Let’s be frank: moving is rough. The boxes, the heavy lifting, the cost of paying for movers (or, maybe, just buying everyone enough pizza for them to lend a helping hand). Moving isn’t many people’s idea of a fun, stress-free time.

In some cases, however, moving to a new home can be well worth it. Whether it’s for a new job opportunity, lower housing costs, or just a serious change of scenery, thousands of Americans move every year despite the added complications.

But, there’s another important consideration to factor in, before packing and taping up those moving boxes: Where to move?

Each state boasts its own fastest-growing real estate market. Here’s a helpful guide to housing markets by state:

Hottest Real Estate Markets in Each US State

Listed below are the fastest-growing real estate markets across the United States, so future transplants can get a clearer sense of where more and more people are moving. What’s more, this article outlines the kind of housing values people can expect to find in each local market.

Understanding local housing market trends (including home price growth) could help individuals decide whether the community they’re eyeing is a potential paradise… or a pass. After all, it’s likely not worth investing in a buying house in an area with rapidly depreciating home values.

Without further ado, here are some of the hottest housing markets in the US by state.

1. Mount Olive, Alabama

Median Home Value: $172,460
Value Increase Over Last Year: 6.7%
Value Forecast for Next Year: -0.3%

2. North Pole, Alaska

Median Home Value: $249,625
Value Increase Over Last Year: -2.4%
Value Forecast for Next Year: -3.8%

3. Gilbert, Arizona

Median Home Value: $368,772
Value Increase Over Last Year: 7.6%
Value Forecast for Next Year: -0.3%

4. Bryant, Arkansas

Median Home Value: $168,095
Value Increase Over Last Year: 1.2%
Value Forecast for Next Year: -2.0%

5. San Jose, California

Median Home Value: $1,073,255
Value Increase Over Last Year: 2.6%
Value Forecast for Next Year: -0.7%

6. Colorado Springs, Colorado

Median Home Value: $323,194
Value Increase Over Last Year: 7.6%
Value Forecast for Next Year: -0.0%

7. Putnam, Connecticut

Median Home Value: $204,176
Value Increase Over Last Year: 4.2%
Value Forecast for Next Year: -2.0%

8. Newark, Delaware

Median Home Value: $250,558
Value Increase Over Last Year: -1.3%
Value Forecast for Next Year: -3.5%

9. Orlando, Florida

Median Home Value: $260,915
Value Increase Over Last Year: 3.4%
Value Forecast for Next Year: -1.6%

10. Fort Oglethorpe, Georgia

Median Home Value: $138,559
Value Increase Over Last Year: 2.4%
Value Forecast for Next Year: -1.2%

11. Ewa Beach, Hawaii

Median Home Value: $634,604
Value Increase Over Last Year: -1.3%
Value Forecast for Next Year: -3.2%

12. Boise, Idaho

Median Home Value: $341,449
Value Increase Over Last Year: 10.3%
Value Forecast for Next Year: 0.4%

13. Maryville, Illinois

Median Home Value: $218,810
Value Increase Over Last Year: 1.3%
Value Forecast for Next Year: -2.3%

14. Borden, Indiana

Median Home Value: $194,270
Value Increase Over Last Year: 3.2%
Value Forecast for Next Year: -2.3%

15. Council Bluffs, Iowa

Median Home Value: $143,349
Value Increase Over Last Year: 4.1%
Value Forecast for Next Year: -1.7%

16. Wichita, Kansas

Median Home Value: $138,575
Value Increase Over Last Year: 5.6%
Value Forecast for Next Year: -0.8%

17. Bellevue, Kentucky

Median Home Value: $143,413
Value Increase Over Last Year: 10.1%
Value Forecast for Next Year: -0.1%

18. Metairie, Louisiana

Median Home Value: $262,804
Value Increase Over Last Year: 3.5%
Value Forecast for Next Year: -1.5%

19. Naples, Maine

Median Home Value: $232,717
Value Increase Over Last Year: 7.4%
Value Forecast for Next Year: 0.2%

20. Columbia, Maryland

Median Home Value: $370,580
Value Increase Over Last Year: 2.7%
Value Forecast for Next Year: -1.7%

21. Haverhill, Massachusetts

Median Home Value: $347,569
Value Increase Over Last Year: 2.1%
Value Forecast for Next Year: -2.1%

22. Clawson, Michigan

Median Home Value: $219,748
Value Increase Over Last Year: 4.3%
Value Forecast for Next Year: -0.2%

23. Saint Paul, Minnesota

Median Home Value: $242,370
Value Increase Over Last Year: 4.7%
Value Forecast for Next Year: -1.1%

24. Horn Lake, Mississippi

Median Home Value: $112,862
Value Increase Over Last Year: 5.6%
Value Forecast for Next Year: -1.7%

25. Saint Louis, Missouri

Median Home Value: $131,350
Value Increase Over Last Year: 3.8%
Value Forecast for Next Year: -0.5%

26. Great Falls, Montana

Median Home Value: $198,854
Value Increase Over Last Year: 3.3%
Value Forecast for Next Year: -1.7%

27. Omaha, Nebraska

Median Home Value: $196,202
Value Increase Over Last Year: 6.7%
Value Forecast for Next Year: -0.8%

28. Reno, Nevada

Median Home Value: $403,318
Value Increase Over Last Year: 2.5%
Value Forecast for Next Year: -1.6%

29. Hampstead, New Hampshire

Median Home Value: $311,032
Value Increase Over Last Year: 2.3%
Value Forecast for Next Year: -2.1%

30. Bloomfield, New Jersey

Median Home Value: $370,320
Value Increase Over Last Year: 3.4%
Value Forecast for Next Year: -2.4%

31. Rio Rancho, New Mexico

Median Home Value: $209,579
Value Increase Over Last Year: 8.2%
Value Forecast for Next Year: -0.2%

32. Rochester, New York

Median Home Value: $158,512
Value Increase Over Last Year: 4.4%
Value Forecast for Next Year: -1.3%

33. Greensboro, North Carolina

Median Home Value: $164,532
Value Increase Over Last Year: 7.3%
Value Forecast for Next Year: -0.3%

34. Wahpeton, North Dakota

Median Home Value: $173,047
Value Increase Over Last Year: 4.5%
Value Forecast for Next Year: -1.7%

35. Orient, Ohio

Median Home Value: $218,776
Value Increase Over Last Year: 5.4%
Value Forecast for Next Year: -1.6%

36. Oklahoma City, Oklahoma

Median Home Value: $142,220
Value Increase Over Last Year: 6.8%
Value Forecast for Next Year: -0.3%

37. Eugene, Oregon

Median Home Value: $349,466
Value Increase Over Last Year: 8.5%
Value Forecast for Next Year: -0.1%

38. Levittown, Pennsylvania

Median Home Value: $258,439
Value Increase Over Last Year: 5.5%
Value Forecast for Next Year: -1.6%

39. Greenville, Rhode Island

Median Home Value: $329,106
Value Increase Over Last Year: 7.1%
Value Forecast for Next Year: -0.8%

40. Greenville, South Carolina

Median Home Value: $207,299
Value Increase Over Last Year: 5.0%
Value Forecast for Next Year: -1.0%

41. Rapid City, South Dakota

Median Home Value: $212,403
Value Increase Over Last Year: 5.0%
Value Forecast for Next Year: -1.7%

42. Chattanooga, Tennessee

Median Home Value: $171,384
Value Increase Over Last Year: 4.5%
Value Forecast for Next Year: -1.6%

43. Hurst, Texas

Median Home Value: $239,576
Value Increase Over Last Year: 5.0%
Value Forecast for Next Year: -1.2%

44. Salt Lake City, Utah

Median Home Value: $419,987
Value Increase Over Last Year: 5.3%
Value Forecast for Next Year: -1.4%

45. Burlington, Vermont

Median Home Value: $353,322
Value Increase Over Last Year: 3.7%
Value Forecast for Next Year: -1.0%

46. Fairfax, Virginia

Median Home Value: $588,968
Value Increase Over Last Year: 3.8%
Value Forecast for Next Year: -2.3%

47. Spokane, Washington

Median Home Value: $264,212
Value Increase Over Last Year: 13.1%
Value Forecast for Next Year: 1.4%

48. Harpers Ferry, West Virginia

Median Home Value: $219,363
Value Increase Over Last Year: 4.1%
Value Forecast for Next Year: -1.8%

49. Milwaukee, Wisconsin

Median Home Value: $135,570
Value Increase Over Last Year: 6.8%
Value Forecast for Next Year: -1.8%

50. Laramie, Wyoming

Median Home Value: $253,653
Value Increase Over Last Year: 6.1%
Value Forecast for Next Year: -1.7%

The Takeaway

No matter where a new homeowner is thinking of heading, one of the more challenging parts of a move is tackling the financials. For first-time home buyers, understanding the home loan process can be a little overwhelming—especially on top of juggling all the details of a big move.

While it’s important to carefully consider all the available options for purchasing a new home, including leverageable savings and valuable assets. For some individuals, a home loan from a private lender can turn the dream of owning a home into a lived-in reality.

For example, SoFi Home Loans offer low, competitive rates and an easy online application. Pre-qualifying for a SoFi home loan can be done entirely online and takes just two minutes. Plus, checking your rate won’t affect your credit score¹.

---

¹Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.
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.

When it comes to anything in life, you don’t want to pay more for anything if you don’t have to.

Not wanting to pay for anything you don’t have to is also true with investing. You want to maximize the return on any investment you have. You might think that means finding the investment with the best returns. High returns are certainly an eye-catching statistic. They are a significant factor when deciding where to invest your money. However, there is a bit more to it. The flip side of it is how much its costs you to invest in any particular fund. That’s where the expense ratio comes in.

What is an Expense Ratio?

An expense ratio can most easily be defined as the cost for a fund to operate vs. its assets’ total value. Think of any fund as a business. Employees need salaries, rent for the office needs to get paid, utility bills to pay, office supplies to buy, and just general costs of doing business. Well, a mutual fund is no different. There are people actively working behind the scenes doing all sorts of research, making trades, working through legal formalities, and various other tasks. These management fees and operation costs get passed on to you, the shareholder.

Determining a fund expense ratio is relatively simple. Take the total of the operating expenses and divide that by the fund’s net asset value or NAV. For example, if a fund has 500k in expenses and 50mm in assets, it would have a 1% expense ratio.

Why Are Expense Ratios Important?

Knowing the fees associated with anything you’re paying for is essential, and investing is no different. When you invest in a fund with a higher expense ratio, the returns you earn are lowered by that much more. If you are interested in a few funds, lower expense ratios make an excellent secondary factor. Would you rather invest in a fund that charges you 1% or 1.25%? Simple math says if the returns are about equal, you would want to pay lower fees.

Don’t think because you aren’t investing millions of dollars that you can ignore these fees either. They may seem small, but even a slight difference in expense ratios will add up to any investor over the long term.

Take two investments of 10k each, one investing in a fund with an expense ratio of 1% and another of 1.25%. Using a 7% return rate and assuming no additional contributions after ten years, the 1% ratio will net you an extra $400. After 20 years, you’ll have an extra $1500, and after 30 years, you’ll have an additional $4000!

The above are some straightforward calculations and assumes the returns for each fund are precisely the same. In the real world, you won’t find two funds like that, but it does illustrate my point that although the fees may seem small in the short term, there are most undoubtedly long-term implications. Now imagine the difference in your investments when you keep contributing!

How do I Know a Funds Expense Ratio?

Now that you know about expense ratios and how they can change your investments, where do you find them? Well, the good news is that they are relatively easy to find. Funds are required to make them known to investors, so we’re not talking about hidden fees here. There are a few ways potential investors go about determining a funds expense ratio.

The primary way and likely the easiest can be done using your brokerage accounts. When looking up any fund, you’ll typically see many of its attributes along with it. Most of us look straight at the money-making aspects like a fund’s overall return rate or dividend yield. The expense ratio is listed along with those attributes, and you didn’t know it was there!

Another way to find the expense ratio is to find the fund’s prospectus. A prospectus is an overview of a fund’s investments. It needs to be filed with the SEC and sent to investors each year. Within this, you’ll find a section about any fees associated with the fund. If you do this, you might see two expense ratios, net and gross. Without going into all the details, the net expense ratio is eventually passed along to the investors.

You can find the prospectus itself in a few ways as well. If you are already an investor, this will be sent to you every year by the fund. Search through the piles of emails in your trash bin, and you’ll likely find it in there. Typically brokerage firms will also have the prospectus available to you when researching their site as well. Finally, you can go directly to a funds website, if available, and you’ll be able to find the prospectus there as well. It might take some poking around, but it’s there.

Finally, if all else fails, do what you do for anything else, Google it! Doing a quick and simple search for a stock ticker plus the words “expense ratio” will quickly find you the information you need.

Can You Avoid Expense Ratios?

Any fund you invest in will have operating expenses, so no, if you are a mutual fund investor, you can’t avoid them. Don’t let it deter you, as other investment choices will have costs associated with them as well. However, what you can do is find funds with relatively low costs associated with them.

“According to independent investment research firm Morningstar, the 2019 average asset-weighted expense ratio in the US was 0.45%.”

Even with that average in mind, there are still a few things to consider. Primarily the type of the fund and its strategy. Nowadays, there are three main types of funds, mutual funds, ETFs(Exchange-Traded Funds), and index funds.

Mutual funds and ETFs are considered actively managed funds, meaning that they are actively making trades on your behalf within the fund regularly. An active fund typically comes with higher expense ratios as it’s more expensive to research and make trades constantly. A typical or average expense ratio for an actively traded mutual fund or Etf would be around .66%.

Opposite to the active management strategy, index fund investing is more of a passive investment. Indexes are diversified and aim to track a particular section of the market or even the stock market as a whole, like the Dow Jones Industrial Average or S&P 500 index. These funds typically have a low portfolio turnover and are rebalanced far less than their actively managed counterparts. So on the expense side, these naturally come in much lower. The average ratio for passively managed funds is around .13%. Many firms such as Vanguard Group, Fidelity Investments, or T. Rowe Price will have index funds specific to their brokerage accounts with even lower rates as well.

Which Investment Strategy Should I Use?

Your investment strategy comes down to how active or passive you want to get with your investments. Over the long haul, actively managed funds don’t typically outperform index funds. With the higher fees involved and similar returns, passive investing make sense for most of us. Index investing allows us to put our money in an index fund and forget about it, making better use of our valuable time.

However, mutual funds can outperform index funds over a short period of time. In investing terms, that might mean a few months or even a few years. If you want to take on a more active role in your investing, you can review and rebalance your portfolio as you see fit. Short-term investing can be difficult in a good market, never mind a volatile or bear market. Please make sure you are ready to put in much effort consistently see returns high enough to make an effort and higher expense ratios worth it.

You can always take on a hybrid investment portfolio. You can invest most of your money with index funds while investing in a few mutual funds to see higher gains. As always, it’s about diversification and making sure your investments align with your personal goals.

Conclusion

A fund’s expense ratios help us understand the costs of investing in any particular mutual fund or ETF. Actively managed mutual funds need to cover their expenses. The fees and expenses typically get passed onto the investor in the form of expense ratios. Before you buy shares, invest a little time understanding mutual fund fees charged. They may seem like small fees to pay. However, over the long term, a reasonable expense ratio can drastically change your capital gains. When deciding which type of investment you want to make, they should be taken into consideration by any investor.

Additional Sources

1. Robin Kavanagh. What is an expense ratio? The most important fee to know when investing in mutual funds or ETFs.2020). https://www.businessinsider.com/what-is-expense-ratio
2. ADAM HAYES. (2021). The Definition of Expense Ratio. https://www.investopedia.com/terms/e/expenseratio.asp

This article originally appeared on Your Money Geek and has been republished with permission.

Managing and budgeting money is a difficult task for most people, leading to financial problems later on. You can avoid debt and develop a saving culture by simply adopting a simple personal financial management system.

There are plenty of apps available nowadays that can help you with all sorts of issues such as budgeting, saving, investing, etc. All you need to do is find the right app for the problem you have at hand.

These apps are known as Personal Finance Software apps, and you can use them to master the basics of money management. They can even give you ideas on meeting both your long-term and short-term financial goals while setting up a little nest egg for the future.

In our list below, we take a look at the best personal finance software apps that you can download and use for your everyday needs.

But First…

Best Personal Finance Software

What Should You Look for in a Personal Finance Tool?

When choosing a personal finance tool, you must consider your goals at hand and what you need the software to do for you. Also, consider how sophisticated you wish the software to be in terms of operation.

For example, if you wish to have an app that can track your income and expenses, then find one that does precisely that, and if you are looking for one to help with budgeting, then find that as well. Here are a few other factors you should consider when looking for a personal finance software app;

Cost

Personal finance software will usually have a free as well as premium version. This means that you will have to pay annually or monthly to use the app. It’s always a good idea to get the premium version as it tends to have more features and can allow you to do more things with it.

Account Restrictions

Some apps will limit you on the number of accounts you can add to it. If you have more than one account (which almost everyone does), such as a saving account, investment account, and checking account, it is advisable to find an app that can accommodate them.

Reporting

A good app should be able to break down your spending in a way that you can view easily, for example, by use of graphs and charts. You should also have one that can easily customize the reports to fit your financial goals.

Human Support

Now, even though it is an app, it is always good to have some human touch. If you are stuck, there should be a number you can call and get in touch with an actual human customer support staff whom you can speak with, instead of the Robo-advisor.

Credit Score

The best apps come with a free credit score check. This will help you stay on top of your credit report and enable you to keep track of it in case the score drops at any one point. The faster you identify the drop, the quicker you shall be able to correct things.

What Can a Personal Finance Software App Do for You?

As mentioned above, you get to choose the app according to what you want it to do for you. For example, here are some of the needs the app can meet;

Budgeting

There are plenty of software budgeting apps that you can use to help you track your spending. You can sync such apps with your financial accounts, savings, and checking accounts, plus credit cards, investments, and loans. They usually automatically categorize your spending and help you to identify how to save on costs.

Saving

If you wish to develop a much-needed saving culture and come up with an emergency fund, then a software app geared towards saving can help make your work easier. This will give you tips on how you can keep a small reserve each month.

Some apps will automatically transfer money from your checking to your saving account each month without your input, as they are designed to help you with savings.

Investing

Investing in apps and software will help keep your money working for you to ensure that you achieve both your long-term and short-term goals and meet your retirement needs at the same time.

It is a little overwhelming for beginners to learn how to do this, but your work will be that much easier as they practically do everything for you with the apps.

Taxation

Tax season comes with many issues for most people because they do not understand how to do it and what happens. In fact, the kind of forms that need to be filled in can be a little puzzling to them. With a good taxation app, all of your concerns are put to rest as they practically do the work for you.

Most of them will ask you questions that you must answer and then guide you to the proper deductions and what you qualify for.

The Review

The Best Personal Finance Software

Quicken

This software has been around for a long time, and it is one of the most established software in the market. You can use it to manage many different aspects of your financial life, from budgeting, savings, investing, and debt tracking.

It is simply a jack of all trades. It features excel exporting, manipulations, and performance of calculations on your financial data. One of its more advanced features is bill paying.

The software will keep track of your assets to have an accurate calculation of your net worth. It is robust and can manage both businesses and personal expenses, and it can even handle property management for tenants and rental payments.

Quicken has different versions, and they all have different costs.

• The starter – costs $ 35.99/yr.
• The Deluxe – costs $46.79/yr.
• The Premier – Costs $7.019/yr.
• The Home and Business Version – Costs $93.59/yr.

It depends on what you are looking for. They all allow you to keep track of your income, create budgets, expenses and even run reports to analyze your finances.

Personal Capital

Personal Capital allows you to manage your finances using a single platform. You can add your mortgage payments, bank accounts, and any other credit accounts to the platform. It also includes investment accounts, if you have any.

Using this software can save you from switching from multiple screens when working on your finances to know where you stand.

For example, if you have a portfolio of around $50,000, you can easily get personalized financial advice based explicitly on your goals. The financial advisors on the app are obligated to provide you with advice that is best for you. You will, however, be charged a fee for this service.

This software can also tell you whether you are on track with your investment or retirement goals at all times.

Now, if you are not ready to use the financial advisors, there is the personal capital that keeps track of your investments and finances in one place.

This software is free to use, but for additional services, you shall have to pay for them. Also, there are costs for other app features.

What You Can Do with This Software

Budget tracking

Use the free version to keep track of your spending patterns against your cash flow. You can analyze your spending according to the individual transactions and the spending categories.

They will give you monthly summaries that help you to know exactly how you used your money. However, if you only need software to help with budgeting, this is probably not the best option. Many other apps are specifically geared for this and have many features, such as alerts for upcoming bills and a bill payment function provision.

Analyzing your Cash Flow

This financial tool will create for you a budget. Once that is set up, it will keep track of your expenses and income from all the different financial accounts you have linked to. You can then set goals such as preparing for debt repayment and saving for your retirement.

There is an analyzer that will develop strategies for you so that you can reach your goals quickly.

Now, despite it having a dashboard that has limits when it comes to budgeting, it is an excellent service for investment management and can be of use in the following ways;

Analyzing your 401 (k)

Most people participate in this employer-sponsored retirement plan. Few, however, are aware of the kind of fees that are hidden in such plans. The analyzer in the software will show you precisely what each fund you have is costing you.

It then suggests for you alternative allocations that can help lower these costs.

A retirement planner

The planner used in the software is the “what if” scenario, and it helps you determine whether or not you are on track with your retirement goals. You can be able to adjust and make changes to any situation you are in.

For example, if you are not on track, you may need to change your job or career. If you are almost starting a family, then this means that you need more spending money, which would reduce your savings.

This planner considers everything to give you the best advice when it comes to your retirement plans.

Investment checkup

This is probably the most important aspect of the software tool. Once you can aggregate your investment accounts, then the app shall help in optimizing these accounts. It will recommend where you need to make adjustments in your portfolio and where you need to improve on overall portfolio performance.

Net worth calculation

If you wish to keep track of your assets and your liabilities to quickly determine your net worth at the press of a button, then this app will do exactly that for you. It keeps track of these two critical aspects of your net worth – the assets and liabilities, and at any one time, you can check and see how much you are worth.

Personal advisor

Now, although the financial dashboard is free to use, you can still contact the personal advisor. The advisor will provide you with investment advice and also answer a few questions regarding your finances. Please note that you will have to pay for this service.

Mint

This is another popular expense tracking and budgeting tool. It allows you to pull your bank and credit card information onto the tool so you can critically analyze your spending. It helps you pinpoint the areas you need to cut back and where you need to improve your finances.

It offers more accountability and allows you to set up alerts for low balances and due dates. These keep you on track at all times. They also help you to avoid late payments and expensive fees on your loans.

If you set up the budget categories, Mint will give you some real-time information on the amount of money you spend on gas and food.

Mint is a free app and can be downloaded on your Android as well as IOS devices. You can also use it on your desktop computer.

Features of the App

Budgeting and Expense Tracking

This is its primary feature. The Mint app is all about Budgeting and Expenses. It shines brightest here. Budgeting is pretty easy to set up on the app, and after you have downloaded and synched your transaction, you shall receive an auto-categorization of your expenses easily.

It will then create subcategories for you, although you will not modify the categories’ important areas.

You will have the option to make some changes to the transactions after they have already downloaded.

Creation and Management of Goals

This is yet another prominent feature of the app. You are managing and tracking goals. If you have new goals, such as paying off your credit card or saving for a new car, you can set them up easily on the app. Your monthly budgeting goals will reflect these new goals.

Monitoring your Credit Score

As mentioned earlier, an excellent personal finance software tool should come with this feature. Mint offers a free credit score tracking option. Although it is a new feature, it will keep track of your entire financial information at all times.

All you need to do is log in and click on “show details.” This will give you your credit score, age of credit accounts, payment history, and much more.

This app caters to the masses, and it shines brightest when it comes to tracking expenses and budgeting.

It has an investing area, which is just a simple feature, which means that it is not as established as other apps.

TurboTax

This is the TAXATION app. You will probably not need it throughout the rest of the year, but it will come in handy when tax time comes around. It is, however, one of the most expensive taxation tools in the market today, but it is also extremely user-friendly and will walk you through your tax preparation with ease and accuracy.

Here are the different costs

• Premium – $90
• Self-employed – $120

The app allows you to enter your tax information, and you can even import your W-2 form from your employer and then take a picture of it. The same goes for if you work for yourself. TurboTax will then transfer the data onto the form.

Suppose you have used the app over the years. In that case, it will simply remember your personal information without requiring you to input the data again, then ask you whether you have had any significant changes in your life.

The basic version of TurboTax will let you file your state and federal returns for free, and the only form you shall use is 1040 without any attached schedules.

TurboTax also connects you with an Enrolled Agent or a CPA to help you with personalized advice and answer any questions you may have about your tax returns.

The app’s paid version will help you identify deductions that you may not even know are available to you.

YNAB

YNAB stands for – You Need a Budget. It is a personal software whose main aim is to help with your financial literacy and manage your monthly budgets.

As you manage your finances and create your budget, the software will provide you with tutorials to tackle tough finance topics. If you are struggling with a bad financial lifestyle, then YNAB is here to take you through a few management rules that will eventually help you out.

The software allows you to link to your bank account and integrates your spending information to perform budget tracking and analysis. You can then keep tabs on how you have spent your money and take action on areas you have been overspending.

It does not have any investment capabilities, though.

YNAB will offer you a 34-day trial period for free, and in this time, you can use the software in full, then after, you can decide whether it is right for you in terms of your financial goals.

After the trial period, the complete software will cost you $11.99 each month or a one-off payment of $84 for a year.

Conclusion

Financial Management is one of the activities guaranteed to help you out of the “Rat Race.” It may be a hard thing to develop, but with time it gets easier. The above financial management tools are geared towards making it easy for you to keep track of your money.

Choose the right tool that will suit your needs and ensure that you understand how it functions in full, so you can enjoy all the features it has to offer. All the best.

This article originally appeared on Your Money Geek and has been republished with permission.

Real estate investors may need to broaden their search to additional markets with real estate inventory currently at record lows. When searching, remember that not every property provides good returns, with some cities faring better for investing than others. We’ve determined the top 21 zip codes for real estate investing in 2021.

5 Factors to Determine Hot Cities for Real Estate Investing

Real estate investments should grow in value over time and offer positive cash flow. If your property does not provide cash flow, you will have to inject money into the property continually. If it does not increase in value, you miss out on a great way to build wealth through real estate – capital appreciation. Before making an offer on a property, make sure you run the investment numbers in each of the following five areas.

1. Rental Growth

Rental growth is a powerful way to balloon your cash flow from a rental property. Here is why it works: Your mortgage is a fixed rate, and the rent is going up over time. If you purchased the property with a modest cash flow at the beginning, you have the potential to double your cash flow quickly.

For example, if the monthly rent is $1,000 and the cash flow is $200, a 20% increase in rent would double the property’s cash flow.

2. Appreciation

Some of the zip codes analyzed had over 100% appreciation in a short amount of time. This increase in home value would vastly outpace the cash flow received from a property in that period. Relying solely on appreciation and not cash flow can change a solid real estate investment strategy into speculation. It is essential to focus on a mix of growth and cash flow in an investment property.

Usually, markets with solid historical appreciation have plenty of opportunities for forced appreciation through renovations. Appreciation gives investors the advantage of leverage. Even though you only have a percentage of the equity in your cash, you take 100% of the benefit of the property’s growth through leverage to purchase another property.

3. Cashflow

You may have heard the expression “cash is king.” If you are using real estate to advance your portfolio for retirement or financial independence, then your mantra should be “cashflow is king.”Cashflow provides a margin of safety as an investor. It allows you to save money towards capital expenses, future renovations, and unexpected emergencies.

When analyzing zip codes for this article, if properties did not provide enough cash flow to cover the estimated expenses, they were omitted. It doesn’t matter how much appreciation is predicated if you cannot afford the mortgage, maintenance, and tax payments.

4. Long Term Leverage

Over time, real estate builds wealth for its owner through the principal paydown of the mortgage. One way to think of the principal paydown on a mortgage is as a forced savings plan that your tenants fund. Ensuring property cash flows is the key to long-term leverage. It’s a one-two punch as they compound off each other.

5. Market Heat

Lastly, this list was created by looking at the previous rental and appreciated growth over the past five years. When evaluating properties for sale in these zip codes, look at average days listed, listing interest, sold price vs. for sale price for a sense of market dynamics.

Top 21 Zip Codes for Real Estate Investing in 2021

To find the zip codes with the highest rental growth, we compared the Zillow average rent change from the last five years for that specific zip code.

1. Louisville, Kentucky40212

• Median 3br Home Price: $76,156
• Average Rent: $878
• 5 Year Rental Growth: 30%
• Rent to Value Ratio: 1.1%
• 5 Year Appreciation: 31%

2. Forest Park, Georgia 30297

• Median 3br Home Price: $100,816
• Average Rent: $1,117
• 5 Year Rental Growth: 54%
• Rent to Value Ratio: 1.1%
• 5 Year Appreciation: 117%

3. Jacksonville, Florida 32219

• Median 3br Home Price: $169,070
• Average Rent: $1,519
• 5 Year Rental Growth: 29%
• Rent to Value Ratio: 0.8%
• 5 Year Appreciation: 70%

4. Lakeland, Florida 33805

• Median 3br Home Price: $171,384
• Average Rent: $1,142
• 5 Year Rental Growth: 40%
• Rent to Value Ratio: 0.6%
• 5 Year Appreciation: 104%

5. Riverdale, Georgia 30296

• Median 3br Home Price: $156,978
• Average Rent: $1,400
• 5 Year Rental Growth: 58%
• Rent to Value Ratio: 0.8%
• 5 Year Appreciation: 136%

6. Holiday, Florida 34690

• Median 3br Home Price: $162,770
• Average Rent: $1,209
• 5 Year Rental Growth: 49%
• Rent to Value Ratio: 0.7%
• 5 Year Appreciation: 150%

7. Decatur, Georgia 30035

• Median 3br Home Price: $173,356
• Average Rent: $1,440
• 5 Year Rental Growth: 56%
• Rent to Value Ratio: 0.8%
• 5 Year Appreciation: 128%

8. Atlanta, Georgia 30349

• Median 3br Home Price: $159,088
• Average Rent: $1,451
• 5 Year Rental Growth: 47%
• Rent to Value Ratio: 0.9%
• 5 Year Appreciation: 111%

9. Jacksonville, Florida 32208

• Median 3br Home Price: $123,485
• Average Rent: $991
• 5 Year Rental Growth: 23%
• Rent to Value Ratio: 0.8%
• 5 Year Appreciation: 274%

10. Memphis, Tennessee 38127

• Median 3br Home Price: $69,482
• Average Rent: $801
• 5 Year Rental Growth: 26%
• Rent to Value Ratio: 1.2%
• 5 Year Appreciation: 135%

11. Conley, Georgia 30288

• Median 3br Home Price: $137,071
• Average Rent: $1,311
• 5 Year Rental Growth: 47%
• Rent to Value Ratio: 1.0%
• 5 Year Appreciation: 136%

12. Memphis, Tennessee 38141

• Median 3br Home Price: $147,469
• Average Rent: $1,305
• 5 Year Rental Growth: 28%
• Rent to Value Ratio: 0.9%
• 5 Year Appreciation: 61%

13. Dearborn Heights, Michigan 48125

• Median 3br Home Price: $117,780
• Average Rent: $1,121
• 5 Year Rental Growth: 36%
• Rent to Value Ratio: 1.0%
• 5 Year Appreciation: 99%

14. Port Richey, Florida 34668

• Median 3br Home Price: $169,352
• Average Rent: $1,270
• 5 Year Rental Growth: 49%
• Rent to Value Ratio: 0.7%
• 5 Year Appreciation: 142%

15. Lincoln Park, Michigan 48146

• Median 3br Home Price: $112,948
• Average Rent: $1,028
• 5 Year Rental Growth: 26%
• Rent to Value Ratio: 0.9%
• 5 Year Appreciation: 109%

16. Maricopa, Arizona 85138

• Median 3br Home Price: $249,365
• Average Rent: $1534
• 5 Year Rental Growth: 72%
• Rent to Value Ratio: 0.6%
• 5 Year Appreciation: 72%

17. Independence, Missouri 64052

• Median 3br Home Price: $129,994
• Average Rent: $935
• 5 Year Rental Growth: 27%
• Rent to Value Ratio: 0.7%
• 5 Year Appreciation: 92%

18. Dallas, Texas 75241

• Median 3br Home Price: $165,020
• Average Rent: $1,434
• 5 Year Rental Growth: 39%
• Rent to Value Ratio: 0.9%
• 5 Year Appreciation: 169%

19. Phoenix, Arizona 85009

• Median 3br Home Price: $197,144
• Average Rent: $1,077
• 5 Year Rental Growth: 86%
• Rent to Value Ratio: 0.5%
• 5 Year Appreciation: 156%

20. Tolleson, Arizona 85353

• Median 3br Home Price: $273,175
• Average Rent: $1,774
• 5 Year Rental Growth: 69%
• Rent to Value Ratio: 0.6%
• 5 Year Appreciation: 94%

21. Cincinnati, Ohio 45219

• Median 3br Home Price: $174,650
• Average Rent: $1,414
• 5 Year Rental Growth: 47%
• Rent to Value Ratio: 0.8%
• 5 Year Appreciation: 95%

Once you complete the purchase of a rental property and build home equity over a year or two, you can deploy the BRRRR method to redeploy your capital from this property into another one.

This article originally appeared on Your Money Geek and has been republished with permission.