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A bathroom renovation can add beauty to your home and boost its value. If you have a small bathroom, you’ll want a remodel that makes the most out of the space.

Fortunately, there are lots of interior design tricks to make a tiny bathroom feel like a spa getaway.

But even a small-bathroom remodel can cost big bucks. Here are some tips on how to redo the loo without taking a bath on the investment.

Basics of Remodeling a Small Bathroom

Here are some things to consider when remodeling a small bathroom:

•   Bathtub. Installing a new bathtub typically costs about $7,000, HomeAdvisor says, although the price tag can run the gamut.

•   Sinks. Ditto on price. There’s a vast difference between a porcelain pedestal sink and a unit with a marble countertop.

•   Toilet. There are several types: one-piece, two-piece, in-wall, high-tank, and integrated toilets (with bidet). A two-piece toilet may cost $100 to $300. The labor cost for any toilet ranges from $100 for a simple installation to several hundred for a wall-hung toilet, which must connect to the studs.

•   Tile. Bathroom tiles for the floor and walls come in a wide range of materials, colors, and styles. Classic ceramic subway tiles run about $2 per square foot, while marble tiles cost around $6 to $9 per square foot.

•   Fixtures and hardware. Faucets, shower knobs, lighting, and towel racks can be an inexpensive way to spruce up your bathroom if you stick to mid-priced materials.

•   Storage. Cabinets and shelves add stylish functionality to a small bathroom.

•   Length of the project. A bathroom renovation can take weeks. If you have a second bathroom, great. Otherwise, you may need to seek temporary accommodations or plan a vacation.

•   Labor. Labor costs can eat up the majority of any small-bathroom remodel. The more you can DIY, the more you’ll save.

Average Cost of a Small-Bathroom Remodel

Whether you’re a first-time homebuyer — generally defined as anyone who has not owned a principal residence in the past three years — or an existing homeowner, you might be interested in a low-budget small-bathroom remodel.

What constitutes “small”? A small bathroom typically measures around 40 square feet. A half-bath with only a shower can be 20 square feet or less.

What constitutes low budget? For low-end fixtures with DIY labor, expect to pay about $70 per square foot (vs. $250 per square foot for high-end fixtures installed by a contractor), according to HomeAdvisor.

You probably didn’t ask yourself How much does it cost to remodel a small bathroom? when you were plugging numbers into a home affordability calculator, and in any case, the answer isn’t clear cut.

The average cost of a small-bathroom remodel is $6,500, according to HomeAdvisor, but depending on the quality of materials and need for installation, the cost can range from $1,500 to $15,000.

Professional labor can cost around $50 to $110 an hour. Tile installation and plumbing generally rack up the most work hours.

Recommended: How to Find a Contractor

Is Removing a Tub a Good or Bad Idea?

Bathtubs tend to take up a lot of space. When remodeling a small bathroom, you may be tempted to remove yours and replace it with a walk-in shower.

But most people love a long soak in a hot bath. Whether you’re planning to put your home on the market within a few years or you need to sell your house fast, removing your bathtub may reduce your buyer pool, especially if you only have one in the house.

10 Low-Cost Ways to Remodel a Small Bathroom

If you don’t have the financial means or the DIY know-how to do a gut renovation, there are more affordable ways to transform your bathroom and make it feel like new.

1. Salvage the Bathtub

A small-bathroom remodel with tub replacement can really inflate your costs. For around $300 to $600, you can have an old tub reglazed or refinished and put the savings toward some rubber duckies.

2. Tilt Toward Reasonable and Limited Tile

Tile can be another high-ticket item when it comes to a bathroom remodel. Luckily your bathroom is small. To save money, consider lower-cost porcelain and ceramic tile. You can also create a tile wall accent rather than full-on tile.

You might want to tile either your floor or walls but not both. Peel-and-stick tiles (often vinyl) can be a budget-friendly option for flooring.

3. Refresh With Light Paint Colors

A fresh paint job is a surefire way to revitalize any space, and the cost to paint may be the lowest among ways to transform a room. Light colors will make a small room feel larger.

To create the illusion of more space, match the wall color with the floor tiles and go with white for the ceiling. Light, continuous color from floor to ceiling will help elongate the room.

4. Upgrade the Showerhead

Don’t have the means to totally redo your shower? A high-quality showerhead can add a new and luxurious experience to your bathroom. Rain showerheads start at a few hundred dollars.

5. Replace Light Fixtures

Swapping out old fixtures for new ones can do a lot for an outdated bathroom. Many affordable bathroom light fixtures are available at home improvement stores, or you could consider recessed lighting.

6. Add Shelves and Storage

To lend a sense of height to your small bathroom, try adding an open shelving unit above the toilet for extra storage space. Decorate with photos, candles, and bottles of colorful bath salts.

7. Make Accessories Sing

Perk up your tired bathroom with a new shower curtain, fluffy hand towels, and a plush bath mat. A pop of color against a newly white-tiled wall can make a big splash.

8. Consider Sliding Shower Doors

Shower doors that open on hinges can take up a lot of space in a small bathroom. For around $100 to $300, you could buy a sliding glass door unit. You’ll pay an additional $200 to $300 for installation.

9. Add a Mod Mirror, Mirror on the Wall

A large, long mirror that stretches over the sink area can add the illusion of more space and help brighten the room with reflective light. Home improvement stores offer reasonably priced bathroom mirrors, including ones with cabinets for extra storage.

10. Pedestal Sink vs Vanity?

While a pedestal sink can create a sense of space, it can also come with a higher price tag than a vanity sink because drain pipes and water supply lines have to be obscured. A vanity also provides storage.

Ways to Finance a Small-Bathroom Remodel

When the budget for your small-bathroom remodel exceeds the amount in your piggy bank, there are several financing options.

Credit Cards

Slapping down a credit card is an easy way to finance your small-bathroom renovation. If you have a 0% interest card, it can be a smart way as well, plus you could earn travel or other bonus points.

But if you have a high-interest card, or don’t think you’ll be able to pay off the debt before that 0% jumps to 21%, that could spell trouble. You could end up paying a lot more for your new tub in interest charges, and could hurt your credit if you can’t make a payment.

Personal Loan

A personal loan for a small-bathroom redo can be a good option.

With a home improvement loan, you’ll receive a lump sum from a financial institution and repay it with interest in monthly installments. These loans typically offer same-day funding with no collateral required.

Approval and the rate offered are based on creditworthiness and other personal financial factors.

HELOC

If you own your home and have sufficient home equity, you may be able to qualify for a home equity line of credit (HELOC), using your home as collateral.

A HELOC rate is usually lower than that of a credit card or personal loan. You only make payments on what you spend, and the borrowing limit can be higher than with a credit card or personal loan.

Most HELOCs have a variable rate. There may be minimal withdrawal requirements, plus fees and closing costs. If you default on a HELOC, you risk losing your house.

The Takeaway

A small-bathroom remodel can pack a big punch and raise your home’s value. Focus on a few key upgrades and design elements to make a small bathroom more inviting.

How to finance a bathroom redo? SoFi offers home improvement loans for $5,000 to $100,000. The loans come with a fixed rate, absolutely no fees, and fast funding.

With a HELOC brokered by SoFi, you can access up to 95%, or $500,000, of your home equity to remodel a bathroom or any other area of your home.

FAQ

How can I cheaply renovate a small bathroom?

Doing it yourself will save the most money. Ideas include refreshed paint, an interesting shower curtain and fluffy towels, and new lights, shelves, and new hardware. It’s a good idea to leave plumbing and wiring issues to a pro.

How much is a small-bathroom remodel?

The average cost to remodel a small bathroom is $6,500, according to HomeAdvisor. That said, the price point can vary widely based on your tastes and the extent of the project. And the one constant with any remodeling project is that you will spend more than you planned.

How much does it cost to DIY a small bathroom?

A DIY reno of a 40-square-foot bathroom could cost about $4,000, HGTV notes. Add a 30% overage allowance for a realistic budget of $5,200.

What is the best way to remodel a small bathroom?

Start with a list of must-haves and nice-to-haves. Read up on types of toilets (it’s true, the unsung toilet comes in many varieties), sink fixtures, and lighting. That will help inform your budget and whether you need to hire a contractor.

Photo credit: iStock/Drazen_

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

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

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

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

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Long-term personal loans can be an attractive option if you’re facing large expenses like medical bills or home repairs. By spreading out repayment over a longer period of time, long-term loans may allow for lower monthly payment amounts that can make major costs more affordable.

However, long-term loans can have drawbacks, too. They may have higher cumulative interest than short-term loans and can be difficult to qualify for since they’re often unsecured.

Here’s what you need to know if you’re deciding whether or not a long-term, unsecured personal loan is right for you:

What Is a Long-Term Loan?

As its name suggests, a long-term loan is one whose repayment period, or term, is fairly lengthy. Generally, long-term personal loans carry terms between 60 and 84 months, or five to seven years.

Mortgages and private student loans are also examples of long-term loans. Mortgages, for instance, are frequently repaid over as many as 30 years.

For the purposes of this article, we’re talking about long-term, unsecured personal loans, which borrowers can use for a variety of things. These loans can allow consumers to make big purchases or pay expensive bills by paying the total off over several years’ time.


💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.

Benefits of Long-Term Personal Loans

There are plenty of reasons why a long-term loan might be a worthy consideration for large expenses.

Large Loan Amounts

While short-term loans and credit cards may cap out at a few thousand dollars, long-term, unsecured personal loans are available at much higher amounts — up to as much as $100,000.

So depending on what you need the money for, a long-term personal loan might give you more leverage than other types of funding.

Affordable Monthly Payments

Since long-term personal loans are paid off over many months, the monthly payments are often lower than they would be with a shorter-term loan.

However, that doesn’t mean a long-term loan is less expensive in the long run.

Flexibility

Unlike secured loans, which are tied to a physical piece of collateral or the need to be used for a specified purpose, unsecured personal loans can be taken out for a wide range of intended purposes. Common reasons borrowers take out personal loans include:

• Home renovations or repairs.

• Medical expenses.

• Wedding loans or funeral expenses.

• Debt consolidation.

Affordable Monthly Payments

Since long-term personal loans are paid off over many months, the monthly payments are often lower than they would be with a shorter-term loan.

However, that doesn’t mean a long-term loan is less expensive in the long run.

Drawbacks of Long-Term Personal Loans

There are also some drawbacks worth considering before you apply for an unsecured personal loan.

Potentially Higher Interest Rates

Although long-term, unsecured personal loans may have smaller monthly payments, they may carry higher interest rates than shorter-term, unsecured personal loans. And even at the same interest rate, they cost more over time.

Personal loan interest rates can range from as little as 6.99% to as much as 35.99% APR.

For example, imagine you take out a $10,000 loan at an interest rate of 10%. To repay the loan in a single year, you’d have to pay a whopping $879 per month, but you’d only pay a total of $550 in interest over the lifetime of the loan.

To repay the loan in seven years, you’d pay only $166 per month, but you’d also pay $3,945 in interest along the way.

So while long-term, unsecured personal loans can make large purchases feasible, factoring in the total cost over the lifetime of the loan before you sign those papers is also important.

Long-Term Debt

Along with higher interest rates, long-term loans do, obviously, mean going into debt for a longer period of time — unless you plan to pay off your loan early. A thorough review of the loan agreement will disclose prepayment penalties or other fees that can be costly in their own right.

Furthermore, the future is unpredictable. Five to seven years down the line, that promotion you were counting on might fall through or another life circumstance might supersede your repayment plans.

If you find yourself in a situation where you need to borrow more cash, it can be difficult to increase your personal loan amount.

Although unsecured personal loans can be helpful when life throws big expenses your way, they’re still a form of consumer debt, and, ideally, minimizing debt is a smart thing to do.

Qualification Difficulties

Long-term, unsecured personal loans may have more stringent qualification requirements than other types of credit. That’s because, from the lender’s perspective, they’re riskier than loans for smaller amounts or those that come attached to physical collateral.

Along with your credit score and history, a potential lender might also require proof of income and employment or a certain debt-to-income ratio. Depending on the stability of your financial situation, you may or may not qualify for the best interest rates and terms or be considered eligible to take out the loan at all, at least without a cosigner or co-borrower.


💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

Alternatives to Long-Term Loans

Ideally, the best way to pay for a large purchase is to save up the cash and pay for it without going into debt at all. Of course, this may not always be possible or realistic.

If you’re not sure about taking out a long-term, unsecured personal loan, there are other alternatives to consider. However, each of these comes with its own risk-to-reward ratio as well.

You might consider borrowing money from friends and family, but those important relationships can suffer if your repayment doesn’t go as planned. A written repayment agreement can go a long way toward making the transaction as transparent as possible, with expectations of both parties clearly outlined.

Another option might be saving part of the money you need and applying for a short-term, unsecured personal loan for the remainder. This means delaying a purchase until savings can accumulate, and might not work if the money is needed sooner rather than later.

The Takeaway

Long-term loans are those whose repayment periods generally span between five and seven years, which can help borrowers fund expensive purchases while making affordable monthly payments.

However, the longer-term can also mean more interest charges over time, making these unsecured personal loans more expensive relative to shorter-term lending options. And like any form of consumer debt, they carry risk.

Your credit score and/or financial situation can suffer if you find yourself unable to repay the personal loan.

That said, when used responsibly, long-term, unsecured personal loans can be a smart financial choice, particularly if you shop around for a lender who offers affordable, fixed interest rates, low fees, and great customer service to ensure you’ll always be in the know and in control.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

Photo credit: iStock/Melpomenem

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

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

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When you’re shopping for car insurance in Arizona, it can help to know the average cost of coverage. That way, you can compare the figure to the quotes you’re receiving.

Of course, a number of factors can influence how much you pay for car insurance. Besides geography, insurers may consider your driving record, age, gender, credit score, car type, and level of coverage. Rates can also vary by insurance company, which is why it makes sense to shop around.

Here’s a look at the average cost of car insurance in Arizona and how different factors may impact how much drivers there pay for protection.

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How Much Does Car Insurance Cost in Arizona?

Drivers in Arizona pay an average of $1,516 per year for car insurance coverage, according to a 2023 U.S. News & World Report analysis of cheap car insurance companies. This is higher than the national average of $1,442 per year.

Average Car Insurance Cost in Arizona Per Month

The average monthly cost of car insurance in Arizona is $126. That’s slightly higher than the national monthly average of $120.17. As the chart below shows, the amount you pay can vary by insurer.

Source: U.S. News & World Report

Average Car Insurance Cost in Arizona By City

Where you live can impact how much you’ll pay for car insurance. That’s because when determining how much to charge for coverage, insurers often take into account local rates of traffic, accidents and crime. As a general rule, people living in cities tend to pay more for car insurance than those living in small towns or rural areas. And as the chart below shows, that amount can also fluctuate depending on which city you call home. Here are estimates for five of the biggest cities in Arizona:

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Source: Insure.com

Average Car Insurance Cost in Arizona By the Age and Gender of the Driver

Your age can impact premium prices. In general, younger, newer drivers tend to pay higher premiums because they tend to have more accidents than older, more experienced drivers. Gender can play a role in costs, too. Women often pay lower premiums than men because they tend to get into fewer severe accidents.

Recommended: How Much Does Insurance Go Up After an Accident?

Source: Insure.com

Related: Insurance Tips for First-Time Drivers

Average Car Insurance Rates After an At-Fault Accident

Your driving record matters, and car insurance rates can go up after an accident or traffic violation. For example, drivers in Arizona with one accident on their record pay an average rate of $2,170 per year for coverage, or $654 more than the state average. One speeding ticket can boost a driver’s average annual rate to $1,859, or $343 higher than the state average. And one driving under the influence (DUI) offense may raise the average annual rate to $2,174, or $658 higher than the state average.

Related: Auto Insurance Terms, Explained

Average Car Insurance Costs for Good and Bad Credit

Some states prohibit insurance companies from pulling your credit report, but it’s allowed in Arizona — and the results could impact how much your coverage costs. Drivers with bad credit could end up paying hundreds more per year for car insurance. An analysis from MoneyGeek found that drivers with poor credit pay an average of $2,495 per year for insurance, while those with good credit pay around $1,274.

What Else Affects Your Car Insurance Cost?

Let’s look at other factors that can impact how much someone pays for car insurance.

Insurance History

Drivers who allow their coverage to lapse may be more likely to cancel their policy, so having a reliable history with one insurer may qualify you for a lower rate. In fact, it’s possible you’ll get a better quote when switching car insurance carriers than if you purchased insurance after going a few years without it.

Make and Model of the Car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage. However, if you have a newer car that’s equipped with more safety features, you may be eligible for a lower rate.

Marital Status

Married drivers may qualify for more discounts than single drivers, since insurers often place them in a different risk category.

Recommended: How to Lower Car Insurance

Amount of Coverage

How much car insurance do you need? The answer depends on a number of factors, including your state’s minimum car insurance requirements, your budget, and your lifestyle. As a rule of thumb, the more coverage you have, the more expensive your policy will likely be.

Recommended: How to Get Car Insurance

How to Get Affordable Car Insurance

The cost of coverage varies by insurer. To find affordable car insurance, it’s a good idea to shop around and compare quotes. But first, you’ll want to figure out how much car insurance you need. Keep in mind your state’s minimum car insurance requirements as well as additional coverage you may need.

Looking to lower your car insurance? There are several strategies to consider. You may want to explore different policy options; look for bundling opportunities, such as getting your home and auto insurance from the same company; ask about possible discounts: and consider whether a policy with a higher deductible makes sense for you.

The Takeaway

Drivers in Arizona pay an average of $1,516 per year for car insurance, which is slightly higher than the national average of $1,442 per year. But as in most states, the amount you pay in Arizona can depend on a wide range of factors, such as your age, gender, driving record, credit score, and even where you live. You can search online insurance companies and compare multiple car insurance rates.

Feeling uncertain about how much auto insurance you really need or what kind of premium you might have to pay to get what you want? Check out SoFi’s online auto insurance recommendations.

The better you drive, the more you can save.

FAQ

How much is full coverage car insurance in Arizona?

The average cost of car insurance is $1,516 annually, which breaks down to $126 monthly. Your costs may be different, depending on your age, gender, driving record, credit scores, the city or town you live in, and more.

Is $300 per month a lot for car insurance in Arizona?

In many cases, the average monthly cost for coverage is below $300. But premium amounts vary based on a number of factors. An 18-year-old male driver, for example, could very well pay more than $300 per month because of his age and lack of driving experience.

How much car insurance should I have in Arizona?

Arizona requires the following minimum coverage limits: $25,000 for one person who sustains injury or death in an accident; $50,000 for two or more people sustaining injury or death; and $15,000 for property damage (other people’s). You can have more than that amount but not less.

Photo credit: iStock/twildlife

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.

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.

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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The average natural gas bill in the United States is $65 to $70 per month. Your monthly gas bills could vary significantly, depending on the time of year, where you live, the size of your home, and other factors.

Read on for a breakdown of what can cause your gas bill to go up and down from one month to the next, how to budget for those price changes, and how you might be able to lower your costs in the future.

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How Much Does a Gas Bill Cost Per Month on Average?

The average cost of gas per month in the U.S. has hovered around $60 in recent years. Your household’s cost could be much lower or higher, depending on your location, the appliances you use, inflation, and the ever-fluctuating cost of natural gas. Your bill might be much higher, for example, than that of a friend who has the same size house in a state with a warmer climate. And it could be less than what your next door neighbor pays, if your home is smaller or more energy efficient.

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Why Is My Gas Bill Higher than Usual?

If your gas bill seems higher than usual, it could be that your provider is charging a higher rate. (You can check that by comparing two or more months’ worth of gas bills, or credit card statements if that’s how you pay your bills.) It could also be that you’re simply using more gas because it’s colder outside. Or maybe you’ve been taking more hot showers or running the dishwasher, clothes dryer, or gas fireplace more often. Working from home is a common reason that utility bills are sometimes higher.

If you can’t come up with a reasonable answer for the cost increase, you may want to talk to your gas provider or check your statement to see if your usage is up. But be prepared: The calculations that go into determining your monthly gas bill can be complicated.

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Understanding the Monthly Cost of Gas

In the U.S., natural gas can be priced in a few different ways, including dollars per therm, dollars per British thermal unit (BTU), and dollars per cubic foot.

Here’s what you really need to know: According to the U.S. Energy Information Administration, the price residential customers pay for natural gas is determined by two major factors:

•   Commodity Cost: The actual cost of the gas.

•   Transmission and Distribution Costs: The costs involved with moving the natural gas from where it’s produced or stored to a local natural gas distribution utility, plus whatever it costs to deliver the gas to customers.

If you live in a state with easy access to residential gas (Alaska, Utah, Washington, Colorado), the monthly rate you pay may be lower than if your utility has to transport the gas a long distance to reach you (in say, Hawaii or Georgia).

The price you ultimately pay for natural gas in your state, city, or subdivision also may be affected by state regulations, taxes and other charges, availability, seasonal consumer demand, and the amount of competition in your location. (By the way, there’s no relation between the cost of natural gas and the price of gasoline.)

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Average Gas Bill Based on Household Size

Knowing the natural gas rates in your area can help you understand why your bills might be higher or lower than you expected. But the size of your home and the number of people who live there can also influence your average monthly gas bill. Keeping these things in mind can help you predict your gas usage when you make a budget.

Here’s a rough estimate of what the average monthly cost of gas could be for various household sizes, according to ElectricRate.com:

Remember that your costs may be much different depending on how many gas appliances you have in your home, how warm you keep your home in the winter, what you keep the temperature set to on your water heater, and other factors.

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What Uses the Most Gas in a Home?

The top uses for natural gas in U.S. households are heating and water heating. But many homes also use gas for cooking, indoor or outdoor fireplace, clothes dryer, or heating a pool.

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How Can I Lower My Gas Bill?

There are several steps you can take to lower your natural gas bill. (You may be interested in lowering your other gas bill, too.)

Get a Home Energy Assessment

A professional home energy auditor looks at your past bills for information about your energy use, and inspects your home to pinpoint problem areas and offer money-saving suggestions. Your gas company may offer assessments to its customers, or you may be able to get help finding an energy audit program through your state or local government.

Balance Costs Across the Year

If your local utility offers a yearly budget plan, you may be able to spread out your costs so that your bill is roughly the same amount each month. This can keep bills from becoming overwhelming in months when you use more gas. Or you can use a money tracker app to determine your average monthly cost of gas and set aside the appropriate amount.

Lower Your Water Heater Temperature

When was the last time you even looked at your water heater? Lowering the temperature to 120 degrees can help you save money, prevent family members from accidentally scalding themselves, and protect your pipes. You can also purchase a special blanket or “jacket” to insulate your water heater and make it more efficient.

Look for Leaks

If your doors and windows are getting older, check whether cold air is coming in and warm air escaping. Clear plastic film or weather stripping may be all you need to fix the problem.

Lower the Thermostat

The U.S. Department of Energy recommends setting your thermostat at 68 degrees when you’re home during the winter, and turning it down a few degrees more when you’re away. If you keep pretty standard hours, a programmable thermostat can ensure the house is comfortable when you get home from school or work. And if you work from home, you can lower the temp when you go to bed, or pull on a sweater during the day.

Assistance Programs to Help with Your Gas Bill

If you’re struggling to pay your gas bill, you may be able to get some help from a federal, state, or local government assistance program or from a nonprofit agency. Here are a few options to consider:

Weatherization Assistance Program

The U.S. Department of Energy’s Weatherization Assistance Program (WAP) helps low-income households reduce their energy costs. Program grants, which are administered on the state and local level, provide funding for home improvements designed to increase energy efficiency. For more information about the program and how to apply, check out the WAP website.

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Low Income Home Energy Assistance Program

The Low Income Home Energy Assistance Program (LIHEAP), operated through the U.S. Department of Health and Human Services, was created to help low-income households pay high home energy bills. Each state has its own rules regarding who is eligible for help and when and how to apply. (Assistance isn’t made directly to households.) For more information, go to the LIHEAP website or call 202-401-9351.

Local Utility Company Programs

Some utility companies offer limited bill-paying assistance programs on their own or working alongside state agencies or nonprofit organizations. Check your local gas company’s website to see if they offer help, or try giving them a call. Your gas company may take special circumstances into consideration when it comes to paying your bill.

SoCalGas, for example, offers past-due bill forgiveness, discounted rates, and extended payment dates for certain qualifying customers. The utility also works with the United Way of Greater Los Angeles to provide one-time grants through their Gas Assistance Fund.

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The Takeaway

The average cost of gas per month is $65 to $70. The location, size, and age of your home — and, of course, the time of year — can affect your gas bill from one month to the next. So can the number of people in your household and the appliances you use. The rate you pay each month for gas may also fluctuate based on factors over which you have no control. All those things combined can make budgeting for your monthly gas bill a challenge.

How can SoFi help? With SoFi, you’ll get a free budget app that helps you manage where your money is going. You can set up budget categories (including your gas costs), spot upcoming bills, and easily make adjustments as necessary. And it’s free!

Track all of your accounts in one place, and get free credit score monitoring.

FAQ

How much does the average person pay for gas each month?

The average household pays about $60 to $65 per month for natural gas. Your bill could vary significantly, however, based on location, home size, number of residents, your appliances, whether you work from home, and more.

How much should you budget for gas a month?

One way to determine how much to budget for gas each month is to track your spending, then calculate the average monthly amount based on past bills. You may want to budget an amount that’s a bit higher than in the past, just in case the winter is especially cold or gas rates go up. (If you don’t end up needing the extra funds, you can put the money toward your emergency fund or another bill.)

What’s the average price of natural gas in San Francisco?

According to UtilitiesLocal.com, residential natural gas prices in San Francisco rose slowly but significantly from September 2021 to September 2022. Rates increased by approximately 34% year over year.

Photo credit: iStock/baona

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

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

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

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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P2P payments, aka peer-to-peer transfers, are a great way to use digital technology to send money to other people or receive funds from them. With a money transfer app or perhaps one from your financial institution, you can send a friend your half of the dinner bill, gas money, or other payments, quickly and easily from your mobile device. Chances are, you can also buy items (say, on Instagram or a website) using one of these apps.

To move money via P2P, all you need to do is to download one of the transfer apps, like Venmo or PayPal, and connect your bank account, debit card, or credit card to it. Or your financial institution may offer their own app that you could enable. Either way, once you are set up, you are just a few clicks away from being able to send money.

Here’s a closer look at exactly how these apps work, including:

•   What is a P2P money transfer?

•   How does a P2P payment work?

•   How long does a P2P transfer take?

•   Are P2P payments safe?

•   What are some alternatives to P2P payments?

What Is a P2P Payment?

With a P2P payment, you can send money to a friend with just a few clicks on your mobile device. This replaces the need to get cash at an ATM or write out a personal check, options that aren’t always quick or convenient.

For traditional P2P apps, both parties need to have an account with the transfer service in order to make the transaction. For example, if you want to use Venmo to repay a friend for the salad they bought you at lunchtime, that person would also need to have a Venmo account to receive that payment.

Typically, a P2P account is attached to your bank account online. Some P2P platforms, however, allow customers to link their P2P accounts to a debit card or even a credit card, though it may involve additional fees.

Recommended: How to Transfer Money From One Bank to Another

Understanding How P2P Transfers Work

How does a P2P payment work? Here’s a closer look at what goes on when you use a P2P payment app.

Overview of the P2P Transfer Process

Say that you want to send money P2P to your sister for your mother’s birthday present. Depending on the type of P2P service you use, you’ll follow some variation of these basic steps.

•   Creating a P2P Account. You will need to download a P2P app and then sign up for an account. In order to send money to your sister, you’ll both need to have an account with the same money transfer service.

•   Linking your bank account to your P2P account. Some P2P services have the ability to hold funds, but they generally must be linked to a primary bank account, credit card, or debit card in order to be fully operational. This is how the account will pull any funds needed to make a payment.

To link your checking account, you may need your checking and routing number (which appear at the bottom of a check). Some P2P transfer services may only need your bank log-in information. Others may allow you to set up extra verification measures.

•   Searching for a user to transfer funds to. To send money to your sister, you’ll need to find her on the P2P platform. You can typically search by username, email address, or a phone number. In most cases you will be able to add her account as a contact or “friend” in your account.

•   Initiating a transfer. The next step in how a P2P payment works is getting the money moving. Your sister can request a payment from you, or you can initiate the payment yourself. This requires choosing the option to send funds, entering a dollar amount, and then clicking submit. If you’ve enabled additional security measures on your account, you may need to enter a PIN that gets texted to you as well.

You may be prompted to choose whether you are making a purchase or sending money to a friend or family member. This can impact whether fees get assessed and what kind of protection you receive for the transaction.

You may have the option to add a description or “memo” to your transaction. Some P2P services may require this information so that they can charge a fee for business-related transactions. Others offer the option to act as a personal ledger should you need it in the future.

•   Waiting for the transfer to complete. Now the funds are in motion via a P2P bank transfer. When money is sent from one customer to another, it moves in the form of an electronic package safeguarded with multiple layers of data encryption. This makes it hard for hackers to access the data (like your bank account number) within the transfer while it is in motion. Similarly, data encryption keeps your money and account information safe. Once the data set reaches its destination, it is decoded and deposited as currency.

•   Transferring the funds into the payee’s bank account. When a P2P transfer is completed, the funds may be deposited directly into your sister’s bank account. Or they may go into an account created for her by the P2P service. Funds received into P2P user accounts can then be transferred into traditional bank accounts at little to no cost. (You are likely to pay a fee if you want the funds transferred ASAP versus in a couple of days.)

Your sister will likely receive some combination of email, text, and/or in-app notifications that the funds have arrived. If she decides to leave the money in her P2P account, she can use that account balance the next time she needs to pay someone or purchase something from a business that accepts P2P transactions.

How Long Do P2P Transfers Take?

The general rule of thumb for P2P transfer services is to allow one to three business days for a transfer to complete (although some seem instantaneous; timing varies). That’s because standard bank transfers use the ACH (or Automated Clearing House) system, which can take a day or two to complete.

When it comes time to move funds from the app to, say, a checking account, some apps may charge a small fee, often around 1.75% of the overall transfer amount.

Are P2P Money Transfers Safe?

Many people wonder, Are mobile payment apps safe? Any time your bank account, credit, or debit card information is online, there is a chance that someone can get a hold of it, and P2Ps are no different. While all major money transfer companies encrypt your financial information, no P2P system can say it’s totally impervious to hacks and scams.

There are also additional measures you can take to make sure that your account remains secure. For example, you may be able to set up two-factor authentication, which might involve typing in a unique pin number that is texted to your phone for each transaction. Or you might elect to receive notifications each time there’s a transaction posted on your account, enabling you to spot financial fraud right away if it were to happen.

You may also want to take care when you type in a recipient’s email address, phone number, or name. A typo could lead to the money going to the wrong person.

How Do Peer-to-Peer Transfer Companies Make Money?

P2P transactions are largely offered for free to consumers, which may beg the question of how the companies that offer these services stay in business. Here are two major ways that P2P money transfer apps may generate income.

Account Fees

Typically, you can make P2P payments from a linked bank account or straight from the P2P account for free. If you want an instant transfer or you are transferring money using a credit card or from depositing checks into your P2P account, there may be a fee involved.

Business Fees

P2P platforms aren’t just for consumers — they are used by businesses as well. Compared to the free transactions that standard user profiles offer, business profiles are generally subject to a seller transaction fee for each customer purchase made with a P2P money transfer app. Venmo, for instance, charges a fee of 1.9%, plus 10 cents for each transaction.

What Are the Benefits of P2P Money Transfers?

There are three main benefits to using online money transfer services.

•   They’re fast. Depending on the service, P2P money transfers can happen very quickly. They can take anywhere from just a few seconds to a couple of business days.

•   They’re cheap. When exchanging money between friends and family, P2P money transfers are often free. There may be a small fee, however, if you want an instant bank transfer, are using a credit card instead of a bank account, are making a transfer above a certain dollar amount, are conducting a high volume of transfers, or are using the service for a business transaction.

•   They’re easy. P2P transfers eliminate the need to make trips to the ATM or a local bank branch to get cash. They also eliminate the need to get out your checkbook, write a check, and then mail it to someone. For a P2P transfer, all you likely need is a mobile device, the app, and cell service or WiFi.

Alternatives to P2P Money Transfers

What if a P2P money transfer isn’t available or doesn’t suit your needs? Try these options instead to move money.

Sending a Check

You can go old-school and write a paper check. You fill out the necessary details and hand or mail the check to the person you are paying. Typically, no fee is involved, although you may have to pay for a new checkbook when you run low and order more checks.

Money Orders

Money orders are in some ways similar to a check, but you don’t write them from a bank account. Instead, you purchase them (essentially pre-paying for the amount you are sending) at the post office, businesses like Western Union or Moneygram, or from certain retailers.

Typically, you will pay a small fee. For example, the United States Post Office will issue money orders up to and including $1,000. Those that are for amounts up to $500 will be assessed a $1.75 fee; for ones that are $500.01 to $1,000, $2.40 will be charged. Once you have a money order, you can either give it to the recipient in person or mail it. You can also typically track a money order to see when it’s cashed.

Using Online Bill Payment Services

Many financial institutions offer ways for their customers to pay bills electronically. A key feature of mobile banking, this service can be a simple way to send funds from your checking account, regardless of where you are or what time it is. You may be able to set up recurring payments as well for bills you receive regularly.

Wire Transfers

Wire transfers are another way to send funds electronically using a network of financial institutions and transfer agencies that operate globally. Typically, you will access a wire transfer via your bank, its website, or its app. You’ll need to have your payee’s banking details and will likely pay a fee to wire money.

For instance, domestic wire transfers can charge a fee of anywhere from $15 to $50, and they can be processed in a few hours or within a day. International wire transfers can cost more (with both the sender and recipient possibly paying fees) and can take longer, typically two days.

Recommended: What Is an E-Check (Electronic Check)?

The Takeaway

Peer-to-Peer (or P2P) payment apps facilitate mobile money transactions. You can use them in place of cash or writing a check when you want to give friends or family money, whether it’s to cover your portion of a dinner bill or split the cost of a vacation rental. Some businesses also accept this form of payment.

All you need to make a P2P transfer is a mobile device, an internet connection, and your P2P app, which you must link to your bank account or credit card.

Customers with a SoFi online bank account can send money to any person, anywhere, even if that person doesn’t have a SoFi Checking and Savings account. If the person does happen to be a member of SoFi, the transfer will happen instantaneously. That’s not the only reason to open an online bank account with SoFi, though: You’ll also earn a competitive annual percentage yield (APY), pay no account fees, and, for qualifying accounts, get paycheck access up to two days early.

FAQ

How much time does a P2P transfer take?

P2P accounts can take just a few seconds or a couple of days to move funds. Then, if the person who has money in the P2P app wants to transfer their cash to a bank account, that can also take between hours and a few days. Often, you may be charged a fee if you want the money moved ASAP.

Is P2P digital money?

P2P, or peer-to-peer-payments, are a digital way of moving funds from one person to another. Once the transfer is complete, the recipient has money they can use to pay for purchases or transfer into a bank account.

What’s an example of a P2P payment?

An example of a P2P payment would be to use a P2P app such as PayPal or Venmo to send funds to a friend you owe money. Or you might send a payment to a service provider or retailer using P2P apps as well.

Do banks use P2P?

Many banks offer their own version of P2P apps. For example, you might be able to almost instantly send funds from your account to a friend, a retailer, or a service provider.

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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.

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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