New York Is Pricy. Take These 10 Steps to Get Your Money Under Control

So you live in New York — the Empire State — the best and most important state of all, right? You and 20 million other New Yorkers.

Not exactly the cheapest place to live, is it? New York always gets ranked as one of the most expensive states in the U.S.

“Even a basic lifestyle can cost a king’s ransom in the Empire State,” CNBC says.

You’re probably getting squeezed by high housing costs, so your finances could use some serious TLC.

But the problem seems overwhelming. Which goal to attack first? You need a budget, a savings plan, a debt-repayment strategy, a better credit score, a plan for retirement and… oh God, it’s too much.

To tackle big goals, you have to start small. Here are some simple steps you can take today to get your finances under control:

1. Pay Less for Homeowners or Renters Insurance

Housing in New York state is so expensive! And if you have homeowners or renters insurance, you might be paying too much for it. Try shopping around.

If you’ve never looked into it, start by getting a free quote. Here are some places to start:

Lemonade: Renters insurance starts at $5 a month and homeowners insurance starts at $25 a month.

Beyond affordable rates, Lemonade adds a layer of transparency you don’t often see in the insurance world. Instead of profiting extra when it doesn’t have to pay out claims, the company keeps a set 20% of your premium for itself, and 80% goes into a pool for paying claims. Money left over after paying claims each year goes to a cause of your choice.

Young Alfred: Billed as “your new, hip family butler,” Young Alfred is actually an online insurance agency that does your comparison shopping for you.

Based on your profile, it suggests ways you should consider modifying your insurance coverage. Based on your needs, it recommends three insurance policies that’ll give you the most bang for your buck. It shows you a side-by-side comparison of the three policies’ prices and coverage in an easy-to-understand format.

2. Stop Paying Too Much for Car Insurance

With all those trains, buses and subways, New York has way more mass transit than most states. But for most of us, there’s still no getting around the need for car insurance.

One way you could save money is by shopping around and comparing rates at least once a year. Less than 50% of us do that, according to this survey from The Zebra, though 81% of us report wanting lower rates.

So, just like you compare the prices of flights, shoes and laptops before purchasing, why not compare car insurance?

And if you look through a digital marketplace called SmartFinancial, you could be getting rates as low as $22 a month — and saving yourself more than $700 a year. 

It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side. Yep — in just one minute you could save yourself $715 this year. That’s some major cash back in your pocket.

So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.

3. Open a Separate Bank Account

Life is complicated. Life in New York is especially complicated. Operating everything out of one checking account can make your finances muddy and contribute undue stress to your money management.

To simplify, open a second account for a dedicated purpose.

Chime is an online-only bank account that offers some unique features other banks haven’t caught on to yet.

Consider:

• Chime doesn’t charge overdraft fees, monthly maintenance fees, foreign transaction fees or minimum balance fees.
• Chime customers have access to thousands of fee-free MoneyPass ATMs around the country.
• When you set your payroll up for direct deposit to your Chime spending account, your paycheck will post two days before payday, giving you more time to plan, save and pay the bills.
• You can open an easy-to-access, connected savings account. It allows you to automate your savings with features like the round-up tool, which will round up your transactions to the nearest dollar and dump the change into savings.
• Its mobile app boasts more than 2,000 five-star reviews, making managing money super accessible via iPhone or Android.
• It has a “Pay Friends” feature, so you don’t have to mess with cash, math or other apps to split the bill.

Plus, it takes about five minutes to sign up. The bank verifies your personal information, takes note that you’re at least 18 or older, then you’re good to go. No opening deposit required.

Note that the biggest complaint is a lack of mobile check deposit, but Chime assures its customers the feature is coming soon.

For an account that’ll help you strike up savings — and that’ll pay you two days early — check out Chime.

4. Have a Long Island Iced Tea and Look at Your Credit Score

We know. None of us want to do this (except maybe the drinking part).

But did you know 20% of Americans have an error on their credit reports that is likely bringing down their scores?

A good credit score is crucial if you’re buying a pricey house or condo. You also have to authorize a credit check whenever you want to move into a new apartment, rent a car with your debit card or buy a new phone.

So pour yourself a glass of wine — or a Long Island Iced Tea — and check your credit score for no cost on a free site like Credit Sesame. This way you can find out if you have any negative marks on it before you’re trying to make a major life move.

5. Start Investing Without Thinking About It

With the New York Stock Exchange based in your state, it only makes sense for you to invest.

If you want an absurdly simple way to save and invest your money, try Acorns. You’ll be amazed by how much money you can set aside without even thinking about it.

Acorns is a smartphone app that connects to your bank account, credit and debit cards to save your digital change. It automatically rounds up purchases with your connected accounts and invests the difference in your Acorns account.

This Penny Hoarder saved $116 — about $35 a month — by connecting one debit card to the app and forgetting about it.

At that rate, you’d put away $420 a year. And if you use your credit cards more frequently, your round-ups could amount to much more.

Plus, you’ll snag a $5 bonus when you make your first investment.

6. Start a Passive Income Stream

You can never have enough money. We’re at no loss for smart ways to earn extra money without doing extra work, but here are some you can actually start right now.

Sign up for the websites below on your smartphone, and start earning extra money every month!

• MyPoints: This platform lets you earn gift cards for taking polls, answering surveys and other things you do online — a great way to cash in on long lines or an endless commute. You’ll earn a $5 bonus when you complete your first five surveys.
• Capital One Shopping Price Protection is a tool that gets you money back for your online purchases. It’s free to sign up, and once you do, it will scan your email archives for any receipts. If it discovers you’ve purchased something from one of its monitored retailers, it will track the item’s price and help you get a refund anytime there’s a price drop.
• Shopkick: This app pays you in “kicks” for walking into certain stores (including Walmart, Target, TJMaxx and more). You can redeem them for gift cards to a number of retailers, including Amazon, Target, Walmart, Starbucks, Sephora and Best Buy. Earn even more “kicks” for photos of receipts that include qualifying items you purchased in-store with a connected credit or debit card. You can also earn kicks for online purchases. You don’t have to do anything; your linked cards will automatically apply your kicks.

Capital One Shopping Price Protection compensates us when you sign up using the links we provide.

7. Take Steps to Consolidate Your Debt

A lot of us are being crushed by credit card interest rates north of 20%. If you’re in that boat, consolidation and refinancing might be worth a look.

It could substantially lower payments you’re already making on your debt and help you save more money each month.

A good resource is online lending platform Upstart, which can help you find a loan without relying on only your credit score.

Unlike traditional underwriting models that use only the common FICO scoring model, Upstart’s technology looks at factors like your education and employment history to determine your creditworthiness (though it does require a 620 credit score).

It can help you borrow up to $50,000, potentially with better terms (e.g. lower interest or lower monthly payments) than traditional lenders. If managing many different bills and credit lines is a hassle, you can also use an Upstart loan to streamline all of your loans into one.

8. Make Your 401(k) Blossom

As a New Yorker, you’re definitely going to want to retire in Florida someday. (Maybe we’re biased…) Can you afford to?

You have a 401(k) — kudos for that, but is it doing what you need it to?

If you’re like most people, you have no idea whether your 401(k) is on pace for your retirement or just sputtering along.

Chances are, your 401(k) could be doing a lot better. Take control with help from Blooom, an SEC-registered investment advisory firm that can optimize and monitor your 401(k) for you and keep it speeding toward retirement.

It just takes a few minutes to get a free 401(k) analysis  that will show you whether your investments are allocated properly and whether you’re losing money paying hidden investment fees. It’ll even tell you just how much more money your account could earn by the time you want to retire.

After that, if you sign up, it’s just $10 per month to have Blooom monitor and maximize your 401(k). Bonus: Penny Hoarders get the first month free with the code PNNYHRD!

Think of Blooom like a mechanic constantly fine-tuning your car’s engine so it gives you the best possible performance and gas mileage. Except it’s your 401(k) — and your future.

9. Take a Deep Look at What You’re Spending

Every dollar counts. An integral part to managing your money is budgeting. Ew, gross. We know. But it’s important to take a good look at what you’re spending and understand where you can cut back.

An easy way to automate this process is to use Trim, a little bot that’ll keep track of all your transactions.

Connect your checking account, credit card and savings account for a big-picture look at your spending habits. Then, take a closer look by checking out each of your transactions. Now, set alerts to let you know when bills are due, when you’ve hit a spending cap or when you’ve (hopefully not) overdrafted.

Trim has a lot of other features, too, including a service that helps you negotiate your bills down. Best part? It’s free to sign up.

10. Get Paid When You Swipe Your Credit Card

If you’re not using a rewards credit card for everyday purchases, you’re missing out on free money — especially when you’re swiping that plastic for every meal.

You just have to be sure you don’t get too carried away with those purchases — and that the card is paid off at the end of each billing period.

Here’s an option we like: It’s the Chase Freedom Unlimited card. Its claim to fame? You’ll earn an unlimited 1.5% cash back on all your purchases. Plus, if you spend $500 in your first three months of opening the card (hi, groceries), you’ll pocket a $150 bonus.

There’s no annual fee, and the cash-back rewards don’t expire.

Get signed up — and 0% intro APR for 15 months — here.

*The information for the Chase Freedom Unlimited card has been collected independently by The Penny Hoarder. Opinions expressed here are the author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. The Penny Hoarder is a partner of Credible.

Don’t miss out on possibly hundreds of dollars a year in rewards.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He loves New York.