What Are the Different Types of Income?

What Are the Different Types of Income?

You may think of your income as being your paycheck or your freelance earnings, but there are actually many different types of income. If you have stocks that are generating dividends, that’s income, as is interest you earn on any savings accounts. Do you own a rental property that has rent payments flowing your way? That’s income, too.

Here, you’ll learn about seven common types of income and how they may affect your financial life.

Key Points

•   Income refers to money earned from labor, investments, or other sources, and can be categorized as earned, business, interest, dividend, rental, capital gains, or royalty income.

•   Earned income includes wages, salaries, tips, and bonuses, while business income is generated from products or services provided by a business.

•   Interest income is earned from interest-bearing financial vehicles like CDs or savings accounts, and dividend income comes from stock dividends.

•   Rental income is earned from property rentals, and capital gains are realized when selling assets for more than their purchase price.

•   Royalty income is earned from allowing others to use your property, such as patents or copyrighted work.

What Is Income?

Simply put, income is money that a person or business earns in return for labor, providing a product or service, or returns on investments. Individuals also often receive income from a pension, a government benefit, or a gift. Most income is taxable, but some is tax-exempt from federal or state taxes.

Another way to think about income types is whether it is active (or earned) or passive (or unearned).

•   Active or earned income is just what it sounds like: money that you work for, whether you are providing goods or a service.

•   Passive or unearned income is money you receive even though you are not actively doing anything to get it. For instance, if you have a certificate of deposit (CD) that earns you interest, that is passive income. Government benefits, capital gains, rental income, royalties, and more are also considered passive income. (We’ll go through these variations in more detail in a minute.)

People who are paid a salary may tend to think that their annual paycheck earnings are their income, but in truth, it’s common for many people to have multiple income streams. Granted, your salary may be by far the largest stream of income, but when considering your overall financial picture, don’t forget to think about the other ways that money comes to you.

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Different Types of Income

Now that you know the answer to “What is income?” question, here’s a look at the various kinds of Income. These are usually categorized as seven different types of income (though these may also be called income streams).

1. Earned Income

Earned income is the money you earn for work you do, either in a job or self-employed. Earned income includes wages, salaries, tips, and bonuses.

Earnings are taxed at varying rates by the federal and state governments. Taxes may be withheld by your employer. Self-employed workers often pay quarterly and annual taxes directly to the government. Low-income workers may be eligible for the earned income tax credit.

2. Business Income

Next up: What is business income? This is a term often used in tax reporting; you may sometimes also hear it referred to as profit income. It basically means income received for any products or services your business provides. It is usually considered ordinary income for tax purposes.

Expenses and losses associated with the business can be used to offset business income. Business income can be taxed under different rules, depending on what type of business structure is used, such as sole proprietorship, partnership, corporation, etc.

3. Interest Income

When you invest in various types of interest-bearing financial vehicles, the return is considered interest income. Retirees often rely on interest income to fund their retirement. You can earn interest from a variety of sources including:

•   Certificates of deposit (CDs)

•   Government bonds

•   Treasury bonds and notes

•   Treasury bills (T-bills)

•   Corporate bonds

•   Interest-bearing checking accounts

•   Savings accounts.

In most cases, interest income is taxed as ordinary income. Some types of interest are fully taxable, while other forms (such as interest from Treasury bonds) are sometimes partially taxable.

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4. Dividend Income

Some companies pay stockholders dividends as a way of sharing profits. These are usually regular cash payments that investors can take as income or reinvest in the stock. Dividend income is one of the most common ways investors can make money from stocks. (Worth noting: Money-market funds distributions may seem like interest, but they are usually considered dividends.)

Dividends from stocks held in a taxable brokerage account are considered taxable income. These funds will be taxed at your regular income-tax rate or as a long-term capital gain. By contrast, dividends that are paid from a stock held inside a tax-advantaged savings account such as an IRA or 401(k) are not taxed.

5. Rental Income

Just as it sounds, rental income is income earned from rental payments on property you own. This could be as straightforward as renting a room in your house or as complicated as owning a multi-unit building with several tenants.

Rental income can provide a steady stream of passive vs. active income. It may enhance your livelihood or even be your main income. When your rental property increases in value, you may also gain from that appreciation and increase in equity. In addition, rental income qualifies for several tax advantages, including taking depreciation and some expense write-offs.

But there are downsides. Owning a rental property isn’t for the faint of heart. Unreliable tenants, decreasing property values, the cost of maintaining and repairing properties, as well as fees for rental property managers can all take a bite out of your rental income stream.

6. Capital Gains

Another important income stream can come from capital gains. You incur a capital gain when you sell an asset for more than what you originally paid for it. For the purposes of capital gains, an asset usually means an investment security such as a stock or bond. But it can also encompass possessions such as real estate, vehicles, or boats. You calculate a capital gain by subtracting the price you paid from the sale price.

There is another key point to know on this topic: Two types of capital gains are possible — short-term and long-term.

•   Short-term capital gains are realized on assets you’ve held for one year or less.

•   Long-term capital gains are earned on assets held for more than a year.

The tax consequences are different for each type of capital gain. Short-term gains are taxed as ordinary income, while long-term capital gains are taxed at a lower rate depending on income. Taxpayers could typically pay 0%, 15%, or 20% on long-term capital gains, depending on their income.

Keep in mind, however, that capital losses can happen too. That’s when a capital asset is sold for less than the purchase price. While it’s never pleasant to experience losses, there can be a small silver lining in this case. Many times capital losses can be taken as a tax deduction against current and/or future capital gains.

7. Royalty Income

Royalty income comes from an agreement allowing someone to use your property. These payments can come from the use of patents, copyrighted work, franchises, and more. An example or two:

Inventors who sell their creations to a third party may receive royalties on the revenue their inventions generate. Celebrities often allow their name to be used to promote a product for royalty payments. Oil and gas companies pay landowners royalties to extract natural resources from their property. The market for music royalties has been particularly lucrative in recent years with the proliferation of music streaming services.
Royalty payments are often a percentage of the revenues earned from the other party using the property. Many things impact how much royalty is paid, including exclusivity, the competition, and market demand. How royalty payments are taxed can also vary, depending on the type of agreement.

Now that you’ve reviewed the seven different types of income, you may be wondering, “What about residual income?” That’s a term that doesn’t actually describe money that’s heading your way. Instead, think of that as the amount of your income left over after you’ve paid your financial obligations. It’s similar to discretionary income. Unfortunately, it’s not another way to enrich your bank account.

Recommended: 10 Personal Finance Basics

The Takeaway

Understanding the seven general income streams (such as earned, dividend, and rental income) can help you make the most of your financial planning. Earning income from any of these sources can add stability and help achieve long-term goals, such as saving for retirement. Because some types of income have unique tax implications, it can be important to check with your tax advisor about any tax consequences that may exist.

Aside from earned income, it’s likely that interest is the kind of income most people receive. And seeking out the best possible interest rate can be a solid way to enhance your money; looking for a high-yield bank account may be a good place to start.

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SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 during a 30-day Evaluation Period (as defined below).

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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% 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 Eligible 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 an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% 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 Eligible 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 Eligible 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 Eligible 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 Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://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.


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.

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How Much Does a Graphic Designer Make a Year?

If you have an interest in both art and technology, and a knack for creating distinctive visual designs, you might consider a career as a graphic designer. On average, graphic designers make anywhere from $26,500 and $89,500 a year in the U.S., according to ZipRecruiter.

How much money a graphic designer makes, however, can vary widely depending on education, experience, job location, and industry. But with a little career savvy, you can fulfill your creative passions while avoiding the role of a starving artist.

What Are Graphic Designers?

A graphic designer creates visuals to bring ideas to life. They can render their projects by hand or by using design software. Graphic designers can get paid by the hour or earn a yearly salary working for a company.

Here’s a look at some of the duties you might have as a graphic designer.

•   Designing visual marketing materials: This may include creating brand logos, websites, brochures, advertisements, packaging, and other promotional materials.

•   Targeting an audience: Graphic designers must research and understand their target audience so their product can successfully communicate a client’s message.

•   Creating and editing images: This can include both illustrations and photographs.

•   Choosing colors, layout design, and typography: A graphic designer’s mission is to deliver a product that is effective and eye-catching.

•   Staying current: Designers need to stay up to date with the latest design software and trends.

•   Maintaining deadlines: Graphic designers often need to juggle multiple projects while meeting strict deadlines.

Working as a graphic designer is generally not a job for introverts and antisocial people. While you may do a fair amount of solo design work, you’ll likely be asked to collaborate with copy editors and marketing teams, meet with clients, and present designs to co-workers and clients for feedback.

Recommended: Best Low-Stress Jobs for Introverts With Anxiety

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How Much Do Starting Graphic Designers Make a Year?

While most entry-level graphic designers won’t initially get paid $100,000 a year, it is a position that requires a specific skill set, so you’re likely to earn more than the minimum wage. The average entry level graphic designer salary in the U.S. is $59,801 as of January 26, 2024, but the range typically falls between $53,301 and $68,401.


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What is the Average Salary for a Graphic Designer?

On average, graphic designers make anywhere from $26,500 and $89,500, with the average falling at 55,951.

How much you can earn as a graphic designer ultimately depends on how much experience you have and what particular design niche you choose. For example, a lead graphic designer can make $129,541 per year, while a user interface (UI) designer can bring in as much as $159,500.

While working as a graphic designer is not one of the highest paying jobs in the U.S., those with an interest in both technology and art can find this career deeply fulfilling. The job also provides the opportunity to continually tackle new projects, keeping the work fresh and challenging.

Recommended: What Is a Good Entry Level Salary?

What is the Average Graphic Designer Salary by State?

Geographic location can influence how much money a graphic designer can make in the U.S. Here’s a look at the average graphic designer salary by state.

State

Average Graphic Designer Salary

Alabama $48,622
Alaska $54,797
Arizona $49,991
Arkansas $41,747
California $55,972
Colorado $53,038
Connecticut $48,933
Delaware $61,246
Florida $40,087
Georgia $45,296
Hawaii $53,016
Idaho $53,650
Illinois $48,923
Indiana $51,046
Iowa $48,668
Kansas $45,670
Kentucky $43,911
Louisiana $44,537
Maine $54,522
Maryland $59,274
Massachusetts $55,287
Michigan $43,952
Minnesota $51,011
Mississippi $48,507
Missouri $47,245
Montana $49,237
Nebraska $57,887
Nevada $51,813
New Hampshire $52,808
New Jersey $53,618
New Mexico $50,884
New York $59,198
North Carolina $45,792
North Dakota $54,025
Ohio $49,627
Oklahoma $56,060
Oregon $54,047
Pennsylvania $54,224
Rhode Island $50,061
South Carolina $46,758
South Dakota $51,059
Tennessee $47,380
Texas $53,386
Utah $47,345
Vermont $57,977
Virginia $60,192
Washington $65,386
West Virginia $41,878
Wisconsin $52,969
Wyoming $51,832

Recommended: Is a $100,000 Salary Good?

Graphic Designer Job Considerations for Pay & Benefits

Within the field of graphic design, there are a number of specialty areas you might consider. Here’s a look at some of the most common types of graphic designers.

•   Web designers specialize in creating functional and visually appealing layouts, while ensuring the design elements are user-friendly.

•   User experience (UX) designers craft the user experience of mobile apps, websites, and other products.

•   User interface (UI) designers focus on the visual, interactive elements of apps, websites, and electronic devices to create aesthetically-pleasing interfaces.

•   Illustrators create visual designs for ad campaigns, magazines, books, and other mediums. Some may specialize in medical illustrations or children’s books.

•   Print designers come up with visual images and logos for brochures, business cards, and packaging materials.

•   Identity and branding designers create visual identities for companies and products.

•   Environmental graphic designers create visual designs for physical spaces, including museums, stores, and public spaces.

•   Motion graphic designers can work on animation and moving graphics for TV and movie title sequences, how-to videos, and more.

Degree requirements: To earn competitive pay, most aspiring graphic designers will need to obtain a bachelor’s degree from an accredited graphic design program. You may also need some additional technical training to meet hiring qualifications for the positions listed above.

Job benefits for a salaried graphic designer can include:

•   Health insurance

•   Dental insurance

•   Vision insurance

•   Vacation/sick leave

•   Retirement plan



💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Being a Graphic Designer

Every job has its pluses and minuses. Here a look at some of the advantages and disadvantages of being a graphic designer.

Pros of Being a Graphic Designer

•   Creative fulfillment: Graphic designers get to stretch their artistic muscles by developing captivating visuals for their clients.

•   Good work-life balance: Salaried graphic designers typically work nine-to-five hours. Many have the opportunity to work from home.

•   Freelancing options: If you get tired of working in the same place with the same people, you can choose to freelance. Graphic design is a job you can do anywhere at any time.

•   Being part of a team: You’ll likely collaborate with design team, clients, and marketing professionals.

•   Career longevity: As long as you stay current and on top of your game, you can work as a graphic designer at any age. You could even potentially pick up freelance work as a retiree.

Cons of Being a Graphic Designer

•   Sedentary lifestyle: Being a graphic designer doesn’t require the physical demands of a trade job. You’ll spend a lot of time behind a computer monitor.

•   Solitary work stints: While it’s true you’ll have chances to work with a creative team, much of your hour-to-hour creating happens alone.

•   Stressful deadlines: Even though office hours are typically nine to five, advertising campaigns and projects have hard deadlines you’ll be expected to meet.

•   Difficult clients: Clients may be critical of what you come with, or constantly change their minds.

•   Limited advancement opportunities: Graphic designers tend to stay in their lane. However, you could be moved into a managerial position, and there is still the potential for pay raises every year.

The Takeaway

If you crave expressing yourself as a visual artist, working as a graphic designer can pay you an average of $55,951 a year for doing what you love. Being a graphic designer also allows you to work in an energetic, collaborative atmosphere, while reaping creative and financial rewards.

Whatever career path you ultimately choose, you’ll want to make sure your potential earnings can cover your everyday living expenses. Try creating a budget and check out financial tools that can help track your spending.

With SoFi, you can keep tabs on how your money comes and goes.

FAQ

Can you make $100k a year as a graphic designer?

The average salary on the high end for a general graphic designer is $89,500 in the U.S.. While it’s not impossible to make $100,000, you would have to be at the top of your skill set and acquire some specialized experience.

Do people like being a graphic designer?

For many people, graphic design is a stimulating and rewarding career. Individuals who enjoy working on innovative, visual projects and collaborating with creative teams will probably like being a graphic designer.

Is it hard to get hired as a graphic designer?

Landing a job as a general graphic designer can be competitive. You may find it easier to get hired if you have a particular design specialty, such as UX (user experience), UI (user interface), or product design.


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*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.

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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How Much Does a Truck Driver Make a Year?

The median salary for a truck driver is $49,920 per year, according to the Bureau of Labor Statistics. If you love life on the road and to work independently, a career as a professional truck driver might suit you. What’s more, you may be able to earn significantly more than the average: Truck drivers in the United States can make between $40,000 and $95,000 a year, and possibly even more.

How much a truck driver makes depends on several factors, including what kind of truck you drive, where you work, and your driving experience. Read on to learn more about this. Also, before you decide to hit the gas, it’s wise to investigate the benefits and drawbacks of the trucker lifestyle, which are also reviewed below.

What Are Truck Drivers?

Truck drivers are certified professionals trained to operate large commercial vehicles. They typically deliver large quantities of goods from one location to another.

A truck driver can spend long hours alone on the road, meaning it can be a good fit for introverts and a good job for antisocial people. Most truckers are employed by a trucking company, but some truck drivers make enough money to buy their own rigs and work as independent contractors.

Truck drivers typically must have a commercial driver’s license (CDL) through their state, as well as specialized training and skills in order to drive this kind of vehicle (you’ll read more about this below).

Some of the responsibilities of a truck driver include:

•   Driving and operating commercial vehicles

•   Pre-inspecting the truck

•   Navigating road maps and destination routes

•   Verifying pick-up loads for accuracy and delivering cargo as instructed

•   Loading and unloading the goods

•   Maintaining basic vehicle maintenance

•   Complying with company safe work practices and policies

•   Accurately filling out company paperwork for deliveries

•   Staying current on truck driving permits and qualifications

•   Being able to lift up to 80 pounds repeatedly throughout the day.

Being a truck driver can be a good way to make money as a retiree. In fact, many cargo companies hire retired couples, as they can share the load and get more done together. You and your partner could travel in retirement while making extra income.


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

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How Much Do Starting Truck Drivers Make a Year?

Entry-level truck drivers can make a salary ranging between $32,348 to $52,837, an average of $41, 342 a year. Salaries can vary depending on several factors, including the driver’s experience, the kind of truck they drive, and the homebase location and the cost of living there.

Some commercial trucking companies may pay novice drivers by the hour vs. a yearly salary. Even starting out, a trucker can make more than the average minimum wage, bringing in around $17.73 an hour.

Recommended: Should the Minimum Wage Be Raised?

What is the Average Salary for a Truck Driver?

You’ve already learned that the median salary for a truck driver is just shy of $50,000 a year. That said, there can be the potential to make over $100,000 a year doing this job. Keep in mind, the range of what you can make depends heavily on what kind of truck you drive, your experience, and job title.

Here’s an example of the pay ranges in the truck driving industry:

•   Private fleet driver: $29,992

•   Mining industry driver: $40,655

•   Hazmat driver: $61,068

•   Tanker driver: $$62,166

•   Ice road driver (seasonal): $66,422

•   Regional truck driver: $75,877

•   Oversized truck driver: $82,262

•   Team truck driver: $119,464

•   Owner operator: $320,912

Recommended: Which Trade Jobs Make the Most Money

What is the Average Truck Driver Salary by State?

A big factor in how much money a truck driver makes a month or in a year depends where they live. As with most jobs, trucker salaries can fluctuate from state to state, and some areas may have higher-paying jobs than others.

Here are the averages for local truck drivers by state, in alphabetical order:

State

Local Truck Driver Annual Salary

Alabama $61,983
Alaska $65,071
Arizona $63,728
Arkansas $49,018
California $56,755
Colorado $62,188
Connecticut $59,005
Delaware $58,851
Florida $51,100
Georgia $57,742
Hawaii $63,210
Idaho $54,193
Illinois $57,444
Indiana $65,073
Iowa $59,276
Kansas $54,726
Kentucky $51,665
Louisiana $54,627
Maine $55,568
Maryland $57,034
Massachusetts $65,173
Michigan $51,518
Minnesota $62,568
Mississippi $58,142
Missouri $55,284
Montana $62,767
Nebraska $55,931
Nevada $61,525
New Hampshire $55,251
New Jersey $66,994
New Mexico $63,095
New York $62,095
North Carolina $53,615
North Dakota $64,470
Ohio $61,058
Oklahoma $54,165
Oregon $64,604
Pennsylvania $56,890
Rhode Island $59,839
South Carolina $54,745
South Dakota $60,931
Tennessee $58,297
Texas $53,737
Utah $57,956
Vermont $60,476
Virginia $58,158
Washington $65,467
West Virginia $43,937
Wisconsin $65,631
Wyoming $66,508

Source: ZipRecruiter



💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Truck Driver Job Considerations for Pay and Benefits

In order to become a professional truck driver you have to be 18 to 21 years of age (the requirement differs from state to state) and have a clean driving record, including no DUIs. Most truck companies require their employees to have a high school diploma or a GED, and undergo routine drug tests.

The biggest requirement to becoming a truck driver is obtaining proper certification: your commercial driver’s license (CDL), as mentioned above. Truck driving certification can be done by:

•   Enrolling in a truck driver training program. While not required, these programs can prepare you for the CDL with classroom and hands-on training.

•   Passing a physical exam to determine you are fit enough to handle a commercial vehicle.

•   Obtain a commercial learner’s permit (CLP) via a written exam. This will allow you to drive a commercial vehicle under the supervision of a licensed CDL holder.

•   Getting your commercial driver’s license (CDL). This requires a written and driving exam.

•   Completing additional state requirements for driving vehicles such as tankers and those carrying hazardous materials.

Once you obtain your CDL and are hired by a company, many salaried truck driver jobs can come with the following benefits:

•   Health insurance

•   Paid time off

•   Retirement plans

•   Bonuses and incentives for reaching performance goals]

Pros and Cons of Being a Truck Driver

Being a professional truck driver can provide a solid income and a sense of freedom, but the job isn’t for everyone. Here are the biggest positives and negatives of being a truck driver:

Pros:

•   Potential for a steady yearly income.

•   No college degree required.

•   A quick start; most people can earn their CDL in 3 to 4 weeks.

•   High job demand/job security.

•   Opportunities to buy your own rig and be your own boss.

•   Traveling, sometimes across scenic America.

•   Pet perks: Many companies allow truckers to bring their dogs along for the ride.

•   Good benefits/driving bonuses.

•   An independent work day vs. punching the clock.

Cons:

•   Monotonous hours on the road.

•   Driving fatigue.

•   Unhealthy lifestyle due to long, sedentary stretches behind the wheel.

•   Poor diet. Many truckers exist on fast-food options while on the road.

•   Loneliness. You’ll spend days and possibly nights away from family, friends, and co-workers.

Of course, before embarking on any career, you’ll want to make sure your potential earnings will be enough to cover your expenses. Picking and sticking with one of the different budgeting methods can be helpful.

The Takeaway

How much a truck driver makes a year is on average $49,920, though salaries can vary considerably and soar higher if you own your own business. Being a truck driver can be a good fit for those who enjoy being out on the road and who are introverts, but the long hours and being away from home can be challenging.

FAQ

Can you make 100k a year as a truck driver?

The average truck driver earns $49,920 per year, but you can make $100,000 a year as a truck driver, especially if you own your own truck.

Do people like being a truck driver?

People who don’t mind the long hours and solitude might enjoy being a truck driver. Many truck drivers love the flexibility, salary, and traveling across America.

Is it hard to get hired as a truck driver?

No, it is not that hard. There is currently a shortage of truck drivers in the United States. The demand for CDL drivers is high.


Photo credit: iStock/RichLegg

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*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.

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.

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How Much Does a Marine Biologist Make a Year?

A marine biologist can make an average base salary of $45,781 a year in the United States. This can be an exciting career choice for those who love the water — being in it or near it — and are curious about the mysteries of aquatic life.

How much a marine biologist makes depends on a variety of factors, including where you live, how much experience you have, and your area of expertise. Let’s dive into how you might pursue your passion for the sea, while keeping your finances afloat.

What Are Marine Biologists?

A marine biologist is a scientist who studies the life forms and ecosystems of oceans and saltwater lakes. They typically enjoy collecting data and patiently observing natural phenomena. Marine biologists can play an important role in protecting marine life and promoting environmental sustainability.

While some may imagine marine biology as a solitary job, working quietly in a lab or swimming silently alongside dolphins, it is not necessarily a job for introverts. Most marine biologists make money by collaborating with teams of people and sharing findings within a scientific community.

Some of the duties of a marine biologist can include:

•   Observing animals, microorganisms, and plants in oceans and saltwater lakes

•   Conducting studies on various species of sea animals and their ecosystems

•   Collecting samples of water, ocean plants and microorganisms for laboratory research

•   Performing laboratory experiments, using specialized equipment to assist their research

•   Administering medical care to injured or ill marine animals

•   Tracking migration and the reproductive patterns of fish and other marine mammals

•   Studying geological oceanography, to learn about ocean features such as ridges, trenches, and rises that affect marine environments

•   Discovering how to preserve marine life

•   Promoting environmental sustainability

•   Collaborating and sharing data with other specialists in marine biology

•   Composing scientific papers and reports for peers and the public

•   Giving presentations at educational institutions and museums on marine life


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

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How Much Do Starting Marine Biologists Make a Year?

Starting out, marine biologists can be paid hourly or be given a yearly salary.

The starting hourly rate for a marine biologist is estimated to be around $18.50 — definitely higher than the federal minimum wage.

As the field typically requires professional expertise and commitment to long-term studies, marine biologists are usually paid a yearly salary. An entry level salary for a marine biologist in the United States tends to fall in the $40,000 to $50,000 range.

Most professions, including marine biology, probably aren’t going to offer $100,000 salaries to newcomers in the field. But there are ways to turn your passion for the ocean into more competitive pay opportunities.

What Is the Average Salary for a Marine Biologist?

A typical salary for a marine biologist is $45,781 a year. Here’s a bit more information: According to Indeed.com, the average competitive pay for a marine biologist as of January 2024 can range from $35,034 to $70,061. But some marine biology jobs can pay well above $100,000 a year.

How much a marine biologist makes can rely on your degree status, experience, and area of specialization. For example:

•   The national average for an oceanographer is $79,562 a year.

•   A marine veterinarian, who cares for animals such as sea turtles, fish, and whales, can earn a yearly salary of around $113,418.

•   Other high-paying marine biology jobs include marine biochemists, marine ecologists, marine mammalogists, and marine geneticists. These occupations can pay between $80,000 and $100,000 per year.

While a marine biologist can traditionally be a hands-on occupation, it is viewed as a scientific profession vs. a trade job.

Working marine biologists almost always have a minimum of a bachelor’s degree, with many acquiring a master’s or doctorate in a chosen area. Advanced degrees are often needed for higher paying positions. (These, in turn, can leave a job seeker with student loan debt.)

What Is the Average Marine Biologist Salary by State?

A big factor in how much money a marine biologist makes depends on where they live. This means that state by state salaries will fluctuate. Here’s a look at average salaries by state, arranged alphabetically.

Average Salary by State for a Marine Biologist

State

Median Salary for a Marine Biologist

Alabama $37,712
Alaska $42,501
Arizona $38,773
Arkansas $32,379
California $43,412
Colorado $41,136
Connecticut $37,953
Delaware $47,502
Florida $31,091
Georgia $35,132
Hawaii $41,119
Idaho $41,611
Illinois $37,945
Indiana $39,592
Iowa $37,746
Kansas $35,422
Kentucky $34,058
Louisiana $34,543
Maine $42,287
Maryland $45,973
Massachusetts $42,881
Michigan $34,089
Minnesota $39,565
Mississippi $37,623
Missouri $48,370
Montana $38,189
Nebraska $44,898
Nevada $40,186
New Hampshire $40,958
New Jersey $41,586
New Mexico $39,466
New York $45,915
North Carolina $35,516
North Dakota $41,902
Ohio $38,491
Oklahoma $43,480
Oregon $41,919
Pennsylvania $42,056
Rhode Island $38,827
South Carolina $36,266
South Dakota $39,602
Tennessee $36,749
Texas $41,406
Utah $36,721
Vermont $44,968
Virginia $46,686
Washington $50,714
West Virginia $32,481
Wisconsin $41,083
Wyoming $40,201
Source: ZipRecruiter



💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Marine Biologist Job Considerations for Pay and Benefits

You can increase your salary range as a marine biologist if you are willinging to move to a higher-paying state, acquire an advanced degree, or specialize in certain areas of the field. But some factors that determine your salary are out of your control, including:

•   Funding/budget for your organization.

•   Type of organization, meaning private vs. public

•   Economic conditions

•   Demand for your skill set.

Since the majority of marine biologists secure a yearly salary, you may receive the following job benefits, among others:

•   Health coverage

•   Paid sick leave

•   Vacation days

•   Retirement plan participation.

While pursuing a salaried position as a marine biologist, make sure you understand how much you need to make to maintain a comfortable lifestyle. Try creating a budget and check out financial tools that can help track your expenses vs. your income.

Pros and Cons of Being a Marine Biologist

If you have a scientific mind and love the water and marine life, being a marine biologist could be a dream job for you. Of course, even dream jobs can have their downsides.

Here are some of the pros and cons of working in the field of marine biology

Pros:

•   Traveling to new locations. Many marine biologists travel the world, with the oceans as their laboratories.

•   Working with a network of diverse people. Marine biologists work collaboratively, sharing data and consulting with a range of experts in the field.

•   Using state-of-the-art equipment. Marine biologists can have access to sophisticated, high-tech gear in order to further their studies.

•   Evolving your career. There are many ways to branch out into specialized fields in marine biology, so you can continue to excite your mind and, potentially, raise your salary.

•   Making a difference. Marine biologists have a chance to make an impact on serious environmental issues, especially in the areas of conservation and preservation.

•   Earning a good salary for something you love, especially if you pursue advanced degrees that open doors for highly paid positions.

Cons:

•   Long, isolated working hours. A marine biologist can be assigned to a research position out at sea for long periods of time. Being away from friends and family can take an emotional toll.

•   Physically demanding. Out in the field, you may be subject to severe weather conditions — extreme cold and sweltering heat.

•   Dangerous conditions. Typhoons, hurricanes, and storms at sea can put marine biologists at risk for injury.

•   Emotionally draining. Some marine biologists, when they see firsthand how humans are affecting the environment, may feel powerless to reverse the harm, which can be upsetting.

The Takeaway

The average figure for how much a marine biologist makes a year is $45,781. A career as a marine biologist can provide a sense of adventure and helping protect the earth’s waters and aquatic creatures. It can involve travel and exploration which, depending on your outlook, can be a real plus, while allowing you to earn a living.

FAQ

Can you make 100K a year as a marine biologist?

Some specialized marine biologists can command a salary of $100,000 or more a year, including marine veterinarians, marine biochemists, marine ecologists, marine mammalogists, or marine geneticists. The average marine biologist, however, may only earn half that amount.

What do people like about being a Marine Biologist?

Some marine biologists love traveling to distant places, working with marine life, meeting new people, and working toward having a positive environmental impact.

Is it hard to get hired as a Marine Biologist?

Finding a job as a marine biologist can depend on your field of expertise. Most marine biologists have, at a minimum, a bachelor’s degree, with many acquiring a master’s or doctorate. In addition, job opportunities will rely heavily on being able to relocate, if needed, to an area being studied.


Photo credit: iStock/Rainer von Brandis

*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.

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.

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.

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Do I Need Uninsured Motorist Insurance?

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage shields you from having to pay for injuries and property damage in accidents that weren’t your fault and were caused by an uninsured driver.

According to the Insurance Research Council, 14.0% of motorists on the road are uninsured. Purchasing uninsured motorist coverage reduces the likelihood that you’ll have to pay out of pocket if you’re involved in an accident caused by one of these irresponsible drivers.

It’s generally a good idea to add uninsured motorist coverage to your auto insurance policy, as it’s fairly inexpensive, usually only costing an extra $5 – $10 a month, per vehicle, for policyholders with clean driving histories. Below, we give you the scoop on the different kinds of uninsured motorist coverage and what these policies entail.

Breaking Down Uninsured Motorist Coverage Variations

There are two main kinds of uninsured motorist coverage. Similar to your standard auto insurance policy’s collision and bodily injury coverage, this kind of policy breaks down into uninsured motorist bodily injury coverage and uninsured motorist property damage coverage.

•   Uninsured motorist bodily injury coverage: Covers your party’s medical expenses and related costs in accidents caused by uninsured drivers.

•   Uninsured motorist property damage coverage: Covers your repair bills and related costs in accidents caused by uninsured drivers.

Bodily injury and property damage coverage for uninsured motorists are sometimes packaged and sold together when you purchase uninsured motorist insurance. However, this isn’t the case with all policies; check with your insurance provider to know for sure. Now, let’s take a closer look at each of these kinds of coverage.

Uninsured Motorist Bodily Injury Coverage (UMBI)

Uninsured motorist bodily injury coverage (UMBI) pays for the cost of medical bills, lost wages, pain and suffering, and funeral costs (though we hope that is never needed) in the event an uninsured driver causes an accident in which you’re the victim.

In some instances, this policy may pay out if you, as a pedestrian or bicyclist, are involved in an accident caused by an uninsured driver. Check with your insurance provider to confirm whether this might be covered.

UMBI typically does not have a deductible to meet; you would get full reimbursement of the costs.

Uninsured Motorist Property Damage Coverage (UMPD)

Uninsured motorist property damage coverage (UMPD) pays for the cost of repair bills for either your vehicle or property in the event either is involved in an accident caused by an uninsured driver.

Unlike bodily injury coverage, UMPD often requires the payment of a deductible when used. This is usually set by state law and typically is between $100 and $1,000.


💡 Quick Tip: If your car is paid off and worth only a few thousand dollars, consider updating your car insurance: You might choose to opt out of collision coverage and double down on liability.

Uninsured vs Underinsured Motorist Coverage

Here’s another kind of coverage you should know about: underinsured motorist coverage, which helps cover your costs if you’re involved in an accident where the party at fault has insufficient insurance coverage to pay for your medical costs.

Underinsured motorist coverage differs from uninsured motorist coverage in that it’s designed to cover any shortfalls in your costs due to the underinsured motorist’s inadequate insurance policy. By contrast, uninsured motorist coverage covers your bills due to the uninsured driver’s failure to purchase insurance.

Similar to uninsured motorist coverage, underinsured motorist coverage also comes in bodily injury and property damage variants. Both bodily injury and property damage coverage is usually packaged and sold together, though insurance policies may vary.

Underinsured motorist coverage is sold separately from uninsured motorist coverage, and states can have different coverage requirements for each. Check with your insurance provider to verify whether you need to purchase these separately.

Uninsured Motorist Coverage Limits

Your auto insurance quote will typically break down your uninsured motorist coverage limits into two numbers: a smaller dollar figure followed by a larger dollar figure, separated by a slash. For example, $100,000/$300,000.

This can also be expressed as follows:

•   $100,000 per person

•   $300,000 per accident

These two numbers represent the per person and per accident coverage limits of your uninsured motorist insurance. The per person limit is the maximum your insurance company will pay for any single individual injured in a covered accident. Conversely, the per accident limit is the maximum your insurance company will pay for a covered accident, regardless of how many injured people are in your party.

How Uninsured Motorist Coverage Limits Work

If you’re thinking, “But what exactly does that mean?” we hear you. Let’s spell out how this coverage would work. If you have a family of five that’s riding in a car and it gets hit by an uninsured driver, the maximum amount your insurance company will pay for their cumulative medical bills is $300,000, despite each individual’s coverage limit being $100,000.

If you’re ever involved in an accident caused by an uninsured driver where your costs exceed your coverage limits, in most cases, your health insurance policy will usually kick in to cover the balance. Consult your insurance providers for the specifics on your policies.

Recommended: How Much Auto Insurance Do I Really Need?

How Much Uninsured Motorist Coverage Do I Need?

The answer depends on whether your state requires uninsured motorist coverage. If it does, you must buy at least the state’s minimum (for more details, see below). Typically, this amount will match your liability coverage amounts. If your state does not require this kind of coverage, consider variables like the healthcare costs in your state and how much your vehicle is worth. Generally, uninsured motorist coverage is fairly affordable and is a worthy investment for some peace of mind.

According to the Insurance Research Council, approximately one in seven drivers on the road are uninsured. This figure is even higher in states like Mississippi and Michigan, where over 25% of drivers on the road are estimated to be uninsured.

Based on those figures, residents of higher risk states may be well-served by purchasing uninsured motorist coverage, while it might not be as high of a priority for residents of lower-risk states, like Massachusetts or New Jersey, where 3.5% and 3.1% of drivers respectively are estimated to be uninsured.

Now, let’s circle back to the states that do require this kind of policy. The table below lists the regulations regarding the minimum required uninsured and underinsured motorist coverage for each state.

Recommended: What Does Liability Auto Insurance Typically Cover?

Uninsured/Underinsured Motorist Coverage Requirements by State

Let’s take a look at the guidelines in every state, so you can see how much coverage may be required where you live. In each category, the amount shown is per person/per accident. When there is not a figure in an area of the chart, that means the insurance isn’t required.

State

Uninsured Bodily Injury

Uninsured Property Damage

Underinsured Bodily Injury

Underinsured Property Damage

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut $25,000/$50,000 $25,000/$50,000
Delaware
District of Columbia $25,000/$50,000 $5,000
Florida
Georgia
Hawaii
Idaho
Illinois $25,000/$50,000 $25,000/$50,000
Indiana
Iowa
Kansas $25,000/$50,000 $25,000/$50,000
Kentucky
Louisiana
Maine $50,000/$100,000 $50,000/$100,000
Maryland $30,000/$60,000 $15,000 $30,000/$60,000 $15,000
Massachusetts $20,000/$40,000
Michigan
Minnesota $25,000/$50,000 $25,000/$50,000
Mississippi
Missouri $25,000/$50,000
Montana
Nebraska $25,000/$50,000 $25,000/$50,000
Nevada
New Hampshire* $25,000/$50,000 $25,000 $25,000/$50,000 $25,000
New Jersey $15,000/$30,000
New York $25,000/$50,000
North Carolina $30,000/$60,000 $25,000 $30,000/$60,000 $25,000
North Dakota $25,000/$50,000 $25,000/$50,000
Ohio
Oklahoma
Oregon $25,000/$50,000
Pennsylvania
Rhode Island
South Carolina $25,000/$50,000 $25,000
South Dakota $25,000/$50,000 $25,000/$50,000
Tennessee
Texas
Utah
Vermont $50,000/$100,000 $10,000 $50,000/$100,000 $10,000
Virginia* $30,000/$60,000 $25,000 $30,000/$60,000 $25,000
Washington
West Virginia $25,000/$50,000 $25,000
Wisconsin $25,000/$50,000
Wyoming

*New Hampshire and Virginia do not require drivers to purchase auto insurance, but drivers who do choose to purchase auto insurance must have at least the minimum uninsured/underinsured motorist coverage amounts listed.

Recommended: 5 Steps to Switching Your Car Insurance

How Much Does Uninsured Motorist Coverage Cost?

Depending on how much uninsured motorist coverage you choose to purchase and your personal driving habits, your costs could be as little as $5 to $10 per month. This figure also tends to vary widely based on the overall percentage of uninsured motorists in your area, according to national insurance data.

Insurance premiums vary widely across drivers, states, and even insurance providers, so make sure you check around for a personalized quote.


💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.

The Takeaway

The prospect of being in an accident caused by an uninsured driver is a real concern, given the number of these motorists on the road. Adding uninsured motorist coverage to your auto insurance policy may be a good idea. In some states, it may even be required by law. For a relatively low cost, you can protect yourself from the possibility of being left with bills because another driver didn’t have enough insurance. The right package of car insurance policies is one way to protect yourself from unexpected circumstances.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.


Photo credit: iStock/RyanJLane

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
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.


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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