6 Pieces of Financial Advice That Have Gone Out the Window in 2020 — What to Do Instead
If this year has taught us anything, it’s that we can adapt. Or more accurately: We HAVE to adapt.
We’ve adapted our social lives, our work environments and our eating habits. (I, for one, have never baked so much banana bread in my life.)
We’ve also had to change how we handle our money. Those pearls of financial wisdom we all grew up hearing? Some of them feel downright outdated at this point.
Here’s what advice has become outdated — and smarter ways you can financially weather 2020:
Outdated Advice 1: Get an Adviser to Help Create the Best Investment Plan for You
While financial advisers are great, they can cost a lot of money, which many of us don’t have the ability to just throw around these days. That being said, investing is still important, so finding a way to grow your accounts is super important.
So if you haven’t started investing and have some money to spare, you can start small. Investing doesn’t require you throwing thousands of dollars at full shares of stocks. In fact, you can get started with as little as $1.*
We like Stash, because it lets you choose from hundreds of stocks and funds to build your own investment portfolio. But it makes it simple by breaking them down into categories based on your personal goals. Want to invest conservatively right now? Totally get it! Want to dip in with moderate or aggressive risk? Do what you feel.
Plus, with Stash, you’re able to invest in fractions of shares, which means you can invest in funds you wouldn’t normally be able to afford.
If you sign up now and complete the quick financial goals survey, Stash will give you $5 after you’ve funded your investing account. Subscription plans start at $1 a month.**
Outdated Advice 2: Don’t Waste Time Watching TV When You Should Be Hustling
Normally, we’re wasting precious time (and brain cells) by watching TV when we could be out doing something more productive.
But since we’re stuck inside more, you might as well make it financially worthwhile to spend time staring at your screen. What if we told you a research company would pay you to watch TV on your computer?
It’s too good to be true, right?
But we’re serious. InboxDollars will pay you to watch short video clips online. One minute you might watch someone bake brownies and the next you might learn about the ups and downs of the financial markets.
All you have to do is choose which videos you want to watch and answer a few quick questions about them afterward.
No, InboxDollars won’t replace your full-time job, but it’s something easy you can do while you’re already on the couch tonight wasting time on your phone. Plus, it’s extra money you can put toward paying down your debt. Everything helps.
It’s already paid its users more than $56 million.
It takes about one minute to sign up, and you’ll immediately get a $5 bonus to get you started.
Outdated Advice 3: Save Your Rainy Day Fund To Help Your Family
It seems like every day is rainy now. How can you be expected to put money into an emergency fund that you’re dipping into each month?
But you still need to plan for the future, which is why life insurance is more important now than ever.
Have you thought about how your family would manage without your income after you’re gone? How they’ll pay the bills? Send the kids through school?
You’re probably thinking: I don’t have the time or money for that, especially right now. But your application can take minutes — and you could leave your family up to $1.5 million with a company called Bestow.
Rates start at around $20 a month.* The peace of mind knowing your family is taken care of is priceless.
If you’re under the age of 54 and want to get a fast life insurance quote without a medical exam or even getting up from the couch, get a free quote from Bestow.
Outdated Advice 4: Take Advantage of Loyalty Discounts
Some insurance companies give discounts to repeat and/or long-time customers, which can be a definite perk of staying with the same insurer.
But although a loyalty discount might take a few bucks off your monthly payments, there may be other companies out there that’ll provide the same coverage but for way less. We’re talking hundreds of dollars less each year.
That being said, shopping for car insurance is a pain, which is why we like using a free digital marketplace like 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.
Outdated Advice 5: Focus on Paying Off One Debt at a Time
If you have credit card debts hanging over your head, it can feel like a burden even during normal times. Add on a global pandemic and mass unemployment, and you’re looking at anxiety through the roof.
And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help.
If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.99% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.
AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.
It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.
Kari Faber ([email protected]) is a staff writer at The Penny Hoarder.
*For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
**You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.
The Penny Hoarder is a Paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.
*Bestow: Policies are issued by Bestow Life Insurance Company, Dallas, TX on policy form series BLI-ITPOL. Bestow Life Insurance products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. Our application asks lifestyle and health questions to determine eligibility in order to avoid requiring a medical exam. Prices start at $10/month based on an 18-year-old male rated Preferred Plus NT for a $100k policy for a 10-year term. Rates will vary based on underwriting review.