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Your 40s are a pivotal point in your life. You may have a house, a family, aging parents, and a busy job by this time. College expenses for kids may be looming, as well as retirement a little farther off. Maybe you’re hatching a plan to start your own business soon or buy a beach house that’ll be your empty-nester home.

Each person will have unique financial goals in their 40s, which will depend on many factors, like lifestyle, salary, and acquired assets. Now is the perfect time to crystallize those dreams and get your money in top shape. You’re old enough to know what you want, and chances are, you have many peak earning years ahead.

Read on for financial planning tips for your 40s, including:

•   Why it’s not too late to start budgeting and saving in your 40s

•   What are the right financial goals for 40-year-olds

•   Ways to save for children’s college expenses

•   How to save for retirement

•   What financial goals you should meet in your 40s.

Why Turning 40 Is a Big Deal

Where personal finances are concerned, your 40s are a big deal. You’re most likely approaching the height of your career and earning potential. Research from the Bureau of Labor Statistics says that primetime for earnings usually hits between age 35 and 54.

But you may also have many more expenses, such as planning for college for your children, planning for retirement, and caring for aging parents. Your 40s are a complicated decade where sound financial planning is crucial for a secure future.

Why It Is Not Too Late to Start Financial Planning in Your 40s

If there is one thing that is certain in life, it is uncertainty. Things change. Many people return to school in their 40s to boost their earning potential. Some take the plunge and dive into an entrepreneurial venture. Some leave the workforce entirely to focus on raising a family.

Whatever your life brings at this stage, you still have a couple of decades to plan for the years ahead, including your retirement, so set some goals now. It’s advisable to set long-term goals (5+ years), mid-term goals (2 to 5 years), and short-term goals (1 to 2 years). Having this staggered approach can help you balance your varied aspirations. Different timelines can demand different tactics.

Financial Planning Tips in Your 40s

So how exactly can you successfully manage your money in your 40s? Here are some tips for developing a financial strategy, saving money in your 40s, and more.

Pay Off Credit Cards and High-Interest Loans

Pay off as much high-interest debt as you can. This debt, typically the kind charged on credit cards, can be a major drain on your finances. Currently, credit card interest rates hover near 20%, which can throw a wrench in your budget if you’re carrying a balance.

You don’t need to stop using plastic completely, but you do want to whittle down what you owe. Credit cards can actually boost your credit score if you use them wisely and pay off the balance each month. If you can’t easily prioritize this debt and pay it down, options include:

•   Getting a balance transfer credit card, which will allow you to pay no or low interest for a period of time and catch up on payments

•   Taking out a debt consolidation loan at a lower rate to pay off the cards

•   Talking with a low- or no-fee credit counselor for guidance.

Invest in Physical and Mental Health

Healthcare can be one of the biggest expenses a person faces, so it pays to take care of yourself. The healthier you are, the fewer services and interventions you will likely need, and the less you will pay in deductibles each year. Most importantly, your quality of life and ability to earn will be so much greater if you are physically and mentally healthy. Take steps to assess your wellness and address any issues that are brewing. Also make sure that you choose the right health insurance plan for your specific situation.

If you have aging parents, talk to them about their health insurance plan and finances so that you understand how they are handling their wellness costs and have peace of mind.

Look More Closely at Retirement

At age 40, many people decide now is the right time to start saving for retirement. Or perhaps they already have a retirement plan or a 401(k) through their employer that they haven’t revisited recently.

Whatever your exact situation, your 40s are a good time to focus on your plan. You might think about increasing your 401(k) contributions, opening a Roth IRA, or finding a taxable investment account. Also, if you get a raise or bonus, why not put a chunk of it towards saving for your future?

You’ll likely want to consider how much of a nest egg you will need to retire and whether your current plan will get you there. If you pay for a professional financial planner, they can help you figure out how to save money in your 40s and maintain your desired standard of living into retirement.

Plan for Children’s Expenses (College, Careers)

It can be a shock when you realize that your baby is suddenly heading to college, and the cost of paying for their education may be an even greater surprise—and not necessarily a pleasant one. It can be very expensive. That’s why, when it comes to budgeting for couples or single parents, paying for higher education is often a major (and majorly challenging) goal.

There are saving plans specifically designed for college; for instance, 529 plans offer many benefits. If your children are not headed to college, other savings options like certificates of deposit (CDs) might be a better way to invest in their future. Teach your children sound financial management skills so you won’t be supporting them in their adulthood.

Some people go back to school in their 40s to help them move to the next level at work or prepare for a new career. If you are among them, create a budget that includes all your expenses and income. Project those numbers into the next few years to help you plan your life and stay on track financially.

Choose or Revisit Insurance Plans

In addition to health insurance mentioned above, your 40s can be a good time to consider disability insurance. If something happens to you and you cannot work, you could be forced to use your retirement and emergency funds sooner. Whether you choose short-term vs. long-term disability insurance, a policy can protect you by providing a safety net.

Death is an unavoidable life event, so review your life insurance policy (could you get a better deal elsewhere?) and be sure you have drafted a will. Parents who plan and pay for their funerals ahead of time ease the burden on dependents. The median cost of a traditional funeral is around $7,848, according to the National Funeral Directors Association. An insurance policy, a payable-on-death account, or prepaying at a funeral home can be good options to fund end-of-life expenses.

If you are shopping for life insurance, there are many online comparison tools that let you quickly see some different offers and how they stack up. It’s an easy way to start the process.

Keep Emergency Funds in Good Shape

Life is full of unexpected twists and turns. Some of them are not so fun, like having your car conk out, the roof leak, or your job suddenly come to an end. In times like those, you will need access to funds to cover your costs. That’s why having an emergency fund is important; with enough money to cover three to six months’ worth of your basic living expenses in a savings account, you’ll have peace of mind. If you don’t yet have a rainy day fund, start putting money aside each month (even just $25). Funnel any “found money” (say, a tax refund) to this savings account too.

Invest in a Diversified Portfolio

Growing your wealth often involves investing. While it does carry risk, it can yield big rewards. For instance, the annualized Standard and Poor’s (S&P) 500 return over the last 10 years was a healthy 14.7%. You might invest on your own, with a broker, or with automated financial planning. The vehicles you choose will depend on your risk tolerance. Some people invest in CDs and bonds, which are relatively low risk, while others enjoy speculating on the stock market. Manage your risk by never investing more than you can afford to lose.

Some people prefer to invest in stocks using dollar-cost averaging—investing a fixed dollar amount regularly, regardless of the share price—which can help you to build a diversified portfolio while minimizing volatility over the long term.

How Technology Can Make Managing Finances Easier

Managing finances and investments is so much easier in the digital age. Mobile banking and finance apps mean that you can manage your finances from your armchair 24/7. Online lenders offer favorable investment and savings options, and online trading platforms allow anyone to trade on the stock markets.

Where Should I Be Financially by 40?

Financial goals by age 40 vary. One rule of thumb is to save 15% of your income each year, but this figure is subjective and depends on many factors, including your existing assets.

The Takeaway

It’s never too late to take control of your finances. In your 40s, you are likely entering your prime earning years, so it’s a good moment to focus on paying down debt, preparing for the next chapter of your children’s lives, and saving and investing to get ready for retirement. With some wise money moves, you’ll be set to make the most of this decade and beyond.

One path to help pump up your cash: Choosing a bank that could help your money grow faster, like SoFi. Open an online bank account with direct deposit, and you’ll earn a competitive APY and pay zero fees. Plus, we make checking your balance and completing transfers super quick and easy.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What financial goals should a 40-year-old have?

Ideally, a 40-year-old would be building a nest egg for retirement, paying down high-interest debt, and finding ways to sensibly pay for children’s college fees and meet other financial obligations. How much anyone needs to achieve these goals depends on many factors, such as lifestyle, income, and financial obligations.

How much should a 40-year-old have saved?

How much a 40-year-old should have saved depends on their current and future lifestyle and needs. A rule of thumb is to save 15% of your income each year towards retirement, but it will be different for everyone.

How can I build my wealth in my 40s?

You can build wealth in your 40s by paying down high-interest debt, choosing the right savings and investment vehicles, and planning for retirement.

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Photo credit: iStock/shapecharge

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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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What does it mean to be prequalified or preapproved for a mortgage? One lets a future homebuyer dream, and the other adds reality to the dream.

Here’s a look at how these two steps vary, how each can play a part in a home-buying strategy, and how one in particular can increase the chances of having a purchase offer accepted.

What Does Prequalified Mean?

Getting prequalified by phone or online usually takes just minutes.

You provide a few financial details to mortgage lenders. The lenders use this unverified information, usually along with a soft credit inquiry, which does not affect your credit scores, to let you know how much you may be able to borrow and at what interest rate.

Getting prequalified can give homebuyers a general idea of loan programs, the amount they may be eligible for, and what monthly payments might look like, the way a home affordability calculator provides an estimate based on a few factors.

You might want to get prequalified with several lenders to compare monthly payments and interest rates, which vary by mortgage term. But because the information provided has not been verified, there’s no guarantee that the mortgage or the amount will be approved.

What Does It Mean to Be Preapproved?

Everyone talks about what direction the housing market is taking, but the reality is that millions of Americans buy homes in any given year. They brush up on types of mortgage loans, and many face the probe known as mortgage preapproval.

Preapproval requires an investigation of your income sources, debts, employment history, assets, and credit history.

Verification of this information, along with a hard credit pull from all three credit bureaus, which may cause a small, temporary reduction in your credit scores, allows the lender to conditionally preapprove a mortgage before you shop for homes.

A preapproval letter from a lender stating that you qualify for a loan of a specific amount can be useful or essential in a competitive real estate market.

When sellers are getting multiple offers, some will disregard a purchase offer if it isn’t accompanied by a preapproval letter.

When seeking preapproval, besides filling out an application, you will likely be asked to submit the following to a lender for verification:

•   Social Security number and card

•   Photo ID

•   Recent pay stubs

•   Tax returns, including W-2 statements, for the past two years

•   Two to three months’ worth of documentation for checking and savings accounts

•   Recent investment account statements

•   List of fixed debts

•   Residential addresses from the past two years

•   Down payment amount and a gift letter, if applicable

The lender may require backup documentation for certain types of income. Freelancers may be asked to provide 1099 forms, a profit and loss statement, a client list, or work contracts. Rental property owners may be asked to show lease agreements.

You should be ready to explain any negative information that might show up in a credit check. To avoid surprises, you might want to order free credit reports from www.annualcreditreport.com. A credit report shows all balances, payments, and derogatory information but does not give credit scores.

Knowing your scores is also helpful. There are a few ways to check your credit scores without paying.

Those who have filed for bankruptcy may have to show documentation that it has been discharged.

Calculate Your Potential Mortgage

Use the following mortgage calculator to get an idea of what your monthly mortgage payment would look like.

Do Preapproval and Prequalification Affect Credit Scores?

Once you decide on a mortgage lender or lenders, you can begin the preapproval process.

Only preapproval requires a hard credit inquiry, but the good news for mortgage shoppers is that multiple hard pulls are typically counted as a single inquiry as long as they’re made within the same 14 to 45 days.

Newer versions of FICO® allow a 45-day window for rate shoppers to enjoy the single-inquiry advantage; older versions of FICO and VantageScore 3.0 narrow the time to 14 days.

You might want to ask each lender you apply with which credit scoring model they use.

Do I Have to Spend How Much I’m Preapproved for?

No! The preapproval amount is your maximum house-hunting budget. Staying well under that number can’t hurt and might free up money for more than mortgage payments.

Like what? Like a college fund, retirement, and vacations.

And like — groan — emergency home repairs.

Recommended: Guide to First-Time Home Buying

Are Prequalification and Preapproval the Same Thing?

By now you know that they are not one and the same. Here’s a visual on what’s needed for each:

Prequalification	Preapproval
Info about income	Recent pay stubs
Basic bank account information	Bank account numbers and/or recent bank statements
Down payment amount	Down payment amount and desired mortgage amount
No tax information needed	Tax returns and W-2s for past two years

Do I Need a Prequalification Letter to Buy a House?

No. Nor do you have to have a preapproval letter when making an offer on a house.

But getting prequalified can allow you to quickly get a ballpark figure on a mortgage amount and an interest rate you qualify for, and preapproval has at least three selling points:

1.    Preapproval lets you know the specific amount you are qualified to borrow from a particular lender.

2.    Going through preapproval before house hunting could take some stress out of the loan process by easing the mortgage underwriting step. Underwriting, the final say on mortgage approval or disapproval, comes after you’ve been preapproved, found a house you love and agreed on a price, and applied for the mortgage.

3.    Being preapproved for a loan helps to show sellers that you’re a vetted buyer.

The Takeaway

Prequalified vs. preapproved: If you’re serious about buying a house, do you know the difference? Getting prequalified and then preapproved may increase the odds that your house hunt will lead to a set of jangling keys.

SoFi offers a range of fixed rate mortgage loans with competitive rates and low down payment options.

Looking at investment properties? SoFi has loans for those, too.

It’s a snap to get prequalified and view your rate.

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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

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On the Ethereum platform, “gas” is a unit describing the amount of computational power needed to execute specific operations on the network. Because every Ethereum transaction consumes computational resources, transactions come with a cost. Gas is the fee needed to conduct an Ethereum transaction.

So in essence, an eth gas fee is a transaction fee on the Ethereum platform. Gas is denominated in units called gwei.

What Are Ethereum Gas Fees?

To prevent users from spamming the network with endless transactions, every cryptocurrency requires a small fee to send coins along its blockchain. These fees are typically paid to miners who validate transactions, but the fees also can give users the incentive to mine crypto.

Sending ETH from one Ethereum wallet to another also requires fees. Moreover, the Ethereum network charges fees to run applications on using its blockchain technology, giving an ETH transaction fee an added type of utility. Because ETH fees provide the energy, or power, to run applications on Ethereum, these fees are also called “gas.”

Ethereum fees can only be paid in ether (ETH), or ERC-20 tokens, the native currency of Ethereum. ETH gas prices are denominated in a unit known as “gwei.” And one gwei equals 0.000000001 ETH.

💡 Recommended: How to Buy Ethereum (ETH)

How Ethereum Gas Works

Ethereum underwent an upgrade in August 2021 known as the London Upgrade, which altered the way that ETH gas fees are calculated.

Pre London Upgrade

Before the London Upgrade, ETH gas worked like this:

•   Assume Alice wants to pay Bob 1 ETH. The gas limit is 21,000 units, while the gas price is 200 gwei.

•   The total fee is calculated as: (gas units (limit) x gas price per unit). In this example, that would equal: 21,000 x 200 = 4,200,000 gwei, or 0.0042 ETH.

•   When Alice sends the ETH, 1.0042 ETH comes from her Ethereum wallet. Bob receives 1.0000 ETH. An Ethereum miner receives 0.0042 ETH.

Post London Upgrade

The London Upgrade was introduced in an effort to make Ethereum’s fees more predictable for users. It also introduced a burn mechanism into Ethereum, to offset issuance of new ETH (there is no limit to how much ETH can be minted).

As of this upgrade, each block has a base fee, which is calculated by the network based on current demand for block space. This base fee gets burned (destroyed), so users are now expected to include a tip or priority fee with each ETH transaction — the greater the tip, the hope is, the more the transaction will gain priority.

This tip provides compensation to miners; many expect that most crypto wallets will integrate a feature that sets the tip fee automatically.

After the London Upgrade, gas works like this:

•   Assume Alice wants to send Bob 1 ETH. The gas limit is 21,000 units, the base fee is 100 gwei, and Alice includes a tip of 10 gwei.

•   The new formula is: gas units (limit) x (base fee + tip). This can be calculated as 21,000 x (100 + 10) = 2,310,000 gwei, or 0.00231 ETH.

•   When Alice sends the ETH, 1.00231 ETH will be subtracted from her wallet. Bob will receive 1.0000 ETH. A miner will receive the tip of 0.00021 ETH. And 0.0021 ETH will be burned.

Alice also has the ability to set a maximum fee for the transaction. The difference between the max fee and actual fee will be refunded. This allows users to set a maximum amount to pay for transactions without having to worry about overpaying.

This makes things more predictable, as under the old transaction fee model, fees could wind up being higher than anticipated during times of extreme network congestion.

💡 Recommended: Is Crypto Mining Still Profitable in 2022?

Average ETH Gas Prices

According to ycharts.com, the average Ethereum Gas price is about 32.79 gwei, as of August 10, 2022. Over the course of the past 12 months, this price has gone as high as 474.57 gwei and as low as 12.28 gwei.

What this means in dollars: Between Jan. 2021 and May 2022, Ethereum’s average daily gas fee was about $40, reaching the highest daily average in May 2022: about $196.63.

As of August 10, 2022, Ethereum average gas fees are about $1.60.

How Will Gas Fees Change in Ethereum 2.0?

The Ethereum project has been working on a massive transition from a proof-of-work (PoW) consensus mechanism, which involves mining, to the more energy-efficient proof-of-stake (PoS) verification model.

By some reports, Ethereum developers have embarked on a test of the PoS blockchain, but the final transition to the new blockchain may not occur until the fall of 2022.

The update has been called Ethereum 2.0, Serenity, or Eth2, but now has been dubbed “the merge.” The plan is to eliminate the PoW mining protocol in favor of a more climate friendly PoS, which promises to reduce certain strains on the network and increase capacity, but it’s unlikely that the cost of gas will go down.

How Do Ethereum Gas Fees Relate to Transactions?

The way Ethereum gas fees relate to transactions is pretty simple: Each transaction requires a fee to be paid to miners as an incentive for processing the transaction. The general concept is not unlike that of other cryptocurrencies.

The only difference with ETH gas is that because the Ethereum Virtual Machine (EVM) is also a state machine, additional fees are required for more complex transactions, such as those involving smart contracts.

What Is the Ethereum Gas Limit?

The standard limit on an Ethereum gas fee is 21,000 units. The ether gas limit refers to the maximum amount of gas a user can consume to conduct a transaction.

Transactions involving smart contracts are more complicated, and require more computational power to execute. So these transactions need a higher gas limit than simpler transactions like sending payments.

Setting a gas limit too high is fine — the EVM will refund what doesn’t get used. But setting a gas limit too low could result in a user losing some ETH and having their transaction declined.

If a user were to place an Ether gas limit of 50,000 for an ETH transfer, for example, the EVM would consume 21,000 and refund the remaining 29,000. But if someone were to set a gas limit of 20,000, and the transaction were to require 21,000 units, the EVM could consume 20,000 gas units as it tries to fulfill the transaction, but the transaction won’t complete.

In this case, the user would hold on to the ETH they tried to send, but their 20,000 gas units would be lost because the EVM consumed it trying to complete the failed transaction.

What Is the Benefit of a Gas Fee?

The benefit of an ETH gas fee post London Upgrade is that users can better anticipate what their total transaction cost will be. They can also send higher tips to miners to prioritize their transactions. This can be useful when someone wants to send money right away and doesn’t want to wait too long for the transaction to confirm.

Another benefit of an adequate ETH gas fee is that it ensures a transaction will be accepted by the network. A too-low fee can result in a transaction being rejected, in which case a user could lose the gas they spent and not have their transaction go through.

Reducing ETH Gas Costs

Developers hoped that the London Upgrade might reduce gas costs, but so far the data doesn’t support this.

Individual users have little to no control over their own gas costs, as the fee is determined by the current state of the network. Because block space is limited, the more transactions that are taking place at any given time, the more competition there will be for transactions in each block. This results in higher fees as users compete to have their transactions be confirmed, bidding gas prices upward.

That said, there are some ways individuals can try to reduce gas fees.

•   Stick to weekend transactions: Typically, gas prices are higher during weekdays and lower on weekends.

•   Initiate transactions at off times: Those who follow gas prices carefully have noticed that the least busy time is between midnight and 4:00 a.m. Eastern Standard Time (EST).

The Takeaway

Depending on the purpose of the transaction, ETH gas can be used toward smart contract functionality or simply for sending ETH or ERC-20 tokens over the Ethereum network. Gas fees vary according to how much activity is on the network at any given time, and thanks to the London Upgrade, users can add more generous tips to help prioritize their transactions.

While the much-heralded upgrade to Ethereum’s new proof-of-stake blockchain is in the works, and promises greater efficiencies on some fronts, it’s not likely to reduce gas fees. That said, as of August 2022, the cost of gas is quite low: about $1.60.

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Photo credit: iStock/finchfocus

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

²Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount		Bonus Payout
Low	High
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

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