Millennial shares 6 ‘rich people hacks’ that are ‘worth trying’ — they’re unusually impressive
Millennials and younger generations have seen life differently compared to boomers. Their income, expenses and other financial realities have drastically changed over the years. As a result, many are struggling to save and even become financially comfortable. A millennial who goes by u/coupponerd shared a post on the r/Millennials forum with 6 tips they learned while navigating their financial journey. Describing them as “rich people” hacks, these tactics might have some productivity that many can take note of.
1. ‘Stop getting price-gouged when you shop online’
One thing people do is go crazy when they go shopping under the idea of a sale. Sharing an impressive observation, the person noted, “The ultra-rich obviously have personal shoppers to compare prices for them.” Unfortunately, we don’t have that time, but price comparison online wouldn't hurt. “Capital One Shopping has always worked well for me and I recommend it,” the post read. It was added that many online shopping sites like Amazon “will automatically compare prices for you," and help in frugal spending.
2. ‘Your home equity is a gold mine. If you need cash, stop taking out high-interest loans.'
“Many people take out high-interest payday loans – please don’t do this. If you get into trouble, you can typically get a relatively low-interest HELOC (a home equity line of credit). Essentially, with a HELOC, you’re borrowing against the equity you have in your house and using it for whatever you need (much like a credit card)," the person advised. They mentioned that the lower interest rates and flexible payments are financially a suitable pick.
3. ‘Switch auto insurance companies every 6-12 months’
The millennial noted that one needs to compare auto insurance rates once in 6 months. “If you’re not, you’re probably overspending,” the post mentioned. Sharing an instance, they said, “I cut my car insurance bill by $1,300 this year by switching carriers (same coverage) and it took me a whopping 5 minutes.” The use of “comparison sites like Coverage.com, and Auto-Savings.com to compare multiple offers from different companies in one go” is a smart move.
4. ‘Get yourself an advisor’
It is not compulsory that only wealthy people take assistance from financial advisors. “If you have a net worth of $100k+, you can typically qualify for an advisor. Having an advisor can boost your yearly net returns by 3%,” the post mentioned. The millennial suggested checking out advisors with good reviews to help make frugal decisions when it comes to money.
5. ‘You don't have to pay off your debt by yourself’
This is music to the ears of many. “If you have $10k+ in debt, you can technically ask for a debt relief to come in and take over the process for you,” the post explained. As per the millennials’ research, there is a possibility of getting up to 23% off on the debt, after fees, along with aid in “negotiating with creditors to get the debt reduced.”
6. ‘Save on home insurance’
The last tip is similar to that of auto insurance. It was recommended that people switch their home insurance providers now and then to save money and cut extra costs. “Some homeowners save $1k+/year just by switching home insurance providers (typically saving them more than changing auto insurance policies),” they noted. Ideally, it would be best to check and compare rates after a year to get clarity on the differences.