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America loves its furbabies. As of 2024, 66% of U.S. households (86.9 million homes) own a pet. That’s a lot of snuggles and pats, but they do come at a price. A price that, thankfully, is more negotiable than you think, without skimping on love or care.

Pet parents are vulnerable to the same heartstring tugs that parents of human babies feel. You want to keep them happy and healthy, paving the path to a long life, and you are willing to pay the price.

Smart shoppers, however, know how to save money on pets and where they can safely trim costs. Here, we offer 19 tips for lowering costs.

Common Pet Costs

Whether you select a Labradoodle from a breeder on a rustic Pennsylvania farm, adopt a tabby kitten from a crowded West Coast shelter, or anything in between, you will likely face these basic expenses:

•   Neutering or spaying

•   Collar, leash, harness

•   License fees

•   Microchipping if you choose, to track a lost pet

•   Vaccinations

•   Food, treats, and toys

•   Vet bills

•   Boarding or pet care if you travel

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your < a href = "https://www.sofi.com/banking/savings-account /" > online savings account.

19 Money-Saving Tips for Pets

Pet care can get pricey. Hidden fees can pad your expenses, and even if you pay the average cost of pet insurance, your critter’s care may not be cheap.

But you can make costs more manageable. Be sure to comparison-shop and ask friends and neighbors for recommendations. These tips will also help you navigate the road to being a good pet parent without going broke.

1. Buying Pet Medicines Online

When the vet prescribes meds, it’s to help heal whatever is ailing your pet. Sites like Chewy.com and PetMeds.com generally charge less for prescribed pills and ointments than your vet’s office. They also typically sell heartworm, flea and tick, and other non-Rx medicines at lower prices. You can typically schedule autoship and qualify for free shipping at a certain spend threshold.

Recommended: 5 Ways to Achieve Financial Security

2. Keeping Up with Vet Appointments

Keeping up with preventive care can be an example of how to save money on pets. Better to stay on track than skip well visits and find out an eye infection has gone untreated or that your pet has heartworm (generally detected in a routine stool sample test). A vet will typically check joints, ears, eyes, teeth, and weight, and keep your pet up to date on vaccines. (Some areas offer free rabies vaccination clinics. Check your town website.)

3. Researching Pet Insurance

Pet health insurance can cover well care or illness/accident treatment, depending on the policy, and averages $27 a month for a cat and $51 a month for a dog (for a policy that covers 80% of bills after a $250 deductible, with a $5,000 annual cap). It’s advised to insure a young pet; later, a pre-existing condition may prevent coverage.

But let the buyer beware: An online search can produce a dozen lists of the “best” insurance, but most are on sites that make money from a brand if you click and purchase. Check to see if your “human” health insurer has a pet policy. Other reputable organizations, such as the ASPCA, offer pet insurance, too.

4. Walking Your Pet Yourself

If you are home to walk your pooch, you can save a bundle. Professional dog walkers can get pricey, with rates ranging between $10 and $35 per 30-minute walk. You’ll pay even more for group doggie daycare. The going rate for a hired kitty sitter is often about $20 for 20 minutes. Doing the job yourself or asking a young person in the neighborhood to step in can be the most money-smart option.

5. Adopting Instead of Buying

Learning how to budget for a dog? It’s generally more affordable to adopt from a shelter or rescue organization than to buy a pet from a breeder or pet store. Standard adoption fees for dogs can range from $129 to $767; for cats, costs typically run from $39 to $317. Fees may vary by breed but typically cover a veterinary evaluation, vaccinations, deworming, flea/tick treatment, and the cost of spaying/neutering.

Recommended: Guide to Practicing Financial Self-Care

6. Spaying and Neutering Your Pets

If it’s costly enough to house and feed one dog or cat, what will happen if she delivers a whole litter? Spaying and neutering is the safe, recommended option for dogs and cats.

7. Researching Human Food Pets Can Eat

Avoid chocolate and other foods that can be toxic to pets (the Humane Society lists potential poisons ). Otherwise, though, some owners make their own say, rice, steamed carrots, and chicken dinner or dog biscuits (using ingredients such as peanut butter, oatmeal, and/or pumpkin). There are even some doggos with refined palates who turn up their nose at store-bought biscuits but love the home-baked ones.

💡 Quick Tip: Bank fees eat away at your hard-earned money. To protect your cash, open a checking account with no account fees online — and earn up to 0.50% APY, too.

8. Buying a Smaller Pet

The bigger the pet, the higher the cost may run to feed, house, and even board or travel with the critter. So before you set your sights on Lassie or Marmaduke, think it over. Can you afford a large pet? A smaller animal may be a cheaper pet to own.

9. Storing the Pet’s Food Properly

Safeguard your pet’s nutrition; you don’t want to waste your investment. Keep dry kibble tightly sealed in a cool, dry place. House mice love to hoard and nibble it. Store any refrigerated pet foods in the fridge and check expiration dates.

10. Joining a Loyalty Club at a Pet Store

Consider signing up for no-cost rewards programs at stores like Petco and PetSmart to earn coupons or discounts. When you enroll in the PetSmart Treats Program, for example, you can earn points for every $1 spent in stores and online and redeem them on services including Grooming Salon, PetsHotel, Doggie Day Camp, and Dog Training.

11. Making Your Own Pet Furnishings & Toys

Here’s how to save money on pet supplies: Get creative. Why buy a cute tent for your kitten? The rascal will prefer to curl up in an open sock drawer or suitcase, or inside a shopping bag. Toys? Cats adore an empty box, a ping-pong ball, or an empty paper towel tube. For dogs, forfeit a designer bed. A cute, washable throw rug on sale makes a soft sleeping pad.

12. Buying Pet Food in Bulk

If you’re driving distance to an animal feed store, price dry pet food in bulk. You may save a bundle. Costco also sells pet food and supplies in multi-packs, a bargain compared to the supermarket.

13. Grooming Your Pet at Home

Shampoos, blowouts, and pink satin bows at the groomer are pricey, and keeping a curly dog coat from matting and knotting requires frequent visits. Early on, get your pet used to at-home grooming. Buy the right tools to clip your cat’s nails and trim your dog’s hair. Brush their teeth and clean their ears, too. You can save a nice amount by DIYing it.

14. Shopping Pet Goods at Discount Stores

Below-retail stores like T.J.Maxx and HomeGoods carry pet holiday costumes, beds, and bowls. Dollar stores often stock pet items, too. (As with human food, check expiration dates on discounted pet food.)

15. Finding a Veterinary Discount Plan

Your job could help you cut petcare costs. Some workplaces offer the perk of being pet-friendly, eliminating the need for doggie daycare or a professional walker. Others provide pet health benefits for employees. Pet Assure can help you know how to pay vet bills because they lower costs at clinics in the network; ask your HR department about it.

16. Training Your Pet Yourself

To save money on obedience training, learn the basics with a guidebook and YouTube videos, or sign up for more affordable group classes at a big-box pet store.

17. Handling Your Pet’s Dental Care

This can take a big bite of your budget, especially when a dog’s teeth decay, requiring anesthesia for extractions. Ask your vet early on about the best brush and toothpaste, how often to brush, and recommended dental chews.

18. Finding Cheaper Pet-Friendly Hotels

It can be challenging to find a hotel that accepts pets when you’re traveling, and harder still to find one that doesn’t add a surcharge for the privilege.

Nearly all Red Roof Inns welcome one pet for free and charge $15 per night for the second pet. (They can’t top 80 pounds, so maybe not an option if yours is Clifford-size.) Other hotels may charge up to $50 or more per night or up to a $75 pet fee per stay, on top of your rate as a human. Doing your research before you hit the road can help you identify the cheapest way to travel with pets.

19. Getting Free Secondhand Crates and Carriers

Rather than buying new, check swap sites for dog crates and cat carriers, or ask on your Facebook page. Many people no longer have a pet but still have a crate or carrier in the basement. As any new parent knows, the importance of saving money is an even bigger issue when you add a new member to your household, even if a canine or feline.

The Takeaway

Owning a pet can be costly, from vet visits to food bills. But the roughly 87 million families and singles with pets is a number that’s growing because of the unconditional love and loyalty a furry friend can bring. You can find plenty of ways to embrace the affection but trim the costs, from DIY grooming and dental care to bargain-hunting at discount stores for accessories.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Are pets worth the expense?

While it’s a highly personal assessment whether a pet is “worth it,” the fact that roughly 87 million U.S. households own pets says a lot about how much people value them. Pets can’t pay us back in money but do lavish intangible dividends, such as love, friendship, joy, loyalty, and companionship. These are gifts you cannot put a price on.

How much does a typical pet cost?

Standard adoption fees for dogs can range from $129 to $767; for cats, costs typically run from $39 to $317. If you buy an animal, there’s a wide range of costs. You could spend very little with someone locally whose cat had a litter or you might pay top-dollar for a purebred dog. After the first year, cat owners can expect to pay from $710 to $2,865 a year and dog owners can expect to pay from $1,000 to $5,225 a year in standard expenses.

What is generally the biggest expense to owning a pet?

Typically, the biggest expense of pet ownership is vet care. A new pet will cost more, due to spaying/neutering. But even after that, you can easily spend several hundred dollars annually to cover well checks and vaccines. For this reason, some people investigate pet health insurance to help with the cost.

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Photo credit: iStock/alexei_tm

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

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

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Inflation has been all over the news in recent years. But what exactly is inflation? By definition, inflation is the gradual increase in the average price of goods and services over time. When a country experiences inflation, its currencies’ purchasing power gets reduced. People feel the pinch, and their money doesn’t go as far.

Inflation can adversely affect an economy, including reduced output and increased unemployment. Hyperinflation, or incredibly rapid, out-of-control price increases of more than 50% per month, does the same, only worse.

The U.S. inflation rate hit record highs in the years following the pandemic. In 2022, the average inflation rate was 8%, the highest since 1981. That said, if we look at other countries, we’ll see that there are far worse cases when it comes to inflation.

In this article, we’ll review 10 incidents of some of the worst hyperinflation in history and its consequences.

Worst Hyperinflation in History

While some inflation can be good for the economy, high inflation can have negative effects on both consumers and businesses.

Inflation is typically considered high when it exceeds the rate of economic growth. For example, when prices rise faster than wages, then workers’ purchasing power declines. This can lead to a decrease in demand (such as less spending and travel), which can cause businesses to reduce production and result in a recession.

What follows are 9 examples of when inflation got really out of hand.

1. Greece: October 1944

Greece faced a severe period of inflation that began when the Germans occupied the country during World War II and continued to get worse. In 1944, prices doubled every 4.3 days and the monthly inflation rate peaked at 13,800%. The government responded by introducing price controls and rationing. However, it took many years before they were able to bring inflation under control. At the beginning of 1947, prices finally began to stabilize and national incomes began to rise, lifting the country out of one of the worst hyperinflation periods in history.

Recommended: How Rising Inflation Affects Mortgage Rates

2. Yugoslavia: October 1994

In the early 1990s,Yugoslavia was hit by an inflation crisis that caused the value of their currency, the Dinar, to drop sharply. Prices doubled every 34 hours. As a result, it was difficult for citizens to purchase everyday items like food and clothing. Many resorted to smuggling goods to get by.

The government attempted to fix the problem by introducing new bills with higher denominations, but this caused more chaos and confusion. In the end, Yugoslavia abandoned its currency altogether and adopted the German mark as its official currency.

3. Germany: October 1923

In October 1923, Germany faced a period of extreme inflation. The government had printed too much money to finance war operations, and prices were skyrocketing. More than a wheelbarrow full of bills was needed just to buy a newspaper. People were losing their life savings, and the economy was in chaos.

To halt inflation, the government introduced a new currency called the Rentenmark. This stabilized the currency, and Germany began to recover from the crisis.

4. Zimbabwe: November 2008

Thanks to years of economic mismanagement by the government of Zimbabwe, in November 2008, inflation hit its peak. The country’s inflation rate was, month over month, 2,600%, or more than 231 million percent on a year-over-year basis. Those mind-boggling numbers meant that a loaf of bread cost what 12 new cars did a decade prior.

To mitigate the issue, the government printed large amounts of money without backing it with gold or other assets. This resulted in a rapid depreciation in the value of the currency. As prices increased, people started losing faith in the currency, leading to even more hyperinflation.

The situation became so desperate that most people could not afford necessities such as food and medicine. The high inflation rate also made it difficult for businesses to operate, and many companies went out of business.

Recommended: How Does Inflation Affect Your Retirement?

5. Hungary: 1946

Hungary experienced a high level of inflation after the end of World War II. The country’s currency, the Forint, was not pegged to the U.S. dollar or any other currency. As a result, it was vulnerable to sharp devaluations. In addition, Hungary was still recovering from World War II, and the government was trying to stabilize the economy by printing money, a factor that can cause inflation, to finance its reconstruction efforts.

As a result, prices doubled every 15.6 hours, and the average person’s standard of living declined sharply. In the second half of 1946, Hungary was home to the most worthless currency in the world, with a banknote carrying a denomination of 1,000,000,000,000,000,000.

6. Argentina: 1975

Starting in 1975, Argentina’s inflation rate increased by an average of more than 300% per year until 1991. Several factors caused the situation, including an increase in the money supply without an equal increase in goods and services. This led to a spike in prices. Another trigger was the decline in agricultural production, which led to higher food prices. Political instability also contributed to high levels of inflation.

7. Sudan: 2021

Inflation in Sudan has been an ongoing problem for several years. The main drivers of Sudan’s hyperinflation are:

•   The depreciation of the Sudanese pound

•   The high rate of population growth

•   The increase in government spending

To address these problems, the government has implemented several measures, including devaluing the currency and reducing spending. Unfortunately, though, these measures have not been fully effective, and inflation continues to be a major issue. As of October 2024, the annual inflation rate was 200.1%.

8. Iran: 2022

Inflation in Iran is a problem that has been going on for many years. The value of the Rial has decreased significantly, and the cost of living has increased dramatically. Undoubtedly, this has caused significant hardship for the people of Iran. In May 2022, inflation was impacting food and beverage prices at a rate of over 80%.

To combat the high levels of inflation, the Iranian government has put various price controls in place. Fortunately, the controls have had an impact: As of October 2024, the annual inflation rate was 31.7%.

9. United States: 1917

The worst inflation rates in U.S. history reflect how harsh life during wartime can be. The highest figure ever observed was in 1776, when the rate of inflation was 29.78%. But, that was more than 100 years before the CPI (consumer price index) was introduced. Since its inception, the highest inflation rate ever recorded in the United States was 20.49% in 1917. The country went to war and had to finance that effort by printing more money.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

What Is the Most Inflated Currency?​​

In the world of finance, there’s a variety of currencies that get used in different countries. While some currencies are more valuable than others, the Venezuelan bolívar is one of the most inflated currencies in the world. That’s due to Venezuela’s astounding inflation rate, which was 360% in 2023. That was the tenth consecutive year that Venezuela earned the distinction of having one of the highest inflation rates in the world. The rate in 2023, however, was a significant improvement over 2018, when it was 65,000%.

The Takeaway

Inflation affects everything from the cost of a loaf of bread to your kids’ college tuition. While Americans got hit with high inflation in years after the pandemic, it’s been far worse at other times in U.S. history, and throughout the world.

One of the best ways to beat inflation is to earn a competitive interest rate on your savings. If your bank pays less than the current rate of inflation, your money actually loses value over time. Generally, online banks offer yields on savings accounts that are many times higher than those offered by traditional banks.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

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Photo credit: iStock/AlexSecret

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

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

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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

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

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

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The cost of housing is the biggest living expense for most people, and lately, it’s been rising fast. If you’re struggling to make ends meet, finding cheaper housing alternatives could be the solution to mending your money woes. There are less expensive ways to live that don’t involve selling your worldly possessions and couch-surfing indefinitely. With a little creativity, and a willingness to simplify your life, you may be able to find affordable, comfortable housing.

What Is Considered Affordable Housing?

The average American spends $2,120 per month on living accommodations. A sound financial goal is to allot 30% of your gross monthly income toward your housing budget, including electricity, heat, and water.

The cost of living by state can vary tremendously, but with rents and utilities rising across the country, the suggested 30% rule can be unrealistic. In certain cities and areas with a high cost of living, housing can eat up 50% of a person’s budget, straining their ability to save and meet financial goals.

13 Cheap Housing Alternatives

When thinking about the cheapest ways to live and trying to open up some breathing room in your budget, ask yourself, “Is my housing situation affordable?” If you are living paycheck to paycheck and not saving, your living situation may have to change. Fortunately, there are a range of possibilities when it comes to seeking cheap housing.

Here are 13 housing alternatives to help cut the cost of living and bring balance to your budget.

💡 Quick Tip: Bank fees eat away at your hard-earned money. To protect your cash, open a checking account with no account fees online — and earn up to 0.50% APY, too.

1. Moving to a Cheaper Area

When looking for cheaper accommodations, one of the biggest moves you can make is a literal one: Move to a place with lower housing costs.

For instance, the costs of the Los Angeles housing market are typically far more than in rural Idaho. Your choice of locale can add hundreds, sometimes thousands of dollars to your monthly bill.

If your job and life situation permits, you could look for a less pricey neighborhood nearby or something more affordable that is within commuting distance of your work. If that doesn’t help make ends meet, it might be wise to consider relocation to another state where the rents are cheaper.

Unfortunately, relocating can be expensive. It can be difficult to tabulate how much money you’d need to move. Resettling in another state may involve the cost of typical moving expenses and supplies, getting a new license and vehicle registration, and other costs.

2. Living in a Recreational Vehicle (RV)

The use of recreational vehicles surged during the pandemic, with people itching to get out of their quarantines and onto the open road. Having an RV can do more than satiate your wanderlust, it can be an affordable housing option.

While a new RV is not cheap, you can find used ones for around the price of a used car. Despite their somewhat restrictive quarters and the constant need for parking, the sense of freedom, including financial, could be worth it, especially if you’re a nature lover. While it may not be a forever move, it can give your budget a break for a while.

3. School Bus Homes

Here’s a quirky way to live more cheaply for a period of time: Get on the bus. A converted school bus is cheaper than an RV. A used school bus can run between $3,000 and $10,000 dollars.

The interior renovations are the biggest cost factor. A school bus conversion, complete with hookups for electricity and water, can cost $20,000 to $30,000.

Parking can be an issue, so do your homework first on everything from national forests to a friend’s roomy property in terms of where to pull up.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

4. Living on a Boat

Perhaps you prefer life on the water vs. life on the road. In that case, choosing a boat as your primary residence could satisfy your inner sea captain and your financial needs.

Not including the cost of a boat, maintaining your nautical lifestyle can run an average of $500 to $2,000 monthly for a couple. But you can reduce your costs by spending more time at sea and less on marina fees. Of course, if you have a Monday-to-Friday office job, this will be a challenge. For those with flexible or work-from-home schedules, it could work.

5. Living Abroad

With the cost of living rising in the U.S., some people are looking beyond the borders for affordable housing. Your dollar can go far in places like Vietnam, Costa Rica, and Thailand, as long as you can work and procure the proper visas.

However, establishing a permanent residency in a foreign country can be tricky, and shipping your stuff internationally can be a hefty expense. You’ll want to do the research and do the math before making a move, but it could be an option — and an adventure — for some.

6. Renting a Guest House

You can lower your housing costs by moving into a garage apartment or a mother-in-law suite in someone’s home. What you sacrifice in space and privacy can be made up in savings on rent and utilities. If a friend or acquaintance has one to let, great. Also look at the usual rental listings for options on this front.

Recommended: How Much Should I Spend On Rent?

7. Living in a Mobile Home

What else is among the cheapest ways to live? Purchasing or renting a mobile home can be way more affordable than an apartment or house. Utilities are sometimes included, but be sure to factor in the costs of the lot fees, community fees, and other charges imposed by the trailer park landlord.

8. Moving into a Tiny Home

Tiny houses have exploded in popularity, popping up on TV shows and social media feeds. The term describes compact dwellings of no more than 600 square feet or so, with many of them being just 225 square feet. If you don’t have enough of a down payment for a traditional house, a tiny home offers a more budget-friendly alternative and hip design options. The cost of a 250- to 300-square-foot prefab tiny home runs between $30,000 and $80,000, a fraction of the figure for a full-sized home.

Not ready to commit to close quarters? Renting a tiny house can run between $600 and $900, still cheaper than a lot of apartment rentals. But you may have to pay for storage for all your oversized belongings.

9. Living in a Shipping Container Home

Believe it or not, one of the newest cheap ways of living can involve cutting-edge high design. Repurposing shipping containers into industrial-chic small homes has become a trend lately. These containers are way cheaper than a house and can be configured in unique ways, combining multiple containers for more square footage.

In terms of how much you’ll spend, converting a container to a livable space with one bedroom and a bath could cost you $25,000 to $82,000.

10. Living as a Live-In Caretaker

If you’re looking for employment as well as more affordable housing, being a live-in caregiver can be an ideal situation. You could look after an elderly or disabled individual in exchange for a free room and a monthly salary. Another option is being an au pair or nanny, which can work well if you love kids.

11. Being an On-Site Property Manager

In terms of finding cheap ways to live, you might explore becoming an on-site property manager if you’re handy. You’d be responsible for superintendent-type duties — garbage removal, cleaning common areas, and the basic upkeep of the building — in exchange for low-cost or free rent.

12. Renting Out a Room in Your Home

Here’s a way to save on housing costs that flips the script. If you are fortunate enough to have a spare room in your house or apartment and don’t mind having a roommate, renting out your extra space can cut your expenses significantly. Just be sure to properly vet the renter before agreeing to an arrangement.

Recommended: 39 Passive Income Ideas to Build Wealth in 2024

13. Move in with Friends or Family

If you need to cut housing costs to the bare bones (perhaps you’re trying to financially survive a layoff), think about family members or close friends who could make room for you. In some cases, you may be able to pay no rent but contribute to the household via cooking, cleaning, and other chores.

While likely a temporary move, it can give you time to save up some funds and, if necessary, break out of habits that make you bad with money and prepare to get your own place again.

The Takeaway

Housing costs can take a big bite out of your budget. If you want to save money or stop living beyond your means, reevaluating your housing situation is a great place to start.

If you are willing to be flexible, and a little unconventional, you can secure an affordable home that suits your lifestyle and your bank account.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Is living cheaply worth it mentally?

Living cheaply and within your means can typically bring financial peace of mind and allow you to save for the future. However, if taken to an extreme, frugality can cause some people a high level of stress.

What are the hidden costs of living in affordable housing?

While affordable housing can save you money down the line, there are expenses such as down payments, first-and-last month’s rent, security deposits, and the costs of moving or storage units to consider. Also look out for broker’s fees when renting if cheap ways to live is your goal.

Are there monthly rent payments at mobile homes?

Yes, you can rent a mobile home by the month. Be sure to ask the landlord about common fees, who covers utilities, and other potential additional costs. Different properties have different policies, and you don’t want any surprises if you move in.

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Photo credit: iStock/Marje

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

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

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

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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

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

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

SOBNK-Q424-038

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In the United States, people tend not to bargain too much: A price is a price, period. Yes, when you are bidding on a house or negotiating the price of a car, there is typically a bit of give and take, but otherwise, not so much. In other parts of the world, however, haggling in shops and markets is an indelible part of the culture.

Maybe American consumers should borrow this global tradition. Even here in the States, haggling can result in significant savings on electronics, household goods, hotels, and clothing. Also, haggling is really about the art of negotiation, and successful haggling can work wonders for your confidence and business savvy. Here’s what you need to know about when, why, and how to haggle.

What Is Haggling?

Haggling is a way to bargain. It’s a process of negotiation between the buyer and the seller. While almost everyone would agree on the importance of saving money, different cultures have different approaches to haggling. For example, Westerners are often unaccustomed to haggling, but in less developed countries of Southeast Asia, for example, bargaining and haggling is expected. Locals will engage in a back and forth on price for everything from fresh food in markets to hotel prices in order to save money.

Haggling can take some practice because it requires a measured approach and a strategy. The more you haggle, however, generally the more successful and confident you become at it. And as you build your haggling skills, you’re likely to unlock more discounts. In fact, many people enjoy haggling and find it to be an easy way to save some money.

How Does Haggling Work?

If you’re wondering how to haggle successfully, let’s consider a specific example. Imagine you have your eye on a pre-owned car. The price of the car is $25,000, but you only have a budget of $22,000. To try to negotiate a price of $22,000, first determine if $22,000 is a fair price for that car. Look up the make, model, and year in Kelley Blue Book and check to see at what price other sellers are listing the same exact car.

If you determine that $22,000 is a fair price, a savvy haggler would offer a somewhat lower price, perhaps $20,000. At the same time, the buyer would make a case as to why their offer is fair. They might point out damage to the paintwork or worn tires. The seller may counter the buyer’s offer with $24,000, to which the buyer responds with $21,000. Eventually, the two parties may meet somewhere in the middle and agree to the price of $22,000. At least, that’s the theory of how haggling works.

Places Where You Can Haggle

Haggling, or negotiating, is acceptable in many contexts, not just when buying a car, a home, or in salary negotiations. Here’s a list of other places to haggle:

•   Flea markets and craft fairs

•   Retailers

•   Suppliers

•   Resale platforms and dealers

•   Appliance repairs

•   Home improvement services

Places Where You Likely Cannot Haggle

Haggling is not socially acceptable in many commercial enterprises. Here’s where you typically should not to haggle:

•   Many commercial businesses

•   Restaurants

•   Supermarkets

That said, if you were at a Target or a department store, and were trying to buy an item that is a floor sample, is damaged (scratched or torn, say), or has some other reason that might merit a price reduction, it’s fair to politely try to haggle your way to a discount.

Advantages of Haggling

The obvious advantage of haggling is paying less for something you want, but there are a couple of other pros as well.

•   For sellers, haggling may allow them to sell more products and yield better returns.

•   Haggling is a way to practice negotiation skills and build confidence.

13 Money-Saving Haggling Tips

Now, let’s dive into the details on how to haggle. Here are some simple tips on how to approach haggling that can help you save money.

1. Adopt a Strong Mindset

To successfully haggle, you generally need to tamp down any urge to spend impulsively. If you feel as if you “have to have” an item, be it a car or a handbag, it will be even harder to resist a high price or a bad deal.

Instead, try to adopt a strong money mindset and know the difference between needs and wants. Tell yourself you won’t overpay, regardless of how badly you want the deal to work out. You can always find something similar at a better price.

2. Do Your Research

What is a good price for a purchase you’re planning on making? Before you enter into negotiations, you’ll want to know the item’s market value. Look up other similar items to see what they are going for. In the case of a car, refer to the Kelly Blue Book. For other items, an online search should yield comparable items with prices to inform your decision.

3. Consider Other Factors and Items in Your Haggling

How to bargain effectively can call for creative thinking. For example, if you are buying a car, you could offer cash to the seller up front instead of paying in installments. Or you might consider trading an item you have with a seller in order to secure the item you want.

4. Have a Target Price in Mind

It can help to know your haggling limits in advance. In the example of a car negotiation given earlier, the buyer had a target price in mind that they kept under wraps. They attempted to reach agreement at the desired price with the seller by first offering a lower price than they were really willing to pay. Then, they and the seller gradually came to a mutually satisfactory price. Having a strategy like this when haggling can help you avoid the risk of paying more than you want to.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

5. Let the Seller Know Your Budget

Alternatively, a haggling tactic can be to let the seller know your budget at the outset. For example, you might say, “I love that rug but I see that it’s $750 and I can only pay $600. Is a deal possible?” That way, you are taking control of the situation, and the seller can take it or leave it.

6. Find Out the Condition of the Item

Just because you’re haggling, it doesn’t mean that you drop all of your usual smart-shopper moves. Don’t hesitate to inquire about the item in detail; it’s important to ask questions before making a purchase. Its condition is critical to the item’s value. You may be able to use any blemishes or wear and tear to negotiate a lower price.

7. Be Confident

Be direct about the fact that you are negotiating and are looking for a discount. Approach the seller with confidence, rather than apologizing for trying to get a better price. This can give the impression that you know what you are talking about and are serious. A seller may well be more likely to consent to a confident buyer’s request or offer.

8. Avoid Insulting the Seller

When haggling, it’s important to always respect the other party. Lowballing a seller can be insulting because the implication is that you are not taking them seriously or you think their merchandise is wildly overpriced. Have a good idea of the market value of an item before you make your lowest offer by researching other similar items and their prices.

One rule of thumb is not to expect a discount of more than 20% when haggling. However, there are some forums (like eBay’s “Best Offer” listings or on Poshmark) where you might get lucky with an even better deal.

9. Time it Right

Many salespeople have monthly sales quotas, and, as the end of the month approaches, they may be more inclined to accept a lower price. To find the best deals, you might hold off on haggling until the end of the month. Also, sellers may want to move inventory at the end of a season or if the item is going out of style. If your seller wants to get rid of inventory, you are more likely to get a better deal.

10. Make Life Easy for the Seller

Here’s another trick for how to bargain effectively: Let the seller know that you can make the deal easy and quick for them. Explain that you’ll take possession of the item immediately, or that you can pay cash. The less work the seller has to do to move inventory and the less a transaction costs them, generally the more inclined they will be to accept your offer.

11. Turn on the Charm

A little flattery can often work wonders. Believe it or not, part of knowing how to negotiate a better deal involves being as polite and friendly a customer as possible. Be interested in the person you are talking to and compliment them on their business. Another good strategy is to listen more and talk less. Rather than asking questions that require a yes or no answer, ask open-ended questions. For example, instead of asking “Can I make you an offer?” ask “How flexible are you to negotiation?” In addition to getting the seller to engage, you learn more about their needs and are in a stronger position to bargain.

Recommended: How to Negotiate House Price as a Buyer

12. Know When to Walk Away

Haggling won’t always work in your favor. Be prepared to throw in the towel if the seller does not agree to your final offer. There’s no point going in circles or thinking if you wait long enough, the seller will relent. And don’t let any frustration or temper come into play.

Sometimes, it’s best to just walk away. And you never know: Some sellers may see you leaving and wind up taking your best offer after all, rather than lose the deal.

13. Don’t Take Things Personally

Haggling is simply business. It is not a reflection of the buyer or the seller. If you don’t reach agreement on a price for an item, chalk it up to experience. People don’t always agree on things, and nor should they. Don’t let feelings of failure creep into the picture.

The Takeaway

Haggling is the process of negotiating a price for an item or service. Except for some specific situations — like negotiating a house purchase or bargaining down the price of a new car, when some back-and-forth is a given — Americans tend not to be hagglers. However, there may be plenty of situations when you can haggle and get a better deal, whether on a floor model at a big box retailer or a vintage chair at an antiques fair. By knowing the right polite haggling moves, you may be able to snag some satisfying discounts.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Is haggling illegal?

Haggling is not illegal, but in the United States, there are contexts where haggling is not socially acceptable. These include commercial businesses, such as restaurants and supermarkets.

Is haggling frowned upon?

Haggling isn’t necessarily frowned upon, provided it’s done politely and in the proper context. In some cultures, it is even expected and part of the buying experience. However, lowballing is universally considered insulting. Sellers are often willing to take up to 20% off; offering just a fraction of the listed price could sink the deal.

Can you return something you haggled over?

If an item does not meet your expectations, even if you managed to get it at a discount price, you can try to return it. The terms of the sales agreement, if any, will outline the legal obligations of the seller. If there is no written agreement or receipt with returns stated, the seller is under no obligation to accept the return or to give you your money back.

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

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

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

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Paying off debt is a long-term commitment that requires discipline, and staying motivated until your debts are paid off can be a major challenge. Consider these examples:

•   If you have a student loan of around $38,000, it can take seven and a half years to pay off with monthly payments of roughly $500, according to the Education Data Initiative.

•   If you have $10,000 of credit card debt at a 20.39% interest rate and want to pay it off in three years, you’ll have to pay $373 every month.

It may sound daunting, but here’s a pep talk: The advantages of paying off debt are well worth the effort. With more money to spend each month, you can invest and build a nest egg toward retirement or simply save for luxuries like vacations. Paying down debt can also help build your credit, giving you access to loans with more attractive rates and terms in the future.

To help you buckle down and say goodbye to your debt, read on to learn how to stay motivated while paying off your debt.

Why It’s Hard to Stay Motivated When Paying Off Debt

Paying down debts can feel like an uphill, almost endless battle. Depending on how much you have to pay off, the process may take many months to years and require some uncomfortable sacrifices you’d rather not make.

With a few changes to your money mindset, however, you’ll likely find that paying down debt becomes easier as you go along and learn better money management.

If you are ready to get rid of debt, read on to learn 15 ways to stay motivated.

15 Ways to Help You Stay Motivated When Paying Off Debt

Here are 15 tips to help setting yourself up for success. They’ll give you a boost as you consider how to stay motivated while paying off debt.

1. Remember the “Why”

Why have you decided to pay off your debt? Are you tired of never having as much spending money as you’d like and watching the debt pile up? Do you hate the idea of dollars flying out of your bank account to pay for interest? Do you have financial goals that are falling ever further out of reach?

Whatever your reasons, remind yourself regularly why you are working so hard and monitor your progress so that you can see the results.

2. Get Organized

Achieving a goal is easier if you have a plan. Your strategies to become debt free might include consolidating your debt with a lower-interest loan, or you might decide to get a roommate and save on rent.

Whatever your method, plan a budget that you can live with and set up automatic payments each month so that you don’t have to think about your bills daily. (This will also help you avoid late fees.) Then, be disciplined, stick to your budget, and watch your debt diminish.

3. Have an Accountability Partner

Telling someone you are working on paying down debt can help motivate you. Called an accountability partner, this person could be your spouse, a friend, or a financial advisor. If you worry about telling your accountability partner that you fell off the proverbial wagon, remember that nobody’s perfect. Don’t beat yourself up. Just get right back on track with some encouraging words from your partner.

4. Put Yourself in an Uncomfortable Situation

Achieving a goal often takes acknowledging the difficulty saving money can present and then pushing through it. Paying down debt will require making changes to your lifestyle so that you can live more economically.

That might mean going out less with friends, not spending so much on clothes, or moving in with parents temporarily. Feeling uncomfortable is not a bad thing; it can be a powerful motivator. You will power through any feelings of deprivation to get on better financial footing going forward.

5. Track Your Progress

When you initially decide to tackle accumulated debt, it can seem overwhelming. By tracking your payments and your diminishing debt, you will see progress. This in turn can give you confidence and enhance your saving motivation as you stick with your plan.

6. Have a Vision Board

Staying motivated while paying off debt can involve having a vision of what you will do once you are debt free. Use that as a motivator, not just in your mind but in your home. Perhaps you want to take a vacation to London once you pay off your credit card balances. You might post your goal where you can see it so you are reminded each day of your intention. You might even create a vision board with photos of your goal to help spur you on. Whether it’s pics of the West End theaters or teatime at a posh hotel, those photos can be motivating.

7. Celebrate the Small Wins

Find ways to reward yourself as you gradually pay down your debt. These special treats should be inexpensive (so as not to blow your budget) but meaningful. It could be picking up and reading the latest book by your favorite author, a meal out with friends, or buying yourself new running shoes. Build room into your budget for rewards.

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

8. Have Like-Minded Friends

Surround yourself with people who will encourage you to spend less rather than overspend. Friends who like going out to expensive restaurants or shopping at expensive stores are generally not going to help your cause. There are lots of ways to socialize that don’t require spending a boatload of cash. For example, grab a coffee with a friend, or go for a hike. Don’t let keeping up with the Joneses (when the Joneses are big spenders) foil your efforts.

9. Reach out to Others

Knowing that you are not the only one fighting debt is comforting, and hearing success stories will encourage you to continue. Seek support by listening to others.

Podcasts on personal finances and online discussion platforms can provide community and give you ideas on how to manage your debt.

10. Focus on the End Date or End Goal

Have an end date or a final goal, and mark it on your calendar. Plan to reward yourself for your hard work when you reach it. It might be a weekend away or finding a new apartment now that you have freed up some cash in your budget. Looking forward to something will keep you motivated.

11. Listen to Sound Financial Advice

How to stay motivated to pay off debt comes down to making informed decisions that hasten the process. It’s important to make sure the financial advice you listen to comes from reliable sources. Many finance “gurus’ on YouTube and social media platforms may not give out the best advice. Find a financial advisor via recommendations if you are unsure of the steps to take to pay down your debt or need additional guidance.

12. Choose a Repayment Method that Makes Sense

There is more than one way to pay off what you owe, and the debt repayment strategies you choose should suit your particular situation and financial goals. You might choose the debt snowball method, where you pay off your smallest debts first for some early wins, or you might pay off the debts with the highest interest rates first to save the most money.

Feel as if you are in too deep of a debt hole? Consulting with a financial advisor or a credit counselor at a nonprofit can help you find the best ways to get the upper hand over your debt.

13. Break Repayment Down Into Smaller Goals

It helps to break down any overwhelming task into smaller goals. For example, if you’re interested in debt consolidation, the first step might be to do some research on the topic. The next step might be to arrange a loan with the bank and set up payments. Then, set goals to achieve after six months, 12 months, 18 months, and so on. It can help motivate you to pay off debt to see the individual steps that will get you there.

14. Earn Extra Money

You’ll pay off debt quicker if you can earn extra money. Think of ways to increase your income. Can you do overtime, gig work, or part-time work? You might meet new people and expose yourself to a whole new industry that interests you. Who knows? It could be the start of an entirely new career.

Recommended: 11 Benefits of Having a Side Hustle

15. Gamify Your Debt Repayment

Setting a challenge for yourself can add a sense of fun to paying off debt, and it can boost your confidence. For example, you might set a goal of making an additional $1,000 this month from a side hustle. Or each month vow to briefly give up a typical bit of discretionary spending, such as no take-out coffee for one month. The money saved goes towards debt. Gamifying can help you reach your goals quicker, just make sure your challenge is achievable.

The Takeaway

Paying down debt can be a long process, and it is not easy to stay motivated. Some of the ways to stay motivated when paying off debt are to acknowledge exactly how much you owe and then develop a plan, with clear benchmarks, to whittle it down. It also helps to reach out to others to learn their experiences, set achievable milestones, and reward yourself when you reach them. These steps can help keep you going untill you reach that debt-free finish line.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Does paying off debt make you happier?

Paying off debt can be difficult at first, as it usually involves making some uncomfortable changes in your lifestyle and budget. Ultimately, however, paying down debt can come as a huge relief. It also frees up funds you can use to achieve your goals and improve your quality of life.

What are the benefits of paying off debt?

Paying off debt can lift a large weight off your shoulders. It also frees up funds you can now use in other ways, such as saving for an upcoming vacation or a downpayment on a home. In addition, taking control of your finances and paying off debt are huge accomplishments that can boost your confidence to tackle other challenges.

Is it worth it to pay off your debt?

Paying down debt helps reduce the amount you’re paying in interest. This frees up money to use for other purposes, such as saving for short- term goals and investing for the future, which can help you build wealth over time.

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Photo credit: iStock/BartekSzewczyk

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

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

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

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