On the fifth day of Christmas, my Centsei gave to me:
♪ 5-Minute Tips! ♪
If you have enough money, to spend the $40,000 that it would take to buy your true love all the gifts outlined in the carol with no impact on your financial future, then you probably don’t need this article, the final installment in TheCentsei’s Money Hacks. For the rest of us, however, every dollar counts, and every minute counts even more. With the holidays behind us, the new year is the right opportunity to make headway on our journey to financial independence and lifelong happiness.
Part 5: Everything Else!
If you’re looking for a 2020 resolution, consider taking just 5 minutes per day to complete (or start) one item out of the 100 we’ve covered, and watch as these short simple tasks become permanent lifelong habits. Thinking about change is easier than changing your thinking, but as we’ve said from the beginning, you can.
1) Check your annual credit report. Once per year, you can check your credit reports for free, and ensure that the credit bureaus have accurate information on your account. Click this link, enter your personal information, request one or all three reports, answer the security questions, and review the activity. Do the reports show you as having a late or delinquent payment that you actually paid off? Are all your credit accounts present and correct? Is there an account you don’t recognize or potential fraud? Ensuring the data on your credit reports is correct is the quickest, easiest, and cheapest way to improve your credit score, qualify for the best interest rates, and help protect your identity. The above link is the only free, legitimate credit service that you’ll ever need.
2) Fix a mistake on your credit report. If you find a mistake while reviewing your annual credit report, fix it as soon as possible. Mistakes could include items belonging to people with similar names, errors in payments you made (or didn’t make), accounts that were not correctly closed by the lender, clerical errors in your address, loans or payments applied to the wrong account, double counting, and identity theft. Start by calling the credit bureaus to report each error. State the facts and request confirmation of the correction in writing. You may also need to call the original lender. Fixing a significant mistake, admittedly, may take more than 5 minutes, but fixing any mistake is worth your time, large or small. 26% of people have errors on their report, and the typical impact on their credit score is 10-50, which could cost them $100’s per year and tens of $1,000’s over your lifetime. This is especially important if you’re planning a large purchase, like a car or home, in the next couple of years.
3) Ask nicely. If you haven’t read How To Win Friends And Influence People, I highly recommend it. The ability to treat people well and take a genuine interest in their point of view is arguably the most powerful social tool you can develop. Whether you’re asking for a raise or trying to get out of a fee that was really your fault, you’re exponentially more likely to succeed if you’re polite and empathize with the perspective of the person with whom you’re speaking. “I work in customer service too, and I know this was partially my fault, but I absolutely love your product/service and a one-time courtesy like this would mean the world!” Works like a charm (no pun intended), and has saved me a small fortune. If someone can help you, your kind words go a thousand times further than your threats.
4) Switch to a less expensive brand. Some name-brands offer a legitimately higher quality product than the generic. Most do not. Whether it’s something big like your car or clothing, or something smaller like your toothpaste or bottled water, your time is well spent by researching alternatives and balancing cost vs quality more effectively. Spending money on a brand for status reasons is completely wasteful. Remember, there is no greater status on Earth than financial freedom.
5) Dispute an unauthorized credit card charge. Unfortunately, these crop up at least once per year for most people. Review your statement and call the number on the back of the card to dispute anything you didn’t authorize. Check all your transactions, especially the recurring ones, which can set you back years financially. Some merchants offer you a “free” trial, then begin charging you if you forget to cancel. Don’t rely on your bank; check your statements regularly, and promptly call about any strange charges or any good/service you didn’t receive.
6) Subscribe to a high-quality financial podcast. I recommend The Mad Fientist but any podcast that advocates for financial independence and not some get-rich-quick nonsense could be helpful. Subscribe now and replace one of your weekly TV shows with financial education. Have a podcast you like? Please share it under comments!
7) Order a free in-home energy assessment. Many local/state/national governments offer a free in-home energy assessment. See what is available to you and order it. They often give you free products (we got 20 LED bulbs and a free programmable thermostat), and they may even subsidize larger expenses like a water heater, furnace, insulation, windows, or electrical panel. A few examples include Mass Save, The Pennsylvania Public Utility Commission (PUC) Act 129, NYSERDA, EUMMOT’s in Texas, and the California Energy Savings Assistance Program (ESA). Do a search for your state (or country outside of the U.S.) followed by “energy efficiency program” to learn more.
8) Learn a common skill. Many everyday skills can be learned in minutes on your phone or computer. DIY videos are your friend. Here are a few things you can quickly learn: changing a tire, jumping a car, sharpening a knife, fixing an outlet, painting a room, ironing a shirt, using a drill or saw, putting out a fire, removing a stain, safely removing a tick, performing the Heimlich, and doing hands-only CPR. Try to learn one per week, and save money when you next use it.
9) Repair a household item. Similar the above. Sewing a button, patching a hose, unclogging a sink or toilet, or replacing a faucet washer are tricks that everyone should learn over time. When something breaks, spend a few minutes trying to learn how to fix it yourself. Many household projects are not age, gender, time, or strength prohibitive – only knowledge (or confidence) prohibitive. Don’t let these stand in your way. Of course you should call a pro for the most complicated projects, but learn how to do the easier repairs yourself. Last month, I saved $200-300 on a plumber because I learned how to fix a garbage disposal and unclog my kitchen sink. Quick caveat: Make sure the issue is one you can fix, and call an expert if it’s truly beyond your abilities.
10) Clean (or replace) your car’s air filter. Any driver can do this, and a clean filter can improve your gas mileage by up to 5%. Learn how to do this for your home furnace too!
11) Research commuting options. Finding a better commuting option could save you time and aggravation at the same time. Cars, gas, insurance, tolls, accidents, and parking (which can run $75 in the heart of the metro area where I live) can be a huge drain on your wallet. Consider biking, public transit, carpooling, or occasionally working remotely if you can. These options are sometimes faster and often cheaper than your car. Do some research.
12) Sign up for a (free) accounting or tax class. Of all the classes I took in college, the accounting course was arguably the single most valuable. It pays (literally) to learn about how taxes, banking, compound interest, and financial statements work. For intro courses, the math is simple and approachable for all skill levels. More importantly, the benefit over your lifetime will be huge.
13) Unsubscribe from e-mail ads. How many times have you gotten that email for an Amazon item you don’t need that is on sale? Or a tasty deal at Chipotle? Or an irresistible-looking special on pizza? I found myself falling victim to all three. The enticing ads was taking a toll on both my wallet and health, so I now unsubscribe from junk e-mails immediately, so as to not even see them in my junk folder. Takes 5 seconds, not minutes, and saves you from the temptation of money-consuming advertisements.
14) Unsubscribe from catalogs or junk mail. This is more difficult than unsubscribing from e-mail, but companies like DMAChoice or CatalogChoice can help and are easy to use. You may need to call the sender directly or visit their website, but it’s worth the time. It’s also a good way of going green at no cost.
15) Get on the do not call list. Unfortunately, criminals and robots will still find ways of getting your number, but at least the law-abiding advertisers will not call you. Countries outside the U.S. may have a similar service.
16) Install Ad Block. All browsers. All devices. All the time. Make your internet experience better and avoid the flashy nuisance that is online advertising.
17) Mute the commercials. Credit to my old roommate for this tip. While it’s always better to cut the cord entirely, muting the commercials can help you avoid the psychological tricks that advertisers use inescapably. I’ll give you permission to leave them on during the Super Bowl though!
18) Register to vote. Most voters don’t give a second thought about registration until election day, and by then, the officials can be overwhelmed, or the deadline may have passed entirely. Even if it feels as though your vote may not make a big difference at the federal level, it can make a massive difference at the local level, where property taxes, schools, zoning, rent, and safety laws/ordinances are often decided by a few votes from the small percentage of voters that turn out. These can affect your finances and your community quality of life. Don’t be part of the politically passive population of non-voters when so much good can be accomplished with just a little involvement.
19) Subscribe to your favorite blogger! Shameless? Not at all! Aside from yours truly, be sure to check out Mr. Money Mustache, The Mad Fientist, and Living Stingy if you’re looking for some of the best bloggers in personal finance.
20) Re-read any of these articles. But this time, stop reading when you find an idea that’s good for you, and get it done! Then, do the same thing tomorrow. Even if you just pick just one item on this list to do per day… and actually do it… you’ll be stunned at how quickly your finances improve and your road to lifelong happiness broadens.
I hope you enjoyed the series and make a resolution in 2020 to tackle those that are the most important to you.
Do you have a favorite hack? What is the most amount of money you’ve saved in 5 minutes or less? Did I miss a tip you’d like to share? Share your thoughts in the comments section below!