If someone told you that you could save thousands of dollars in just one day, you likely would think they were a scammer with a get-rich-quick scheme.
With a few phone calls, a little research, and an organized game plan, however, you could clean up your finances and be on your way to saving some major cash. All you need is one day off from work.
Taking a ‘money holiday’
Managing your money can be difficult and time-consuming. Besides the day-to-day tasks such as tracking your budget and balancing your checkbook, there are bigger concerns you need to deal with. You might have to find a new insurance provider, cancel subscriptions, or make updates to your accounts.
However, between work, family, and other obligations, finding the time to work on those things can seem unrealistic. You end up putting off those tasks, sometimes for months.
I found myself procrastinating on things I needed to do. After work, the last thing I wanted to do was hop on the phone with customer service lines or submit paperwork. But my laziness was costing me money, so I decided to make money management a priority.
Now, I take one vacation day a year that is exclusively dedicated to financial matters. I use that day to knock out all of the tasks I’ve been putting off. By putting my “money holiday” in place, I regularly earn $1,500 or more — last year, I saved $2,940 by making time to manage my finances.
For my money holiday, I focus on these seven things.
Rent is by far my largest expense. Every year, I schedule my money day about 90 days before my lease is up so I can review the renewal notice and see what the new rent will be. Last year, my landlord notified me that my rent would be increasing by $250 a month.
A lot of people grumble about rent increases, but you have the power to negotiate your lease terms. My husband and I have always been good tenants; we’re quiet, we pay our rent early, and we take care of our apartment. Replacing tenants like us can be expensive, so I’ve found that landlords are usually happy to work with us.
I email the landlord and explain that I’m not happy with the increase, highlight how we’ve been such easy tenants, and propose a new price. Most recently, I talked my landlord down from $250 to a $100 monthly increase. Taking 10 to 15 minutes to send that email saved me $1,800 this year.
If your landlord won’t budge on price, see if signing a longer-term lease — such as 18 or 24 months — would result in a discount. If you have the means, you could even offer to prepay rent for several months in exchange for a price cut.
2. Cell phone plan
I’ve had the same cell phone provider since I was 15 years old (thanks, T-Mobile!). But every year, I spend about 30 minutes on the phone with their customer service to negotiate my monthly bill.
Before calling, I research what my current plan would cost with other services like AT&T or Verizon. Usually, I find that switching providers would save me about $10 a month. I take screenshots of those deals before calling my provider’s customer service.
On the phone, I explain that I’ve been a loyal customer but that cost is important to me. I mention that I looked up other providers’ deals, and offer to email them to the representative. At that point, the representative usually transfers me to a manager. I go through the same spiel again, and the manager agrees to reduce my bill to match the other providers’ offers.
It’s a tedious process, but using the phone to negotiate my bill saves me $120 a year.
3. Car insurance
While it’s a good idea to shop around for a car insurance policy, I start by reviewing my current policy and seeing if I need any changes. Now that I work from home, for example, I drive much less. By reducing the mileage on my policy, I can save about $8 a month.
I also review my coverage. If my car has depreciated significantly, I might need a smaller collision policy. And, because I’ve built up my emergency fund, I can get away with a higher deductible. By making those changes, I can save an additional $10 a month.
Once I know how much coverage I need and what deductible I’m comfortable with, I compare car insurance policies from several different companies. Just like my cell phone plan, I use my research to find a cheaper deal. Then, I call my agent and see if they can match it or reduce my price.
Altogether, I save about $20 a month on car insurance, adding up to an extra $240 in my pocket over a year.
4. Unclaimed money
You might be surprised to hear that there could be money waiting for you to claim it, but it’s true. The National Association of Unclaimed Property Administrators says over $3.2 billion was returned to individuals in 2015 alone.
Old savings accounts, insurance premiums, and other payments can sit unclaimed for years, but you can get government or state agencies to return it to you.
On my money holiday, I search for unclaimed cash or property using sites like Unclaimed.org and MissingMoney.com. You just enter your name and the state you live in now (or where you lived previously), and the site will tell you if there is unclaimed property waiting for you.
Last year, I found out that I had unclaimed dollars from insurance premiums I paid while I was living in another state. By searching and taking five minutes to complete and mail the claim form, I received a check for $250.
5. Bank and credit card statements
It’s a good idea to check your statements regularly, but on my money day I study every statement for the whole year, line by line. Although I do look for inaccuracies or fraudulent charges, I really focus on little subscriptions or plans I signed up for but no longer use.
Whether you signed up for a gym membership and never went or you subscribed to multiple streaming services, those small charges add up.
When I went through my statements, I found two old subscriptions for writing apps that I no longer found useful. I canceled them and saved $15 a month.
6. Unused items
The average household has about $2,500 in unused items in their home, according to iSold It.
Although my husband and I don’t have that much, we do have unnecessary clutter. We keep a box in the closet to stash unused items in, such as clothes we’re sick of, knick-knacks we no longer like, or kitchen supplies we replaced. That box usually sits there untouched — until my money holiday.
On my day off, I take pictures of each item, research their value, and list them for sale on eBay. I package each item so that when it sells, I just print a label and drop them off at the post office.
By following that process, I sold $190 worth of clothes last year.
When I first started freelancing, I wasn’t sure how to handle my taxes. I was terrified of an audit, so I didn’t deduct any of my business expenses or charitable donations. Big mistake. I could have deducted hundreds from my taxable income.
After I learned my lesson, I started a new process. I have a file organizer and several labeled folders for each tax category, such as income, business expenses, donations, and other deductions. On my money day, I go through online order confirmations or monthly subscriptions to collect all of my relevant receipts.
I print each one off and file them away accordingly; I prefer having hard copies so I can access them easily while I’m doing my taxes. By devoting a chunk of time to getting organized, my taxes are easier to complete and I get the full tax deduction I’m entitled to.
Because those deductions add up, I saved an extra $160 on my taxes by just going through receipts and emails.
Saving thousands in a single day
Those are the seven things I focus on during my money holiday, but your priorities might be different.
You could update your budget, negotiate with a credit card company for a lower interest rate, or research high-yield savings accounts. Whatever tasks you’ve been meaning to do but keep putting off, tackle them head on — your bank account will thank you.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 6.65%1||Undergrad & Graduate|
|1.99% – 7.10%2||Undergrad & Graduate|
|2.99% – 6.44%3||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 6.43%4||Undergrad & Graduate|
|3.18% – 6.07%5||Undergrad & Graduate|
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1 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020. Information and rates are subject to change without notice.
2 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.19% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 15, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 6/15/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.19% effective June 10, 2020.