If You Have a $1000 In Your Checking Account, Make These 6 Moves

As I mentioned in my opening, I recently read in pennyhoarder.com “If you have $1000 in your checking account, make these 6 moves”. It outlined and suggested 6 things to do if you have $1000 in your bank.

The title was sure enough interesting and so was the article. In the next few minutes, I am going to go over the summary of each suggestion and share my 2 cents with you.

Number 1. Buy a company.

The article used the Forbes Richest People list as a point to argue that most if not all billionaires own companies. Point taken and accepted. It also made a counterpoint that if you work for a living and don’t have millions to invest in companies, getting to billions seems out of reach. Agreed.

Then it went on to recommend an app where you can invest as low as $1, a single dollar in major companies like Apple and Amazon. I am not about to name the app or make any recommendations, since I have not reviewed or done any research on the app. I may do it in the near future and make a whole episode about it. But for now, I agree with the overall message of the article and that is that many people make lots of money by investing in stocks. But I would not recommend doing so with your last $1000. Investment in anything, especially stocks, comes with risk.

Number 2.  See if you can get more money from this company

This article was suggesting opening up an account with a financial institution that offers 10% rewards on your spending with a debit card.  While in theory I don’t have a problem with it and this is something we are also working on bringing to our site and offering to our members, I would be extra careful when putting money in an account with an institution merely for the reward program. The reward program should be a fringe benefit, not the main reason for signing up on a service.  If you choose to do so, be sure to read the fine prints as many of them sound good in an ad or in an article, but in practice, they work totally differently.

Number 3. Invest in real estate (even if you’re not a millionaire).

This was my favorite part.  It went on to suggest putting $500 with a fund that invests in real estate in different projects and in different parts of the country. I truly believe real estate is the only vehicle that can empower ordinary people to achieve extraordinary financial success with not a lot of money. You don’t have to be a rocket scientist or have hundreds of thousands of dollars to make millions in real estate. All you have to do is work hard with the right people in the right markets and be persistent. And you will reap the benefits.

But putting $500 into a fund is not what I would advocate for.  If you truly only have $500 to invest in real estate, I would invest it in getting your real estate license, find yourself a good broker and a mentor and start working in the space. With the money you make on it, you can start dabbling in the investment and sky will be your limit.

Number 4: Cancel Your car insurance.

This sounds ludicrous. Obviously it was meant to be an attention grabber and the article was directing the reader to another online insurance platform. I don’t think I need to spend much time on this. Please don’t cancel your car insurance before you have signed up on another policy. If you think you are paying too much for insurance, we have quite a few insurance companies listed on moreandmorenetwork.com. We also have Roy Jefferson of State Farm from whom you can request a quote directly from our site.

Number 5: Add up to 300 points to your credit score.

The message rings true with me and yes, the higher your credit score is the more favorable interest rates and fees you get when you apply for credit, whether you are applying for a credit card or a loan for a major purchase like a car or house.

In my opinion, the article was using this point to sell the services of another platform where you pay them to monitor your credit. Candidly, I don’t have any personal experience with such companies and I have heard all kinds of stories about them.  I don’t worry much about my credit unless I am in the market to make a major purchase. And if you are working with a reputable lender, they can assist you get rid of any false data or errors on your report through their resources.

Finally, number 6: Find out if you are overpaying for homeowners’ insurance.

I can’t argue with that, no one can. Review your policy at least annually and see if you can shave a few dollars off of it at the time of renewal.  The article was again directing the readers to another platform which is fine. The things that affect your homeowner’s insurance cost that may be within your control are your claim history, the amount of the deductible, and of course the total amount of the policy. One thing most people never look into is the insurance company’s claim history. Not all insurance companies are good or quick when it’s time to process a claim and take care of the client. I have always had my policies with major insurance companies, such as State Farm and I have had a few claims on both cars and properties from time to time and I have always been pleased with them.

To summarize my view on the article; it had some good points, some impractical points, but it mostly came across as a subtle salesy article.

I hope this segment provided you with some transparency.