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Credit is often regarded as a catch-22: You have to have credit to access credit products, particularly borrowing opportunities that are more competitive. For example, a positive credit history can help you access consumer loans at a lower interest rate, or qualify for a credit card with a lucrative rewards program. But without an existing credit history, it might be hard to get approved for these opportunities.

However, everyone starts with zero credit history. Building a credit profile doesn’t happen overnight, but learning how to build credit when you have none can help you get there.

What Is Established Credit?

Establishing credit means that you have a history of past and currently active credit accounts with which you borrowed money from an entity or financial institution to purchase goods or services.

Lenders and creditors review your established credit to decide whether to extend you new credit. It’s also evaluated by employers, utility companies, and landlords to help them decide whether to accept your application or offer you service.

5 Tips to Build Credit With No Credit History

It is possible to build credit even with no credit history. If you have no credit, build credit using one or more of the following strategies.

1. Become an Authorized User

One way to build credit with no credit is to ask a family member or friend who has good credit to add you as an authorized user on their credit card account. Some lenders report card activity to the credit bureaus for both the primary cardholder and any authorized users on the card, so the primary cardholder’s good credit behavior could reflect positively on your credit.

As an authorized user, you aren’t liable to repay the debt on the card. However, the reported data still will reflect on your credit history.

2. Get a Secured Credit Card

Getting a credit card for the first time can be challenging if you immediately apply for an unsecured card that isn’t tied to collateral. A secured card can be easier to obtain when building credit from no credit — just make sure the card issuer reports the account’s activity to the credit bureaus.

Secured cards typically require you to make a small initial deposit into a separate bank fund. The card issuer then gives you a credit card usually with a credit limit that matches your deposit amount. As you use the card and make prompt payments, you can build credit. Once you achieve at least a fair credit score, you may be able to get upgraded to an unsecured credit card.

3. Report Your Rent and Utility Payments to Credit Bureaus

To boost your progress in building credit with no credit, you can self-report your on-time rent payments, cell phone payments, and everyday utility bills.

Third-party services, like Piñata and Rental Kharma, give you momentum to develop your credit history using your rental payment track record. Similarly, the credit bureau Experian empowers consumers to establish their credit profile by reporting phone and utility bill payments via Experian Boost.

4. Apply for a Retail Card

Credit cards that you can only use at a specific merchant, like a gas card or department store card, are typically easier for consumers with no credit history to get approved for. Plus, retail cards’ lower credit limit and restricted use makes them a good option if you’re looking to build credit.

Recommended: When Are Credit Card Payments Due?

5. Take Out a Credit-Builder Loan

A credit-builder loan is an installment loan that’s typically for a small amount, like a few hundred dollars. The lender puts this amount into a separate savings account on your behalf, and you’ll make payments to repay that loan.

During this process, the lender will report your account activity to the credit bureaus. And once the loan’s term ends, you’ll get the money that accumulated from your regular payments.

How Long Does It Take to Build Credit for a Beginner?

Establishing your credit can take anywhere from three to six months, and it typically takes at least six months to develop a credit score. Once your credit account is active and there’s borrowing and repayment activity on the account, your lender or card issuer will report the new account and its activity to the credit bureaus.

What Credit Score Should You Start With?

A starting credit score doesn’t start at zero. The baseline, or lowest FICO score you can have, is actually 300. If you are building credit from no credit, however, you simply wouldn’t have a credit profile to your name, meaning you’d have no credit score as opposed to a low credit score.

Recommended: How to Avoid Interest On a Credit Card

Tips for Using a Credit Score to Your Advantage Once You Have It

Once you’ve gone through the necessary motions to build credit, here’s how you can make the most of it:

•   Shop around before opening new credit accounts. Lenders and credit card issuers are competing for your business. Compare product features, interest rates, fees, and terms before moving forward with a new loan or credit card to ensure you get the most competitive option available to you.

•   Apply for credit cards with better rewards. Once you’ve established your credit and are confident that you can borrow responsibly, consider applying for a credit card that offers a rewards program. For example, look into cards that offer cash back, points, or miles so you get a little something back from purchases you’d already make.

•   Maintain responsible borrowing habits. After you’ve put in so much work to build your credit score, you don’t want to wreck it. So follow responsible borrowing habits, like not borrowing more than you can afford to pay back based on your monthly expenses and income.

•   Be aware of the factors affecting credit scores. Understand how paying off debt affects your credit score, as well as how your credit utilization, credit age, credit mix, and new accounts influence your score. By knowing what makes up your credit score, you’ll better know how to continue building it.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

The Takeaway

There are many ways to build your credit when you have no credit history. However, all of the strategies above take a few months to get your credit record established. Once you have a credit score going, you can access other credit products, like rewards credit cards.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How fast can you build credit with no credit?

Generally, if you’re starting with no credit, it can take anywhere from three to six months to build your credit. The exact timeline depends on the credit scoring model that’s used and your lender’s timeframe for reporting new accounts to the credit bureaus.

What is the easiest way to establish a credit history?

The easiest way to establish a credit history is by asking to become an authorized user on a family member or close friend’s credit card account. This approach bypasses having to personally submit your own credit card application. Instead, you’ll piggyback on the primary account holder’s positive borrowing and repayment practices to build your credit record.

What is my credit score if I have no credit?

If your credit profile is nonexistent — meaning you’ve never opened a credit-based account under your name — you won’t have a credit score at all. Having a credit score of 0 is actually a myth; instead of a number, you’re simply considered credit invisible.

How long does it take to build credit from 0 to 700?

The time it takes for consumers who are new to establishing their credit to reach a credit score of 700 varies. However, generally, if you have no credit you could potentially reach a 700 credit score after six months of a reported payment history.

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Photo credit: iStock/fizkes

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

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

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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Figuring out how to pay your bills when your usual income stream is interrupted by job loss can be a difficult task. You probably know to cut back on dining out and movie nights, but what can you do about bills for your rent, student loans, and other vital expenses?

Plenty of people confront this situation, and there are ways to navigate this challenge. If you are wondering how to pay bills when you lose your job, it’s a matter of knowing how to recognize the most pressing bills, organize your assets, and seek additional income and assistance if needed.

Here, learn more, including:

•   Which bills to prioritize if you lose your job.

•   How to develop a survival budget.

•   Where to access funds until you find your next job.

What Bills Should I Prioritize?

If you’ve lost your job, you may feel as if you can’t pay all your bills. In this situation, it’s crucial to prioritize certain ones to make sure you can meet your basic necessities. This means looking at your list of bills and determining ones that should be at the top of your list (or close to it).

In addition to the bills that keep your daily life running, you also want to consider the damage unpaid charges can do to your credit rating. The goal is to balance these factors with the funds you do have available.

Bills you should probably prioritize include:

Rent

Having a roof over your head is important for you and those who live with you, so contact your landlord as soon as possible to discuss alternative payment arrangements. Perhaps you can negotiate lower payments for a window of time. Otherwise, if you don’t communicate and don’t pay, you could find yourself facing eviction.


💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

Mortgage Payments

If you have a home loan, falling behind on payments can have serious consequences, one of which is foreclosure. Non-payment can lead to default and the bank has the right to recoup their property (aka the home) and sell it to attempt to make back the money it lost.

If you’re wondering what to do about loans when you’ve lost your job, contact your lenders as soon as possible. Many offer forbearance or alternative repayment programs.

Student Loans

Falling behind on student loans could mean you’ll go into default. In some cases, the lender may have the right to garnish your wages. If you’re handling student loans during a job loss, consider applying for an income-driven repayment plan for federal student loans or contacting your private lender to see what options are available.

Car Loans

You’ll most likely need your car to run errands or look for work. Staying on top of payments for your loan or lease can help ensure you won’t risk having your vehicle repossessed.

Insurance

Non-payment could result in denial of coverage, which might not be helpful if you need to see medical treatment or are in a traffic accident, for instance.

Utilities

Not paying these types of bills can result in your electricity, water, phone, and internet being shut off. These are obviously vital for daily life and, in terms of connectivity, job hunting.

How to Create a Survival Budget

If you’ve lost your job, it’s important to create a survival budget to help prepare for the lean times ahead. This type of budget only takes into account the bare necessities with whatever savings or income sources like unemployment benefits you currently have.

The main goals of a survival budget: to ensure you and your family are taken care of, and then turn your attention to any creditors as necessary. What this means is that even without a job, you pay the bills that will ensure you can survive first — such as food and housing.

Taking Stock of Your Expenses

To start, look at all of your current expenses and eliminate anything that isn’t really and truly a necessity.

•   You can’t get rid of your food expenses, but you can temporarily cut back on dining out. Cook your meals instead, and ditch your takeout coffee habit for now.

•   If you have a cell phone, you can consider downgrading your service for a cheaper plan to save some money.

Look at the funds you have available for the next couple of months as you job hunt. Deduct the priority expenses, and then evaluate what is left and how you can budget those funds. Be strict with yourself: Now is the time to unsubscribe from all those streaming services and save your money for what’s vital.

If you’re not sure if you have enough cash to pay for the necessities and debt payments, it’s best to seek options like forbearance and deferment — negotiate with your lenders to see what you can do.

Where Can I Turn for Money?

Here are some income sources you can turn to when you’re unemployed. It’s hard to pay bills with no job, but these resources may get you through a tough time:

Credit Cards

Using credit cards or even taking out a personal loan when unemployed can be a quick source of funds if you need to make purchases such as groceries and gas. While the interest rates tend to be high, you’ll have a grace period before your balance is due, giving you a buffer to get another income source.

Otherwise, you can make the minimum payment for the time being and make a plan to pay it back once you’re employed again.

Also, see if you can negotiate with your card’s issuing company; you might be able to delay credit card payments. You may also want to explore balance transfer credit card offers, which give you a window of low or no interest.

Retirement Accounts

Tapping into a retirement account like a 401(k) or an IRA is typically seen as the last resort because the downsides typically outweigh the benefits. However, if you’re running out of resources and you have a decent chunk in there, you may not have another choice.

You can choose to tap into your retirement accounts in the following ways:

•   Take out a 401(k) loan: Depending on the terms of your 401(k) plan, you may be able to borrow up to a certain amount — usually up to $50,000 or half of your vested amount — and pay it back within a predetermined amount of time (in most cases, five years). Keep in mind you could face additional penalties if you don’t pay back the loan, such as the loan amount being subject to taxes. In addition, loan and management fees may apply.

•   Withdraw from your retirement accounts: If you have an IRA or taxable brokerage account, you can make withdrawals. Keep in mind with IRA accounts, you may be subject to a penalty and taxes on the amount you withdraw.

Government Assistance

You’ll want to find out how unemployment works if you lose your job; it can help get some cash flowing your way. Those funds can help you pay for your necessities as you seek other work.

If you’ve been unemployed for a while or face mounting pressures on things like an unexpected medical expense, you may be able to seek other forms of government assistance. These sources can be helpful if you feel as if you’ve lost your job and can’t pay your bills. To see what you may qualify for, you can search on Benefits.gov , your local state or municipal office, and even local charity organizations and churches.

How Setting Up a Bank Account Can Help You When You Are Not Working

When you’re unemployed, setting up a bank account (if you don’t already have one or one you love) may seem like the last thing on your mind, but doing so can help. For one, it can help you to keep track of your finances and apply for products such as credit cards and loans if you need these sources of income.

Plus, many banks offer tools to help you budget your money, a useful feature considering you need to watch your money more carefully. These pros of opening an account can make this moment of unemployment a good one to explore your options.

How to Budget and Save with a Bank Account

Here are some ways in which you can make a budget and save using a bank account when you are unemployed and navigating the job market:

•   Divide money into multiple checking or savings accounts for each type of expenses so you can ensure you have enough money for necessities as well as bills.

•   Set up automatic transfers so you can ensure you’re setting aside money from any income to save or pay bills on time.

•   Set up direct deposit for unemployment benefits or government assistance.

•   Set up card controls or features from your bank to restrict spending.

•   Turn on balance alerts to notify you when your account falls below a certain balance, so you can decide to pause or delay certain purchases.

•   Earn interest with a high-interest savings account.

Alternative Sources of Possible Income

For some people, the above options for money won’t be a good fit; for others, additional funds will be needed. If you have learned how to apply for unemployment and taken other steps to get money but are still seeking other sources of income, consider these options to get cash flowing:

•   Borrow from friends and family.

•   Look for work on freelance marketplace sites like Upwork and Fiverr.

•   Sell things you own or make online via eBay, Etsy, or other sites.

•   Participate in paid market research.

•   Look locally for jobs like dog-walking.

•   Explore passive income ideas, including renting out your car or your tools.

Protecting Your Finances from Future Job Loss

There are also steps you can take to bring in income and prepare for any future financial setbacks you may endure. Consider these options:

Starting a Side Hustle

A side hustle is a gig you start that doesn’t have to be full-time but fits into pockets of time you have available. One of the key benefits of a side hustle is bringing in income.

Side hustles can include anything from driving a rideshare to delivering food. You might sell your nature photography online or help local businesses with their social media part-time.

Building an Emergency Fund

Starting an emergency fund can help protect your finances if you were to lose your job. This involves saving money so it’s there if you are laid off or encounter an unexpected expense, such as a major car repair or dental bill.

In terms of how much money should be in an emergency fund, aim for three to six months’ worth of basic living expenses. Of course, it’s fine to build that up over time versus coming up with the whole amount. Even putting aside $20 a month is a start. And by keeping the funds in a high-interest savings account, you’ll help it grow.

It’s important to know when to use an emergency fund. Losing one’s job is an emergency; it’s exactly what the money is there to pay for. However, the opportunity to travel at a deeply discounted rate or buy designer shoes for 50% off are not good reasons to tap this account.

Starting a Budget

Developing a budget and following it can help you get through challenging financial moments and thrive in good times. A budget helps you balance the money you have coming in, your spending, and your saving. It helps you get a better handle on your financial situation and make adjustments in real time.

•   One popular budget is the 50/30/20 budget rule. This says that, of your take-home pay, 50% should go to basic living expenses, 30% to spending on your wants (such as eating out), and 20% should go to savings and debt payments beyond the minimum.

•   If you have lost your job, you can minimize the 30% by trimming back your spending on wants as much as possible and then attributing more to the basic living expenses and debt payments.

•   The 20% saving figure can be a way to plump up that emergency fund that can help sustain you during a job loss.

The Takeaway

Paying bills when you lose your job can feel stressful, but it’s not impossible. Some key steps may include prioritizing your bills and focusing on budgeting for the bare necessities. It’s also wise to negotiate lower or delayed payments where possible and look for other interim streams of income while you look for your next job.

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

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 happens to debt when you lose your job?

Your debt does not go away when you lose your job. You want to keep paying at least the minimum due. However, you may be able to negotiate a way to lower your interest rates or defer payment while you are out of work. Contact your creditors and see what can be worked out.

What bills should I pay first?

When you are unemployed and need to pay bills, prioritize basic living expenses, such as housing, food, and healthcare. It’s also important to stay current on loans, such as student or car loans.

How do you budget if you are unemployed?

If you are unemployed, focus your budget on paying for your basic living expenses (food, shelter, healthcare, etc.) and paying the minimum on your debt. Trim down your discretionary spending; negotiate with creditors to keep debt manageable; and look into borrowing or earning additional funds.

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Photo credit: iStock/Delmaine Donson

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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.

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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When you partner up, it’s likely that you are focused on building a home together and merging lifestyles: morning person vs. night owl, how to accommodate both of your vinyl and book collections, and so forth.

But there’s another important consideration: setting up a budget for two. You may choose to combine some, all, or none of your funds, But many people do want to mix at least some of their money and get on track for shared budgeting, spending, and saving.

This guide can help you explore your options and make the right decisions. You’ll learn such points as:

•   Why to budget as a couple

•   How to budget as a couple

•   Pros and cons of budgeting as a couple.

How to Budget as a Couple

Here are some steps to take when you budget as a couple.

Decide How Much You Want to Combine Your Money

Depending on how much you want to combine finances as a couple is a key part of budgeting as a couple. Each of you will have your own money style and potentially money issues, so a frank discussion on how comfortable you are merging your money and sharing, say, your spending habits is a wise first step.

Calculate Your Combined Income

If you have decided on merging at least some of your funds, take a look at your shared income to know what amount you are working with. Consider if you are on salary, freelance, have side hustle income, or dividends/passive income to come up with the right number.

Determine Shared Expenses

Next, look at where that income will go. You likely have shared housing, food, utilities, transportation, insurance, and healthcare expenses in terms of necessities. You may have varying debt payments to make as well.

Perhaps one of you has more in the way of student loans or credit card debt than the other. Discuss what feels fair in terms of paying that down.

You will also probably want to take a look at your usual discretionary spending, such as what you pay towards dining out, travel, entertainment, yoga classes, clothing, and the like.

You may decide you are more comfortable keeping some of your money separate rather than have full transparency regarding every dollar spent. It’s your call.

Figure out Future Goals

Then, turn your attention towards saving. Perhaps you two want to buy a home in a couple of years, start a family, begin a business, or pad out your retirement account. Or all of the above. You’ll want to factor in those savings for tomorrow.

Make Your Budget

With this information in hand, you’re ready to create a budget. It can be wise to review a few different types together, such as the popular 50/30/20 budget rule, the envelope budget system, and the zero-dollar method.

Recommended: Check out the 50/30/20 budget calculator to see the breakdown of your money.

Create Joint Accounts

At this point, if you have decided to merge some of your money, you may want to open shared accounts, such as a joint checking and savings.

💡 Quick Tip: Bank fees eat away at your hard-earned money. To protect your cash, open a checking account with no fees online — and earn up to 0.50% APY, too.

7 Reasons to Budget as a Couple

Budgeting as a couple vs. budgeting as two individuals can have its pros. Consider the following.

1. Controlling Your Spending as a Team

One of the basics of budgeting is to prioritize your spending. Once you, as a couple budgeting, have decided where your money must go every month — toward groceries, utility bills, car payments, rent, and other essential expenses — you’ll have a better idea of how much will be left for discretionary expenses.

And instead of being restrictive, your budget could give you some spending flexibility. You’ll know if you need to cut back and when you can loosen up a little, and you’ll be accountable to each other.

Sometimes, one person in a couple budgeting is better at finances or just enjoys it more. It might be a good fit for that person to be in charge of managing the bills. But it’s also a good plan to come together for regular budget reviews so both of you know where the money is going and there will be some balance in the financial decision making.

Leave room for some splurges, or the spender in the family probably won’t be too happy. And be proactive about big purchases: Identify a threshold for how much each of you can spend so there are no surprises. Or, of course, you can keep some discretionary spending separate if this feels too stressful for the two of you.

2. Being Honest About Money Problems

This can be the time to talk about any hidden debts, bad habits that cost money, or if you can’t trust yourself not to overspend when there’s a credit card in your wallet.

Then you can start tackling those issues by setting spending limits, cutting up some of those credit cards, perhaps getting financial therapy, and, of course, incorporating those looming debt payments into your budget.

3. Being Prepared for Emergencies

A common recommendation is to have three months’ worth of living expenses set aside in emergency savings in case you lose your job or are sick or injured and can’t work. An emergency fund can also be used for unexpected costs such as home or car repairs or a medical procedure.

Not only can a couple budgeting determine how much to set aside each month to build that emergency fund, you can also choose which expenses to put off or do without if you don’t have enough in your fund when a crisis strikes.

Some budget ideas for couples who need to cut back on spending are reducing the number of date nights you had planned or putting your tax refund toward a bill instead of taking a spring vacation.

Having a budget can help you replace panic with a plan, and having a financial tool like SoFi can help you keep tabs on your cash flow and spending habits.

Recommended: How Much Should You Keep in an Emergency Fund?

4. Creating Goals

If there’s a “fun” part of working together as a couple budgeting, this is it: deciding your priorities for the future.

Whether it’s saving for a home, having children, taking a cruise, starting your own business, or all of the above and more, your budget will help you focus on the things that are most meaningful to you as a couple.

Your strategy can help you set aside the money to reach those goals, aka turning the dreaming into doing. And you’re more likely to stay on track if you’re checking in on your spending each month.

5. Deciding How Much to Combine Finances

You will likely want to tackle the question of whether to have joint bank accounts vs. separate bank accounts or even a little of both. Making the right call can strengthen your bond financially and holistically.

You may decide to completely merge your bills and bank accounts, or you might want to keep your own accounts and divvy up the bills. There are pros and cons to each approach in budgeting for married couples or cohabiting couples.

Combining accounts can simplify your finances and build trust. But if you feel strongly about financial independence — or you’ve been burned in the past — you may feel more secure if you have your own money. Negotiating an agreement that’s comfortable for both parties can be a real win-win.

6. Reducing Financial Stress

Here’s a solid upside to merging your money: Once you get the numbers down on paper instead of just swirling around in your head, you may feel more in control of your finances. Even if the situation is shaky, you can take steps to do something about it. What’s more, you are likely on a path to making your money work harder for you.

7. Having Something to Talk About

Here’s another benefit: Once you create your couples budget, you’re going to want to revisit it on a regular basis. You can discuss how your various budget categories are holding up and if you need to make adjustments. Or how to tweak your budget so you can afford that destination wedding. You’ll be able to sync up as a team.

It’s a good idea to go over any upcoming expenses that aren’t in the budget or only come up occasionally. And you can talk about how you’re doing with your short-term financial goals as well as your long-term ones.

An example of longer-term money aspirations? You can take a closer look at how college expenses for your future kids are trending. Or what might be a good monthly retirement income for a couple.

Are There Any Downsides to Budgeting as a Couple?

Now that you know the positives, consider these potential negatives whether you are marking a married couple budget or budgeting as a couple living together:

•   A partner could feel as if they have less control over their money, which could be uncomfortable.

•   A person could feel as if their partner’s spending habits are challenging.

•   The full transparency of merging finances could be a problem for some people who don’t like sharing their financial life.

•   There could be more time and effort and potentially banking fees involved as you set up joint accounts and find a new way to operate as a team.

Budgeting and Saving with SoFi

The good news, especially for those who dig technology, is that there are plenty of online tools and apps that can help you put together a budget and manage your money as a couple.

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

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 is the best way to budget as a couple?

A key decision will be how much of your money to merge, looking at shared income and expenses, determining goals, and then finding a budget that works for both of you. Regular check-ins to see how you are managing your money are important too.

How do you split finances as a couple?

This will vary from couple to couple. Some will want to pool all of their resources and pay everything 50-50. Others may have circumstances (such as one partner having considerable credit card debt) that indicate a different arrangement may be necessary.

How much should a couple save per month?

How much a couple should save per month will depend on a variety of factors such as income, cost of living, and debt. However, many financial experts suggest saving 20% of one’s income is a good guideline.

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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.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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Selling things from around the house that you no longer need can be an easy way to make some extra money. If you have some valuable collectibles on hand, you might be able to turn them into more than just pocket change.

Some of the most valuable collectibles include vintage comic books, baseball cards, and toys. Taking a look through your attic, basement, garage, or closets might turn up some items that you could potentially sell for top dollar.

What Are the Most Valuable Types of Collectibles?

Some collectibles tend to be more valuable than others, and it’s helpful to know which ones might command the most (or least) money. As you’re sorting through your stuff, here are 10 of the highest-value collectibles to keep an eye out for.

1. Vintage Comic Books

Comic books are one of the most popular collectibles because of how much they can appreciate in value over time. Devoted comic book fans who want to grow their collections may be willing to drop hundreds or thousands of dollars on a single edition. Even if you’re not getting that much for old comics, you can still sell them to make a little money on the side.

What Makes Vintage Comic Books Valuable?

Rarity and condition usually determine how valuable a vintage comic book ends up being. First editions, limited runs, or editions that introduce a character for the first time are all examples of comic books that may sell for a lot of money. Comic books that are in mint or near-mint condition are usually priced higher, which makes sense as collectors may be willing to pay more for a book that has limited wear and tear.

What Is the Most Valuable Comic Book?

The most expensive private sale of a comic book on record involved an edition of Superman No. 1. The comic reportedly sold for $5.3 million in January 2022, making it the most valuable comic book in recent years.

2. Baseball Cards

Baseball cards are in-demand collectibles that you might be able to sell online, at sports memorabilia conventions, or at local hobby shops. Along with baseball cards, you might be able to sell other sports memorabilia, such as baseball bats, gloves, jerseys, pennants, miniature helmets, or figurines.

What Makes Baseball Cards Valuable?

How much are my baseball cards worth? The answer can depend on the age, rarity, and condition of the card. Of those factors, scarcity can have the biggest influence on what a baseball card will sell for. The fewer there are of a particular card, the more money you might be able to get for it if there are collectors actively seeking it out.

What Is the Most Valuable Baseball Card?

The most valuable baseball card of all time is a Honus Wagner card. Specifically, it’s the 1911 American Tobacco Company T206 card, which sold for $6.6 million at auction in 2021. Nicknamed “The Flying Dutchman,” Wagner is also among the first inductees to the Baseball Hall of Fame.

3. Vintage Bakeware

You might not give much thought to your mother or grandmother’s collection of casserole dishes, but they could be worth a fortune, depending on which ones they have. Vintage CorningWare and Pyrex dishes in particular can have a decent resale value if you’re able to find buyers who are looking for missing pieces to add to their collections.

What Makes Vintage Bakeware Valuable?

The value of CorningWare and Pyrex pieces is usually tied to their age, condition, and rarity. The actual design can also make a difference, as some patterns are considered to be more desirable by collectors than others. Pieces that feature patterns with limited runs or that are several decades old may command higher prices than ones that are more widely available.

What Is the Most Valuable Vintage Bakeware?

One of the most noteworthy examples of high-value vintage bakeware is the Lucky in Love line from Pyrex. A single bowl featuring the hearts and shamrocks design that the line is known for sold on eBay in 2022 for a winning bid of $22,100.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

4. Rare Coins

If you have a collection of old coins gathering dust, you might be sitting on a literal goldmine without realizing it. Coins are one of the most popular and most valuable collectibles, with many of the rarest editions fetching thousands at auction. While their face value may be relatively low, their collectible value can sometimes be astonishing.

What Makes Rare Coins Valuable?

The value of coins is typically tied to three things: age, rarity, and condition. The older and rarer a coin is, the more it’s going to be worth in most cases. Its condition plays a part, however, as two coins from the same period may not have the same value if one is in better condition than the other.

What Is the Most Valuable Rare Coin?

One of the most valuable coins in the world is the Saint-Gaudens Double Eagle, which was minted between 1907 and 1933. These coins are highly valued for their beauty and rarity — the 1933 Double Eagle coin is estimated to be worth up to $20 million.

5. Vintage Toys

Hanging onto old toys is something people may do if they hold sentimental value. But certain toys may have monetary value if they’re deemed to be collectibles. Examples of collectible toys can include dolls, action figures, and board games. Trendy and retro toys can also grow in value over time if collectors are giving them special attention.

What Makes Vintage Toys Valuable?

Whether a vintage toy is considered to be valuable or not can depend on things like its rarity, uniqueness, and age. A toy that was manufactured as a special or limited edition, for example, may become sought after by collectors if there are only a few of them to be had. Versions of toys that include manufacturing flaws that distinguish them from other versions may also prove valuable.

What Is the Most Valuable Vintage Toy?

Excluding a 2010 special edition Barbie, which technically doesn’t qualify as vintage, the most expensive toy sold at auction is a 1963 G.I. Joe prototype. Featuring hand-sewn clothing and a hand-painted face, the figure sold for $200,000 in 2003, before being donated to the Library of Congress in 2018.

6. Stamps

Collecting stamps is a popular hobby, and if you happen to inherit a collection from a parent or grandparent, you might be wondering what it’s worth. The answer could be anywhere from a few dollars per stamp to more than seven figures.

What Makes Stamps Valuable?

Stamps are assigned value based on a few things, starting with their rarity. For example, some of the most valuable stamps are ones that are the result of a misprinting. Their value is tied not only to the printing error but the fact that only a handful of them exist.

As with other collectibles, the condition of the stamp also matters. The more pristine a stamp is, the higher its value is likely to be.

What Is the Most Valuable Stamp?

One of the most valuable — and notable — stamps is the Inverted Jenny, issued in 1918. The stamp features an image of an upside-down Curtiss JN-4 biplane, and it’s believed that most of them have been destroyed or lost over the years. In 2019, a set of four sold at auction for $1.74 million.

7. Vintage Magazines

Vintage editions of popular magazines could easily be worth a few hundred or a few thousand dollars, depending on which ones you have. At the lower end, old magazines might sell for $5 to $20 per copy, which isn’t bad if you’re hoping to clear out clutter in your home and make a few dollars while you’re at it.

What Makes Vintage Magazines Valuable?

The value of a vintage magazine usually hinges on its age, rarity, and condition. A magazine that’s in mint or near-mint condition, for example, is likely to be worth more than one that has a torn or wrinkled cover, or is missing some pages. Editions of a magazine that’s now out-of-print may also be worth more than editions of a publication that’s still in operation.

What Is the Most Valuable Vintage Magazine?

One of the most valuable vintage magazines might surprise you. In 2021, a rare first edition of The Shadow No. 1 sold to a bidder for $156,000, making it the most expensive pulp magazine ever sold.

8. Antique Furniture

Antique furniture tends to be valued for both its age and its craftsmanship. A bed frame that’s hand carved, for example, is typically viewed as being more valuable than one that’s mass produced in a factory. Some of the most valuable furniture is associated with a specific style, such as Chippendale or Rococo.

What Makes Antique Furniture Valuable?

There are several factors that can make antique furniture valuable, including its:

•   Age

•   Construction

•   Materials

•   Hardware

•   Finish

Furniture that’s associated with a particular designer or stylistic movement can also be collectible. Authentic Shaker furniture, for instance, can easily sell for several hundred or several thousand dollars per piece. A professional appraisal is usually the best way to tell whether a particular piece of furniture is valuable.

What Is the Most Valuable Antique Furniture?

If you’re going by auction prices, the most valuable piece of antique furniture sold in recent years is The Badminton Chest. The chest, constructed in Florence and once believed to have been owned by the third Duke of Beaufort, sold at a Christie’s auction in 2004 for $36.7 million.

9. Jewelry

Jewelry, and related items like watches, are valuable collectibles to have simply because of their staying power. When you buy jewelry that is well made and features a classic design, it stands a better chance of withstanding the test of time. Necklaces, bracelets, brooches, rings, earrings, and pendants all have the potential to be considered collectible.

What Makes Jewelry Valuable?

Jewelry’s value is based on several factors, including the materials used to create the piece, the maker or designer, and its age. The rarer the materials or the more renowned the designer, the more a piece might be worth. The same is true for jewelry that features diamonds or precious stones. The higher the stone’s grading and the larger it is, the more value it may hold.

What Is the Most Valuable Jewelry?

As anyone who has purchased an engagement ring knows, jewelry can be pricey. The most valuable jewelry pieces are the ones that are either exceptionally rare or have some type of historical importance. Some of the world’s most expensive jewels include the Hope Diamond, the Cullinan Diamond, and the Koh-i-Noor Diamond, all of which have associations with royalty, and all of which are estimated to have valuations surpassing $100 million.

10. Antique, Classic, and Vintage Cars

Antique, classic, and vintage cars and other vehicles can also prove to be highly valuable, as these items tend to see strong demand from serious collectors. How much is my car worth? That’s a question an appraiser would likely need to answer, though you might be able to do some preliminary research using online valuation tools for vintage, antique, and classic vehicles.

What Makes Old Cars Valuable?

Valuations for antique, classic, and vintage cars can depend on several factors, including the vehicle’s age, condition, and mileage. How much of the original parts remain can also be a factor for vehicles that have been rebuilt or restored.

What Is the Most Valuable Antique, Classic, or Vintage Car?

Based on recent auctions, the most expensive collectible car is a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe. The vehicle sold for $143 million at a 2022 auction held at the Mercedes-Benz Museum in Stuttgart, Germany.

What Types of Collectibles Gain the Most Value?

Collectibles that gain the most value are typically ones that are rare and in demand. In addition to the examples mentioned above, other valuable collectibles can include:

•   Vintage golf clubs

•   Vintage children’s books

•   Vinyl records

•   Retro gaming sets

•   Artworks

•   Fine wines and liquors

•   Shoes

•   Handbags

•   Clothing

•   Perfumes

•   Old photographs

•   Vintage electronics

•   Antique firearms

•   Antique or vintage kitchen appliances

•   Vintage tools

•   Musical instruments

Keep in mind that there are distinctions between items that are antique, vintage, and retro. Something is usually considered to be antique if it’s 100 years old or older. For vintage items, the threshold is typically 40 years, while retro items are 20 years old. The time frames may be different for vehicle valuations, as collectors may assign an additional category of “classic.”

As a general rule, the older an item is the more valuable it tends to be.

Recommended: What Is a Financial Asset?

How to Sell Valuable Collectibles

Selling valuable collectibles begins with understanding what your items are worth. Getting them appraised by someone who’s knowledgeable about the type of item you have can give you an approximation of its fair market value. For example, if you have a collection of antique watches, then you might take them to a jewelry appraiser for a professional valuation.

Following an appraisal, you may want to take the additional step of getting your items certified as collectible. Having a certificate of authenticity or collectibility can prove to interested buyers that your item is the real deal.

When you’re ready to sell your items, you can research different outlets for doing so. Where you decide to sell can depend largely on what you have to sell. Some of the options for selling collectibles include:

•   eBay

•   Etsy (for vintage items)

•   Local antique buyers

•   Consignment stores

•   Craigslist

•   Facebook Marketplace

•   Local comic book stores (for vintage comic books and other pop culture collectibles)

•   Sports memorabilia dealers

•   Flea markets

•   Auction houses

Pawn shops are another option for selling collectibles if you need money in a pinch. Keep in mind, however, that you likely won’t get the full value of your item if you’re selling to a pawn shop.

Recommended: 27 Weird Ways to Make Money

What Might Be Considered a Collectible in the Future?

It’s difficult to say what may or may not become a collectible, as it can depend largely on trends and how value is assigned to different types of items. Collectibility can depend on several things, including:

•   An item’s novelty or rarity

•   Demand for that item

•   Whether the item has any special historical or social significance attached to it

Applying those tests can help to identify collectible items that have the best odds of growing in value. Examples of items that may be considered collectible in years to come include:

•   Funko Pops

•   Gaming consoles

•   First editions of books that are being published now

•   Trending toys

•   Autographed memorabilia, which may increase in value once the signer passes away

In general, the value of a collectible item largely rests on how many there are to collect and the condition of each one.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

If you’re looking for alternative types of investments to add to your portfolio, valuable collectibles are one option you might consider. It’s possible that you may have a treasure trove of collectibles that could be worth some serious cash sitting right under your nose at home. And while you’re looking for collectibles to sell, consider what else you can do to make the most of the money you already have.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.

FAQ

Are valuable collectibles considered a financial asset?

What is a financial asset? In simple terms, it’s something that has positive value; assets are things you own, like real estate, cars, or bank accounts. Since collectibles typically appreciate in value, they could be considered a type of financial asset.

How do I know if my old items are valuable?

Getting a professional appraisal is usually the best way to determine whether old items are valuable. An appraiser can look at the item to assess its age and condition and then use their knowledge and expertise to give you an estimation of its value.

What is the 100-year rule for antiques?

The 100-year rule for antiques assumes that in order for an item to be considered an antique, it must be 100 years old or older. Vintage items, meanwhile, typically earn that label if they’re at least 40 years old, while retro items are usually at least 20 years old.

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Photo credit: iStock/Kemal Yildirim

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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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Researching the most affordable places to live might be on your to-do list if you’re hoping to move to an area with a lower cost of living. Reducing household expenses can be one of the best ways to start building wealth, or at the very least, create some financial breathing room.

We’ve put together a list of the most affordable places to live in the U.S., based on things like housing costs and overall value for the money. Keep reading to learn which cities are rated as the most budget-friendly places to call home.

Most Affordable Cities in the US

If you’re considering how to move to another state and are interested in finding the most affordable places to live in the U.S., it helps to know what makes one city better than another. Things like housing costs, the cost of utilities, and what you’ll spend on food, transportation, and entertainment can all factor into your decision if you’re planning a move.

Keep in mind that the cost of living is not static, which can affect how affordable a city is at any given time. Additionally, the cost of living by state can vary dramatically based on factors like the size of the population, demand for housing, availability of jobs, tax laws, and average household incomes.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How We Found the Cheapest Places to Live

We compiled our list of the most affordable places to live in the U.S. based on the cost of living as it relates to housing. Specifically, we considered median rents for a one-bedroom apartment and median home sale prices for individual metro areas across the country. The cities that had the lowest cost of living in the U.S. overall, based on those criteria, are the ones that made the list.

What are some characteristics of the most affordable places to live? In general, the list includes:

•   An accessible housing market that isn’t pushing homeowners or renters to the limits of their budgets

•   Utility prices that are at or below the national average

•   Lower tax rates, including income tax, sales tax, and property tax

•   Pricing for groceries and fuel, as well as other goods and services, that align with the typical household income

Do the cheapest places to live always check all of these boxes? Not necessarily. But the most affordable places to live typically offer a cost of living that’s below the national average.

With that in mind, here are 10 of the cheapest places to live in the U.S.

1. Hickory, North Carolina

Median home price: $288,000

Median rent: $879

Hickory may be an ideal place to live if you love the outdoors. There’s plenty of access to hiking and biking trails and mild temperatures are perfect for kayaking or tubing down the Catawba River. In terms of affordability, Hickory offers housing and rental prices that are well below the national average. Plus, the city offers the additional advantage of being close to both Asheville and Charlotte.

2. Brownsville, Texas

Median home price: $225,500

Median rent: $700

Brownsville offers the dual advantages of moderately priced housing and being located in a state with no income tax. Home prices rise the closer you get to the Gulf of Mexico, but there are still plenty of budget-friendly options to choose from. Cold weather is a rarity here, which is a plus if you’re looking to move to a warmer climate. Keep in mind, however, that hurricanes and tropical storms occasionally pay visits to the Texas coastline.

3. Fort Wayne, Indiana

Median home price: $230,300

Median rent: $1,149

Fort Wayne could be ideal for home buyers looking for affordable housing. Renters don’t fare quite as well, as median rental prices are higher than some of the other cities included in our rankings. Overall, however, Fort Wayne has a low cost of living, and it offers a quiet place to call home while still having plenty of the amenities you’d expect to find in a bigger city.

4. Dayton, Ohio

Median home price: $207,600

Median rent: $736

Dayton is one of the most affordable places to live for both homeowners and renters alike, with home prices and rents that are well below the national average. The city of Dayton could be a good fit for families who are looking for access to a strong public school system, or for single people and childless couples who desire a relaxed pace. There are plenty of outdoor spaces to enjoy, as well as numerous options for dining and entertainment.

5. Sioux Falls, South Dakota

Median home price: $354,500

Median rent: $815

If you’re looking for an area with a low cost of living that experiences all four seasons of weather, Sioux Falls might be on your list. Housing is a little more expensive here compared to some of the other cities in our rankings, but rent prices may be appealing if you’re not quite ready to buy. There’s a thriving job market, and Sioux Falls offers plenty to do, including aquariums, museums, and parks.

6. Knoxville, Tennessee

Median home price: $395,000

Median rent: $1,256

The city of Knoxville attracts a diverse mix of people who are looking for an affordable place to live, including families, young professionals, college students, and retirees. Housing prices are on the higher side here, but the overall cost of living remains low. Knoxville offers plenty to do and see, which is great for people who are hoping to maintain a more active lifestyle. It’s also just over an hour away from the Great Smoky Mountains in case you want to get away from the bustle of city life for the weekend.

7. Erie, Pennsylvania

Median home price: $177,500

Median rent: $750

Erie boasts affordable housing for both renters and homeowners, along with lakefront views and access to good schools. Erie has low levels of crime and rates well for livability. Its population isn’t growing as quickly as other comparable cities, though whether that’s a pro or a con for you might depend on whether you prefer a larger city or a smaller one. Keep in mind that slower job growth can be a side effect of lower population growth, which is something to consider if you’re moving to Erie to explore career opportunities.

8. Huntsville, Alabama

Median home price: $350,000

Median rent: $975

Huntsville has a burgeoning economy, with plenty of opportunities for job-seekers. The cost of living is low overall, though a home may cost you a little more here compared to other cheapest cities on the list. Huntsville has a number of attractions to take in, including the U.S. Space and Rocket Center, along with some eye-catching natural scenery. One thing to note about the weather is that northern Alabama is often prone to seeing tornadic activity during the spring months.

9. Peoria, Illinois

Median home price: $120,000

Median rent: $695

Peoria might make your shortlist of possible candidates for a new place to live if you’re looking for affordability, good schools, and access to housing. There are plenty of young professionals and families living here, though the population isn’t so large that you’ll feel like you’re getting lost in the crowd. If there’s one potential downside to consider it’s crime. Property and violent crime rates are both above the national average.

10. Kalamazoo, Michigan

Median home price: $195,000

Median rent: $895

Kalamazoo is something of a cultural hotspot, with plenty of theaters, museums, and live music venues. The city hosts numerous community events year-round that always draw a crowd. From a cost perspective, Kalamazoo is highly affordable, and it attracts a lot of young people who are looking to start a career. There are a few downsides, however, including harsh winters and high poverty rates.

Recommended: 10 Most Affordable Cities Based on Cost Per Square Foot of Homes

Other Factors to Consider Before Deciding Where to Live

Cost can be a major concern when planning a move. For example, you might be debating the merits of renting vs. buying, or what you might pay for things like childcare if you’re a parent or health care if you don’t have insurance.

While the financial side of things is important, there are some other things to weigh when deciding where to move. That can include things like:

•   Job opportunities if you’re moving without a job lined up

•   Access to daycare and quality schools if you have kids

•   Crime rates and overall safety

•   Access to public transportation if you’re not taking a vehicle with you

•   Climate and whether the area is vulnerable to things like tornadoes, hurricanes, or wildfires

•   Population size and seasonality (for example, a beach town could get crowded once summer rolls around)

•   Recreation and entertainment

Last but not least, consider how much money you might need for the move itself. If you don’t have cash on hand to cover a moving van, security deposits, or other expenses, you might need to look into financing options. For example, getting a relocation loan for moving could make it easier to get settled in your new place.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

Keeping your budget in check — whether you’re relocating across the country or across town — is important when a move is in the works. For example, if you’re planning to buy a home in your new city, using an online home affordability calculator can help you pinpoint what price range you should be looking in for properties.

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FAQ

What determines cost of living for a city?

Cost living is influenced by several factors, including how affordable housing is in a given location, what people pay for transportation and food, and the cost of entertainment and recreation. Areas that have a higher cost of living may also offer a higher median household income, though the two don’t always go hand in hand.

How can I lower my cost of living?

Cutting expenses is a good way to reduce your cost of living. That might include making smaller cuts to your budget, or larger ones, like downsizing your home or moving to a cheaper city. Making a move might seem impractical, but it could yield significant savings if your cost of living in your new city is much lower than it was in your previous location.

Can I borrow money to move?

Moving loans can put cash in your hands that you can use to cover the expenses of relocating. For example, you might use a moving loan to hire professional movers, rent a moving truck, pay for shipping costs, or fund deposits if you’re renting a new place. You could also use a moving loan to help cover your expenses as you get settled in until you find a job.

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Photo credit: iStock/Ridofranz

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