7 Smart Money Maneuvers for 2021

Want to get the new year started off right, money-wise? Then you’re in for some good news. There’s a lot you can do to greet 2021 and look forward to reducing debt, earning more, and fattening your savings account along the way. You don’t need to be a financial wizard, a high-income earner, or take crazy risks either. Here are seven ideas that can make a difference.

Shop for Insurance Deals

If you’re like most people, all your insurance policies have been in place for several years. Having insurance is good, but the industry leaders are always coming up with fresh marketing programs, special rates, and new ideas for promotions. Call all your insurers and ask if you can get in on any current rate reductions. The secret about this not-so-secret maneuver is that you will get the latest, lowest rates, but only if you ask.

The carriers usually don’t go out of their way to contact current customers and alert them about every offer. So, when it comes to auto, life, home, and even health insurance, the rule is to ask and you shall (probably) receive. But you won’t even find out if you don’t make the call. Avoid emailing your inquiries. That makes it too easy for the companies to ignore you or respond with a letter. Pick up the phone, speak with a human customer service rep, and you’ll have a much better chance of snagging a lower rate.

Say Goodbye to High-Interest Plastic

If you’ve ever been to a financial advisor, you probably noticed that they all seem to have one piece of advice in common and that is to get rid of high-interest credit cards by paying for them with a low-interest loan. The strategy is a simple but powerful one. Say you’re currently holding four cards with a combined balance of $2,500. One of the fastest and most effective ways to chop your interest payments down is to take out a personal loan at a lower rate and pay the balances down to zero. In one move, you’ve reined in your monthly outflow. Plus, you can get matched with loan options online in a matter of minutes. That way, it’s possible to see all the choices in front of you on one page and make a decision. Personal loans are one of the weapons that people of all income levels use to avoid paying higher-than-average rates on cards.

Deploy the “FF and C-Store Strategy”

There’s a theory in consumer finance in that everyone has a drain somewhere in their monthly budget. Some drains are bigger than others, and some are harder to find. Do you know what yours is? For lots of working adults, it’s either fast-food or convenience store spending on things like candy, fountain drinks, and baked snacks. The good news here is that even if you have a stubborn sweet tooth and love your soft drinks, you can still get all that sugary and baked goodness at about half the cost at the grocery store. Just buy the stuff in bulk rather than one at a time at the quickie mart.

Convenience stores are money drains. Make it a rule for 2021 that you won’t buy anything at C-stores except gasoline. Pay at the pump to avoid going inside and being tempted by all the overpriced edibles. If your money drain is fast-food, make 2021 the year where you limit your FF purchases to one day per week. The rest of the time, pack a cooler or small sack lunch to keep in the car for long drives or those times when you would normally have hit the drive-thru. By implementing the C-store and FF rules, you’ll probably notice the difference in your budget within a few weeks.

Set Savings on Auto-Pilot

If you don’t have a savings account, shop around for a bank that offers a competitive interest rate and set one up. Then, arrange with your employer to put $35 per paycheck directly into the account. You’ll never see the money in your check, so the set aside will be relatively painless and invisible. After a few months, check your budget and see if you can afford to up the amount to $50, and then let it run on auto-pilot like that for six months. Twice per year, review your contribution amount, always with an eye to increasing it by $5 or more. Eventually, you’ll reach a point where you want to let it sit at the same amount for several years.

Consider Switching Banks

Unless you got really lucky when you hooked up with your current bank, chances are there’s a better deal out there. Take an hour or so on a weekend day and do some serious bank shopping. Look at the entire menu of service offerings and try to find an institution that fits your particular needs. This small amount of research can pay off in terms of higher savings rates, lower fees, and more.

Minimize Phone and Cable Bills

Phone and cable companies are a lot like insurers. They don’t always inform current customers about promotions and discounts. Every six months, call your telephone carrier and cable television company and double-check that you’re getting the best rates and prices. If you encounter any resistance, mention that you’re redoing your budget and are considering switching if you can’t get a better deal. In most cases, you’ll get something for your trouble.

Get a Micro Job

Have you ever thought about getting a part-time job to sock away some extra cash, but didn’t want to make the time commitment to 20 additional working hours per week? Then get a micro job, one of the hundreds of online positions in which you can work as few hours per week as you desire. Check out some of the job sites and search for work-at-home opportunities that allow hour-by-hour commitments. Some of the most common micro-jobs include website evaluation, freelance content writing, tutoring, and taking surveys. Micros are an easy way to earn an extra couple hundred dollars per month with very little effort. Some people find a position they enjoy and turn it into a 10-hour or 20-hour per week job. But if you just want some extra cash to cushion your budget, devote five hours a week to the online job of your choice.