to buy the same goods and services vs. January of 2021.

That can put a tremendous amount of stress on one’s pocketbook. This can be a good moment to review discretionary spending and look for easy ways to save money.

23. Kansas

The next hardest-hit state in terms of inflation is Kansas, according to the Senate’s Joint Economic Committee. The rate of prices rising is 13.8%, with the average household needing to spend $730 per month more to afford the same expenses as in January of 2021. Whether purchasing food or gas, paying rent or the energy bill, costs are rising at a notably high rate.

24. Massachusetts

While the rate of inflation is “only” 10.7% in Massachusetts, that calculates as a $726 expense hike for the typical family, which is significant.

To push back against inflation, you might consider trying to lower some bills. Perhaps you can get your credit card interest rate taken down a notch or negotiate your medical bills to help bring costs under control. It never hurts to inquire and could help you reap savings.

25. New Mexico

Inflation has increased in New Mexico by a significant 15.4%. This represents an average of $720 in additional monthly spending for the average household. The main reason for this price hike lies in the rising cost of energy and transportation.

The Takeaway

Inflation has been in the news over the past year or so, and for good reason: It’s making life more expensive for Americans. Some states have been hit harder than others by this inflation, which means certain households are shelling out even more than others for the same typical monthly necessities, like housing, utilities, food, and transportation. This article shows whether your state lands in the top half of locations most impacted by inflation.

Regardless of where you live, you probably are grappling with the impact of inflation. One way you can push back is with the right banking partner. When you open an online bank account with SoFi, you’ll earn a hyper competitive APY and pay no account fees, which can help your money grow faster so you can pay those bills. Plus, with our Checking and Savings, you can spend and save in one convenient place.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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A mining pool is a collection of miners who pool their resources and share the rewards of mining a proof-of-work (PoW) cryptocurrency like Dogecoin (DOGE).

Individual miners receive a portion of block rewards in proportion to how much hashing power they contribute.

Miners may earn less overall when mining in a pool vs. solo mining, in which an individual tries to solve for a block on their own, using significant time and computing power. But they receive rewards on a more consistent basis and can maintain a profitable operation, even with smaller amounts of computing power.

💡 Recommended: Is Crypto Mining Still Profitable in 2022?

How Does Dogecoin Mining Work?

In order to understand Dogecoin mining and Dogecoin pool mining, it’s important to remember the qualities that distinguish DOGE among the other types of crypto.

What Is DOGE?

Dogecoin (pronounced dohj-coin), or DOGE, is widely known as the first joke cryptocurrency. It was launched in 2013 as a way to poke fun at Bitcoin. Nonetheless, the currency captured people’s attention and a fair amount of investment.

Dogecoin is an altcoin similar to Bitcoin and Ethereum in that it runs on a blockchain network using a PoW system. But the number of coins that can be mined are unlimited (versus the 21 million-coin cap on Bitcoin).

Despite its place as one of the biggest coins by market cap, DOGE trades at one of the lowest prices: $0.084 cents, as of November 18, 2022.

Understanding Dogecoin Mining

Dogecoin mining works in much the same way that mining any other PoW cryptocurrency works. Dogecoin is based off of Litecoin, which forked from the original Bitcoin source code.

The main difference between Bitcoin (BTC) and Dogecoin (DOGE) or Litecoin (LTC) is that the latter two are altcoins that use a mining algorithm known as Scrypt. Bitcoin mining, by contrast, uses an algorithm called SHA-256. Scrypt allows for faster block confirmation times, which means faster transaction times.

Here’s a quick guide to crypto basics and how the mining process works.

•   A blockchain is a type of distributed ledger technology (DLT).

•   Blockchain networks are the highways on which cryptocurrencies travel.

•   The computers that maintain a blockchain network are called “nodes.”

•   Some nodes can add new blocks of transactions to the network and gain rewards. These nodes are called “miners.”

•   Miners solve complex mathematical problems to process transactions and achieve consensus on the network, ensuring everyone agrees which transactions are valid.

💡 Recommended: How Does Bitcoin Mining Work?

Like gold mining, mining for crypto requires time and energy, whether you’re mining Bitcoin or an altcoin like Dogecoin or Litecoin. But unlike gold mining, computers do all the work in crypto mining. Individuals set up their mining rigs (powerful computer systems) and monitor the process. For some, mining cryptocurrency offers an opportunity to obtain cryptocurrency without buying it on an exchange.

How Do You Pool Mine Dogecoin (DOGE)?

To participate in a Dogecoin mining pool, you must have a crypto wallet that’s compatible with DOGE, and all the necessary hardware and software for mining.

Using a pool involves one extra step: telling the miners where to “point” their hashing power. This typically involves entering a single line of computer code into the mining software. The mining pool will provide the specific command, likely somewhere on its website or in the software itself.

Dogecoin Mining Equipment

Crypto mining requires sophisticated and powerful computers known as Application-Specific Integrated Circuits (ASICs). In the case of Dogecoin mining hardware, the ASIC must be specifically designed to run the Scrypt algorithm.

While there might be some pools that allow users to use SHA-256 ASICs, contribute that hashing power to the pool, and take rewards in DOGE, those interested in mining DOGE specifically should stick to Scrypt ASICs.

ASICs take so much electricity that even smaller miners usually require a special power supply to connect to an electrical outlet. They also generate considerable heat, and miners must keep them cool to prevent damage.

In addition to the ASICs and their power supplies, miners will need a laptop or desktop computer. Running the Dogecoin mining software can take a considerable amount of central processing unit (CPU) or graphic processing unit (GPU) power, so that computer probably won’t be able to do much else while the mining is happening.

💡 Recommended: What Is a Bitcoin Mining Pool? Should You Join One?

Pool Mining vs Solo Mining Dogecoin

Before you decide whether you want to pool mine or solo mine DOGE, you want to weigh the pros and cons.

The benefit of mining solo is that 100% of the block reward will go directly to you. But it could be weeks or months before you find a block because there is so much competition.

Most miners choose to join a mining pool. Pool miners receive rewards in proportion to the amount of hashing power they contribute. However, they also have to pay a small fee in exchange for using the pool.

Pros and Cons of Pool Mining	Pros and Cons of Solo Mining
Doesn’t require as much computing power.	Requires a lot of computing power & energy.
Earn rewards proportional to your hashing power.	100% of the mining reward goes to you.
Easier to join a pool than find a block to mine.	Can be hard to find a block to mine.
Must pay pool mining fees, which eat into profits.	Overall costs of solo mining are quite high, which can eat into profits.

Using a Pool to Mine Multiple Coins

Some mining pools mine multiple cryptocurrencies. This allows the pool to switch its mining activities should mining a different coin become more popular depending on the constantly changing variables of price and difficulty.

For example, some pools mine both Dogecoin and Litecoin since both rely on the same mining algorithm. If such a pool’s miners were focused on Dogecoin but the price of DOGE stagnates, it could become harder to mine DOGE due to difficulty increases, meaning reduced profits for miners absent a rise in DOGE. Then they could switch to Litecoin.

Dogecoin Cloud Mining

Mining via the cloud is another option, and you won’t need physical hardware or software. Cloud mining DOGE involves buying a contract for a certain amount of hashing power over a certain amount of time. Essentially, you’re renting computing power from someone else.

Be careful, there have been many cloud mining scams over the years.

How to Join a Dogecoin Mining Pool

Other than the above, most mining pools don’t have any special requirements for joining. They want to make it as easy as possible for new miners to contribute because they take a small fee from each block reward. The more miners in the pool, the more often the pool finds new blocks, and the more fees the pool will generate.

Mining pools often have instructions on their website that teach new miners how to join. It usually involves little more than entering a line of code into a mining program. Computers handle the rest.

Here is a rundown of the steps that an individual will take when joining a mining pool:

Step 1: Obtain the necessary hardware. As noted above, joining a mining pool may require less sophisticated equipment than solo mining.

Step 2: Select a Dogecoin mining pool to join (more in the next section).

Step 3: Download and install the software from the pool’s official site.

Step 4: Set up a DOGE crypto wallet and enter the address into the software (so the software knows where to send the new coins.

How to Find the Best Dogecoin Mining Pool

To choose the best Dogecoin mining pool for you, consider the following factors:

Fees and Costs

Because mining cryptocurrency comes with a significant investment of time and money, miners will want to choose a pool that earns them the greatest profit. That involves a pool with the lowest fees and most equitable reward structure. The biggest Dogecoin pool may or may not be the best, as there are other factors to consider.

For example, the Dogecoin mining pool power cost is also important to consider. Mining requires cheap electricity to be profitable, and for miners to make more money.

In addition, the mining pool itself will charge a fee, maybe 0.5% to 4% of the reward. You’ll want to compare the fees charged by different pools.

Reward Distribution

The reward for each block of transactions is 10,000 DOGE, and it’s split among the mining pool members, in proportion to the hashing power that member contributed to the mining pool. For that reason, computing power does matter when you join a mining pool.

The bigger the pool, the more consistent your rewards will be. So while you might be able to score 10,000 DOGE per month as a solo miner, you could earn the same amount in smaller chunks when you join a mining pool.

Hashing Power

You want a pool with a high combined hashrate. That’s more important than the overall size of the pool. But the size of the pool is also an indicator of how trustworthy/secure it is.

The more hashing power you contribute, the bigger your share of the rewards will be. Hashing power is a function of computing power, so it’s something to consider as you invest in your rig, or cloud mining.

Server Locations

In theory, it may be smarter to join a pool with servers on the same continent, in terms of hash rate needed. Proximity to servers may enhance your rewards.

Security

The security of the mining pool is obviously critical, and there are various aspects to consider. First, you want to ensure that the pool is transparent about its hashrate and payout structures. Does the pool have a real-time dashboard of activity that you can review?

Stability is also important. Does the pool have a lot of down time, which can impact your ability to mine as well as potential profits.

5 Popular Dogecoin Mining Pools

While there are many Dogecoin mining pools, some are more popular. Remember that the number of coins mined is correlated with the pool’s computing power. A larger pool may equal more computing power, but not necessarily. A smaller pool running more high-powered computers would outperform a larger pool with older networks.

1. Aikapool

One of the oldest mining pools, Aikapool doesn’t charge a fee and there are no withdrawal limits. The payout is PROP, or proportional to your hash rate.

2. Prohashing

The Prohashing pool is one of the largest pools and it’s notable for paying in DOGE, vs. converting rewards to BTC or LTC.

3. Multipool

Multipool allows you to mine for more than one type of crypto at once, sometimes called merge mining. So you can mine DOGE and LTC, for example. Multipool charges a fee of about 0.25%.

4. 1CoinPool

1CoinPool has a transparent fee structure, and pays according to the PPS (proportional pay per share, where you get a fixed amount per work submitted). 1CoinPoll operates two mining pools – Litecoin and Dogecoin. Also, there are no fees for withdrawals. This means that the miners are rewarded proportionally as per the hashing power. Furthermore, the coins get automatically added to the wallet.

5. LitecoinPool

Litecoin also has a transparent reward system (PPS), and doesn’t charge fees, including no withdrawal fees.

The Takeaway

Cryptocurrency mining is not an easy task, and won’t be profitable for most people most of the time. All the right variables must align for an individual to make money mining in most instances. Many take up mining as a hobby and as a way to build a small crypto portfolio while contributing to the livelihood of the network of a particular coin.

FAQ

Can Dogecoin still be mined in 2022?

Yes. Despite the ongoing volatility in the crypto markets, mining for many types of crypto continues. There are both solo Dogecoin miners and pool miners still active today.

How long does mining 1 Dogecoin take?

You can’t really mine 1 DOGE, because the rewards for mining a block is 10,000 DOGE. Given that it takes about a minute to mine a block of Dogecoin, depending on your equipment and the size of your mining pool, that’s roughly what it would take to obtain 1 DOGE.

How much Dogecoin could you mine in just 1 day?

Again, it depends on the number of blocks you have access to — either as a solo miner or as a pool miner — and how much hashing power you have. The supply of DOGE is unlimited, but you can only earn 10,000 DOGE per block of transactions that are confirmed.

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Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

²Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount		Bonus Payout
Low	High
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

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