SoFi

If you’re in debt, you’re not alone. The average American has more than $100,000 in debt, according to Experian. But being debt-free is possible, and it’s a freedom like no other. If 2024 is the year you want to Get Your Money Right® by tackling your debt, read on.

Not all debt is created equal. A home loan, for example, has different implications for your financial health than the same amount in credit card debt.

That’s because when you have a mortgage, you also own part of your home. Sure, maybe the bank owns the majority, but your monthly payments decrease your debt and increase your equity in your home.

Meanwhile, a mortgage-sized amount of credit card debt is a different pair of shoes. That’s because credit card debt tends to be higher in interest. Plus, it doesn’t help you build any equity. It just weighs on you.

Start by writing down all your debts, needs and income streams to get going on a budget that can help you knock out your debts one by one.

Finding the help you need to tackle your debts

There are many strategies for tackling your debts. But you’d be best served to find one you can stick with.

The snowball method works by listing out all your debts and starting with the smallest one. It will help you feel like you’re making headway, and might give you the momentum you need to keep going.

The avalanche method is targeting your debts with the highest interest rate first, minimizing how much you pay in interest over the long run.

If you’re in credit card debt, paying more than the monthly minimum payment can also help you chip away at the total amount owed.

But sometimes debt can feel overwhelming, and maybe none of the methods above is feasible for you.

Depending on your situation, you might consider a debt consolidation loan, which allows you to transfer high-interest credit card balances to a personal loan to reduce your monthly payment. Learn more about the debt consolidation loans SoFi offers.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. Additional terms and conditions may apply. Lowest rates reserved for the most creditworthy borrowers. The average of SoFi Personal Loans funded in 2022 was around $30K. Information current as of 12/27/23. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details.

If talking about money makes you uncomfortable, you might not like the next topic: estate planning.

Estate planning is about making sure your assets go where you want them to go in the event of your death. This may involve documents like a will, health care proxy, or power of attorney.

Important Conversations

Nobody likes talking about death. But having a conversation about estate planning is important to make sure everyone is on the same page, and the right paperwork is in place well ahead of time. It’s not just about leaving money behind. You can make a lot of decisions in your end-of-life planning that may help take care of your loved ones, and can also involve minimizing taxes on the assets left behind.

Writing a Will

There are four different types of wills that can help ensure your plans are carried out after death.

•   A simple will, which lets you have control over what happens to your assets

•   A joint will, which is created by two people

•   A testamentary trust will, which involves creating a trust

•   A living will, which specifies your wishes if you were medically incapacitated

If you die without a will you risk having your property go to people you didn’t intend it to go. There are online templates to create a simple will or you can work with an attorney to put your end-of-life wishes in writing, and take care of your loved ones.

Learn more about estate planning with SoFi here.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

If you plan to swipe your way through the gifting season, we have some tips for making sure you don’t start the new year with a massive debt hangover.

Using a credit card is convenient and can come with added perks like cash back or other rewards. But when not used carefully, the lure of buying now and paying later can lead to massive debt.

Swipe (your card) right

Be punctual with payment. Strive to pay your credit card bills on time. Credit cards often have late-payment fees and high interest rates, which means that you will pay more over time. Automating payments and setting up reminders can help streamline the process.

Pay more than the minimum. Creditors usually don’t require you to pay your credit card bill in full each month, but only making minimum payments will keep you in debt longer and increase how much you pay in interest.

Carefully check your statements. It can be hard to see all your spending listed out. But it’s important to review each credit card statement carefully to make sure there are no fraudulent charges. Setting up email or text alerts on your credit card can also help catch fake charges.

This smart spending guide is full of tips and tricks to help you, no matter what your holiday shopping style is.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Instead of giving the typical toys, video games, and clothes this holiday season, have you considered giving shares of the companies that make the products?

While toys might break, and batteries can run out, stocks may help the gift receiver take a first step in getting their money right. Plus, you don’t have to brave the crowds during holiday shopping!

For 2023, the annual gift tax exclusion is $17,000 per person ($34,000 per married couple).

The Gift That Keeps on Giving

You can simply buy an actual stock certificate to gift it. Some financial institutions allow you to create a custodial account to transfer or buy stocks into. SoFi does not offer gifting of stock at this time.

Learn more about how to budget better this holiday season with SoFi’s Holiday Spending Guide.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

It’s the time of year for pumpkin-spiced everything, family and friend gatherings, shopping, and… budgeting.

You don’t want to start 2024 with a massive spending hangover. Get ahead of it this year and create a budget.

Review last year’s spending: If 2022 holiday shopping left you in the red, don’t repeat past mistakes and review them. How much did you spend? Are there any areas you can cut back on this year?

Create a budget: Ideally you already have a general budget, but if you don’t, it’s a great time to create one.

You can create your budget with pen and paper, a spreadsheet or use an app. (SoFi has one here.)

The hard part: sticking to it

You’re making a list… checking it twice Don’t let last-minute purchases blow your budget. Take the time to make a list of all your expected expenses this season, including: gifts, decorations, food for parties and travel. Then assign how much you can spend on each category, including how much you can spend per gift.

Track your spending: Track purchases in your budget. If you overspend on one thing, you can make up the difference by cutting back somewhere else.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.