SoFi® is the brainchild of a few Stanford University business students who wanted to tackle the student loan debt issue in the United States by making it easier for borrowers to refinance student loans.

The founders later expanded SoFi’s focus to include several financial products and services, including online banking through SoFi Money. SoFi Money is now branded as SoFi® Checking and Savings (member FDIC) thanks to the company’s approval for a bank charter in early 2022. Today, SoFi offers many banking services with great benefits for consumers with or without student debt.

What SoFi Checking & Savings Is and How It Works

When you sign up for SoFi Checking and Savings (member FDIC), you open both a checking and a savings account and both are FDIC-insured with access to the same benefits from SoFi. SoFi does not offer standalone checking or savings accounts.

More About SoFi Checking

SoFi has a lot of attractive features as a checking account. It might be most appealing to SoFi customers who use its other products, like automated investing and student loan refinancing.

Unlike most checking accounts, SoFi accounts come with some transaction limits that could make it tough to use as your primary spending account:

• Withdrawal limits: $1,000 per day total
• Point-of-sale (cash register) transactions: 12 per day.
• Daily debit card use limit: $6,000 per day.

Still, your account gives you access to a debit card and gives you the option to order checks. Individual and joint accounts are available, which is rare among online banking accounts. And, if you set up direct deposit or keep $5,000 or more in qualifying deposits during the 31-day evaluation period, you could earn up to 3.30% APY on savings and 0.50% on checking.

SoFi offers overdraft protection up to $50 as long as you receive at least $1,000 in direct deposits.

To open a SoFi Checking and Savings account:

1. Become a SoFi member by creating an account online or through the app with your email address.
2. Open a Checking and Savings account through your dashboard. You’ll need to enter your mailing address, phone number, birth date and Social Security number.
3. You can open an account with no minimum opening deposit and pay no account maintenance fees.
4. Set up direct deposit or a recurring transfer of at least $1,000 to qualify for overdraft protection.

More About SoFi Savings

When you sign up for SoFi Checking and Savings (member FDIC) for your checking account, you’ll also get a savings account. Here’s an overview of its savings features.

Both of your accounts with SoFi Checking and Savings get the benefits, so you don’t have to worry about which bucket your money is in.

You’ll earn up to 3.30% annual percentage yield (APY) on a total balance across accounts as long as you sign up for direct deposit (with no minimum deposit requirement) or keep $5,000 or more in qualifying deposits during the 31-day evaluation period. Plus, for a limited time, earn an extra 0.70% Boost on Savings APY for 6 months on new accounts with Direct Deposit. Terms apply. If you don’t use direct deposit, you’ll earn up to 1.00% APY on all balances.

The downside to having your checking and savings seamlessly connected is that your savings are easily accessible, which can make it easy to dip into that account instead of letting it sit and grow.

The upside: The account structure makes your money more accessible through SoFi than in a traditional savings account, so you can build your savings knowing you can get to the money anytime if you need it.

Cash in SoFi Checking and Savings is FDIC insured up to $250,000.

SoFi Rates, Fees & How to Maximize the APY

SoFi boasts no fees across their services and they mean it.

• No third-party ATM fees
• No monthly fees, like an account maintenance fees or minimum balance fees
• No overdraft fees up to $50
• No foreign transaction fee
• No fee for a replacement card
• No bill pay fees
• SoFi covers foreign conversion fees

Fee structures are subject to change, but you can take comfort in knowing the lack of fees at SoFi is one of the most attractive features of online-only banking. A fee you may run into is one that some of its partners may charge: $4.95 per deposit for cash deposits. 

Not only will you earn up to 3.30% APY (with eligible direct deposit or $5,000 or more in qualifying deposits during the 31-day evaluation period) on money in savings and 0.50% on checking funds, there’s the possibility of up to a $400 bonus. The bonus is tiered; either $50 (with at least $1,000 total eligible direct deposits) or $400 (with at least $5,000 total eligible direct deposits). And for a limited time, earn an extra .70% Boost on Savings APY for 6 months on new accounts with Direct Deposit. Terms apply.

Key Features and Other SoFi Products

You also can get paid up to two days early automatically when you set up direct deposit6, but another huge benefit to signing up for a SoFi Checking and Savings (member FDIC) account online is becoming a member of the greater SoFi ecosystem.

SoFi members are anyone who uses a SoFi product, like Checking and Savings. As members, consumers get exclusive benefits like member-only financial planning events and member rate discounts on SoFi loans.

• Personal Loans: Apply for a personal loan for things like student loan refinancing, credit card consolidation or home improvement.
• Mortgages: Take out a home loan or refinance an existing mortgage through SoFi. You’ll save $500 on mortgage processing fees for being a SoFi member. SoFi also facilitates home equity lines of credit, allowing members to access up to 90% or $500,000 of their home’s equity.
• Investing: SoFi Active Invest* is a brokerage account that lets you invest in stocks and ETFs right through the app. You can set up automated investing and let SoFi experts choose your portfolio for you or you can choose what to invest in. SoFi also offers Roth, traditional, and SEP IRAs to help you save for retirement. You can fund your SoFi Invest¹ account using a SoFi Checking and Savings account or an external checking or savings account.
• Credit Card: See if you qualify for one of its several credit card options. 
• Insurance: Through SoFi Protect, you can be matched with affordable life, auto, homeowners and renters insurance. In most cases, you can apply and sign up online without speaking to an agent or facing a medical exam.
  

Pros of Using SoFi 

We’ve rounded up pros about SoFi Checking and Savings to help you decide if this personal finance company is right for you.

• No minimum opening deposit
• No maintenance fees
• No overdraft fees
• ATM access in-network
• Slick app with a lot of features
• High-yield account with a competitive interest rate
• Solid ATM network (55,000+ fee-free ATMs)
  

Potential Drawbacks to Consider

Here are several cons to using SoFi Checking and Savings:

• Restricting transaction limitations
• No business banking options
• No brick-and-mortar banking options
• There are no standalone checking or savings accounts

Is SoFi Safe and Trustworthy?

SoFi not only holds a national bank charter and boasts millions of users, SoFi Checking and Savings deposits are FDIC insured up to $250,000.

In fact, as an online-only institution, SoFi banking happens primarily through the SoFi app for smartphones and tablets. Customers give the app 4.8 out of five stars in the Apple App Store and 4.3 out of five stars on Google Play.

The SoFi app lets you sign up for and access all SoFi products including Checking and Savings and budgeting and money tracking tools.

Through the app, you can:

• See your checking and savings account balances and transaction history.
• Deposit money with mobile check deposit.
• Transfer funds to and from a linked financial institution or between accounts.
• Freeze and unfreeze your debit card.
• Chat with customer support.
• Monitor your TransUnion VantageScore credit score.
• Connect other financial accounts to track your spending and savings in one place.
• Access SoFi’s other financial products and services.
  

Final Verdict: Best For Which Users?

SoFi Checking and Savings could be a perfect replacement for your primary checking or money market accounts, plus a good fit for short-term savings and managing money you want to invest through SoFi.

It could be a fit for you if:

• You need access to SoFi’s other money products including loans and investing.
• You have short-term savings goals such as vacation savings, home down payment, buying a car or holiday shopping
• You receive a regular paycheck via direct deposit
• You prefer to do your banking online or through a mobile app

It might not be a fit for you if:

• You prefer in-person service from local bank tellers or loan agents
• You’re frequently or primarily paid in cash
• You have no need for additional products and services like mortgages, debt consolidation, student loan refinancing or financial planning
• You have a high volume of daily transactions, like if you travel or shop a lot
• You need small business banking
• Your savings goals are mostly long term, like retirement or college savings

Ultimately, it’s ideal for users wanting high APY, no fees and digital convenience. It’s less ideal for those needing cash handling or in-person support.

Sign up here. 

FAQs About SoFi Checking and Savings (member FDIC)

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*Terms and conditions apply. Matches on contributions are made up to the annual limits.

Investment Products: Are not FDIC-insured, are not bank guaranteed and may lose value.

SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

1. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
2. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).
3. There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
4. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options
5. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information
6. 6. SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov

If you want to whip your finances into shape, here’s a good goal: improving your credit score.

A lot of goal-setting efforts fail because they’re so extreme. Think of all the bonkers weight-loss and money-saving goals that never go anywhere.

This is different. No extreme measures are required. But there aren’t any shortcuts. Building good credit is a goal you need to commit to long term.

How to Build Good Credit in 10 Steps

Ready to finally prove your creditworthiness? Here’s how to build good credit in 10 steps.

1. Stay on Top of Your Credit Reports

About 1 in 5 credit reports contain inaccurate information. Make sure you access your reports for free at AnnualCreditReport.com, rather than one of the many websites that make you put down your credit card number to sign up for a trial. File a dispute with the bureaus if you find anything you think is inaccurate or any accounts you don’t recognize.

Your credit reports won’t show you your credit score, but you can use a free credit-monitoring service to check your score. (No, checking your own credit doesn’t hurt your score.) Many banks and credit card companies also give you your credit scores for free.

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2. Pay Your Bills. On Time. Every Single Month

Yeah, you knew we were going to say this: Paying your bills on time is the No. 1 thing you can do to build good credit. Your payment history determines 35% of your score, more than any other credit factor.

Set whatever bills you can to autopay for at least the minimums to avoid missing payments. You can always pay extra if you can afford it.

A strong payment history takes time to build. If you’ve made late payments, they’ll stay on your credit reports for seven years. The good news is they do the most damage to your score in the first two years. After that, the impact starts to fade.

3. Establish Credit, Even if You’ve Made Mistakes

You typically need a credit card or loan to build a credit history. (Sorry, but all those on-time rent and utility payments are rarely reported to the credit bureaus, so they won’t help your score.)

But if you have bad credit or you’re a credit newbie, getting approved for a credit card or loan is tough. Look for cards that are specifically marketed to help people start or rebuild credit. Store credit cards, which only let you make purchases at a specific retailer, can also be a good option.

4. Open a Secured Card if You Don’t Qualify for a Regular Card

Opening a secured credit card is one of our favorite ways to build a positive history when you can’t get approved for a regular credit card or loan. You put down a refundable deposit, and that becomes your line of credit.

After about a year of making your payments on time, you’ll typically qualify for an unsecured line of credit. Just make sure the card issuer you choose reports your payments to the credit bureaus. Look for a card with an annual fee of no more than $35. Some secured card options we like (and no, we’re not getting paid to say this):

• Discover It Secured
• OpenSky Secured Visa Card
• Platinum Secured from Capital One

5. Ask for a Limit Increase. Pretend You Never Got It

Increasing your credit limits helps your score because it decreases your credit utilization ratio. That’s credit score speak for the percentage of credit you’re using. The standard recommendation is to keep this number below 30%, but really, the closer to zero the better.

If you have open credit, ask your current creditors for an increase, rather than applying for new credit. That way, you’ll avoid lowering your length of credit, which could ding your score.

The downside of a higher credit limit: You’ll have more money to spend that isn’t really yours. To get the biggest credit score boost from a limit increase and avoid paying more in interest, make sure you don’t add to your balance.

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6. Prioritize Credit Card Debt Over Loans

Tackling credit card debt helps your credit score a lot more than paying down other debts, like a student loan or mortgage. The reason? Your credit utilization ratio is determined exclusively by your lines of credit.

Bonus: Paying off credit card debt first will typically save you money, because credit cards tend to have higher interest rates than other types of debt.

7. Keep Your Old Accounts Active

Provided you aren’t paying ridiculous fees, keep your credit card accounts open once you’ve paid off the balance. Credit scoring methods reward you for having a long credit history.

Make a purchase at least once every three months on the account, as credit card companies often close inactive accounts. Then pay it off in full.

8. Apply for New Credit Selectively

When you apply for credit, it results in a hard inquiry, which usually drops your score by a few points. So avoid applying frequently for new credit cards, as this can signal financial distress.

But if you’re in the market for a mortgage or loan, don’t worry about multiple inquiries. As long as you limit your shopping to a 45-day window, credit bureaus will treat it as a single inquiry, so the impact on your score will be minimal.

9. Still Overwhelmed? A Debt Consolidation Loan Could Help

If you’re struggling with credit card debt, consolidating your credit card debt with a debt consolidation loan could be a good option. In a nutshell, you take out a loan to wipe out your credit card balances.

You’ll get the simplicity of a single payment, plus you’ll typically pay less interest since loan interest rates tend to be lower. (If you can’t get a loan that lowers your interest rate, this probably isn’t a good option.)

By using a loan to pay off your credit cards, you’ll also free up credit and lower your credit utilization ratio.

Many debt consolidation loans require a credit score of about 620. If your score falls below this threshold, work on improving your score for a few months before you apply for one.

10. Keep Your Credit Score in Perspective

All the credit-monitoring tools out there make it easy to obsess about your credit score. While it’s important to build good credit, look at the bigger picture. A few final thoughts:

• Your credit score isn’t a report card on the state of your finances. It simply measures how risky of a borrower you are. Having an emergency fund, saving for retirement and earning a decent living are all important to your finances — but these are all things that don’t affect your credit score.
• Lenders look at more than your credit score. Having a low debt-to-income ratio, decent down payment and steady paycheck all increase your odds of approval when you’re making a big purchase, even if your credit score is lackluster.
• Don’t focus on your score if you can’t pay for necessities. If you’re struggling and you have to choose between paying your credit card vs. paying your rent, keeping food on the table or getting medical care, paying your credit card is always the lower priority. Of course, talk to your creditors if you can’t afford to pay them, as they may have options.

Focus on your overall financial picture, and you’ll probably see your credit score improve, too. Remember, though, that while credit scores matter, you matter more.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected] or chat with her in The Penny Hoarder Community.

Here’s a string of words from the past year that might make you feel uneasy: Inflation, crypto crashes, USD volatility, stocks in the red and housing slumps. OK, so it hasn’t been a great year for our precious nest eggs. But, there’s never been an economic downturn we haven’t recovered from, eventually.

But even if you’re not worried about a little economic turbulence, that doesn’t mean you shouldn’t buckle up. In this case, your seatbelt is a carefully diversified portfolio of assets. Do it right, and you could be funding many generations to come.

There are some investments that can even protect you in times of economic uncertainty. And one asset that’s remained historically steady — with its value even increasing during times of instability — is gold.

How Gold Can Be a Hedge Against Uncertainty

Paper money loses value as more is printed. But gold is a finite resource more rare than diamonds, meaning its value will only ever increase with demand. In fact, the price of gold is up more than 300% in the past 15 years, and it’s outperformed the stock market for the last 25.

The good news is, you don’t need to reenact your own epic trek through the Klondike to get your hands on some of this rare metal. It’s all done online, now through companies like Lear Capital.

What to Expect When Investing in Precious Metals

Since you’re usually working with gold IRAs, it’s ideal to be over 59-years-old, when you can move retirement accounts without penalty.

And you definitely want to work with a trustworthy company, like Lear Capital. It’s been in the precious metals business for more than 25 years, which is twice as long as most other gold firms. It has completed $3 billion in precious metals transactions and has over 93,000 satisfied customers. Plus, you’ll get a 24-hour risk-free guarantee to review your purchase before committing to it.

Not only that, but unlike most gold firms, it will walk you through the entire investing process, from start to finish. After you sign up for your free gold investment kit, you’ll be connected with an expert from Lear Capital, who will go over everything you need to know while addressing any concerns you may have. You'll need to be able to invest at least $15,000.

And since gold is ideally a long-term investment, Lear will stick with you after your initial investment. Many other companies leave you to your own devices after they get your investment.

To learn more, head over to Lear Capital’s site to sign up for your free gold investment kit.

Turning to a freelancing website is an excellent option when you need extra money. Whether you are looking to supplement your primary source of income for more stability or so you can treat yourself to a bit of luxury, we can help you out.

You wouldn't be the only person hoping on the freelancing bandwagon, as nearly 5% of U.S. workers have two or more jobs. Freelancing is an excellent way to bridge the gap between your primary source of income and the land of financial security.

Working as a freelance writer is one excellent way to earn extra money, but there are plenty of options for other professions. Here are the best freelance websites to find your next side gig.

The 9 Best Freelance Websites

No matter your skillset, there’s likely someone who’s willing to pay for your services. Usually, the hardest part is making sure the freelance work is legit.

There are plenty of freelance websites out there, but plenty of those job sites are scams.

So we did the hard part for you and vetted some of the top freelance websites. They’re not freelance job aggregators that leave you to fend for yourself with clients. All the work and pay is funneled through, and moderated by, the freelancing websites themselves.

The best part? They don’t charge you money to sign up.

Each freelance website also has user reviews through Glassdoor, a jobs search engine that aggregates anonymous reviews and salaries from employees and rates companies on a scale of five stars. Each site below lists the Glassdoor rating at the bottom and links to what employees have to say about the company.

Here are nine of the best sites that can help you find freelance jobs, whether you’re looking for a one-time project or a longtime client.

(Note: The sites are listed alphabetically, not by order of importance.)

CopyPress

For budding copywriters, editors, designers and developers, CopyPress is a solid content mill to get your bearings.

The media company has in-house agencies in Scottsdale, Arizona, and Tampa, Florida. But it’s mostly used nationwide by outside contractors who collaborate on an internal content management system (CMS).

In CopyPress’ CMS, users don’t have to bid on freelance jobs. They can accept or decline tailored projects as they flow in.

CopyPress does make freelance applicants pass two tests before they get jobs. The first test is a multiple choice test that gets graded instantly. The second is a practical assessment (such as a sample article for writers) that can take up to three weeks for grading.

Don’t worry too much though―CopyPress’s training materials are more than enough to get you started on the right freelancing foot.

To get started as a CopyPress contractor, register here.

Who Can Freelance: Copywriters, editors, software developers or graphic designers.
Glassdoor Rating: 2.9 (out of 5) stars.

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Fiverr

You can find (and list) just about any service on Fiverr, a freelance marketplace through which giant brands and individuals alike can search for services they need on an internal search engine.

As a freelancer, you can list your services and prices (don’t worry, you can charge more than $5) and over time get ratings that help you rank higher in the search results.

It’s completely free to sign up as a “seller.” So is creating a listing. The service fees come in when sales are made. For each sale, Fiverr takes 20% of the purchase amount, according to the company’s terms of service. The good news is that Fiverr has a deal with PayPal to waive withdrawal fees for any project completed on the site.

Who Can Freelance: Almost anyone, including pianists, translators and mathematicians.
Glassdoor Rating: 4.5 (out of 5) stars.

Freelancer

Want to deliver packages? Design websites? Write articles? Post it on Freelancer. It’s another solid freelance site for projects big and small.

On Freelancer, both employers and freelancers can create listings and specify rates per project or per hour. If you’re interested in a project an employer posted, you can bid on it. That alerts the employer that you’re interested.

The standard free membership includes eight free bids per month. You can add extra bids if you cough up some dough.

Freelancer’s fee system is somewhat complicated but lower than similar freelancer websites overall.

“The fee for fixed-price projects is 10% or $5.00 USD, whichever is greater, and 10% for hourly projects,” the website states. For services, Freelancer takes 20% from the payment amount. There are a ton of ways to promote your services, get fee exemptions and more, according to the fee breakdown.

To get started, make a free account and upload your portfolio.

Who Can Freelance: Almost anyone — ghostwriters and game developers alike.
Glassdoor Rating: 4.2 (out of 5) stars.

Gigster

This one is for the techies.

Gigster is an on-demand software development website. Since its founding in 2013, the site has garnered the attention of well-known venture capitalists, including Michael Bloomberg and Michael Jordan. The website has received more than $32 million in funding, according to Crunchbase.

While Gigster does have a core software engineering team, it offers freelance work for designers, developers and product managers through its talent network. Projects range from wireframes and mockups to full designs. Compensation is based on the complexity of the project.

Gigster uses traditional job postings, unlike other popular freelance websites. So instead of making freelancers bid on job opportunities, Gigster has them submit resumes. That may sound like more work, but keep in mind that Gigster tends to deal more in long-term contracts than one-off odd jobs.

The talent network accepts applications from a wide range of candidates, from self taught to Ph.D.s. To get started, you can apply to the appropriate role here.

Who Can Freelance: Designers, developers and product managers.
Glassdoor Rating: 3.0 (out of 5) stars.

Guru

Guru runs on a bidding system. An employer needs a document translated into French? Bid on it. Someone needs a logo for their cooking blog? Bid on it. An entrepreneur needs a ghostwriter for her new thought leadership book? You get the idea... bid on it.

Alternatively, potential clients can reach out to you directly if they search your listed area of expertise.

Profiles are free to create. They include a basic membership, which comes with 10 bids per month.

There are varying levels of paid memberships that give you extra bids each month, or you can purchase more bids directly if you don’t want to pay a recurring membership fee. It’s $10 for every 20 bids, or you can get discounts for bulk — $50 for 125 bids and $100 for 250 bids.

Similar to other freelance marketplaces, Guru takes a percentage from the selling price of the service, and it varies based on what kind of membership you have.

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Interested? You can make a free profile here and select what membership works best for you.

Who Can Freelance: Almost anyone — customer service reps, legal experts, photographers and more.
Glassdoor Rating: 3.8 (out of 5) stars.

nDash

Looking for writing jobs? While you can offer writing services on almost all freelance websites, nDash is tailored specifically for freelance writers looking for gigs in digital marketing.

Unlike most content mills, you can set your price expectations for projects based on the platform: blogs, in-depth articles, website copy and more. Plus, nDash lets you pitch ideas to clients--meaning you can create your own freelance opportunities.

NDash is refreshing in that it encourages freelance writers to not undersell themselves. $30 blog post? Not here. The site has helpful career advice, like guides on how to set your prices if you’re new to freelance writing as well as several videos to help you create your portfolio.

NDash’s clients include some pretty heavy hitters, including LinkedIn and HubSpot. The icing on the cake is that the NDash freelance platform doesn’t take payment fees from your earnings.

Create a free writer profile here to get started.

Who Can Freelance: Copywriters, marketers and journalists.
Glassdoor Rating: 4.9 (out of 5) stars.

PeoplePerHour

Founded in 2007, PeoplePerHour is one of the oldest freelancing sites on the list. It’s based in the U.K. but available worldwide and to freelancers in most professional fields.

The company focuses on the quality of its freelancers. To get started at PeoplePerHour, you must apply initially to create your account. After you’re screened and approved for relevant topics or industries, you’ll have free rein to bid (or “quote”) on projects in your wheelhouse.

Basic accounts come with 15 free quotes per month. Once you burn through those, you can wait for them to renew or purchase more.

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Based on the payout from the project, fees vary at marginal rates:

• For the first $500 dollars with a new client, the fee is 20%.
• Income between $501 and $4,999 is charged 7.5%.
• Fees for payments of $5,000 or more are 3.5%.

The scale starts over with each new client, so it incentivizes recurring business.

Who Can Freelance: Experts in almost any field, from tax pros to tutors.
Glassdoor Rating: 3.7 (out of 5) stars.

TopTal

Toptal is for expert software developers and designers, financial experts, project managers and product managers.

Unlike most freelancing websites, Toptal has an intense screening process that can take upwards of three weeks. Before freelancers can see job listings, they have to complete a communication assessment (that requires English comprehension), an in depth skill review, a live screening and test projects.

This process helps Toptal find the most highly skilled professionals. In fact, it boasts that when all is said and done, only 3% of applicants pass. If you make it through, you’ll have access to Toptal’s clients, some of which are top tier — Airbnb, Artsy, Pfizer and Zendesk to name a few.

According to Toptal’s website and Frequently Asked Questions, the company doesn’t take service fees from its freelancers. Rather, it charges its clients for access to its freelance talent pool. Freelancers can be hired by clients per project, part time or full time.

To create a freelancer account and begin the vetting process, start here.

Who Can Freelance: Experienced developers, designers, finance experts, project managers and product managers.
Glassdoor Rating: 4.0 (out of 5) stars.

Upwork

Upwork, aka the baby of Elance and oDesk, claims to have more than 14 million users from 180 different countries, which would make it the largest freelancing platform in the world.

It’s a marketplace format, meaning gigs in just about every professional field are up for grabs. Businesses can reach out directly to you, or you can bid on a business’ job listing. With so many users, the competition is hot. Making a good profile and crafting the perfect pitch are crucial to landing a gig.

Under new Upwork fees that go into effect in Summer 2019, freelancers must pay between 15 cents and 90 cents to bid on a gig.

Once a project is completed, Upwork charges marginal fees depending on how much you’ve earned with that client.

• A 20% fee for the first $500 with a client.
• For $500.01 to $10,000, the fee drops to 10%.
• Anything over $10,000 is charged 5%.

Again, the idea is to encourage recurring work with the client. The more they pay you, the lower the fees.

Think Upwork is the site for you? Click here to make a profile.

Who Can Freelance: Almost anyone, whether you’re a creative or a coder.
Glassdoor Rating: 4.3 (out of 5) stars.

Adam Hardy is a former TPH staff writer. Senior writer Michael Archambault and freelancer Chloe Goodshore contributed to this post.

What difference can saving your pennies make? A lot, it turns out, if you’re doing the penny challenge.

This money-saving challenge helps you put aside $667.95 in a year — or $671.61 in a leap year. To participate in the challenge, follow these steps:

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Now, please note: You’re not simply saving one penny a day. If you did that, you’d wind up with only $3.65 in savings at the end of the year. Pretty pointless.

The key to growing your savings with this challenge is adding an additional penny to what you’re depositing each day, not to your total savings. So on day two, your total will be $0.03 because you’re adding $0.02 to the penny from the first day. On day three, you’ll have a total of $0.06 after making your daily savings deposit.

This chart shows how much you’d deposit each day — along with your savings balance — for the first week of the penny challenge.

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You’re starting out with super small amounts, but your money will grow over the course of 12 months. And because the daily saving amounts are nominal, you don’t have to stress about needing a bunch of money to build your savings.

Saving Money With the Penny Challenge

If you stick with this money-saving challenge for an entire year, you would deposit $3.65 on the last day of the challenge and you’d end up with a total of $667.95. (Trust us, we did the math.)

That’s $667.95 you could add to your emergency fund or use to pay down debt. It’s money you could put toward a future vacation or a shopping spree.

Plan out how you’d like to use your savings. Having an end goal that really matters to you will serve as great motivation to stick with this challenge all year long.

Tackling the Penny Challenge by the Month

While it’s easy to find enough spare change to get this challenge started, it gets progressively difficult as the days and weeks pass — especially if most of your financial transactions are cashless.

You can hack the challenge by putting your savings aside once a month rather than once a day. By grouping together all of your daily savings for the month and making one deposit, you won’t face the struggle of coming up with exact change each day.

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Pay yourself first by making your monthly savings deposit before you spend money on bills or other expenses. Or schedule automatic transfers from your checking to your savings account so you don’t even have to think about saving.

Let the money sit in your account without making any withdrawals and by the end of the year, you’ll have over $600 to spend as you please.

Nicole Dow is a former senior writer at The Penny Hoarder. Deputy editor Tiffany Wendeln Connors updated this post.

Each new year brings changes to Social Security. Even if you’re decades away from retirement, it’s important to keep tabs on what’s happening. After all, Social Security gets a chunk of each paycheck during your working years. And without Social Security, about 40% of Americans 65 and older would have incomes below the poverty level.

Read on to learn what’s in store for Social Security in 2023, whether you receive benefits or you’re still paying into the system.

5 Social Security Changes to Know About in 2023

What’s ahead for Social Security in 2023? Here are the five biggest changes you need to know about in the new year.

The 8.7% COLA is the biggest since 1981.

Probably the most talked-about change to Social Security benefits is the 8.7% cost of living adjustment (COLA). That’s the largest Social Security raise since 1981. Over the past decade, COLAs have averaged less than 2%. The higher-than-usual adjustment is the result of soaring inflation, as measured by the U.S. Department of Labor’s Consumer Price Index (CPI-W).

Recipients will see that extra money in their checks beginning in January. Here’s how the COLA will break down for the average recipient:

• The average retired worker will get an extra $146 a month.
• The average disabled worker will get an extra $119 a month.
• The maximum Supplemental Security Income (SSI) benefit for individuals will increase by $73 a month.

Medicare premiums are also going up.

The 8.7% raise for Social Security recipients seems a little more generous when you consider that Medicare premiums are dropping slightly as well. Medicare Part B monthly premiums will decrease by $5.20 in 2023, the first decrease in a decade. Because Part B premiums are automatically deducted from Social Security benefits, recipients who get Medicare will see their checks increase by slightly more than the 8.7% COLA.

You’ll need to earn slightly more to get Social Security credits.

In 2023, you’ll need to earn $1,640 for each Social Security credit. That’s up slightly from 2022, when the minimum was $1,510.

To qualify for Social Security benefits, you need at least 40 work credits. You can only earn four credits within a year, so qualifying for benefits requires at least 10 years of work. As long as you earn at least $1,640 each quarter of in 2023, you’ll receive the maximum four credits for the year.

Social Security will tax up to $160,200 of wages.

If you’re a six-figure earner, Social Security taxes may eat up a slightly higher portion of your paycheck this year. The cap on taxable Social Security wages will increase to $160,200 in 2023, up from $147,000 in 2022. Essentially, the first $160,200 of your earnings are subject to the 6.2% Social Security tax. Anything you earn above $160,200 is exempt.

The increase in this cap isn’t something most people have to worry about, though. Only about 6% of workers earn more than the maximum taxable income in any given year.

You can earn more if you work and collect Social Security.

If you’re working while collecting Social Security and you haven’t reached full retirement age yet, you’ll be able to earn a bit more money without chipping away at your benefit. In 2023, Social Security will withhold benefits at the following rates:

• $1 for every $2 you earn above $21,240 per year, or $1,770 a month, if you won’t reach full retirement age in 2023. In 2022, the limits were $19,560 per year, or $1,630 per month.

• $1 for every $3 you earn above $56,520 per year, or $4,710 per month, if you’ll reach full retirement age in 2023. The limits only apply to income you earn until the month you turn 67, which is full retirement age. So if you turn 67 in April 2023, Social Security will only withhold benefits if you earn more than $56,520 between January and March. The 2022 limits for those reaching full retirement age during the year were $51,960 per year, or $4,330 per month.

The thresholds for working while collecting disability will also rise in 2023. Disabled workers who aren’t blind can earn up to $1,470 a month without affecting benefits, up from $1,350 a month in 2022. Blind workers can earn up to $2,460 a month in 2023, up from $2,260 a month in 2022.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected] or chat with her in The Penny Hoarder Community.

After the ball drops and the bubbly pops to ring in the new year, the last thing you want to think about is how you’re getting home.

You probably know that if you take Uber after the clock strikes midnight, you’ll likely have to deal with Uber New Year’s Eve surge pricing, the increase in standard ride fees that occurs during high-demand periods.

But is paying more the only way to get a safe ride home? We’ve got a few tips.

5 Ways to Avoid Uber Surge Pricing on New Year’s Eve

1. Play the System

Everyone has a friend who installs every ride-sharing app imaginable on their phone and flips through them until they find a price they like.

Be that friend on New Year’s Eve; keep an eye on all ride-sharing services.

Download Uber, Lyft, Via or whichever app floats your boat. Fill ’em up with your billing info so you’re ready to go on the big night, then start scanning the competition. By having multiple options, you increase your chances of avoiding surge pricing.

2. Stock Up on Promo Codes

Have a promo code for a discounted or free ride? Make sure it’s applied to your account before you start cracking open bottles of champagne.

Ride-sharing companies may black out some referral codes or promo offers on their busiest nights of the year, but it’s always good to be prepared.

3. Plan Your Trips to Anticipate Costs

Historically, the cheapest times to call upon ride-sharing services early on New Year’s Day are right after the ball drops at midnight and again after 3 a.m.

Want to stay out late but not that late? Wind down the night at a friend’s place so you don’t spend money at a bar until closing time.

4. Walk a Few Blocks

If you’re with a group or in a busy, well-lit area, it may be worth walking a few extra blocks to get a ride in a surge-free zone. Use an app like SurgeProtector to see the surge territory near you and whether it’s worth hoofing it a bit.

Be prepared for every zone to be a surge zone at some point on New Year’s Eve and early on New Year’s Day, though.

5. Take a Cab

Standing on the curb trying to flag a cab after midnight on Jan. 1 will be frustrating at best. It’s a night where more drivers are needed, but there never seem to be enough.

Before the festivities begin, find out if your local taxicab commission has an app of its own. You may not save money by hailing a regular ol’ cab from your phone, but you’ll be able to stay warm while you’re waiting — and you won’t have to shout over the crowd to call dispatch.

A Reminder to Drink Responsibly

Over 11,000 people were killed in alcohol-impaired-driving crashes in the U.S. in 2020, according to the National Highway Traffic Safety Administration, with New Year’s Eve being notorious for wrecks.

Everyone’s focused on celebrating. And that’s cool. But since we know many people are going to drink, it’s important to plan your New Year’s Eve travel before the big night.

Use the provided tips to plan your ride, and be sure to stay safe on the road.

Frequently Asked Questions (FAQ)

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Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.

Lisa Rowan is a former senior writer and producer at The Penny Hoarder.

Dear Reader,

Every week I count on you to send your thorniest money questions my way. And once again, you certainly delivered. Some themes from my inbox in 2022:

• For the third consecutive year, the most commonly asked question was “Can I get my ex’s Social Security?”
• The abysmal performance of the stock market had many of you asking: “Should I just cash out already?”
• Inflation and stagnant wages had a lot of us on edge.
• As usual, letter writers sought advice about making things work with a partner who’s broke, lazy or both.
• Inheritances were a hot topic. But lately the burning question has been: “Do I have to share my inheritance with my spouse?”

Got a burning money question? Submit it here. Though I can’t respond to every question, I’ll do my best to answer if I have something helpful to say. Check back on Wednesdays and Sundays to see if I answered your letter. While you’re at it, subscribe to my weekly newsletter for bonus Dear Penny content.

Thanks for reading and for trusting me with your most perplexing money questions. Cheers to a prosperous 2023!

Sincerely,

Penny

Top 10 Dear Penny Columns of 2022

Before we ring in 2023, let’s look back upon some highlights from the past year. These were the 10 most popular Dear Penny columns of 2022.

1. Can I Stop My Ex-Wife From Claiming Half My Social Security?

Dear Penny, 

I was married 22 years. The marriage ended in 2002. When my ex-wife retires, will I be able to collect half of her Social Security? If so, how do I go about that? I am 61; she is 62 now.

Also, would she be able to come after half of my Social Security? How can I prevent the latter? (I earned less than she did.)

-R.

Read Dear Penny’s response here.

2. Do I Have to Pay Mom's Debt With My $1M Life Insurance Payout?

Dear Penny,

My mom passed away last year with lots of debt in her estate. This debt includes a mortgage, IRS tax liens, credit card debts and other heirs who would need to be notified of her estate. The estate appears to be in debt just below $200,000 with no other assets available to pay for those debts. 

Unknown to me, my mom made me the sole beneficiary under several insurance policies (well over $1 million), including her lifetime pension/annuity. Per her last wishes, through video recordings, she did not want any other family members to be notified of her death, not even my other half siblings. She said that I should simply walk away from all the debts, and all other belongings, including the mortgage. 

I have done exactly as she wished, by filing all claims and paperwork, including the lifetime pension/annuity that I am now receiving. All proceeds from those claims are now deposited into my own personal accounts as the sole beneficiary. 

The only liquid cash that she had was $3,000 in a bank account with no savings or other source of funds. The entire contents of her estate amounted to around $5,000 of personal belongings. At this time the house has gone through foreclosure, including all the furnishings and personal belongings left inside. 

I have not made any effort to notify any debt collectors or any parties who would have a claim as a creditor, including any heirs or family members. (Our family has had a bad relationship for over 10 years, and I was the only one who kept in contact.) I also haven’t filed any of her tax paperwork for the prior year for her final taxes. Her final paychecks were issued out to the estate, around $9,000, and would need to go through probate. 

I have essentially walked away from everything as she has instructed, except to follow through with filing claims for both the policies and her annuity. My main question is, will I be liable for anything due under her name such as back taxes or any other obligations that could pop up in the future? 

I have already asked two attorneys, but both of them have simply said that I can walk away. But I have some reservations in doing so, as it just does not feel normal. As the sole beneficiary of both the policies and lifetime annuity, am I obligated to pay any taxes or liens that may present themselves in the future? 

-J.

Read Dear Penny’s response here.

3. Can My Deadbeat Son Fight My Decision to Disinherit Him?

Dear Penny,

I am 73 and have one son who is unmarried and lives in the same town. I also have five siblings. I am very close to my youngest sister, who is on disability. I paid my home off two years ago, and I have some 401(k) savings. 

I am planning on leaving my home and all of my 401(k) and savings accounts to my sister. I owe no money to anyone. I have a $10,000 life insurance policy I put in my son’s name. 

I know he will be upset, but he has been stealing from me for years as he did with his dad when he was living. He has a set of master keys and gets in even after I’ve changed my locks and also stole my extra car key! Can he fight my decision in court to get the money and house after I pass on?

-L.

Read Dear Penny’s response here.

4. Am I Responsible for My New Husband's Secret $200K Debt?

Dear Penny,

I am 59 and was recently married. I just learned he is in debt for over $200,000. As of right now, all of our financial stuff is separate. If he passes away, am I responsible for his debt even though it was acquired before our marriage? Also, are we better off filing our taxes separately?

-M.

Read Dear Penny’s response here.

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5. I Can't Afford a Divorce Lawyer. Am I Stuck With My Wife Forever?

Dear Penny, 

I will have been married for 30 years in July 2022. My wife and I haven't been intimate in over 10 years. We're both 58 years of age. 

I haven't been in love with her for almost half our marriage. I've told her for the last 10 to 12 years that I want a divorce. But I can’t get a divorce attorney at this time because I've been trying to pay off hospital bills and other loans. 

I've been disabled since close to the end of 2016. My disability is more in my severe depression and my migraine headaches. Stress usually causes my migraine headaches.

When my dad died, my siblings and I received an inheritance of about $100,000. My inheritance money paid off our house. 

I'm afraid if I proceed with divorce that I'm going to be homeless. I had been hoping that my wife would leave instead of me leaving, but I'm almost 100% sure she's not going anywhere. 

My wife and I do not have any more children living with us. I honestly cannot stand to be around her anymore. When she speaks to me, her voice drives me nuts. I just don't want her to say anything to me. 

Penny, I don’t know if I'm asking you for advice or really what I'm doing. I cry almost every day because I'm so sad and alone. I honestly don't know what to do with myself. I don't want to be homeless, but I don't want to be sad and alone anymore. Can you give me advice on what I need to do, please?

-E.

Read Dear Penny’s response here.

6. Was I Wrong to Give My Daughter's College Fund to a Relative?

Dear Penny,

When my daughter didn't go to college even after taking a "gap year,” I used her college fund (still legally my money) to pay off a relative's student loans. My daughter was furious, and this soon translated into a general anger toward "deadbeats" who don't want to pay back their student loans. 

I pointed out that many people were coerced into student loan debt. She said they should "grow up" and support themselves. This was quite ironic coming from a twentysomething who lives at home rent-free. 

To teach her a lesson, I tried to charge her rent. When she didn't pay, I threatened to kick her out, but she knew I didn't mean it. I thought maybe she had learned her lesson, but she just now made an angry post regarding the payment pause extension. I'm pretty sure she reads this column, so maybe you could help her to see the problem with her attitude?

-L.

Read Dear Penny’s response here.

7. Can I Kick Out My Boyfriend if We're in a Common Law Marriage?

Dear Penny,

I am in a bit of a mess and have no idea what I should do. My boyfriend and I have been dating for about seven years. Last year we decided to buy a house and finally move in together. 

Unfortunately for personal reasons (not bad credit), he is not able to have anything in his name. Therefore, the house is under my name alone. After moving in, we bought a car. We also needed furniture for the house, so I opened a few lines of credit also under my name to furnish the house. 

Six months later, our relationship isn’t doing so well. We constantly fight, and it has gotten to the point where I have seriously considered ending the relationship. 

The issue is, I fear ending the relationship because I know I can’t afford the mortgage, car payment, bills and credit card debt by myself. On top of that he has told me that if I end the relationship, he will not leave because we are in a “common law marriage” and, therefore, this house is just as much his as it is mine. 

I don’t want to stay in a toxic relationship, but I also can’t afford to end it. Is this true? Does he have a claim to the house under common law marriage? What can I do about the debt I can’t afford on my own? I feel like such a failure. Please help!

- L.

Read Dear Penny’s response here.

8. My Best Friend Died. Is Her Husband Liable for Her Secret Debt?

Dear Penny,

My best friend was recently killed by a drunk driver. I’m helping her husband sort everything out, and we’ve discovered she was hiding credit card debt. She also had several student loans he didn’t know about. 

His name wasn’t on any of it. Is he liable for these debts?

-Picking Up the Pieces

Read Dear Penny’s response here.

9. Should My Husband Refuse to Pay $600 for His Mom's Cremation?

Dear Penny,

My 72-year-old mother-in-law passed away last month. She had cancer, and, sadly, it took her very quickly. Before she died, she had made her wishes known to my father-in-law as to what she wanted after death, which was no funeral, just cremation, and for the family to go and have a meal together.

The problem is that my in-laws live in Britain, where my husband is from. His whole family still lives there. My husband has lived in the U.S. for 27 years. My one brother-in-law and his wife arranged everything for my father-in-law.

Money is tight for us so we could only arrange for my husband to go. He had enough frequent flyer miles to help bring down the costs a little for us, but there are still fees and taxes involved with those tickets. The ticket cost around $450. My brother-in-law offered to pick him up from the airport and take him back because he gets free diesel in his company van. My husband took $300 with him to cover meals and his share of the funeral meal. While he was there, he took out his dad and then his dad, brother and his family.

Fast forward to two weeks later, and we received an invoice for one-third of the cost of the cremation, which comes to around $600. The crematorium holds the ashes until the bill is paid. My husband is a little frustrated at this. He has two brothers, one who lives in the same town as his parents and the other who lives within driving distance of his parents. Neither spent a fraction of what my husband spent to get there.

We don’t know what to do. We don’t have the money immediately to pay. We can save, but it will take a couple of months. We finally paid off all of our credit cards through a consolidation loan so we don’t want to use credit. In the meantime, my father-in-law awaits my mother-in-law’s ashes, and it’s causing a rift in relationships. The brothers aren’t extremely close already, but my husband was hoping his mum’s passing might help bridge the gap.

Can we tell them it will take a few months to save? Or can we tell them we just can’t afford it?

-Frustrated at Funeral Costs

Read Dear Penny’s response here.

10. My Husband Refuses to Pay for the Costs of Raising Our Kid

Dear Penny, 

My husband makes at least twice as much money as I do and we both pay bills. He refuses to pay for anything for our child. Not school supplies, clothes, classes, or birthday and Christmas gifts. He will even avoid me when I try to talk to him about it. 

I never have money because I pay bills also and pay for everything for our child. What should I do?

-T.

Read Dear Penny’s response here.

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Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected].

Big changes are set to roll out for retirement plans after the passage of key provisions collectively known as “Secure 2.0.”

New rules on 401(k) contributions, tax credits and other retirement-related benefits were tucked into a much larger 4,100-page, $1.7 trillion spending bill Congress and President Joe Biden approved Dec. 23.

One change — increasing the required minimum distribution age from 72 to 73 — goes into effect Jan. 1. Others won’t roll out for a few years. 

Here are some of the highlights. 

8 Changes That Make Managing Your Retirement Plan Easier

1. Auto-Enrollment in Workplace 401(k) Plans

Automatic enrollment in 401(k)s is shown to increase workplace participation. Employees are more likely to save for retirement if they don’t have to navigate the often confusing sign-up process. 

Secure 2.0 requires employers — with some exceptions for small business owners — to automatically enroll eligible employees in 401(k) or 403(b) plans. Employees can then opt out of participation if they want. 

2. Get Help Finding Your Lost 401(k) Account

Lots of people forget to roll over their 401(k) when they start a new job. Tracking down old 401(k) accounts is tricky at best and a time-consuming nightmare at worst. 

Secure 2.0 gives the U.S. Department of Labor authority to create a new “lost and found” database. Workers will be able to search this database for old retirement accounts they may have forgotten about. 

The database is set to roll out roughly two years from now. 

3. Get Money for Retirement While Paying Down Your Student Loan Debt

Millions of Americans find themselves in a tough situation: Pay off student loan debt or save for their retirement. 

Beginning in 2024, employers will be able to make retirement contributions on behalf of employees who are paying off their federal student loans. 

For example, if you pay off $500 in student loan debt, your employer could put $500 in your 401(k) account — even if you didn’t make any 401(k) contributions yourself. 

To be clear, your employer won’t help you pay off your student loans. 

But the hope is that people saddled with student loans won’t have to choose between paying off their debt or saving for their future. With the help of their employer, they can do both at the same time. 

4. Revamps the Saver’s Credit to be More Beneficial for Lower Income Workers

If you’re a low- or middle-income worker, you can claim the Saver’s Credit by adding money to a 401(k) or individual retirement account.

Depending on your adjusted gross income and tax filing status, you can claim the credit for 50%, 20% or 10% of the first $2,000 you contribute to a retirement account within a tax year.

The Saver’s Credit is worth up to $1,000 for single filers, or $2,000 for married couples filing jointly.

But there’s a big problem with the current credit: It’s nonrefundable. So if you don’t owe taxes — which many low-to-middle income workers do not — the credit doesn’t help much. 

Secure 2.0 changes that by making the credit refundable. 

Beginning in 2027, the credit will feature a federal matching contribution that will be deposited into your IRA or eligible retirement account. 

The match will equal 50% of your retirement account contributions, up to a $1,000 match per person. Income limits and phase-out restrictions will apply.

5. Raises the Age for Required Minimum Distributions

You can’t keep your retirement savings in a tax-advantaged account forever. Uncle Sam eventually wants his cut. 

Required minimum distributions — or the amount of money you are required to withdraw from your retirement account each year — currently begins at age 72. 

Starting Jan. 1, 2023, that age increases to 73. In 2033, the RMD will increase to 75. 

Secure 2.0 also cuts the penalty for failing to take RMDs on time in half, from a 50% penalty to 25%. 

6. Bigger Catch-Up Contributions for Older Workers

People ages 50 and older can contribute more money to their 401(k) and IRAs than younger workers. 

Secure 2.0 bumps those yearly retirement account contributions even higher for people ages 60 to 63.

Starting in 2025, the 401(k) catch-up retirement contributions increase to either $10,000 or 50% more than the regular catch-up amount, whichever is greater. The IRA catch-up amount had been static at $1,000 but will now rise in $100 increments with inflation.

After 2025, those catch-up contributions will be indexed for inflation.

7. Waives the 10% Tax Penalty for Early Retirement Withdrawals in Some Cases

With few exceptions, withdrawing money from retirement accounts before age 59.5 results in a 10% IRS penalty. 

Secure 2.0 allows employees to withdraw up to $1,000 per year for an emergency or financial hardship penalty-free. 

You won’t be able to withdraw another $1,000 for three years unless you repay the full amount of the original distribution. 

You’ll still owe taxes on the withdrawal too, unless you’re withdrawing from a Roth account. 

Secure 2.0 also waives the 10% penalty for people with a terminal illness and survivors of domestic abuse. 

8. College Savings Accounts Can Now Rollover to Roth IRAs

A 529 plan is a tax-advantaged investment account used to help pay for educational expenses. 

It can be a great way to save for a child’s college expenses. But funds withdrawn for non-educational expenses are typically subject to income tax and a 10% penalty. 

Starting in 2024, account beneficiaries can roll money from a 529 plan into a Roth individual retirement account — bypassing taxes and penalties in the process. 

There’s a few limitations, such as a $36,000 lifetime cap on transfers from a 529 to a Roth IRA. The 529 account must also be open for at least 15 years before funds can be rolled over. 

Some people see this provision of Secure 2.0 as a way to spare 529 beneficiaries from taxes and penalties if they need to tap money for non-educational reasons. Others see the new rule as a tax break for the rich. 

Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.

For many of us, there’s nothing quite like spending lots of time at home to start noticing the literal (or metaphorical) cracks in the foundation. Maybe your kitchen could use some remodeling TLC, or perhaps you have appliances that desperately need to be replaced (or even some combination of both).

Whatever it is, the home maintenance and remodel industry has been on a huge upward trajectory for years now, and while the experts predict it might start to slow down in 2023 (by about 7.4% according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University) — ‘slow’ isn’t quite the word we’d choose for this $400 billion industry.

In fact, Angie's List (now called Angi) found that the average household spending on home-related projects in 2022 was $12,904, with a whopping $8,484 of that going towards home improvement, and $2,467 towards home maintenance.

So if you’re one of the many people trying to map out your home project plans for 2023, keep reading. We’ve got seven of our best penny-hoarding tips right here to help you make the most of your remodeling and home maintenance budget.

7-Step Home Maintenance Plan for 2023

1. Don’t Ignore Your House’s Cries for Help

Your house can’t talk but it can send you messages. If it’s crying for help, ignoring the message could cost you money later.

Don’t ignore home repairs, and you’ll save in the long run. Here are seven you can’t afford to put off.

1. Anything involving water. A small wet spot can be the sign of a leak somewhere. Eventually that leak will grow and possibly destroy floors, walls, furniture, and more. A leaky faucet, running toilet, or dripping water heater can cost more in water bills than the repair would.
2. Anything involving electricity. Flickering lights, bad outlets or switches, tripping breakers, and GFI outlets that won’t reset can be signs of electrical problems, which could lead to fires.
3. Pests. Rodents and bugs can do lots of damage if left alone.
4. Peeling caulk and paint. Once the protective caulk or paint is gone, water gets in and causes damage.
5. Broken or malfunctioning HVAC. Problems with your heating, ventilation and air conditioning (HVAC) could mean you’re too sweaty or too chilly. But temperature swings inside the home can lead to problems. Additional humidity could cause mold and cold temperatures could cause pipes to freeze.
6. Cracks. Small cracks are normal. Big or changing cracks aren’t.
7. Smoke alarm and carbon monoxide detectors. Working detectors save lives. Change the batteries regularly.
8. Darkening ceilings near fireplaces. Dark places or a sooty smell can mean the fireplace isn’t drafting properly, which can let deadly gasses inside.

2. Keep Up With Home Maintenance

Maintenance is usually cheaper than repairs, so keeping up with checkups around your home can help you avoid a bigger repair bill later. It’s smart to figure out how much to budget for home maintenance. Here are the things you should consider:

• Prevent moisture problems. Water can be evil when it shows up in places it shouldn’t. Routinely check your gutters, sump pump, water heater, faucets, drains, septic tanks, and irrigation systems.
• Maintain appliances and equipment. Do annual HVAC maintenance and change filters regularly. Check the connections in the laundry room and clean the dryer vent. Change filters and clean the range hood in the kitchen.
• Keep up the exterior. Keep dirt away from the house so water can drain correctly. Inspect the paint and siding to make sure they’re looking good and doing their job of protecting your house. Maintain caulk around openings. Inspect chimneys. Service the electric garage door.

Financial experts recommend putting away about $200 a month for home maintenance. That way, you’ll have $2,400 a year, which can hopefully cover the maintenance and possible repairs.

3. Know When to DIY and When to Use a Pro

Sometimes it’s necessary to call in the pros when tackling home maintenance or home improvement projects.

Do you really want to DIY and regret it?

When deciding to DIY or hire a pro, ask yourself how much experience you really have. Things often look easier to do on TV or in a YouTube video than they really are.

Experts say to avoid DIY-ing anything involving electricity (especially 220 circuits) or water unless you have experience. Things can go bad very quickly.

4. Get Bids for Home Projects

If you need professional help for your home, getting bids on home projects can save you lots of money and time.

A professional handyperson can handle a wide variety of jobs like caulking, painting, gutter cleaning, patching drywall, installing tile, hanging objects, and installing fixtures. Making a list of what you want done can be helpful so you can prioritize if you only have a handyperson hired for a few hours.

When looking for the right expert for your home project:

• Learn about the project by watching videos. This will help you know if someone’s time estimate seems way off.
• Ask for recommendations. Neighbors, friends, and family often know good people who do good work. Also, real estate agents will be able to tell you who they recommend to get homes ready for sale.
• Websites and apps make it easy to research who can do what you need. Some even allow you to post a request for someone to bid on your project.
• Read reviews before you hire someone.

Don’t be afraid to ask questions and discuss exactly what the estimate includes and what the payment terms are. It’s your home, and your budget

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5. Do What You Can to Lower Electric Bills

Some simple things can help you get a lower electric bill each month.

• Seal cracks and leaks.
• Upgrade to more energy-efficient equipment.
• Use fans.
• Air-dry laundry as much as possible.
• Change to LED lighting.

You can save on other utility bills, too, with attention to your consumption habits. For instance, some simple reductions in water use could mean saving money on water bills.

6. Know What Your Home Insurance Covers

Disasters or repairs can ruin your budget. Homeowners insurance can help protect your property and belongings from damage and losses. It also provides liability coverage.

But it isn’t always easy to know what is covered and what isn’t. And when is it worthwhile to file a claim?

All homeowners policies are not created equal, and they can also vary widely based on where you live and in what kind of dwelling. It’s important to understand when it can help you out — and when it can’t. Here’s an article that will help you learn what home insurance covers.

7. Home Buyers: Don’t Skip Home Inspections

If you’re ready to dive into the world of home ownership or move into a new home, don’t get so caught up in the excitement that you make a big mistake.

Following this eight-point home inspection checklist could end up throwing cold water on your plans, but it will also prevent buyer’s remorse if you’ve fallen in love with a money pit.

Inspectors look at more than 1,000 things throughout a house. In general, those things are:

• Structural components
• Roof
• Attic and insulation
• HVAC systems
• Plumbing and water
• Electrical and wiring
• Outside the house
• Appliances

In today’s real estate market, forgoing the inspection could make your offer more attractive to the seller, but the average inspection cost of $350 could save you thousands of dollars down the line.

Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics. Freelancer Larissa Runkle contributed to this report. 

Consumers could start their 2023 with cash payments by participating in several settlements with companies such as T-Mobile, Procter & Gamble and more. File a claim by the January settlement deadlines to receive cash payments and other benefits.

Experian incorrect residential information $22M class action settlement

Experian agreed to a $22.45 million class action settlement to resolve claims it misreported some consumers as high risk on credit reports.

The settlement benefits consumers for whom Experian sent a credit report with an inaccurate Fraud Shield Indicator to a third party since Sept. 27, 2017. The settlement also includes consumers who contacted Experian about Fraud Shield Indicators between July 1, 2018, and July 31, 2021.

According to the class action lawsuit, Experian wrongfully reported some consumers as having non-residential or high-risk addresses. This credit report information allegedly caused some consumers to be denied financing or other opportunities, despite having a residential address.

To receive a settlement payment, consumers must submit a valid claim form by Jan. 30, 2023.

Keurig ‘recyclable’ K-Cups false advertising $10M class action settlement

Keurig agreed to pay $10 million to resolve claims that its K-Cups are not recyclable as promised on product packaging.

The settlement benefits consumers who purchased “recyclable” K-Cups between June 8, 2016, and Aug. 8, 2022.

Despite the single-use coffee pods being labeled as recyclable, they are allegedly too small to be recycled at most facilities. Instead of being recycled, the plaintiffs contend, the pods end up in landfills. Consumers say they wouldn’t have purchased the products or paid as much for K-Cups if they knew the coffee pods weren’t recyclable.

To receive settlement benefits, K-Cup purchasers must submit a valid claim form by Jan. 9, 2023.

Procter & Gamble benzene aerosol products $8M class action settlement

Procter & Gamble agreed to an $8 million class action settlement to resolve claims that its aerosolized products containing carcinogenic benzene.

The settlement benefits consumers who purchased Secret, Old Spice, Pantene, Waterless, Aussie, Herbal Essences or Hair Food aerosol antiperspirant, deodorant, body spray, dry shampoo or dry conditioner products between Nov. 4, 2015, and Dec. 31, 2021.

Aerosol products under these brands allegedly contain benzene — a known human carcinogen associated with leukemia. Plaintiffs in the class action lawsuit claim that they wouldn’t have purchased Procter & Gamble’s products if they knew they could be exposed to a carcinogen. Consumers also argue the company should have tested its aerosolized products for benzene and other contaminants.

Consumers must submit a valid claim form by Jan. 26, 2023, to receive settlement payments.

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Smashburger ‘double the beef’ false advertising $5.5M class action settlement

Smashburger will pay $5.5 million to resolve claims that its Triple Double hamburgers do not contain “double the beef” as advertised.

The settlement benefits Smashburger customers who purchased Triple Double hamburgers, Bacon Triple Double hamburgers, French Onion Triple Double hamburgers or Pub Triple Double hamburgers between July 1, 2017, and May 31, 2019.

Smashburger allegedly advertised its Triple Double burgers as containing “double the meat.” Despite these promises, Triple Double burgers did not contain twice the meat as typical burgers, the class action lawsuit contends. Instead, the burgers allegedly contain the same amount of meat as a single patty. Consumers say they overpaid for Triple Double burgers based on false advertising claims.

The claim deadline for this settlement is Jan. 17, 2023.

T-Mobile data breach $350M class action settlement

T-Mobile agreed to a $350 million class action settlement to resolve claims that its negligence caused a 2021 data breach that affected 76 million Americans.

The settlement benefits consumers whose personal information was compromised in the T-Mobile data breach announced by the company in August 2021.

A class action lawsuit accused T-Mobile of failing to protect consumer data through reasonable cybersecurity measures. Plaintiffs in the case say T-Mobile is responsible for the fraud, identity theft and financial damages that occurred after hackers stole sensitive information such as Social Security numbers. Affected consumers will allegedly continue to face the risk of future damages resulting from the breach.

To receive a settlement payment, consumers must submit a valid claim form by Jan. 23, 2023.

Abbott Laboratories Similac formula false advertising $19.5M class action settlement

Abbott Laboratories will pay $1.95 million to resolve claims that its Similac infant formula doesn’t make as many servings as promised on product labeling.

The settlement benefits consumers who purchased certain Similac Advance, Sensitive, Total Comfort and Organic infant formula products between June 24, 2016, and Sept. 22, 2022.

Similac infant formula products reportedly promise to make a certain number of servings. According to a false advertising class action lawsuit, Abbott Laboratories inflated the total servings on its product packaging to deceive consumers into paying higher prices for its products. Plaintiffs in the case say they wouldn’t have paid as much if they knew the true number of servings each Similac container made.

The deadline to file a claim for payment with the settlement is Jan. 31, 2023.

Brut, Sure antiperspirant benzene $3.65M class action settlement

Idelle Labs agreed to a $3.65 million settlement to resolve claims that it endangered customers with benzene-contaminated antiperspirants.

The settlement benefits consumers who purchased certain Brut and Sure antiperspirants between Nov. 15, 2015, and Oct. 28, 2022.

Brut and Sure antiperspirants were recalled in February 2022 due to concerns the products were contaminated with carcinogenic benzene. Consumers in a class action lawsuit against Idelle Labs claim that the contaminated products were adulterated and misbranded, making them illegal under federal and state laws. Plaintiffs in the case also argued that, had they known about the contamination, they would not have purchased the products.

To receive settlement benefits, consumers must submit a valid claim form by Jan. 12, 2023.

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Robinhood data breach class action settlement

Robinhood agreed to pay an unspecified sum to resolve claims that a 2020 data breach caused some customers to have their investment accounts drained by hackers.

The settlement benefits individuals whose Robinhood accounts were accessed by an unauthorized third party between Jan. 1, 2020, and April 27, 2022. Eligible instances of account fraud must have been identified by Robinhood or reported to the company by customers.

Following a 2020 data breach, Robinhood investment customers began to experience account takeovers in which hackers allegedly drained accrued funds. According to plaintiffs in a class action lawsuit, Robinhood promised to cover 100% of the losses resulting from this breach after failing to promptly respond to the breach. However, in reality, the investment platform allegedly denied some reimbursement requests without any explanation — leaving customers to shoulder the burden of stolen funds.

The deadline to file a claim with the settlement is Jan. 17, 2023.

Auto parts antitrust $3.2M class action settlement

The fifth round of payments is available from a $1.2 billion auto parts class action settlement with automotive parts manufacturers. This round, totaling over $3.1 million, covers electronic braking systems, hydraulic braking systems and exhaust systems.

The settlement benefits individuals who purchased or leased an eligible new vehicle between 2002 and 2018 or who paid to replace one or more qualifying vehicle parts.

Plaintiffs in the antitrust class action lawsuit accused Robert Bosch, Bosal, TRW and other parts manufacturers of conspiring to raise and fix the price of auto parts. As a result of this scheme, consumers were allegedly forced to pay a higher price for replacement parts for their vehicles.

To receive settlement benefits, drivers must submit a valid claim form by Jan. 7, 2023.

Barlean’s Organic Oils coconut oil false advertising $1.6M class action lawsuit settlement

Barlean’s Organic Oils agreed to a $1.6 million class action settlement to resolve claims that its coconut oil is falsely advertised as “healthy.”

The settlement benefits consumers who purchased Barlean’s Organic Virgin Coconut Oil, Barlean’s Organic Culinary Coconut Oil or Barlean’s Organic Butter Flavored Coconut Oil between Jan. 24, 2015, and Nov. 10, 2022.

Barlean’s reportedly advertises its coconut oil products as “healthy” and able to support the heart and immune systems.

According to a class action lawsuit, this is untrue.

In reality, coconut oil’s high saturated fat content allegedly makes it a health risk. Saturated fat is connected to serious health concerns such as stroke and heart disease.

The deadline to submit a claim with the settlement is Jan. 19, 2023.

Dear Irritated,

Let’s put aside the relationship for a second. Do you think your brother has $6,000 sitting around somewhere and is refusing to pay you? Or is it likelier that he’s flat broke and you’re just one of the many people he owes?

Many people believe the myth that successfully suing someone means you’ll actually get money. That’s simply not true. Even if you have solid proof your brother owes you (which often isn’t the case with family and friends) and you win a court judgment, that judgment is worthless when the person you’ve sued is broke.

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You could ask for a court order to garnish his bank account, but that won’t do you any good if there’s no money in there. Plus, if he owes banks money for things like negative balances and overdraft fees, he might not even have a bank account.

Maybe you could get a wage garnishment order if your brother is employed. But federal law generally limits that amount to 25% of someone’s disposable income, so if your brother doesn’t make a lot, this may not yield much. Also keep in mind that some types of income, like Social Security, are off-limits from creditor claims.

In many states, $6,000 is within the threshold for small claims court, so you probably wouldn’t have to pay much in court costs. But also consider the value of your time. You could end up wasting many hours and still walk away with nothing — while still destroying the relationship with your brother in the process.

Think about how likely it is that your brother can afford to repay you. Does he spend money on vacations, hobbies and going out to eat? If so, go ahead and sue your brother. Give him a final warning or two first. Maybe try sending him a demand letter via certified mail stating your intent to sue if he doesn’t pay up. In this scenario, I wouldn’t be so worried about creating a rift.

Someone who deliberately stiffs you out of $6,000 clearly doesn’t value the relationship.

But if you think your brother is struggling, have a talk with him and ask him to be realistic. Does he ever see himself getting caught up enough to repay you? I’m sure you’ve probably had this conversation far too many times to count by now. But maybe if you offer some flexible solutions, you can recoup at least some of that money.

Could he afford payments of $50 or $100 a month? If he has a bank account and he agrees to this, ask him to set up automatic transfers.

You may also borrow a move from professional debt collectors and offer to forgive some of the debt he owes in exchange for a lump sum. Since he owes you $6,000, you could tell him that if he can pay $3,000, you’ll forgive the other half. When you’re talking about a debt that’s been lingering for several years, collecting anything is better than nothing.

I’d also let him know that suing him is something you’ve considered. Tell him that’s a route you really don’t want to go because you care about the relationship — but also that when you lent him the $6,000, you really believed he’d repay you.

The important thing here is to be realistic. If you don’t believe your brother will ever have the funds to repay you, I think forgiving this debt is the best option. This is as much for you as for your brother.

When you’re holding onto the hope that something will happen, you wind up frustrated every time it doesn’t. Sometimes the best thing you can do is move on. Plus, accepting the fact that you’re never getting that $6,000 back helps you plan your own finances better.

Of course, forgiving isn’t forgetting. Don’t ever lend your brother money again. And if you ever lend money to someone in the future, do it with the assumption that you won’t be repaid.

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Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected].