money·4 min read

Skimm Money: Price Hikes, Negotiating Rent, and Revenge Spending

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Apr 16, 2021

Happy Friday and what would’ve been the day after Tax Day…if the IRS hadn’t moved the deadline to May 17. Today we’re breaking down our third money myth of Financial Literacy Month: that you need a lot of money to invest. Keep reading for why it’s smart to get started ASAP.

Headlines, Skimm’d

Make Good (Money) Choices

If you’ve been waiting to invest until you earned more...

Start now. Many investing apps and services let you buy fractional shares (aka small pieces of stocks and funds). Meaning you can invest just a few dollars at a time. Investing a little now could be smarter than waiting to invest more later.

Example: if you invest $100/month, and earn an average annual return of 7%, you'll have about $240K in 40 years. But if you hold off for 10 years, then invest twice as much – so, $200/month for 30 years – you end up with less. About $230K. theSkimm: Time in the market matters. Get in the habit now, then invest more as your paycheck grows.

PS: you can watch a recording of last night's SkimmU course, Investing 101, to learn more about being a confident investor.

If you want to do less and have more...

Money smarter. Staying on top of your finances doesn't mean doing everything the hard way. You can make things easier – and still move toward your goals – by using tech to your advantage, getting strategic about your debt, and looking for ways to earn passive income. We Skimm’d a few more ideas (and bonus reading and listening material) for you here.

If your lease is up soon...

Negotiate for lower rent. Start by researching rates for comparable apartments in your area. Then talk numbers with your landlord. If you can't get a price drop, ask for other concessions. Like a smaller security deposit. Or a free month or two in exchange for signing a longer lease term.

Tips Don't Lie

Avoid "revenge-spending" regret. The economy's rebounding. The stock market's on a hot streak. And some Americans (who are lucky to have disposable income) are ready to "revenge-spend." Think: splurging to make up for lost time. Here's how to spend smart.

  1. Take care of Future You first. Then give yourself permission to treat yourself (within reason) now.

  2. Try the 24-hour rule. Wait a day between adding to cart and clicking "buy." Just in case you change your mind. For big stuff, like a vacation, give it 30 days.

  3. Use rewards. If you're sitting on points, redeem some.

  4. Do good. Consider supporting important causes, like closing the racial and gender wealth gaps or going green. Revenge spending meets real purchasing power.

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