This Week In Your Wallet: Want Some #FreeMoneyTODAY?
This week I’d like to help put some free money in your wallet. (Yes, you read that right, free money. And no, I’m not pulling your leg.) There are thousands of dollars on the table for the taking — and I’m covering a few of them in my “Free Money” series on TODAY this week.
Here, a few to get you started:
Forgotten Funds: Average money found $900. Have you looked up whether you have any unclaimed funds? Think of this as money you left behind. Unclaimed funds are inactive accounts in financial institutions or companies (i.e. savings accounts, checking accounts, stocks, unwashed dividends, security deposits, IRS refunds, store credits, etc.) — and right now there’s $42 billion worth in the United States, according to the National Association of Unclaimed Property Administrators (NAUPA). To see if some of this is yours, start by doing a free search on MissingMoney.com and Unclaimed.org. Also check the treasury website for the state in which you live now (as well as those where you’ve lived in the past). If you’re married, don’t forget to do a search under your maiden name. And note: You can do this for yourself at no cost. You don’t have to pay a service to recover these funds for you. See the full segment here.
Ensuring The Best Rate: Average savings $368. That’s how much a NerdWallet survey found drivers are leaving on the table by not shopping around for auto insurance. It’s important to shop around every year or two, because your loyalty can cost you. Some insurers dig deep enough into the data to figure out which customers are likely to stay with them and which are likely to shop around. If you’re the former, they raise your rates year after year and eventually you end up paying more than a new customer with a similar profile, driving record and credit score. But auto isn’t the only place to save. You can dramatically reduce your costs on homeowners, life and renters insurance, too. Continue reading here and catch the segment here.
Refinance Loans: Average savings $14,000. That’s how much customers of SoFi.com are saving, on average, by refinancing their student loans. This is a new opportunity for both students, who hold their own loans, and parents with PLUS loans. You can slash loan rates to as low as 3.5% (fixed) or 1.9% (variable) — though in this environment, where rates are primed to rise, fixed are better for most. Just note: You don’t have to refi every one of your student loans. Look at them individually and decide case-by-case if it’s beneficial. Keep an eye, in particular, on repayment perks (like student loan forgiveness if you work in a helping profession or Pay As You Earn programs), you lose those by refinancing with a private lender. Watch here.
And tomorrow, tune in at 8:20 for the lowdown on the many thousands you could be leaving on the table by making Social Security mistakes.
Correction, Please
Last week the stock market hit correction territory, the terminology we use for a 10% or more drop in the market. You can’t really predict corrections, and last week’s certainly took many by surprise. (I’m sure you didn’t miss it, but in case you did: The S&P 500 fell as much as 12.4% from the market’s high to the closing low on Tuesday. In other words, investors saw $2 trillion in value disappear from the values of S&P 500 companies). It wasn’t pretty, but the thing is, corrections happen pretty often — we just haven’t had one since 2011.
As USA TODAY reports, the market, on average, has a correction about every 357 days. Our last correction, however, was about 1,000 days ago (i.e. our third-longest streak on record). How long do they typically last? Research tells us it can be as little as three weeks or as long as two quarters. Unless you’re a short-term trader, a market correction isn’t anything to lose sleep over. It is, however, a good reminder to reassess your holdings. Ask yourself this question when reviewing your portfolio: “Is the reason I bought this stock still valid today?” Yes? Don’t touch it (unless you want to add more). No? Then maybe sell.
Poof! Does Your Money Disappear?
You’re not a magician, but you have a knack for making money disappear in the blink of an eye. Maybe you sale shop for things you don’t need (I’m looking at you Black Friday, Cyber Monday, Super Saturday and Free Shipping Day fanatics!)? Maybe you eat out (or order in) more often than you cook at home? These are just a couple of ways you could be wasting money without even realizing it. This week MONEY lists five ways you’re wasting money without even thinking about it. Personally, I love a good sale as much as the next person. Yet it’s important to keep in mind Money Rule #41: When it’s 50% off, it’s still 50% on. So unless you really need something, it doesn’t make a lot of financial sense to buy it just because it’s on sale. You’re not saving, you’re spending.
Your Financially Savvy Checklist
Off the top of your head, do you know the following numbers?
- Your annual income.
- How much is left on your mortgage.
- How much you contribute to your 401(k) each paycheck.
- Your bank account number.
If you answered “nope” to any one of the above, then it’s time to make flash cards. PureWow has a fun list of 13 things you should know about your finances — on the spot — so that you’re in control of your money (and not the other way around).
Have a great week,
Jean
