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Even if you haven’t thought about diesel mechanics before, chances are you’ve benefited from their expertise. These skilled technicians fix the machines that harvest our food, the generators that provide electricity when the power goes out, the big rigs that ferry our goods across the country, and so much more.

Being a diesel mechanic requires a certain skill set and level of training. Generally speaking, they tend to earn slightly more than auto mechanics. According to the latest figures from the U.S. Bureau of Labor Statistics (BLS), the median pay for a diesel mechanic is $59,920 per year, or $28.81 per hour. (By comparison, the median pay for an auto mechanic is $51,940 per year, or $24.97 per hour.) However, pay rates can vary depending on where a technician works and their level of experience.

What Is the Starting Salary for a Diesel Mechanic?

If you’re just starting out as a diesel mechanic, you probably won’t earn the median salary of $59,920. According to the BLS, 10 percent of workers — most likely those new to the field — earn closer to $39,020, or $18.76 per hour. In some states, this rate is only a few dollars more than minimum wage.

Whether you’re paid a set weekly salary or hourly rate, starting out as an entry-level diesel mechanic can be challenging. The wages may be difficult to live on, especially if you have a lot of financial obligations or live in a place with a higher cost of living.

But if working with machinery and, in particular, on diesel engines is what you really want to do, it can be worth any initial sacrifices. And the good news is, diesel mechanic jobs are expected to continue to grow. So in time, you can move up the ladder or seek out a new job to increase your yearly salary.
In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

What Do Diesel Mechanics Do?

Diesel mechanics inspect, repair, and maintain vehicle engines that run on diesel fuel. This includes everything from trucks, overhaul buses, and trains, to cruise ships, generators, and construction and agricultural equipment. Their goal is to make sure vehicles are safe for both drivers and passengers.

A diesel mechanic position is a manual labor trade job you can get without a college degree, though most employers want diesel techs to have at least a high school diploma or a GED equivalent. While you don’t need secondary education to do the job, you do need specialized training, which can be acquired on the job, through a certificate program, or by attending a trade or vocational school.

And though diesel mechanics may need to occasionally speak with customers about issues with the vehicles, it can be a good job for introverts.

Recommended: 25 High-Paying Trade Jobs in Demand

Examples of a Diesel Mechanic’s Job Responsibilities

There are many daily responsibilities for a diesel mechanic, ranging from simple servicing to major repairs. For instance, when examining a diesel engine, the mechanic can run a diagnostic test to determine if the engine is running properly. If there’s a problem, a diesel mechanic can replace a vehicle’s engine, transmission, steering, and braking systems.

Here are some other essential work duties a diesel mechanic typically performs:

•   Identifying any engine malfunction issues

•   Securing the parts needed for servicing

•   Test driving vehicles for performance

•   Communicating issues about the vehicle to the customer and advising them on how best to maintain the machinery

•   Keeping detailed work records on engines serviced

What Is the Starting Salary for a Diesel Mechanic?

If you’re just starting out as a diesel mechanic, you probably won’t earn the median salary of $59,920. According to the BLS, 10 percent of workers — most likely those new to the field — earn closer to $39,020, or $18.76 per hour. In some states, this rate is only a few dollars more than minimum wage.

Whether you’re paid a set weekly salary or hourly rate, starting out as an entry-level diesel mechanic can be challenging. The wages may be difficult to live on, especially if you have a lot of financial obligations or live in a place with a higher cost of living.

But if working with machinery and, in particular, on diesel engines is what you really want to do, it can be worth any initial sacrifices. And the good news is, diesel mechanic jobs are expected to continue to grow. So in time, you can move up the ladder or seek out a new job to increase your yearly salary.

In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

What Is the Average Diesel Mechanic Salary by State?

If you’re considering going into the field, you may be wondering how much a diesel mechanic makes a year. As previously mentioned, the median pay for a diesel service technician and mechanic is $59,920 per year, or $28.81 per hour.

Keep in mind that in certain areas, there’s an increased demand for diesel mechanics, which means there’s a greater chance pay rates will be higher. Per the BLS, here’s the average diesel mechanic salary by state.

State	Annual Salary
Alabama	$51,760
Alaska	$69,760
Arizona	$57,470
Arkansas	$50,800
California	$69,850
Colorado	$65,250
Connecticut	$67,100
Delaware	$60,480
Florida	$56,900
Georgia	$58,200
Hawaii	$70,010
Idaho	$56,350
Illinois	$64,670
Indiana	$58,230
Iowa	$55,810
Kansas	$53,420
Kentucky	$51,530
Louisiana	$51,530
Maine	$54,350
Maryland	$64,800
Massachusetts	$68,030
Michigan	$57,090
Minnesota	$63,110
Mississippi	$49,070
Missouri	$56,560
Montana	$54,530
Nebraska	$53,270
Nevada	$62,030
New Hampshire	$62,160
New Jersey	$65,540
New Mexico	$53,480
New York	$69,710
North Carolina	$54,240
North Dakota	$62,470
Ohio	$55,450
Oklahoma	$52,770
Oregon	$60,920
Pennsylvania	$56,210
Rhode Island	$60,970
South Carolina	$52,060
South Dakota	$59,570
Tennessee	$56,630
Texas	$57,020
Utah	$59,270
Vermont	$60,360
Virginia	$56,520
Washington	$69,620
West Virginia	$49,440
Wisconsin	$59,650
Wyoming	$57,840

Recommended: The Highest-Paying Jobs in Every State

Diesel Mechanic Job Considerations: Pay and Benefits

Looking for a diesel mechanic job? Along with researching positions with competitive pay, it’s important to factor in employer benefits.

Here are common employee benefits offered to diesel mechanics:

•   Health, dental, vision, and life insurance

•   401(k) with possible employer match

•   Tuition reimbursement

•   Flexible Spending Account (FSA) and/or Health Savings Account (HSA)

•   Paid sick days, vacation, and holiday pay

•   Parental leave

•   Stock options

•   Profit sharing

•   Low prescription drug costs

•   Wellness programs, such as free counseling services

Pros and Cons of a Diesel Mechanic’s Salary

When it comes to a diesel mechanic’s earnings, there are potential upsides and downsides you’ll want to keep in mind.

Advantages of a Diesel Mechanic’s Salary	Disadvantages of a Diesel Mechanic’s Salary
Salary can be comfortable depending on state or city where you work	Wages may not be enough if you live in a state or area with a higher cost of living
Steady work schedule with opportunities for overtime pay	Salaried workers may not be entitled to overtime pay
Pay can rise with career experience, increased job education from extra certification, training programs, or vocational school	Lack of work experience and little to no training can mean a lower salary when you first start out
Can receive a commission, tips, or bonus in addition to base salary, depending on the company	Employers may not offer commissions or bonuses, and employees may not be allowed to accept tips

The Takeaway

The median pay for a diesel service mechanic is $59,920 per year, or $28.81 per hour, according to the latest figures from the BLS. However, that amount can vary by state, and there may be opportunities to earn more with additional training and experience. Diesel mechanics are in demand, and jobs are expected to continue growing. This means skilled technicians may have opportunities to join companies that offer benefit packages, potentially move up the ranks, and even increase their take-home pay.

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.

See exactly how your money comes and goes at a glance.

FAQ

What is the highest-paying diesel mechanic job?

According to the BLS, the highest salary for a diesel mechanic clocks in around $82,430 a year. Types of diesel mechanics who generally make more money include those who work on heavy-duty trucks, tractor trailers, and water-based vessels such as cargo and cruise ships.

How much does a diesel mechanic earn in the Bay Area?

The average annual diesel technician salary in San Francisco is $83,370, according to the BLS. That works out to an average hourly rate of $40.08.

Is being a diesel tech worth it?

For people who enjoy working with their hands and have an interest in the workings of machinery, becoming a diesel tech can be a rewarding career. The field offers opportunities for constant learning, increased expertise, job stability and room for career advancement.

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Photo credit: iStock/sathit trakunpunlert

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.

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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Linemen are critical for keeping utility services running smoothly. If you’re interested in this career path, you might be wondering how much does a lineman make a year. The mean annual salary for electrical power line installers and repairers was $85,900 in 2023, according to the Bureau of Labor Statistics (BLS).

It’s possible to make more money (or less) depending on how many years of experience you have and where you’re employed. Looking at hourly and annual wage data can provide a clearer answer to the question of how much money does a lineman make.

What Is a Lineman?

A lineman or line installer and repairer is someone who works with electrical power systems and telecommunications systems. The typical duties and responsibilities of a lineman include:

•   Installing, maintaining, and repairing electrical power lines

•   Identifying defective components within electrical systems, such as transformers or voltage regulators

•   Erecting power poles and stringing electrical lines

•   Inspecting and testing power lines and equipment

•   Operating power equipment to complete repairs or installations of electrical system components

Linemen can work in different specialty areas. For example, some linemen exclusively work on electrical power substations, while others may install and repair fiber optic cables. Line repairers may be dispatched to repair electrical lines or telecommunications systems following a natural disaster, such as a hurricane.

A lineman’s work requires being outdoors much of the time. Unlike retail or restaurant workers, they typically have limited interaction with the public, which could make this one of the best jobs for introverts.

However, they still have to communicate with colleagues, so it’s not necessarily one of the best jobs for antisocial people who prefer to work alone.

How Much Does a Starting Lineman Make?

What is a good entry-level salary for a lineman? Entry-level salaries for electrical linemen vary depending on where they’re located, their educational background, and which company they’re employed with. At the low end of the spectrum, lineman jobs pay an annual wage of $48,220, according to the BLS.

How does salary vs. hourly pay compare for linemen? Again at the low end, a starting lineman makes $23.18 an hour, according to BLS data. At the high end of the scale, a lineman earns $57.66 per hour or $119,920 in annual salary. These estimates assume that a full-time schedule for a lineman works out to 2,080 hours per year.

When discussing how much does a lineman make an hour, it’s important to consider the bigger picture. The actual hourly wage for a lineman can depend on how many hours they work per year and how many of those hours are paid at their regular wage, versus overtime pay or time-and-a-half.

Hourly and annual pay for linemen can increase as they gain more experience. For example, if you’re asking how much does a journeyman lineman make, you’re likely to get a different answer compared to someone who’s just starting out. Journeyman linemen are fully trained and can have years of experience, while a regular lineman may still be at the apprentice stage.

As you climb up the ranks of your field, you’ll likely see a bump in pay. An online budget planner can help you create budgets, manage upcoming bills, and monitor your credit score — for free.

What Is the Average Salary for a Lineman?

The mean annual salary for a lineman is $85,900, according to the BLS, while the median salary is $85,420 per year. The median lineman salary reflects the middle ground between the highest and lowest salaries. Average salaries reflect the mean of all salaries earned by linemen.

The average lineman salary by state may be higher or lower than the national average. Here’s a comparison of the average lineman salary by state, based on BLS data for 2023.

Average Lineman Salary by State for 2023
State	Annual Salary	State	Annual Salary
Alabama	$79,090	Montana	$99,530
Alaska	$102,580	Nebraska	$75,660
Arizona	$84,070	Nevada	$71,840
Arkansas	$71,980	New Hampshire	$97,440
California	$111,960	New Jersey	$103,140
Colorado	$91,840	New Mexico	$70,390
Connecticut	$94,930	New York	$108,670
Delaware	$88,150	North Carolina	$72,750
Florida	$77,950	North Dakota	$96,550
Georgia	$75,100	Ohio	$82,500
Hawaii	$110,660	Oklahoma	$67,510
Idaho	$97,260	Oregon	$100,100
Illinois	$99,520	Pennsylvania	$92,370
Indiana	$88,680	Rhode Island	$106,880
Iowa	$88,360	South Carolina	$69,970
Kansas	$86,740	South Dakota	$81,750
Kentucky	$74,300	Tennessee	$71,120
Louisiana	$70,820	Texas	$72,820
Maine	$86,970	Utah	$75,430
Maryland	$91,190	Vermont	$96,260
Massachusetts	$97,160	Virginia	$74,450
Michigan	$94,660	Washington	$107,450
Minnesota	$94,550	West Virginia	$77,700
Mississippi	$67,960	Wisconsin	$98,460
Missouri	$86,530	Wyoming	$89,550

If you’re wondering what trade makes the most money, jobs in the electrical field certainly make the list. When you look at the bigger picture, lineman positions can be some of the highest paying jobs by state.

In terms of what is competitive pay for a lineman, it’s easy to see that some states have a much higher average salary than others. The top states for lineman jobs, which includes California, pay $100,000 or more a year on average. But is $100,000 a good salary for this kind of work? That’s an important question to ask, since this type of job can be more physically intensive — and dangerous — than others.

Whether a six-figure salary is good or not can depend largely on how you use it. If you’re focused on saving, then $100K a year might go pretty far. (A money tracker can help you keep tabs on your finances.) On the other hand, if you’re struggling with debt or don’t keep a regular budget, then you might have a hard time making ends meet, even with six-figure pay.

Lineman Job Considerations for Pay & Benefits

Becoming a lineman may require no more than a high school diploma or equivalent. Instead of earning a bachelor’s or advanced degree, you may learn everything you need to know on the job through hands-on training. Most linemen work regular business hours and schedules, though they may be expected to work weekends or respond to emergency calls for service.

If you’re working full-time, your employer may offer a benefits package that includes health insurance, a retirement plan, and other perks. That, along with a solid annual salary, can make this kind of work appealing.

Again, how much much money a lineman makes can depend on what kind of experience they have and where they’re located. Living in California or New York, for example, can help you unlock higher pay. However, that can also mean dealing with a higher cost of living, which can put more of a strain on your paycheck. And of course, inflation can also affect your hourly wage.

Pros and Cons of Lineman Salary

It’s easy to be persuaded that a career as a lineman could be worthwhile when you’re looking solely at the average annual salary. If you’ve paid attention to any of the recent discussions about raising the minimum wage, you should be aware that linemen make a significantly higher hourly rate.

Making more money can be a good thing if you’re able to reach your financial goals. That might include starting an emergency fund, putting money away for retirement, or paying down debt. As mentioned, lineman jobs can also come with good benefits, depending on where you’re employed.

Now, what about the cons? Lineman work can be stressful and may involve working long hours if you’re repairing power lines after a natural disaster. You may be required to work in less than ideal weather conditions, including extreme cold or heat. A lot of driving can be involved if you’re constantly moving from one location to another.

The job itself can be dangerous, since linemen routinely climb power poles and deal with high-voltage electricity. Minor or major injuries and even deaths can occur on the job. While linemen are specially trained to deal with different types of emergencies, this is still one of the most hazardous occupations overall.

The Takeaway

Working as a lineman is something you might consider if you’d like to bank a higher salary and you don’t mind physically strenuous work outdoors. Comparing the average lineman salary by state can be helpful when deciding where to apply for a position.

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.

See exactly how your money comes and goes at a glance.

FAQ

What is the highest salary for a lineman?

The highest average salary by state for a lineman is $111,960. That’s what linemen in California earn on average per year. Where you live and work can make a difference in how much money you can make as a lineman, as some states have much higher average pay than others.

Does a lineman make six figures?

There are lineman jobs that pay six figures per year. Whether you can make six figures as a lineman will depend largely on your experience and where you live.

What does a lineman make in Texas?

Texas is one of the lower-paying states for lineman jobs. The average annual salary for a lineman in Texas is $72,820, according to the Bureau of Labor Statistics. Whether that’s a good salary to live on can depend on your expenses and which part of Texas you call home.

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Photo credit: iStock/Prapat Aowsakorn

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.

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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Ideas for making money at home are everywhere. And some of the best ones revolve around things you can do online or off, using skills and experience you already have.

Figuring out which money-making idea works for you often depends on how much time you have and how much extra income you’re interested in generating. You might start a side hustle, explore small business ideas, look for passive income options, or get a full-time remote job.

Need some inspiration? Here are more than 40 options to consider.

40+ Creative Ways to Make Money

Creative thinking is key to finding different ways to earn an income, especially if your goal is to learn how to make money with no job. Some of the easiest ways to earn extra cash from home are selling a service (i.e., your time and skills) or selling a product.

Can you earn money online without selling anything? Absolutely, and there are plenty of ways to do it. We’ve broken down some different ideas by category to help you find your perfect money-making idea.

Recommended: Free Credit Score Monitoring

Money-Making Craft Ideas

Selling handmade crafts can be an excellent way to turn a hobby into a side hustle or full-fledged business. You don’t necessarily need to be an expert artisan to get started.

Craft trends come and go, but here are some classic products to consider trying:

•   Crocheted items, such as scarves or baby clothes

•   Handmade soap

•   Handmade candles

•   Bath bombs and bath scrubs

•   Paper goods

•   Jewelry

•   Lip balms

•   Home decor items

•   Lamps and lighting

•   Pillows

•   Vinyl stickers or decals

•   Handpainted signs

•   Hair accessories

•   String art

•   Art prints

•   Tote bags

•   Wreaths

•   Holiday decorations

•   Bookmarks

•   Keychains

•   Dog bowls and other pet accessories

Once you zero in on your craft idea, think about how much time you’ll need to make each item and how much money you’ll need to spend on supplies. This can help you figure out how to price each item and how much profit you stand to make. Tip: Do some online research and see how other sellers are pricing and marketing their items.

Another important consideration is where you sell your goods. Luckily, there’s no shortage of options — here are some to consider:

•   Facebook Marketplace

•   Local Facebook bargain or community groups

•   Etsy

•   Amazon Handmade

•   aftcra.com

•   Craigslist

•   eBay

•   Your own website

•   Craft fairs

•   Local boutiques

If you’re selling your crafts online, remember to factor in shipping costs, taxes, and any fees the platform charges when setting your prices. Otherwise, you could end up shrinking your total profit.

Money-Making Website Ideas

You don’t need a website to earn extra cash from home, but having one could open up new money-making opportunities. To set up a website, you’ll need to find a hosting company and choose a domain. Your domain is your site name.

Once your site is set up, there are several ways you could use it to make money:

Selling products

A website is a great way to sell products you create, such as an e-book, digital printables, or an online course. If you’re selling handmade items, like crafts or clothing, you could set up a shop page on your site instead of using a third-party selling platform.

Selling services

If you don’t want to make a product, you could try selling a service instead. For example, you might use a website to offer services such as writing, photography, graphic design, tutoring, or online coaching.

Affiliate marketing

Affiliate marketing means recommending products and services sold by other people, then collecting a commission when the person you referred makes a purchase. For instance, if you have a pet blog, you could include an affiliate link to your favorite dog food brand. When someone clicks the link and buys the dog food, you make money.

Ads

Hosting ads on your website is another way to potentially earn extra cash from home. Every time someone visits your site and views an ad, you make money. The more traffic — or views — your website gets, the more you could earn.

Sponsored content

Sponsored content is an article, video, social media post, or other type of content that someone pays you to create and post. So again, say you have a pet blog. A dog food company might reach out and ask you to write a sponsored post reviewing their newest product. In turn, they pay you a flat fee for writing and publishing the post. You could also make money if your readers buy the product through your affiliate link.

If you’re interested in making money with a website, it helps to learn more about how to drive traffic. For example, it’s a good idea to know how search engine optimization (SEO) works and how to use it to drive people from Google or other search engines to your site. You may also want to consider how you can use social media to send additional traffic your way.

Money-Making Business Ideas

Thinking about becoming your own boss? If you prefer online business ideas, there are plenty of opportunities to consider, including:

•   Coaching or consulting

•   Interior design

•   Freelance writing or editing

•   Starting an e-commerce store

•   Virtual accounting

•   Transcription services

•   Teaching online through a platform like Outschool

Now, what could you do offline to make money from home? Some small business ideas you might pursue could include starting a home baking business, offering childcare services in your home, or tutoring.

If you’re interested in starting a home business, it’s important to check into any legal requirements in your state first. For example, if you want to launch a baking business from home, you might be subject to local or state restrictions on home kitchens. The same applies if you want to care for children in your home. Once you reach a certain number of children, you may need to register with the state as a daycare center.

Side Hustle Money-Making Ideas

There are lots of low-stress ways to earn money. Will these opportunities make you rich? Not necessarily. But they could be a good way to earn some extra cash in your spare time without a lot of effort.

Here are some ideas to explore:

•   Taking online surveys

•   Joining an online focus group

•   Selling things you no longer need

•   Getting paid to watch videos, play games, or read emails

•   Customer service representative

•   Earning free gift cards or money with cashback apps

•   Becoming a mock juror online

•   Getting paid to test websites or apps

Home Jobs to Avoid

While there are lots of ideas for making extra money, some are better than others. Here are ones to avoid:

•   Illegal side hustles or jobs

•   Work-from-home job scams

•   At-home jobs that require a lot of work for little pay

•   Pyramid schemes or multi-level marketing (MLM) programs

There’s a simple rule of thumb to keep in mind when researching ways to earn extra cash: If something seems too good to be true, it probably is. Words and phrases like “guaranteed,” “make money while you sleep,” or “easy money” are often telltale indicators that an at-home job opportunity isn’t everything it seems. It’s also a good idea to be wary of any work-from-home job that requires you to pay fees or a deposit up front before getting started.

Tips for Making Money From Home

If you’re pursuing money-making ideas from home, it helps to know some of the do’s and don’ts so you can avoid job scams while maximizing your earning potential.

When exploring ways to make money from home, do:

•   Look for opportunities that fit your skill set or interests

•   Consider how much time you can put in to making money

•   Weigh any up front investment of time or money that might be required

•   Remember to keep track of work-related expenses using a spending app

•   Report the income you earn on your taxes if you’re required to do so

When looking at ways to make money from home, don’t:

•   Assume it’s easy to make money online

•   Give out personal or sensitive information to people you don’t know

•   Fall for work-from-home job scams

•   “Forget” to report the money you make on your taxes

•   Get frustrated and give up if you’re not making money right away

Also, don’t be afraid to try and try again if something isn’t working out. After all, there’s no single option for how to make extra income from home. You may start off doing one thing and find that another side hustle or job idea is a better fit. And you don’t have to limit yourself to just one thing either — having multiple side hustles can mean multiple streams of income.

The Takeaway

Whether you’re selling goods online, starting a business, or using your website to turn a profit, there’s no shortage of ways to make money from the comfort of home. In fact, you may discover there are multiple opportunities that fit your schedule and interests. As you’re researching your options, factor in how much time and money is required. It’s also a good idea to be wary of opportunities that sound too good to be true, because they probably are. Once you start drawing an income, don’t forget to report it on your taxes, if you’re required to do so.

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.

See exactly how your money comes and goes at a glance.

FAQ

How can I make $100 a day from home?

Some of the best ways to make $100 a day from home include taking surveys for money, using cashback apps to shop, offering freelance services, and selling printables or handcrafted items online. You can also make $100 a day from home by flipping items you no longer need on sites like eBay, Facebook Marketplace, or Craigslist.

How can I make fun money?

If you just want to make some extra money to spend on “fun,” some of the easiest ways to do it include selling things you no longer need, doing odd jobs in your spare time, or getting paid to take surveys and play games through various mobile apps. You can also research weird ways to make money, like donating plasma or selling your hair.

How can I make money just sitting at home?

Some of the best ways to make money sitting at home are passive income ideas that require little to no work. For example, you may be able to make passive income by investing in stocks that pay dividends, setting up an affiliate marketing website to earn commissions when people shop at your affiliate partners, or opening a digital printable shop on sites like Etsy.

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Home equity loans and lines of credit (HELOCs) can put cash in your hands to fund home improvements, debt consolidation, or other financial goals. But if you have a HELOC, what happens if you sell your house?

The good news is that you won’t carry the debt with you. Balances owed to HELOCs are paid off using proceeds from the sale. (The same is true of selling a house with a home equity loan.) This is a requirement before the property can change hands.

Understanding HELOCs and Home Sales

Can I sell my house if I have a HELOC? Absolutely, though it’s important to understand how having a HELOC to repay affects the sale process and the amount of profit you get to walk away with.

Here’s a simple HELOC definition: A HELOC is a revolving line of credit secured by your home. When a home is sold, any debts attached to the property, including all mortgages, must be cleared so the new owner can take possession. That applies to your primary mortgage as well as any HELOCs or home equity loans you owe.

HELOCs and home equity loans are junior liens. A lien is a legal claim against a piece of property that protects a lender or creditor’s interest in it. Junior liens are subordinate to senior liens, which in the case of a home would be your primary mortgage — assuming you still have one. Liens, whether senior or junior, must be cleared before a piece of property can be sold.

In other words, you can’t take your HELOC with you. Once the HELOC is paid off after you sell, you won’t have access to your line of credit any longer.

Recommended: HELOC Loan Guide

Settlement of HELOC Upon Sale

HELOC debts must be settled when you sell the home; you can’t take your line of credit with you. Settlement means the debt is paid or cleared and is no longer attached to the property. Here’s what happens to a HELOC when you sell your house.

Paying Off the HELOC Balance

Who handles the repayment of a HELOC balance when a home is sold? Typically that responsibility falls to the title company. Title companies conduct title searches when a home is sold to ensure that there are no outstanding liens on the property. They also offer title insurance to buyers.

HELOC payoff happens during the closing process.

•   The title company requests a payoff amount from the HELOC lender.

•   Funds to buy the home are sent to an escrow account that’s controlled by the title company.

•   The title company uses funds from the escrow account to pay off the HELOC lender, along with your primary home loan.

•   All remaining funds are forwarded to the seller.

Can you pay off a HELOC prior to closing? Certainly, though you’d need to come up with the money to do so out-of-pocket. If you don’t have cash on hand to settle the debt, you’ll need to use the proceeds from the sale.

Once a HELOC is paid off, you can check state or county property records where you live to make sure the lien was released. Lien release means the debt is cleared from the home.

Closing the HELOC Account

After a HELOC is paid off, you’ll need to make sure the line of credit is closed, since this may not happen automatically. Your lender might require documentation to close your HELOC, including:

•   Closing documents showing proof of sale

•   Payment receipts from the title company showing the HELOC was paid off

•   Authorization from you to close your credit line

In turn, you should get a statement in writing from your lender attesting to the HELOC’s closure. It’s also wise to follow up with a check of your credit reports to make sure your line of credit is listed as closed and paid in full or paid as agreed.

Impact on Sale Proceeds

Selling a house with a home equity loan or HELOC shrinks the amount of profit you get to keep. The share of proceeds you keep depends on how much you owe on the home, including the first mortgage and HELOC, and the sale price.

Deduction of HELOC Balance from Sale Proceeds

When a home is sold with a HELOC, it’s usually the title company that handles repayment of the debt. The upside is that you don’t have to worry about calculating how much you’ll need to pay to settle the HELOC or arrange for payment to be sent to the lender.

Instead, the money comes right off the top. So, for example, say you sell your home for $500,000. You owe $250,000 on your first mortgage and $50,000 to a HELOC. After you deduct $300,000 for the combined mortgage debt, you’d be left with $200,000.

Potential for Remaining Equity

Selling a home with a HELOC assumes that your home’s value has increased since you bought it. If your home value climbed substantially, it’s possible that you could still have a decent amount of equity in the home even if you sell it with a mortgage and a HELOC in place. You may find it helpful to calculate your total equity before making a move to sell a home with a HELOC. You just need to know what you owe on the home in combined mortgage debt and your home’s approximate value.

A home equity calculator can help with this step. You can then decide what you’d like to do with the proceeds from the sale, once your HELOC is paid off. For example, you might apply it as a down payment on the next home you buy.

When you’re ready to buy your next home, you can research what’s required for mortgage preapproval and shop around to find the best mortgage rates. Some options, like FHA loans, allow for a smaller down payment.

Considerations for Underwater HELOCs

Being underwater in a home means you owe more than it’s worth. So, what happens to a HELOC when you sell upside down? And can you sell in that scenario? The answer is yes, but being underwater can add a wrinkle to the process.

Insufficient Sale Proceeds to Cover HELOC

Your first mortgage takes priority for payoff when you sell a home. Any proceeds go to that loan first, before money is directed toward HELOC debt. If the sale proceeds aren’t enough to cover your first mortgage and HELOC, you end up in a negative equity scenario.

That means you’ll need to make up the difference in cash for the sale to go through. You may need to pull money from savings, liquidate some of your investments, or borrow from your retirement account to cover the gap. If you can’t or don’t want to do any of those things, you’ll have to look at other ways to deal with negative equity.

Options for Addressing Shortfalls

There are a few routes you might pursue to deal with a shortfall when selling a home with a HELOC. The possibilities include:

•   Delay the sale. You might decide to push the sale back to allow your home’s value to rise or to pay down some of the HELOC balance. Whether that’s feasible for you can depend on your reasons for selling. A HELOC repayment calculator can help you see how you will progress if you start making steady payments to chip away at what you owe.

•   Short sale. A short sale is an agreement between you and the lender to let you sell the house for less than what you owe. If you have a HELOC and a mortgage, both lenders would have to agree to a short sale.

•   Pay off the HELOC with another loan. While not ideal, you might consider getting a personal loan or line of credit to pay off your HELOC. This only moves debt around; it doesn’t reduce what you owe. But it can clear the lien on the home associated with the HELOC so the sale can go through.

Prepayment Penalties and Fees

Before you move to pay off a HELOC, whether to sell your home or for any other reason, read the fine print. Specifically, it’s important to check for prepayment penalties and other fees the lender might impose.

Early Termination Fees

When you get a HELOC, it comes with a set repayment term. For example, you might have five years in which to access your credit line and then 15 years after that to pay back what you borrowed.

Lenders may impose an early termination fee or prepayment penalty if you pay a HELOC off early. These fees are designed to help the lender recoup some of the interest they won’t get to collect as a result of you paying off your HELOC ahead of schedule.

If you owe a prepayment penalty, that money will be deducted from the sale proceeds when your HELOC is paid off. Understanding when this fee applies, if your lender charges one, and how much you’ll pay can help you calculate your net profit from the sale.

Reviewing HELOC Terms

Ideally, you scrutinized the terms of your HELOC agreement before you ever signed on the dotted line. But if you didn’t read through it that closely, or you did but now you’ve forgotten what it says, it’s time for a thorough review.

•   Go through your HELOC terms line by line to understand:

•   How long the repayment term lasts

•   If and when a prepayment penalty or early termination fee applies

•   How the fee is calculated, if applicable

•   When the fee is avoidable

•   Any other fees you might pay to close out a HELOC early

If there’s something in your agreement you don’t understand, don’t hesitate to ask the lender for clarification. The home selling process is hectic enough, and the last thing you need is to be blindsided by surprise fees.

Recommended: What Is a Home Equity Loan?

Steps to Manage Your HELOC Before Selling

If you’re ready to sell your home, it’s important to include HELOC planning on your to-do list. There are two critical steps to tackle before you head to the closing table.

Obtaining a Payoff Statement

A payoff statement offers a detailed breakdown of how much you’ll need to pay to close out a HELOC, including the principal, interest, and fees. You can request a payoff statement from your HELOC lender, though keep in mind the numbers may change slightly as your closing date approaches.

You can use the amount on your payoff statement to estimate how much will be left from the sale proceeds after your first mortgage and HELOC debt are paid. If you have an online account that you use to manage your HELOC, you may be able to log in and request an accurate payoff amount. Otherwise, you’ll need to reach out to the lender directly.

Planning for Closing Costs

Both sellers and buyers have closing costs they’re responsible for paying. The amount you have to pay can depend on the details of the transaction and where you live. Typical seller closing costs can range from 8% to 10% of the home’s sale price.

These costs are most often paid from the sale proceeds. So you’ll need to factor that into your calculations when estimating your profit.

Going back to the previous example of a $500,000 home sale, your closing costs could add up to between $40,000 and $50,000. If you deduct that from your estimated $200,000 in profit, you’d actually walk away with $150,000 to $160,000 instead.

The Takeaway

Understanding what happens to a HELOC when you sell your house can help you navigate the process with as few headaches as possible. And if you own a home but haven’t tapped into your equity yet, knowing what to expect can help you understand whether the time is right for a HELOC based on when you might want to sell.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit brokered by SoFi.

FAQ

Will I owe money if my home sells for less than the HELOC balance?

If you’re upside down on your home when you sell with a HELOC, you’ll have to make up the difference to pay the line of credit off. If you can’t do that, you may need to delay the sale, arrange a short sale with the lender, or get a personal loan to pay the HELOC in full.

Are there fees associated with closing a HELOC when selling my house?

HELOC lenders may charge early termination fees or prepayment penalties if you pay your line of credit off ahead of schedule. If you owe this fee, it’s deducted from the sale proceeds, along with the amount needed to pay off the HELOC.

How does selling my home affect my credit score if I have a HELOC?

A paid-off HELOC can help your credit score since it shows you can handle debt responsibly. That impact, however, may be counterbalanced by the effects of applying for a new mortgage loan if you’re buying another home.

Can I transfer my HELOC to a new property after selling?

HELOCs are secured by your home so if you’re selling, the line of credit doesn’t transfer with you. If you’re interested in getting another HELOC, you’ll have to apply for a new one once you buy another home.

What happens if I don’t pay off my HELOC before selling my house?

If you don’t pay your HELOC off yourself before selling, then the HELOC balance is deducted from your sale proceeds. The title company handles repayment of HELOC debt for you from your sale proceeds, then passes on the remaining funds from the sale to you at closing.

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The 50/30/20 budget rule (aka the 50 30 20 rule) is a simple budgeting technique that involves dividing your money into three basic buckets. It can be an effective way to manage your earnings, allocating 50% of your take-home income to “musts,” 30% to “wants,” and 20% to saving for your future.

For anyone who has ever felt that budgeting was too complicated and headache-triggering to take on, this guideline can make things clear and easy.

What Is the 50/30/20 Rule?

The 50/30/20 budget or “rule” is a budgeting framework that can be relatively easy to create and implement. It’s one potential way to help keep your finances on track and help you work towards your goals.

The 50/30/20 numbers refer to percentages of your take-home income that you would allocate to three main categories: ”needs” or “musts” (essentials), “wants” (nonessentials), and saving (financial goals), respectively.

The primary goal of the 50/30/20 rule is to learn to prioritize saving money by making it a key part of your spending plan.

Everyone’s financial needs and goals are different, however. And, while these percentages can be a great starting point, you may find that you need to tweak these exact numbers to better suit your needs and current financial situation.

Where Did the 50/30/20 Rule Come From?

The 50/30/20 budget rule gained popularity when Sen. Elizabeth Warren explained it in her book, “All Your Worth: The Ultimate Lifetime Money Plan,” which was first published in 2005.

The simplicity of the concept (and the math) contributed to its appeal. The idea of dividing one’s money into three instantly understandable buckets proved to have staying power.

How the 50/30/20 Rule Works

In the 50/30/20 budget, you allocate your take-home (or after-tax) income into three main categories or buckets according to percentages.

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

50% to “Needs”

These are things you cannot live without and the bills you cannot avoid paying. Consider them the “musts;” the items that you need to survive or that would leave you in a difficult situation if you didn’t pay them.

Here are some examples of typical needs:

•   Rent or one of the different kinds of mortgage payments that are possible (in a nutshell, your housing costs)

•   Utilities, including electricity, wifi, and water

•   Car payments and/or other transportation expenses (say, to get to work)

•   Groceries (but not that pricey takeout salad)

•   Basic clothing (what you need to wear in daily life, at work, and/or to stay warm; not the latest style of jeans just because they’re cool)

•   Insurance payments

•   Healthcare costs

•   Debt payment, such as the minimums on student loans and/or your credit card

The “needs” category does not include items that are extras, such as Netflix, dining out, and clothing beyond what you need for work. Those fall under the next category.

30% to “Wants”

Also known as personal, discretionary, or nonessential spending, these are the things you buy that you could technically live without. This includes:

•   Dining out or takeout food

•   Going to the movies, a show, or a concert

•   Vacation/travel costs

•   Streaming channel subscriptions (unless they are somehow vital for your work)

•   New clothes, simply because you feel like buying them

•   Electronics that are cool but not vital to your job

•   Spa treatments

•   Ubers or taxis instead of public transportation.

Wants are all the little extras and upgrades you spend money on that make life more fun.

20% to Savings

This is the money you save for future financial goals. This category often provides a means to financial security. This includes:

•   Money put into an emergency fund

•   Saving for a down payment on a home

•   IRA or other retirement contributions

•   Extra payments to help pay off your loans sooner (minimum payments are part of the “needs” category).

Even though the budget is written as 50/30/20, the purpose of this system is to prioritize the saving aspect, this 20%. (It may be more appropriately named the 20/50/30 budget.) The goal here is to get people to save for tomorrow rather than just spend today.

The idea is to make space for the 20% without laboring over the rest. The minutiae of where your fun money is going ($5 for a latte here, $10 for an appetizer there) isn’t super important if you’re saving enough to meet your financial goals.

Another point to note: If you aren’t saving 20% of your income right now, that’s okay. The process of setting up the 50/30/20 budget will help you find out where your money is going so that you can make adjustments. After completing your budget breakdown, you can address the areas where you’d like to cut back.

Benefits of the 50/30/20 Budget

The 50/30/20 rule may be a minimalist budget, but it can pack the same powerful benefits you would get with a more labor-intensive budget.

Some of the payoffs of setting up and following a 50/30/20 include:

•   Knowing where you stand. As a popular adage goes, “what gets measured gets improved.” It can be hard to start spending less and saving more if you aren’t clear on how much and where you are currently spending.

•   Identifying easy ways to cut back. As with any budgeting process, the 50/30/20 budget can reveal opportunities to cut back on spending. Simply going through the process – and seeing exactly where your money is going each month – can help to motivate you to make some relatively pain-free adjustments.

•   Reducing financial stress. While building a budget may seem like a stress-inducing exercise, it can ultimately relieve a lot of financial worry. It can add structure and clarity to your spending. Instead of angsting over every purchase, you’ll have built-in boundaries that allow you to spend freely within your budget.

•   Simplifying the budgeting process. By having fewer categories than a traditional monthly budget, the 50/30/20 rule of thumb can be easy to set up and to maintain. It can also be simple to track a 50/30/20 budget digitally.

•   Achieving your savings goals. By making saving a priority and setting some money aside before you start spending, a 50/30/20 budget can help you work effectively towards your financial goals. Whether that’s creating an emergency fund, making a down payment on a home, or going on a great vacation is your decision.

Tips for Implementing the 50/30/20 Budget

Want to give the 50/30/20 budget a try? If you decide to go this route, or you’re just looking for some budgeting basics, here are some steps you can take to get started.

Gathering Your Financial Records

To get started with any kind of budget, it’s helpful to collect the last three months or so of bank and credit card statements, pay stubs, receipts, and bills.

Calculating Your Monthly Income

You can use your statements to figure out exactly how much money you are bringing in each month after taxes are taken out. You can think of after-tax dollars as the pot of money you have to siphon into the three budget categories each month.

Setting a Savings Target

You may want to begin with the most important category, which is the 20% (savings). Since the goal for this budget is to turn the 20% into a nonnegotiable part of the plan, you’d calculate 20% of your monthly after-tax income and set that figure aside for things like debt repayment, cash savings, retirement investing, and any other financial goals that you have.

Even if you don’t feel it’s realistic for you to put 20% into saving right now, you might run the exercise assuming that you will. You’ll be able to tinker with the numbers later.

Calculating Essential Monthly Expenses

Next, you may want to make a list of all of your monthly essential or fixed expenses, such as rent/mortgage, utilities, groceries, and insurance.

Currently, do essential items absorb more than 50% of your take-home income each month? If so, what percentage do they comprise? And, is there any way to reduce any of these monthly expenses?

Building a Hypothetical Budget

After adding up savings and essentials, what is left over is what can be allocated towards discretionary spending, or the “wants” outline above.

It can be helpful to keep in mind that the 50/30/20 numbers are just a guideline. If the cost of living is high where you live, for example, it may not be feasible to keep essentials to 50% of your take-home income. In this case, you may need to reduce spending on wants.

Or, you may decide that at this point you can’t quite afford to put 20% into savings. There are variations on the 50/30/20 theme that accommodate these situations, such as the 70/20/10 rule, which acknowledges that for some people, a hefty 70% will be needed for the “musts” of life.

Recommended: Cost of Living by State Comparison

Once you see your numbers in black and white, you can play with the percentages and come up with a workable plan for roughly how much you can spend on nonessentials, or fun, each month.

Putting Your Plan into Action

Now that you have a basic guideline of how much money you will put into one type of savings account each month and how much cash you can spend each month on wants, it’s time to give your budget a try.

You may want to plan on tracking your spending for two to three months to start. You can do this by saving receipts and logging expenses according to the three categories at the end of the day. Or, you could use a budgeting app that makes it easy to track and categorize expenses.

Another tip: Try automating your finances and having money transferred from your checking account to your savings right after payday. That way, you won’t see the cash sitting in your checking account and think it’s there for the spending.

Making Some Tweaks

After tracking your spending for several months, you’ll probably have enough data to refine your original 50/30/20 budget. From there you can adjust the categories based on your actual spending, not just your projected spending.

You may also find that you need to adjust your spending. Discretionary spending is typically the easiest place to do some trimming.

You may decide you need to cook at home (rather than get takeout) a few more times a week, save on streaming services by dropping a channel you rarely watch, or ditch the gym membership and work out at home.

It may also be possible to pare back some of your fixed monthly expenses. Reducing utility bills, saving on gas, and, if possible, rent, could free up more money for fun spending. You may also want to look into whether you are paying bank fees. Switching to an online bank or other financial institution with low or no fees could free up a bit more money in your budget.

After making some adjustments, you can execute your new and improved budget. You may want to continue to track spending in a method that works best for you until spending according to your budget becomes second nature.

Recommended: How to Make Money From Home

The Takeaway

The 50/30/20 rule of thumb is a set of easy guidelines for how to plan your budget. Using them, you allocate your monthly after-tax income to the three categories: 50% to “needs,” 30% to “wants,” and 20% to saving for your financial goals.

Your percentages may need to be adjusted based on your personal circumstances and goals. But using this simple formula can be a good way to get a better handle on your finances, and to start working more effectively towards your goals.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Is the 50/30/20 rule a realistic goal?

For many people, the 50/30/20 rule is a realistic way to budget for essentials, discretionary expenses, and savings contributions. For others, it may not be realistic. If you are just starting your work life, earn a lower salary, live in an area where housing is very expensive, or have considerable debt to manage, you might do better with a different budget guideline.

Is the 50/30/20 rule weekly or monthly?

When budgeting, people typically work with their monthly expenses, since that is how housing costs, utilities, and other payments (say, student loans and credit card debt) are assessed. You could, however, apply the 50/30/20 guideline to your weekly spending and see how your finances are tracking.

What is the 60/30/10 rule budget?

The 60/30/10 budget is a different version of the 50/30/20 rule that can work well for those with higher costs of living. It allocates 60% more for the “musts” of life and 30% for discretionary spending. The remaining 10% is for saving and paying off debt.

What is the 70/20/10 rule for money?

The 70/20/10 rule is a budgeting system that allocates 70% of one’s take-home income towards “needs” (minus debt) and “wants” (discretionary spending), 20% to saving and investing, and 10% towards debt repayment or donations.

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