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An entry-level position can help you get your foot in the door of a new industry or provide experience and on-the-job training to help you move up the ladder. Depending on the job, you may be required to work closely with colleagues, vendors, customers, or the general public. If you’re an introvert, all that face-to-face interaction could sound overwhelming and downright exhausting.

Luckily, there are a variety of entry-level jobs that require little human interaction and can still set you on the path to a satisfying career.

What Is an Entry-Level Job?

Entry-level jobs are roles that typically require minimal education or prior experience. They may be designed specifically for individuals just graduating from college who have higher academic qualifications, or they may not require any post-secondary education at all. Jobs that require a college education may offer a higher starting wage, though there are also high-paying trade jobs.

Some companies will require new entry-level hires to participate in on-site training to bring them up to speed on the skills they’ll need to complete the tasks required of them. Jobseekers may find an entry-level position in every industry, and they could land a fulfilling job that pays well.

When to Start Applying for Entry-Level Jobs

It’s common for recent high school or college graduates to apply for entry-level jobs. If you want to start work as soon as you finish school, you may consider applying to jobs a couple of months in advance of your graduation date.

But entry-level jobs aren’t only for people fresh out of school. Those hoping to switch career paths may want to apply for entry-level jobs to gain experience in their new field. Some retirees may also look for a part- or full-time role to pick up extra income, including work-from-home jobs.

Once you begin earning a wage, consider using a spending app to help you set a budget and track your income and spending.

Pros and Cons of an Entry-level Job With Little Human Interaction

The potential advantages and disadvantages of entry-level jobs for introverts will depend largely on your personality. As you’re hunting for a job, ask yourself what you want and need from a position. Here’s a look at some potential pros and cons.

Pros

•   A quiet workspace allows you to focus on the tasks at hand.

•   Fewer interruptions from bosses and coworkers who want your attention.

•   There’s less potential to get wrapped up in office politics.

•   Having fewer interactions with people can create a calmer atmosphere for those who get anxious interacting with others.

Cons

•   There’s potentially less opportunity to learn from bosses and coworkers.

•   You may spend more time troubleshooting issues on your own.

•   If you’re a people person, positions with little human interaction can feel isolating.

•   If you’re out of sight, you may be out of mind and miss out on opportunities that could advance your career.

Tips to Finding an Entry-level Job

Begin your job hunt by getting to know yourself. What industries are you interested in? And what skills do you already bring to the table?

Next, use an online job search engine. Some are quite large and will help you explore jobs across the country in many industries. But if you’re looking for something specific, you might try specialty job boards.

When applying for a job, send a resume that explains your education, experience, and skills. It’s also a good idea to write a cover letter that’s customized to the job you’re applying for.

Though it may not be appealing if you’re not a people person, you can also network with colleagues in your field of interest. The connections you make could help you find positions that may be available in your area, including jobs that pay daily.

Regardless of the career you choose, you may find it helpful to use a money tracker app to organize your finances. With the SoFi’s app, you can see all of your accounts in one convenient dashboard, including your balances, spending breakdowns, and credit score. You also get valuable financial insights that can help you make progress toward your goals.

10 Entry-level Jobs With Little Human Interaction

Looking for some ideas for potential jobs for antisocial people or roles that allow you to work with as few interactions as possible? Here’s a list of some possible careers to explore.

Accountant

Accountants are responsible for keeping and interpreting financial records and may help clients as they prepare for tax season.

Requirements: Accountants typically have a bachelor’s degree in accounting or a related field. They may also get licensed in certain fields to improve job prospects.

Annual median salary: $79,880

Job outlook: Employment is expected to grow 6% through 2033, which is nearly average for all occupations.

Actuary

Actuaries usually work with insurance companies, and they use mathematics, statistics, and financial theory to help analyze the potential cost of risk.

Requirements: You typically must have a bachelor’s degree with a strong background in math and statistics to become an actuary. And you must pass a series of exams to get certified.

Median annual salary: $120,000

Job outlook: Employment is expected to grow 22% through 2033, much faster than average.

Computer Programmer

Computer programmers write, change, and test code that applications and software need to run and function properly.

Requirements: Programmers generally need a bachelor’s degree as well as proficiency in one or more programming languages.

Median annual salary: $99,700

Job outlook: Employment is expected to decline 10% through 2033, though an estimated 9,600 jobs are projected to open up each year.

Graphic Designer

Graphic designers usually use software to create visuals that communicate ideas to consumers.

Requirements: Graphic designers may need a bachelor’s degree in graphic design and a portfolio that demonstrates their work.

Median annual salary: $58,910

Job outlook: Employment is expected to grow 2% through 2033, which is slower than average.

Medical Records Specialist

A medical records specialist processes, compiles, and maintains patient records.

Requirements: A high school diploma may be sufficient, but medical records specialists typically need a post-secondary certificate to enter the profession. Some might need an associate’s or bachelor’s degree.

Annual median salary: $48,780

Job outlook: Employment is expected to grow 9% through 2033, which is about as fast as average.

Surveyor

Surveyors use measurements to determine property boundaries. They may work in the office and the field, alone or in small teams.

Requirements: Surveyors typically need a bachelor’s degree, and they must be licensed.

Median annual salary: $68,540

Job outlook: Employment outlook is projected to grow 6% through 2033.

Technical Writer

As a technical writer, you write journal articles, instructional manuals, and other documents to communicate technical information clearly.

Requirements: Technical writers typically need a bachelor’s degree and some experience in science or engineering.

Median annual salary: $80,050

Job outlook: Employment is expected to grow 4% through 2033, which is about average for all occupations.

Truck Driver

If you long for the open road, you might consider becoming a truck driver who transports goods from one place to another.

Requirements: Truck drivers usually need to have a high school diploma and have attended truck driving school. They must also acquire a commercial driver’s license.

Median annual salary: $54,320

Job outlook: Employment is expected to grow 5% through 2033, which is nearly average for all occupations.

Veterinary Technologist or Technician

If you’d rather work with animals than people, you might consider becoming a veterinary technician. People in this position help run tests and may help diagnose animal injuries and illness.

Requirements: Veterinary technologists typically must complete a four-year post-secondary program, while technicians need a two-year associate’s degree. Both must take an exam to get credentialed, and they may need to be registered, licensed, and certified in the state where they work.

Median annual salary: $43,740

Job outlook: Employment is expected to grow 19% through 2033, which is much faster than average.

Web Developer

Web developers create and maintain websites for a variety of clients.

Requirements: Web developers may need only a high school diploma, while others benefit from having a bachelor’s degree.

Annual median salary: $92,750

Job outlook: Employment is expected to grow 8% through 2033, which is faster than average.

The Takeaway

An entry-level position can help people new to a field gain valuable experience and training. These jobs are generally available in every industry, and some require little to no human interaction. If you’re an introvert or prefer to work alone, you have an array of options, including working as a computer programmer, accountant, graphic designer, surveyor, truck driver, or medical records specialist.

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.

FAQ

Is there a job where I don’t have to talk to people?

Yes, there are jobs where you can limit your interaction with other people, especially if you freelance or work for yourself.

What are the easiest jobs to get with no experience?

Entry-level positions are often designed for jobseekers with little to no prior experience. Frequently, these jobs will offer some sort of on-the-job training.

What are good jobs for people with social anxiety?

Jobs such as graphic designers, veterinary technicians, technical writers, and others that require little interaction with other people may be good for those with social anxiety.

Photo credit: iStock/supersizer

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.

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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As anyone who has ever watched their bank account balance decline after paying bills knows, owing money is no fun. But debt often serves an important function in people’s lives, putting things that can cost tens of thousands of dollars or more — like a college degree or a starter home — within reach.

Such cases aren’t quite the same as racking up a high credit card balance on restaurant meals and shopping trips, underscoring that when it comes to owing money, there can be good debt and bad debt.

What Is Debt Exactly?

It’s a simple four-letter word, yet debt is often not as straightforward as it may appear. Carrying a credit card balance? That’s debt. Have a student loan or a car lease? Also debt.

When individuals owe money, they generally have to pay back more than the amount they borrowed. Most debt is subject to interest, the borrowing cost that is applied based on a percentage of money owed. Interest accrues over time, so the longer consumers take to pay off debt, the more it may cost them.

Across people and households, debts add up. According to the Federal Reserve Bank of New York, by the third quarter of 2024, total household debt climbed to $17.94 trillion. Housing debt — specifically mortgages and mortgage refinancing — accounted for the majority of money owed, $12.59 trillion. Non-housing debt, such as credit card balances and school and car loans, accounted for the rest.

For individuals, average debt amounted to $105,056 in the fall of 2024, according to the credit reporting company Experian. While student loan debt was down, shrinking by 9.2% from the year before — many other debts, including amounts owed on credit cards, car loans, home equity lines of credit (HELOCs), and mortgages, all increased from the year before, according to Experian.

Recommended: Free Credit Score Monitoring

Good Debt vs Bad Debt

When you have debt, not only do you have to repay the money borrowed, but you also usually incur ongoing costs — specifically interest — which increase the amount you have to pay back.

While incurring more debt probably isn’t the most attractive proposition, there are occasions when taking on debt can be necessary or even beneficial in the long term. This is where good debt vs. bad debt comes in.

Though the idea of good vs. bad debt might seem complicated (and is often subject to some misconceptions), as a rule of thumb, the difference between good debt and bad debt usually has to do with the long-term results of borrowing.

Good debt is seen as money owed on expenditures that can build an individual’s finances over time, such as taking out student loans in order to increase one’s earning potential, or a mortgage on a house that is expected to appreciate in value.

Bad debt is money owed for expenses that pose no long-term value to a person’s financial standing, or that may even decrease in value by the time the loan is paid off. This can include credit card debt and car loans.

While owing money may not feel great, debt can serve some helpful functions. For starters, your credit score is used by lenders to determine eligibility and risk level when it comes to borrowing money.

Your credit score is based on your history of taking on and paying off debt, and helps to inform a lender about how risky a loan may be to issue. Your credit score can play an important role in determining not only whether a credit card or loan application will be approved but also how much interest you will be charged.

With no credit history at all, it may be harder for a lender to assess a loan application. Meanwhile, a solid track record of paying off good debt on time can help inspire confidence.

While there are no guarantees, good debt can also mean short-term pain for long-term gain. That’s because if paid back responsibly, good debt can be an investment in one’s future financial well-being, with the results ultimately outweighing the cost of borrowing.

Conversely, with bad debt, the costs of borrowing add up and may surpass the value of a loan.

What Is Considered Good Debt?

Mortgages

Like other lending products, mortgages are subject to annual interest on the principal amount owed.

In the United States, the average rate of a 30-year fixed-rate mortgage was averaging 6.95% nationally in January 2025, according to the Federal Reserve Bank of St. Louis. That’s up from January 2024, when the average rate for a 30-year fixed-rate mortgage was 6.69%.

Meanwhile, data from the Federal Housing Finance Agency showed that home prices grew 4.5% from October 2023 to October 2024.

This illustrates how the potential appreciation of a home might outweigh the cost of financing. But it’s best to not assume that taking on a mortgage to buy a house will increase wealth. Things like neighborhood decline, periods of financial uncertainty, and the individual condition of a home could reduce the value of a given property.

Personal loans or home equity loans used to improve the condition of a home may also increase its value, and in such instances may also be considered “good” debt.

Recommended: Should I Sell My House Now or Wait?

Student Loans

Forty-three percent of Americans who attended college incurred some kind of education debt, with the average federal student loan debt in the U.S. coming in around $37,850, according to the office of Federal Student Aid.

Cumulative income gains may eclipse the cost of a student loan over time. But higher education may be linked with greater earnings, and cumulative income gains might eclipse the cost of a student loan over time.

According to the U.S. Bureau of Labor Statistics, the median weekly earnings for a bachelor’s degree holder are $1,541, which is more than $625 greater than the median weekly pay of someone with a high school diploma.

But just as taking out a mortgage is not a sure-fire way to boost net worth, student debt is not always guaranteed to result in greater earnings. The type of degree earned and area of focus, unemployment rates, and other factors will also influence an individual’s earnings.

Recommended: Staying Motivated When Paying Off Debt

What Is Considered Bad Debt?

Credit Card Debt

Credit cards can be useful financial tools if used responsibly. They may even provide cash back or other rewards. And because interest is generally not charged on purchases until the statement becomes due, using a credit card to pay for everyday purchases need not be costly if the balance on the card is paid before the billing cycle ends.

However, credit cards are often subject to high interest rates. According to the Federal Reserve Bank of St. Louis, the average annual interest rate for credit cards is 21.47% — but some charge rates even higher.

Credit card interest adds up, making that takeout dinner or pair of jeans far more costly than the amount shown on its price tag if a balance is carried over. For example, if you were to charge $500 in takeout food to a credit card with a 20% APR but only pay the $10 minimum each month, it would take nine years to pay off the full balance. The total amount paid — including interest — would be $1,084. That’s more than double the cost of those takeout meals!

If you’re paying down credit card debt, consider enlisting the help of a budget app from SoFi. You can use it to get spending breakdowns, credit score monitoring, and more — at no cost.

Car Loans

The dollar value of your car may not be what you think it is. Cars famously start to lose value the second you drive them off the lot. A new vehicle loses 20% or more of its value in the first year of ownership, according to Kelley Blue Book. After five years, a car purchased for $40,000 will be worth $16,000, a decrease in value of 60%.

But a car may also be necessary for getting around. For some individuals, owning a car can also help them earn or boost income, reducing or negating depreciation.

The Takeaway

Both good debt and bad debt can be stressful — and both types of debt can be more costly than they need to be if you don’t keep tabs on what you owe and pay back loans efficiently. A digital tracker could be the remedy.

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.

FAQ

What is the difference between good debt and bad debt?

Debt that allows you to build finances over time or increase your earning potential can be considered good debt. On the other hand, if debt doesn’t increase your net worth, has no long-term value to your financial standing, and you don’t have the money to pay for it, then it qualifies as bad debt.

What are some examples of bad debt?

Credit card debt and car loans are two common types of bad debt.

What is an example of good debt?

Taking out a student loan or a mortgage on a house that’s expected to increase in value are two examples of good debt.

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.

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

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

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

SORL-Q125-037

Many people consider relocating when they retire to reduce their cost of living and make their savings last longer. When weighing the pros and cons of moving to another state, it’s important to consider the total tax burden there, including state and local taxes on retirement income, property tax, even sales tax. Some areas with a lower tax burden have a higher overall cost of living, which can cancel out any savings.

Below we look at the best states to retire in for taxes and how to tell if moving will be worth it.

Most Tax-Friendly States for Retirement

A number of states exempt Social Security income from state taxes. A smaller number offer a tax break on other retirement income, such as IRAs and 401(k) plans, private pensions, interest, dividends, and capital gains.

These are the 10 tax-friendly states for retirees, according to Kiplinger:

1.    Mississippi

2.    Tennessee

3.    Wyoming

4.    Nevada

5.    Florida

6.    South Dakota

7.    Iowa

8.    Pennsylvania

9.    Alaska

10.    Texas

But before you complete that change of address card, you’ll want to look at the bigger picture.

Factors to Consider When Choosing the Best State to Retire In

When choosing where to retire, it’s wise to first consider issues like safety, access to healthcare, distance to friends and family, or living near other people of retirement age.

Make a list of features that are important to you in a retirement locale, and consider whether any of them could indirectly impact your cost of living, such as being close to friends and family.

Then look at the total cost of living in an area: housing, food, transportation, cultural activities, and other expenses. These retirement expenses generally have a bigger impact on one’s lifestyle than taxes.

Finally, to determine whether a state is tax-friendly for retirees, look at the following:

Does the State Tax Social Security?

Generally, Social Security income is subject to federal tax. But some states also tax Social Security above a certain income threshold, while other states offer tax exemptions for individuals in lower tax brackets.

For the 2024 tax year, the states that tax some or all Social Security benefits are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

Does the State Tax Pensions?

Many states tax income from pensions, but 15 states do not. These states are: Alabama, Alaska, Florida, Hawaii, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

And these 13 states do not tax income from 401(k) plans: Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Alaska, Florida, Nevada, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.

Other Taxes That Affect Retirees

When choosing the best state for you to retire in, it’s a good idea to look into sales tax and property taxes too. States that don’t charge sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon. On the other hand, New Hampshire has very high property taxes, reducing the benefit of no sales tax.

Recommended: When to Start Saving for Retirement

States to Avoid When Retiring

Choosing the best state to retire in sometimes means making compromises. If safety and healthcare access are top priorities, for instance, you may not get your ideal weather. But for many retirees, a high cost of living is a deal-breaker.

Here are the 10 states with the highest annual cost of living, according to a 2024 analysis conducted by GOBankingRates:

1.    Hawaii: $131,560

2.    Massachusetts: $106,897

3.    California: $101,059

4.    New York: $91,865

5.    Alaska: $91,355

6.    Maryland: $85,007

7.    Washington: $84,642

8.    Vermont: $84,131

9.    Oregon: $83,693

10.    New Hampshire: $83,255

Recommended: Avoid These 12 Retirement Mistakes

The Best States to Retire in 2024

As noted above, the best state to retire in will depend on an individual or couple’s budget, lifestyle, and values. But recent trends may help point you in the right direction.

These are the top 10 states that retirees are moving to, according to United Van Lines’ 2024 National Movers Study:

1.    Delaware

2.    Florida

3.    South Carolina

4.    Arizona

5.    Mississippi

6.    Nevada

7.    North Carolina

8.    Maine

9.    Utah

10.    New Hampshire

If cost of living is your sole concern, the following are the 10 least expensive states, according to Bankrate:

1.    West Virginia

2.    Oklahoma

3.    Kansas

4.    Alabama

5.    Mississippi

6.    Missouri

7.    Arkansas

8.    Iowa

9.    Indiana

10.    Tennessee

States with the Lowest Tax Burden

An area’s total tax burden is the sum of all property taxes, sales taxes, excise taxes (which affect the price of goods), and individual income taxes. Below are the states with the lowest total tax burden for retirees. (On a budget? Tools like an online budget planner can help you monitor spending and make progress toward your financial goals.)

States With the Most Millionaires

One way to measure the overall desirability of an area is the number of millionaires who live there. After all, millionaires can afford to live in states that have high-quality healthcare, nice weather, and diverse cultural offerings. These are not the cheapest states in terms of cost of living or taxes, but their popularity may help non-millionaires reevaluate their must-haves vs. nice-to-haves.

Does It Make Financial Sense to Relocate in Retirement?

For workers who already live in a state with moderate taxes, are near family, and have a lifestyle they enjoy and can afford, there may not be any compelling reason to move. But for those looking to make a change or lower their retirement expenses, it may make financial sense to relocate.

Just remember that housing, food, transportation, and other expenses usually have a bigger impact on one’s retirement lifestyle than taxes.

Pros and Cons of Relocating for Tax Benefits

Lower taxes alone may not be enough to motivate someone to pick up and move house. Other factors should also support the decision.

Pros of Relocating for Tax Benefits

•   Potentially lower cost of living

•   Discovering a community of like-minded retirees

•   Possibly ticking off other boxes on your list

Cons of Relocating for Tax Benefits

•   Other living costs may cancel out the tax benefits

•   Moving costs are high, and the stress can be tough

•   Need to find another home

The Takeaway

The best state to retire in for tax purposes depends on an individual’s budget, lifestyle, and values. Some states with lower taxes for retirees can have higher housing and transportation costs, canceling out any tax benefit. A financial advisor can help you decide if saving on taxes is worth the expense and trouble of relocating.

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.

FAQ

What are the 3 states that don’t tax retirement income?

Nine states don’t tax retirement plan income because they have no state income taxes at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Those states, along with Illinois, Iowa, Mississippi and Pennsylvania, don’t tax distributions from 401(k) plans, IRAs, or pensions. Alabama and Hawaii don’t tax pensions, but do tax distributions from 401(k) plans and IRAs.

Which state is the best state to live in for tax purposes?

Alaska has the lowest overall tax rates.

Which states do not tax your 401k when you retire?

Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax 401(k) plans when you retire.

Photo credit: iStock/Jeremy Poland

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.

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

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

SORL-Q125-051

When it comes to maintaining a strong financial plan and healthy financial behaviors, our brains can sometimes work against us. Behavioral biases, mental traps, and neural wirings can all get in the way of setting and meeting financial goals.

Consider recency bias, which is the tendency for people to look to recent events to make decisions about the future. Just because a stock has skyrocketed recently, that doesn’t mean its upward trajectory will last forever. In fact, jumping into the market during a rally could mean you end up buying when prices are high, right before investors bail and prices fall.

Another mental tendency to consider: ego depletion. It’s the idea that people can only exert their willpower for a limited time, and after that, it’s harder to practice self-control. If you have an important financial decision to make, it may make sense to wait until you are no longer feeling depleted.

Here’s a closer look into the ego depletion theory, what it could mean for your finances, and how to overcome it.

What Is Ego Depletion?

The concept of ego depletion hinges on the idea that our willpower reserves are finite, and when we exert self-control for too long, we use up those reserves. Once those are depleted, it is harder to exert self-control, and we’re more likely to make poor decisions.

The term was coined by American social psychologist Roy Baumeister in the late 1990s, though the idea of ego depletion has become popular in recent years. This may be in part because it makes sense intuitively. For example, the experience of eating a healthy breakfast and lunch only to get home from work and eat a bag of chips for dinner is pretty easy to relate to.

However, not everyone agrees with the concept of ego depletion. Some scientists report a lack of consistent data to support the idea. Instead, they have found that motivation is not finite. Rather, it can be subjective, and there are ways to increase it. That can be a good thing as you begin to set long-term financial goals.

If you’re looking to build your long-term financial plan, a money tracker app can help. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring. Plus, you can get other valuable financial insights.

Causes of Ego Depletion

There are a variety of factors that may play a role in ego depletion.

•   Low blood sugar. If you haven’t eaten and your blood sugar has dropped, it may be more difficult to exert willpower.

•   Emotional distress. Temptations may be harder to resist if you’re experiencing a state of mental anguish.

•   Unfamiliar tasks. If you are doing something for the first time, you may need to exert more mental energy, which can lead to ego depletion.

•   Lack of choice. If you are forced to do a task not of your choosing, you may be more likely to become depleted.

•   Illusory fatigue. If you think that a task will be mentally tiring, you may experience ego depletion faster. In other words, ego depletion happens more often when you expect it to. If you think a task won’t tax you too much, you may be able to exert more self-control.

•   Cognitive dissonance. Situations in which you do or say something that contradicts your beliefs can tire you out and diminish your self-control.

•   Variable heart rate. Those who experience variable heart rate have been found to have less self-control.

The Effect of Ego Depletion on Your Finances

If tasks that require self-control weaken your willpower, you may be less likely to make good decisions when you experience ego fatigue. When it comes to your finances, for instance, you may be more likely to spend money on things that you can’t afford.

Ego depletion could also mean you’re less equipped to make important decisions, such as how to invest your money. For example, if the market is experiencing a downturn, you may find yourself more prone to panicking and potentially pulling out your money. But in doing so, you’ll lock in losses and potentially miss out on a subsequent upswing.

Ego depletion could also mean you miss important deadlines, such as deadlines for funding your 401(k) or IRAs, or tax deadlines.

Recommended: Personal Finance Basics for Beginners

How to Overcome Ego Depletion

Luckily, there are ways to overcome ego depletion and improve your money mindset.

Get Enough Sleep

Lack of sleep makes self-control difficult. Sleep counteracts fatigue and helps reset your willpower reserves, so practice good sleep hygiene. Go to bed at a consistent time. Make sure your bedroom is quiet, relaxing, and dark. Avoid large meals, caffeine, and alcohol before bed.

Manage Stress

Managing stress can help you address the causes of ego depletion as well as its effects. Consider strategies such as deep breathing, mindfulness exercises, eating healthy, and consistent exercise.

Set Goals

Clear financial objectives and the steps you need to reach them can help overcome ego depletion. Consider using SMART goals, or goals that are specific, measurable, achievable, relevant, and time-bound. With these in place, you’ll know what you need to do to accomplish your objectives, and you’ll also be less likely to make moves that stray from your plan.

Plan for the Long Term

Long-term financial plans take your goals, risk tolerance and time horizon into consideration. They are built to account for the natural cycles of volatility. With a long-term plan to refer to, you may be less likely to make rash decisions in the short term, such as panic selling when markets are down or buying when market prices are peaking and may be nearing a fall.

Recommended: Guide to Money Affirmations

Tools to Help Your Reach Your Goals

There are a variety of tools out there that can help you set and meet your goals and make financial freedom a reality. It’s worth shopping around to find the ones that work best for you and you’re more likely to stick with.

One to consider: a spending app, which can help you set up a budget, categorize and track spending, make bill payments on time, and track your credit score.

The Takeaway

The idea of ego depletion centers around the idea that when we exert self-control for too long, we use up our willpower reserves and are more likely to make poor decisions. Learning the causes of ego depletion is a first step in helping you head off rash financial decisions that may work against you. If you recognize that your willpower is fading, take a breather. And when in doubt, refer back to your long-term financial goals and plan.

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 cause of ego depletion?

Ego depletion can be caused by a number of factors, such as emotional distress, fatigue, low blood sugar, or unfamiliar tasks.

What is an example of ego depletion?

An example of ego depletion might be spending the day hard at work and then coming home, sitting on the couch, and turning on the television instead of pursuing other healthier activities, such as going to the gym.

How do you deal with ego depletion?

There are a number of strategies to combat ego depletion, such as getting enough rest, managing stress, and setting and sticking to long-term goals.

Photo credit: iStock/Delmaine Donson

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.

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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Since 2020, work-from-home opportunities have become easier to find. While it can take some adjustments on both sides, working from home has significant benefits for employees and employers.

Read on to learn some of the advantages of work-from-home roles, as well as how to find these jobs.

What Are the Benefits of Remote Work for Employees?

While no two jobs are exactly alike, you can generally expect these benefits in working from home.

•   Workday flexibility. Depending on company policy, you may be less tied to your desk while working from home during the day. That could give employees the time to attend to housekeeping chores or to take a walk between meetings and tasks. Similarly, employees may be able to start their workday earlier or later based on preference.

•   No commute. With no commute to or from the office, employees who work from home free up time during the day. They may also save money on public transport or gas and car maintenance.

•   Fewer interruptions. With no water cooler to gather around or coworkers to people-watch, working from home often has fewer social interruptions than a traditional office setting.

•   Less formality. The work-from-home dress code is usually less formal than the office. Not only are employees more comfortable during the day, they can save on wardrobe costs.

•   Location. Many work-from-home employees have the luxury of choosing where they work geographically — though they may still be required to work hours that align with their employer’s time zone.

Compared with a traditional office job, working from home can take some getting used to, but many employees feel that it’s worth it.

Recommended: Free Credit Score Monitoring

Examples of Remote Work Benefits for Employees

The benefits of working from home for employees are far ranging and vary by role and company. The examples below help explain why remote work is appealing to many office workers.

Saving Money

People who work from home save money on things like lunches out and an office wardrobe. Employees who can prepare meals in their own kitchen are less likely to rely on takeout. Similarly, employees save money without a commute, whether that means reduced trips to the gas station or fewer public transit passes.

Setting up a home office can involve new expenses, but if workers are smart about managing their work-from-home budget, they usually come out ahead.

A spending app can quickly show you how much money you’d save by working from home.

Recommended: Does Net Worth Include Home Equity?

Saving Time

Office distractions can challenge productivity. Working from home can have its share of distractions as well — including chores, children, and pets. (Some parents with flexible work-from-home jobs may long for their relatively peaceful days in the office.) But for the most part, employees tend to be more productive when they work from home.

At home, you’re unlikely to fall into conversations on a journey from your desk to the bathroom, and less likely to be interrupted when you’re focused on a task.

Recommended: Best Self-Employed Jobs for Parents

Saving Sanity

While stress can be harder to quantify, employees who work from home may feel less frazzled during the workday. This can be attributed to everything from setting up an optimal home office to avoiding a stressful commute.

Reducing workplace stressors can benefit productivity, job satisfaction, and employee engagement.

Recommended: 31 Part-Time Remote Jobs with Flexible Hours

What Are the Benefits of Remote Work for Employers?

At first glance, it may feel like remote work is largely more beneficial to the employee than the employer. However, that’s not necessarily the case. The employer benefits are motivating many companies to prepare for a more remote workforce.

•   Lower operational costs. Employers save money when they’re not leasing and maintaining an office space. They may also be able to save on things like office equipment and employee benefits.

•   Flexible budgets. When a company can hire from anywhere across the country or globe, it may be able to acquire talent at a more affordable rate.

•   Higher productivity. Productive employees lead to a better bottom line for employers.

•   Less absenteeism. When everyone is working remotely, there’s less likelihood of an office bug that sends half the employees home, reducing sick days.

•   Higher retention. Employees who are happy with the remote office policies are more likely to stay with the company. Improved retention rates can save a company significant resources over the long run.

Recommended: Should I Sell My House Now or Wait?

Examples of Remote Work Benefits for Employers

Employees have more autonomy in a remote culture, but worker satisfaction ultimately benefits employers as well.

Better for the Bottom Line

When a team is fully remote, a company saves money and resources on office space, utilities, maintenance, furniture, and benefits like catered lunches and new equipment.

Remote work also frees office managers and similar roles to focus on things like company culture and worker satisfaction instead of sourcing new carpets and real estate.

Better for the Talent Pool

When geography isn’t an issue, employers can access a much wider talent pool. If a company seeks highly specific roles or qualifications, a national or even international search can yield much better applicants than one limited to a single area.

Remote work can broaden the talent pool in another way. Many qualified candidates cannot spend long hours in an office on a regular basis, either because they have a physical disability or they care for a child or aging parent who needs supervision. Also, retirees who want to bring in some additional income may feel more comfortable in a work-from-home job.

Better for Boosting Satisfaction

Satisfaction may be less noticeable than savings on rent or getting better applicants for an open job. Still, when employees are happy in their roles, it generally leads to less turnover, higher productivity, and a more positive work environment.

When teams are engaged and happy, they’ll do better work, saving the company time and money. Plus, less time is wasted on hiring and training new employees, so employers can focus on growth and building a stronger company culture.

How to Find Remote Job Opportunities

If the benefits of remote work make it sound like a good fit for you, here are some ways to “try before you buy.”

•   Consider getting a second job you can do at home after hours.

•   Negotiate with your current company to work from home one day a week for a set period — for instance, Fridays during the summer.

•   Reach out to friends who work from home for their take on what it’s really like (and maybe a referral!).

•   Not all work-from-home jobs are tied to a corporate office. Start your own business inspired by your skills and passions.

The Takeaway

With remote work becoming more common, it’s worth learning about the benefits for employers and employees. Working from home can reduce stress, boost productivity, and even save employees money. For employers, remote work can help their bottom line by reducing office costs and increasing employee retention.

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.

FAQ

What are the benefits of working from home for employees?

Most of the benefits of working from home for employees have to do with autonomy. Work-from-home employees get to choose where they work, how they work, when they work, and even their dress code.

What are five advantages of working from home?

Five advantages of working from home include workday flexibility, saving time and money, higher productivity, location flexibility, and setting your own hours.

What is the biggest advantage of working from home?

For most employees, the two biggest advantages of working from home are saving time and money. Employees save time by not commuting to and from work or chatting with coworkers. Similarly, they’ll probably save money in the long run by avoiding lunches out and spending less on workplace attire.

Photo credit: iStock/miniseries

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.

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