This Week’s Money Map:

• 💰 $10/month insurance add-on that could save you up to $100K

• 🚗 How tracking your driving habits could cut premiums by 40%

• 💸 Why the end of the day is the WORST time to make financial decisions

• 😎 MG Book Club week 4: Spending without guilt

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💰 The $10/month insurance add-on that could save you up to $100K

If there was a way to protect your income, home, and savings from a costly accident — for the cost of a streaming subscription — would you do it?

That’s exactly what umbrella insurance offers. It’s one of the most affordable types of coverage available, yet most people earning under $75,000 per year don’t even know it exists. Ironically, it’s a safety net that wealthy people almost always have. The good news: it’s just as useful (and available) to everyday earners.

What is umbrella insurance — and why should you care?
Umbrella insurance is an extra layer of liability protection. It kicks in after the limits on your existing auto, renters, or homeowners insurance are maxed out. That means if you’re ever found legally responsible for injuring someone or damaging property in excess of what your policy covers — say, your policy covers $300,000 but you’re sued for $500,000 — umbrella insurance could step in and cover the remaining amount (in this case, $200,000).

$1M in umbrella coverage often costs as little as $10 to $25 per month, depending on your provider and policy limits. That’s a small price to pay for peace of mind, especially when you consider that even a minor car accident or dog bite could put your finances at risk.

Real-life scenarios where it matters
Think this only applies to people with six-figure incomes and multiple properties? Think again.

• You host a backyard gathering and someone trips, falls, and breaks a bone. Their medical bills exceed your home insurance limits.

• You’re at fault in a multi-car accident, and several people are injured. The hospital bills alone can add up to hundreds of thousands.

• Your teenager is learning to drive and causes damage beyond what your auto policy covers.

In any of these cases, an umbrella policy could prevent your savings from being wiped out.

How to add it (and where to start)
Most major insurers — like State Farm, GEICO, Allstate, or Progressive — offer umbrella insurance, often as an add-on to your existing policy. You may need to increase your base liability coverage first, which is usually a minimal adjustment.

Start today by comparing life insurance companies and quotes to find the policy that makes sense for your situation.

🚗 Usage-based auto insurance: How tracking your driving habits could cut premiums by 40%

Think you're a safe driver? Your insurance company might actually reward you for it. Usage-based insurance (UBI) or telematics programs track your driving habits and could slash your premiums by up to 40%. 

If you're skeptical about letting your insurer track your driving for a discount, consider this: telematics users are saving up to $120 annually by sharing their driving data. Those with younger drivers on their policy save as much as $245, according to a Consumer Reports survey.

How usage-based insurance works
Instead of relying on generic risk factors like age or ZIP code, UBI programs track your actual driving using a mobile app, plug-in device, or your car’s built-in telematics system.

What it tracks:

• Driving behaviors: Your acceleration, braking, cornering, speed, and phone use.

• When you drive: Late-night trips often count against you.

• How much you drive: Fewer miles typically mean bigger savings since less driving means lower risk. 

• Where you drive: Some programs factor in road types and areas.

What you need to know
The discounts are real, with maximum savings of 40%, though there's little data on average discounts. Most apps show driving scores and tips to improve. Also, you can do a trial period. Many insurers let you test the program before applying discounts. And if you have privacy concerns, you can review each company’s data policies (though location tracking is generally required).

Who saves the most?

• Low-mileage drivers (commuters, retirees, remote workers)

• Safe drivers who avoid speeding and sudden stops

• People who rarely drive late at night

However, if you regularly drive late nights, have a lead foot, or frequently travel through high-traffic areas, UBI might increase your rates, so keep that in mind.

So, bottom line: If you’re a careful driver, a UBI plan could put money back in your pocket — one smooth stop at a time.

For more details on how different insurance companies structure their usage-based programs and other ways to save on car insurance, check out MoneyGeek's comprehensive auto insurance guide.

💸 Decision fatigue and money: Why smart people make poor financial choices at the end of the day

Ever found yourself adding just one more thing to your online cart at midnight? Or ordering takeout instead of cooking the groceries you just bought? Blame decision fatigue — the sneaky brain drain that leads even the smartest people to make questionable financial choices.

Why it happens
An article published in the Proceedings of the National Academy of Sciences found that judges grant parole significantly more often in the morning than in the late afternoon. Your financial decisions follow the same pattern — calculated and rational in the morning, emotional and short-sighted by night.

In other words, your brain is like a battery. It loses charge with every decision you make. By the end of the day, it’s running on fumes, which means:

• Impulse buys: That "limited-time deal" feels impossible to resist.

• Bad spending habits: Cooking? Nope. Another $20 on DoorDash? Sure.

• Avoiding financial tasks: That budget review? It can totally wait.

How to fight it
You don’t need superhuman willpower, just a few tweaks:

• Automate your decisions: Set up auto-transfers for savings so your tired brain can’t sabotage you.

• Plan money moves early: Make big financial decisions (like investments or budgeting) in the morning when your brain is fresh.

• Limit choices: Too many options = mental overload. Pick a few go-to stores, brands, or financial habits and stick with them.

• Create simple rules: Establish personal spending policies like "no online shopping after 8 p.m." or "24-hour wait period for purchases over $100."

Your brain gets tired, but don’t take it out on your wallet. Make the important money moves at the start of your day, before decision fatigue kicks in. 

😎 MoneyGeek Book Club week 4: Spend without guilt (Yes, really)

Most financial advice sounds the same: “Stop buying lattes,” “Cancel that streaming service,” or “Track every single penny forever.” But what if the path to financial confidence wasn’t about cutting everything — and instead about spending with intention?

In week 4 of our I Will Teach You to Be Rich book club series, Ramit Sethi redefines what it means to be smart with your money. And (spoiler alert) it’s not about budgeting to the last dime.

The no-budget way to feel good about your spending
Budgeting sounds great … until you actually try it. Most of us give up after two days of logging transactions and feeling bad for ordering takeout. The solution? A Conscious Spending Plan.

This isn’t about giving up what you love. It’s about knowing exactly where your money is going and choosing to spend guilt-free on what actually matters to you.

Here’s how conscious spending works:

1. Automatically allocate money to your essentials (think rent, groceries, insurance).

2. Set aside a fixed amount for investing and saving (automated, of course).

3. Then — and here’s the fun part — spend the rest on whatever you want!

That could be travel, shoes, Friday night pizza, or hobby supplies. As long as you’ve handled your priorities first, the rest is fair game.

Cheap vs. conscious
There’s a key distinction here — Sethi distinguishes between cheap people and conscious spenders. Cheap people cut costs across the board. Conscious spenders cut ruthlessly in areas they don’t care about (say, skipping the soda at lunch) so they can splurge on the things they love (like court-side tickets or a monthly massage).

Think of it this way: You don’t have to say no to everything. You just have to say yes to what matters most — and no to what doesn’t.

What to do this week

1. Take 10 minutes and list your top three spending joys.

2. Then list three things you buy that you could honestly live without.

3. Adjust your spending this month based on those lists. That’s your starter Conscious Spending Plan.

No guilt. No spreadsheets. Just choices that work for you.

Ready to go deeper? Check out MoneyGeek’s cost of living calculator and then start by planning your expenses. We’ll be back next week to talk about crushing debt — without the overwhelm.

Smart Cents gives you actionable tips and mindset shifts to help you reach your financial happy place. Thanks for being a part of our community.

The MoneyGeek Team

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