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Remodeling your home to make it more accessible for a disabled family member (or, simply better suited for “aging in place”) allows you to stay in your home longer and makes it easier for everyone to perform their everyday tasks. But where do you even begin?

Creating a wheelchair-friendly home generally involves removing barriers and making daily necessities more accessible. It might involve some DIY tweaks to a few rooms or could require hiring a contractor and making more extensive renovations.

While the Americans with Disabilities Act (ADA) doesn’t cover private, single-family homes, it offers helpful guidelines you may want to keep in mind as you work on making your home more accessible.

What follows is a simple (and ADA-compliant) guide to home modifications you may want to make for someone who is disabled, including costs involved and financing options.

How Much Do Handicap Home Modifications Cost?

How much you’ll spend on renovations to make your home accessible will depend on your accessibility needs, your home’s current state, and the size of your home.

According to Angi (formerly Angie’s List), the cost of making your home more accessible can range anywhere from $751 to $8,553, with $4,652 being the national average. If you opt to do significant home renovations, however, costs can run considerably more. Installing an elevator, for instance, can set you back $2,500 to $60,000.

It’s a good idea to figure out which renovations you want to do and then work with a contractor to price them out. You can then adjust the scope of the project based on your budget.

Here’s a breakdown of some of the renovation costs that may be involved in making your home more accessible.

Types of Accessible Home Renovations

What follows are some key accessibility modifications that can help give aging parents or family members who require help getting around via wheelchair, cane, or walker more independence within your living space.

1. Doorways

Widening doorways is crucial to accommodate wheelchair users. The ADA requires doorways to have a clear opening of 32” when the door is open 90 degrees for wheelchairs to pass easily.

Widening a doorway can run $700 to $2,500 if you require new doors or if you need to create larger openings. However, you may be able to provide accessibility for a lot less by installing offset or swing-clear hinges to allow the door to swing clear of the entryway,

2. Door Handles

Round door knobs can be difficult to open from a wheelchair. To make it easier for those with mobility impairments, consider installing lever door handles. These handles are easier to grip and operate, providing improved accessibility throughout your home.

3. Showers

Converting a traditional bathtub into a roll-in shower with a wide entry and grab bars can greatly enhance accessibility. The ADA recommends that your shower stall be at least 36” by 36” for wheelchair accessibility. Adding a fold-down shower seat and adjustable handheld showerhead (the ADA recommends a 60” hose) further improves safety and convenience.

The price of retrofitting an existing shower or installing a new one can run anywhere from $2,000 to $7,500

Recommended: Tips for the Perfect Small Bathroom Remodel

4. Baths

Instead of a shower, you might consider a handicap-accessible bathtub. The ADA requires clear floor space in front of the bath, a seat in the bath at the head of the tub, along with grab bars and a 60” hose.

Converting a bathtub into a walk-in tub can run anywhere from $350 to $1,000

5. Ramps

If your home currently has stairs you need to climb to get inside, you’ll need to build a ramp if you want it to be wheelchair accessible. Ramps should have a gradual incline, non-slip surfaces, and handrails for stability. Per the ADA, the width of the ramp has to be a minimum of 36”.

The cost of constructing a ramp will depend on the entrance layout of your particular home, but you could expect to pay between $1,000 and $4,000.

6. Flooring

Choosing smooth and slip-resistant flooring materials throughout the house is essential for individuals with mobility aids or wheelchairs. You’ll want to remove any carpets or rugs that could pose tripping hazards or make it hard for wheelchair users to get around. If you use carpet, it should be no more than half an inch. Plusher carpets make it difficult for wheelchairs to maneuver.

Installing non-slip flooring generally runs around $3 to $22 per square foot.

7. Accessible Kitchen Renovations

Modifying the kitchen can significantly improve accessibility. Lowering countertops, installing pull-out shelves, and adding accessible sinks and appliances can make meal preparation easier for individuals with disabilities.

Converting a kitchen to comply with the ADA guidelines can run $9,000–$40,000. To cut costs, you might consider creating a dedicated area for accessible cooking and meal prep, leaving the rest of the kitchen as-is.

Recommended: What Is the Average Cost to Remodel a Kitchen?

8. Toilets

Bathrooms should have enough room for a wheelchair to maneuver inside and room for a wheelchair user to move their chair next to the toilet to transfer themselves from the chair to the toilet easily. There should be grab bars mounted securely to the walls to facilitate the process and increase safety.

Depending on mobility needs, you might consider installing raised or comfort-height toilets and adding a bidet attachment. Installing a modified toilet can run $400 to $1,000.

Recommended: 10 Steps for the Perfect Bathroom Remodel

9. Sinks

Accessible sinks should have open space underneath to accommodate a wheelchair. Installing lever-style, push, or touch-operated faucets and ensuring adequate knee clearance further improves accessibility.

Installing a new sink and faucet can run $100 to $1,000

Financing Options for Home Modifications for the Disabled

The cost involved in making home accessibility renovations can add up quickly. And, you might not necessarily have the funds you need just in your savings account. Fortunately, there are a number of funding options, including grants and loans, available. You may also be able to deduct some of the costs on your taxes.

Here’s a look at some of your options.

Specially Adapted Housing (SAH) Grants

The U.S. Department of Veterans Affairs offers Specially Adapted Housing (SAH) grants for eligible veterans with disabilities. These grants provide financial assistance to modify or build homes to meet their specific accessibility needs.

IRS Deductions for Home Accessibility Renovations

Home renovations are not generally tax deductible. However, accessibility modifications to your home can be included as medical expenses if they are medically necessary and you itemize your deductions. Keep in mind that the deduction amounts must be reasonable, and if the amount spent increases the value of your home, they cannot be claimed as a medical expense.

The Internal Revenue Service (IRS) also allows disabled people and their friends and family to save money to pay for the disabled person’s expenses in ABLE accounts. You’ll want to consult a tax profession or refer to the IRS Publication 907 to learn more about the specific requirements and limitations.

Options to Finance Accessible Home Renovations

Various financing options are available for accessible home renovations. Here are some you may want to investigate.

Personal Loans

A personal loan is typically an unsecured loan (meaning you don’t have to put an asset to secure the loan) that can be used for a wide variety of purposes, including home renovation projects. The advantage of this type of loan is that you don’t need to have built up equity in your home to qualify for financing.

Some personal loans are actually specifically designed to cover the cost of home remodeling (they are often called home improvement loans). Either type of personal loan can provide the necessary funds for home accessibility renovations. It’s a good idea to compare interest rates, terms, and repayment options to find the best personal loan option for your project.

Recommended: How Do Home Improvement Loans Work?

Reverse Mortgages

If you’re aged 62 or older, you might want to consider a reverse mortgage. This type of mortgage allows seniors to borrow against the equity in their home. These funds can be used for home modifications, and repayment is typically deferred until the homeowner moves or passes away.

Just keep in mind that reverse mortgages often come with relatively high fees that are rolled into the loan. Also, your equity in your home will likely decrease, leaving you with less in your estate to leave to your heirs.

Fannie Mae and the Federal Housing Administration (FHA)

Fannie Mae’s HomeStyle Renovation Mortgage and the FHA’s 203(k) Rehabilitation Mortgage Insurance Program offer financing options for purchasing or refinancing a home that needs accessibility renovations.

Fannie Mae’s HomeStyle program is available for buyers who want to get money to buy and renovate a home in one loan or to those who want to refinance their home loans and get cash for renovations. The FHA’s 203(k) renovation loan is similar to Fannie’s but has more flexible qualification requirements.

Refinancing

Refinancing an existing mortgage can provide additional funds for home accessibility modifications. By taking advantage of lower interest rates or extending the term of your loan, homeowners can free up cash for renovations. Keep in mind, though, that extending the term of your loan can increase the total cost of your mortgage.

Nonprofit Assistance

Certain nonprofit organizations provide grants or low-interest loans for home accessibility renovations. These organizations focus on supporting individuals with disabilities and improving their living conditions.

One you may want to look into is Rebuilding Together . This is a national organization dedicated to helping homeowners build, rebuild, or modify their homes. They have a history of working with families to make their homes more accessible.

Other helpful resources include:

•   The National Resource Center on Supportive Housing and Home Modification

•   Local Independent Living Center Affiliates

•   Local Easter Seals chapters

Medical Waivers

Many states have Medicaid programs that cover home modifications for disabled or elderly people. These programs are often used for people who are currently in nursing homes but may want to return to a private home. The money could help them make home modifications to ensure their safety at home. Eligibility requirements and coverage vary by state, so it’s important to research available programs in your area

Home Equity Line of Credit (HELOC)

If you own your home, you might be able to use your existing equity to get a home equity line of credit (HELOC). A HELOC is a revolving line of credit (backed by your equity in your home) that works in a similar way to a credit card. You can borrow what you need for your home accessibility renovations as you make them (up to a set credit limit) and only pay interest on what you borrow.

The Takeaway

Creating an accessible home through thoughtful renovations provides independence and a higher quality of life for individuals with disabilities or mobility limitations. Making changes through your home, such as widening doorways or installing ramps, can significantly improve accessibility.

Financing options like grants and loans, along with possible tax deductions, can help make these renovations more affordable. It’s important to explore all available resources and consult with professionals to determine the best financing solution for your handicap home modifications.

If you think a personal loan could be helpful, SoFi’s home improvement loans range from $5K to $100K, and you may be able to get same-day funding. Plus, there are no fees required.

FAQ

Does Medicare or Medicaid cover accessible home renovations?

Medicare does not cover home modifications. However, Medicare Part B does cover durable medical equipment (such as hospital beds) if it’s medically necessary for use at home.

In some states, disabled individuals who are eligible for Medicaid may benefit from Home and Community-Based Services (HCBS) programs. You will need to check with your state if it offers HCBS benefits.

How do I make my home ADA compliant?

The Americans With Disabilities Act (ADA) seeks to ensure that persons with disabilities have equal access to — and convenience in — public spaces via a range of codes and recommendations. While the ADA doesn’t cover private, single-family homes, it offers helpful guidance for making your home accessible. Following the Guide to the ADA Accessibility Standards when making modifications could also be helpful for your home’s resale.

Are ADA renovations tax deductible?

ADA renovations may be tax deductible as medical expenses, provided they are medically necessary and you itemize your deductions.

Just keep in mind that the amounts must be reasonable and any expenses incurred for aesthetic or architectural reasons cannot be deducted. Also, any amount you spend for accessibility modifications that increase the value of your home cannot be claimed as a medical-related expense.

Are there home loans that cover handicap home modifications?

Yes. The USDA’s Single Family Housing Repair Loans & Grants programs provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.

The U.S. Department of Housing and Urban Development’s 203(K) Rehab Mortgage Insurance program allows you to finance (or refinance) a mortgage and include the costs of home improvements in your balance.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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

College is a great place to make lifelong friends. In college, students bond over shared interests, have fun times together, and help each other through some challenging times, cementing bonds that can last for years after graduation.

When you first arrive on campus, however, making friends in college can seem intimidating. Exactly where and how do you meet people? It can feel especially challenging if you go to a large school or you’re in unfamiliar territory, like a college that’s far away from home.

Don’t stress. Making friends in college can be easy. The key is to get involved early on, put yourself out there, and always try to be your true self.

Here are some ways you can go about making friends in college.

Hang Out With Your Roommates

Whether you chose your roommate or went with a random pairing, you may or may not have a lot in common with this individual, at least from the outside. Nevertheless, it can be a good idea to try to forge a connection with your roommate. This will not only make your living situation more enjoyable, but you’ll be able to turn to your roommate when you need support.

You can bond with your roommate by cooking meals, watching favorite shows, and studying together. It can also help to be considerate and respectful of your roommate by not making too much noise late at night or early in the morning, cleaning up after yourself, and chipping in for shared supplies. By respecting your roommate’s boundaries and establishing ground rules for the room, you’ll be more likely to have a good relationship, and perhaps even become good friends, with your roommate.


💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Join a Fraternity or Sorority

If you join a fraternity or a sorority, you’ll have the opportunity to make a lot of new friends. While some fraternities and sororities may have bad reputations because of their hazing practices and emphasis on parties, many focus on philanthropy and building friendships instead.

Just keep in mind that joining Greek life can cost $100 to $1,000 per semester, since you are generally required to pay fees or dues. The cost will vary depending on the school and chapter you join, and there may also be additional fees for first-year membership.

You’ll also need to apply to get into a sorority or fraternity and go through a recruitment process to ensure it’s going to be a good fit. Then, if you’re accepted, you will typically live with your fraternity or sorority in a house on campus and socialize and volunteer with them on a regular basis.

Recommended: 11 Strategies for Paying for College and Other Expenses

Get Involved in Clubs

Another easy way to make friends in college is to join a club. At the beginning of the school year, colleges will typically have club fairs, where club leaders set up booths and give information about their clubs to incoming freshmen and transfer students. This is where you can learn more and sign up for an initial meeting.

Some of the various types of clubs you can join include religious, political, academic, cultural, media, and community service clubs. For instance, students can join the school paper, radio or TV station, participate in math and science groups, join an on-campus religious group, find the school’s Republican and Democrat clubs, and volunteer at local animal rescue organizations or homeless shelters.

If you can’t find clubs you’re interested in, you may be able to start one of your own. You’ll likely have to go to the proper office on campus and follow the guidelines for establishing a new club.

Recommended: How to Get Involved on Campus in College

Find Study Buddies in Your Classes

Another avenue for making friends in college is through your classes. You might start or sign up for a study group, which allows students in the same class to do homework and study for tests together. If you make a connection with another student in a study group, you might suggest hanging out after the group is over or meeting up for a coffee or meal on campus another time.

Sign Up for Sports

One of the ways that many students go about making friends in college is by joining a sports team or an intramural sports club on campus. The sports teams are for athletes who are interested in playing on schools’ official teams, while intramural sports clubs are just for fun. Schools offer a variety of different sports like basketball, football, soccer, golf, tennis, and swimming. You can check out the campus life and sports section of your school’s website and look into the options.

Audition for the School Play

Theater clubs or the theater department on campus may hold auditions for school plays. You might consider auditioning for a part and making friends with the cast and crew members during rehearsal. Putting on a play can be a strong bonding experience, allowing you to cultivate lasting friendships.

Recommended: 10 Ways to Prepare for College

Go to Campus Events

Schools are always putting on events. This might include concerts, talent shows, guest speaker series, music festivals, stand-up comedy, and more. You might ask acquaintances to go to an event and/or meet new friends there. If the event is crowded, you might need to be a little more outgoing and start up conversations with the people nearby in order to (hopefully) make friends.

Connect With Other Student Workers

If you have a job or internship on campus, you might try to strike up conversations with your colleagues, as long as it doesn’t interfere with your work. Some places students may work on campus include the college’s admissions office, the endowment office, the dining hall, the coffee shop, the art museum, and the library.

Recommended: Am I Eligible for Work-Study?

Go to Social Gatherings

If your roommates or friends are holding a social gathering or going off campus to check out a local movie theater or restaurant, consider tagging along. This can be a great way to strengthen the bonds you already have, as well as meet new people. Just keep in mind that while parties can be fun, they can also distract from schoolwork and you could end up with lower grades if you are partying too often.

Recommended: The Ultimate Guide to Studying in College

Ask People to Hang Out One-on-One

Whenever you meet potential new friends in classes or through clubs, consider inviting them to hang out one-on-one to get to know them better. For example, you might ask them out for coffee or a meal, to an on-campus concert or show, to work out at the gym, or to a sports game. While this involves putting yourself out there, the rewards of making a new friend can be well worth the risk that they’ll say “no.”

The Importance of Being Yourself When Making Friends in College

Although you may be worried about making new friends in college, you generally don’t want to change your personality or hide who you really are in order to fit in. It may be a little tough at first, but by joining clubs you’re interested in and finding people who accept you for who you are, you could make lifelong friends. It can take some time and might not always happen within the first semester. However, you’ll want to keep trying to meet and connect with new people throughout your four years at college.


💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

Affording College

College is where you can set yourself up for professional success as well as make wonderful new friends. However, if you don’t know how you’ll pay for it, you might feel even more anxiety before embarking on this exciting next step in your life.

Fortunately, there are a number of ways to cover the cost of attending college, including grants, scholarships, work-study programs (which are also great for making friends), and subsidized and unsubsidized federal loans. If you get your financial aid letter and still have gaps in funding, you might also consider a private student loan.

Private loans are available through banks, credit unions, and online lenders. Unlike federal student loans, they require a credit check. However, if you have solid credit (or can recruit a cosigner who does), you may be able to qualify for a competitive interest rate. Just keep in mind that private loans may not offer the same protections that come with federal loans, such as income-driven repayment plans and forgiveness programs.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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When housing costs are high, it’s hard to imagine that your home could ever go down in value. But the truth is it can, particularly if you aren’t actively maintaining your home. If you neglect small repairs, over time these issues can become large — i.e., expensive — problems that can drag down the resale value of your home.

Whether you plan to sell in the near or far-off future, here are some simple (and relatively low-cost) ways to maintain — or even increase — the value of your home over time.

Update, Update, Update

If a home that’s for sale has an updated anything, the real estate listing will scream it out in ALL CAPS. This can apply to appliances, cabinetry, countertops, flooring, bathroom remodels, kitchen remodels, and more.

If your kitchen is due for an update, try to keep in mind that this doesn’t necessarily mean stripping it to the studs and starting from scratch. Are the cabinets in good shape? Consider a fresh coat of paint or stain to reflect the latest color trends.

In addition, something as simple as upgrading to matching appliances or installing a garbage disposal or water filtration system could help maintain value — even if they’re not top-of-the-line.

Also keep in mind that “update” means bringing the home’s aesthetics into line with current styles — replacing brass fixtures for brushed bronze, for example, or swapping out carpet for wood. However, it doesn’t necessarily mean having to buy the most expensive version of that aesthetic.

Something as simple as adding some USB outlets to a room could turn it into a potential home office space.
Other, more expensive updates might adjust the actual layout of the home. If your current house only has one bathroom, is it possible to find a space for another half bath? Are there unused rooms or wasted space that could be updated to become more functional?

Recommended: 10 Small-Bathroom Remodel Ideas

Keeping Your Roof in Good Repair

Replacing a roof is costly, so it’s a good idea to do what you can to extend the life of your current roof as long as possible. A roof that shows signs of wear and tear can also be a big red flag to potential home buyers.

To maintain the value of your roof (and avoid other costly problems like leaks), you’ll want to replace any missing shingles or damaged areas as soon as possible. It’s also a good idea to have your roof cleaned regularly to remove any algae, moss, and mold that can damage the roof over time. Finally, be sure to get your gutters cleaned regularly so water can drain rather than collect on your roof.

Recommended: The Ultimate House Maintenance Checklist

Keeping Your Exterior Paint in Good Shape

Maintaining your home’s exterior paint not only helps your house look attractive and well-cared-for but also protects it from moisture. When paint starts peeling, water can find a way in, which can cause your siding to rot over time. Replacing sections of your siding can end up being a much costlier project than periodically freshening up your paint.

It’s a good idea to give your exterior paint job a look-over once a year to see if you any areas may need attention. This can help your paint job last longer and save money in the long run.

Pruning Your Trees and Shrubs

Maintaining your yard is a lot of work if you do it yourself, and costly if you hire a landscaper. But neglect can cause dead branches or an entire tree to fall in a heavy rain or wind storm, and can cause significant damage to your home. Overgrown shrubs can also bring unwanted bugs close to, and eventually inside, your home (more on that below).

It can be worth hiring a tree expert to evaluate and, if necessary, prune your trees once a year. You can regularly trim back hedges and bushes yourself or hire a landscaper to do the job.

Upgrading Energy Efficiency

Making your home more energy efficient is one of those goals that’s great not only if you’re selling, but also if you want to reduce spending on utility bills. And it doesn’t just mean big investments like switching to solar or wind-powered energy. Making your home more energy efficient can also be as simple as replacing bad weather seals, ensuring that the attic has sufficient insulation, paying attention to the air and heating systems, and using energy-efficient light bulbs and appliances.

Upgrading the energy efficiency of your home is something that might even be rolled in with another project, such as maintenance or updating.

Installing Smart Tech

Even if your home is more than 100 years old, adding smart tech can make it 21st-century ready. Smart home assistants like Google or Alexa, for example, can control everything from the lights to the TV to locking the front door.

They can also allow you to remotely control your heating and air temperatures, make sure the oven is actually turned off, and even give you a sense of security with security systems or video door bells. In order for the home assistants to accomplish all of these features, additional smart appliances may be required.

While some types of home tech are hard-wired into the house and others are more portable, even being able to say “wired for surround sound” can be a bonus on a home listing.

Smart home tech is not only quickly becoming a must-have for many homebuyers, adding it to your home can be a perk even if you have no immediate plans to move.

Recommended: What Are Common Uses for Personal Loans?

Keeping the Bugs at Bay

One important job that comes with homeownership is keeping unwanted critters outside where they belong. Public enemy No. 1 in this category? Termites. They can wreak havoc on a home’s wood structures leading to costly repairs.

The problem is so widespread that some home loan companies require buyers to get a “termite letter,” which is basically a guarantee that the home is free from termite damage.

DIY recommendations for keeping the pests at bay can also check off items on the home maintenance list, including keeping gutters and downspouts flowing, filling in any places where water pools around the home or in the yard, filling in cracks in the foundation, pruning shrubbery close to the home, and keeping air vents free and clear.

Beyond termites and the havoc they wreak, there are a variety of other living creatures that can cause damage to a home or surrounding property, including attic squatters like mice or raccoons, carpenter bees, moles, mosquitoes, and even grasshoppers that brunch on beautiful landscaping.

Recommended: What Are the Most Common Home Repair Costs?

Making Improvements Affordable

While some home maintenance projects are relatively low cost, others require a more significant investment. Before sinking a lot of money into a home maintenance or improvement project, it can be a good idea to use a Home Project Value Estimator that can help determine whether it’s a smart investment.

If you decide to move forward on the project, you’ll want to get estimates from at least three different contractors. Once you know the cost of the project, your next question may be, how are you going to pay for it?

For a small to midsize home maintenance project, you might consider using a home improvement loan. Unlike a home equity loan, these are unsecured personal loans — meaning your home isn’t used as collateral to secure the loan. Lenders decide how much to lend to you and at what rate based on your financial credentials, such as your credit score, income, and how much other debt you have.

With a home improvement personal loan, you receive a lump sum of cash up front you can then use to cover the costs of your home project. You repay the loan (plus interest) in regular installments over the term of the loan, which is often five or seven years.

If you think a personal loan might work well for your home maintenance project, SoFi could help. SoFi’s home improvement loans range from $5K-$100K and offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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

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Loud budgeting is a money-saving trend that is encouraging people to be honest with others about their finances and feel okay about saying “No” to expensive invitations.

The concept was first introduced by TikTok content creator and comedian Lukas Battle in late 2023 as an alternative to “quiet luxury” and involves talking openly — or loudly — about your financial goals and spending limits to those around you. Since Battle first coined the term, TikTok has been deluged with videos extolling the benefits of loud budgeting and how to do it.

Is it time to get on the loud budgeting bandwagon? Maybe. While you can’t trust all the financial advice you get on social media, many finance experts say that loud budgeting is rooted in a time-honored financial principle — that people should make spending decisions based on their budgets and savings goals, rather than peer pressure or FOMO.

Here’s a closer look at what loud budgeting is and how to incorporate this approach into your own life.

The Psychology of Loud Budgeting

When it comes to maintaining close ties to friends and family, it can be hard to decline an invitation to a catch-up dinner, reunion weekend, or destination wedding — even if you’re not comfortable with the cost. So, you might grudgingly say “Yes,” and figure you’ll deal with the financial fallout later. Or, you might say “No,” but make up a fake reason why you can’t be there. Neither option is ideal.

Loud budgeting offers an alternative solution — bowing out while being honest about your money concerns. It’s based on the premise that staying close and connected with people you care about doesn’t have to cost a lot. Often, it just takes one member of the group to say “No,” and suggest a way to bring down the cost of a social outing or gathering.

Recommended: 7 Tips for Living on a Budget 

Benefits of Practicing Loud Budgeting

While loud budgeting isn’t for everyone, it has a number of benefits. Here are some to consider.

Reduced Financial Stress

Money worries can be a significant source of stress. Loud budgeting can immediately take some of the pressure off by making it acceptable to opt out of social plans that will cause you to spend more than you can afford. Over time, loud budgeting can help you grow the balance in your bank account, pay down debt, and achieve your goals — all of which can improve your financial well-being.

Improved Financial Transparency

While talking about money has long been considered taboo and can even trigger shame, loud budgeting aims to reduce the stigma around having financial limitations. Instead, it advocates being transparent about your budget and why you’re choosing not to spend your hard-earned cash on something. By starting the conversation, loud budgeters may also encourage others in their circle to be more authentic and honest about their finances.

Enhanced Support System

Not everyone will necessarily be receptive and understanding when you get loud with your budget. But there is also a good chance that you will get support from others who (unbeknownst to you) are in the same financial boat. This can help you build a community of people working towards similar financial goals. Your community can help hold you accountable to your plan. You can also share tips and experiences and cheer each other on when you achieve success, such as reaching a savings goal.

How To Implement Loud Budgeting in Your Life

If you’re interested in trying out this Gen Z budgeting trend, here are some tips for how to incorporate loud budgeting into your life.

Determine Your Priorities

Budgeting (loudly or quietly) is about making sure your spending aligns with your priorities. So a great first step is to sit down and lay out some specific and achievable financial goals, along with a timeframe for when you want to reach them. For example, maybe you want to pay off your credit cards in the next six months or put a down payment on a home in one year. Knowing what you want to accomplish gives you the “why” behind your loud budget and helps you stick to your plan.

Build a Basic Budget

Before you can get loud about your budget, you actually need to make a budget. To do so, you might start by looking at what’s coming in each month (on average) and what’s going out each month (on average). If your total monthly spending is higher than your total monthly income — or it’s about the same (meaning you’re not saving anything) — you’ll need to adjust accordingly. 

There are all kinds of budgets, but one simple framework to consider is the 50/30/20 rule. This entails allocating 50% of your monthly take-home income to needs, 30% to wants, and 20% to saving and paying more than the minimum on your debts. 

Once you come up with a basic budget, it’s a good idea to track your spending (there are budgeting apps that make this easy) to see how well you’re sticking with the plan and, if necessary, make some tweaks to your budget.

Be Honest With Others

Once you have a clear sense of your budget, priorities, and savings goals, don’t be afraid to share this information with friends and family. While you don’t have to delve into the intricate details of your finances every time you decline a social invitation, you can say that you’re trying to spend less and be better about managing your money. You might also talk about some specific goals you’re trying to achieve. Being honest in this way can help make it easier to decline costly invites and keep you accountable to your plans.

Suggest Alternatives

When someone in your circle suggests an outing that doesn’t work with your budget, consider suggesting alternative options. For example, if you can’t swing an expensive brunch, you might suggest a picnic in the park. Or if your friend group wants to spend the afternoon shopping, see if you can entice them to go hiking instead. The idea is to find some simple, wallet-friendly ways to have fun and stay connected without sacrificing your financial health.

Find Allies

Sticking to a budget can be a lot easier when you have a supportive community — or even just one or two allies — who are on the same financial page. If you can’t find any good budgeting buddies in your circle, you might search the #loudbudgeting hashtag on your social media channels to find others who are blazing the same path. This can help you build a community of people who can hold you accountable and cheer you on as you hit your goals. 

Recommended: 7 Different Types of Budgeting Methods 

The Takeaway

Loud budgeting promotes being more honest about your financial circumstances and goals, rather than accepting expensive invites out of fear of being a wet blanket and then dealing with the aftermath. While it can be challenging to speak your truth, being vocal about your budget can strengthen your connections and help you stay committed to your financial health — not just while it’s the latest trend on social media, but throughout your adult life.

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FAQ

How can I start loud budgeting without oversharing?

While loud budgeting involves being open about your financial situation, you don’t have to share sensitive details about your finances with everyone you know. Rather than lay out the specifics of your income and monthly bills, you can simply say that you are working toward a particular goal (like paying off your student loans or saving for a home) and trying to be more responsible about spending, saving, and managing your money. That can help explain why you are declining invitations to, say, pricey meals out or weekends away.

Does loud budgeting work for all income levels?

Yes, loud budgeting can be effective for all income levels, as it primarily involves being open about your financial goals and priorities with those close to you. While higher earners may be focused on wealth building and investment strategies, lower-income loud budgeters might share how they are working towards being free of credit card debt, building an emergency fund, or saving for a down payment on a home.

What apps or tools can help with loud budgeting?

Any budgeting app that helps you make better spending decisions can assist you with loud budgeting. Even better if the app allows you to track and share your progress with others. You might consider the tools your bank offers for budgeting. Other options include YNAB (You Need a Budget), which can help you create a plan for every dollar you earn; Goodbudget, which digitizes the “envelope system” of budgeting and allows you to share your budget categories with family or friends, or Honeydue,which helps couples sync bank accounts, credit cards, and more for easier viewing of your financial picture.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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