How to Start Investing in Stocks

How to Invest in Stocks: A Beginner’s Guide

Stocks are shares of ownership in a company. To start investing in stocks, you would find a company that you believe may grow or appreciate in value over time, then purchase its stock through a brokerage account. If the stock price rises, you could sell your shares and potentially make a profit — or suffer a loss, if share prices decline.

Of course, when it comes to investing in stocks as a beginner, you’ll want to learn the basics so that you’re confident and comfortable with the decisions you make. Here is a step-by-step guide for those who want to start investing in stocks now.

Key Points

•   Stocks represent shares of ownership in a company and can be purchased through a brokerage account.

•   Before investing in stocks, it may be wise to determine your investing approach and consider your time horizon.

•   Different ways to invest in stocks include self-managed investing, using a financial advisor, or utilizing robo-advisors.

•   The amount you invest in stocks will likely depend on your budget and financial goals.

•   Investors may want to choose stocks based on thorough research, including analyzing a company’s financial statements and valuation metrics.

How to Start Investing in Stocks: 5 Steps

Taking the first step to invest in stocks is more straightforward than you’d expect. But it may be a good idea to sit down and think through your approach, strategy, goals, and more, before actually throwing some money into the markets. Here is a broad, basic rundown of how to start investing in stocks:

▶️ Watch the video: How to Trade Stocks

1. Determine Your Investing Approach

As noted, before you get started investing in stocks, you need to determine your investing approach. Because every person has unique financial goals and risk tolerances, there is no one-size-fits-all strategy to begin investing in the stock market.

Most people will need to decide whether they want a hands-on approach to investing or whether they’d like to outsource their wealth building to some sort of financial professional, or service.

Additionally, investors need to consider their time horizons before investing in stocks. Some investors want to invest long-term — buying and holding assets to build wealth for retirement. In contrast, other investors are more interested in short-term trading, buying and selling stocks daily or weekly to try and make a quick profit. The type of investor you want to be will help determine what kind of stocks you should buy and your investing approach.

2. Decide How Much You Want to Invest in Stocks

How much you invest will likely depend on your budget and financial goals. You may decide to invest with whatever you can comfortably afford, even if that doesn’t amount to much.

Fortunately, it’s fairly easy to start investing even with relatively little money. Many brokerage firms offer low or no trading fees or commissions, so you can make stock trades without worrying about investment fees eating into the money you decide to invest.

Additionally, many brokerage firms offer fractional share investing, which allows investors to buy smaller amounts of a stock they like. Instead of purchasing one stock at the value for which the stock is currently trading — which could be $1,000 or more — fractional share investing makes it possible to buy a portion of one stock. Investors can utilize fractional investing to use whatever dollar amount they have available to purchase stocks.

For example, if you only have $50 available to invest and want to buy stock XYZ trading at $500 per share, fractional share investing allows you to buy 10% of XYZ for $50.

3. Open an Investment Account

Once you’ve determined your investing approach and how much money you can invest, you’ll need to open a brokerage account to buy and sell stocks and other securities.

Several investment accounts might make sense for you, depending on your comfort level in managing your investments and your long-term financial goals. But in a general sense, there are a few options for investors: Full-service brokerages, online brokerages, and robo-advisors. But you can also invest using a retirement account, too.

Full-service brokerages

Many investors may use traditional brokerage firms, also known as full-service brokerages, to buy and sell stocks and other securities. A full-service brokerage offers additional services beyond just buying and selling stocks, such as investment advice, wealth management, and estate planning. Typically, full-service brokerages provide these services at high overall costs, while discount and online brokerages maintain scaled-down services with lower overall costs.

A full-service brokerage account may not be the best option for investors just getting started investing in stocks. These firms often require substantial account minimum balances to open an account. This option may be out of reach for most in the early stages of their investing journey.

Online brokerage

An online brokerage account may be ideal for most beginning investors looking to have a hands-on approach to trading stocks and building a financial portfolio. Many online brokers offer services with the convenience of an app, which can make investing more streamlined. If you feel confident or curious about how to start investing at a lower cost than a full-service brokerage firm, opening an account with an online broker could be a great place to start.

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*Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Robo-advisor

If you’re interested in investing but want some help setting up a basic portfolio, opening an investment account with a robo-advisor might be best for you. A robo-advisor uses a sophisticated computer algorithm to help you pick and manage investments. These automated accounts generally don’t offer individual stocks; instead, they build a portfolio with a mix of exchange-traded funds (ETFs). Nonetheless, it’s a way to become more familiar with investing.

Retirement option: 401(k) and IRAs

Retirement accounts like employer-sponsored 401(k)s or individual retirement accounts (IRAs) are tax-advantaged investment accounts that can be great for the beginning investor trying to build a retirement nest egg. These accounts offer investors a range of investment choices, including individual stocks. You may also have access to tutorials, advisors, or other resources to help you learn how to start investing in these accounts.

💡 Ready to start retirement investing? Consider opening an IRA online.

4. Choose Your Stocks

Deciding what individual stocks to invest in can be challenging for most investors. There are countless ways to evaluate stocks before you buy.

Before choosing your stocks, you generally want to do some homework into a company’s inner workings to understand the company’s overall valuation and the stock’s share price.

As a beginning investor, you want to get comfortable reading a company’s balance sheet and other financial statements. All publicly-traded companies must file this information with the Securities and Exchange Commission (SEC), so it shouldn’t be difficult to track those statements and filings down.

One of the most fundamental metrics for understanding a stock’s value compared to company profits is its price-to-earnings (PE) ratio. Others include the price-to-sales (PS) ratio and the price/earnings-to-growth (PEG) ratio, which may be helpful for companies that have little to no profits but are expanding their businesses quickly.

These metrics, and other financial ratios, may help you determine what stocks to buy. And the advantage of owning individual stocks is that you can get direct exposure to a company you believe has the potential to grow based on your research. The downside, of course, is that investing doesn’t come with guarantees, and your stock’s value could decline.

💡 Recommended: 7 Technical Indicators for Stock Trading

5. Continue Building Your Portfolio

After you’ve decided what stocks to invest in, you generally want to continue building a portfolio that will help you meet your financial goals.

One way to bolster your portfolio is by buying mutual funds and ETFs, rather than individual stocks. A potential benefit to investing in funds that hold stocks is that you may avoid some of the risks of being invested in individual stocks that may not perform well.

Whether investing in individual stocks or funds, you may want to consider the level of diversification in your portfolio that feels right for you. There is no consensus about the right way to diversify investments. For one person, ideal diversification could mean owning 20 stocks in different industries. For another, it could mean owning the “whole” market via a handful of mutual funds.

Once you get more comfortable investing in stocks and funds, you may employ other investing strategies. 

Stock Tips for Beginners

As you wade into the markets, it can be a good idea to keep a few things in mind.

•   Consider Your Approach Carefully: As mentioned, some investors like to have a hands-on approach to investing (active), while others prefer a more passive approach. Active investors want to make decisions on their own, picking what stocks are right for them and building a portfolio from the ground up. This self-managed strategy can be time-consuming but an excellent option for investors who have a general understanding of the markets or would like to learn more about them. Take some time to think about the pros and cons of each approach.

•   Think About Asset Allocation: Asset allocation involves spreading your money across different types of investments, like stock, bonds, and cash, in order to balance risk and reward. Determining a portfolio’s asset allocation can vary from person to person, based on financial goals and risk tolerance.

•   Compare Account Costs and Features: No matter where you decide to open your investment account, be sure to research and compare costs and features within the account. For example, many brokerage accounts charge investment fees and commissions for making trades, while some do not, though other fees may apply. You should check with your brokerage’s fee schedule to get a good idea of what costs may be applicable.


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The Takeaway

Historically, investing in the stock market has been a way for some individuals to build personal wealth. These days, it’s never been easier for new investors considering getting into stocks to start. Whether you choose to work with a financial advisor or use an online broker or app, there are several ways to find a method that makes stock investing approachable, fun, and potentially profitable. 

Of course, there are no guarantees, so it’s wise to take a step-by-step approach, start small if you prefer, do some research using the many resources available, and see what comes as you gain experience and confidence.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Do you need a lot of money to start investing in stocks?

You don’t need a lot of money to start investing in stocks. Many brokerages allow investors to start investing with relatively little money, and many also offer fractional investing features and options.

Are there fees when investing in stocks?

There may be fees involved with investing in stocks, such as commissions or trading fees. Whether an investor is charged a fee will ultimately come down to the specific brokerage or platform they’re using to invest.

Is stock trading good for a beginner?

Stock trading, or day-trading, is generally for more advanced investors. But stock trading over longer periods of time may be good for investors to learn to get a hang of the markets. Beginners who are interested in stock trading may want to consult with a financial professional to get a better idea of a suitable trading strategy.

Should beginner investors buy individual stocks or stock funds?

Many financial professionals would likely recommend that beginner investors buy funds rather than individual stocks, as they offer some built-in diversification, in many cases. That said, what an investor ultimately decides to do should be dictated by their overall strategy and goals.

Is stock investing safe for beginners?

Stock investing is not necessarily safe for beginners or veteran investors. Investing has its risks, and there are investment types with different levels of risk that investors should familiarize themselves with.


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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.

Claw Promotion: Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

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How Much Does a Paramedic Make a Year?

Working as a paramedic is a rewarding career path for many. Though the job is often about more than just the money, it is possible for paramedics to earn a living. The median annual wage for paramedics is $46,770, according to the U.S. Bureau of Labor Statistics (BLS).

Keep reading for insights into a paramedic’s salary.

Key Points

•   The median annual wage for paramedics is $57,450.

•   Job growth for paramedics is projected at 6 percent by 2033, with 16,200 new openings annually.

•   Paramedic work is fulfilling due to the impact of helping and saving lives.

•   The role is physically demanding, involving frequent lifting, bending, and kneeling.

•   Positive job growth and personal fulfillment can make the demanding aspects of the job worthwhile.

What Is a Paramedic?

A paramedic provides emergency medical services to individuals when they’re injured or sick. They may also be responsible for transporting people to the hospital, where they can receive further medical treatment. Because medical emergencies can happen any time of day, paramedics often work nights, holidays, and weekends. Many work 40 hours a week, if not more.

To become a paramedic, you usually must meet certain postsecondary educational requirements, which can vary by state.

How Much Is a Paramedic’s Starting Salary?

How much does a paramedic make a year? While the median annual salary for paramedics is $57,450, entry-level salaries may be lower. As with most jobs, a paramedic’s pay rate should become more competitive as they progress in their career.


Regardless of your income, it’s a good idea to keep your finances in order. An online budget planner can give you insight into your spending.

Recommended: 10 Entry-level Jobs with Little Human Interaction

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What Is the Average Salary for a Paramedic?

If you’re considering going into emergency medical services — and thinking about the long shifts that are often involved — you may be wondering how much a paramedic makes an hour.

According to BLS data, paramedics earn a median hourly rate of $27.62. But how much they actually earn depends on how many hours they work, how experienced they are, and where they live.

In fact, salaries can differ greatly by state. For example, the annual mean wage of a paramedic in California is $69,870. In Alabama, it’s $45,060.

It’s understandable that some paramedics earn more based on where they live, as the cost of living can vary a lot by state. At the very least, paramedics can expect to earn the minimum wage.

The following table breaks down the mean annual wage for paramedics by state.

Median Paramedic Salary by State for 2023

State

Annual Mean Wage

Alabama $45,060
Alaska $67,630
Arizona $50,280
Arkansas $47,300
California $69,870
Colorado $63,010
Connecticut $70,350
Delaware $66,330
District of Columbia $71,710
Florida $56,320
Georgia $51,280
Hawaii 73,770
Idaho $61,900
Illinois $67,240
Indiana $54,320
Iowa $51,980
Kansas $49,550
Kentucky $50,520
Louisiana $50,750
Maine $53,510
Maryland $66,170
Massachusetts $66,620
Michigan $50,090
Minnesota $68,840
Mississippi $48,390
Missouri $54,550
Montana $52,590
Nebraska $52,640
Nevada $60,070
New Hampshire $60,650
New Jersey $80,510
New Mexico $49,680
New York $64,890
North Carolina $49,950
North Dakota $55,220
Ohio $47,450
Oklahoma $46,690
Oregon $68,660
Pennsylvania $55,990
Rhode Island $58,820
South Carolina $50,870
South Dakota $47,560
Tennessee $53,120
Texas $54,770
Utah $58,890
Vermont $52,210
Virginia $54,660
Washington $94,500
West Virginia $45,280
Wisconsin $56,130
Wyoming $52,470

Source: BLS

Recommended: Salary vs. Hourly Pay: How Their Pros and Cons Compare

Paramedic Benefits & Job Considerations

Alongside earning a paycheck, paramedics may also receive valuable benefits such as:

•   Healthcare, dental, and vision insurance

•   Paid time off

•   Sick leave

•   Retirement plans

Pros and Cons of a Paramedic Salary

If someone is debating whether or not to pursue a career path as a paramedic, they’ll want to consider both the advantages and disadvantages of the job.

Pros

•   Potential career growth. It is anticipated paramedic jobs will grow by 6 percent by 2033, and there will be around 16,200 new openings for paramedics and EMTs every year over the next decade.

•   Fulfillment. Helping people for a living and saving lives can be very fulfilling ways to spend a career.

Cons

•   Physically demanding. Working as a paramedic can require a lot of lifting, bending, and kneeling, which can take a physical toll.

•   Dangerous. Working with the sick can expose you to diseases and viruses and potentially increase your risk of injuries.

•   Hectic work schedule. Not only are paramedics expected to work odd hours, their time on the job can be very busy and stressful, with life-or-death stakes. Shifts can also be long and last up to 24 hours. This may also not be a great job for introverts, as working as a paramedic requires interacting a lot with patients and teammates.

The Takeaway

Pursuing a career as a paramedic requires a secondary education, a lot of hard work, and the ability to work odd hours. The role can be very stressful, as the stakes are quite high when delivering emergency medical services. However, with a median annual salary of $57,450, working as a paramedic can also be a reliable and rewarding way to earn a living. What’s more, you may find that as your career progresses, your earning potential will grow as well.

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 the highest-paid paramedics?

Exactly how much money does a paramedic make? That depends on how much experience the paramedic has, among other factors. The highest 10 percent of top-earning paramedics earn more than $79,430.

Can a paramedic make six figures?

It is unlikely a paramedic will earn a salary of $100,000 or more, but is not impossible. Typically, the highest-paid paramedics work in the state government, and they earn a median annual salary of $75,010.

What is the lowest-paid paramedic?

On the low end, paramedics can earn less than $38,520. However, they can expect their salary to rise as they gain years of working experience.


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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.

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

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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How Much Money Does a Makeup Artist Make a Year?

If you dream about spending your days creating beautiful looks with your favorite beauty products, then becoming a professional makeup artist may be a good career to pursue.

But just how much money does a makeup artist make? According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for a makeup artist is $68,590.

Keep reading for more insight into makeup artist earnings, how salaries vary by state, and what this job entails.

Key Points

•   The median annual salary for makeup artists is $68,590.

•   Salaries vary by state, with New York and California offering the highest median salaries.

•   Creative freedom and diverse work opportunities are significant perks.

•   Challenges include restricted earning potential, lack of benefits, and irregular work schedules.

•   The lowest 10 percent of makeup artists earn a median salary of $21,540.

What Is a Makeup Artist?

A makeup artist is a skilled professional responsible for applying cosmetics and beautifying an individual’s appearance for various purposes. They use their expertise to enhance facial features, create desired looks, and achieve specific artistic visions. Makeup artists work across various industries, including fashion, film, television, theater, special effects, weddings, and events. In addition to traditional makeup applications, some makeup artists specialize in special effects makeup, enabling them to create realistic wounds or fantastical characters for films or theater productions.

Personality plays a big role in whether or not someone will enjoy being a makeup artist. Being a makeup artist can be a suitable job for introverts, as it allows them to work in a more controlled and focused environment with clients one on one. However, working in certain settings, such as movie sets or high-profile events, may be a better fit for extroverts.

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Recommended: 10 Entry-level Jobs with Little Human Interaction

How Much Is a Makeup Artist’s Starting Salary?

How much does a professional makeup artist make when they first begin their career? Like anyone embarking on a new career path, makeup artists tend to earn less when they’re just starting out. According to the latest BLS data, the lowest 10 percent of earners in the makeup artist field earn a median salary of $21,540. However, as artists gain more experience and exposure, they have the potential to earn much more than that entry-level salary.

One way to help make the most of your income to track your spending. An online budget planner lets you keep tabs on where your money is coming and going.

What Is the Average Salary for a Makeup Artist?

Makeup artistry is a type of trade job that has the potential to earn a lot of money. Let’s take a closer look at the average salary for a makeup artist.

•   ow much does a makeup artist make a year? The median annual salary for a makeup artist is $68,590.

•   How much does a makeup artist make per hour? When it comes to hourly pay, makeup artists earn a median of $32.97

Where someone lives can play a major role in how much they earn as a makeup artist. Because the cost of living varies so much by state, salaries can vary a lot, too. While the BLS has limited data collected on how much makeup artists earn in different states, the information it does have makes it clear how much salaries can vary.

For example, in Illinois, the median annual salary for a makeup artist is $35,370, whereas in New York it is $111,970. Alongside cost of living factors, there may be more job opportunities for makeup artists in some states. New York City is a major fashion and entertainment hub that likely has a high demand for makeup artists, which can lead to more competitive pay rates.

Median Makeup Artist Salary by State for 2023

State

Median Annual Salary

California $99,520
District of Columbia $115,320
Florida $46,060
Illinois $35,370
Nevada $30,760
New York $111,970
Oklahoma $66,900
Utah $68,260
Source: BLS

Recommended: The Highest Paying Jobs in Every State

Makeup Artist Benefits & Job Considerations

While makeup artists have the potential to earn a six-figure salary, the biggest downside of this job is that it is not common to earn benefits like health insurance or to have access to a 401(k). This is because most makeup artists are self-employed and are responsible for securing and paying for any traditional employee benefits they desire.

Pros and Cons of Makeup Artist Salary

Like all jobs, working as a makeup artist comes with a unique set of pros and cons to consider before pursuing this career path.

Pros

•   Creative opportunities: Makeup artists have the freedom to express their creativity by creating unique looks for their clients, whether it’s for a photo shoot, movie, or special event.

•   Interesting workdays: The profession offers a diverse range of opportunities, from working on movie sets to collaborating with cosmetic retailers.

•   No formal education required: Unlike many other careers, becoming a makeup artist doesn’t demand a college degree.

Cons

•   Restricted earning potential: The industry’s salary standards may limit the earning potential of makeup artists, with only a few able to negotiate higher pay. What’s more, self-employed artists may not always receive consistent income or benefits.

•   Geographic limitations: Makeup artists may need to relocate to major cities like Los Angeles, New York, or Chicago to find steady work, and they may also have to travel with clients for various projects.

•   Irregular work schedule: Makeup artists often have to adapt to erratic work hours, including weekends, holidays, and long periods of uncertainty between gigs. Maintaining a stable work-life balance could be a challenge.

The Takeaway

Makeup artistry can be a rewarding career — and potentially lucrative. How much money does a makeup artist make a year? The median annual salary for a makeup artist is $68,590. While the work can be creative and glamorous, it also lacks a traditional work schedule. Plus, most makeup artists have to foot the bill for their own employee benefits. Those considering a career in this industry need to carefully consider if the advantages of this role outweigh the disadvantages.

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

Can you make good money doing makeup?

If someone is asking, how much does a makeup artist make in a year, they’ll probably like the answer. The median annual salary for a makeup artist is $68,590, so yes, it is possible to make good money doing makeup. However, some states, like New York and California, have much more lucrative job opportunities than other states.

Can you make six figures as a makeup artist?

Yes, it is possible to make six figures as a makeup artist. The median annual salary for makeup artists nationwide is $68,590, according to the latest BLS data. However, where they live plays a major role in how likely they are to earn a $100,000 salary as a makeup artist.

How much profit does a makeup artist get?

The profit a makeup artist receives varies greatly depending on their employment status and the specific makeup services they offer. Self-employed makeup artists have the potential to earn the full profit after deducting operating costs, while those working for cosmetic retailers or salons may receive a fixed salary or commission-based earnings. Factors such as location, experience, clientele, and demand for their services can also impact overall profit.


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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.

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

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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How Much Does a Diesel Mechanic Make a Year?

Even if you haven’t thought about diesel mechanics before, chances are you’ve benefited from their expertise. These skilled technicians fix the machines that harvest our food, the generators that provide electricity when the power goes out, the big rigs that ferry our goods across the country, and so much more.

Being a diesel mechanic requires a certain skill set and level of training. Generally speaking, they tend to earn slightly more than auto mechanics. According to the latest figures from the U.S. Bureau of Labor Statistics (BLS), the median pay for a diesel mechanic is $59,920 per year, or $28.81 per hour. (By comparison, the median pay for an auto mechanic is $51,940 per year, or $24.97 per hour.) However, pay rates can vary depending on where a technician works and their level of experience.

Key Points

•   Median annual pay for diesel mechanics is $59,920, ranging from $39,020 to $82,430.

•   Earnings vary by location, experience, and type of vehicles worked on.

•   Job responsibilities include inspecting, repairing, and maintaining diesel engines, and communicating with customers.

•   Benefits often include health insurance, 401(k), paid time off, and tuition reimbursement.

•   Pros include a comfortable median pay and potential for higher earnings; cons include lower pay in high-cost areas and limited additional income opportunities.

What Is the Starting Salary for a Diesel Mechanic?

If you’re just starting out as a diesel mechanic, you probably won’t earn the median salary of $59,920. According to the BLS, 10 percent of workers — most likely those new to the field — earn closer to $39,020, or $18.76 per hour. In some states, this rate is only a few dollars more than minimum wage.

Whether you’re paid a set weekly salary or hourly rate, starting out as an entry-level diesel mechanic can be challenging. The wages may be difficult to live on, especially if you have a lot of financial obligations or live in a place with a higher cost of living.

But if working with machinery and, in particular, on diesel engines is what you really want to do, it can be worth any initial sacrifices. And the good news is, diesel mechanic jobs are expected to continue to grow. So in time, you can move up the ladder or seek out a new job to increase your yearly salary.
In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

What Do Diesel Mechanics Do?

Diesel mechanics inspect, repair, and maintain vehicle engines that run on diesel fuel. This includes everything from trucks, overhaul buses, and trains, to cruise ships, generators, and construction and agricultural equipment. Their goal is to make sure vehicles are safe for both drivers and passengers.

A diesel mechanic position is a manual labor trade job you can get without a college degree, though most employers want diesel techs to have at least a high school diploma or a GED equivalent. While you don’t need secondary education to do the job, you do need specialized training, which can be acquired on the job, through a certificate program, or by attending a trade or vocational school.

And though diesel mechanics may need to occasionally speak with customers about issues with the vehicles, it can be a good job for introverts.

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Recommended: 25 High-Paying Trade Jobs in Demand

Examples of a Diesel Mechanic’s Job Responsibilities

There are many daily responsibilities for a diesel mechanic, ranging from simple servicing to major repairs. For instance, when examining a diesel engine, the mechanic can run a diagnostic test to determine if the engine is running properly. If there’s a problem, a diesel mechanic can replace a vehicle’s engine, transmission, steering, and braking systems.

Here are some other essential work duties a diesel mechanic typically performs:

•   Identifying any engine malfunction issues

•   Securing the parts needed for servicing

•   Test driving vehicles for performance

•   Communicating issues about the vehicle to the customer and advising them on how best to maintain the machinery

•   Keeping detailed work records on engines serviced

What Is the Starting Salary for a Diesel Mechanic?

If you’re just starting out as a diesel mechanic, you probably won’t earn the median salary of $59,920. According to the BLS, 10 percent of workers — most likely those new to the field — earn closer to $39,020, or $18.76 per hour. In some states, this rate is only a few dollars more than minimum wage.

Whether you’re paid a set weekly salary or hourly rate, starting out as an entry-level diesel mechanic can be challenging. The wages may be difficult to live on, especially if you have a lot of financial obligations or live in a place with a higher cost of living.

But if working with machinery and, in particular, on diesel engines is what you really want to do, it can be worth any initial sacrifices. And the good news is, diesel mechanic jobs are expected to continue to grow. So in time, you can move up the ladder or seek out a new job to increase your yearly salary.

In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

What Is the Average Diesel Mechanic Salary by State?

If you’re considering going into the field, you may be wondering how much a diesel mechanic makes a year. As previously mentioned, the median pay for a diesel service technician and mechanic is $59,920 per year, or $28.81 per hour.

Keep in mind that in certain areas, there’s an increased demand for diesel mechanics, which means there’s a greater chance pay rates will be higher. Per the BLS, here’s the average diesel mechanic salary by state.

State

Annual Salary

Alabama $51,760
Alaska $69,760
Arizona $57,470
Arkansas $50,800
California $69,850
Colorado $65,250
Connecticut $67,100
Delaware $60,480
Florida $56,900
Georgia $58,200
Hawaii $70,010
Idaho $56,350
Illinois $64,670
Indiana $58,230
Iowa $55,810
Kansas $53,420
Kentucky $51,530
Louisiana $51,530
Maine $54,350
Maryland $64,800
Massachusetts $68,030
Michigan $57,090
Minnesota $63,110
Mississippi $49,070
Missouri $56,560
Montana $54,530
Nebraska $53,270
Nevada $62,030
New Hampshire $62,160
New Jersey $65,540
New Mexico $53,480
New York $69,710
North Carolina $54,240
North Dakota $62,470
Ohio $55,450
Oklahoma $52,770
Oregon $60,920
Pennsylvania $56,210
Rhode Island $60,970
South Carolina $52,060
South Dakota $59,570
Tennessee $56,630
Texas $57,020
Utah $59,270
Vermont $60,360
Virginia $56,520
Washington $69,620
West Virginia $49,440
Wisconsin $59,650
Wyoming $57,840

Recommended: The Highest-Paying Jobs in Every State

Diesel Mechanic Job Considerations: Pay and Benefits

Looking for a diesel mechanic job? Along with researching positions with competitive pay, it’s important to factor in employer benefits.

Here are common employee benefits offered to diesel mechanics:

•   Health, dental, vision, and life insurance

•   401(k) with possible employer match

•   Tuition reimbursement

•   Flexible Spending Account (FSA) and/or Health Savings Account (HSA)

•   Paid sick days, vacation, and holiday pay

•   Parental leave

•   Stock options

•   Profit sharing

•   Low prescription drug costs

•   Wellness programs, such as free counseling services

Pros and Cons of a Diesel Mechanic’s Salary

When it comes to a diesel mechanic’s earnings, there are potential upsides and downsides you’ll want to keep in mind.

Advantages of a Diesel Mechanic’s Salary

Disadvantages of a Diesel Mechanic’s Salary

Salary can be comfortable depending on state or city where you work Wages may not be enough if you live in a state or area with a higher cost of living
Steady work schedule with opportunities for overtime pay Salaried workers may not be entitled to overtime pay
Pay can rise with career experience, increased job education from extra certification, training programs, or vocational school Lack of work experience and little to no training can mean a lower salary when you first start out
Can receive a commission, tips, or bonus in addition to base salary, depending on the company Employers may not offer commissions or bonuses, and employees may not be allowed to accept tips

The Takeaway

The median pay for a diesel service mechanic is $59,920 per year, or $28.81 per hour, according to the latest figures from the BLS. However, that amount can vary by state, and there may be opportunities to earn more with additional training and experience. Diesel mechanics are in demand, and jobs are expected to continue growing. This means skilled technicians may have opportunities to join companies that offer benefit packages, potentially move up the ranks, and even increase their take-home pay.

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 is the highest-paying diesel mechanic job?

According to the BLS, the highest salary for a diesel mechanic clocks in around $82,430 a year. Types of diesel mechanics who generally make more money include those who work on heavy-duty trucks, tractor trailers, and water-based vessels such as cargo and cruise ships.

How much does a diesel mechanic earn in the Bay Area?

The average annual diesel technician salary in San Francisco is $83,370, according to the BLS. That works out to an average hourly rate of $40.08.

Is being a diesel tech worth it?

For people who enjoy working with their hands and have an interest in the workings of machinery, becoming a diesel tech can be a rewarding career. The field offers opportunities for constant learning, increased expertise, job stability and room for career advancement.


Photo credit: iStock/sathit trakunpunlert

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

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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How Much Does a Lineman Make a Year?

Linemen are critical for keeping utility services running smoothly. If you’re interested in this career path, you might be wondering how much does a lineman make a year. The mean annual salary for electrical power line installers and repairers was $85,900 in 2023, according to the Bureau of Labor Statistics (BLS).

It’s possible to make more money (or less) depending on how many years of experience you have and where you’re employed. Looking at hourly and annual wage data can provide a clearer answer to the question of how much money does a lineman make.

Key Points

•   Entry-level linemen earn $48,220 annually, or $23.18 hourly.

•   Average annual salary for linemen is $85,900.

•   California linemen earn over $100,000 annually, among the highest in the country.

•   Full-time linemen receive health insurance and retirement plans.

•   The job involves physical strain, long hours, and dangerous conditions.

What Is a Lineman?

A lineman or line installer and repairer is someone who works with electrical power systems and telecommunications systems. The typical duties and responsibilities of a lineman include:

•   Installing, maintaining, and repairing electrical power lines

•   Identifying defective components within electrical systems, such as transformers or voltage regulators

•   Erecting power poles and stringing electrical lines

•   Inspecting and testing power lines and equipment

•   Operating power equipment to complete repairs or installations of electrical system components

Linemen can work in different specialty areas. For example, some linemen exclusively work on electrical power substations, while others may install and repair fiber optic cables. Line repairers may be dispatched to repair electrical lines or telecommunications systems following a natural disaster, such as a hurricane.

A lineman’s work requires being outdoors much of the time. Unlike retail or restaurant workers, they typically have limited interaction with the public, which could make this one of the best jobs for introverts.

However, they still have to communicate with colleagues, so it’s not necessarily one of the best jobs for antisocial people who prefer to work alone.

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How Much Does a Starting Lineman Make?

What is a good entry-level salary for a lineman? Entry-level salaries for electrical linemen vary depending on where they’re located, their educational background, and which company they’re employed with. At the low end of the spectrum, lineman jobs pay an annual wage of $48,220, according to the BLS.

How does salary vs. hourly pay compare for linemen? Again at the low end, a starting lineman makes $23.18 an hour, according to BLS data. At the high end of the scale, a lineman earns $57.66 per hour or $119,920 in annual salary. These estimates assume that a full-time schedule for a lineman works out to 2,080 hours per year.

When discussing how much does a lineman make an hour, it’s important to consider the bigger picture. The actual hourly wage for a lineman can depend on how many hours they work per year and how many of those hours are paid at their regular wage, versus overtime pay or time-and-a-half.

Hourly and annual pay for linemen can increase as they gain more experience. For example, if you’re asking how much does a journeyman lineman make, you’re likely to get a different answer compared to someone who’s just starting out. Journeyman linemen are fully trained and can have years of experience, while a regular lineman may still be at the apprentice stage.

As you climb up the ranks of your field, you’ll likely see a bump in pay. An online budget planner can help you create budgets, manage upcoming bills, and monitor your credit score — for free.

What Is the Average Salary for a Lineman?

The mean annual salary for a lineman is $85,900, according to the BLS, while the median salary is $85,420 per year. The median lineman salary reflects the middle ground between the highest and lowest salaries. Average salaries reflect the mean of all salaries earned by linemen.

The average lineman salary by state may be higher or lower than the national average. Here’s a comparison of the average lineman salary by state, based on BLS data for 2023.

Average Lineman Salary by State for 2023

State

Annual Salary

State

Annual Salary

Alabama $79,090 Montana $99,530
Alaska $102,580 Nebraska $75,660
Arizona $84,070 Nevada $71,840
Arkansas $71,980 New Hampshire $97,440
California $111,960 New Jersey $103,140
Colorado $91,840 New Mexico $70,390
Connecticut $94,930 New York $108,670
Delaware $88,150 North Carolina $72,750
Florida $77,950 North Dakota $96,550
Georgia $75,100 Ohio $82,500
Hawaii $110,660 Oklahoma $67,510
Idaho $97,260 Oregon $100,100
Illinois $99,520 Pennsylvania $92,370
Indiana $88,680 Rhode Island $106,880
Iowa $88,360 South Carolina $69,970
Kansas $86,740 South Dakota $81,750
Kentucky $74,300 Tennessee $71,120
Louisiana $70,820 Texas $72,820
Maine $86,970 Utah $75,430
Maryland $91,190 Vermont $96,260
Massachusetts $97,160 Virginia $74,450
Michigan $94,660 Washington $107,450
Minnesota $94,550 West Virginia $77,700
Mississippi $67,960 Wisconsin $98,460
Missouri $86,530 Wyoming $89,550

If you’re wondering what trade makes the most money, jobs in the electrical field certainly make the list. When you look at the bigger picture, lineman positions can be some of the highest paying jobs by state.

In terms of what is competitive pay for a lineman, it’s easy to see that some states have a much higher average salary than others. The top states for lineman jobs, which includes California, pay $100,000 or more a year on average. But is $100,000 a good salary for this kind of work? That’s an important question to ask, since this type of job can be more physically intensive — and dangerous — than others.

Whether a six-figure salary is good or not can depend largely on how you use it. If you’re focused on saving, then $100K a year might go pretty far. (A money tracker can help you keep tabs on your finances.) On the other hand, if you’re struggling with debt or don’t keep a regular budget, then you might have a hard time making ends meet, even with six-figure pay.

Lineman Job Considerations for Pay & Benefits

Becoming a lineman may require no more than a high school diploma or equivalent. Instead of earning a bachelor’s or advanced degree, you may learn everything you need to know on the job through hands-on training. Most linemen work regular business hours and schedules, though they may be expected to work weekends or respond to emergency calls for service.

If you’re working full-time, your employer may offer a benefits package that includes health insurance, a retirement plan, and other perks. That, along with a solid annual salary, can make this kind of work appealing.

Again, how much much money a lineman makes can depend on what kind of experience they have and where they’re located. Living in California or New York, for example, can help you unlock higher pay. However, that can also mean dealing with a higher cost of living, which can put more of a strain on your paycheck. And of course, inflation can also affect your hourly wage.

Pros and Cons of Lineman Salary

It’s easy to be persuaded that a career as a lineman could be worthwhile when you’re looking solely at the average annual salary. If you’ve paid attention to any of the recent discussions about raising the minimum wage, you should be aware that linemen make a significantly higher hourly rate.

Making more money can be a good thing if you’re able to reach your financial goals. That might include starting an emergency fund, putting money away for retirement, or paying down debt. As mentioned, lineman jobs can also come with good benefits, depending on where you’re employed.

Now, what about the cons? Lineman work can be stressful and may involve working long hours if you’re repairing power lines after a natural disaster. You may be required to work in less than ideal weather conditions, including extreme cold or heat. A lot of driving can be involved if you’re constantly moving from one location to another.

The job itself can be dangerous, since linemen routinely climb power poles and deal with high-voltage electricity. Minor or major injuries and even deaths can occur on the job. While linemen are specially trained to deal with different types of emergencies, this is still one of the most hazardous occupations overall.

The Takeaway

Working as a lineman is something you might consider if you’d like to bank a higher salary and you don’t mind physically strenuous work outdoors. Comparing the average lineman salary by state can be helpful when deciding where to apply for a position.

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 is the highest salary for a lineman?

The highest average salary by state for a lineman is $111,960. That’s what linemen in California earn on average per year. Where you live and work can make a difference in how much money you can make as a lineman, as some states have much higher average pay than others.

Does a lineman make six figures?

There are lineman jobs that pay six figures per year. Whether you can make six figures as a lineman will depend largely on your experience and where you live.

What does a lineman make in Texas?

Texas is one of the lower-paying states for lineman jobs. The average annual salary for a lineman in Texas is $72,820, according to the Bureau of Labor Statistics. Whether that’s a good salary to live on can depend on your expenses and which part of Texas you call home.


About the author

Rebecca Lake

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.



Photo credit: iStock/Prapat Aowsakorn

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.

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

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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