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Q: What Is A Will?

Simply speaking, a will (also known as a last will and testament) is a legal document that details what you want to be done with your possessions after your death.

Jun

2023

How to Make a Will: 7 Steps

By Anna Davies | Budgeting & Goals, Financial Independence, money | Comments Off

It’s easy to put off writing a will. The process can seem complicated, not to mention expensive. And, if you’re single and don’t own a house, you may also feel like a will is unnecessary.

But writing a will actually doesn’t have to take a lot of time, or money. And even if you don’t have a lot of assets, having a will can give you peace of mind that your preferences will be followed.

Here’s what you need to know to write your own will.

What Is a Will?

Simply defined, a will (also known as a last will and testament) is a legal document that details what you want to be done with your possessions after your death. Your will may also identify a guardian if you have young children, as well as an executor, the person who will carry out the terms of your will.

What a will doesn’t cover is any asset in which you’ve designated beneficiaries. Named beneficiaries override a will. For example, if you designate all your property to go to your parents but you have a life insurance policy in which your brother is listed as a beneficiary, your brother will get the life insurance payout while your parents would get the rest of your assets.

There are other important documents people may create at the same time as they create a will, and are all a part of an estate plan. These include:

• Living will If you were to become incapacitated, what are your preferences as far as medical treatments? This document legally outlines your wishes.

• Power of attorney If you are unable to make decisions for yourself, who has the authority to make those decisions on your behalf? Power of attorney may be divided into medical power of attorney — the person who has power to make medical decisions for you — and financial power of attorney. Both can be the same person.

• Do Not Resuscitate (DNR) order This document communicates that, in the event of your heart no longer beating or you no longer being able to breathe independently, that you do not want doctors to perform any life-saving action.

• Organ and tissue donation If you were to die, would you want your organs and tissue to be donated? Having a form explicitly stating your wishes can make it easier for loved ones to fulfill your desires, instead of guessing what they think you would have wanted.

Not all documents need to be filled out at once. For example, some people may only fill out a DNR order if they have a terminal illness or are unlikely to recover.

Dying Without a Will

Even if you think you own nothing of great value and you’re still working on money management, chances are you do your own things that matter to your family. And if you die without a will, your loved ones may become involved in a complicated court process that will freeze your assets until state inheritance laws are followed.

If you’re single and die without a will, your assets will likely go to your closest blood relatives, which may be your parents or siblings. While this may be the preferred choice for some people, having a will allows you to earmark certain assets (or pets) for a charity or close friends.

It’s also a final chance to communicate your wishes to your loved ones and allows your loved ones to avoid a potentially drawn-out court process.

Dying without a will can become even more problematic if you have children. If you die without a will, the court will appoint a guardian. And, while the court attempts to choose a guardian with the best interest of children in mind, that choice may not be the same choice you would make.

How To Create a Will

Below are simple steps that can help you make a will.

1. Choosing How You’ll Create Your Will

For people who own a lot of property or assets, and may want to set up trusts as a way to minimize taxes and ensure their heirs follow their wishes, it can be well worth the investment to hire an attorney who can walk them through the basics of estate planning.

However, online templates and will-creating platforms can be sufficient for many people. These DIY options can be much less expensive than working directly with an attorney and are legal and binding provided they are signed appropriately. Some of these online options are even free.

Recommended: How to Write a Will Online in 8 Steps

2. Making a List of Your Assets

In order to leave property to your loved ones, you need to know exactly what you have. So it can be a good idea to start by making a list of all your significant assets, including jewelry, artwork, real estate/land, cars, and bank accounts that don’t name a beneficiary.

If you have retirement funds and/or life insurance, you don’t need to write out who is going to receive the proceeds, as these require naming beneficiaries within the account or policy.

3. Being Specific About Who Gets What

Once you have a list of all your assets, you can decide who you would like to get what. Here, it’s helpful to be as specific as possible, such as using full names and being detailed in describing the assets.

4. Considering Guardianship

For many parents, including pet parents, guardianship can be the most fraught element of their will. This can be a decision that takes time.

For example, some parents love the bond their children have with their grandparents but worry about how aging parents would handle the physical stressors of raising young kids. Other parents may wish to appoint a sister or brother who already has children, so their own kids can be brought up alongside other children. There is no wrong answer, but thinking through contingencies and what-ifs can be helpful in making the most informed decision.

It can also be a good idea to discuss the idea of guardianship with the intended recipient. Maybe a single uncle loves your kids but is uncomfortable taking on the role of parent, or maybe grandparents have similar reservations as to their fitness for taking on the role.

5. Choosing an Executor

Naming an executor for your will is an important choice. This is the person who will make sure that the wishes laid out in your will are followed. The duties of an executor include paying any remaining bills and debts, distributing your assets, and handling probate (transferring the titling of assets).

If you wish, you can name more than one person as an executor of your will.

6. Signing Your Will and Storing it in a Safe Place

A will is only legal when it is made legal — that is, printed and signed according to instructions. You generally need to sign a will in the presence of at least two witnesses. In some cases (such as if you’re using a document called a “self-proving affidavit” to simplify the process of going through probate court), your signature must be notarized as well.

You’ll also want to make sure you keep copies as directed. Many people keep a physical copy in a safe place, as well as a digital copy. Some might also share their will with their executor, or tell them where it is so it can be easily and quickly accessed if you were to die unexpectedly.

7. Updating Your Will as Appropriate

As your life changes, you may need to return to your will and update it. This could be due to:

• Asset changes. Buying a house, opening an investment portfolio, and other financial moves may lead you to revisit your will.

• Relationship changes. If you get married or have a serious partner, you may want to change your will to reflect that.

• The addition of children or pets to your family.

• The death or incapacitation of an appointed guardian.

It can also be good practice to assess your will after every life change, or every year or so. To update a will, you can either write what’s called a codicil (essentially a document stating any updates, written and signed by witnesses) or create a new will, depending on the extent of the changes.

The Takeaway

While the topic of death and end-of-life wishes can seem overwhelming, creating a will can be relatively straightforward. And, thanks to the many online templates now available, you can often make your own will for a relatively low flat fee, or even for free.

The process of writing a will typically includes coming up with a list of assets, choosing where you’d like each asset to go, as well as choosing a guardian (if you have children) and an executor of your will.

While you may not think you need a will, having one (and updating it as appropriate) can be a gift to your loved ones when they may need it most.

As you get your affairs in order, you may also want to get your financial life organized. One simple step that can help is opening an online bank account, such as SoFi Checking and Savings. With SoFi Checking and Savings, you can spend, save, and earn a competitive annual percentage yield (APY) — all in one place. Plus, you won’t pay any annoying account fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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

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Jun

2023

How to Save Money From Your Salary

By Kim Franke-Folstad | Budgeting & Goals, Life & Career | No Comments

When times are tight, it can feel as though putting even a few dollars away every month is next to impossible. How can you save money when you have a low salary and so many expenses?

There are ways to get that needle moving in the right direction — even for those who are new to working full time and living on their own. Here’s a look at three simple strategies that can help you save a little more from every paycheck.

Taking Advantage of the Employer Match

Concerning but true: A full 27% of people who are 59 or older have no retirement savings, according to a recent survey from Credit Karma. Thankfully, it’s never too late — or too early — to start putting money aside for retirement. Enrolling in your company’s 401(k) plan can be a great place to start, and they may even offer matching contributions.

Not every employer offers a match — or a 401(k), for that matter — but if it’s a perk that you can take advantage of, getting more information about how your plan works could open up an avenue for saving more from your salary.

Employers differ in their matching contributions. Some employers might contribute a dollar for every dollar or a percentage of every dollar an employee puts into their 401(k) plan, up to a designated percentage of the employee’s salary.

Plans are frequently set up so that employee contributions are taken directly from their paycheck, so the decision to contribute is automated instead of being something to think about each month.

Preparing a Budget and Following It

If the idea of a budget seems daunting — or past attempts have been less than successful — it might be because your approach to budgeting is too complicated. It’s not necessary to create a complex set of spreadsheets. In fact, when you’re new to budgeting, a simple approach often works better.

One easy budgeting framework you might consider is the 50/30/20 rule. This approach streamlines expenses into three categories so you don’t have to monitor every single expenditure to make it work. Instead, you divide your take-home pay (what you make after taxes are taken out) into three main categories: needs, wants, and savings. Here’s how it works.

• Put 50% of your money toward needs: This includes housing, utilities, groceries, transportation, insurance, prescription medications, minimum payments on credit cards and other debt, and any other expense you have to cover. If you require a cell phone or other equipment for work, that might be a need, but if it’s the newest, most expensive model, you may be slipping into the wants category.

• Put 30% toward wants: Here’s where everything from vacations to vending machine snacks can come in. If it isn’t essential, it goes into this chunk of your budget, so you’ll want to look at what you are currently spending on wants and see if you can find places to cut. Are you paying for streaming services you rarely watch? Are you a member of a gym you never go to? Could you cook one or two more nights per week and spend less on takeout? It’s all your call — but these costs all must fit into the allotted amount of money.

• Put 20% toward savings or paying extra on your debt: This category allows you to siphon off some of each paycheck to build your emergency fund, save for other short-term goals (like buying a car or going on vacation), and fund your retirement account. If you’re carrying high-interest debt, you’ll want to use some of this money to pay it down by making payments beyond the minimum.

• Feel free to tweak: The 50/30/20 guideline is just that — a guideline. You may want to adjust the breakdown if the cost of living is particularly high in your area, and you need to spend more than 50% of your take-home pay on needs. On the other hand, if you’re in a hurry to pay down debt, you might want to cut back on your wants spending to make it work. The key to budget success, however, is to stick with it. So you don’t want to come up with a spending plan that is so austere you can’t maintain it.

Automating Your Savings and Payments

Once you come up with a framework for how much you will spend and save each month, it’s a good idea to put as much of the plan on autopilot as possible.

Setting up autopay for your regular monthly bills, for example, eliminates the risk of missing payments and racking up late fees. In addition, you may want to consider automating your savings — this way, you won’t have to remember (and, quite possibly, forget) to transfer some money from your salary to savings each month, or be tempted to spend that money.

There are two different ways to automate savings. One is to split your direct deposit into two accounts. For example, you might have the majority of your paycheck go into your checking account and a smaller percentage into a high-yield savings account. If a payroll split isn’t an option, you can set up an automatic transfer from your checking to your savings on the day your paycheck clears. This way, the money gets whisked away before you have a chance to spend it.

The Takeaway

A savings plan doesn’t have to be complicated — or painful. In fact, you can start saving more from your salary by making just a few simple changes. These include: making sure you are putting some of your paycheck into your retirement plan at work (at least up to any employer match), coming up with a basic spending plan (such as the 50/30/20 breakdown), and putting your savings on autopilot. Before long, budgeting and saving will likely become a habit you don’t even have to think about.

If you’re looking for more ways to simplify your finances, you might consider opening a checking and savings account where you can spend, save, and earn all-in-one product. With a SoFi Checking and Savings account, you’ll earn a competitive annual percentage yield (APY) and pay no account fees, both of which can help your money grow faster.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

Jun

2023

Top 10 Fun Things to Do When Visiting Philadelphia

By Jason Steele | Budgeting & Goals, credit card | Comments Off

Philadelphia is perhaps most known for its historic sites, like the Liberty Bell and Independence Hall. It certainly played a role in the birth of our nation, but it has much more to offer as a travel destination. There’s amazing museums, street art, markets, and more to enjoy, plus incredible food, including those Philly cheesesteaks.

If you’re planning on spending time there, whether a weekend or a week, you’ll want to time it right and do some smart planning to make sure you get the most for your money. Here, you’ll learn about some of the fun things to do when visiting Philadelphia, plus ways to have a memorable trip.

Best Times to Go to Philadelphia

The best time to go to Philadelphia is in the spring, from around March to May. The average temperatures during this time are in the 50s to low 70s. The weather is warm without being too hot, and it’s not too crowded with tourists.

Early fall can also be a nice time to visit before it gets too cold, with average temperatures in the same range.

You might also considering visiting when some of the city’s biggest events are happening:

• The Philadelphia Flower Show in March

• The Kensington Derby and Arts Festival in May

• The Odunde Festival in June, the largest African-American street festival in the nation

• The Philly Bike Ride in October.

Bad Times to Go to Philadelphia

Winter is the least busy time to go to Philadelphia since it can get very cold and snowy.

However, because of this, hotel prices may be lower, so it may be enticing if you’re looking for how to save money on hotels in Philadelphia.

Summer travel is also a less desirable time to go to Philadelphia because of the crowds and hot weather, which can be in the 80s and humid. But if you don’t mind the warm temperatures, you’ll find plenty of tourists soaking up this historic city.

Average Cost of a Philadelphia Vacation

Philadelphia can be pretty affordable for a city destination. It’s possible to visit Philadelphia at nearly any budget. If you want a central location, Center City is a popular place to stay, with hotel prices around $500 to $600 a night during a weekend in May. If you’re looking for a more affordable place to stay, check out hotels near Fairmount Park, which can run between $300 to $400 for the same weekend.

What about a longer trip? In terms of total costs, not including getting to and from Philadelphia, expect to pay $1,319 for one person for one week, and $2,638 for a couple. If you’re budgeting for a trip and ready to start saving, you should think about where to keep travel funds. A high yield savings account can be a good choice as it keeps your money secure and earns interest; online banks often offer the best rates.

You may want to avoid “book now pay later” travel options if possible, and instead try to save money ahead of time so that you don’t pay extra in interest.

If you’re thinking about booking a trip to Philadelphia but are worried that you may have unforeseen circumstances and have to cancel your trip, you can look into travel insurance. If you pay for your trip with certain credit cards, they may provide travel insurance for certain situations. You should understand how credit card travel insurance works when deciding whether to purchase private travel insurance or use your credit card protections.

10 Fun Must-Dos in Philadelphia

There’s a lot to do in this large, historic city. This list of the top 10 must-dos in Philadelphia includes top-rated attractions and ideas from travelers who’ve been there and done that. You’ll find free activities as well as things that are pricier and that you might want to charge and earn credit card rewards.

Depending where you’re staying, you may be able to visit Philadelphia without renting a car. The city is very walkable, and there are buses, trains and above-ground trolleys in some parts of the city. The city also has an inexpensive shuttle service that stops at historic and cultural destinations around Center City, called the Philly PHLASH.

Now, here’s the list of the top 10 fun things to do while visiting Philadelphia.

1. Check out the Liberty Bell

Although the Liberty Bell doesn’t ring, it’s one of the most famous bells and is an iconic symbol of freedom. Its chime summoned people to hear the first reading of the Declaration of Independence in July of 1776. The Liberty Bell Center is free to visit year-round and does not require tickets. It’s located in front of Independence Hall, the next item on this list.

2. Immerse Yourself in History at Independence Hall

The Founding Fathers signed the Declaration of Independence inside of Independence Hall in 1776. The framework for The U.S. Constitution was created there as well, and it’s now a UNESCO World Heritage Site.

To visit this important site in the founding of our nation, you can tour Independence Hall daily from 9 am to 5 pm. Guided tours are available year-round for a $1 ticket. Also, be sure to arrive 30 minutes before your scheduled tour time to go through security screening. phlvisitorcenter.com/IndependenceHall

3. Chow Down on a Cheesesteak

A trip to Philadelphia is not complete without a delicious, classic Philly cheesesteak, which is said to have originated in the 1930s. What is it exactly? Chopped meat, onion, and cheese sandwich on an Italian roll. Two of the most popular places to get a Philly cheesesteak include Geno’s Steaks and Pat’s King of Steaks. They are both located at the intersection of South 9th Street and Passyunk Avenue in Philadelphia, in South Philadelphia. A cheesesteak will cost you $12 to $15. genosteaks.com/menu/ and patskingofsteaks.com/

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4. Wander Through Philadelphia’s Magic Gardens

One of the best things to do in Philadelphia is to take in the Magic Gardens, a unique indoor and outdoor art installation by local Philly artist Isaiah Zagar. The Magic Gardens contain multiple, brightly colored tiled passages over and underground. The installation includes such surprising, creatively repurposed materials like bottles, ceramic shards, cement and even bicycle spokes.

Philadelphia’s Magic Gardens is located on South Street in Philadelphia. The attraction is open year-round between 11 am and 6 pm, but is closed on Tuesdays. Tickets cost between $8 and $15. phillymagicgardens.org/

5. Run up the ‘Rocky’ Steps

If you pass the front of the Philadelphia Museum of Art, you may see people racing up the stairs and jumping around with their arms up. That’s because the first of the popular boxing films featured the character of Rocky Balboa, played by Sylvester Stalone, running up the steps to a soaring soundtrack. A statue commemorating Rocky is located at the bottom of the stairs.

The movie is almost 50 years old, but still has a dedicated following. This is a fun stop for film buffs, and read on to learn why you’ll want to go inside after you climb those steps.

6. Explore the Philadelphia Museum of Art

The Philadelphia Museum of Art includes more than 240,000 works spanning 2,000 years. It includes many famous works from the Renaissance, and an array of Impressionist and Post-Impressionist canvases. You’ll see masterpieces by such famed artists as van Gogh, Toulouse-Lautrec, and Klee. Whether your taste in art runs Medieval or modern, you’ll find something to admire.

The museum is open Thursdays to Mondays, and closed on Christmas, Thanksgiving, and July 4. Hours vary by date, but it’s generally open between 10 am and 5 pm. Tickets cost $25. There’s also a Pay What You Wish day on the first Sunday of every month and every Friday night after 5 pm. philamuseum.org/

7. Visit the Barnes Foundation

If you want to see even more art, the Barnes Foundation is another top thing to do in Philadelphia. Although less well-known than the Philadelphia Museum of Art, the Barnes Foundation includes a large collection of French impressionist and Post-impressionist paintings. The Barnes Foundation has an impressive 181 Renoirs, which is more than any other collection. It also includes 69 Cezannes, as well as African art.

The Barnes Foundation is located in the Franklintown neighborhood. Is open Thursday through Monday, from 11 am to 5 pm. Admission ranges from $5 to $25 depending on your age. barnesfoundation.org/

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8. Tour Reading Terminal Market

Reading Terminal Market is 130 years old and located below a former railroad terminal in Center City, Philadelphia. There are many vendors selling flowers, Amish baked goods, spices, Spanish olives, hoagies, books, crafts, and more. Reading Terminal Market is free to enter, and is open daily from 8 am to 6 pm. readingterminalmarket.org/

9. Snap Selfies at the Love Sculpture

Philadelphia is known as the City of Brotherly and Sisterly Love. And the colorful steel LOVE Statue by artist Robert Indiana certainly says it. You’ll find this Pop Art favorite at John F. Kennedy Plaza, with the four letters of the word “love,” stacked up; it’s a popular place to take photos.

There are actually multiple LOVE statues in the city. There’s also another LOVE statue on the University of Pennsylvania campus and an AMOR statue at Sister Cities Park, a few blocks from Kennedy Plaza. The statues are all free to visit.

10. View the Delaware River Waterfront

The Delaware River separates Pennsylvania from New Jersey, and the waterfront area can be a fun thing to do in Philadelphia. It includes multiple attractions and parks, like Cherry Street Pier, Race Street Pier, Blue Cross RiverRink, and Spruce Street Harbor Park. The waterfront has great views of the Benjamin Franklin Bridge, which connects Philadelphia and New Jersey. If you’re traveling with pets, the Delaware River waterfront can be a perfect place to take a stroll with your dog while you’re visiting Philadelphia.

The Takeaway

Philadelphia is a unique destination that brings history to life, but also has an array of art and other attractions to take in. Plus, there’s great food to sample in this city. A trip to Philadelphia can be both fun and educational, as well as affordable, provided you know a few smart hacks.

SoFi Travel is a new service exclusively for SoFi members. Through a partnership with Expedia, we make it easy to find the lowest rates and book your reservations — for flights, hotel rooms, car rentals, and more — all in one place. Earn 2x rewards when booking with your SoFi Mastercard or debit card. And when you redeem your SoFi rewards for travel, you get a 25% bonus: $100 of reward points are worth $125.

Wherever you’re going, get there with SoFi Travel.

FAQ

What are things to do in Philadelphia for free?

There are many things to do in Philadelphia for free, like visiting sites including the LOVE sculpture, the Rocky steps, or the Liberty Bell. Free activities are one way to hack how families afford to travel.

What is Philadelphia most popular for?

Philadelphia is probably most famous for historic sites like the Liberty Bell and Independence Hall. However, other popular and well-known attractions include Love Park, the Philadelphia Museum of Art, Reading Terminal Market and the Rocky Steps.

How can I spend a day in Philadelphia?

Philadelphia’s Historic District has several attractions within walking distance of each other and would be a good way to spend a day in Philadelphia. The Liberty Bell, Independence Hall, Elfreth’s Alley, and Franklin Square are all located in Philadelphia’s Historic District. Or you might visit some art attractions for a day, such as the Philadelphia Museum of Art, the Barnes Foundation, and Philadelphia’s Magic Gardens.

Photo credit: iStock/Ultima_Gaina

¹See Rewards Details at SoFi.com/card/rewards.

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

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

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Jun

2023

How to Lower Car Insurance & Save Money

By Kim Franke-Folstad | Budgeting & Goals, Financial Independence | Comments Off

Some things that affect the price of auto insurance you can’t do anything about — like your age — and some you might not want to change, like where you live. But by comparing rates, you may be able to figure out how to get cheaper car insurance.

Here are some other considerations.

How to Get Cheaper Car Insurance

Wondering how to lower car insurance costs?

There’s no downside to looking for a lower premium than you’re currently paying on car insurance. If you find out you have a better deal than you thought, you can stick with the company, and premium, you have.

But if you’ve had the same coverage and carrier for years (or even a year), you may benefit from making some changes.

Discover real-time vehicle values with Auto Tracker.¹

Now you can instantly monitor vehicle prices in this unprecedented market—to help you make smart money moves.

Shop Around and Get Some Quotes

Rates for the exact same coverage can vary from one insurance company to the next—and from one customer to another. So using an online comparison site to shop for a policy and premium based on your specific needs (or your family’s needs) can be a good way to start your search for savings.

The Insurance Information Institute recommends getting at least three price quotes when you’re shopping for a better rate.

You’ll likely see plenty of company names you know when you use a comparison site, but you also may run into some that are less familiar. If you’re intrigued by a company’s rates and coverage options but want more information, you can read consumer reviews online.

You also can check out a company’s financial health with a rating service like AM Best or Standard & Poor’s. And you can contact your state insurance department to ask about any complaints related to a particular insurer.

Once you’ve done some research, you also may want to contact your current insurance provider to see what savings options it might offer to keep you as a customer.

Look for Discounts

When you’re shopping, it’s smart not to overlook the opportunity to save money on your auto insurance premiums with discounts.

Many insurers offer price breaks based on things that make a driver statistically safer to insure—like a good driving record or a vehicle with extra safety or anti-theft features. Drivers of all ages may qualify for a discount after taking a defensive driving course. And carpoolers and those who work from home may benefit from low-mileage discounts.

You also might be able to get discounts for behaviors that cut costs for the insurer—by going paperless, for example, using automated payments, or paying premiums annually instead of two or more times a year.

All discounts are not created equal: Some provide a larger price cut than others, so it can help to look at the bottom line. The amount you can save also may vary by company and location, and the options can change from year to year.

Which is another reason it can be a good idea to check car insurance rates regularly.

Explore Bundling

Another way to get a price break can be to “bundle” your insurance coverage with one insurer. That might mean purchasing your homeowners (or renters) insurance and car insurance from one company, or using one company for both your car and boat insurance.

You also might get a reduction if you are insuring more than one vehicle.

Bundling can result in a substantial discount. Still, you may wish to get separate policy quotes as well, just to be sure you’re really saving money and getting exactly what you want.

Consider a Higher Deductible

Choosing a higher deductible can significantly reduce your premium. (Your deductible is the amount you’ll pay out of pocket before your insurance company pays the rest of a claim.)

According to the Insurance Information Institute, increasing your deductible from $200 to $500 could cut the cost of collision and comprehensive coverage by 15% to 30%. And going even higher, to $1,000, could save you 40% or more, the insurance industry association says.

Of course, there’s a catch: If you have an accident, you may end up having to fork over a larger chunk of money than you’re comfortable with before the insurance company kicks in its share on a claim.

Before you go for the savings, you may want to be sure you can afford an unexpected repair bill.

Review Coverage Needs

If you have a car that’s getting older, it might be time to reevaluate the coverage you’re carrying on it.

You may decide to drop your comprehensive coverage (the portion that helps pay to replace or repair your vehicle if it’s stolen or damaged in an incident that’s not a collision) or collision coverage, for example, or lower the amount of those coverages.

Keep in mind, though, that if you do give up this coverage, you may have to pay to repair or replace your vehicle if it’s damaged. So it’s important to balance today’s savings with tomorrow’s what-ifs.

As you make your decisions, you’ll have to keep any coverage that’s required by the laws in your state and by your lender (if you’re still paying for the car) or a lease agreement.

Before Buying a Car, Consider Insurance Costs

Some cars cost more to insure than others, so before you save up for a car, you may want to check out how buying a car (used or new) might affect your premiums.

Insurance companies base their prices, in part, on a car’s sticker price, its safety record, what it might cost to repair it, its engine size, and the chance that the car will be stolen.

You may have heard that color is also a factor—and that a red car can cost more to insure—but according to the Insurance Information Institute, that is a myth. You can, however, expect a powerful sports car to kick up your costs.

Improve Your Driving Record, If Needed

This one’s pretty basic: A person with a bad driving history—with multiple accidents, insurance claims, and/or traffic violations—can expect to pay more for car insurance than someone with a good record.

If you aren’t sure where you stand, or you think there might be an error on your record, you can get a copy of your motor vehicle report through your state’s department of motor vehicles or the agency that handles driver’s licenses.

Improve Your Credit, If Necessary

You probably already knew that maintaining a good credit record can save you money in many ways—and you can include lower car insurance premiums on that list.

Just how much a solid credit score can save you may depend on the insurance company and the state you live in. But you can expect your credit data to play some part in your provider’s underwriting decisions.

The good news is, there are steps you can take to build credit fast, including disputing any errors on your credit reports and paying your bills on time.

Recommended: Pros & Cons of Car Refinancing

Ask About Group Insurance

Some companies and other organizations offer group plans with lower rates for their employees or members. Your human resources department can fill you in on what’s available through your employer.

If you’re a member of a large organization, you may receive insurance offers in the mail or by email, or you can inquire with the main office.

The Takeaway

Wondering how to lower your car insurance? A good starting point on the road to cheaper car insurance can be to compare your current policy to offers from other insurance companies.

Try an apples-to-apples comparison of your existing policy to others to find the best deal, and if you like your quote, buy the policy right then and there.

Get started with SoFi Protect today.

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

¹SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. Vehicle Identification Number is confirmed by LexisNexis and car values are provided by J.D. Power. Auto Tracker is provided on an “as-is, as-available” basis with all faults and defects, with no warranty, express or implied. The values shown on this page are a rough estimate based on your car’s year, make, and model, but don’t take into account things such as your mileage, accident history, or car condition.

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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Jun

2023

What’s the Difference Between Income and Net Worth?

By Sarah Li Cain | Budgeting & Goals, relay | Comments Off

Put simply, income is the amount you earn whereas net worth is the total value of your assets minus any debt. When it comes to measuring your financial health, income isn’t the metric that matters. Sure, you want to know whether your income will help you reach your goals, but looking at your net worth is a better measure of your overall wealth.

That being said, it’s important to understand how both play into your finances, so let’s take a look at net worth vs income and how they factor into your financial health.

Table of Contents

Income vs Net Worth: Two Measurements of Wealth
How to Calculate Income
How to Calculate Net Worth
Ways to Improve Your Net Worth
The Takeaway

Key Points

• Income refers to earnings from various sources like wages and dividends, whereas net worth is assets minus debts.

• Net worth provides a more comprehensive measure of financial health than income alone.

• Increasing income and managing debts effectively can boost net worth over time.

• Assets can include savings, real estate, and investments; liabilities might consist of loans and credit balances.

• Regularly tracking both income and net worth is crucial for achieving financial goals.

Income vs Net Worth: Two Measurements of Wealth

Both income and net worth can help measure the chances of someone creating wealth. However, the difference is that income is the primary way someone generates wealth, whereas net worth measures your level of wealth. To put it another way, income is how you make money, but it doesn’t necessarily lead to creating wealth.

Instead, looking at your net worth allows you to see the value of all your assets and liabilities at a specific point in time. It gives you a sense of your financial health in terms of whether you own more assets — such as your home, investments and cash — than liabilities (any money you owe, like credit card debt). Your net worth also allows you to see how much of your wealth is held in assets or cash. And it offers a reference point to help you measure your progress toward your financial goals.

Recommended: Should I Sell My House Now or Wait?

Is Net Worth More Important Than Income?

While income is a key aspect of your finances, net worth typically is more important. That’s because even if you have a large income, it doesn’t guarantee that you’ll generate more wealth than someone else who may have a slightly lower one. Sure, having a larger income can help you build wealth faster, but it’s all in how you handle your finances, such as the amount of money you save.

Let’s say your friend makes $100,000 per year but has a lot of debt, leading their net worth to be $15,000. On the other hand, you make $70,000 but have invested over 10 years, to the point where your net worth is $100,000. You have more wealth, and therefore, are more likely to be financially stable than your friend.

Another instance where income doesn’t correlate with wealth is when someone is older and getting ready to retire. Their income may be lower because they’re working part-time, but their wealth could be in the millions because they’ve worked for many years.

All this to say, income is important but only as important as how you use it to reach your financial goals.

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How to Calculate Income

Calculating your income doesn’t simply mean looking at the number on your paycheck. You’ll also want to factor in other sources of income, such as any government benefits, commissions, tips and dividends. Don’t forget to include irregular or occasional income sources like cash gifts, inheritances and even tax refunds.

Make sure that when you add these up, it’s your net income and not gross income, as that will give you a more accurate picture of what you’re bringing in. Gross income is pre-tax money and before deductions are taken out. Net income, on the other hand, is income that has taxes and deductions taken out.

Example of Calculating Income

Let’s say you have a day job that offers bonuses and commissions. You also invest in securities that provide dividends.

Here’s how you would calculate your income:

• Annual net salary: $64,350

• Annual commissions: $3,500

• Annual bonus: $2,000

• Annual dividends: $3,234

TOTAL INCOME: $73,084

You can then use this total to calculate monthly and weekly income — in this case, it’s $6,090.33 per month and $1,405.46 per week.

How to Calculate Net Worth

Calculating your net worth involves creating a net worth statement so you can see a snapshot of your assets and liabilities.

Start by looking at your assets and determining the total amount of all accounts under this category. Assets are items that have some sort of monetary value. These include:

• Checking accounts

• Savings Accounts

• Your home

• Real estate

• Retirement fund

• Personal property (such as your vehicle)

• Pension equity

• Securities (like stocks and bonds)

• Life insurance policy

• Profit-sharing equity

Once you’ve calculated all of your assets, you’ll need to calculate the total amount of your liabilities. Liabilities are any debts or financial obligations you have, including:

• Mortgage

• Credit card balance

• Personal loans

• Auto loans

• Student loans

• Unpaid medical and dental bills

• Home equity loans

• Money you owe to family and friends

• Unpaid taxes

After totaling up your assets and liabilities, subtract the latter from the former. This number will be your net worth. If your liabilities are greater than your assets, you’ll have a negative net worth. The more assets you have than liabilities, the higher your net worth will be.

Example of Calculating Net Worth

As an example, let’s say that Barbara decided to calculate her net worth. First, she’d list out her assets and liabilities:

ASSETS

Checking accounts	$600
Savings accounts	$10,000
Home	$365,000
401(k) balance	$24,399
Vehicle (current value)	$32,590
Brokerage account	$12,000
TOTAL:	$444,589

LIABILITIES

Mortgage	$200,000
Car loan	$29,251
Credit card	$4,126
Student loans	$36,700
Personal loans	$13,857
Unpaid medical bill	$300
TOTAL:	$284,234

Once she’d written that all out, she would be able to calculate her net worth using the following formula:

Total assets – total liabilities = net worth

$444,589 – $284,234 = $160,355

Barbara has a positive net worth of $160,355.

Ways to Improve Your Net Worth

Ideally, you’ll have a positive net worth that keeps growing over time. Here are several ways to improve your net worth.

1. Keep Track of Your Assets and Debt

Tracking your assets and debt will give you an accurate picture of where you stand. That way, you’ll be able to see your progress and what you need to improve or keep doing to grow your net worth. For instance, if you notice that your debt keeps growing, you can use this information to help you figure out why and take steps to rectify the situation.

2. Pay Off Debt

The fewer liabilities you have, the more your net worth will grow. To improve your net worth, you can focus on making sure you’re making on-time payments and avoid taking out new loans if possible. If your budget allows, consider making extra payments toward loans to pay off your debt faster. Some loans, like mortgages, may have prepayment penalties, so check with your lender before sending that extra check.

3. Increase Your Income

Getting a higher salary will help you build wealth by paying off debt or putting money toward investment accounts. Ideally, you want to increase your income and pay off your debts as soon as you can. To increase income, you can consider negotiating for more in your current job, looking for a new one, or starting a side hustle to help you make more.

4. Invest

Sticking your cash in a savings or checking account can only get you so far. To accelerate your wealth-building journey, you’ll need to invest some of your money.

Start investing by contributing to your employer-sponsored account (bonus if they offer a match), and then branch out to other products as you see fit.

The Takeaway

Your net worth is a snapshot of your finances at a specific point in time and will fluctuate. It’s a good measure to see whether you’re on track with your financial goals. The more you track your assets and liabilities, increase your income, and decrease your debt, the more your net worth will grow.

A money tracker tool like SoFi’s can make it easy to keep track of all of this, with a bird’s-eye view of your account balances and tools to track your spending.

Find out where your finances stand.

Photo credit: iStock/GOCMEN

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SORL0523020

How to Make a Will: 7 Steps

What Is a Will?

Dying Without a Will

How To Create a Will

1. Choosing How You’ll Create Your Will

2. Making a List of Your Assets

Get up to $300 when you bank with SoFi.

3. Being Specific About Who Gets What

4. Considering Guardianship

5. Choosing an Executor

6. Signing Your Will and Storing it in a Safe Place

7. Updating Your Will as Appropriate

The Takeaway

How to Save Money From Your Salary

Taking Advantage of the Employer Match

Preparing a Budget and Following It

Automating Your Savings and Payments

The Takeaway

Top 10 Fun Things to Do When Visiting Philadelphia

Best Times to Go to Philadelphia

Bad Times to Go to Philadelphia

Average Cost of a Philadelphia Vacation

10 Fun Must-Dos in Philadelphia

1. Check out the Liberty Bell

2. Immerse Yourself in History at Independence Hall

3. Chow Down on a Cheesesteak

4. Wander Through Philadelphia’s Magic Gardens

5. Run up the ‘Rocky’ Steps

6. Explore the Philadelphia Museum of Art

7. Visit the Barnes Foundation

8. Tour Reading Terminal Market

9. Snap Selfies at the Love Sculpture

10. View the Delaware River Waterfront

The Takeaway

FAQ

What are things to do in Philadelphia for free?

What is Philadelphia most popular for?

How can I spend a day in Philadelphia?

How to Lower Car Insurance & Save Money

How to Get Cheaper Car Insurance

Discover real-time vehicle values with Auto Tracker.¹

Now you can instantly monitor vehicle prices in this unprecedented market—to help you make smart money moves.

Shop Around and Get Some Quotes

Look for Discounts

Explore Bundling

Consider a Higher Deductible

Review Coverage Needs

Before Buying a Car, Consider Insurance Costs

Improve Your Driving Record, If Needed

Improve Your Credit, If Necessary

Ask About Group Insurance

The Takeaway

What’s the Difference Between Income and Net Worth?

Income vs Net Worth: Two Measurements of Wealth

Is Net Worth More Important Than Income?

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*

How to Calculate Income

Example of Calculating Income

How to Calculate Net Worth

Example of Calculating Net Worth

Ways to Improve Your Net Worth

1. Keep Track of Your Assets and Debt

2. Pay Off Debt

3. Increase Your Income

4. Invest

The Takeaway

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