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People who are introverts can succeed in almost any job that interests them. Contrary to what many people might think, introverts aren’t necessarily shy, but they do like working independently or in small groups. They typically are drawn to inner thoughts and ideas versus focusing on external matters. In addition, they may prefer having some quiet time to reflect and recharge instead of a job that requires nonstop meetings.

Thankfully, there are plenty of jobs that can suit this personality type and offer a challenging and fulfilling career path. Read on to learn more about this topic.

What Makes the Ideal Job for an Introvert?

According to conventional psychology, introverts prefer to spend time with just one or two people, rather than larger groups or crowds. They’re not necessarily loners; in fact, many introverts have highly developed social skills. However, introverts tend to gravitate toward situations and environments where they feel less pressure to react or respond quickly or to engage with multiple people (say, constantly leading major team meetings).

An ideal job for an introvert may allow them to:

•   Work independently

•   Work alone or in quiet spaces that allow them to think and deploy their analytical and decision-making skills

•   Focus on one task at a time

•   Engage one-on-one (or “one on a few”) instead of in large groups

•   Leverage their empathy and creativity

What Kind of Work Does Not Fit an Introvert

As noted above, jobs that require a lot of collaboration with or presentations to large groups of people may not be a great fit for introverted people. Introverts are likely to be less comfortable with jobs that involve loads of group brainstorm sessions or that require them to regularly verbalize their thoughts and feelings to multiple people at once.


💡 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.

30 Jobs for Introverts Without a Degree

Finding a rewarding job as an introvert means finding a career that suits your interests and caters to your inner-directed personality type, as described above.

Here are 30 jobs that can be a great match for introverts, with salary information from the Bureau of Labor Statistics:

1. Web Developer or Digital Designer

•   2023 Median Salary: $92,750

•   Primary Duties: This career is all about the design, coding, and development of websites for optimal performance and user experience. This could be a job where an introvert works solo all day, or it might involve small team collaborations. With its union of creativity and analytical insights, web development can be a great option for introverts.

2. Farmer or Rancher

•   2023 Median Salary: $83,770

•   Primary Duties: The image of farmers and ranchers working solo in wide open spaces is iconic. While that can be true, this career may involve some interaction with others on a work team. Primary duties are overseeing the production of crops, livestock, and dairy products.

3. Psychologist

•   2023 Median Salary: $92,740

•   Primary Duties: Psychologists can work in a variety of settings, from a medical center to private practice, but the field involves assessing and supporting cognitive and emotional wellness. This can be a very rewarding career for introverts who want to channel their empathy and social skills.

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4. Plumber, Pipefitter, or Steamfitter

•   2023 Median Salary: $61,550

•   Primary Duties: This career is all about installing and repairing pipe fixtures. There aren’t many meetings, nor lots of large-group interactions. Introverts can enjoy the focus and problem-solving this job demands.

5. Postal Service Worker

•   2023 Median Salary: $56,510

•   Primary Duties: Typically, this work involves collecting, sorting, and delivering mail to businesses and private residences or else helping post office customers. It can give introverts the opportunity to work alone or have small-scale interactions.

6. Social Worker

•   2023 Median Salary: $58,380

•   Primary Duties: Social workers help people resolve problems in their lives. Introverts who are empathetic listeners, enjoy helping others, and find lots of one-on-one interaction satisfying will likely enjoy social work.

7. HVAC Technician

•   2023 Median Salary: $57,300

•   Primary Duties: This job requires workers to assemble and repair heating, cooling, and ventilation systems. It can suit the mechanically inclined and those who like to be immersed in hands-on problem solving.

8. Environmental Scientist

•   2023 Median Salary: $78,980

•   Primary Duties: In this job, a person uses their knowledge of nature to improve the environment and human health. It can involve time in the outdoors and the lab, with opportunities to focus on and interpret research data.

9. Delivery Truck Driver

•   2023 Median Salary: $39,950

•   Primary Duties: For those who like lots of solo time and the feeling of being on the open road, being a delivery truck driver can be a dream job. Duties involve the pickup, transport, and delivery of packages or goods from one location to another.

10. Writer or Author

•   2023 Median Salary: $73,690

•   Primary Duties: Writing is a diverse career, ranging from writing fiction books to completing technical writing for manufacturers. It can allow an introvert to explore a particular passion of theirs in print and often involves a good amount of independent work.

11. Librarian

•   2023 Median Salary: $64,370

•   Primary Duties: This can be a fulfilling career for introverts; most interactions involve collaborating with individuals seeking help with research. Plus, it taps both creativity and problem-solving skills and usually has a not too frenetic pace. Bonus: Librarians tend to work in very quiet environments.

12. Physician

•   2023 Median Salary: $236,000

•   Primary Duties: This demanding career requires a high level of training. With a salary well into the six figures, this is one of the highest paying jobs on our list. It offers the rewarding work of interacting one-on-one with patients and other members of a medical team to help people achieve optimal health and to treat illnesses.

13. Roofer

•   2023 Median Salary: $50,030

•   Primary Duties: For introverts who value independence and enjoy problem solving, being a roofer can be a good fit. Most of the workday is spent replacing, repairing, and installing roofs on buildings and houses. Working remotely is not an option.

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14. Surveying and Mapping Technician

•   2023 Median Salary: $48,940

•   Primary Duties: Collecting data and taking land measurements in order to create maps of the Earth’s surface is a unique job, melding creative and analytical pursuits. It’s unlikely to involve many large meetings and can give introverts the “think time” they love.

15. Mechanic

•   2023 Median Salary: $51,940

•   Primary Duties: This job can be a good fit for those who like to work with their hands and problem-solve with a small team as they troubleshoot and repair automobiles and other forms of transportation.

16. Bookkeeper

•   2023 Median Salary: $47,440

•   Primary Duties: Love a good spreadsheet and balancing finances? Being a bookkeeper can provide satisfying work for those who enjoy working with numbers. The role also has potential as a work-at-home job for retirees.

17. Interpreter or Translator

•   2023 Median Salary: $57,090

•   Primary Duties: Provided one has deep knowledge of a foreign language, this can be a solid job for introverts, collaborating one-on-one or in small groups to convert one language into another. Some jobs may strictly involve texts versus in-person interaction.

18. Software Quality Assurance Analyst or Tester

•   2023 Median Salary: $101,800

•   Primary Duties: Techies, this one is for you: This path typically involves testing software to identify and debug problems or to learn how the software works. This can offer plenty of focused work time.

19. Marketing Manager

•   2023 Median Salary: $156,580

•   Primary Duties: This potentially high-earning career focuses on managing outreach to build a business or a brand. This can tap an introvert’s creativity and analytical skills. Small team meetings and travel to meet with clients may be part of the job.

20. Photographer

•   2023 Median Salary: $40,760

•   Primary Duties: Photographers produce, shoot, and potentially edit (hello, Photoshop!) images for personal or professional use. It’s a highly creative pursuit that may suit an introvert’s personality type.

21. Proofreader

•   2023 Median Salary: $48,790

•   Primary Duties: This can be a satisfying job, tapping an introvert’s analytical abilities and giving them space to think as they read content and correct spelling, punctuation, and grammatical errors. Proofreading is usually a quiet, somewhat solitary profession.

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22. Landscaper

•   2023 Median Salary: $37,360

•   Primary Duties: There’s not too much large group interaction if you’re a landscaper. Workdays are spent maintaining outdoor grounds by mowing, trimming, planting, watering, fertilizing, raking, and other methods.

23. Physician Assistant (PA)

•   2023 Median Salary: $130,020

•   Primary Duties: Assisting both physicians and patients can put an introvert’s empathy and technical know-how to good use. It does require specialized training: A PA is one step below doctor and a step above nurse — similar to a nurse practitioner.

24. Animal Trainer

•   2023 Median Salary: $44,910

•   Primary Duties: Dog, horse, and other animal lovers may find this to be an ideal career, with time spent teaching animals obedience and staying calm, and assisting people.

25. Medical Transcriptionist

•   2023 Median Salary: $37,060

•   Primary Duties: Medical transcriptionists, as the name indicates, transcribe voice recordings from physicians and nurses and convert them into written reports. This can provide a career with plenty of “quiet time” for detail-oriented introverts.

26. Floral Designer

•   2023 Median Salary: $34,690

•   Primary Duties: A floral designer can spend their days arranging decorative displays using live, dried, or silk flowers, which can be a creative endeavor without too many big meetings.

27. Data Scientist

•   2023 Median Salary: $108,020

•   Primary Duties: Data scientists deploy analytical tools and techniques to pull valuable insights from data. This is a growing field in today’s digitized world.

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28. Teacher

•   2023 Median Salary: $64,390

•   Primary Duties: Teachers and instructors are responsible for helping students of different ages learn various topics and skills. The job may tap an introvert’s empathy, and it may involve small meetings with students or their parents. Bonus: Teaching can be one of those jobs that pay off student loans through the Public Student Loan Forgiveness (PSLF) program.

29. Hand Sewer

•   2023 Media Salary: $32,240

•   Primary Duties: Technically speaking, this job is about sewing and finishing items with needle and thread. It can suit craft-oriented, creative, and independent workers who like the mental space it provides.

30. Accountant

•   2023 Mean Salary: $79,880

•   Primary Duties: An accountant prepares or reviews financial records, tapping their analytical skills. This career can incorporate interactions with individual clients or businesses, which may suit introverts well.

Recommended: 25 Best Jobs for Extroverts That Pay Well

The Takeaway

There are many challenging and satisfying jobs that can suit introverts, from writer to data scientist to physician. In fact, many high-paying and rewarding jobs are well-suited to the personality traits of an introverted person.
Introvert or not, everyone can benefit from better budget planning and tools that give you back control of your finances.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What are good jobs for introverts?

There are many jobs that suit introverts well and leverage their empathy, creativity, and analytical skills. These can include being a research librarian, physician, or landscaper, among other careers.

Is self-employment good for introverts with anxiety?

Self-employment can be a good fit for introverts who experience anxiety working with large teams or with multiple people. However, self-employment can also create stress if it requires you to find your own clients or manage a large workload on your own.

What is a good job for someone with introverted qualities?

Jobs that allow you to work independently and in quiet environments at least some of the time are generally better for introverts, as are those that involve one-on-one interaction versus large group meetings.

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Photo credit: iStock/Wiphop Sathawirawong

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

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

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.

SORL-Q224-1921098-V1

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Gross income is the amount of money earned before any payroll deductions for taxes, insurance, retirement contributions, and such. To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

The calculation for gross monthly income can differ depending on paycheck frequency. Below we’ll show you how to calculate your gross pay for different payroll schedules.

How to Calculate Monthly Pay From Biweekly Pay

There are two different monthly pay figures to understand, gross and net. Each is useful in different situations. When you’re applying for a loan, most lenders use gross monthly income to determine your debt-to-income ratio (DTI). However, many people find it easier to budget based on net or take-home pay. A budget planner app can help you decide the best approach for your situation.

As we spelled out above, if you’re paid biweekly (every two weeks), the formula for gross monthly income is:

(Gross pay amount × 26) ÷ 12

Hourly workers can also use this next formula if they work a consistent number of hours per week:

(Hourly salary × weekly hours worked × 52) ÷ 12

To find net monthly pay, substitute the actual amount of your paycheck for the gross amount in the first formula.

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How Many Bi-Weeks in a Year

There are 26 biweekly pay periods in a year. Employees who get paid biweekly will receive 26 paychecks from January to December.

It’s important to note that receiving pay biweekly differs from receiving pay twice a month on the same dates. Workers who receive biweekly checks can’t just multiply one paycheck by two to find their monthly salary.

Employees who get paid twice a month — for instance, on the 15th and 30th — can find their monthly gross income simply by adding together the gross figures on their two monthly paychecks.

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The Different Types of Payment Periods

The most common pay periods for employees are:

•   Biweekly: Paid every other week, or 26 paychecks per year.

•   Semimonthly: Paid twice a month on the same dates, or 24 checks per year.

•   Weekly: Paid once a week, or 52 checks per year.

•   Monthly: Paid once a month, or 12 checks per year.

Employees who receive biweekly pay get two checks or direct deposits each month, except for two months of the year when they receive three paychecks. Employees who are paid biweekly might get a paycheck every other Wednesday or Friday, or whatever day their employer chooses.

With semimonthly pay, an employee might get paid on the 15th and 30th of every month. There are always two paydays, for a total of 24 per year instead of 26.

An employee who gets paid twice a week is on a semiweekly schedule. This would entail eight paychecks each month.

Pros and Cons of Biweekly vs Semimonthly Pay

For employees, there are pros and cons to biweekly pay. Depending on their expenses and savings strategy, someone might prefer a biweekly or semimonthly schedule.

For most workers, the main pro to biweekly pay is the third “bonus” check they receive two months out of the year. By budgeting for two paychecks every month, workers can designate the occasional third check for special line items like vacations, holiday gifts, paying off debt, or boosting savings.

For others, biweekly checks just make budgeting and managing expenses more challenging. Semimonthly pay is preferable because it offers an accurate reflection of real monthly income.

Also, each semimonthly check can be dedicated to particular expenses. For example, the second check of the month can go to rent, utilities, and other housing costs, which are often due the first of the month.

Compared to weekly paychecks, both biweekly and semiweekly checks require better cash management on a weekly basis. For someone who lives paycheck to paycheck, biweekly pay periods might mean they run out of money before the next check arrives.

The Takeaway

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub, multiply by 26, then divide by 12. (Do not use this formula if you’re paid twice a month on the same dates, rather than the same days of the week.) For your monthly net pay, substitute your net or take-home pay for the gross amount in the same calculation.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

How do you convert biweekly pay to monthly income?

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

How do I calculate my gross monthly income?

Gross monthly income is the total of all paychecks and income received in a month, including any side hustles, rental income, etc., but before taxes and other deductions.

How do you calculate gross income from a W-2 form?

Gross wages cannot always be found on a W-2 form due to various pre-tax deductions. Instead, look at the gross amount listed on the employee’s final paycheck for the year.

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Photo credit: iStock/Eva-Katalin

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

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

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.

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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While bad financial decisions can set you back, it’s important to remember that mistakes can also be an opportunity to learn and grow. While you can’t go back and undo the things you’ve done or didn’t do (if only!), you can acknowledge where you went wrong and change your behavior moving forward.

Below, take a look at some of the most common financial missteps people make, as well as what can be done to overcome them.

15 Bad Financial Decisions

Here’s a look at where things can go wrong, and how you set them right.

1. Not Paying Down Your Credit Card Debt

Just making the minimum payment on your credit cards each month can drain your pockets and damage your credit. The reason: When you carry a balance, interest keeps on building, making the total balance higher and even more challenging to pay off. Debt also shows up on your credit report and can have a negative effect on your scores.

To break the pattern, consider putting any extra money toward the card with the highest interest rate, while paying the minimum on the rest. When that card is paid off, you can tackle the next-highest interest debt, and so, until you’re out of debt.

Recommended: Creating a Credit Card Debt Elimination Plan

2. Putting Important Financial Decisions off to the Side

Delaying important financial decisions, such as saving, investing, and paying off debt, can cost you money and put your goals further out of reach. A good way to stop the procrastination cycle is to break down your financial goals into small to-dos that feel manageable. You might want to set aside time once a month to check in on your finances and make one small change that can help you get closer to your goals.

3. Not Protecting Personal Financial Information From Fraud

Identity theft and financial fraud are all too common these days, and not taking a few steps to protect your personal and financial information can come back to haunt you. The financial damages caused by fraud can last for months or even years. What’s more, the recovery process usually isn’t easy, and may even involve working with the IRS or Social Security Administration to clear your name.

To protect your information, it can be smart to regularly check your credit reports (and report any suspicious activity immediately). You’ll also want to avoid sharing your personal data unless absolutely necessary and never over public wifi.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

4. Overspending so You Can’t Save

Overspending means you’re spending everything you earn (and not putting anything into savings) or, worse, you’re spending more than you’re bringing in. This can be a costly financial mistake that puts your goals further from your grasp. It means you may be living just paycheck to paycheck.

To change course, you may want to take a look at the last three months of financial statements and assess exactly how much you are spending each month and on what. This can be eye-opening, and you may immediately see some easy ways where you can cut back. Any money you free up can then become money saved, and little by little, it will add up.

5. Not Having Any Backup Options

A recent study found that not even 44% of Americans could not afford an unexpected expense of $1,000 from their savings. Without an emergency cushion, many Americans are at risk of going into high-interest debt should they face an unexpected bill or any loss of income.

It’s generally recommended to have enough cash set aside to cover all your living expenses for three to six months. In some situations, this amount should be as much as 12 months. To get there, you may want to put a percentage (10%, for example) of your monthly take-home income into a high-yield savings account or online bank account — online banks often offer higher interest rates than traditional banks. If that doesn’t seem doable, it’s fine to start smaller and gradually work up. Consistently saving a modest amount, such as $25 per paycheck, can be a good habit to start.

6. Paying High Amounts on Multiple Monthly Subscriptions

Subscription streaming services, box deliveries, and apps that bill on a monthly basis can add up to a significant sum. And, since these service providers typically bill automatically, you may not even be fully aware of what you are paying for each month, or that you may be overpaying for some of these services.

To cut your monthly bills, go through your statements and tally up everything you are currently paying for on a recurring basis. Can anything go? Could you get a better deal on some of these services? It never hurts to shop around or call up a service provider and ask for a lower price.

7. Not Investing Any of Your Money

You may think you have to be rich or an expert on stocks to start investing, but this is a common money misconception. And one that can leave you ill prepared for the future.

While investing can be intimidating (and does come with some risk), there are easy ways to get started. If you don’t want to do the work of picking and choosing investments, for example, you might start investing with a robo-advisor. These are digital platforms that provide automated investment services based on your goals and tolerance for risk. Robo-advisors are typically inexpensive and require low opening balances.

8. Not Planning for Retirement

When you don’t plan for retirement, you forgo the factor of time that is key to achieving your goals. Giving your investments a long time to grow is vital to having a nest egg you can retire on. If your employer puts any matching funds towards your retirement fund, that can be a valuable boost, too.

However, there is more to retiring than starting an IRA or contributing to a 401k. You’ll also want to consider when you want to retire, what kind of lifestyle you will want to lead, and how much money you will need. This can help you determine how much you should be putting away each month starting now.

9. Making Small but Unnecessary Purchases

An iced cappuccino here, a pay-per-view there. These little extras may not seem like a big deal, but they add up. Consider that spending just $50 a week eating out costs you $2,600 a year. That sum could go a long way toward paying off your credit card or car and help you take a big step toward achieving financial freedom.

To curb impulse buys and cut back on spending, you might want to set a weekly spending limit for “extras.” (Yes, you are earmarking some money for fun little splurges.) To keep to your limit, consider taking out that amount of cash at the beginning of the week and leaving your credit card at home. That way, when the money’s gone, you can’t spend any more.

10. Allowing Your Credit Score to Drop

A low credit score can keep you from obtaining competitive rates on loans and credit cards. It could block you from housing and employment opportunities. Poor credit can also be costly, since the financing options available to you will be more expensive.

To start building a better credit profile, you may want to put all your bills on autopay, so you never make a late payment. Paying down any credit card debt can also be helpful, since how much of your available credit you are using also factors into your score. If you have an old credit card you rarely use, it can be a good idea to still keep that account open, since the length of your credit history is another factor that impacts credit scores.

11. Not Making Budgeting an Important Priority in Your Life

Budget may sound like a bad word. But in truth, not tracking how much money you’re making versus how much you’re spending can be a bad financial decision with many repercussions, including never getting ahead and having constant money stress.

Making a budget, on the other hand, can mean the difference between staying in debt vs. getting out of it, remaining in your rental vs. becoming a homeowner, and working overtime vs. going on vacation. Convinced? You can start budgeting by assessing what’s currently coming in and out of your bank each month, and making a plan for how you want to allocate your income, making sure that some money goes to savings each month. There are multiple budget methods and apps; take some time to experiment until you find the right fit.

12. Financing Purchases Rather Than Saving for Them

While some purchases, such as a house, usually require financing, many others can be achieved through saving instead of going into debt. Whether you want a new laptop or a high-end refrigerator, financing can make a big purchase more expensive. Plus, the ease of buying on credit can make you think you can afford a lot more than your income allows.

A wiser strategy can be to determine what you want to buy, how much it will cost, and when you, ideally, want to get it. You can then start putting money aside each month and when you meet your goal, buy the item with cash.

13. Using Savings to Pay Off Debt

It may seem counterintuitive, but paying off debt with your savings is not always a good idea. Draining your bank account can leave you vulnerable to financial emergencies, causing you to plunge back into debt.

A better strategy can be to use a debt repayment method such as the snowball method. This involves putting extra money toward the smallest revolving debt balance each month, while continuing to make minimum monthly payments on your other debt. When the smallest balance is paid off, you can move on to the next smallest balance, and so on. This can help you start saving money right away and motivate you to keep going.

14. Withdrawing From Retirement Savings Early

It can be exciting to watch your retirement account grow throughout your career. And, it can be tempting to want to touch that money before you are officially “retired.” However, taking early distributions from your retirement account can be among the worst money mistakes you can make. For one reason, you will likely have to pay penalties and income tax on the amount you withdraw. For another, you will lose the opportunity to continue accruing gains on that money.

Remember: The main benefit of a retirement account is to let your money compound and grow over time. When you withdraw retirement funds early, you lose that opportunity to secure your future and take a big step backward.

15. Not Recognizing and Avoiding Scams

Yes, it’s getting harder to detect scams; they are becoming ever more sophisticated. And they prey upon both young and old consumers. To avoid scams, you’ll want to be suspicious of any text, email, or snail mail offer that seems too good to be true, and avoid clicking on any links in an email or text claiming to be from one of your financial institutions. If you receive this kind of message, a smart move is to call customer service or log onto your online accounts to see if the information in the email or text is correct.

Also beware of appeals with a sense of urgency; say, that you must pay a fee immediately to unlock your account or receive delivery of an important package.

Since scams are constantly evolving, it’s worth your time to search online every six months or a year to see what’s new and make sure you have your guard up as much as possible.

Tips for Recovering From Bad Financial Decisions

If you’ve made some poor financial decisions, you might feel embarrassed or scared. It can help to remember that one accident or blunder doesn’t spell doom for your finances forever. Here are some ways you can start turning things around.

Acknowledging Bad Financial Decisions and Taking Action

Even if you’ve made one of the worst money mistakes, a smart first step is to simply acknowledge your misstep, take a step back, and at first do nothing. A rash attempt to fix a problem can actually make it worse. Once you’ve accepted and assessed the damage, you can put a recovery plan into action.

Taking Steps One at a Time

Building your credit or paying off a mountain of credit card debt won’t happen overnight. And, if you set your sights too high, you might be tempted to give up before you even get started. A better bet is to break your larger goals into a series of small, achievable steps. Each time you accomplish one of these mini-goals, you’ll likely feel a sense of accomplishment. This can motivate you to save money and crush other goals, little by little.

Do Not Shame Yourself, but Forgive Yourself

Everyone makes mistakes. Even if you have been doing your best, it’s possible to have a credit card balance get out of hand or have your identity stolen after you accidentally click on a phishing text link.

Forgiving yourself is crucial to your emotional health and will help you take positive action to undo your mistake. A bad decision doesn’t have to define you; instead, it can be something you learn from and overcome. The mental energy spent beating yourself up can be better used to help address the problem.

Improving Your Money Mindset

If you have a positive money mindset, you will likely make better money decisions. Having a negative view, on the other hand, can keep you from setting goals and taking positive action. For example, if you think you will never get out of debt, you may not feel motivated to even try. However, putting a positive spin on the situation — that, with a plan, you will be able to one day be debt-free — can motivate you to start (and keep) attacking your debt.

The Takeaway

Though everyone tries to do their best with their money, mistakes happen all the time. No one likes losing money, but it’s vital to remember that one or even several financial slipups can be overcome by keeping a positive mindset and taking the recovery process one step at a time.

If you want to gain better control of your finances, help is available, starting with the right banking partner.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with 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.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

What are the consequences of poor financial decisions?

Poor financial decisions can lead to a low credit score, lack of savings, and overreliance on debt. It can also make you vulnerable to financial emergencies and limit your access to loans and credit cards with favorable rates and terms.

Do bad financial decisions lead to bad financial habits?

Yes, if left unaddressed, bad financial decisions can lead to bad financial habits. Not putting money aside for emergencies, for example, can cause you to rely on your credit card to cover a large, unexpected expense, and lead to a cycle of high interest debt that can be hard to get out of.

Can bad financial decisions be overcome?

Yes, you can overcome bad financial decisions by identifying where you went wrong and coming up with a realistic plan to address the problem moving forward. You can also likely benefit from budgeting and managing debt well.

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Photo credit: iStock/bob_bosewell

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SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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

Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://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.

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