If 2020 has shown us anything, it’s that circumstances shift quickly, and we must adjust.
We’ve changed how we work, where we live and how we connect with others. Our financial routines have had to evolve too.
Some of those timeworn pieces of money advice we grew up hearing? They don’t always make sense right now. In fact, a few feel pretty outmoded.
Here are four modern alternatives to outdated money tips, so you can stay financially shrewd when 2021 finally arrives.
Outdated Advice 1: Hire a Financial Advisor to Map Out Your Investments
Financial advisors can be valuable, but they often come with hefty fees. Lots of us don’t have spare cash to toss at pricey services these days. Still, investing remains crucial, so finding ways to grow your accounts matters.
If you haven’t begun investing and have a little money to put aside, start modestly. You don’t need thousands to buy whole shares of stocks. Numerous robo-investment platforms now provide simple, automated ways to begin.
These services regularly allocate a modest amount of your money into the market, week after week. They follow a “set it and forget it” approach to investing. Before long, you’ll have built some future-focused investments without even noticing.
Outdated Advice 2: Stick With One Insurer to Keep Loyalty Discounts
Loyalty sometimes pays off. Insurers occasionally reward long-term customers with discounts, which can feel like a perk.
But a loyalty discount that trims a few dollars off your monthly bill may still leave you overpaying compared with other providers. There are companies that offer identical coverage for significantly less — we’re talking hundreds of dollars annually.
That’s why it’s smart to comparison-shop every six months or so. You don’t need to spend hours on the phone; just hop online to get free quotes and compare policies.
We’ve heard from people who shaved hundreds off their premiums this way — definitely worth the effort!
Outdated Advice 3: Just Chip Away at Debt a Little Each Month
Carrying credit card balances can feel overwhelming for many of us. Even in normal times it’s stressful; add a pandemic and soaring unemployment and it becomes a mountain of worry — a real tower of anxiety.
Meanwhile, credit card companies profit from sky-high interest. You can often extinguish those balances faster — and save money — by researching debt consolidation loans.
Look into options online. If you secure a favorable rate, you can use a lower-interest consolidation loan to pay off all your credit card balances.
The upside? You’ll have just one monthly payment to manage, and with a much lower interest rate, you can become debt-free much sooner.
Totally worth considering.
Outdated Advice 4: Rely Solely on Traditional Retirement Plans
Conventional wisdom has long pushed workplace retirement accounts as the primary savings route. They’re excellent vehicles, but treating them as the only path might limit your flexibility.
Nowadays, diversifying how you save for the future can be useful. Explore other tax-advantaged options if they fit your situation — for example, IRAs, Roth accounts, or even taxable brokerage accounts for added liquidity and investment choice.
And if you’re an empty nester shifting priorities or facing new financial realities, you might find tailored ideas helpful. For practical tips on that stage of life, check out financial advice for empty nesters.
To get the most from any retirement vehicle, educate yourself on fees, tax consequences and withdrawal rules. Small differences in fees or tax treatment can add up over decades.
Diversifying your approach gives you more control and resilience when plans change.
