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Live in Oregon or thinking of moving there? If so, you might be interested in knowing where you stand salary-wise compared to other 49 states.

The latest figures from the U.S. Bureau of Labor Statistics (BLS) reports the average annual income for Oregonians is $66,710, That’s slightly higher than the average annual salary in the U.S. of $65,470. Of course, an individual’s yearly earnings depend on several factors, including their occupation, level of education, age, and professional experience.

Here’s a closer look at the average salary in Oregon by age, city, and county, along with some of the highest paying jobs in the Beaver State:

Average Salary in Oregon by Age in 2024

As with other states, the highest earners in Oregon fall within the 25 to 64 age range, with a salary decline around retirement time. The salary peaks tend to be commensurate with age and experience. Not surprisingly, entry-level salaries in Oregon tend to be on the lower end of the spectrum.

Recommended: U.S. Average Income by Age

Average Salary in Oregon by City in 2024

You don’t need a money tracker to tell you that the city you live in can greatly influence how much you make each year. Oregon is no different. Per ZipRecruiter, here are the average salaries in 10 Oregon cities:

•   Myrtle Point: $92,446

•   Salem: $76,125

•   Gold Beach: $74,126

•   New Hope: $70,922

•   Nesika Beach: $70,351

•   Portland: $69,904

•   Melrose: $68,811

•   Coquille: $68,534

•   Bunker Hill: $68,454

•   Eola: $67,962

Average Salary in Oregon by County in 2024

Salaries can vary per county as a result of different factors. These can include whether the county is home to a larger city, where there’s more variety in work opportunities, a need for skilled workers, and the possibility of higher pay.

According to the latest Oregon state government figures, here’s an overview of the average annual salary in select counties:

•   Morrow County: $64,067

•   Benton County: $62,757

•   Sherman County: $57,081

•   Linn County: $51,902

•   Umatilla County: $50,758

•   Douglas County: $50,220

•   Tillamook County: $49,350

•   Klamath County: $48,488

•   Curry County: $44,201

•   Wheeler County: $36,359

Examples of the Highest-Paying Jobs in Oregon

A well-paying job can allow you to live a very comfortable lifestyle in Oregon. Oregon’s top paying jobs provide a six-figure salary, and tend to be in the medical field. However, occupations in business, science, and technology also make the list of some of the biggest salaries.

According to the BLS, some of Oregon’s highest-paying jobs are:

•   Dermatologist: $481,330

•   Anesthesiologist: $444,090

•   Orthopedic surgeon: $421,790

•   CEO: $371,290

•   Obstetricians and gynecologists: $329,680

•   Psychiatrist: $287,370

•   Pediatrician: $219,110

•   Computer and Information Research Scientist: $178,790

•   Dentist: $177,440

•   Physicist: $169,720

There are other occupations in Oregon with an annual salary of $85,000 or more a year that can allow for a more flexible schedule or be done remotely, such as an art director, financial specialist, web designer, or writer. These are jobs that can easily be work-from-home situations, which can offer opportunities for introverts.

Whatever your current salary, there are always ways to maximize your earnings by monitoring your spending and setting up a budget. A budget planner app can help with both.

Recommended: 2024 Net Worth Calculator by Age with Examples

The Takeaway

Considering moving to Oregon and wondering if you can afford it? The average annual income for Oregonians is $66,710, which is slightly more than $65,470, the average annual salary in the U.S. There are many counties and towns in Oregon where making this amount of money can provide a nice quality of life, though some cities and certain regions will be more expensive. However, the state is home to many high-earning occupations, and people between the ages of 25 and 64 are in a prime spot for earning a livable salary in the Beaver State.

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

FAQ

What is a good average salary in Oregon?

The median household income in Oregon is $86,780 according to the Federal Reserve Bank of St. Louis. The size of your family, your basic expenses, and the area you live, as well as other factors, can determine how far the money can stretch.

What is the average gross salary in Oregon?

The average annual gross salary in Oregon is $66,710, which breaks down to a monthly salary of $5,559.17 and $2,565.77 biweekly. This translates to $1,282.88 weekly, $256.58 daily, and an hourly wage of $32.07. Since the median rent in Oregon is $2,228 a month, you’ll want to earn more than the median yearly salary in order to be able to cover all of your expenses and possibly have some left over for savings and entertainment.

What is the average income per person in Oregon?

The annual average personal income in Oregon is $65,426, per the latest figures from the Federal Reserve Bank of St. Louis.

What is a livable wage in Oregon?

In order to make a living wage in Oregon, a single adult without children in Oregon needs to make $50,553 a year. This covers the basic cost of living, including housing, transportation, food, and medical care. For two working adults with two kids, the required income needed (before taxes) is $93,735.

Photo credit: iStock/StockRocket

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

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

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.

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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The average salary across the United States sits at $63,795, per the Social Security Administration. So an income of $300,000 per year — more than four times that figure — is by most standards a great salary for a single person in 2024.

Of course, even a large amount of money can come up short if you don’t have a solid budget in place or if you lead a particularly expensive lifestyle.

Below, we’ll dive into the various considerations.

Is $300K a Good Salary?

If you’ve just been offered a job with this figure in its compensation package, you may be wondering, “Is $300,000 a good salary for a single person?”

The thing is, there’s really no one-size-fits-all answer to that question. While $300,000 per year is substantially more than most people — or even most U.S. households — make, whether or not it’s comfortable for you depends on your lifestyle choices and expectations.

Median Income in the US by State in 2024

You may be wondering how much you make compared to your neighbors. Median yearly household income varies significantly by state, ranging from Mississippi’s $52,985 to Maryland’s $98,461. However, nowhere in America does the median household income come anywhere close to $300,000 per year.

Average Cost of Living in the US by State in 2024

Just as median income varies significantly depending on which state you’re in, so does the state-by-state cost of living. This means that $300,000 can go a lot further in, say, Arkansas than it would in California.

While these figures are just averages — and the state-wide cost of living can vary substantially depending on which city you live in — here’s the average cost of living in each of the 50 states:

How to Live on $300K a Year

No matter what you earn, figuring out how to spend (and save) your money takes effort and planning. Although it may seem like, with a six-figure salary, you can just buy whatever you want, if you don’t take the time to lay out how much money you’re actually taking home each month — and how much needs to be set aside for regular, necessary expenses like housing, insurance, food, and utility bills — you could quickly find yourself eating into your savings or even spiraling into credit card debt.

A money tracker is a great way to get a bird’s-eye view of where your funds are really going. This can be a first step toward deciding where you want them to go, rather than letting them whisk themselves away.

How to Budget for a $300K Salary

Whether you’re earning an entry-level salary or sitting in the C-suite, a little bit of budgeting can go a long way. But how?

The first step in budgeting is to determine how much money you make each month, which, in the case of someone earning a $300,000 salary, is about $25,000 before taxes are taken out. Because state taxes can vary significantly, you’ll need to look at your own pay stubs or do the math to determine how much is left afterwards, also known as your “net” income.

Once you know your net income, you can begin to deduct your regular, expected expenses. These include your housing payment (like rent or a mortgage), insurance payments, utility bills, and other recurring regular expenses (like your Netflix subscription). You should also set aside a budget for required monthly expenses that may vary a bit but are still critical, like groceries and fuel, or transportation.

Now, you can subtract your monthly expenses from your monthly earnings to determine how much discretionary income you have to do with what you please, including setting aside at least some of it for savings.

Sounds like too much work to do this all on paper? Fortunately, there are plenty of budget planner apps that can make the process a breeze.

Maximizing a $300K Salary

Just because you earn a lot doesn’t mean you have to spend a lot. And if you’re careful with your over-average salary, you can save money for the future and help safeguard your lifestyle for the long run.

For example, if you saved just 10% of your $300,000 per year salary, that would be $30,000 per year into your emergency fund or investment account. Especially if you choose to invest it, that amount can really add up over a relatively short amount of time — increasing your overall net worth and potentially even giving you the opportunity to retire early!

Quality of Life with a $300K Salary

Because a $300,000 per year salary is so much higher than the average cost of living in most states, most people who earn this much will find themselves able to afford a very comfortable, high quality of living anywhere.

Of course, the money can still go further in some places than others. For instance, on $300,000, you might be able to afford a small mansion in Mississippi — or an 800-square-foot apartment in Manhattan.

Is $300,000 a Year Considered Rich?

Given that the average salary in the U.S. is about 21% of $300,000, yes, many would consider someone earning $300,000 per year by themselves to be rich.

However, in most states, you’d need to make substantially more than $300,000 per year to be in the top 1% of earners. The states where you’d come closest are West Virginia and Mississippi, where the top 1% earn at least $367,582 and $381,919 per year, respectively.

Is $300K a Year Considered Middle Class?

The amount of money you’d need to earn to be considered middle class varies depending on where you live. But according to the Pew Research Center, it’s between about $47,189 and $141,568 per year on average. Which is to say, no, $300,000 per year is not considered middle class in the vast majority of cities and scenarios.

Example Jobs that Make About $300,000 a Year

Don’t make $300,000 per year (yet), and curious about how to make the dream a reality?

You might consider opening your heart to cardiology, which, according to data compiled by SoFi, offers an average salary of $421,330 per year. Medical positions feature prominently among the top-paying jobs, with surgeons, radiologists, dermatologists, emergency medicine physicians, and anesthesiologists all earning more than $300,000 per year.

The Takeaway

A salary of $300,000 is substantially higher than the national average and certainly a “good” salary for a single person in 2024 by most peoples’ reckoning. That said, no matter how much you earn, bad financial habits can bite you in the long run, so don’t forget about your budget.

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

FAQ

Can I live comfortably making $300K a year?

While everyone’s standard of comfort is individual, given how much higher $300,000 per year is than the average U.S. salary, yes, most people would be able to live comfortably on $300,000 per year. Even for high earners, however, having a budget is important. Making a plan for your money helps ensure you know exactly where each dollar is going rather than watching them fly away on their own.

What can I afford with a $300K salary?

With a $300,000 salary, you could afford a lot of things, including, depending on your overall applicant profile, a home priced close to a million dollars. With a high salary and the opportunity to save up money, you could likely afford luxurious vacations or high-end toys and gadgets, too. Again, though, a higher-than-average salary doesn’t preclude you from overspending or going into debt, so be sure to make a budget that accounts for all your necessary and discretionary expenses.

How much is $300K a year hourly?

For those who work 40-hour weeks 50 weeks out of the year, a $300,000 salary comes out to an hourly rate of around $150.

How much is $300K a year monthly?

A salary of $300,000 per year, divided by 12 months, comes out to roughly $25,000 per month.

How much is $300K a year daily?

A gross annual income of $300,000 per year, divided by 365 days, comes out to about $821.92 per day. Of course, most people don’t work every single day of the year. As an estimate for the normal five-day work week, accounting for weekends and typical American public holidays, an employee might work about 250 days per year, in which case a $300,000 salary comes out to approximately $1,200 per day.

Photo credit: iStock/Dusan Atlagic

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

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

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.

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.

SORL-Q224-1906698-V1

By most definitions, an annual salary of $90,000 is considered good. In fact, it’s quite a bit higher than the average salary nationwide, which is $63,795, according to the Social Security Administration. If you’re a single person and only supporting yourself, that income should allow you to cover the necessities with enough left over for saving and entertainment.

But just how far your money goes depends largely on factors like your spending habits, your financial obligations, and the cost of living in your area. If you earn $90,000 and live in San Francisco or New York, two of the priciest cities in the country, you may find yourself pinching pennies or living paycheck to paycheck. On the other hand, if you settle down in a more affordable location, such as Winston-Salem, NC, you should find you can live a more comfortable life on a $90,000 salary.

Is $90K a Good Salary?

While $90,000 a year is generally considered a good salary for a single person, whether that’s the case for you depends on your spending habits and financial situation. For example, if you have a lot of debt or live in a pricey area, you may find it more of a challenge to get by on that salary.

One good way to think about your salary is to look at where your money is currently going. Using a money tracker or other type of tool, make a list of your recurring expenses and see if your income is able to keep up. If it is, then that is a good sign that you are making a satisfactory salary for your situation.

Recommended: U.S. Average Income by Age

Median Income in the US by State in 2024

There are different ways to think about a $90,000 salary. You can compare it to the average salary in the U.S. which as we mentioned earlier is $63,795. Or see how it stacks up against the median national salary, which was $59,384 in Q4 2023, according to the U.S. Bureau of Labor Statistics (BLS). In both cases, $90,000 far exceeds what a typical American worker earns in a year.

But how does that salary compare to what a typical household earns in a year? The answer varies widely by state, as the U.S. Census Bureau data below shows. For instance, Maryland has the highest median annual salary at $98,461 and Mississippi has the lowest, at $52,985 per year.

Average Cost of Living in the US by State in 2024

The cost of living in your area can heavily impact how well you’re able to live on your income. While high salaries and high costs of living tend to go together, there is not always a perfect correlation. A cost of living calculator can help you determine the expenses where you’re living now and where you might consider moving in the future.

In addition, the U.S. Bureau of Economic Analysis compiles a list of how much residents in each state spend on necessities like housing, utilities, food, and health care. That information, found in the chart below, can also be useful.

How to Budget for a $90K Salary

While $90,000 can provide a good life for a single person, it’s still a smart idea to create a budget you’ll be able to follow. After all, no matter how high your income is, you can usually find things to spend it on. And without a budget, it can be easy to spend what you have mindlessly.

There are several ways to approach budgeting. One, the 50/30/20 budgeting method, is straightforward: Simply earmark 50% of your paycheck for necessities (such as housing, transportation, and food); 30% for wants (such as meals out and travel); and 20% for saving and paying down debt.

If you need help getting started, tools like a budget planner app can guide you through creating a budget, tracking spending, and even monitoring your credit.

Maximizing a $90K Salary

You may not be pinching pennies if you’re earning $90K a year, but you’re likely interested in getting the most out of your income. Here are some ideas to explore:

•   Build up an emergency fund. Your rainy-day fund should have enough to cover three to six months’ worth of expenses.

•   Pay down debt. Once your emergency fund is well established, turn your focus to paying off revolving debt.

•   Invest in your future. Have a 401(k) retirement plan through your employer? Check your budget and see if you can afford to ramp up your monthly contributions.

Quality of Life with a $90K Salary

Because a $90,000 annual salary is higher than the average salary in the United States — and a generous entry-level salary for most fields — chances are you can have a good quality of life if you make that much money.

However, everyone’s financial situation is unique, and as mentioned above, different areas of the U.S. have higher or lower cost of living. Your quality of life with a $90K salary is likely to be higher in a state with a lower cost of living, like Iowa or Kentucky, than it is in a state with a high cost of living, such as California or Massachusetts.

Is $90,000 a Year Considered Rich?

There are many definitions for what constitutes being “rich.” Depending on yours, a single person who lives in an area with a low cost of living and earns $90,000 a year might be considered well-off. But it’s worth noting that many definitions of rich typically focus on your total assets rather than your annual salary.

In that case, it may make sense to calculate your net worth, which just involves subtracting your outstanding debts or liabilities from the value of your combined assets. If your assets are worth more than your liabilities, your net worth is positive. If your liabilities are greater than your assets, your net worth is negative.

Recommended: Net Worth Calculator by Age

Is $90K a Year Considered Middle Class?

Depending on where you live and your household size, you may be classified as middle class. According to the Pew Research Center, a middle-class household has an income between $47,189 and $141,568. A $90,000 salary is well within that range.

Example Jobs that Make About a $90,000 Salary

Salaries can vary dramatically depending on the level of experience and the area of the country you live in. With that in mind, here are some jobs that pay around $90,000 per year, according to the BLS:

•   Registered nurse: $94,480

•   Web developer: $92,750

•   Psychologist: $92,740

•   Agricultural engineer: $88,750

•   Dental hygienist: $87,530

If you’re looking for more inspiration, you can also look at lists of the highest-paying jobs by state.

Recommended: 30 Best Jobs for Introverts

The Takeaway

While it’s not quite a six-figure salary, $90,000 for a single person is still higher than the average annual salary in the United States. Because of this, it can generally be considered a good salary for someone who is supporting only themself.

However, your cost of living and your overall financial situation will play a big role in determining your quality of life on a $90K salary. No matter what your salary, a smart first step in establishing a solid financial footing is to create and stick to a budget.

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

FAQ

Can I live comfortably making $90K a year?

Whether you can live comfortably making $90K a year will depend on a number of factors, including your local cost of living, financial obligations, and spending habits. That said, a single person with little to no debt who lives in an affordable area can likely be comfortable with such a salary.

What can I afford with a $90K salary?

While $90K is not quite a six-figure salary, it is close. As such, most single people with a $90K salary should be able to afford all of their necessities, along with some extras including saving for retirement.

How much is $90K a year hourly?

A $90,000 annual salary works out to around $43.27 an hour.

How much is $90K a year monthly?

If you earn $90K a year, your monthly income is roughly $7,500.

How much is $90K a year daily?

A $90,000 salary breaks down to approximately $375 per working day.

Photo credit: iStock/alvarez

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

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

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.

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.

SORL-Q224-1906652-V1

Sinking funds are tools that people or businesses can use to set aside money for a planned expense. For instance, you may know that you want to take a vacation next year, so you may start putting cash in an envelope in order to save up for that vacation. That, in effect, is a sinking fund.

Sinking fund categories, as such, depend on the expenses relevant to each individual. They can include auto repairs, health care costs, gifts, insurance payments, vacation funds, and more.

You can think of sinking funds as a way of “sinking” your money into an account for later use. It’s basically a savings strategy. We’ll get into it more below.

General Definition of Sinking Funds

The term “sinking fund” has its roots in the world of corporate finance, but mostly refers to the way that an individual would utilize them: for setting aside money or various types of income for a future expense.

Sinking funds are smaller offshoots of an overall budget. Putting together a sinking fund entails stashing money in reserve for the future, knowing what that money will eventually be spent on.

For instance, some people like to pay their car insurance in six-month installments. They may sock money away each month in anticipation of the next six-month installment payment, so that they’re not hit with a big expense all at once.

Their car insurance sinking fund contains the money they need, so they don’t have to scramble to cover the cost every six months.

Examples of Sinking Funds Categories

When it comes to sinking funds categories, there are no hard and fast rules. Different individuals have different financial needs and planned expenditures. As such, their sinking funds categories are going to vary. That said, some common sinking fund categories are applicable to most individuals. Here are some examples:

•   Vacations

•   Gifts and holiday-related expenses

•   A new vehicle or regular maintenance and insurance costs

•   A home purchase or home maintenance expense

•   Medical and dental costs

•   Childcare costs

•   Tuition expenses

•   Pet expenses, such as veterinarian visits

A sinking fund can be helpful in saving for just about anything.

Recommended: How to Set Your Financial Goals

Sinking Fund Category Calculations

Setting up a sinking fund is easy enough: You can stuff cash under your mattress or use a savings vehicle like a savings account. The difficulty for most of us comes in regularly contributing to it. But the trickiest part may be figuring out how much you should be contributing.

A budget planner app can come in handy, as you’ll be able to see how much money you have to dole out to your sinking fund categories after your monthly expenses have been taken care of.

Similarly, if you stick to a certain budget type — such as the 50/30/20 rule — that may help determine what you can contribute.

To calculate how much you can contribute to a sinking fund, first you’ll need to decide which sinking funds are the most important. Another consideration is which fund will need to be utilized first — perhaps you have an auto insurance payment coming up before a vacation. Priorities and timing both affect your sinking fund calculations.

In corporate finance, there is an actual sinking fund formula that helps a company figure out how much it needs to put away to pay off a long-term debt in a lump sum, while paying minimum amounts in the meantime. This can apply to individuals, too.

The formula looks at the amount of money already accumulated, multiplies it by any applicable interest, then divides it by the time period remaining on the loan. Using this calculation can tell you the monthly amount needed to be contributed to a sinking fund to reach a debt-payoff goal.

For individuals, however, it can be as simple as looking at your monthly income and dividing extra cash accordingly into your sinking fund categories.

Types of Sinking Funds

How do you save up a sinking fund? There are a few savings vehicles you can utilize.

The most obvious, and probably the simplest, is to keep the sinking fund in cash, and store it somewhere safe. Of course, that money won’t be earning any interest, and will likely lose value on an annual basis due to inflation, but it’s one way to do it.

Perhaps the best and safest option is to open up individual savings accounts at your financial institution for each of your sinking fund categories. This beats cash because your sinking fund is protected (and insured up to $250,000 by the FDIC), and you will earn a little interest on it, too.

Recommended: Money Market Account vs Savings Account

Best Time to Take Advantage of Sinking Funds Categories

Sinking funds are all about using time to your advantage, by saving up for a planned or known expense well ahead of time. As such, the best time to take advantage of them is when that expense finally does arrive, be it a pricey vacation, a new car, or sending a child to college.

There may be times or periods during the year when it’s more advantageous to save than others. For instance, most people experience a financial crunch during the holiday season — there are gifts to buy, parties to attend, and other demands on your income. So that may not be the best time to “sink” money into a fund.

Instead, think about when you may have some extra money, such as when you get a tax refund or receive a cash gift for your birthday. Those are the times when you may want to add something to your sinking funds.

The Takeaway

Sinking funds are designated cash reserves for future expenses. Using a sinking fund means that you’re stashing money away for an upcoming, known expense, and relieving some of the financial pressure of that expense ahead of time.
Sinking fund categories can vary, depending on your individual situation. Corporations and businesses also use sinking funds.

Sinking funds are a way to get ahead of your planned expenses, and give yourself some financial wiggle room. A money tracker app can help you do the same.

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

FAQ

What to put in sinking funds?

You’ll put cash in a sinking fund — cash to use on an upcoming expense at a later time. What that expense is (i.e., a sinking fund’s category) will vary depending on your specific financial needs.

What is a sinking fund leasehold?

A sinking fund leasehold contains funds for repairs or renovations to a rental property. The leaseholder or landlord sets aside a small percentage of the rental money collected every month to build up the fund.

What is the difference between a reserve fund and a sinking fund?

The two are more or less the same. The big difference is that a sinking fund’s contents are designated for a specific purpose or expense, whereas a reserve fund contains funds used for general future expenses.

Photo credit: iStock/Delmaine Donson

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

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

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

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

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Anyone can use a money order to send or receive money. While money orders aren’t the most common tool, they’re usually simple to obtain and cash. To cash a money order at no charge, visit your local post office branch and present your money order at the window.

In this article, we outline where to cash postal money orders and what the process looks like.

What Is a Postal Money Order?

A postal money order is a type of financial certificate issued on paper by the post office. Similar to a paper check, the document is worth the amount of money determined by the person or company that purchased it. While you can obtain a regular money order from almost any bank, only the United States Postal Service (USPS) issues postal money orders.

Unlike a check, a postal money order is prepaid by the party sending it, so it can’t bounce. Money orders also never expire. A receipt is provided to the purchaser in case the money order is lost, stolen, or damaged. As a result, you can use a postal money order to securely send a payment through the mail.

Another advantage of money orders is that they are difficult to counterfeit. You can make a payment of up to $1,000 with a single order.

To send a money order, you must pay for it ahead of time using cash, a debit card, or a traveler’s check. Although it is possible to buy a regular money order with a credit card, you cannot put postal money orders on a credit card.

Recommended: What Is a Niche Bank?

How to Cash a Postal Money Order Step by Step

If you receive a postal money order, you can redeem its face value by cashing it. There is no advantage in keeping a postal money order long-term, since it doesn’t earn interest and cannot be used directly to make a purchase.

Here’s how to cash a money order at the post office for free:

1.    Bring the money order and a photo ID to a post office service counter.

2.    Sign the money order in view of the postal worker (do not sign it ahead of time).

3.    You will immediately receive the cash value of the money order.

Where to Cash a Postal Money Order

You can cash a postal money order in certain places outside the post office. Many banks will cash postal money orders, as long as you have an account there. Some grocery stores and retailers will cash money orders, too.

Because proof of ID is required, you cannot deposit money orders via a mobile banking app.

List of Places That Cash Money Orders

Here are some locations that may cash a postal money order:

•   Most banks. Check with your local branch.

•   Check-cashing retailer. Consumers without a bank account or nearby post office may cash money orders here for a fee.

•   International postal office. The post office offers special international money orders that can be cashed at banks and post offices in some other countries.

•   Rural mail carrier. Some mail carriers may cash money orders for rural customers if they have enough cash on hand.

•   Some supermarkets and major retailers. Search online for “places to cash a money order near me.”

Recommended: Alternative to Traditional Banks

How to Identify a Fake Postal Money Order

You’ll want to examine your money order before attempting to deposit it in order to ensure it’s authentic. Here are a few ways to spot a fraudulent postal money order:

•   Look closely at the paper. Valid postal money orders have special markings and designs to prevent fraud. Visit USPS.com to view a sample money order.

•   Review sum amount. If the dollar amount is faded, too large, or not printed twice on the paper, it could be fraudulent. All postal money orders must be under $1,000 and have the sum printed twice on the paper. International postal money orders cannot exceed $700, or $500 for El Salvador and Guyana.

If you think your postal money order is fake, contact the U.S. Postal Inspection Service at 1-877-876-2455.

Recommended: 7 Ways to Cash a Check Without a Bank Account

The Takeaway

Cashing a USPS money order is a straightforward process. Your local post office can cash a postal money order at no cost to you. You may also be able to cash a postal money order at a bank branch if you have an account there, or at your local supermarket.

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

FAQ

Can you mobile deposit a USPS money order?

Unfortunately, you cannot use mobile deposit for USPS money orders. Instead, you must deposit it in person with a valid ID.

Where can I cash a money order for free?

You can cash a postal money order for free at your local post office. You may also be able to cash it at your local bank branch.

Can you cash a money order online?

Since you need proof of ID to deposit a postal money order, you usually can’t deposit it online.

Photo credit: iStock/Delpixart

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

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

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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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