6 Things You Should Never Do With Your Money, According to Experts
One way or another, we all make mistakes. It’s the human condition.
But right now, in the midst of a pandemic, one thing you don’t want to make mistakes with is with your money.
Sure, we’ve all let bad financial habits creep up on us. But in these uncertain times, it’s more important than ever to make sure you’re not your own bank account’s worst enemy.
Here are seven mistakes people are making with their money during the pandemic, and what you can do instead.
1. Never Skip Out on $1M in Life Insurance
Have you thought about how your family would manage without your income if you’re gone? Chances are your checking account balance won’t last forever.
You’re probably thinking, I don’t have the time or money for that. But a company called Fabric can help you apply for a term life insurance policy that could give your family a big chunk of money (the coverage amount you applied for) if you pass away. (We’ve heard people are getting policies for as little as $14 a month.)
Maybe you’ve thought about this before, but it feels too overwhelming. The truth is, this is one of the easiest (and smartest) things you can do with your money right now. It takes about 10 minutes to apply, and you don’t even have to leave your house — you can do it all from your browser.
So if you want to help make sure your family is set up for life after you’re gone, take 10 minutes to fill out an application.
2. Never Waste $715 on Car Insurance
When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.
If it’s been more than six months since your last car insurance quote, you should look again.
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. Get Paid $225/Month While Watching Movie Previews
If we told you that you could get paid while watching videos on your computer, you’d probably laugh.
It’s too good to be true, right?
But we’re serious. By signing up for a free account with InboxDollars, you could add up to $225 a month to your pocket. They’ll send you short surveys every day, which you can fill out while you watch someone bake brownies or catch up on the latest Kardashian drama.
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.
Unlike other sites, InboxDollars pays you in cash — no points or gift cards. It’s already paid its users more than $56 million.
Signing up takes about one minute, and you’ll immediately receive a $5 bonus to get you started.
4. Never Let Your Credit Score Cost You Thounsands of Dollars
Your credit score is like your financial fingerprint. Everyone’s is different and for different reasons. One person’s credit score might be under 700 because they have an error on their report. Another person’s credit score might be under 700 because they have a bill in collections.
That means everyone’s strategy to improve their credit score will look different… but how in the world are you supposed to know where to start?
Thankfully, a free website called Credit Sesame will take a look at your credit report and let you know exactly what you need to do to improve your score.
Take, for example, James Cooper. He didn’t know anything about credit, but Credit Sesame showed him the exact steps he needed to take to improve his score — from a 524 to 801.*
Then there are people like Salome Buitureria, a working mom in Louisiana who, in using Credit Sesame, found a major error on her report. The site helped her fix the mistake and take additional steps to raise her credit score nearly 200 points.*
Want Credit Sesame to show you exactly how to finally get your score over that 700 hump? It takes 90 seconds to sign up and get started.
5. Don’t Skip Out on up to $200 in Free Stocks
Imagine if you had bought one share of Amazon for $18 when the stock first went public. Today, it would be worth more than $20,000 — despite all the ups and downs in the stock market.
Here’s the thing about millionaires: They know the sooner you start investing, the better. And we found a company that will give you free stock to get started.
An investing app called Robinhood will give you up to $200 worth of free stock in companies like Visa, Microsoft and GE, just for downloading its app and opening a free account.
Robinhood is free and easy to navigate, which is why more than 10 million people use it — including both news junkies looking to outsmart the market and people who want to carefully put a few bucks away in a long-term investment.
It takes just a couple of minutes to sign up and get your free stock — you may even just get a share of the “next Amazon.”
6. Never Get a PayDay Loan
You need cash ASAP, but you know better than to go with a payday loan with outrageous interest rates.
Luckily, a company called Opploans offers a more affordable alternative, letting you borrow $500 to $4,000 when bad credit is holding you back.
The loans available through OppLoans come with half the annual percentage rate (APR) of a payday loan and loan terms are up to 18 months (not two weeks), meaning lower payments and more time for you to repay than a payday loan.
With OppLoans, it takes minutes to see if you qualify. Most customers receive a final decision same-day.
Just enter some basic information — your address, phone number, employer, income and bank account info. Applying won’t hurt your FICO score, and, if approved, you’ll get the money as soon as the next business day, in most cases.
1 According to the Consumer Federation America, a non-profit consumer advocacy group, payday loans range in size from $100 to $1,000, depending on state legal maximums, and carry an average annual percentage rate (APR) of 400%. The maximum APR for a loan offered through and serviced by OppLoans is 199% and loan sizes range from $500 to $4,000.
2 Subject to credit approval and verification. Actual approved loan amount and terms are dependent on standard underwriting guidelines and credit policies.
3 Applicants’ credit scores are obtained from Clarity Services, Inc., a credit reporting agency, which shows up as a soft pull on your credit report and is only visible to you.
4 Applications submitted through the OppLoans website may be originated by one of several lenders, including: Opportunity Financial LLC, a licensed lender in certain states; or one of OppLoans’ lending partners. All loans originated by a lending partner will be serviced by OppLoans.
5 Rates and terms vary by state. This is an expensive form of credit and you should determine whether our product(s) meets your financial needs.
6 Installment loan amounts typically range from $500 to $4,000. APR ranges from 59% to 199%. Installment loan lengths range from 6 to 24 months. Example: A $2,000 installment loan repayable in 9 monthly payments would have an APR of 160% and monthly payments of $395.58. OppLoans does not offer credit products in all states. Please refer to “Rates and Terms” at www.opploans.com for additional details.
7 OppLoans reports customer payment history to the three major credit bureaus. On-time payments may improve credit score. Credit reporting not available for Texas customers.
*Investing involves the risk of loss.
*Coverage Amount is based on eligibility. Sample pricing based on $100,000 in coverage for a 28 year old female in Colorado with excellent health.
