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Sometimes, no matter how careful you are with your bank account, you may want to cancel an ACH payment, and fortunately, it is very often possible to do so. Even if you previously sent out a recurring automatic payment, you can hit the brakes on that transaction.

Many of us have learned to rely on ACH payments, which can be used for a business’s payroll, tax payments, bill payments, account transfers, and more. You may well pay many of your monthly bills this way, from your utilities to your streaming service subscription. Because of this popularity, consumers and businesses alike can benefit from understanding how ACH works. Beyond that, knowing how to halt a payment — one that could potentially derail your financial health — is vital, too.

With that in mind, here is what you need to know about:

•   What ACH payments are

•   How to stop ACH payments or cancel an ACH payment

•   How to reverse an ACH payment

•   How to spot common ACH frauds

Recommended: What is Liquid Net Worth

What Are ACH Payments?

ACH payments are a method of money transfer between banks made through the ACH or Automated Clearing House network. NACHA (National Automated Clearing House Association) governs these transactions, which can be an alternative to other payment options, like credit cards.

With ACH, the source of the funds come directly from a bank account. So they are quite seamless and convenient; no paper checks or postage stamps required. They are also open to both consumers and businesses alike as long as they have a U.S. bank account.

One downside of ACH transfers, though, is that they can take longer than options like a wire transfer. When you compare a wire transfer vs. an ACH payment, wired funds can transfer within a day. In terms of how long an ACH payment takes, it may be several days. However, ACH has the upper hand in terms of cost: They are generally less expensive than other payment processing methods and often free.

ACH payments can break down into two categories: ACH credit and ACH debit.

An ACH credit is like a virtual check. The payer tells the ACH network to transfer their account funds to the payee’s account. In contrast, ACH debit (the more popular version of ACH transfer) involves a recipient pulling funds from the payer’s account. (For instance, this kind of payment occurs when you authorize your car loan to be automatically debited on a certain day of each month.) Merchants often prefer this kind of automatic debiting as it reduces the possibility of late or failed payments.

Can ACH Payments Be Canceled or Returned?

So, let’s say you just moved and forgot to cancel your gym membership at your old location. You realize that a payment is about to be sent out. Or maybe you set up a one-time payment to a vendor but notice (oops!) that you typo’d the amount? Now what? Can you stop an ACH payment from a checking account or other bank account?

Breathe a sigh of relief. Yes, you can cancel or return an ACH payment. This is partially possible due to the time frame of ACH transfers. ACH transfers can take multiple days to settle, and, as a result, you have more time to stop or reverse your transaction.

However, rules can vary depending on your bank or financial institution. For example, some may be able to cancel an ACH transfer online or over the phone. Meanwhile, other institutions may require a written form requesting cancellation.

Recommended: Average Savings by Age

How to Reverse ACH Payments

Let’s look at reversing an ACH payment in a little more detail. At some point, an ACH transfer may involve a mistake. It’s easy to type in the wrong dollar amount or otherwise err when it comes to making payments without cash in hand. Regardless of the circumstances, you have to wait for the payment to go through first. Then, you can reverse the ACH payment.

Banks have different ways of conducting this process (we’ll go into more detail on this in a moment), so check with yours on the exact protocol. Once the payment is interrupted, the bank should reach out to the account holder after the payment reverses to confirm the details.

ACH Reversal Requirements

Let’s learn a little bit more about this process. NACHA, the organization that oversees ACH payments, has specific qualifications that determine if an entry is erroneous. If these details are satisfied, you are then allowed to reverse your payment without an issue. To qualify, an entry must meet one of the following conditions:

•   Be a duplicate of a previously initiated entry

•   Transferred on the wrong date

•   Include a mistake in the sender or recipient’s account number

•   Transferred the incorrect amount

These scenarios cover many of the situations that would lead you to cancel or reverse a payment.

How to Stop an ACH Payment

So you want to cancel a payment because perhaps it was sent incorrectly or you no longer want to complete the transaction? Let’s learn how to cancel an ACH payment.

In this situation, it’s actually to your benefit that ACH payments take several days to settle. This means you have some time to halt an ACH transaction if you need to. However, every bank operates differently and may have its own rules on how to stop an ACH payment. For example, you may find that your bank can cancel an ACH payment online or over the phone. But other institutions may need you to submit a physical form canceling the transaction. Check with the institution that holds your account to find out how to proceed.

You can also cancel your recurring ACH debit payments. But you have to do that within three business days before the funds are due. You will probably need to contact the entity expecting your payment. The exact method might depend on your situation. Some companies may accept a phone call, while others might need a written authorization.

After that, you’ll need to address the financial institution associated with the transfer and let them know about the change. In some cases, this may require a stop payment order which instructs the bank to hold off on any automated transaction. This gives you time to formally cancel your payment arrangement. This can come with a fee, but it varies bank by bank. Check with yours for details.

How to Update Direct Deposit Details

A quick look at the other side of the coin: Let’s say you are receiving funds by direct deposit (perhaps your paycheck or government payments), and realize you need to update your details. If you have changed bank accounts — maybe you found a high-interest online savings account you can’t resist — you’ll need to let the entity that is sending you funds know your new info. You may be able to do this online for benefits like Social Security payments; otherwise, calling the issuer of the deposit may be another option. If it’s your paycheck you’re concerned about, contact your HR department to see the best way to share your new account specifics.

You’ll probably want to do this a few days before a deposit usually hits, since ACH payments take a few days to process.

Common ACH Frauds

While the ACH network makes sending money to businesses or services fast and simple, it is not perfect. As a result, people can use the system to their advantage. It is possible for a company or consumer to face fraud when making an ACH transfer.

There are various tools at criminals’ disposal these days. But they may only need two details to commit ACH fraud: your bank routing number and your business checking account number. With this information, the criminal may be able to use your finances to pay for anything from services to goods. And they can have the additional option to make these payments either online or by phone.

Typically, fraudsters collect this information via malware and phishing emails. Web transactions are also an easy way to obtain your personal data. For example, scammers might offer you overseas money, discounted products, or other appealing lies. They hope that you will be fooled and enter your account details so they can then commit fraud.

You can protect yourself against fraud by being wary of text messages and emails asking for account verification (they may be phishing and/or have malware embedded) and taking the time to double-check, by phone or other means, requests to update your information. Your bank may also be able to place an ACH block or filter on your account to prevent unauthorized transactions. Contact your bank’s fraud prevention team to learn your options.

The Takeaway

The ACH network is a valuable payment processor that consumers and businesses in the U.S. rely on. However, situations can arise that may trigger you to want to stop or reverse a payment, such as if you had entered details incorrectly. Fortunately, it’s possible to stop ACH payments from your checking account or reverse the ACH payment. Then you can notify the others impacted and get your banking transactions back on the right track again.

Here’s another way to bank better: Check out SoFi Banking. When you open our checking and savings accounts with direct deposit, you’ll earn a competitive APY. What’s more, you won’t pay any account fees; no monthly or minimum balance charges. So you keep more of your hard-earned dough.

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

How long will it take to reverse an ACH payment?

A rejection or return of an ACH payment can usually be settled within two business days. However, some cases can take as long as two months (or 60 days) if the transaction is disputed.

Can you amend an ACH transfer?

Yes. ACH users can revoke their ACH payment authorization and stop the transfer. However, they must notify their biller as well as the bank or credit union that holds the account from which the funds would be deducted.

How do I stop ACH payments on my checking account?

If you want to stop an ACH payment, you’ll need to contact your bank at least three days before the ACH transfer’s date. This may involve an ACH payment stop request submitted in writing within a 14-day time frame. A small fee may be involved in halting the payment.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.

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.

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.

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

Photo credit: iStock/insta_photos
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If you’re a fresh arrival to the United States, you’ll be glad to know that even if you’re undocumented, opening a bank account is possible. Which is very good news; after all, taking care of bills and everyday purchases is a lot easier — not to mention safer — when your cash is safely stashed in a checking account.

However, you will have to follow certain steps and perhaps a workaround or two. Probably the most important is that you’ll just need to provide an alternative for the Social Security number you don’t have. You may well find that a Tax Identification Number, or ITIN, along with the other required identification, can get the job done.

Read on for more about how an undocumented immigrant can open a bank account and the benefits of doing so.

What Do Immigrants Need to Open a Bank Account?

Like anyone else who opens a bank account, immigrants will need to provide and verify basic identifying information, such as their name and date of birth, using government-issued identification. This requirement may be met by a driver’s license, passport, birth certificate, or consular ID — and you’ll likely need to provide two different types of identification.

In addition, you’ll need to prove your residence. This can probably be done by presenting a utility bill, lease contract, or other official statement that includes your current address.

Finally, you’ll need either a Social Security number (SSN) or Tax Identification Number (ITIN). As an immigrant, the latter may be easier to obtain.

So, to recap, to open a bank account, you’ll want to check the eligibility requirements of the financial institution to which you’re applying, but you’ll probably need:

•  Official identification documentation

•  Proof of address

•  An SSN or ITIN

•  Anything else the bank might require (such as a minimum opening deposit)

💡 Additional help: What Are All the Requirements to Open a Bank Account?

What Is an ITIN?

As just mentioned, an ITIN may be an option to an SSN at many financial institutions. You may wonder what exactly that is. Here’s the scoop: ITIN is short for Individual Taxpayer Identification Number. It’s an official form of identification that the IRS (Internal Revenue Service) issues to immigrants in order to make it possible to file taxes.

But your ITIN has other perks, too — such as allowing you to open a bank account with financial institutions that accept this form of identification instead of an SSN. These days, there are plenty of banks that fit that category, but you should always contact the bank you’re considering to verify that they’ll process an account application without an SSN.

Keep in mind, too, that you aren’t automatically issued an ITIN once you arrive in the U.S. In order to obtain one, you’ll need to apply for one with the IRS directly. You can do this by mail or in person.

How to Open a Bank Account With an ITIN Instead of a SSN

Here’s the good news: Once you have an ITIN, using it in place of an SSN to open an account should be a fairly straightforward process. At many banks, you’ll simply supply that number instead of your SSN on that part of the application. If you apply online for a bank account, the application process may take only a few minutes.

The rest of the application will involve the bank gathering documentation, accepting your opening deposit, and issuing your bank account number and debit card. The process of establishing the account may take a couple of days. In addition, you may need to wait a week or more to receive your debit card in the mail.

And then, voila: You’re the proud owner of a U.S. bank account!

Benefits of Opening a Bank Account for Undocumented Immigrants

If you’ve been doing most of your financial transactions in cash for a while, you may wonder if going through the steps it takes to open a bank account is even worth it.

For many immigrants, it definitely is. A bank account makes it safer and easier to store and use your money. What’s more, it can also help you establish history and move toward legitimizing yourself as an American resident.

Personal Safety

Carrying cash is always risky. If you accidentally drop some (which can easily happen while you’re lugging bags in one hand and a coffee in the other), it’s gone forever. That’s not to mention the risk of others eyeing your cash. Paper money is liable to theft, and carrying large amounts of cash could even put you at risk of physical violence.

Having a checking account makes it possible to store larger amounts of money with a lower risk level. You’ll still be able to access cash when you need it using an ATM or your debit card. For these reasons, opening a bank account could increase your level of physical safety as an immigrant.

Establishing History

Opening a bank account shows people that you’re here on at least a semi-permanent basis, and may even help you establish state residency. While the process of naturalization is, of course, long and complex, having a bank account can be one small step toward legitimizing your status as a U.S. resident.

Ability to Save Money

Most banks offer both checking and savings accounts—the latter of which is an excellent vehicle for building up a rainy day fund. Having a separate savings account makes it a lot easier to put some money “out of sight, out of mind” so you’re prepared for an emergency. And, of course, it’s a lot more secure than stuffing cash into a coffee can or under the mattress.

Earning Interest

In addition to being physically safer, bank accounts also give you an edge against inflation. Here’s why: Many of them make it possible to earn interest on your balances—even on a checking account. The interest you earn might be pretty low, but it’s still better than no growth at all. Plus, it’s a low-risk investment given that money in a legitimate bank account is FDIC-insured up to $250,000.

The Takeaway

While it may take a few extra steps, it’s totally possible for an undocumented immigrant to open a bank account. You may just have to apply for an ITIN to use in place of your SSN, and find a bank that accepts ITINs. But once you get that taken care of, you’ll have access to a safe, potentially interest-earning place to stash your cash.

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

How do undocumented immigrants open a bank account?

An undocumented immigrant will need an alternative to the Social Security number, or SSN, in order to open a bank account. This number is called an Individual Taxpayer Identification Number, or ITIN, and you can apply for one through the RIS. Many financial institutions will accept an ITIN in place of a SSN.

Can I open a bank account without an SSN or ITIN?

Unfortunately, you’ll likely need one or the other of these official, identifying numbers in order to open a bank account.

Can a U.S. citizen open a bank account abroad?

Yes, but it can be tricky. Many U.S. citizens have offshore bank accounts, though the process of applying for one may vary depending on which country you’re hoping to open an account in. It can involve a lot of paperwork, and starting this kind of account may have tax ramifications in both the U.S. and the foreign country in question.

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Photo credit: iStock/Bilgehan Tuzcu

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.

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.

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

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Want to know how to never pay full price for anything? There are plenty of tips and tricks that can help you get a better deal on everything from a car to a big carton of cereal.

Saving money does more than put money back in your pocket. It can truly help you feel in control of your finances, which can, in turn, help motivate you to continue building good financial habits.

If you’re interested in becoming more conscious with how you’re spending money, be sure to take a look at these 15 tips. Even the savviest shoppers are always learning new ways to save money for optimizing spending and saving habits.

Common Retail Markups

Before delving into strategies for saving money off of retail, consider how much most items are marked up for sale. While there is no set or ideal number, many businesses charge 50% more than the actual cost of the item. So if it cost a company $50 to make a sweater, they would sell it for 50% more than that, or $75.

This means that, while not optimal for their financial goals, they could sell the garment for less than $75 and still be recouping their costs, plus a profit.

Some categories of products are known for having even higher markups. Consider these:

•   Mattresses, up 900%

•   Designer jeans, up to 500%

•   Furniture, up to 400%

•   Coffee to go, up to 300%

•   Diamonds, up to 100%

Places Where the Price Is Non-Negotiable

While there isn’t a rule about where you can and can’t negotiate, you are more likely to be able to get a better price at some locations than others. For instance, bargaining is more appropriate at:

•   Flea markets

•   Car dealerships

•   Small shops

It’s less likely to be effective at:

•   Luxury retailers

•   Chain stores

•   Malls

That said, some top-notch negotiators say they have scored discounts almost anywhere. Read on for tips to help you do the same.

15 Tips to Avoid Paying Full Price for Anything

Smart shoppers often get the latest and greatest – without having to pay full price for it. These genuinely helpful tips can help you save money on anything and everything so you know how to never pay full price for anything ever again.

1. Install Browser Extensions on Your Computer or Apps on Your Phone

There are a whole host of browser extensions and apps that can save you money with minimal effort on your part. You can see cash back options, rebates, price drops, and places where you can find an item for a lower price on another website. Some examples of boosting your money saving skills this way include:

•   The Honey Extension will automatically look for and apply digital coupons and promo codes when you’re shopping online.

•   Rakuten is a rebate extension that offers cash back, coupons, and deals at more than 3,500 stores.

•   CamelCamelCamel is an Amazon price tracker that alerts you when the price drops on an item you’ve been looking to buy.

•   Booklovers alert: The Library Extension works when you’re searching for a book to buy, such as on Amazon. It’ll allow you to check the online catalog of your local library so you can save some money by borrowing a book from the library instead of buying it online.

2. Find Rebates

You’ll find rebates from many manufacturers and retailers. Order new contact lens or an electric toothbrush, and you may get $25 or $50 back. Don’t let that piece of paper (which you may have to mail back in to get your reward) wind up in the trash.

Another popular source: Your power company likely offers some type of rebate for energy-efficient appliances, air conditioners, water heaters, smart thermostats, light fixtures, and more. For example, you may be able to find a $50 rebate for an energy efficient refrigerator. Pair that with a $50 credit for recycling your old one, and you have $100 off a new fridge. Just be sure to check with your power company to make sure your appliance meets the requirements and you send in the rebate on time.

3. Buy Used or Refurbished Products

Buying used consumer items can net you substantial savings — upwards of 90% off — and sometimes you can find these things for free. Essentials for babies and kids, clothing, and home decor can be found for a fraction of their original retail price. They’re often in great shape and there’s such an abundance of used items for sale that you can be picky with what used items you buy.

Where to look? Try the following:

•   Freecycle sites

•   Local thrift shops and flea markets

•   Nextdoor and Facebook Marketplace

Buying discounted goods this way can be part of your financial freedom plan and help you find more money in your monthly budget.

4. Buy Items in the Offseason

You’ll score major discounts if you can buy things you need in the offseason. When a store is trying to make room for new inventory, you’ll see several price drops. Buying snow boots in March or swimsuits in September could save you 50% or more.

5. Redeem Credit Card Rewards for Travel, Gift Cards, and Merchandise

A great way to never pay full price on travel is to redeem credit card points for airfare, hotel stays, transportation, and other travel expenses. Some credit cards have partners (such as airlines and hotel chains) where you can transfer points and book directly with the travel provider. Other credit cards offer a simpler redemption based on the cash back rewards based on the value of what you book.

The benefit for redeeming points depends on which credit card you have, but many offer a tremendous value for the frugal traveler who never pays full price.

You may also be able to redeem cash back for gift cards. You may be surprised to see a 20% bonus for cash back you redeem for a gift card. To do a bit of the math, that means $40 in cash back becomes a $50 gift card for your favorite retailer.

Many credit cards also offer consumers the ability to use cash back or points to pay for purchases. You may have a card that offers you the ability to erase charges with the cash back you’ve earned after you receive your statement. You may see an option to pay for a purchase at checkout with your cash back or points (usually if you’re using a third-party site like PayPal). These can be a good way to avoid paying retail.

Recommended: 25 Ways to Cut Costs on a Road Trip

6. Use Coupons and Promo Codes

Not every shopper needs to be an extreme couponer to help them never pay full price. If you find something you want to buy online, for example, getting a discount may be as easy as searching online for a promo code.

Promo codes are essentially just digital coupons for the site you want to buy something from. They can help you avoid overspending money by reducing the cost of buying the product or service you need.

7. Learn the Pantry Principle

The pantry principle is when a shopper stockpiles goods bought at the lowest price. If a can of corn normally costs $1 and goes on sale for 50 cents, you buy in bulk to take advantage of that reduced price.You’ve cut your cost for corn in half for as long as you have the cans in your pantry.

The same idea can work with other non-perishable essentials. If you can buy, say, your favorite yoga pants or cleaning products on sale and in bulk, you’ll reduce your spending.

8. Shop at Warehouse Clubs and Outlet Stores

Warehouse clubs and outlet stores offer different ways to save money. Costco and Sam’s Club, for instance, focus on selling products in bulk, which can result in a decent amount of savings. Keep in mind, however, that not all products sold at a warehouse are cheaper than what you can find at other retailers, so just be sure to check your price, especially pre unit, whether that’s by the ounce or the liter. Also take advantage of discounts your membership may offer on health services, entertainment, tires and more.

Likewise, outlets can offer savings by selling overstock items from other retailers. You might find a pair of boots you’ve been coveting or a new armchair at a deep discount.

Recommended: 23 Tips on Saving Money Daily

9. Take Advantage of Birthday Deals at Certain Places

Want a free dessert? $10 off your meal? A surprise gift? Take advantage of special perks on your big day. Birthday deals abound, particularly at restaurants and certain retailers, like Sephora, Macy’s, and Petco, among others. To take advantage of a great birthday deal, you may need to sign up online in advance.

10. Look for Price Matching and Price Drop Refunds

If you’re about to make a significant purchase, do your research online first. You might find, for example, that one retailer is offering no delivery fees on refrigerators, but that they charge $75 more for the model you want than a competitor. You could see if they will match the price of the competitor in order to snag the best deal possible

Also, some retailers offer a price drop refund on items you previously purchased. This works by taking your receipt back to the retailer if the item you just bought went on sale shortly after your purchase (usually within two weeks, but the time can vary by each retailer’s policy).

Recommended: Compulsive or Impulsive Shopping: How to Combat It

11. Haggle With Sellers and Ask for Discounts

Sometimes, scoring a deal is as easy as asking for it. You can politely ask, “Is there any discount you can offer me for this?” or “Would it be possible to ask for a discount on this?” The best places to ask for a discount are the ones where there is some discretion at giving discounts, such as a seller on Facebook Marketplace, a retail manager, or even a hotel clerk.

Nevertheless, even a big-box salesperson can help you identify any current or upcoming discounts if you take a moment to inquire.

12. Wait for Sales

Eventually, most of the items you’re shopping for will go on sale, so it’s best to never pay full price for retailers that have frequent sales. Retailers will use any excuse to hold a sale. (Ever see an ad for a furniture store selling mattresses on Presidents Day?) The Gap, for instance, is known for having monthly sales with great discounts. After all, retailers know you’re more likely to spend money if you feel like you got a good deal.

13. Abandon Your Online Cart

This one is a little sneaky. Abandoning an online cart occurs when you add something to your online shopping cart but don’t actually complete your purchase. Nearly 70% of carts are abandoned by consumers. To help increase sales of abandoned shopping carts, retailers have some smart ways to get consumers to come back and finalize the purchase. Sometimes, the retailer will email you a coupon or entice you with another offer to get you to finish your purchase.

14. Sort From Low to High When Shopping

It’s common for websites to show their newest (and most expensive) products first, but if you sort your search to have the lowest-priced items shown first, you’ll likely find the things you need for less.

15. Subscribe to Email Lists or Newsletters

Many retailers offer a discount when you subscribe to their email list or newsletter for the first time. Retailers know that nearly 60% of their sales come from offering coupons or discounts. This means the discount they offer has to be good enough for a consumer to subscribe, so offering up your email could save you a bit of money.

These offers might be for 10% or more off, free shipping, or other deal sweeteners. And you can opt out of future emails whenever you like. Additionally, some retailers will offer these deals or increased savings if you allow them to text you with their latest news and sales.

The Takeaway

Paying less for items can mean you’re a smart shopper; it just plain feels good to know you’re saving money off of retail prices. If you have a few tricks up your sleeve, you’ll know how to never pay full price for anything ever again. Whether it means using a browser extension when shopping online, taking advantage of cash back offers, or tapping your negotiation skills, there are many ways to make sure you get the best possible price tag whenever you buy.

3 Money Tips

1. When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a no fee bank account that doesn’t charge you for overdrafting.
2. 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.
3. Signing up for your paycheck to be directly deposited in your bank account is a great way to help you pay your bills on time. After all, if your check is being deposited like clockwork, you can schedule bill payments ahead of time.

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

Is paying retail bad?

If you feel the price is fair, there’s nothing wrong with paying full retail price. In fact, studies have shown the more focused a person is on scoring a deal, the more likely they are to spend more money. If you’re also more conscious of what you buy, that’s more important than saving a few bucks on something that won’t last or doesn’t hold value.

Why are wholesale and outlet stores cheaper?

While not every item is going to be cheaper at wholesale and outlet stores, in general, you will find better prices shopping at stores that offer an alternative to full retail price. Wholesale stores can offer better prices by focusing on fewer products and selling inventory in bulk. Outlet stores often have better prices because they sell overstock items.

Should I pay retail if an item is limited?

The adage, “spend according to your values” can help you decide when to pay retail price. If you’re purposeful with spending your money, paying retail price on a limited item is a decision that may make sense for you.

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Photo credit: iStock/Mongkol Akarasirithada

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.

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Entrepreneurship is booming in America. According to the latest U.S. Census stats, almost 5.4 million new ventures were registered in 2021, a 23% uptick from the year prior. While entrepreneurship is often portrayed as being exhaustingly hard, its many upsides are clearly enticing more and more people to dive in.

What are the benefits of being an entrepreneur? They can range from setting your own hours to having unlimited earning potential to realizing a personal dream. Some people nurture an idea for an innovative product or service for years and then set to work bringing it to life. Others are on a mission to help their community or a specific segment of the population.

Still others set out with the simple goal of making a lot more money than their current 9-to-5 gig pays.

Whatever your motivation, the benefits of becoming an entrepreneur can have a major positive effect on your life. Here, we’ll take a closer look at the perks of starting your own venture. They just may motivate you to take this next giant step in your career and charter your own path.

Read on to learn:

•   What is an entrepreneur?

•   How does entrepreneurship work?

•   What are the benefits of being an entrepreneur?

What Is an Entrepreneur?

An entrepreneur is a person who starts their own businesses to bring their dreams to life. Whether they envision opening a better coffee bar or developing a fitness app, they invest time and capital in their business ideas and work diligently to make them successful. Entrepreneurs often partner with other investors, employ workers, and take risks as they seek success.

Typically, an entrepreneur is an inherent problem-solver with a can’t stop, won’t stop attitude. In addition, many are brimming with confidence and conviction that their idea is a terrific one. They refuse to stay discouraged and just see the word ‘no’ as a temporary setback at worst.

The U.S. is full of success stories of entrepreneurs, whether that means the likes of Microsoft’s Bill Gates, Amazon’s Jeff Bezos, or any of the folks who win on Shark Tank. Many of these experienced numerous failures and pressure to give up from family, friends, and potential investors but persevered.

While the wealthiest entrepreneurs are popular symbols of accomplishment and can make it look easy, the truth is that most entrepreneurs have spent countless hours and tremendous sweat equity behind the scenes to become successful.

How Does Entrepreneurship Work?

Entrepreneurship is the opposite of 9-5 jobs. Instead of punching a clock or working on a project for a company, you depend on your own efforts to bring in some type of income. The grind can be brutal, especially at first when you probably aren’t making money.

However, entrepreneurship means more than wanting to work for yourself. To live as an entrepreneur, you need an idea for a business, service, or product to focus your efforts. For example, you might see an opportunity to succeed with a superior product or be the first to serve a niche market.

As an entrepreneur, you bet on yourself, which means you invest as much of your time and money into your business aspirations as possible. You might leave your job to pursue your dream or put in hours before or after your day job to get your business going. Either way, successful entrepreneurs often reach a point where they grow their company enough that they must dedicate all their time to it, hire others to take on some of the workload, or partner with investors.

In addition, many entrepreneurs create social change through their business efforts. For example, TOMS Shoes is a multimillion-dollar company that has provided shoes, clean drinking water, and medical care for hundreds of thousands of people in need.

Recommended: 46 Tips for College Graduates Joining the Real World

Benefits of Being an Entrepreneur

Now that you understand how entrepreneurship works, here are some pros of being an entrepreneur.

1. Ability to Work from Anywhere

One of the key benefits of becoming an entrepreneur is you typically have the ability to work from home or anywhere else you may be. Since you can run many types of business online, you often only need a laptop and internet access to work as an entrepreneur. A work-from-home budget can be an economical way to launch your venture. So, whether you prefer your living room, a coffee shop, or a beach (as some digital nomads do), you have the freedom to set up shop wherever you like without necessarily paying rent for a workspace.

2. Having a Flexible Schedule

In addition to working from anywhere, you choose when you’ll work as an entrepreneur. As a result, you make your own hours,which may give you room for family time, exercise, or errands during the day.

Worth noting: Since the “office” never closes, some entrepreneurs are known to toil 16-hour days (or longer) to realize their aspirations. For this reason, setting your own hours can be a double-edged sword that may lead to overwork and burnout for some. Proceed with your eyes wide open, and remember that work-life balance can be valuable.

3. Ability to Make Key Decisions

As an entrepreneur and business owner, the buck stops with you, which is another empowering benefit of being an entrepreneur. You’ll decide how the business runs, the product or service to focus on, and the target market you’re trying to reach. You pick your team, your partners, and your company culture as the business grows.

Recommended: Can I Use a Personal Checking Account for Business?

4. Growth in Leadership

A successful business requires an able leader. In all likelihood, entrepreneurship will give you opportunities to develop as a business owner and manager. You can learn new skills and expand your knowledge.

As a result, as you continue your professional journey, you’ll probably become an effective boss, operations manager, and business development wrangler. All of which are pros of being an entrepreneur.

5. Ability to Give Back to Your Community

Success as an entrepreneur usually means growing your business to the point where you hire employees. As a result, your efforts create wealth and economic opportunities in your community, helping others support their families and accomplish their dreams. Additionally, successful business owners and entrepreneurs can invest in other companies and donate to charity, benefiting those around them. There’s one more way this can be an upside of entrepreneurship Your business mission may be one that uplifts others. Perhaps you’re developing a healthier snack food, for instance, or an app that helps people reduce their stress levels.

6. Choosing Who to Work With

As an entrepreneur, you might start your business slowly (a benefit of side hustles) or go in full tilt right from the start. Regardless of how you get going, you’ll determine who your partners and colleagues are, which can make for a very agreeable work life. Whether you occasionally speak with consultants, hire workers, or bring investors on board, you decide who gets involved with your business. Your independence as an entrepreneur allows you to intentionally create a work culture that fits your preferences. It’s empowering to have the ability to say “no” to working with someone who doesn’t fit your vision.

7. Being an Entrepreneur is Rewarding

One of the many benefits of becoming an entrepreneur is seeing success unfold, thereby proving the validity of your ideas and the impact they can have. Whether you develop a shampoo that people love or a service that helps disadvantaged students, knowing that your endeavor is finding an audience can be hugely rewarding.

In terms of finances, turning a profit on your business can be life-changing. Once you run payroll and address your business costs, every dollar earned is yours.

Whether you want to put money earned back into the business for more growth or use it to get a new car, seeing money roll in from your business can be incredibly satisfying. Instead of having a set salary, you’ll see how your very own efforts can drive your income and net worth.

8. Being Able to See the Fruits of Your Labor

Success as an entrepreneur is multifaceted and fulfilling: You can obtain financial freedom, see your business grow through meeting customers’ needs, mentor employees, and launch related (or unrelated) ventures. That feeling of having created something that clicks with an audience and builds a following is uniquely satisfying and can definitely boost your sense of pride and self-esteem.

Recommended: Common Signs That You Need to Make More Money

9. Creating a Positive Impact

Entrepreneurship goes beyond making an appealing product and profitable business. Your leadership can inspire others to pursue their dreams. Additionally, your company can create economic ripple effects, allowing others to achieve financial success and benefiting your city and beyond.

10. Income Is Decided by You

As an entrepreneur, you manage the money (at least during the start-up period). As your business evolves, you might get to decide whether you want to create jobs with better pay or scale your business quickly. You’ll also allocate funds and determine your own paycheck.

It’s a balancing act that you will be in charge of. For example, you might be less concerned with becoming a millionaire than you are with retaining quality employees for the long haul through robust compensation.

Recommended: How to Prepare Your Finances for a Recession

11. Networking Opportunities

Most successful entrepreneurs keep strong connections with others who are also starting their own ventures. For instance, you can learn from those who already had to rent workspace, run payroll, or deal with licensing arrangements. In the future, you might be the one tapped by a newly minted self-starter for that very same kind of information.

You’ll grow professionally through peer, mentor, and mentee relationships. No one knows it all, and tapping your network can be an effective way to solve business problems and find the right people to hire or consult.

The Takeaway

There are a myriad of benefits of being an entrepreneur, such as deciding your own schedule, boosting your earning power, and having the opportunity to impact people around you. However, successful entrepreneurship requires tenacity, willingness to learn from failure, and comfort with risk.

The beauty is that anyone can become an entrepreneur. Whether you start your business as a side hustle or leave your job to take the plunge, you have the power to create your own opportunity.

3 Banking Tips

1.    If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

2.    An emergency fund or rainy day fund is an important financial safety net. Aim to have all least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.

3.    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.

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

What are the drawbacks of being an entrepreneur?

The drawbacks of being an entrepreneur include not having a guaranteed wage or salary, possibly investing more hours into your business than you would at most jobs, and the real risk that your endeavor will fail. As a result, you might put all your time and money into a business venture only to end up with nothing to show for it.

Can anyone become an entrepreneur?

Anyone can become an entrepreneur; no specific certification or education is necessary. However, in some cases, business experience, a college degree, and professional training programs can increase your chances of being a successful entrepreneur.

How long does it take to become an entrepreneur?

One of the pros of being an entrepreneur is that it’s possible to become one quickly if you have a business idea plus sufficient available hours and capital to start your venture. However, finding success as an entrepreneur usually takes years of hard work.

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Photo credit: iStock/PeopleImages

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

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Affirmations, or phrases you repeat to help promote positive thinking and self-acceptance, are everywhere, from “Just do it” on Nike leggings to “Happiness comes in waves” on beach-house pillows. But what about money affirmations? Can they put a sunnier spin on finances or even help you reach your financial goals? If you’re curious or just want to give them a try, this guide will be a good introduction.

Naturally, it’s not motivating to be down on yourself with any life goals, from weight loss (“I can’t even lose five stupid pounds”) to finances (“I will never dig out of this debt”). Researchers at George Washington University’s Global Financial Literacy Excellence Center recently reviewed data showing that 60% of respondents ages 21 to 62 reported feeling anxiety and stress when thinking about their personal finances. Furthermore, they found that those emotions are highly linked to problematic financial behaviors and decreased financial security.

Could money affirmations help this kind of worry and negativity around finances? You can be the judge of that once you read this guide. You’ll learn the scoop on money affirmations, including:

•   Whether money self-talk works

•   25 top phrases for affirmations about money

•   How to choose positive affirmations for wealth

•   How to write your own finance affirmations.

What Are Money Affirmations?

Affirmations about money are positive statements that reflect on you and your relationship. They capture optimistic viewpoints on the dollars that pass through your hands (or stay in your savings account). Some people value these as being a step towards achieving financial success.

An affirmation can be as simple as “My finances will get better.” If you are, say, out of work and in debt, repeating such a statement may seem like putting on rose-colored glasses.

But many financial advisors and life coaches believe that looking on the bright side can manifest a positive change in prosperity and help you learn how to become financially independent.

Fans of finance affirmations say that repeating them can help you believe them and thus avoid impulsive or unwise money decisions, such as selling stocks or splurging on a vacation when neither is in your budget right now.
Repeating key words may help keep your financial goals top of mind.

Others, however, believe that these sayings don’t impact one’s money. It’s a very personal decision whether to implement affirmations or not.

Recommended: Personal Finance Basics for Beginners

How Do You Use Money Affirmations?

Financial affirmations can be used by anyone who wants a better relationship with money; no skills or prior knowledge required.

Those who believe in affirmations suggest saying them aloud or in your mind or writing them down to condition yourself into positive self-talk.You could jot them on a sticky note to post on your computer, mirror, fridge, and/or car dashboard. Some people like to put the words on their phone lock screen; others may prefer to write them in a notebook or journal daily.

The affirmation you choose will likely be something personally resonant. It might range from “The sunrise is free. I will watch it once this week” to “I choose to set aside savings every payday.”

The goal is to repeat the affirmations often enough to impact your outlook, enabling you to recognize how to achieve financial security.

The prevailing wisdom is to make time to repeat affirmations several times, at least once a day. Try turning to them when you are overwhelmed, sad, scared, or stressed to help move toward a shift in how you see yourself and your money skills.

Do Money Affirmations Actually Work?

No golden rule exists–there’s no guarantee that if you repeat money affirmations, your financial well-being will improve. No matter what you see online, read in books, or watch on YouTube, no one knows 100% whether money affirmations, even if repeated 100 times, will truly improve finances and build wealth. But proponents believe in them.

Moreover, consider that research shows that stress and anxiety about money can lead to problematic spending decisions. Reinforcing positive self-talk with mantras might relieve fear and worry and result in a calmer, steadier, more productive financial mindset. Certainly, thinking positive is a win over negative self-talk.

Recommended: How to Develop a Healthy Money Mindset

Money Affirmations vs Money Mantras

The phrases “money affirmations” and “money mantras” are interchangeable. They are also sometimes called “abundance affirmations.” Whatever you call them, money affirmations for financial abundance may be a way to boost your positivity when it comes to managing your cash.

One technicality: While affirmations are usually sentences, mantras can sometimes be as short as just one word. (Om, for instance, is a simple sound you may recognize from yoga practice. But it has a complex meaning. In the Hindu tradition, om is said to contain the entire universe.) You could play with one-word money mantras, such as Confidence, Success, Savings, or Empowerment.

No matter what form the affirmations take, the words are meant to help you stay the course in reaching your financial goals.

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A (Non-Exhaustive) List of 25 Money Affirmations

If you’re curious and want to give affirmations about money a try, you’re in the right place. What follows are 25 sayings you can try out (whether you say them aloud, internally, or write them down) to hopefully build a more positive approach to your finances.

1.    I control money; money doesn’t control me.

2.    I can become financially free.

3.    I have the power to be financially successful.

4.    I have wealth beyond money.

5.    My income will exceed my expenses.

6.    My hard work will bring in more money.

7.    I will not stop myself from generating income.

8.    I will accept whatever wealth comes my way.

9.    I deserve the money coming to me.

10.    I have more than enough money.

11.    My finances will get better.

12.    I accept financial success.

13.    I will achieve my financial goals.

14.    I deserve success and happiness.

15.    I will use the money I earn for good.

16.    I am wise with my money.

17.    I can make smart financial decisions.

18.    I have the ability to overcome reckless spending.

19.    I can make my dreams a reality.

20.    My future self will thank me for being wise with money.

21.    Having wealth is integral for life.

22.    I can go beyond my financial goals.

23.    Debt will not stop me from reaching my financial goals.

24.    Saving money is a challenge I can accomplish.

25.    My investments will pay off.

How to Choose Your Money Affirmation

First, identify negative beliefs about money that may be holding you back. Perhaps you see yourself as a diehard shopper, not capable of resisting sales or making frugal decisions. For instance, do you buy kitchen gadgets (an air-fryer, a rice cooker, an ice cream machine) that you never use or a necklace at a friend’s jewelry party, when your jewelry box is already stuffed? Maybe “I am wise with my money” would be a good affirmation to try.
Choose affirmations that address and reverse negative money self-talk.

If you can’t seem to master money discipline and scrape together a few bucks to put into savings, it could help to stop the thinking that says you never will. Repeat a mantra such as “Saving money is a challenge I can accomplish” and it just might lead you to pass up another latte and make your own, or ride a bus instead of calling an Uber. Start where you are on your journey, even if it only involves taking a small first step.

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How to Write Your Own Money Affirmation

Some money advisors say that creating your own money mantra is more powerful than adopting someone else’s. Wondering why? Because you can directly address your own very personal struggles and goals.

Write the mantra in first person (from your point of view) as though it is already true. Keep it real and spin it from deprivation to empowerment. For example, if you’re tightening your budget, “I will not order pizza deliveries ever again” may be hard to live up to if pepperoni pies are a Friday night family treat.

A better affirmation might be “I will budget well and spend my grocery money mindfully.” That way, when you do order occasional pizzas, you will have planned for it and can feel good. This can help you avoid feeling guilty about ordering something that puts you in the red and focuses on the positive.

If it seems hard to write your own money mantra, jot down an incident of negative self-talk (“I can’t stop ordering books on Amazon”) and turn it into a confident phrase (“I choose to spend my money with intention”).

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The Takeaway

Money affirmations, aka money mantras or abundance affirmations, are phrases people repeat to replace a negative money mindset and create a positive one. Some experts say the words can turn self-defeating self-talk (“I will always be in debt”) into positive affirmations for wealth (“I have the power to be financially successful.”)

The goal is to say (aloud or to yourself) the affirmations regularly, perhaps posting them where you will see them often, such as on your car dashboard or computer screen. Those who put stock in affirmations believe that ultimately, the words can enrich and transform your financial journey.

3 Banking Tips

1.    Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. Online banks are more likely than brick-and-mortar banks to offer you the best rates.

2.    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.

3.    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.

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

Do you need to have money affirmations to attract wealth?

No, there is no rule that says you must use money affirmations to attract wealth. However, some people (including financial advisors and life coaches) stand by these phrases. They believe that repeating the words often can empower people and transform their negative money mindsets, ultimately helping them smooth their financial journeys.

How often do I need to say my money affirmations?

Money mantra fans say you should repeat the phrases as often as you need to until you start believing them, at least several times daily. The general advice is to post your finance affirmations in places where you will see them often, such as on the refrigerator or mirror. You can say the words aloud, repeat them to yourself, or write them in a journal.

When is a good time to repeat money affirmations?

An ideal time to repeat money affirmations is when you’re feeling overwhelmed, sad, or stressed about your finances. For instance, if your credit card payment is late and payday is a week away, rather than sinking back into negative self-talk, you could repeat powerful money phrases. Doing so might help you accept your current burden and refocus on your goals in the moment.

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