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The trade-in value of a truck is the amount a dealer is willing to give you to put toward the purchase of a new vehicle. Cars depreciate in value the moment you drive them off the lot, so over time, trade-in values tend to decrease as well. They are also impacted by a variety of factors, such as make and model, age, condition, and mileage.

Here’s a look at what your truck might be worth over the first five years of ownership, and the factors that impact that value.

Average Trade-In Value of a Truck After 5 Years of Ownership

The trade-in value of a truck is based on its market value, which is the amount a person is willing to pay based on the truck’s make, model, age, condition, etc. However, when saving up for a new car, it’s important to realize that what a dealer might offer for a trade-in is likely less than the market value. That’s because when the dealer eventually sells your vehicle, they will need to turn a profit. And their profit will be the difference between market value and trade-in value.

Cars, trucks, and other vehicles depreciate, meaning their market value decreases each year. Luckily for truck owners, trucks tend to depreciate more slowly than cars and SUVs.

For example, the average five-year depreciation of Toyota Tacoma, a midsize pick-up truck, is 20.4%, according to a 2024 study by iSeeCars. Average five-year depreciation for Ford F-150, a full-size pick-up truck, is 36.0%. Compare that to an average five-year depreciation rate of 38.8% for cars, 42.9% for midsize SUVs, and 49.1% for electric vehicles.

Depreciation is also an important factor to understand when leasing a vehicle, as your lease payment will cover the cost of depreciation to the lessor.

Supply chain issues, component shortgages, and increased demand for vehicles has driven up the price of new and used cars and trucks in recent years. This has had an impact on how fast vehicles depreciate. In 2024, the average five-year depreciation was 38.8%, compared to 49.1% in 2020.

Factors That Impact Truck Value Over Time

As we mentioned above, the moment your car leaves the lot, it starts to lose value. (For that reason, savvy consumers often believe it’s better to buy a used car over a new one.) What happens to the car will have a big impact on value as well, from wear and tear to how much it’s driven and its accident history. As a result, depreciation and trade-in values will vary from vehicle to vehicle.

Age and Condition

Age and condition are two of the biggest factors that will affect your truck’s trade-in value. The older a vehicle is, the less value it tends to maintain (unless it’s a desirable vintage vehicle). The reason: It’s assumed that the older a car is, the more it will have been driven and the more wear and tear it will have experienced.

All sorts of factors big and small can go into determining condition, from dents and scratches to major repairs made after an accident. Only cars in pristine condition will fetch top market values and trade-in prices.

Mileage

How much a truck has been driven will also have an impact on trade-in value. The more you drive your truck, the more wear and tear you may be putting on the engine and other parts. As a result, trucks with lower numbers on their odometers tend to command.

Make and Model

A truck’s make and model refer to the company that makes the vehicle and the specific product, respectively. For example, Ford is a make while the F-150 is a model of truck. Some makes and models are more popular than others, which can increase trade-in value. This may be for a variety of reasons. For example, some may get better gas mileage or have roomier interiors that make them more appealing to used truck buyers.

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Trim Level

The trim level of a vehicle refers to the optional features it has. For example, higher trim levels may offer more equipment or luxury materials, such as leather seats. Automotive technology, such as back-up cameras and navigation systems, are in high demand. Higher trim levels can translate into higher trade-in values.

Accident History

Even if a car shows no outward signs of damage after an accident, vehicles that have been involved in a major accident or a natural disaster, such as a flood, will usually fetch lower trade-in values.

According to Carfax, any accident will remove $500 from the value of a car, on average, while a major accident can cost as much as $2,100 in lost value.

Local Market Demand

Where you resell your truck can have an affect on its market value. For example, if you live in an urban area, there may be less local demand for trucks than if you live in a suburban or rural location.

Geography can have other impacts on the value of your truck. For example, a truck that’s been through a number of harsh Northeast winters might be in worse condition than one from a warmer, dryer climate.

Increase Your Truck’s Trade-In Value

Bring your truck up to the best condition to increase its trade-in value. Fix whatever damage you can, such as scratches, chips in the windshield, or minor engine repairs. Have your truck cleaned and detailed before an appraisal by a dealer. A money tracker app can help you carve out room in your budget for any repairs.

It’s worth noting that your credit score will also impact the deal you get on your new car. That’s because a higher credit score gets buyers a lower interest rate on car loans.

Recommended: Does Net Worth Include Home Equity?

The Takeaway

How much a truck is worth is calculated based on many factors, including make, model, age, mileage, and condition. The trade-in value will be less than the market value. Understanding your vehicle’s potential trade-in value is an important consideration when budgeting and saving for the purchase of a new or used truck. If you think you may trade it in for a newer model in the future, research vehicles that are likely to hold their value better.

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 trade-in value of a truck?

The trade-in value of a truck is how much money a dealer is willing to give you toward the purchase of a new vehicle in exchange for your old one. Because dealers want to turn a profit when they resell your vehicle, trade-in values tend to be lower than fair market values.

How is trade-in value calculated?

Your truck’s trade-in value is based on a variety of factors, including make, model, age, mileage, and condition of the vehicle. Your truck’s value will depreciate every year, until it no longer has a resale value.

How do I find the fair trade value of my car?

A number of online tools can help you find the fair trade-in value of your car. For example, Kelley Blue Book and Edmunds offer very good online tools. Enter your vehicle identification number, license plate number, or the year, make, model, and mileage of your truck to get an idea of what it may be worth.

Photo credit: iStock/freemixer

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.

SORL-Q324-020

Many experts recommend having an emergency savings fund. The money is intended to cover bills or living expenses due to a job loss, medical issue, or unexpected repairs. But finding money to put aside on a regular basis can be challenging. The 52-week Savings Challenge will get you there in the simplest way possible.

Learn how this savings challenge works and who will benefit the most from it.

What Is the 52-Week Money Challenge?

The 52-week Savings Challenge is a straightforward way to set aside a little money every week. The plan can help you save more than you might expect over the course of a year. The goal is to have a healthy emergency fund that you can dip into to cover unexpected expenses — like car repairs or a trip to the doctor — without blowing your monthly budget.

Although some people like to start these types of challenges on Jan. 1, you can start today, or the first week of next month, or anytime you like. The result will be the same.

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How Much You’ll Save After Completing the Challenge

Follow our basic guidelines, and you’ll save $1,378 in a year’s time. If you deposit the money in a high-interest savings account, interest will accumulate, increasing the amount you’ve saved.

How the 52-Week Money Challenge Works

The challenge’s structure is simple. In week one, put $1 in savings. Week two, $2. Week three, $3, and so forth for 52 weeks in a row. You can tuck the money into an envelope or put it in a piggy bank — but only if you won’t be tempted to withdraw cash before the challenge ends.

Temptation and interest are two good reasons to deposit the money into a bank account. Once a week, you could transfer the money from a checking account to a savings account that you designated for this challenge.

52-Week Savings Schedule

Enhancing the Challenge

Perhaps you’re looking ahead to Christmas or another time of year when you know that money will be especially tight. You can decide to pay ahead so that, if needed, you can skip saving during the weeks in December. That’s the beauty of this challenge: You can customize it to meet your needs.

When December rolls around, if you don’t have extra cash, no worries. You’ve already made those deposits (which are earning interest). If you can keep depositing money throughout December, do so, and you’ll reap even more benefits at the end of 52 weeks.

Here’s another possibility. As you start to save money in this way, you might find that you can save even more. If so, up the ante, perhaps by doubling the amount you’ll deposit each week, so that you can save money fast.

Pros and Cons of the 52-Week Money Challenge

First, the benefits:

•   You’ll be saving money at a time when so many people live paycheck to paycheck. That, all by itself, is a good thing.

•   You can gain confidence in your ability to budget, and to “pay yourself first.” For extra help, use a budget planner app to make planning easy.

•   As the dollars add up, use the momentum to continue the challenge for a second (third, fourth…) year.

•   Let this challenge motivate you to focus more on your financial goals — and improve your financial situation in new ways. Maybe you want to save money on food or pay off student loans, for example.

•   You can participate in this challenge with friends and family members, which can motivate you to keep going.

•   As your savings muscles get stronger, you can create a plan to save for other goals: a new car, for example, or a trip with your family.

Next, the challenges:

•   If the money is too easy to access, it can be tempting to use the funds before the year is up. To prevent this from happening, it may help to put the money in a bank account where you don’t have a debit card.

•   Because the deposit amounts are relatively small, it can be easy to forget to make your deposit or lose track of which week you’re on. Set reminders in your calendar, or use a buddy system where you and a friend remind each other.

•   If you start this challenge at the beginning of the year, the biggest deposits will be scheduled for the holiday season when you may have more expenses. In that case, start with $52 on Jan. 1, when the challenge is fresh and new, and then deposit a dollar less each week. This has the added benefit of getting more money into the account more quickly, which gives you more motivation early on. Plus, you’ll benefit from more interest more quickly.

•   If you find that you can’t make the deposit during one week, don’t get too down about it. This is a marathon, not a sprint. You can catch up.

Who the 52-Week Money Challenge Is Best For

First, if you’re enthusiastic about the idea, then it’s definitely for you. This idea can be adjusted for all ages, too. If, for example, you have young children and want to teach them good saving habits, start them with cents instead of dollars.

If you’d like to turn the savings process into a game, then this challenge is tailor made. You can, for example, write each of the dollar amounts, $1-$52 on a large piece of paper and then cut them out — one dollar amount per square.

Put the slips of paper in a hat or box, and select a square each week. That’s the amount you’ll save this week. If you need more advance notice of your savings target, pull the slips out of the container at the beginning of the challenge, one by one, and mark them on a calendar. The first slip drawn goes on week one, the second on week two and so forth.

Search for “52-week savings challenge printable,” and you’ll find plenty of other ways to keep track of and enjoy participating in the challenge.

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The Takeaway

The 52-Week Savings Challenge is a straightforward way of saving a relatively small amount of money each week to build up an emergency savings fund. In Week One, you save $1. Week Two, save $2. The most you’ll have to save in a week is $52, at the end of the challenge. Simple as it is, it’s also quite flexible and easy to customize in whatever way will work best for you.

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 the 52-week savings challenge worth it?

If you stick with the plan for a year, you’ll save $1,378 — plus interest if you deposit the funds into an interest-bearing account. This challenge can help you strengthen your savings skills and serve as a springboard for accomplishing other financial goals.

What is the $10,000 challenge?

This challenge is structured in the same way as the 52-week one. In week one, though, you’ll start with $125. Each week, you’ll add another $25 to the amount you save. The result: $10,000 plus any interest earned.

What is the no-spend challenge?

In this challenge, you’ll commit to spend money only on essentials, such as housing, gas, groceries, and utilities. You can set a timeframe for this challenge to build up your savings account. And you can customize the rules however you like — perhaps limiting the challenge to no-spend weekends.

Photo credit: iStock/Jose carlos Cerdeno

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

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

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

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-Q324-049

You’ve been offered a job and everything is falling nicely into place — until your potential employer tells you they need to do a background screening, which will include running a credit check. Your credit score isn’t where you want it to be, and suddenly you’re very concerned. Will they rescind the offer based on your finances?

For positions outside the banking and finance world, your credit report will likely have zero effect on whether you get the position. And background checks for employment don’t affect your credit score.

Read on to learn the common types of background checks employers run and why they may want to look at your creditworthiness.

What Is a Background Check?

Not all job applicants are completely honest during the interview process. For that reason, many companies run some type of background check on prospective employees. Research from SHRM, the Society for Human Resource Management, found that 92% of companies in the U.S. conduct some type of background screening as part of the hiring process.

Employers order background checks not only to verify your identity, but also to confirm you’re telling the truth about certain things, including your past employment, academic credentials, and whether you have a criminal record. (Similarly, banks run credit checks for new checking accounts mainly to verify your identity and rule out identity theft and fraud. This shouldn’t usually affect your credit score.)

Pre-employment screening is typically conducted by a professional background check company hired by the employer. These third-party firms have access to resources and tools the average employer doesn’t, so they can deliver a more comprehensive report in a shorter amount of time.

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What Are Employers Looking Out For?

Hiring managers are looking to avoid bringing someone onboard who is unqualified or poses any kind of risk to their business. Without any official vetting, the wrong candidate could result in financial damage to the company or make the workplace less safe for other employees.

By doing a background check, companies can reduce property damage, employee theft, and liability and legal costs incurred by hiring unqualified, uncredentialed people. Companies also hope to avoid employees who have exhibited threatening behavior toward coworkers in the past.

When companies order a credit check for employment, it’s to get an idea of whether the candidate might show signs of financial problems.

Having excessive debt and using a lot of your available credit could signal financial hardship and distress. An employer may see candidates with high outstanding debt or maxed out credit cards as having an increased likelihood of committing theft or fraud.

How a Background Check Affects Your Credit Score

The good news is an employer background credit check won’t affect your credit or FICO score at all. Why? It’s considered a soft inquiry, which pulls most of your financial information for data purposes as opposed to a hard inquiry, which can take points off your score. That’s because hard checks generally take place when a financial institution looks at your score to determine whether or not to issue you a loan or a credit card.

As mentioned earlier, an employer-requested credit report will be modified, listing your credit utilization rate, any past or current bankruptcy, available lines of credit, auto or student loans, and credit card payment history.

The credit report the employer sees won’t show other soft inquiries, so they can’t see if other employers have checked on you.

You, however, can see the soft inquiries if you request your own credit report. You could even sign up for a free credit-monitoring service to keep tabs on your credit on an ongoing basis. A money-tracker app can give you ongoing insights into your financial health.

7 Types of Background Checks

There are many different types of background screenings employers use to vet job candidates. The employer may use one or a combination of checks depending on their needs and concerns. Here are seven kinds of background checks a company may use to screen a new hire:

Identity Verification

This type of check is usually one of the first stages of a background check because an employer wants to first know that the person is who they claim to be. An ID verification confirms the candidate’s name, age, address, and Social Security number, to rule out any aliases or stolen identity.

Criminal Screening

A criminal record check enables the employer to make an informed decision about whether or not the employee will pose a threat to their company, clients, and employees. It’s especially important if the person will have access to financial information, security responsibilities, or work alongside vulnerable populations such as the elderly and children.

Criminal background checks typically include county, state, or federal records of any arrests, convictions for felonies and misdemeanors, outstanding arrest warrants, sex offenses, incarceration records, and any acquittals, pending, or dismissed charges.

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Credit Check

It may not be relevant to run a credit check for every potential new hire. An employer may feel it’s necessary for positions involving a security clearance, proximity to money, sensitive customer data, or confidential company information. And they’re not really interested in knowing whether you have a fair credit score.

A credit check may raise certain red flags that employers want to avoid, especially if it’s a job in the banking or finance sector. Many late payments can indicate you have trouble managing your money, aren’t responsible and organized, or can’t live up to agreements. As mentioned previously, these credit checks will not affect your credit score, nor will the employer be able to see your score.

You may want to see if your state or city allows employer credit checks. Currently, 11 states (California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, Washington), and the District of Columbia have passed laws restricting these types of credit checks. New York City, Chicago, and Philadelphia have similar laws.

By the way, credit-monitoring services can alert you when someone has run a hard inquiry on your credit.

Motor Vehicle Records

When an employee may be expected to drive company vehicles or transport clients and customers, the employer will want to review the candidate’s driving record to ensure they’re hiring safe and responsible people.

A driving record check will show the person’s driving history, including any past license suspensions or revocations, vehicular crimes, accident record, DUI convictions and any car insurance lapses. The motor vehicle report will also reveal the number of points someone has on their license.

Recommended: What Credit Score is Needed to Buy a Car?

Professional License and Education

Some people may exaggerate or even give false professional credentials, claim they’re licensed by an official agency, attended a certain school, or have a specific academic degree, certain training, or certifications, thinking no one will really bother to check. But not so fast. Employers can and, in many cases, do fact check these claims.

Not verifying stated qualifications could lead to hiring a candidate who isn’t professionally qualified for the job. And hiring someone without the skills and education needed can make the company vulnerable to lawsuits and other problems. Education verification checks universities, colleges, vocational schools, and high schools to confirm enrollment, dates of attendance, type of degree obtained, and graduation date, among other details.

With professional licenses, background screening companies generally contact organizations to check if the person is licensed and is a bonafide member. They will make sure the membership is in good standing and hasn’t lapsed or expired.

Fingerprint Check

Along with the criminal check, fingerprint checks are used to reveal any criminal arrests, charges, or details about prior case results. Unlike other screenings, fingerprint checks require the potential employee to actively participate in the process by having their fingerprints scanned.

Fingerprint checks are often required in regulated industries such as financial services; government or criminal justice agencies; jobs requiring security clearance; and healthcare, where a candidate may be responsible for someone who is vulnerable such as a child or the elderly.

E-Verify

E-Verify is a government-run, web-based system through which employers can confirm an individual’s employment eligibility. Verification is based on data taken from an employee’s Form I-9, Employment Eligibility Verification and compared to records available to the Social Security Administration and U.S. Department of Homeland Security.

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How to Prepare for a Background Check by a Potential Employer

First, be honest on your job application and resume, and during the interview process. Bring up anything you think might concern your employer before they do a background check. You can also do a background check on yourself to see if there are any discrepancies or mistakes in your records you can clear up. You can order one from a provider such as Betterfuture.com.

In terms of your credit report, if you’re concerned an employer may have some issues, it’s a good idea to review yours in case there’s something you need to correct or resolve. The three main credit-reporting bureaus are Experian, TransUnion and Equifax. You can access your credit report for free by going to AnnualCreditReport.com, a federally mandated site. (Banks sometimes rely on a tri-merge credit report to see a round up of all three but consumers usually do not have access to this type of report.)

What Are Your Legal Rights as a Job Applicant?

According to the Federal Trade Commission (FTC), employers must obtain your written permission before they can run a background check. You have the right to say no, but bear in mind, this could result in your not getting hired.

When employers use a third party to conduct a background check including credit, criminal record, and past employment, the background check is covered by the Fair Credit Reporting Act (FCRA).

Under this law, employees have the right to:

•   Be informed of the background check

•   Provide consent for the background check

•   Review information pertaining to their personal and financial information

•   Correct any inaccuracies the report may contain

•   Appeal decisions if the applicant feels the decision was made unfairly

Laws in your city or state may impact whether, or when, employers can ask about and run a background check for your criminal or credit history. Before you fill out an application, check the laws in your state.

Can You Get a Copy of the Background Check?

Yes, the Fair Credit Reporting Act states you have the right to a copy of the background check from the company that prepared it. The name of the agency was likely on the consent form you signed, but if you can’t remember it, ask the employer to supply it. The screening agency should be able to provide you with a complimentary copy in a timely manner.

The Takeaway

Background checks have become a pretty routine part of the hiring process. These screenings can include a simple ID verification, driving or criminal record check, and pulling your credit report. Although it can be worrisome to know your employer’s checking on your credit, they’ll see an overview of your financial picture but not your actual credit score. Since it’s a “soft pull,” your credit score number will not change.

By knowing where you might be most vulnerable, you can prepare yourself by maintaining good records, being honest about your work and education history, and conducting your own background check to clear up any inaccuracies or potential problems.

Getting your finances on track starts with your credit score. Free credit monitoring is available with SoFi’s money tracker app. All you have to do is sign up (it takes just minutes) and start getting insights into your financial health.

FAQ

Can a job offer be rescinded due to bad credit?

Yes, an employer can withdraw the job offer for almost any reason, including your credit report. They can’t, however, rescind the offer due to discrimination based on gender, race, or disability. If you think this could be a reason, consider talking to an attorney. Otherwise, you can express your disappointment to the hiring manager and request more details on why they made their decision. This provides an opportunity to get a clear explanation.

What does an employer check show?

Employment background checks are typically performed to see an employee’s job history, if they have a criminal record, and to verify their identity. A screening may also include validating education and/or professional qualifications, driving records, and/or credit history.

Do background checks show up on a credit report?

When a company requests a credit check as part of employment screening, it’s considered a soft inquiry. Since soft inquiries aren’t linked to an application for new credit, they’re only visible to you when you view your credit reports.

Photo credit: iStock/MissTuni

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

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

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.

This article is not intended to be legal advice. Please consult an attorney for advice.

SORL-Q324-040

If you are like many people, you may have asked yourself at some point in life, “Will I be rich one day?” No one knows for sure what the future holds, but there are a few things you can do to increase your chances of becoming a millionaire.

One of the best ways to amass wealth is to invest in assets that will appreciate over time. But while that sounds good, finding a starting point can be challenging for some. For example, you can start your own business or work hard to climb the corporate ladder, but which is the better option? And you’ll want to invest the money you earn. But where?

Whatever you do, it’s smart to remember that it’s okay to take risks and make mistakes; learning from your experiences is a critical component of success. Above all, remember that wealth accumulation is a marathon, not a sprint. It takes patience, commitment, and perseverance to achieve financial security.

What Is a Sign of Wealth?

Often, specific aspects of one’s physical appearance such as luxury cars and designer clothes are taken as a sign of being rich or wealthy. Unfortunately, these signs aren’t always reliable. For example, some people may live in an extravagant home, giving off the appearance of wealth, but it may simply mean that they can access money — perhaps through credit, savings, or even family.

Real signs of wealth are often more attitudinal, and many can be cultivated through patience and practice. Here are a few people who were early millionaires due, in large part, to their drive and focus.

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Examples of Millionaires Under 30

With the advent of the tech industry, smart investments, business ventures, or inheritances — i.e., the great wealth transfer — millionaires under 30 are becoming increasingly common. Here are three examples of millionaires who earned their fortunes before turning 30.

Mark Zuckerberg: Zuckerberg created Facebook at age 19 while attending Harvard University. The idea was to match photos with the names of other students. And in just a few short years, Zuckerberg became a self-made millionaire at age 22.

Sergey Brin: Brin is a Russian American computer scientist who, at the age of 25, co-founded Google, Inc., and became a millionaire. Google is one of the world’s most valuable companies, and today, Brin’s net worth is estimated to be upwards of $120 billion.

Alexandr Wang: Wang founded Scale AI in 2016 as a way to analyze data far faster than any human could. Today, Scale AI’s technology has been used by the U.S. Airforce and U.S. Army, as well as 300+ companies. Today, Wang’s net worth is estimated to be over $2 billion, and at age 27, he’s among the youngest self-made billionaires.

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9 Signs of Wealth to Look Out For

In the U.S. 1% of earners take home nearly 30% of the country’s income, so it’s essential to know what signs to look for when trying to identify if someone is wealthy. While there’s no one-size-fits-all definition of wealth, some cues can give you a good idea of whether you or someone you know is doing well financially. (And a net worth calculator can help you tally up your own assets.)

Here are six signs of wealth to look out for that indicate you’re on track to becoming wealthy:

1. You’re an Overachiever

It’s hard to be modest when you’re an overachiever. You know you’re good at your work and are not afraid to let everyone know. Overachievers work hard and try harder. While this may make some people uncomfortable, it comes naturally to you.

2. You Started Making Money At a Young Age

It is not uncommon to see young adults with successful careers in today’s society. While some people played with toys as a child, others learned how to make money. For example, it could mean that you had a paper route or a babysitting business.

Making money at a young age, or any age for that matter, is not always easy. But an early start in earning, tracking your money, and investing can put you on an accelerated schedule when it comes to building your wealth and becoming a millionaire.

3. You Take Action

There will be times when things happen that are out of your control. You may feel stuck and as if you have no way to change your circumstances. However, these are the times when you must take action to create the life you want to live. For example, it might mean organizing your finances to get what you want. And, sometimes you’ll have to take some risks and go for it. It can be scary, but it’s worth it to achieve your goals.

When faced with a difficult situation, it’s essential to remember that you always have a choice. You can choose to give up, or you can choose to fight for what you want. Only by taking action can you make progress and take a step towards achieving financial wellness. So don’t be afraid to step up and take on whatever life throws your way — you can do it!

4. You Are Outspoken

In a society where people get judged by how much money they have, it is no surprise that many go out of their way to keep up appearances. And while some may try to blend in with the wealthy crowd, a wealthy person will often stand out with his unique style or outgoing sense of humor. Wealthy people tend to feel less inhibited and are more likely to speak their minds. They may also be less concerned with the rules and more likely to take risks.

5. You Possess a Sense of Urgency

When it comes to the wealthy, there are a few telltale signs that set them apart. One of these is their sense of urgency — they don’t like wasting time and are always moving forward. This urgency allows them to set financial goals, achieve them, and maintain their wealth. It’s also one of the reasons why they may seem constantly stressed out — they’re always trying to do more.

6. You’re Focused More on Saving Than Earning

It doesn’t matter if you earn $50,000 or $250,000 a year. Unless you consistently spend less than you make, you’ll never get ahead financially. People who focus on their budget and saving their disposable income understand how to live within their means and focus on what’s most important: saving money for the future.

7. You Know the Difference Between Needs and Wants

In our materialistic society, getting caught up in the “must-have” mentality is easy. Advertisements are everywhere, and social media posts tell us we need the next latest and greatest products. It can be challenging to discern between the things we need and want.

A sign of a wealthy person is their ability to distinguish between the two. They know which items are essential for their well-being and those which would be nice to have. Advertising or peer pressure doesn’t work on rich people, and their possessions don’t rule them.

Recommended: Should I Sell My House Now or Wait?

Spiritual Signs You Will Be Rich

Are there spiritual signs that you can be a wealthy person? Some people believe steadfastly in spiritual and other signs of wealth and luck. Here are a couple of examples:

Gravitating to the Lucky Number, 8

In Chinese culture, the number 8 is considered a lucky number. Individuals who gravitate toward this number may believe it will bring them good fortune. Some people might even go as far as to change their phone number or social media handle to include the digit 8.

A Psychic Confirms Wealth is Coming

Some people consult psychics to get guidance on anything from love to health and even money. While many psychics will say they can tune into your energy and give you specific information about your future, and many people believe their predictions, you may be better off putting the money you’d pay the psychic into savings.

Pros and Cons of Having Signs of Wealth

There are very few times when it can be helpful to show off your wealth to others. Indeed, showing off can make others feel intimidated. Additionally, it can attract unwanted attention from criminals or others who want to take what you have. And having too many signs of wealth can make you a target for scams or other fraudulent schemes.

The Takeaway

If you identify with any of these habits you’re likely well on your way to building a significant amount of wealth. However, it is essential to remember that wealth accumulation is not a one-time event; it’s a way of life. It’s something you’ll need to make a habit of, if you want to succeed. For many people who work hard, stay focused, and are disciplined, it is possible.

And as you’re building your wealth, tracking your income and expenses is one of the primary ways to manage your money. SoFi’s money tracker app can help you keep track of your funds so you can make the best spending decisions and start building your very own fortune today.

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

At what point is someone considered wealthy?

There is no magic dollar amount that indicates someone is wealthy and one person’s definition may not be the same as another’s. But in 2022, the top 1% of earners took home an average of $785,968, according to the Economic Policy Institute. Of course the amount you earn is only part of the wealth story. How much of your income (or inherited wealth) you retain is affected by your spending habits.

What are invisible signs of wealth?

People who are stealthily wealthy still might have a “tell” that gives them away. Use of private banking or wealth management services would be one example. Another might be not working but being able to maintain an expensive hobby such as riding horses or boating. Buying bespoke products, whether tailor-made clothing or custom-designed furniture, is another subtle giveaway.

Photo credit: iStock/miniseries

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.
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 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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You made it through the interview process and have an official job offer via email. But how do you accept an offer letter? Say yes right away, or take time to think it over? Should you talk to your new employer on the phone even if you received the offer by email?

Before you commit, you’ll want to make sure you take the right steps. Here’s a guide to help you navigate the process once that job offer appears in your inbox.

How To Accept a Job Offer

It’s important to know how to reply to your new employer in order to show them you’re a professional and reinforce their choice in hiring you. Accepting the job offer with clear, respectful communication helps make a good impression and establish a positive rapport from the beginning.

Whether or not the employer offers you the job by email or phone, the first thing to know is you don’t have to give a definitive answer right away. Employers realize a new hire may need time to mull it over. It’s perfectly okay to reply with, “Thank you for the offer. I really appreciate it. May I take the next day or two to think it over before I respond?” This is important, particularly if you want to prepare to discuss salary, bonuses, your title, or other company benefits such as health or employer-sponsored life insurance.

Unless it’s urgent for the employer to fill the position ASAP, they will most likely be fine with granting you two or three days to make your final decision. Try not to take too long, though. It’s best to stay within a 48-hour timeframe so you don’t leave them hanging.

Recommended: Average U.S. Salary By State

Evaluate the Job Offer

If you’re taking a couple of days to give your final answer, you’ll want to truly assess if this position is right for you. First, and probably most important, is evaluating the salary offer. Is what they’re paying enough for you to live on, or are you going to need a side hustle or a second job to make ends meet?

Another factor to consider is whether the offered income is commensurate with the job’s duties, responsibilities, and your experience. Researching similar positions in the industry can give you an idea if the company is offering competitive pay.

You’ll also want to make sure you’re satisfied with the benefits package, work hours, and vacation and sick time policies. Is the employer offering any other perks that may seal the deal, such as college tuition assistance or an employer match on your 401(k) contribution?

Other factors you may want to evaluate include the work culture and environment. For example, if you tend to be someone who works alone and the company loves hosting afterwork happy hours or frequent team-building workshops, it might not be the best fit for you.

Lastly, think about your career trajectory and how this job might help move you forward. If it provides challenges, allows you to learn, and offers room for advancement, it may be a clear cut answer, especially if it’s your first job or you’re changing careers.

Questions To Ask the Employer Before Accepting a New Job

Before accepting an offer letter, make sure you get answers upfront to any questions you may have. During the time you’re evaluating your options, gather your thoughts and make a list of what you want to know. These queries can eliminate any doubts you might have, provide answers to questions you may not have asked during the interview, and prepare you for what to expect on your start date.

Asking important questions also clarifies what your role is, the company’s expectations of you, and in turn, what your expectations of the employer should be.

Some questions you may want to ask:

•   Is the salary negotiable?

•   When will I be eligible to receive benefits?

•   What types of employee savings plans are offered?

•   What types of pre-employment background checks or screening does the company do?

•   To whom will I be reporting to?

•   What should I expect from the onboarding process?

•   What type of training will I receive?

•   What is the company policy regarding remote or hybrid work?

•   Will I be expected to work late or on the weekends?

•   Does this position offer bonuses or commissions?

•   What’s the workplace dress code?

Negotiate the Job Offer

Seeing if there’s any wiggle room with certain aspects of the job is important before you make your official decision. For example, if the job doesn’t require you to be onsite every day, you might ask if you can work a hybrid schedule. Or perhaps there’s a possibility of a flexible schedule where you choose the 8-hour shift you want to work.

Although it can feel awkward and uncomfortable to bring it up, many employers actually expect potential new hires to bring up the salary subject. In fact, according to a poll by CareerBuilder, 73% of employers in the U.S. anticipate a salary negotiation upon the initial job offer. And bringing it up can literally pay off. A study by Fidelity Investments found 87% of young professionals aged 25 to 35 who negotiated their salary got at least some of what they asked.

(If you find yourself more interested in maximizing your income and managing your finances, a free budget app can help you get started.)

Talking to your new boss about salary before signing on may be the only time you’re in the driver’s seat in salary negotiations. Take advantage of this moment and the fact the employer wants you. Asking for more money, even if it’s for an entry-level salary, demonstrates you’re a confident, business-savvy professional who knows their worth.

If you want to negotiate the salary after you get the job offer, do your homework. Find out what salaries competitors are offering for someone with your skill set and experience, on such sites as Payscale.com, Glassdoor.com, or Salary.com. Set the bar high initially and ask for the top of your range, knowing you’ll probably end up somewhere in the middle between what you want and the maximum the employer is willing to offer. Be prepared to give reasons as to why you should earn more, touting your experience, accomplishments, and the value you’ll bring to the company.

In the event you don’t get your desired salary, see if you can negotiate for other things that might make up for it, such as a signing bonus or employee stock options.

Accept the Job Offer Over the Phone

A phone call is a common way employers let the applicant know they’ve landed the job. When that call comes, you’ll want to be prepared to know exactly what to say.

If you’re offered the job by phone, first thank the caller, confirm you’re interested, and express your gratitude for the opportunity to fill the position. This gesture helps to establish a good relationship and lets the supervisor know you’re enthusiastic. A reply can be as simple as, “Thank you for extending this offer. I’m delighted and am excited by the opportunity to work with you and the company.”

At this time, you’ll want to ask the employer to send you the written offer letter or contract detailing the conditions of employment, salary information, job duties, and benefits. Once you get it, review it carefully to make sure the terms are acceptable, determine what you might want to negotiate, and look for any small details in fine print that may not have come up during the interview process.

Follow Up With an Email

The process for accepting a job through email closely follows the same protocol as by phone.

In an email, you’ll want to open with a thank you for considering you for the position and say you’re excited about the prospect of joining the team. Here’s the opening to request time to think about the offer, letting them know you have some questions, and inquiring when it may be possible to discuss them. The person will then set up a time to talk on the phone or by video chat, or might ask you to send your questions along in an email.

You should also ask for the written offer here too, if it is not included in the email. If you’re recently out of school, your offer letter can serve as proof of income for student loan repayment plans and apartment applications.

Who Should You Email To Accept a Job Offer?

The person who officially offers you the job is the one to whom you should directly respond. At this point it will most likely come from the hiring manager or your future boss. Regardless, reply to the person sending the email. If there are cc’s, be sure to hit reply all to include those parties.

What To Include in a Job Offer Acceptance Letter

A job acceptance letter gives you the chance to document key points about your new job and clarify the terms of employment. Getting it in writing helps prevent future misunderstandings.

Your acceptance letter should include the following:

•   Thank you to the employer for offering you the position, stating the full job title.

•   A formal acceptance of the job offer.

•   Confirm the terms and conditions of employment: starting salary, health benefits, work hours, and start date.

•   Close by showing appreciation for the opportunity and your eagerness to join the company.

Advice on Writing a Job Offer Acceptance Letter

Don’t quickly jot off and send a job acceptance letter. Instead, carefully plan out what you want to say. Make sure it’s well-written, strikes a professional and polite tone, and covers all of the important bases. Be sure to proofread carefully for spelling and grammar errors before sending.

When composing the acceptance via email, create a concise subject line such as:

•   Acceptance of [Job Title] job offer – [Your name]

•   [Your Name] – [Job Title] job offer acceptance

Here are some sample templates to help you craft your response:

Job Offer Acceptance Letter Sample #1

Dear Ms. Jones,

Thank you for offering me the position of Account Executive with XYZ company. It is with great enthusiasm that I accept the job offer and look forward to starting employment with your company on [Month, Date, Year].

As we discussed, my starting salary will be $50,000 and health insurance benefits will be provided after 60 days of employment.

Please don’t hesitate to reach out at any time if there’s anything more you need from me.

Thank you again for giving me this wonderful opportunity. I am eager to join the team and make a positive contribution to the organization.organization.

Sincerely,
Your signature
Typed name

Job Offer Acceptance Letter Sample #2

Dear Ms. Jones,

I am writing to confirm my acceptance of your job offer on [Date job was offered] and to let you know how delighted I am to be joining the XYZ company as an Account Executive. I believe I can make a valuable contribution to the company, and I am very grateful for the opportunity you have given me.

As discussed, my starting salary is $50,000 with the full range of benefits granted to your employees. My scheduled work hours are from 9:00am to 5:00pm, Monday through Friday. I will report to work on [Start date].

Thank you for the confidence you have expressed in me. I look forward to a long and productive career with XYZ company.

Sincerely,
Your signature
Typed name

Job Offer Acceptance Letter Sample #3

Dear Ms. Jones,

I was very excited to get your call and receive the job offer for the Account Executive position at XYZ company.

After reviewing the offer, I had a few questions I wanted to run by you — particularly about the base salary and the company’s benefits package. Would it be possible to arrange a phone call to discuss?

Thank you in advance for your help with this. I look forward to speaking to you again soon.

Sincerely,
Your signature
Typed name

What to Expect When Accepting a Job Offer

Once you and your new employer have hashed out any negotiated terms in your offer letter, ask them if anything else is needed from you prior to your first day. If you’re employed elsewhere, inform your current boss you’re leaving and set your termination date (typically two weeks after you give notice). You’ll also want to determine if you have the option of utilizing COBRA to stay on your current employer’s health insurance plan if your new employer’s health benefits don’t kick in right away. And look into how to roll over your 401(k) to the new employer’s plan if you wish to do so.

Your new workplace may require certain things before you start, including filling out paperwork and submitting documentation for your HR file, plus drug testing or a background check. There may be an orientation, training classes you’ll need to attend when you start, and an employee handbook to study.

Recommended: What is The Difference Between TransUnion and Equifax?

The Takeaway

Whether you’re offered a job by phone or email, it’s important to respond in a timely, professional manner, especially if you decide to take the position. But you don’t have to say yes immediately. It’s acceptable to ask the employer if you can have a couple of days to think about it before you can make a final decision. Depending on what the company is offering benefits- and salary-wise, you may want to come to the negotiating table with the employer to see how to maximize your situation.

SoFi helps you keep track of your money, all in one place. With our money tracker app, you can set budgets, categorize your spending, spot upcoming bills, and monitor your credit score, all for free. You’ll get updates on your progress and be able to set financial goals. You can even talk one-on-one with a financial planner.

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 do you say when you accept a job offer?

Thank the employer, let them know you appreciate the offer, and communicate you’re excited about joining their company. Responding in an upbeat, positive way shows your enthusiasm and signals to the employer they made the right choice.

How do I accept an informal job offer?

You can accept the job offer over the phone or by email but follow the employer’s lead. If they call you, it’s best to respond in kind and accept it over the phone. In the case of an emailed job offer, you can send your response that way. Most likely, even if they offer you the job over email, the employer will follow up to solidify things verbally.

How do you say yes to a job offer?

Once you’ve sorted out any questions with the employer and completed any negotiations, ask for the offer in writing if you haven’t already received an offer letter. Read over the offer letter carefully to ensure all of the details are correct. If everything is in order, you can send the email confirming your salary, your job title, start date, and any other agreed-upon conditions. Be sure to thank them again and express again how much you’re looking forward to joining the team.

Photo credit: iStock/Tempura

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

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

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

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.

This article is not intended to be legal advice. Please consult an attorney for advice.

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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