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If you’re like most Americans, your paycheck turns up in your bank account automatically, without any check to sign and then make a trip to the bank to deposit.

With direct deposit, funds are electronically transferred out of one bank account and deposited into another. It’s a convenient way to automate one’s finances, and it’s not limited to paychecks. It can streamline other financial transactions as well.

Here, you’ll learn more about this process, the pros and cons of direct deposit, and ways you might want to put it to work for you.

What Is Direct Deposit?

As mentioned above, direct deposit is a way of electronically transferring funds between bank accounts.

It was pioneered more than 50 years ago. In 1972, the first automated clearing house (ACH) network formed to manage electronic payments, with other networks quickly following. In 1975, the Social Security Administration (SSA) decided to test the system of direct deposit for payments they issued. Today, nearly 99% of SSA’s payments are directly deposited.

According to a 2024 survey, approximately 92% of employed people in the United States receive their salaries or wages this way.

What’s more, these automatic bank transfers are used today in ways beyond having paychecks directly deposited, including bill pay, retirement account contributions, and more.

💡 Quick Tip: Did you know online banking can help you get paid sooner? Feel the magic of payday up to two days earlier when you set up direct deposit with SoFi.^

How Does Direct Deposit Work?

You’ve now learned a bit about what direct deposit is and how the ACH system facilitates direct deposit, allowing funds to flow seamlessly and quickly from one account to another.

Here, a bit more intel on how this process can be put to work for you and how to set up direct deposit.

Direct Deposit for Payroll

Let’s say that an individual is ready to start a new job. The human resources department explains how the company either requires direct deposit or offers the option.

•  If that employee wants to set up direct deposit, they would need to share bank information with their new employer, including the bank’s name, the routing number that identifies the financial institution, and the employee’s bank account number. Sometimes, a voided check is requested.

•  This information would then be entered into the company’s payroll system and, whenever payroll rolls around, the company would send an electronic file to this employee’s financial institute. The file would share how much money should be transferred from the company’s (the “originator’s”) bank account to accounts for each of the employees whose direct deposit accounts are located at that particular financial institution.

•  If, for example, three employees of a company all share Bank A, then let’s say this bank receives an electronic transfer of $4,345. Bank A would then distribute the money appropriately into the proper bank accounts, such as:

◦  $2,000 in Person A’s checking account and $500 into their savings account

◦  $1,350 in Person B’s account

◦  $445 in Person C’s checking account and $50 into their savings account.

•  Then, if the employees (known as “receivers”) check their bank balances, they’ll see the deposits made through this direct deposit process. As noted in this example, money may be directly deposited to a checking account or into a savings account. Or some money can be put into a savings account with the rest in a checking account.

•  How long does direct deposit take? Typically, the funds go through like clockwork and are there waiting on payday. Some banks may offer the ability to access your direct deposit up to two days sooner.

What Are the Uses of Direct Deposit?

There are several uses for direct deposit:

•  Payroll. As noted, the vast majority of Americans get paid this way.

•  Tax refund. This can be among the quickest ways to get your tax refund. The IRS can process a direct deposit refund for an electronically filed return in as little as seven to 10 days of receipt; however, most refunds are issued in less than 21 days.

•  Government benefits. Social Security and Supplemental Security Income benefits, VA, unemployment, and other benefits can be paid via direct deposit.

•  Commissions, rental income, vendor payments and other earnings can be automated with direct deposit.

•  Dividends. Shareholders may receive dividends by direct deposit.

•  Child support. This may also be automated.

Benefits of Payroll Direct Deposits

Direct deposit of paychecks has many benefits. Here’s a closer look:

•  Convenience: With a direct deposit of their paycheck, employees can skip the step of physically depositing a paycheck into their accounts, which can be a timesaver.

This can be especially true if the employee telecommutes from home, is on vacation, or is otherwise out of the office when payday comes, because that employee doesn’t have to go into the office to retrieve the paper check.

•  Speed: With direct deposit, the money is typically in an employee’s bank account at the start of the designated payment date, which gives them access to the funds that day. No waiting for checks to clear.

•  Security: With paper checks, there’s always the possibility that they will get lost or stolen. Payroll direct deposit can add a layer of security to the process.

Many times banks will waive fees for customers who have direct deposits set up.

•  Savings: Many banks will waive fees for customers who have direct deposits set up, although there may be a minimum deposit amount required for this to happen.

•  Better money management: If an employee puts a percentage of each paycheck automatically into a savings account, this can help get them into a regular savings habit.

Downsides of Payroll Direct Deposit

Now, for the other side of the coin, these are the cons of direct deposit:

•  Inconvenience: When people receiving direct deposits decide to change banks, it may be a hassle. It may take workplaces a period of time to change where paychecks are sent, which means that the old account might need to be kept open longer to make sure all paychecks are received.

How long that period of time may be can vary. But, before you close your old account, ensure that all direct deposits are being put into the new account. Also make sure that all withdrawals and checks have cleared at your old bank and that any automated payments are coming out of the new bank.

•  Scheduling: With direct deposit, it’s important to make sure the correct deposit dates and amounts are recorded. Otherwise, account holders could write checks beyond what’s available, which could trigger overdraft or non-sufficient fund (NSF) fees — which can be costly, especially when they add up.

•  Lack of access: Not everyone in the U.S. has a bank account (this is often referred to as being “unbanked”). If an employee doesn’t but their employer requires direct deposit (more about that next), then employees without a bank account would likely receive their paychecks through a prepaid debit card. These can come with fees and, like paper checks, can be lost or stolen.

Here are the pros and cons in chart form for easy comparison:

Employers Requiring Direct Deposit

Just as there are benefits to payroll direct deposit for employees, there are also benefits for employers. For instance, it’s cheaper to manage payroll payments this way, versus physical checks.

Plus, employers have a record of accounts, which makes it easier for companies when they’re reviewing expenses — and they don’t have to reissue a check if an employee loses one.

And, after a person’s payroll information has been entered into the system, paying employees can be faster and easier with direct deposit.

Laws governing payroll direct deposit vary by state and, if a state has no specific laws on this subject, it defaults to federal regulations. Federal law states that employers must give each employee using direct deposit a summary of rights and liabilities and must get their signature on an authorization form along with relevant banking information.

Some states allow employers to actually require direct deposit for payroll, as long as the program is administered in a way that’s consistent with federal regulations. (In some cases, the rule only applies to public sector workers.) Most states, however, still give employees the choice between direct deposit and receiving a physical check.

A handful of states have laws that are unique to them, ones that don’t fit into any of the broad categories already described.

Automating Your Finances

The concept of electronic funds transfers is at the heart of payroll direct deposits, but goes beyond that. Here are additional ways to benefit from automating your finances.

•  Automation is a tool that can also help people to build an emergency savings fund. In general, traditional wisdom says this account should contain three to six months’ worth of living expenses.

That way, if an emergency arises (whether that’s a job loss, an unanticipated repair, or unexpected medical expenses), a financial cushion exists. By setting up a regular funds transfer to a savings account, this can make it easier to build up that emergency fund.

•  Another way to streamline your financial life: paying bills through autopay. In some instances, lenders may offer a discounted interest rate for borrowers who use automated payments to pay their bills. Autopay can help borrowers make their payments on time, rather than forgetting them when life gets hectic. This can mean fewer or no late fees.

•  Because payment history plays a key role (35%) in a person’s FICO® Score, autopay can help you establish and maintain your credit score. By automating payments (as long as enough money is in your checking or savings account when the payment is due) you can optimize this aspect of your cash management.

•  Autopay helps to reduce the number of paper bills that need to be sent out and the number of paper checks that may be written to pay those bills. This means that automated funds transfers can therefore be an eco-friendly choice to make.

•  Whenever funds are electronically transferred, either in or out of a bank account, a digital record is automatically created. This can be helpful when balancing accounts, creating a budget, looking for tax deductible items, searching for ways to trim discretionary spending, and more.

•  Autopay might also be a good strategy to use to contribute to a retirement account. Employers may automatically deduct an amount from employee paychecks to transfer it into a retirement account that’s set up by the company, such as a 401(k). That can make saving easy.

Types of Accounts for Direct Deposits

For people who decide to use automated funds transfers, here are some options to consider for receiving direct deposit:

•  Checking accounts

•  Savings accounts

•  Money market account

•  Investment accounts

•  Some prepaid debit cards

•  Some payment apps, such as PayPal or Cash App.

Getting Direct Deposit With SoFi

If you’re interested in opening a bank account to receive direct deposits, take a look at what SoFI offers and see if SoFi direct deposit is a good fit for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is the meaning of direct deposit?

Direct deposit refers to the automated transfer of funds from one bank account to another. This means cash doesn’t need to change hands, nor does a check need to be written and then deposited.

How do you get direct deposit?

Typically, signing up for direct deposit involves sharing your bank account and routing number with, say, your employer or the government so they can direct deposit funds in your account. In some cases, you may be asked to share a voided check.

Is direct deposit only for paychecks?

Direct deposit is not only for paychecks. It can also be used for government benefits (such as Social Security), commissions, tax refunds, investment dividends, and other forms of payment.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-051

Money problems are pretty common. In fact, 73% of Americans say finances are their top source of stress in life, according to a 2025 survey by Capital One.^[1] So if you are feeling the pinch and worrying, you are not alone.

But that doesn’t mean you should live with the anxiety that a mountain of debt or low credit score can bring. Here, you’ll learn about the most common financial issues you may face, how to avoid money problems, and how to resolve them if and when they strike.

Why Are Money Problems Common?

There are many factors that contribute to money problems. Depending on your situation, you might be dealing with, among other factors:

7 Common Money Issues

Financial challenges can happen to anyone — whether you are younger or older, rich or living paycheck to paycheck. Here are some of the most common money issues that people come up against.

1. High Credit Card Debt

Credit cards can be a useful tool for disciplined consumers who are trying to build good credit. And there are several perks to paying with a card instead of cash, including convenience, purchase protections, and rewards programs.

But many Americans aren’t able to pay off their account balance every month. According to Transunion, the average household carried $6,580 in credit card debt at the end of 2024.^[2]

Thanks to high interest rates, items you charge on a credit card and don’t pay off right away end up costing quite a bit more. As of March 2025, the average annual percentage rate (APR) for credit cards was 28.70%.^[3]

The interest you’re charged on a credit card also compounds, which means interest is calculated not only on the principal amount owed but also the accumulated interest from previous pay periods.

While this kind of compounding is a positive thing for a high-yield savings account, it can be a real issue with your plastic. It means a credit card balance can grow exponentially, even if you pay the minimum every month. Add in late charges and the possibility that the interest rate could be increased on an overdue account, and it’s easy to see how consumers get into trouble.

2. A Low Credit Score

Carrying too much debt or failing to make credit card or loan payments on time may result in a lower credit score. A low credit score can make it harder to get a loan, such as a mortgage or a credit card. And even if an application is approved, the interest rate the lender offers may be higher than what’s available to borrowers with better scores. That higher interest rate can make it harder to make payments and keep up with other bills, which can, in turn, further hurt your credit profile.

A low credit score can also negatively impact your ability to get a job or rent an apartment. And, it can take years before negative factors like late payments, defaults, and collections are removed from credit reports.

3. Not Having an Emergency Fund

Setting money aside in an emergency fund may seem like a luxury for those who are struggling to meet everyday expenses. But a solid savings buffer can actually be even more important if you’re living on a tight budget.

Without an emergency fund, any unexpected expense that comes along — whether it’s a high medical bill, a car or home repair, or a temporary job loss — can throw you way off balance. As a result, you might need to use high-interest credit cards, retirement savings (which can trigger penalty charges), or other options that can add even more stress to a challenging situation.

“For the most part, you’ll hear that a healthy emergency fund should cover between three and six months worth of living expenses — which would include rent, mortgage, bills, food, and other essentials,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “And since you never know when an emergency might happen, it’s best to keep your fund relatively liquid.”

4. Spending More Than You Earn

Picking up a morning latte and grabbing lunch out may not seem like it could make or break your bottom line. But just $40 per week spent eating out will cost you $2,080 per year, which is money that could go toward an extra loan payment or a few extra car payments.

If you tend to make spending decisions on the fly (without any type of budget or financial plan in mind), it can be easy to blow through more money than you actually earn, and much harder to achieve your financial goals.

While the causes of overspending are varied, the habit is one of the most common reasons why people get caught in the debt trap. If you don’t have the cash to cover your expenses, you may rely on credit cards to get you through.

Once you start paying interest on your credit card balance, your monthly expenses go up. This can make it even harder to live within your means and, as a result, lead to more debt.

5. Facing Foreclosure

State foreclosure rates vary, but regardless of where you live, it can be a major concern for struggling homeowners, especially in tough economic times.

People can end up in foreclosure for any number of reasons, including financial mismanagement (buying too much house or choosing a loan payment they can’t afford), or uncontrollable events (such as a job loss or expensive medical condition).

The process is typically slow, but it can be daunting to imagine having to move, especially if it means taking children out of a school or neighborhood they love. And there can be long-lasting financial consequences, as well.

A foreclosure can have a significant effect on your credit, and it can stay on your credit record for years.

6. Student Debt

While getting a college degree can improve your earning potential, the cost of getting that degree continues to skyrocket. And so has student loan debt.

Recent statistics reveal that the average federal student loan debt balance is $38,375.^[4] As students leave college and enter the workforce, paying back that money can be a major challenge. Student loan burdens can lead to postponing certain milestones, including homebuying or having children, and saving for retirement.

Recommended: Average Student Loan Debt: Who Owes the Most?

7. Not Saving Enough for Retirement

According to a 2024 AARP survey, 20% of adults ages 50-plus have no retirement savings at all.^[5] While having no money in the bank for later life can make some people feel like, “Why even bother trying to save,” know that financial advisors stress that saving something is better than nothing.

Thanks to the magic of compounding interest (when the interest earned on your money gets reinvested and earns interest of its own), even putting just a small percent of your paycheck into a 401K or IRA each month can add up over time.

Recommended: How to Manage Your Money Better

Money Problem Solving

If you recognize that you have money problems brewing or in full force, here are some steps to solve the problem:

Identify the Issue

Though it may be tempting to hide from what is going on, digging in and exploring where your money is going (or isn’t going) is an important move. Is your credit card debt feeling insurmountable? Are your housing and food costs rising too steeply? Did a job loss or medical bill force you into a difficult financial position?

Figure out and face the facts so you can move forward.

Develop and Implement a Plan

Once you know the source (or sources) of your money stress, you are in a position to take action. In a moment, you’ll learn some important ways to take control of financial issues. These include budgeting and paying down debt.

But other specific moves may suit your situation, such as debt consolidation or refinancing student loans.

Seek Help

If despite digging into your money issues, you are feeling unclear of how to proceed or as if there isn’t a feasible solution, reach out for help. There are an array of experts who might be appropriate, from a Certified Financial Planner® professional to a low- or no-cost debt counselor.

How to Cope with Money Issues

If you’re dealing with money problems (or hoping to avoid any future setbacks), here are some money management strategies you may want to put into place.

Setting a Budget

People tend to cringe at the word “budget” because it sounds like work, but having a budget in place can help simplify your finances and improve your money mindset.

To create a monthly budget, you simply need to gather up the last several months of financial statements and receipts and then use them to figure out how much you’re bringing in (after taxes) each month, as well as how much you are spending on average each month.

If the latter exceeds the former, or is so close there’s nothing left over for saving, you may want to drill down deeper.

To see exactly where your money is going you may need to track your expenses for a month or two and then determine exactly how much is going towards nonessential (or discretionary) purchases, where you may be able to cut back.

You may also want to consider adopting the 50-30-20 budget rule. With this type of budget, half your take-home income goes towards needs (or essential expenses), 30% goes towards wants (nonessentials), and 20% goes towards your financial goals — such as debt repayment beyond the minimum, building an emergency fund, and saving for a home or retirement.

Knocking Down Debt

Reducing debt may seem like a tall mountain to climb, but using a systematic approach can help make the process more manageable.

One method you might consider is the snowball method. This involves paying as much as you can each month toward your smallest balance while making the minimum payment on all your other debts so your accounts remain in good standing. Once you’ve paid off that smallest debt, you move on to the new smallest balance and continue this process until you’ve paid off all your accounts.

Another approach you may want to consider is the avalanche method. With this strategy, you start by paying as much as possible toward the debt with the highest interest rate, while making minimum payments on all the others. Once that debt is paid off, you move to the balance with the next-highest interest rate, and so on.

As briefly noted above, debt consolidation is an option as well, perhaps with a personal loan or a student loan refinance.

The Takeaway

It’s common to face money issues throughout your life, particularly when you are just starting out. Some of the most common include overspending, being burdened by debt, not having a financial cushion for emergencies, and not putting enough away for retirement.

Whatever financial challenges you are facing, you may want to clearly assess the issue and then come up with a spending, saving, and debt repayment plan that can help you get back onto solid ground.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What are common money problems?

Common money problems include high-interest credit card debt, lower income, student loan debt, a low credit score, and overspending.

What do people struggle with most financially?

What people struggle with financially will vary from person to person, but debt, inflation, high cost of living, and lack of savings for emergencies and retirement are common issues.

What are 4 common investment mistakes?

Four common investment mistakes include not establishing a long-term plan, letting emotions guide your decisions, attempting to time the market, and not diversifying your portfolio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Who is eligible for a Direct Deposit Bonus?

SOBNK-Q225-027

The average cost of estate planning varies widely, and the amount you pay will depend on several factors, such as the complexity of your estate and where you live. But the benefits of having a proper estate plan in place — from peace of mind to knowing your family is financially protected — are often worth the price.

Learn how to determine the average cost for will and estate planning for your specific needs so you can choose the option that’s right for you.

Understanding Estate Planning Costs

The cost of estate planning partially depends on location, but also a few other variables.

Key Factors Affecting Cost

How much does estate planning cost? Here’s what you need to take into consideration.

•   DIY vs. professional help: It’s possible to handle your estate plan on your own, provided you follow your state laws regarding signatures, notaries, and witnesses. Hiring an attorney may be ideal if you need more than a simple will, but of course the costs will be higher.

•   Estate complexity: Owning large investment accounts, businesses, or properties beyond your primary residence could lead to higher costs because you may need additional documentation and accounts to administer your wishes.

•   Location: Estate attorneys in lower cost of living areas typically charge less than in those in large cities. You usually need to work with a lawyer licensed to practice your state in order for the will to be compliant with state law.

Average Cost Ranges for Wills and Trusts

While there’s no way to assign an exact price tag to any estate plan, you can get an idea of what you’ll spend based on different scenarios. Here are some average cost ranges for wills vs. trusts.

The cost of a will depends on how you’re creating it. You may be able to find a free template online that you can fill out on your own, then follow your state’s laws on how to finalize it (such as signing in front of witnesses and/or getting the document notarized).

But if you want state-specific documents or more details on things like healthcare directives, you may need to upgrade to a paid version. Online estate planning services offer more specific templates and can cost anywhere from $40 to over $100. If you opt for a lawyer to help you draft a will, you could pay at least $1,000, if not more.

The process can cost even more if you want to open one or more trusts. You can find online options for living trusts, which cost between $500 and $1,500 to get started. The cost jumps to $1,000 to $3,500 for hiring a lawyer to draft your trust. You’ll incur ongoing management fees, which are usually charged as 0.5% to 1% of the trust’s assets each year.

Recommended: What Is Estate Planning?

Finding Affordable Estate Planning Solutions

You can create key estate planning documents without breaking the bank. Keep an eye out for balancing cost and value to make sure you’re spending the right amount on the right services.

Comparing DIY Online Services vs. Hiring an Attorney

As you figure out which estate planning process is best for you, consider the pros and cons of doing it yourself versus hiring an attorney.

Understanding Attorney Fee Structures

Not all estate attorneys charge in the same way. You may encounter hourly rates or flat fees, which can impact your final bill. Both rates vary depending on where you live. An attorney could charge several hundred dollars an hour as they work on your estate plan or several thousand dollars for set deliverables.

Hourly billing may seem like the cheaper option, but you’re typically charged for every phone call and email — making that final number add up fast. You may not know what the actual budget will end up being until the estate plan is finalized. So, if something requires more time and attention, you’ll pay for it.

A flat fee may seem costly at first, but the benefit is that there’s no financial sticker shock at the end. Plus, you can reach out to your attorney as needed without worrying about charging up the bill. Just be sure to find that balance between value and budget so you’re not paying the cheapest lawyer for subpar service.

Tips for Managing Professional Fees

How do you find the best estate planning attorney for your needs? Follow these three steps before you sign any contract.

•   Schedule introductory meetings with multiple attorneys. These are usually free, and you can compare recommendations as well as cost structures.

•   Ask upfront about rates and variables that could impact the cost beyond the initial estimate.

•   Sign a contract with all of the details you agreed upon so there’s no question or disagreement later on. If you have questions, ask before signing.

Why Planning Is a Smart Investment

Estate planning is an important process to undertake regardless of your age or net worth. Let’s take a closer look at reasons to consider it.

Protecting Family, Assets, and Your Wishes

Estate planning serves as a financial and legal safety net for your family so that your assets are protected after your death and distributed according to your own wishes. With a solid estate plan in place, you minimize the risk of a lawsuit of someone trying to claim part of your estate for themselves because you have clear intentions in a legal document.

On top of that, you may also wish to move some assets into a trust or LLC. They can protect personal assets from being collected by creditors. Finally, estate planning can help minimize family conflict. Even if someone is upset about the directions in your will, your executor and the court will ensure your wishes are carried out.

Minimizing Future Taxes and Probate Headaches

Having a strategic estate plan in place can help you reduce future taxes. An estate attorney in particular can help you navigate both federal estate taxes and any potential state estate or inheritance taxes. They’ll factor in gifts while you’re alive as well as potential high property values that could impact your estate’s tax exemptions.

While you may not be able to completely avoid your estate going through probate, having the right plan can reduce the time and money spent in court. You can incorporate life insurance policies and account beneficiaries into your estate plan, both of which go directly to the beneficiary rather than waiting for the probate process.

An attorney may also recommend one or more trusts, such as revocable living trust, which also doesn’t go through the probate process.

Recommended: New Parent’s Guide to Setting Up a Will

The Takeaway

There are estate planning options at every price point, from free online will makers to experienced attorneys who can help navigate a complex portfolio of assets. Find the budget that works best for you to make sure you have everything in place for your family or other beneficiaries.

When you want to make things easier on your loved ones in the future, SoFi can help. We partnered with Trust & Will, the leading online estate planning platform, to give our members 20% off their trust, will, or guardianship. The forms are fast, secure, and easy to use.

FAQ

What’s the biggest factor affecting estate planning cost?

The biggest factor affecting estate planning cost is the size and complexity of your assets. If you have a high net worth, businesses, and/or multiple properties, you’re likely to spend more than someone who primarily has savings and retirement accounts to pass on.

Is DIY estate planning safe or reliable?

Yes, DIY estate planning can be safe and reliable. If choosing an online will maker, be sure the service is reputable and takes the highest security measures. Also check your state laws to make sure you take the necessary steps to make your will legally binding.

How do I know if I need a simple will or a more complex trust?

A will is a solid foundation for any estate plan. Adding a trust transfers ownership of the assets to a third party in order to avoid going through probate. Upon your death, the assets will be distributed based on the rules of the trust.

What questions should I ask an estate planning attorney about fees?

Ask the estate planning attorney whether they charge hourly or as a flat fee. If it’s hourly, get an estimate of how many hours they anticipate your estate plan to take. If it’s a flat fee, ask for a clear outline of all the services included and not included.

Can good estate planning actually save money in the long run?

Yes, good estate planning can save you money, particularly if you have a larger estate with more complex assets. You could save your family money on taxes, probate fees, and even potential litigation.

Photo credit: iStock/PIKSEL

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Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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

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.

SOPRO-Q225-058

If you’ve lost your job and your income stream along with it, figuring out how to pay your bills can be a difficult task. You probably know to cut back on dining out and movie nights, but what can you do about bills for your rent, student loans, and other vital expenses?

Plenty of people confront this situation, and there are ways to navigate this challenge. It’s often a matter of knowing how to recognize the most pressing bills, organize your assets, and seek additional income and assistance if needed.

What Bills Should I Prioritize?

If you’ve lost your job, you may feel as if you can’t pay all your bills. In this situation, it’s crucial to prioritize certain ones to make sure you can meet your basic necessities. This means looking at your list of bills and determining ones that should be at the top of your list (or close to it).

In addition to the bills that keep your daily life running, you also want to consider the damage unpaid charges can do to your credit rating. The goal is to balance these factors with the funds you do have available.

Bills you should probably prioritize include:

Rent

Having a roof over your head is important for you and those who live with you, so contact your landlord as soon as possible to discuss alternative payment arrangements. Perhaps you can negotiate lower payments for a window of time. Otherwise, if you don’t communicate and don’t pay, you could find yourself facing eviction.

Mortgage Payments

If you have a home loan, falling behind on payments can have serious consequences, one of which is foreclosure. Non-payment can lead to default and the bank has the right to recoup their property (aka the home) and sell it to attempt to make back the money it lost.

If you’re wondering what to do about loans when you’ve lost your job, contact your lenders as soon as possible. Many offer forbearance or alternative repayment programs.

Student Loans

Falling behind on student loans could mean you’ll go into default. In some cases, the lender may have the right to garnish your wages. If you’re handling student loans during a job loss, consider applying for an income-driven repayment plan for federal student loans or contacting your private lender to see what options are available.

Car Loans

You’ll most likely need your car to run errands or look for work. Staying on top of payments for your loan or lease can help ensure you won’t risk having your vehicle repossessed.

Insurance

Non-payment could result in denial of coverage, which might not be helpful if you need to see medical treatment or are in a traffic accident, for instance.

Utilities

Not paying these types of bills can result in your electricity, water, phone, and internet being shut off. These are obviously vital for daily life and, in terms of connectivity, job hunting.

How to Create a Survival Budget

If you’ve lost your job, it’s important to create a survival budget to help prepare for the lean times ahead. This type of budget only takes into account the bare necessities with whatever savings or income sources like unemployment benefits you currently have.

The main goals of a survival budget: to ensure you and your family are taken care of, and then turn your attention to any creditors as necessary. What this means is that even without a job, you pay the bills that will ensure you can survive first — such as food and housing — with the funds in your checking account.

Taking Stock of Your Expenses

To start, look at all of your current expenses and eliminate anything that isn’t really and truly a necessity.

•   You can’t get rid of your food expenses, but you can temporarily cut back on dining out to stop overspending. Cook your meals instead, and ditch your takeout coffee habit for now.

•   If you have a cell phone, you can consider downgrading your service for a cheaper plan to save some money.

Look at the funds you have available for the next couple of months as you job hunt. Deduct the priority expenses, and then evaluate what is left and how you can budget those funds. Be strict with yourself: Now is the time to unsubscribe from all those streaming services and save your money for what’s vital.

If you’re not sure if you have enough cash to pay for the necessities and debt payments, it’s best to seek options like forbearance and deferment — negotiate with your lenders to see what you can do.

If your unemployment stretches on for a period, you may want to take bigger steps at lowering your expenses. For example, you might consider taking in a roommate or looking to move elsewhere to lower your rent.

Where Can I Turn for Money?

Here are some income sources you can turn to when you’re unemployed. It’s hard to pay bills with no job, but these resources may get you through a tough time:

Credit Cards

Using credit cards or even taking out a personal loan when unemployed can be a quick source of funds if you need to make purchases such as groceries and gas. While the interest rates tend to be high, you’ll have a grace period before your balance is due, giving you a buffer to get another income source.

Otherwise, you can make the minimum payment for the time being and make a plan to pay it back once you’re employed again.

Also, see if you can negotiate with your card’s issuing company; you might be able to delay credit card payments. You may also want to explore balance transfer credit card offers, which give you a window of low or no interest.

Retirement Accounts

Tapping into a retirement account like a 401(k) or an IRA is typically seen as the last resort because the downsides typically outweigh the benefits. However, if you’re running out of resources and you have a decent chunk in there, you may not have another choice.

You can choose to tap into your retirement accounts in the following ways:

•   Take out a 401(k) loan: Depending on the terms of your 401(k) plan, you may be able to borrow up to a certain amount — usually up to $50,000 or half of your vested amount — and pay it back within a predetermined amount of time (in most cases, five years). Keep in mind you could face additional penalties if you don’t pay back the loan, such as the loan amount being subject to taxes. In addition, loan and management fees may apply.

•   Withdraw from your retirement accounts: If you have an IRA or taxable brokerage account, you can make withdrawals. Keep in mind with IRA accounts, you may be subject to a penalty and taxes on the amount you withdraw.

Government Assistance

You’ll want to find out how unemployment works if you lose your job; it can help get some cash flowing your way. Those funds can help you pay for your necessities as you seek other work.

If you’ve been unemployed for a while or face mounting pressures on things like an unexpected medical expense, you may be able to seek other forms of government assistance. These sources can be helpful if you feel as if you’ve lost your job and can’t pay your bills. To see what you may qualify for, you can search on Benefits.gov , your local state or municipal office, and even local charity organizations and churches.

How Setting Up a Bank Account Can Help You When You Are Not Working

When you’re unemployed, setting up a bank account (if you don’t already have one or one you love) may seem like the last thing on your mind, but doing so can help. For one, it can help you to keep track of your finances and apply for products such as credit cards and loans if you need these sources of income.

Plus, many banks offer tools to help you budget your money, a useful feature considering you need to watch your money more carefully. These pros of opening an account can make this moment of unemployment a good one to explore your options.

How to Budget and Save with a Bank Account

Here are some ways in which you can make a budget and save using a bank account when you are unemployed and navigating the job market:

•   Divide money into multiple checking or savings accounts for each type of expenses so you can ensure you have enough money for necessities as well as bills.

•   Set up automatic transfers so you can ensure you’re setting aside money from any income to save or pay bills on time.

•   Set up direct deposit for unemployment benefits or government assistance.

•   Set up card controls or features from your bank to restrict spending.

•   Turn on balance alerts to notify you when your account falls below a certain balance, so you can decide to pause or delay certain purchases.

•   Earn interest with a high-interest savings account.

Alternative Sources of Possible Income

For some people, the above options for money won’t be a good fit; for others, additional funds will be needed. If you have learned how to apply for unemployment and taken other steps to get money but are still seeking other sources of income, consider these options to get cash flowing:

•   Borrow from friends and family.

•   Look for work on freelance marketplace sites like Upwork and Fiverr.

•   Sell things you own or make online via eBay, Etsy, or other sites.

•   Participate in paid market research.

•   Look locally for jobs like dog-walking.

•   Explore passive income ideas, including renting out your car or your tools.

Protecting Your Finances from Future Job Loss

There are also steps you can take to bring in income and prepare for any future financial setbacks you may endure. Consider these options:

Starting a Side Hustle

A side hustle is a gig you start that doesn’t have to be full-time but fits into pockets of time you have available. One of the key benefits of a side hustle is bringing in income.

Side hustles can include anything from driving a rideshare to delivering food. You might sell your nature photography online or help local businesses with their social media part-time.

Building an Emergency Fund

Starting an emergency fund can help protect your finances if you were to lose your job. This involves saving money so it’s there if you are laid off or encounter an unexpected expense, such as a major car repair or dental bill.

In terms of how much money should be in an emergency fund, aim for three to six months’ worth of basic living expenses. Of course, it’s fine to build that up over time versus coming up with the whole amount. Even putting aside $20 a month is a start. And by keeping the funds in a high-interest savings account, you’ll help it grow.

It’s important to know when to use an emergency fund. Losing one’s job is an emergency; it’s exactly what the money is there to pay for. However, the opportunity to travel at a deeply discounted rate or buy designer shoes for 50% off are not good reasons to tap this account.

Recommended: Emergency Fund Calculator

Starting a Budget

Developing a budget and following it can help you get through challenging financial moments and thrive in good times. A budget helps you balance the money you have coming in, your spending, and your savings. It helps you get a better handle on your financial situation and make adjustments in real time.

•   One popular budget is the 50/30/20 budget rule. This says that, of your take-home pay, 50% should go to basic living expenses, 30% to spending on your wants (such as eating out), and 20% should go to savings and debt payments beyond the minimum.

•   If you have lost your job, you can minimize the 30% by trimming back your spending on wants as much as possible and then attributing more to the basic living expenses and debt payments.

•   The 20% saving figure can be a way to plump up that emergency fund that can help sustain you during a job loss.

Recommended: 50/30/20 Calculator

The Takeaway

Paying bills when you lose your job can feel stressful, but it’s not impossible. Some key steps may include prioritizing your bills and focusing on budgeting for the bare necessities. It’s also wise to negotiate lower or delayed payments where possible and look for other interim streams of income while you look for your next job. Also aim to have a banking partner which pays a favorable rate of interest while offering low- or no-fee accounts.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What happens to debt when you lose your job?

Your debt does not go away when you lose your job. You want to keep paying at least the minimum due. However, you may be able to negotiate a way to lower your interest rates or defer payment while you are out of work. Contact your creditors and see what can be worked out.

What bills should I pay first?

When you are unemployed and need to pay bills, prioritize basic living expenses, such as housing, food, and healthcare. It’s also important to stay current on loans, such as student or car loans.

How do you budget if you are unemployed?

If you are unemployed, focus your budget on paying for your basic living expenses (food, shelter, healthcare, etc.) and paying the minimum on your debt. Trim down your discretionary spending; negotiate with creditors to keep debt manageable; and look into borrowing or earning additional funds.

Photo credit: iStock/Delmaine Donson

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

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.
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.

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

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-042

Wondering how to get paid on YouTube? Nearly 400,000 people have made YouTube a full-time job, and nearly 114 million channels now exist across the video platform. From ads to affiliate marketing to content licensing, average Americans have ample opportunities to make money off their YouTube videos.

Not exactly sure how to make money off YouTube though? This guide contains 12 ways to generate revenue from your video content — plus helpful tips for getting started.

The Popularity of Content Creation

The internet has enabled anyone and everyone to become content creators. Brands now rely on content creators and influencers to advertise products across industries, and sites like YouTube, TikTok, and Instagram have enabled people with something to say to earn income just for posting photos, videos, and reviews.

YouTube’s continued popularity (it’s the second most visited website in the world) and TikTok’s growth explosion, underscore that content creation plays an important role in our culture. And if you know how to make good content on YouTube in particular, you could make a lot of money.

Recommended: Active vs. Passive Income

12 Ways to Get Paid on YouTube

YouTube offers creators an opportunity to make good money, but how exactly? It actually takes a lot of hard work, fresh ideas, and regular posting, but if you’ve got a knack for it, it could be an easy way to make money through social media.

Here are 12 YouTube monetization ideas to get you started:

1. Joining the YouTube Partner Program

The most common way to make money off YouTube is by joining the YouTube Partner Program. Doing so allows you to run ads on your videos — before, during, and after — as you see fit.

At one time, YouTubers could count on $1 per 1,000 views, give or take, but it’s a little more complicated today. There’s really no guarantee how much money you’ll make by running ads on your videos, though the average YouTuber now sees $10 to $30 per 1,000 video views.

According to social media management company Sprout Social, your revenue can vary depending on:

•   Your target demographic (there are some strict regulations about ads on videos intended for children)

•   How relevant the ad content is to your video

•   What kind of content you produce.

How Does the YouTube Partner Program Work?

Not every content creator can slap ads onto the front of their videos. To run ads, you have to qualify for the YouTube Partner Program. Requirements include:

•   1,000 subscribers

•   4,000+ valid public watch hours in the last year

•   A linked Google AdSense account.

Your video content must also abide by all Community Guidelines, and you must live in a country where the program is available.

And here’s the kicker: You’ve got to stay active. YouTube can turn off monetization for channels that haven’t put out new content in the last six months.

2. Sending Viewers to Your Blog

If you have a blog with ads, you can encourage your viewers to check it out during your video and include a link to it in your video description. YouTube video descriptions can be up to 5,000 characters (roughly 800 words), though shorter descriptions tend to perform better.

By steering viewers to your ad-optimized blog site, you can earn additional ad revenue with every pageview. Common examples where this make sense include:

•   Recipe videos paired with your recipe website

•   Travel product review videos paired with your travel blog

•   Car maintenance instructional videos paired with your how-to blog content.

3. Sending Viewers to Your Commerce Site

There are other similar ideas for how to get paid on YouTube. For instance, you can use your YouTube video description to link viewers to your e-commerce site. If your channel is popular enough to warrant branded merch, this could be a good way to generate additional revenue. Alternatively, if you run your own shop selling goods like artwork, candles, or apparel, you may want to create product videos on YouTube that send viewers to your site.

If you don’t have your own merch site but instead sell items on Amazon, Etsy, or eBay, you can also send viewers there.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

4. Using Lead Magnets

Lead magnets are another idea for how to get paid on YouTube, though it’s a more indirect way of making money.

Your YouTube video description might send viewers to a free resource that you’ve created, like an ebook, template, or online course. When the viewer signs up for or downloads their freebie, you can collect their contact information for a newsletter and future sale alerts, which can in turn grow your business and earnings.

5. Starting a Channel Membership

YouTube has another great built-in feature for popular content creators: channel memberships. This enables creators to charge a monthly membership fee. In return for the fee, your viewers will expect certain perks like badges and members-only content.

Channel membership usually only makes sense if you post content everyday, especially YouTube livestreams. You must be a part of the YouTube Partner Program to offer channel memberships.

Recommended: How to Build an Online Community

6. Encouraging the Use of Super Chat and Super Stickers

Content creators who are part of the YouTube Partner Program can also encourage viewers to utilize Super Chat and Super Stickers during live streams. How does this help to get paid off YouTube videos? To access these features, viewers pay a small fee to pin their comments and stickers to the top of a live chat feed.

7. Encouraging YouTube Premium

While you won’t get money directly for encouraging a subscriber to sign up for YouTube Premium, you will get a cut of a viewer’s monthly membership fee when they watch your videos. If your subscribers are loyal and watch your videos regularly, encouraging them to become YouTube Premium members could put more money in your pocket.

Note: YouTube Premium members don’t see ads. If your viewers are increasingly Premium members, your ad revenue may go down.

8. Crowdfunding

YouTube creators can also make money by crowdfunding. What is crowdfunding? It’s a process by which many people contribute small amounts of money, often to help an entrepreneur reach a particular business goal. Patreon is a popular choice for YouTubers, though there are plenty of crowdfunding sites to use. If you have loyal viewers who are willing to donate toward a specific goal or project, crowdfunding could be lucrative for you.

9. Using Affiliate Links in the Description

Links in video descriptions don’t just have to go to your own site. You can also add affiliate links to relevant products. For example, if your video talks about the 10 best ways to save money on a vacation, you can include affiliate links to any products or services in the description. For every viewer who clicks the link and purchases the item, you’ll earn a commission.

💡 Quick Tip: Your money deserves a higher rate. You earned it! Consider opening a high-yield checking account online and earn 0.50% APY.

10. Getting Brand Sponsorships

YouTubers may also work directly with brand sponsors. For example, a recipe video for a dessert may be sponsored by a specific brand of cake mix. The YouTuber will mention the cake mix directly in the video and may even offer a code to get a discount on the product, and the brand will pay the YouTuber for the exposure.

It’s a good idea to thoroughly vet a sponsor to ensure their brand aligns with your values — and makes sense alongside your video content. Always be transparent with viewers by letting them know in the video and the description that this is a paid sponsorship.

11. Publishing Product Reviews

Similarly, YouTubers may review a specific product in a video. In these instances, the brand may specify talking points for the reviewer to discuss. These kinds of videos are common in the beauty, health, and fitness industries. Proceed carefully, though; they may be off-putting to viewers who view the content as inauthentic.

12. Licensing Content to the Media

If one of your videos goes viral, news outlets may want to report on it and show it to their audiences. Legally, they cannot do this without paying you. Thus, media companies often approach YouTube content creators to license their content.

Just make sure your contact info is clear on your channel so that members of the media know how to find you. You could profit from this as another way to earn money off YouTube.

Tips for Starting Your Own YouTube Channel

Ready to start making money on YouTube? Here are a few tips for starting a YouTube channel:

•   Follow YouTube’s guidelines and best practices for setting up an account. YouTube will walk you through all the major steps so you don’t miss anything. You can also search the web for tips on optimizing your channel as well.

•   Think about your target audience. Creating content for the sake of creating content may be fun for you. However, if you want to make money online, you should focus on content that your target audience actually wants.

•   Invest in the right equipment. Depending on the level of quality you’re aiming for, you may need to invest in high-quality light equipment, an external microphone, a video camera, and video editing software.

•   Know how to optimize your videos. There’s a science to YouTube. Research everything from writing strong video titles and descriptions to popular video trends to creating click-worthy thumbnails to optimizing videos for search.

•   Don’t quit your day job just yet. YouTube has nearly 114 million channels, but less than 1% of those have 100,000 or more subscribers. Subscribers will be key to your success. If you can, build up your channel and subscribers while relying on income from another avenue — until you’re confident you can make the leap.

The Takeaway

YouTube is a source of entertainment for viewers, but it also can create real revenue opportunities for content creators. There are plenty of ways to make money on YouTube, but it requires hard work, dedication, fresh ideas, and a bit of luck. Those creators who are successful can start putting away their hard-earned money to save for future goals.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How many people make money on YouTube?

According to some estimates, just 0.25% of the nearly 144 million channels on YouTube make money. But keep in mind that some people could be making passive income off a few videos on YouTube, even if they have other full-time jobs.

How many people are on YouTube?

YouTube has nearly 114 million channels with approximately 2.70 billion monthly active users consuming content. In fact, YouTube is the second largest search engine in the world behind Google.

On average, how much do YouTubers make per year?

With AdSense, YouTube content creators can expect to make between $0.01 and $0.03 per ad view; the average content creator earns $18 for every 1,000 ad views and $10 to $30 per 1,000 video views. Calculating an annual salary largely depends on how many views a content creator can amass.

For YouTubers with at least one million subscribers, a creator could make $60,000 and far more, depending on a variety of factors. But less than 60,000 YouTube channels worldwide actually have more than one million subscribers.

How can you make money on YouTube without making videos?

Though it’s technically possible to make money on YouTube without making videos, it may be a much more challenging path to financial success. However, you might be able to generate revenue on a YouTube channel by reposting reels or TikToks as YouTube Shorts, uploading your Twitch streams or Instagram Lives to the YouTube platform, or even transforming an existing webinar or slideshow presentation to a video format on YouTube.

In all of these cases, you’re still technically creating video content — but you’re using content optimized for another platform and recycled for YouTube, so you may be less successful.

Photo credit: iStock/mapodile

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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