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Want to hear something obvious? It costs money to do cool stuff. Whether you want to save money for a trip to Japan, for a down payment on your first home, or for that straight-from-a-magazine wedding venue, you are probably going to need a well-funded savings account. And for most people, that means implementing and sticking to a savings strategy.

Savings goals don’t just reach themselves. Saving requires hard work, a plan of attack, and diligence. (Although, that won’t stop us from dreaming about that long-lost and benevolent great-aunt who we’ve never met and who is leaving us a surprise inheritance.)

A good first step to saving money is defining your savings goals. What is that you’re working for? Then, it’s time to implement a plan. Third (and this part is the hardest) continue to put in the work.

Reaching savings goals takes time and effort, but with a few tried and true strategies that work for you, it doesn’t have to be hard.

In fact, reaching your savings goals may feel incredibly rewarding and totally worth the effort.

Because living your best life probably requires having money saved, here are some strategies you might find helpful when trying to reach your savings goals.

1. Identifying Your Goals

There are some savings goals that are nearly universal, like retirement and an emergency fund, and others that will be unique to you. Everyone’s finances and goals are different! Before you can start reaching your savings goals, you should probably identify what they are. This is the fun part—you may want to spend some time dreaming and planning here.

Next, list those goals in order of priority. Keep in mind, priority doesn’t necessarily mean which happens soonest (although it could). For example, even though retirement is far away, it will likely be the most expensive savings goal a person will have during their lifetime. Therefore, it may rank higher in priority than other savings “wants,” such as a new television or an exotic vacation.

Because many people won’t be able to save for each of their big goals right away, ranking them in order of importance can help you determine which to work on first.

2. Determining Monthly Amounts

This is an exercise that may seem obvious, but it can also be completely eye-opening. First, list out your top two or three financial goals. Next, think about how much money you need to accomplish this goal and the time frame, in months, for accomplishing the goal. Then, divide the former by the latter.

For example, a person wants to save $6,000 for an emergency fund in one year (12 months), $10,000 for a wedding in four years (48 months), and $20,000 for a down payment in six years (72 months).

By dividing the savings goal by the number of months, we find they need to save $500 per month for their emergency fund, $208 per month for their wedding fund, and $278 per month for their down payment.

This may be another exercise in prioritization, helping you hone in on what to focus on first.

3. Writing Down Your Goals

There are studies that show that people who write their goals down greatly improve the chances that they’ll succeed at those goals. There could be a few reasons for this.

First, it could simply serve as a practical reminder that you have goals to work toward. You can give yourself an extra visual cue by posting the goal somewhere that you’ll see it often, like on the fridge.

Writing down a goal may also help connect the creative, thinking part of the brain with the action-oriented and pragmatic parts of the brain. To translate your savings dreams into reality, an important step may be getting as many parts of your brain and consciousness involved as possible.

You may find it valuable (and fun) to take this idea a step further and create a vision board or draw out your goals.

4. Tracking Your Progress

There’s an old saying that goes “what gets measured gets improved.”

If you truly want to get better at spending and saving, then you may want to track both your daily spending habits and your long-term progress on your savings goals. This may feel difficult at first, but as with most things, it becomes easier with practice and as you hone the methods that work for you.

With daily or weekly spending habits, there are lots of ways to track how you’re doing. If you don’t know where to start, there’s always the old-fashioned way—with a pen and paper. This is a great way to really wrap your head around where your money is going, and the act of writing down each “spend” may actually help you to spend less. Or, you could use an Excel spreadsheet or Google Sheets.

With savings goals, it is also possible to track your progress via pen and paper, using a spreadsheet, or in a more creative way, such as coloring in a drawing of the things you are saving for.

If manual tracking isn’t your thing, you might consider leveraging technology via a tracking app like SoFi Relay. SoFi Relay connects your bank accounts on a mobile dashboard, so that you have access to a holistic view of both your spending habits and your progress on your savings goals.

5. Celebrating Small Successes

To help avoid savings fatigue and to keep the fire burning, don’t forget to treat yourself along the way. Positive reinforcement might be an important element to your success.

How might you do this? You don’t have to wait until you’ve reached your big goal to celebrate—you can give yourself some love throughout the journey. For example, if the goal is to save $10,000, then celebrate when you hit $5,000 in addition to when you cross the finish line.

Celebrating can be as simple as treating yourself to a hot chocolate or the fanciest coffee in town, but it can help to find a way to give yourself that mental victory.

6. Automating

If you’re like most people, you’re busy and never crazy about taking on another chore. So, what can we do to make saving money less of a chore? One potential way to do this is to automate.

Automating is a simple and powerful way that can help make progress toward savings goals without having to think about it all the time.

To automate your savings, you might set up an automatic payment between your checking account (or wherever your paychecks are deposited) and your savings account. You could select a dollar amount to be sent each month after your paycheck has time to settle.

7. Separating Your Savings

To help you even further with your savings goals, SoFi Checking and Savings® has launched a new feature where you can create different vaults within your overall SoFi Checking and Savings online bank account.

You can customize your vaults with goal-specific names (ex. Travel Fund) so you can track your progress right when you log into the app. Plus, you can set up direct deposits to these specific vaults to automate your savings.

Want to see if SoFi Checking and Savings vaults can help you reach your saving goals? Learn more about SoFi Checking and Savings.

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External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
SoFi members with direct deposit can earn up to 4.00% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

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Student loan repayment often begins after a six-month grace period. In that time, you’ve (ideally) settled into a job and a new, post-school routine. That means you’re ready to take on all your financial responsibilities—including building up a savings account—right?

If that sounds daunting, you’re not alone. One in five Americans report that they save less than 5% of their yearly earnings, and another 20% save no part of their annual income.

Building up an emergency fund is an important step toward financial stability, but paying your student loans is required, too.

Is it better to pay off student loans than to save? When both feel important, what do you choose?

Unfortunately, there may not be one right answer—but it is possible to do both. Here are some moves to help make both student loan repayment and saving more manageable.

Considering Refinancing Your Student Loans

In the last decade, interest rates on federal student loans have ranged between 3.4% and 8.5% . Rates on private loans—those provided by private institutions such as banks, credit unions, or schools themselves—can be even higher.

Refinancing your student loans is an opportunity to lower your interest rate. If you can refinance at a rate lower than your existing one, you may pay less on interest throughout the life of your loan.

Alternately, you could elect to lengthen your loan term in refinancing, which could lower your monthly payment and may allow more wiggle room in your budget to pay down other debts or save more. That said, lengthening your loan term can mean you’ll pay more interest over the life of the loan.

Considering Consolidating Your Student Loan Debt

Another reason to consider refinancing student loans is that doing so can simplify the repayment process. If your initial loans are with multiple institutions, you are keeping track of several due dates and recipients. Refinancing gathers all of those loans into one place—with one lender—leaving you with a single bill to pay each month.

Refinancing can consolidate both private and federal loans. However, if you only have federal loans, you can also consolidate them with the government through a Direct Consolidation Loan.

This may not reduce your interest rate, but it would combine all of your loans into one. And with a Direct Consolidation Loan, you’re able to keep your federal student loan benefits. On the other hand, refinancing means you’ll no longer be able to take advantage of federal loan benefits.

Paying Student Loans On Time Can Help Build Your Credit Score

A silver lining to student loan debt is diligently paying your student loans on time may help build your credit score, which is a number that reflects your credit risk at a
given time. On-time student loan payments in the long term are an opportunity to show a long history of consistent payment, which may positively affect your credit score.

Consider setting up automatic payments or an electronic calendar reminder to avoid missing student loan payments. If you do miss a payment, you may want to call your lender immediately to ask how you can rectify the situation.

In some cases, a lender may be willing to waive the fee on a missed payment if it’s your first one, and if you pay it before 30 days have passed, you may be able to avoid getting the missed payment reported to the credit bureaus.

Trying Increasing Your Student Loan Payment Each Month

Paying more than the minimum on your monthly student loan bill can lessen the amount of interest paid over the life of your loan, and may help you pay off loans earlier than your original loan term.

If you get a windfall of extra cash—from a holiday gift or professional bonus, for example—consider using a portion of it to send in one extra payment on your student loan. There are no prepayment penalties for federal or private student loans. Manage to do this every year and you can help reduce the interest you pay and therefore the total cost of your loan.

Finding a Way to Save In Addition To Your Payment Plan

Even if it feels like a negligible amount in the moment, you can try to prioritize putting some money in a savings account each month.

None of us is exempt from the unpredictability of the future, so growing an emergency fund can help you weather an unexpected financial strain, such as a medical bill or car repair.

Saving between three to six months’ worth of expenses is a common goal suggestion. But if that sounds overwhelming on an entry-level salary, remember that even a small start is just that—a start.

Trying to Paying Your Savings Account Like a Bill

There is urgency in the word “bill,” so trick yourself a little by thinking of your monthly savings as a bill to be paid. Or you can consider setting up automated monthly payments, so that you don’t need to lift a finger to save.

Considering a Side Hustle

If you’re already working a full-time job, chances are you’d want a side hustle that requires minimal effort or that brings you a good deal of joy. If you’re social and happy to meet new people regularly, renting out a room in your home via Airbnb is one way to earn extra cash.

If you have a car, you can rent that, too, via companies like Turo and Getaround . Or use your wheels and join the ride-sharing economy, offering transport via Lyft .

It isn’t necessary to try all of the above strategies at once. But the more ideas you have, the more likely you are to find the ones that work for your life and financial situation.

And striking a balance between saving, spending, and paying down debt is a win in itself.

Learn more about how SoFi student loan refinancing can potentially help you get out of student loan debt faster than you’d planned.

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SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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We all know paying student loans on time is important, but sometimes life gets in the way. Perhaps you’ve been laid off or are having trouble finding a job. Maybe you’ve run into an unexpected expense, like car repairs or medical bills. Or maybe you got so busy with work and personal commitments that you just forgot.

If you’re behind on student loans, you’re not alone. As the cost of college and total student loan debt continues to rise, it is naturally becoming increasingly more difficult to keep up. In fact, over 10% of borrowers are more than 90 days behind on their student loans. And recent research suggests that nearly 40% of borrowers may default of borrowers may default on their student debt by 2023.

If you are falling behind on your student loan payments, just about the worst thing you can do is … nothing. Letting your loan payments lapse can have serious consequences for your financial future.

The good news is there are options for getting back on track with your loans and choosing a repayment plan that works for you.

Student loans can feel like a burden, but they don’t have to hold you back. By taking the right steps for you, you can help make your student debt manageable.

Why You Shouldn’t Ignore Missed Payments

Denial is a normal response when you’re feeling overwhelmed. But avoiding your late payments isn’t going to solve the problem and could potentially make things worse for you down the line.

Once you miss a payment, your loan is technically delinquent. With federal loans, if you make the payment within 90 days, everything will go back to normal. If more time passes, your loan servicer will likely report the delinquency to the major credit reporting agencies, and your credit score will suffer.

If you continue to be behind in payments, usually for 270 days, your loan may go into default. This is serious: Your entire loan amount may become due right away, and you won’t be able to take advantage of deferment, forbearance, or other options for relief until you get out of default.

This could harm your credit score, and the government may eventually be able to garnish your tax refund and more. If you miss a private student loan payment, the lender can usually take action more quickly by adding on late fees, referring your loan to a debt collection agency, or more.

Unlike other types of debt, student loans generally can’t be discharged during bankruptcy except in cases of undue hardship. As you can see, the consequences of ignoring an overdue loan are serious. Luckily, there are things you can do to avoid that.

Review Your Spending by Making a Budget

It sounds simple, but many of us don’t have a clear idea of how much money we have coming in and going out—or what we’re spending it on. If you’re having trouble keeping up with any of your bills, including student loans, making a budget is a good first step towards seeing your whole financial picture.

The total of your after-tax salary or wages, any income from a side hustle, and any help you might regularly get from family will be the starting point at which you can see how much money is coming in.

Next, tally up your expenses—how much money is going out. This includes fixed expenses, which typically stay about the same every month, such as rent, insurance, utilities, transportation, and groceries. Include your minimum loan payment in this calculation. This tally might also include variable expenses, which may fluctuate month to month, such as money spent on shopping or eating out.

If your spending exceeds your income, that could be a contributing factor if you’re unable to afford your loan payment. To address this, you might consider thinking about ways to increase your income or to reduce your expenses.

Can you ask for a raise or get a supplemental gig? Can you cancel that gym membership and jog outdoors instead? Or propose low-cost activities, like a picnic, instead of going out to bars and restaurants with friends?

Making a workable budget—and sticking to it—can go a long way to ensuring you have money in your account to make payments on time. And setting up auto-billing (sometimes called autopay) with a bank account or loan servicer may also help ensure payments are made automatically.

Looking into Deferment or Forbearance

Sometimes, making a budget isn’t enough. If you’re going back to school or encountering an economic hardship, it might not be feasible to pay your loans for a certain time period.

In cases like this, if you have federal loans, you can apply for a deferment or forbearance with your loan servicer. Both of these options could allow you to temporarily stop payment or reduce the amount you pay.

Borrowers may qualify for federal student loan deferment if they’re in school at least half-time, are on active military duty, or while you’re in certain graduate fellowships. You may also be eligible for up to three years of relief if you’re unemployed, in the Peace Corps, or facing economic hardship.

If granted deferment status, a borrower won’t be responsible for the interest that accrues on certain types of federal student loans, including Direct Subsidized Loans, Federal Perkins Loans, and other subsidized loans; however, borrowers will likely need to pay interest on Direct PLUS loans and other unsubsidized federal loans.

Borrowers could be eligible for federal student loan forbearance if unable to pay their loans because of medical bills, changes in employment (such as reduced hours, reduced pay, or job loss), or other financial difficulties. In these situations, it’s up to the loan servicer to decide whether to grant a borrower forbearance.

In other selective situations, on certain qualifying loans they must grant it. These include if a borrower is completing a medical or dental internship or residency, serving in AmeriCorps, or using 20% or more of their gross income each month for student loan payments.

It’s important to note that with forbearance, borrowers are responsible for interest that accrues regardless of the type of loan they have. And all that unpaid interest will be added back onto the principal of the loan—which could make the total amount you’ll eventually have to repay substantially higher.

Private lenders, on the other hand, aren’t required to offer relief if you’re struggling financially, but some are willing to temporarily reduce your payments if you’re unemployed or have another short-term setback. It could be worth reviewing your contract terms or reaching out to your provider about options.

Considering an Income-Driven Repayment Plan

If your financial situation doesn’t seem like it’ll improve anytime soon, and you can’t make ends meet while paying your student loans, there are federal repayment programs that may be able to help.

With federal loans, you may have the option of switching to a repayment plan that ties your monthly payment to your discretionary income in order to make it more affordable. The plan you may qualify for depends on the types of loans you have, your financial situation, and when you took them out.

All income-driven repayment plans limit monthly payments to between 10% and 20% of discretionary income. If the loan is not fully repaid at the end of the repayment period, the loan balance may be forgiven. However, a number of factors will determine if there will be a balance to be forgiven, such as income increase over the life of the loan and debt-to-income ratio.

The downside to going with an income-driven repayment plan is that you may end up owing more in interest compared to some other plans, since the term is longer.

If the monthly payment is not enough to cover the monthly interest charge, all or a portion of the difference will be paid by the government, depending on the type of income-driven repayment plan you have. There may be some instances in that the unpaid interest is capitalized, meaning added back to the principal balance of the loan.

Either way, making the minimum payment on time every month can be an important factor in having strong credit and avoiding negative consequences.

Refinancing Your Student Loans

Another potential solution to unaffordable payments can be student loan refinancing. Federal or private student loans may be able to be refinanced by taking out a new loan with a private lender, which will pay off your existing student debt.

The new loan may come with a lower interest rate or a lower monthly payment than the existing loans, especially if the borrower has a strong credit and employment history. Refinancing with SoFi means there won’t be any origination fees or prepayment penalties.

It is important to remember that if you refinance your student loans with a private lender you will lose access to federal benefits such as deferment, income-driven repayment plans, and public student loan forgiveness.

Getting Your Loans Back on Track

Missing student loan payments is a sign that you need to take action. Ignoring the problem and letting late notices pile up won’t make the issue go away and could open you up to serious consequences.

But if you face the problem head on, you have options for catching up and getting back on track.

Looking for ways to make student loans more manageable? Consider refinancing with SoFi.

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SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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 Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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When it comes to organization, there’s a wide spectrum of preferences. Maybe you’re the type that watches clips of people organizing drawers on YouTube and you love seeing M&Ms split into color-specific piles? So long as there’s a method to the madness (yikes, you hate madness) you’re happy.

Perhaps you’re on the other side of the scale and your sock drawer is never matched, the day planner you received for Christmas is practically still wrapped, and you have to leave the house in five minutes or you’ll miss your flight.

Regardless of whether your plans are carefully carved in stone or you’re just a bit all over the place—you can get (and keep) your finances organized.

One of the most important—but also banal—aspects of your financial health and wellness is paying off all bills on time and in full.

While it may seem like the classic nuisance and bills are one small step below “death and taxes”, paying bills consistently can be one of the best ways to reduce money-related stress while also helping you avoid late fees and potentially positively affect your credit score.

So how do you do it? The excuses for not paying in full or on time are endless and, frankly, not entirely without merit (although your creditor won’t care one bit). It’s easy to forget to pay, to run out of spendable cash to cover your bills, or miss due dates because you are too busy with work or pleasure to get down to doing it.

For some people, getting a handle on their finances could be as simple as opening a separate bank account for paying your bills. But like any financial situation, this can have its pros and cons.

While it may be great for some, it might not work for everyone. But, weighing the following information could help you decide if having two accounts, one for bills only, could help you manage your bills.

Why a Separate Account Rocks

Having multiple bank accounts can help you through a number of financial situations. But why exactly does an account for bills only work so well?

Keeping Enough Cash On-Hand

Woohoo, just got paid. You totally want to go out on the town. New shoes. A nice bottle of wine. Shots for the crew. Dinner for two.

While these things may seem fun (because they are), wisdom keeps you from taking that check straight to the cash-out ATM. With a bank account for paying bills, you can ensure that, first things first, your bills are covered.

That might mean you have two checking accounts, one for bills only that you can deposit the estimated total of your upcoming bills. Once you’ve made sure that the full amount you need for your bills is in your bills-only account, you can portion the remaining income into fun-fund.

And then you can go get those cupcakes. You deserve them.

Automating Bills

So you have enough money and you’ve made sure it’s in your account and ready to go. But what happens when you completely forget about your bills?

Whether you’re on vacation and far away from a computer or you’re just slammed with work and everything except typing and shoveling salad into your mouth have completely escaped your thoughts, sometimes it can be easy to forget.

Unfortunately, credit card companies, your landlord, and others aren’t in the business of justifying what to them sounds like various versions of “the dog ate my homework”.

Luckily, most bill-paying services have set up a direct deposit method so you don’t even have to think about paying your bills—whether you’re out of the country or the due date slipped your mind.

When you have an account for bills only, adding a direct deposit that can cover those bills makes managing them easier and simpler for you so you can focus on your work. Or ideally beachside margaritas.

The Downside to Adding a Bills-Only Account

Like any good argument, there’s always a counterargument and every strategy will have its detractors. Here are some of the key arguments:

Maintaining a Budget Instead of Opening Multiple Accounts

Budgeting can be an excellent way to manage your finances. In order to effectively stay on top of bills and expenses, you may find keeping an accurate budget and tracking your spending will be necessary.

Additionally, healthy budgeting requires the dreaded balancing of the books and the notation of spending. While you still might have to look at your budget occasionally, instead of pulling money from different accounts for discretionary spending versus bill spending, keeping a budget means you’ll likely be able to get a quick and compartmentalized overview without having to break out a calculator.

Dealing with Minimum Balance Requirements

Some bank accounts require that you don’t let your balance drop below a certain amount. When apportioning out your paycheck and other cash finances into multiple accounts, some people are concerned about literally spreading their cash too thin to maintain the necessary levels to keep the account afloat.

But with a little research, you can likely find an account that offers an account minimum low enough to suit your needs. A SoFi Checking and Savings® account lets you get started with no minimum balance.

Losing Out on Earned Interest

It may seem like you’re earning cash keeping your spending money in a single longer-term account in the bank.

But with the constant in-and-outflux of cash through a single month or year, it’s likely that your money isn’t working for you quite as much as you thought or hoped. In addition, the average interest rate for savings accounts in the U.S. as of October 2019 was just 0.09% annual percentage yield (APY) .

But with the rising popularity of things like hybrid accounts, you can get the best of both options without having to choose between the two.

Managing Your Money with SoFi Checking and Savings®

Having an account for bills only can be a safeguard for you. Maintaining a separate account could help you to make sure you have money allocated to pay your bills each month. Plus you could easily set up automatic bill pay so you avoid missing payments.

If the thought of separate accounts is appealing, but managing accounts with different financial institutions or login information sounds unwieldy, you could consider opening a checking and savings account with SoFi.

With SoFi Checking and Savings® you can take advantage of the new feature, Vaults. Using this feature, you can create different sub-accounts for your money, all within a single umbrella account.

Instead of housing your money in different accounts, you can have the separation you want for various purposes with the ease of maintaining a single account. You’ll even have access to easy-to-read reports with live updates so you don’t have to worry about updating a spreadsheet (well, outside of the office) ever again.

Sign up for SoFi Checking and Savings® today and start categorizing and organizing your money—all in one place.

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External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Does the thought of possibly shelling out tens of thousands of dollars to sit in a classroom for four more years after graduating from high school make you groan? While college is a good option for many people, it isn’t for everyone—and not going to a four year college doesn’t mean you can’t have a meaningful career.

More people than ever before have a college degree, but a four-year program isn’t the only way to be successful. The truth is that college may not be the right path for all high school grads.

There are many colleges you can consider, but for some people, sitting in class for another four years to get an expensive degree doesn’t hold interest. And for many, family or work obligations make it difficult to pursue full-time education.

There are certain jobs for which you need a college degree, like engineering or counseling, but there are plenty of careers out there that might be a better fit for you. And, as we mentioned, college degrees can be pricey.

In the 2019–20 school year, the average in-state college tuition and fees was just over $10,000 , and for private school, it was about $36,000. The cost of college has actually grown eight times more quickly than wages from 1989 to 2016. That means that an expensive college degree may not be a strong return on investment for certain career paths.

Alternatives to a College Degree

Just because you aren’t interested in a four-year degree doesn’t mean you need to forgo higher education entirely. The popularity of alternative educational models, like trade schools, is rising, and community colleges offer many practical certification and two year associate degree programs that can help you get ahead.

It is important to know that even if you’re not planning to pursue a four-year degree, you still have options when it comes to creating a career that is right for you.

Trade School

Sometimes known as technical or vocational schools, trade schools can prepare you for a specific job, such as truck driving, nursing, or medical assistance. These programs are normally much shorter than four years, and certain programs may allow you to finish in only a few months. There are both public and private trade schools, with some operating on a for-profit basis.

Trade schools don’t award bachelor’s degrees. Instead, when you graduate from a trade school, you typically receive a diploma or certificate indicating that you are trained and certified to perform a specific job. Some trade school programs do offer associate degrees, which are the same type of degrees offered by many community colleges.

Community College

And that brings us to community colleges, which, as we mentioned above, usually offer two-year degrees called associate degrees. These degrees can either stand alone or be a stepping stone to obtaining a bachelor’s degree at a four-year school. But many community colleges offer career preparation programs that are designed to help students jump into the workforce without the need for a bachelor’s degree.

Community college could also be a great way to test out college life and see if you want to continue pursuing higher education. They tend to be much less expensive than four-year universities, which means it won’t cost you an arm and a leg before you decide if higher education is right for you.

Apprenticeships

Though you may not have realized it, apprenticeships are not just something you read about in a history book on the Middle Ages. Currently, the U.S. has a robust network of training programs and apprenticeships that are designed so you can learn a trade while working a paid job.

Apprenticeships can be a win-win for employers and employees because they allow those starting out to begin working immediately—that way, employers can fill vacant jobs and you can receive a paycheck right away.

Described as “learn while you earn,” they can help you learn how to use industry-specific tools and technologies and help you develop your skills over a period of time. According to the U.S. government, workers who train in apprenticeships earn about $300,000 more in earnings over their careers than workers who don’t go through or complete an apprenticeship program.

Starting a Business

Another option for those who aren’t interested in all-night cram sessions and dorm rooms is starting your own business. In fact, a 2017 study showed that more than half of business owners don’t have a four-year college degree.

If you are already passionate about—and have a lot of knowledge about—a specific field or industry, you might consider skipping college altogether and jumping into that business.

Starting your own business takes a lot of hard work, but it could mean that you get to be your own boss and work in an industry you love. And because you could quickly become an expert on the products or services you provide, you aren’t necessarily at a disadvantage because you lack a degree.

If You Do Go the College Route

There are plenty of options if you choose not to attend a four-year college. However, there are also options within the world of college: the type of college you choose, the major you decide to pursue, and how you pay for college.

There’s no denying it: Higher education is expensive. If you go that route, and you take out student loans, there are ways to help you manage the debt you are paying on. For some grads, loan refinancing can be a big help.

Refinancing your student loans with a private lender, like SoFi, may help you snag better repayment terms that can help facilitate a quicker payoff, such as a shorter term—or you could qualify for a lower interest rate.

One important thing to note is that refinancing federal loans with a private lender could make you ineligible for some federal loan benefits, like Public Service Loan Forgiveness (PSLF), so it’s important to do your research when deciding what the best program fit is for you.

Got that four-year degree and looking to pay off those loans? With SoFi, refinancing is fast and easy, and there are no hidden fees. Learn more and find your rate today.

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SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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