A person’s net worth describes their total financial value, and is calculated by subtracting their liabilities from their assets. Though we generally discuss net worth in relation to very wealthy individuals, it can be important for people who aren’t billionaires to know their net worth as well.
A person’s net worth can be an important reference point in understanding one’s financial position. Net worth can be negative, especially early on in one’s careers. But net worth can help an individual figure out how much they need to save, how much spending they need to cut back on, or how much they’ve saved for retirement.
How to Calculate Net Worth
If you’re wondering how to calculate net worth, it’s actually a simple formula:
Assets – Liabilities = Net Worth
The hard part is usually determining a person’s assets and liabilities. And a person’s assets can go beyond what they have in their checking account. In fact, a person’s assets can include a whole host of things.
Assets
Assets basically boil down to how much money you have, as well as the value of things you own. In order to know one’s net worth, estimate the value of each asset below:
• Money in savings accounts
• Money in checking accounts
• Money in investing or retirement accounts. Brokerage accounts or 401(k)s are in this bucket.
• Physical cash
• Value from insurance policies
• Value from business ownership or stakes
• Value of cars
• Valuable personal goods, like jewelry or art
• Value of real estate, including home
Calculating the value of a home can be a task in itself. It’s important to research the value of the homes around you, the size of your home, any deferred maintenance on the home, additional benefits like parking spots, backyard space, room count, etc. There are a number of home value calculators online, too.
• Liquid Assets: Items like stocks, bonds, mutual funds, or ETFs that are easy to sell quickly and whose sale will not greatly affect their price.
• Fixed Assets: These are items that would take a longer time to convert to cash. These assets are often deposited for extended periods of time in exchange for high interest accrual and thus cannot be cashed before their agreed-upon time frame is up.
• Equity Assets: Equity assets include your shares in a company, either private or public.
Intangible Assets, such as brand recognition for a company or any other intellectual property like patents, trademarks or even goodwill, are trickier to factor into your net worth due to the complexity of measuring their value.
Liabilities
Liabilities are debts. The following categories are what most often make up liabilities:
• Auto loans
• Student loans
• Personal loans
• Business loans (personally guaranteed)
• Credit card balances
• Mortgages
While liabilities are on the negative side of the net worth equation, it doesn’t necessarily have to symbolize something negative about your finances. For example, student loans or mortgage loans are typically seen as necessary loans that individuals take on as they reach milestones in life, like going to college, graduate school or buying a home.
Meanwhile, knowing one’s total liabilities can help with figuring out a plan to start paying off debt that has higher interest rates, like from credit card balances.
💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.
Median and Average Net Worth in US
An individual or household’s net worth isn’t set in stone, and it ebbs and flows all the time. For that reason, it can be difficult to nail down median or average net worth figures for both individuals and households in the U.S. You can find some numbers if you search for them, but they’re often several years old, and may not be accurate given the time lapse.
For instance, the Federal Reserve tracks median and average net worth data in the U.S., but generally, they do so using survey data that it publishes once every few years. So, while data from a few years ago may be fine, large-scale world events–such as a pandemic, natural disaster, recession, or similar–may have led to large changes in those numbers.
This is all something to keep in mind if you seek out average net worth numbers. It’s not that they’re inaccurate, it’s simply that the data may be hard to capture and synthesize in a reasonable amount of time.
Remember, too, that it’s important to keep abreast of your net worth because this number may fluctuate depending on factors such as stock values, interest rates, real estate trends, and other tides of the financial world. It’s important to have an idea of overall trends so you can generally understand your financial health and have an idea of your true wealth.
💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.
The Takeaway
True wealth can be an important factor in knowing when you might expect to retire. It’s a good idea to focus on your gains year over year, rather than the number you get at the end of the equation. If you’re concerned about your net worth or are hoping to increase it, especially for future retirement goals, then it might be helpful to consider investing.
There are a multitude of things that can have an effect on your net worth. And focusing strictly on your net worth probably shouldn’t be your focus. If you’re concerned about it, though, it may be worthwhile to talk to a financial professional.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
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For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
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For a full listing of the fees associated with Sofi Invest please view our fee schedule.
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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While prenups and postnups aren’t as romantic as discussing your honeymoon or your dream house, these agreements can be a financial lifesaver if your marriage were to end.
Both prenups and postnups help determine who would get what if you and your spouse got divorced.
These two varieties of agreements carry some significant distinctions. Depending on your circumstances, one may better suit your relationship versus the other.
Here, you’ll learn some of the key ways prenups vs. postnups differ, as well as how to decide if you and your partner would benefit from getting one.
What is a Prenup?
Short for “prenuptial agreement,” a prenup is a legally binding document set up before a couple gets married — hence the “pre” suffix. Prenups may also be known as “antenuptial agreements” or “premarital agreements,” but the bottom line is, they’re contracts drafted before vows are made.
These contracts typically list each party’s assets, including property and wealth, as well as any debts either soon-to-be-spouse might carry.
It then details how these assets will be divided in case the marriage comes to an end, either through a divorce or the death of a spouse.
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Who Needs a Prenup?
Couples who are getting married for the first time and are bringing little to no assets into the marriage may not need to bother with drawing up a prenup.
However, a prenup can be particularly useful if one spouse is coming into the marriage with children from a previous partnership, or if one partner has a large inheritance or a significant estate, or is expecting to receive a large inheritance or distribution from a family trust.
These types of agreements aren’t just used in case of divorce, but also death, which can be particularly important for couples with children from a previous marriage.
If that partner dies, the prenup can define how much of their wealth should be passed onto their children versus their surviving spouse.
Prenups can also be useful for protecting assets earned and property acquired during the course of a marriage, which, without a prenup, are generally considered “shared ownership.”
If one partner wants to maintain a separate claim to acquired wealth or possessions, a prenuptial agreement makes that possible.
A prenup can also keep a high-earning partner from being required to pay alimony to their partner in the case of a divorce. However, in some states, a spouse can’t give up the right to alimony, and the waiver may not be enforced by a judge depending on the way the prenup is drafted.
In the event of divorce, a prenup can also help protect a spouse from being liable for any debt, such as student loan payments in a marriage, the other spouse brought into the union.
What is a Postnup?
A postnup, or postnuptial agreement, is almost identical to a prenup — except that it’s drafted after a marriage has been established.
They may not be as well known as prenups, but postnups have grown increasingly common in recent years, with nearly all 50 U.S. states now allowing them.
A postnup may be created soon after the wedding, if the couple meant to do so but simply didn’t get around to it before the big day, or well afterwards, especially if some significant financial change has taken place in the family.
Either way, a postnup, much like a prenup, does the job of outlining exactly how assets will be allocated if the partnership comes to an end.
Who Needs a Postnup?
Along with being drafted whole cloth, a postnup can be used to amend an existing prenuptial agreement if there have been big changes that mean the initial contract is now outdated.
And although it’s not fun to think about, if a couple feels they’ll soon be facing divorce, a postnup can help simplify one important part of the process before the rest of the legal proceedings take place.
A postnup, like a prenup, can help separate out assets that would otherwise be considered shared, “marital property,” which can be important if one partner obtains an inheritance, trust, piece of real estate, or other possession they want to maintain full ownership over.
Postnups can also be part of a renewed effort for a couple to commit to a marriage that may be facing some obstacles and challenges.
Prenup vs. Postnup: Which is Right for Your Relationship?
While it may be a difficult conversation to face with your fiance or spouse, creating a prenup or postnup can be an important step to help you avoid both headache and heartache later on.
If you don’t make a prenup or postnup, your state’s laws determine who owns the assets that you acquire in your marriage, as well as what happens to that property in the event of divorce or death. State law may also determine what happens to some of the assets you owned before marriage.
While almost any couple can benefit from a frank discussion of who gets what in the worst-case scenario, here are the situations in which you might specifically want to consider a prenup vs. postnup.
• If one or both partners have existing children from a previous partnership, to whom they want to lay out specific inheritances in case of death.
• If one partner has a larger estate or net worth (i.e., if one spouse is significantly wealthier than the other).
• If one or both partners want to protect earnings made and possessions acquired during the marriage from “shared ownership.”
When to Consider a Postnup
• If you intended to create a prenup but ran out of time or otherwise didn’t do so before the wedding.
• If significant financial changes have made it necessary to change an existing prenup or draft a new postnup.
• If divorce is looking likely or inevitable, and the couple wishes to streamline the process of dividing marital assets before undergoing the rest of the process.
In all cases, prenuptial and postnuptial agreements can help simplify the division of assets in the case of either death or divorce — and in either of those extremely emotionally charged scenarios, every little bit of simplification can help.
However, prenups are sometimes considered more straightforward, since they’re made before assets are combined to become marital property.
Prenups may be more likely to be enforceable than postnups should one partner attempt to dispute it after a divorce.
• For a prenup or postnup agreement to be considered valid by a judge, it must be clear, legally sound, and fair.
• Couples looking to save money may be able to use a template to create a prenup or postnup themselves.
• It may still be a good idea, however, for each partner to at least have separate attorneys review the document before either one signs.
• If your estate is more complex, you may want to consider hiring an attorney to draft the agreement.
• Either way, having an attorney review the document will help protect your interests and also help ensure that a judge will deem the agreement is valid.
Reducing the Odds You’ll Ever Need to Use that Prenup or Postnup
While creating a prenup or postnup can be a smart move for even the most hopeful and romantic of couples, the ideal scenario is a happily-ever-after that leaves those contracts to gather dust.
Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.
For some couples, one way to improve their odds might be waiting until they’ve achieved some measure of financial stability before tying the knot.
Walking into a marriage with a solid personal foundation, such as a well-stocked emergency fund and a well-established retirement account, can help partners feel empowered and able to focus on other important relationship goals.
Financial transparency, starting before and/or early in marriage, can also help mitigate marital tension over money.
To achieve more transparency, some couples may want to consider opening up a joint bank account, either after they tie the knot or before if they are living together and sharing household expenses.
While there are pros and cons to having a shared account, merging at least some of your money can help make it easier to track spending and stick to a household budget, while also fostering openness and teamwork.
For couples who’d rather not share every penny (or explain every purchase), having two separate accounts along with one joint account can be a good solution that helps keep money from becoming a source of tension in a marriage.
The Takeaway
Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies.
A prenup is drafted before marriage, while a postnup can be drafted soon after or many years into marriage. Both agreements can make divorce or the death of a partner significantly less traumatic and help divide assets in an equitable way.
For both couples who are ready to integrate their finances or want to keep their money separate, opening a Checking and Savings account with SoFi makes things easy. Whether a joint account or not, you’ll spend and save in one convenient place, while earning a competitive annual percentage yield (APY) and paying no account fees.
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Ask couples what they fight about most, and money is sure to be at the top of the list. Decades of research have shown that common clashes are sparked by different spending habits, different financial values (which influence spending habits), and how to raise financially smart kids.
While dealing with money isn’t always easy, it doesn’t have to drive a wedge in your relationship. These strategies will ensure your financial discussions with your partner are productive and — dare we suggest — maybe even something to look forward to.
Meet Regularly — but Don’t Discuss Money
When couples fight about money, the classic mistake is to think that having a regular “money talk” will help solve things. Unlikely.
That’s because the source of most financial disagreements is that one person’s values don’t line up with the other’s. In order to truly ease money stress, you have to start by understanding the bigger wants and needs and priorities of your partner.
Make time to meet regularly and focus on things you both want out of life. It doesn’t have to be a long conversation — maybe 30 minutes, or an hour.
Come Prepared
Consider bringing a list of topics to each meeting, but don’t expect to cover them all. There will be other meetings, and it’s more important to leave each conversation with a sense that you understand each other better. You might raise some common questions:
Do you want kids? Do you want pets? Do you want to live a certain lifestyle? Start a business? Retire early? Send the kids to private school vs. public?
How important is it to have a vacation each year, or is it more important to have a beautiful home — or both?
Do you both believe in working hard and playing hard? Working to live or living to work? These may sound like cliches, but dig into each topic to get at each person’s core feelings.
Create a Safe Space
A key aspect of these non-money talks has to be a spirit of openness, not criticism or judgment. You’re trying to get to know one another in a slightly different way. Ask questions, take time to listen to each other’s answers.
While these sessions may seem uncomfortable at first, having these non-financial conversations may actually prevent important issues from causing conflicts.
Again, keep these conversations fairly short. The idea is to find common ground, and that may not happen right away. So don’t expect to agree, expect to learn something new about your partner.
Look for Shared Goals and Points of Agreement
Even couples that fight about money, also agree on plenty of financial issues. Be sure to pay attention as you discover these points in common, and celebrate the fact that you have them.
Knowing that you have financial goals and priorities in common, not just pain points, can build your confidence and momentum and lead to the good part of all this: Having more fun because you’re not stressed about money squabbles!
Address Financial Topics as Organically as You Can
Rather than set up more meetings (who has time?), you can use your newfound empathy and sense of shared values to tackle topics as they come up naturally in your day-to-day lives.
Now you can talk about spending when you get the credit card bill, or when you have to make a tough choice between two competing priorities. In some ways it’s less stressful to discuss whether to refinance the house or set up a Roth IRA when that question comes up organically, rather than trying to anticipate bigger issues.
Be sure to take the opportunity to make sure you’re including something fun in your financial plan. Money is for the future, and it’s also for the present, so make sure you enjoy it.
Let Go of Resentment
Financial inequity between partners — say, if one person has a lot of debt or there’s a large disparity between incomes — can be a common source of tension.
If you feel like one person’s debt is holding you both back, remember that it doesn’t have to last forever. There are many strategies for paying off debt — talking it through will help you find the right path for you both. You might also decide to meet with a financial advisor who can help you prioritize, budget, and sometimes even refinance to break even faster.
In cases of income disparity, it may help to reframe each partner’s contribution to the household. Yes, one person may bring in more (or all) of the household income, but be clear on the non-monetary intangibles that the other person is contributing. Cooking, cleaning, watching the kids, caring for aging relatives — these duties all add up and represent what each of you is bringing to the household.
Reward Yourselves
Create incentives to stick with your financial meeting schedule. Maybe that means taking your laptops to your favorite coffee shop, or treating yourselves to a movie night afterward.
Another idea is to reward yourselves as a couple after you hit a predetermined financial goal or milestone. For example, every month you successfully increase your emergency fund by a target amount, you might choose to enjoy a nice restaurant meal.
Even a free indulgence — like a walk around your favorite lake after the discussion — can be effective. Just make it something that you both enjoy (bonus points if it’s something that you don’t do all the time so it feels extra special). That way, you’ll look forward to it.
The Takeaway
The best way to take the sting out of discussing finances with your partner is to start by getting in sync as people, understanding each other’s values and perspectives. Scheduling time to talk monthly (or whatever cadence works for you) allows you to also savor the ways you are on the same page already, and what some of those shared goals are.
Don’t try to meet about big hairy financial goals that aren’t on the table yet. You do have to plan ahead, but it’s also important (and less stressful) to address money matters as they arise naturally. Then, get back to the fun of living your lives together the rest of the time.
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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
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For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
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For a full listing of the fees associated with Sofi Invest please view our fee schedule.
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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A wash sale occurs when an investor sells a security at a loss, and buys a very similar security within a 30-day window of the sale (30 days before or after). The wash-sale rule is an Internal Revenue Service (IRS) regulation that states an investor can’t receive tax deduction benefits if they sell an investment for a loss, then purchase the same or a “substantially identical” asset within 30 days before or after the sale.
While investors may find themselves in a position in which it may be beneficial to sell securities to harvest losses, it’s important to know the wash-sale rule in and out to avoid triggering penalties.
Which Investments are Subject to the Wash-Sale Rule?
The wash-sale rule applies to most common investments, including:
• Stocks
• Bonds
• Mutual funds
• Options
• Exchange-traded funds (ETFs)
• Stock futures contracts
Transactions in an individual retirement account (IRA) can also fall under the wash-sale rule. The wash-sale rule does not apply to commodity futures or foreign currency trades. The rule also applies if an investor sells a security that has increased in value and within 30 days buys an identical security. They will need to pay capital gains taxes on the proceeds.
What Happens When You Trigger a Wash Sale?
Investors commonly choose to sell assets at a loss as part of their tax or day trading strategy, or they may regret selling an asset while the market was down, and decide to buy back in.
The intent of the wash-sale rule is to prevent investors from abusing the tax benefits of selling at a loss, and claiming artificial losses.
In the event that an investor does trigger a wash sale, they will not be allowed to write off the loss when they do their tax reporting to the IRS. This means the investor won’t receive any tax benefit for selling at a loss. The rule still applies if an investor sells an investment in a taxable account and buys it back in a tax-advantaged account, or if one spouse sells an asset and then the other spouse purchases it that also counts as a wash sale.
It’s important for investors to understand the wash-sale rule so that they account for it in their investment and tax strategy. If investors have specific questions, they might want to ask their tax advisor for help.
Unfortunately, the guidelines regarding what a “substantially identical” security is are not very specific. The easiest way to avoid wash sales is to create a long-term investing strategy involving few asset sales and not trying to time the market. Creating a diversified portfolio is generally a good strategy for investors.
Another important thing to keep in mind is the wash-sale rule applies across an investor’s accounts. As such, investors need to keep track of their sales and purchases across their entire portfolio to try and make sure that the wash-sale rule doesn’t affect any investment choices.
What to Do After Selling an Asset at a Loss
The safest option is to wait more than 30 days to purchase an asset after selling a similar one at a loss. An investor can also invest funds into a different asset–a different enough asset, that is–for 30 days or more and then move the funds back into the original security after the wash sale window has passed.
There are benefits to selling an asset at either a profit or a loss. If an investor sells at a profit, they make money. If they sell at a loss, they can declare it on their taxes to help offset their capital gains or income. If an investor has significant capital gains to report, they may decide to sell an asset that has decreased in value to help lower their tax bill. However, if they hoped to reinvest in an asset later, a wash sale can ruin those plans.
In some cases, simply selling a stock from one corporation and purchasing one from another, different corporation is fine. Even selling a stock and buying a bond from the same company may not trigger a wash sale.
Investing in ETFs or Mutual Funds Instead
If an investor wants to reinvest funds in a similar industry while avoiding a wash sale, one option would be to switch to an ETF or mutual fund. There are ETFs and mutual funds made up of investments in particular industries, but they are often diversified enough that they wouldn’t be considered to be too similar to an individual stock or bond. It’s possible that an investor could sell an individual stock and reinvest the money into a mutual fund or ETF within a similar market segment without violating the wash-sale rule.
However, if an investor wants to sell an ETF and buy another ETF, or switch to a mutual fund, this can be more challenging. It may be difficult to figure out which ETF or mutual fund swaps will count as wash sales, and which won’t.
Wash-Sale Penalties and Benefits
If the IRS decides that a transaction counts as a wash sale, the investor can’t use the loss to reduce their taxable income or offset capital gains on their taxes for that year.
However, there can be an upside to wash sales. Investors can end up with a higher cost basis for their new investment, because the loss from the sale is added to the cost basis of the new purchase. In addition, the holding period of the sold investment is added to the holding period of the new investment.
The benefit of having a higher cost basis is that an investor can choose to sell the new investment at a loss and have a greater loss for tax reporting than they would have. Conversely, if the investment increases in value and the investor sells, they will have a smaller capital gain to report. Having a longer holding period means an investor may be able to pay long-term capital gains taxes on a sale rather than short-term gains, which have a higher rate.
The Takeaway
The wash-sale rule is triggered when an investor sells a security at a loss, but then turns around and buys a similar security within 30 days–either before, or after. It’s a bit of an opaque rule, but there can be consequences for triggering wash sales. That’s why understanding regulations like the wash-sale rule is an important part of being an informed investor.
Part of making solid investing decisions is planning for taxes and understanding what the benefits and downsides may be for any particular transaction. This is just one aspect of tax-efficient investing that investors might want to consider.
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Nestled within a chain of islands bordering both the Atlantic Ocean and the Caribbean Sea, Puerto Rico is a popular vacation spot. Plus, U.S. citizens don’t even need a passport when visiting although it can feel as if you’ve been transported to the ultimate far-flung tropical beach vacation.
Yes, sand and sea are a big part of the allure. But if you’re wondering what are some cool things to do in Puerto Rico, you’ll likely be happy to know that parks, museums, shopping, and historical sites are all waiting.
Read on to learn about top spots and attractions across the island, plus the best times of the year to go and other important details. With this advice, you’ll be ready to have an amazing getaway when visiting Puerto Rico.
Best Times to Go to Puerto Rico
If you’re looking for warm weather without the threat of hurricanes, plan your Puerto Rico trip for the winter or spring months. Temperatures average in the 80s all year long, but you’re more likely to avoid crowded beaches and other tourist spots if you focus on these milder months during the school year.
In fact, ending your holiday season with a trip to Puerto Rico lets you take advantage of festivals held throughout the island marking the epiphany in early January. Larger street parades are held in San Juan, but you can also find charming events in smaller towns as well.
Bad Times to Go to Puerto Rico
There are a couple of times of year that are less than ideal for a Puerto Rican vacation. Because a large portion of the local population is Catholic, crowds tend to swell around Easter. That could mean more lines and higher prices.
Another relatively bad time to visit: Hurricane season, which technically lasts from June through November. The most severe weather activity occurs between the middle of August through the middle of October. If you do travel to Puerto Rico during these months, consider purchasing travel insurance through an insurance provider or accessing credit card travel insurance.
Before you figure out where to keep your travel fund, calculate how much it will likely cost you. Flight costs vary depending on where you live and what time of year you plan to go.
Once you’re on the island, here are some estimated costs: Food costs can total $39 a day, and local transportation to be about $18. The average nightly hotel cost is $277 for a couple and $139 per person, though there are certainly ways to save money on hotels.
You’ll likely have other incidental costs as well, but here’s how much a week-long Puerto Rico vacation could cost once you’re there.
No matter where you plan to stay, there are fun things to do in Puerto Rico across the entire island. The list you find here gathered intel from top-rated attractions on online review sites. In addition, travelers who have explored the island shared their knowledge. As a result, you’ll find a diverse range of activities for people of all ages and all types of groups, whether you’re going on a friends trip, a romantic getaway, or a family adventure.
1. Explore Old San Juan
When visiting Puerto Rico, a must-see is Old San Juan, the historic district of Puerto Rico’s capital city. The streets are lined with colorful buildings featuring Spanish colonial facades. You can take a guided walking tour if you’d love to know all the best historical facts and stories, or you can stroll on your own at no cost.
Be sure to include Fortaleza Street on your itinerary of things to see in San Juan, Puerto Rico. It has beautiful buildings as well as frequent modern art installations. There are plenty of shops and restaurants to try out in the neighborhood, as well as attractions like La Casa Blanca — the former home of Spanish explorer Ponce de Leon. nps.gov/nr/travel/american_latino_heritage/old_san_juan.html
2. Trek Through El Yunque National Forest
The only tropical national forest in the U.S., El Yunque is packed with natural excursions just outside of San Juan. It’s considered one of the top things to do in Puerto Rico. There are plenty of hiking trails, ponds, and a lagoon (complete with a rope swing so you can tap into your inner child).
There are more than 28,000 acres in El Yunque, and trails span 25 miles. You can create a plan for any level of exertion. If you’re staying in the San Juan area, definitely put this on your list of unique things to do in Puerto Rico. Admission is only $2, but make sure you have an advance reservation before you go. Bonus: If you are traveling with a pet, the trails are dog-friendly, though only service animals are allowed inside buildings. recreation.gov/ticket/facility/300017
3. Immerse Yourself in Art
Back in the city, get a dose of world-class art at the Museo de Arte de Puerto Rico. Open Thursdays through Sundays, this museum features permanent collections displaying the work of Puerto Rican artists dating from the 17th century to today.
Explore over 1,000 pieces that include paintings, prints, sculptures, photographs, and more. The museum, which is typically closed on Mondays and Tuesdays, is located in the Santurce neighborhood, which is about a 10-minute drive from Old San Juan. Tickets are $6 (not including taxes) per exhibition for adults; $3 for children. mapr.org/en
4. Get Glowing
One of the best things to do in Puerto Rico is to explore one of three bioluminescent bays, which have an otherworldly glow, thanks to microscopic organisms that light up. Seeing these bodies of water can be an amazing and memorable experience.
Mosquito Bay in Vieques is considered the world’s brightest bioluminescent bay. However, you’ll need to take a short flight or boat ride from San Juan to get there.
Alternatively, you can explore Laguna Grande in Fajardo (which is the closest option to San Juan) or La Parguera in Lajas, which is closer to Rincón. La Perguera is also the only place where you can swim rather than take a boat tour or kayak. The best time to go for any bioluminescent bay tour is December through April when there isn’t a lot of rainfall to cloud the water.
Tours can range from about $50 to $75 per person. This can be a good time to swipe with plastic when paying to earn credit card rewards.
5. Tour a Grand Historical Home
Museo Castilla Serrallés is a great thing to do in Puerto Rico if you love history and architecture. It’s the former home of the Serrallés family (of DonQ Rum), who built the extravagant tile-roofed Spanish Revival castle in the 1930s. It takes just under an hour and a half to drive from San Juan to Ponce where the property is, so you may want to think about getting a rental car.
Today, you can explore the home’s interior, as well as beautiful gardens outside. Learn about the history of rum through immersive exhibits, then stroll through the butterfly garden and Japanese gardens. The property is typically open from Wednesday through Sunday, and tickets cost $15 for adults. museocastilloserralles.com/
6. Get Wet
Located on the northwest corner of Puerto Rico, Aguadilla is about a two-hour drive from San Juan. It’s home to the pristine Crash Boat Beach, which is a great place to indulge in almost any kind of water activity you like, including swimming, snorkeling, and surfing (which is ideal during the summer travel season).
Crash Boat Beach is public, so add it to your list of free things to do in Puerto Rico. It definitely has a lively atmosphere, full of music and food to enjoy when you’re not in the water.
7. Stroll Through El Parterre Park
When you need a break from the beach, check out El Parterre in downtown Aguadilla. This beautifully landscaped park offers the perfect spot to casually stroll under mature trees, and there are plenty of benches for resting, reading, or picnicking, just like a local would. It’s also a good sunset watching spot.
El Parterre contains a natural water spring that has quite a bit of historical significance throughout the centuries. It was used as a water source by explorer Sir Francis Drake in the late 16th century and also by Spanish soldiers in later years.
8. Wander Into River Caves
Just an hour west of San Juan, Arecibo is a coastal location with diverse natural wonders to explore. One of the best things to do in Puerto Rico’s Arecibo area is to visit the Camuy River Cave Park. It’s one of the largest cave networks in the entire world.
Recently reopened in early 2023, you’ll walk through immense caverns that are estimated to be over 45 million years old. One of the most breathtaking spots is a sinkhole that shines in sunlight from hundreds of feet above. Tickets are $18 for adults, $13 for kids ages 4 to 12, with younger children admitted for free (which can help families afford to travel).
9. Surf at Domes Beach
Is surfing on your list of fun things to do in Puerto Rico? If so, check out Domes Beach in Rincón, located on the West Coast of the island (a little south from Aguadillo). Even if you don’t surf, you might enjoy catching a professional surfing competition throughout the year.
Domes Beach is also a great place to enjoy a sunset over the water. If you need a break from the waves, check out the Punta Higuero Lighthouse, a historic landmark originally built in 1892.
10. Venture to Vieques Beaches
A smaller island just to the east of the main Puerto Rican island, Vieques can only be reached by a short flight or ferry ride. Because of this, however, the beaches in Vieques are extremely tranquil and secluded. If you want a beach experience without large crowds or noise, this is an incredible option.
Plus, you can take one of the world’s best bioluminescent bay tours while you’re there.
The Takeaway
It’s easy to find dozens of things to do in Puerto Rico, whether San Juan or elsewhere. The hardest part is simply narrowing down your list of options to fit your time there. Whether you want a relaxed beach or an outdoor adventure, a historical home or a top-notch museum, you’ll find it all in Puerto Rico.
FAQ
Is Puerto Rico cheap for tourists?
It depends on your point of comparison. You’ll probably find it cheaper than large coastal cities on the U.S. mainland, but it also tends to be more expensive than other Caribbean island destinations.
What food is Puerto Rico known for?
Exploring traditional Puerto Rican cuisine is one of the best parts of visiting. Definitely check out mofongo, a mashed fried plantain side dish, as well as pasteles — similar to tamales but made with green banana masa and many options for fillings.
What can’t you bring back from Puerto Rico?
You can’t bring back fresh fruits or vegetables from Puerto Rico to the U.S. mainland. Cactus and citrus plants are also prohibited.
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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