This Week’s Money Map:

• 🔥 Protect Your Home: Navigating Fires and Insurance Challenges

• 💳 Credit card points strategy (part V): Aspirational travel using points

• 💰 2025's Money Rules (Part II): Why the Rich Keep Winning

• 💵 Bills You’re Overpaying for (and How to Slash Them Like a Pro)

• 🎆 New Year, New Credit Score: Boost It in 2025

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🔥 Protect Your Home: Navigating Fires and Insurance Challenges

Wildfires and other natural disasters can strike anytime, leaving devastation in their wake. Are you prepared to protect your home and finances? Here’s what you need to know to stay safe and insured.

The Growing Threat of Wildfires
The January 2025 wildfires in California destroyed over 20,000 homes and caused $12 billion in damages. Many homeowners were shocked to find they were underinsured or had no coverage. Rebuilding costs are soaring due to labor and material shortages, and FEMA assistance covers only a fraction of losses. This tragedy highlights the need for robust insurance coverage.

Insurance Challenges in High-Risk Areas
In 2024, major insurers like State Farm and Allstate stopped covering homes in wildfire-prone regions. Thousands lost their policies, leaving them scrambling for alternatives. If you’re struggling to find coverage:

• FAIR Plans: These state-backed policies are a last resort. They’re more expensive and offer limited coverage, so consider supplementing them with a wrap-around policy.

• Local Brokers: Experienced brokers can help find insurers still offering policies in your area.

• Mitigation Discounts: Some insurers provide discounts for wildfire safety measures like defensible space and fire-resistant materials.

Ensure You Have Adequate Coverage
Check your policy regularly to make sure it’s up to date. Look for:

• Replacement Cost Coverage: Ensures your home can be rebuilt at today’s prices.

• Additional Living Expenses: Covers temporary housing and other costs if you’re displaced.

• Flood Insurance: Fires can increase flood risks. Consider a separate policy for flood coverage.

Tips for Filing Insurance Claims
If disaster strikes, handle your claim efficiently:

1. Document the Damage: Take photos and videos of your home and belongings before cleaning up.

2. Track Expenses: Keep receipts for temporary housing, food, and other costs.

3. File Quickly: Call your insurer immediately to start the claim process. Request an advance for urgent needs.

4. Be Cautious: Avoid speculating about the cause of damage or accepting the first settlement offer.

Resources to Help You Recover:

• United Policyholders: Offers guidance on insurance claims and recovery.

• California Department of Insurance: Call 1-800-927-4357 for support.

Final Thoughts
Prepare now to protect your home. Review your insurance policy, make necessary updates, and create an emergency preparedness plan. For a detailed comparison of the best homeowners insurance, check out MoneyGeek’s guide on the best homeowners’ insurance companies for 2025. Stay prepared and take control—your peace of mind is worth it.

💳 Credit card points strategy (part V): Aspirational travel using points

Travel enthusiasts, get ready to turn your points into unforgettable experiences! Yes, flying first-class to the Maldives and staying at an overwater bungalow all on points is possible. Let’s dive into how you can make your travel dreams a reality!

Book Business or First-Class Flights
First-class flights for a reasonable amount of points are getting tougher to find, but you can still score incredible experiences if you know where to look. Tools like seats.aero and points.me can be your best friends. We recently scored a business class lie-flat flight from San Francisco to Tokyo for 50,000 points each way on a United flight booking through Air Canada. 

Book Economy Flights for More Travel
If you’re OK with flying coach, you can find great deals. I just found a flight on Air France from SFO to CDG (Paris, for those of you still learning your airport codes) for 15,000 points each way. Booking economy seats allows you to take more trips with your points or take your entire family.

Redeem at High-End Hotels
Luxe hotel stays are generally easier to book with points than business class flights. We found the Andaz Costa Rica Resort at Peninsula Papagayo for 25,000 points per night. Compare this to the cash rates of over $1,000 during U.S. winter months, and you can see the incredible value. How do you find these hotel point deals? You can transfer points from most major bank credit card programs to hotel programs like Hyatt or Marriott. Our favorite tool to find rooms you can book with points is maxmypoint.com.  

Although finding these incredible deals takes a little effort, points can offer you the trip of a lifetime. Whether you dream of a first-class flight to the Maldives or a cozy stay at a luxurious resort, your points can make it happen. Ready to start planning your dream trip? Explore more with our travel hacking guide and learn how to pick the best travel credit cards today.

💰 2025's Money Rules (Part II): Why the Rich Keep Winning (and How You Can Too)

This is the second part of a series inspired by Robert Kiyosaki’s book Rich Dad Poor Dad. Getting rich isn’t about working harder; it’s about playing smarter. Here’s how working-class folks can start building wealth today.

Taxes: Cut Your Biggest Expense
Taxes can take a big chunk out of your paycheck, but there are ways to reduce the burden. If you start a side hustle, you can claim tax deductions for things like your home office, mileage, and even your phone bill. Contributing to retirement accounts like a 401(k) or IRA not only helps you save for the future but also lowers your taxable income. Don’t overlook tax credits either. These can save you money on education expenses, childcare, or even mortgage interest. 

Build Wealth Beyond Your Job
Your paycheck shouldn’t be your only source of income. Start small and grow additional streams of money. Investing in stocks is easier than ever, with platforms like Robinhood or Acorns letting you start with as little as $10. If real estate interests you but feels out of reach, consider saving for a rental property or investing in REITs to get started. Online side hustles are another great way to boost income. Freelancing, selling crafts on Etsy, or renting out your car, tools, or even a spare room on platforms like Turo or Neighbor can bring in extra cash. 

Upgrade Your Skills
The job market changes fast, and upgrading your skills is key to staying ahead. Learn high-demand skills like sales, coding, or digital marketing. These are valuable in almost any field. Platforms like Udemy, Coursera, or even YouTube offer affordable courses that can help you get started. Always be ready to negotiate for higher pay once you’ve leveled up. If your current job won’t pay more, don’t hesitate to explore better opportunities. 

Take Action Today
The path to wealth starts with small, consistent actions. Use investing apps to track your spending and identify areas to save. Don’t wait for the perfect time—start today. Visit MoneyGeek’s investing guide for more tools to help you get started with your first investment.

💵 Bills You’re Overpaying for (and How to Slash Them Like a Pro)

Did you know companies bank on you not negotiating? It’s true. Whether it’s your cable provider, insurance company, or credit card issuer, they expect you to keep paying without a peep. But here’s the twist: with a little effort and strategy, you can flip the script and save hundreds—if not thousands—every year. Let’s get to it.

Cable, Internet, and Phone
Cable providers lose 2% of customers every quarter. Leverage that. Call and ask for new customer promos, price matching, or bundle discounts. Even a hint that you’re considering switching to streaming could prompt serious savings. Many reps have discounts they can apply instantly—if you ask. A 15-minute call could save you $20-$50 every month.

Credit Card Companies
Here’s a fact most people miss: Almost 70% of customers who ask for a lower interest rate get one. Call your credit card company and request an APR reduction. While you’re at it, ask for your annual fee to be waived or refunded. Mention competitors offering better rates or perks—they don’t want to lose your business. If they push back, ask for temporary perks like 0% balance transfer offers or hardship programs that reduce fees.

Insurance Providers
When was the last time you checked your insurance premiums? Bundling home and auto insurance can save up to 25%, but don’t stop there. Ask about loyalty discounts, reduced coverage for older vehicles, or mileage-based rates. MoneyGeek has a car insurance comparison tool that makes comparing rates fast and painless. Even a quick check could uncover hundreds in savings annually.

Gym Memberships
Gyms are notorious for sneaky fees. January is deals season—Crunch Fitness often waives enrollment fees, and Orangetheory offers free trials. Negotiate perks like free classes or discounts for paying upfront.

Cell Phone Plans
Telecom providers bank on your inertia. Take advantage of January deals, like Cricket Wireless’s unlimited plan for $15/month (with prepay). Even with your current provider, new offers roll out regularly—don’t hesitate to call and ask.

Saving money doesn’t have to be complicated. A little research, a few phone calls, and some smart comparisons can go a long way. Ready to learn more ways to take control of your finances? Check out MoneyGeek’s step-by-step guide to savings automation and start making every dollar count!

🎆 New Year, New Credit Score: Boost It in 2025

What if your credit score was the key to saving thousands of dollars? Higher scores mean lower loan rates, cheaper insurance premiums, and more cash in your pocket. It’s time to make 2025 the year you level up your financial game. Here’s how.

Start with a Credit Check-Up
Your credit report is like your financial report card. Get yours for free at AnnualCreditReport.com. Spot any mistakes? Dispute them fast—things like errors in late payments can drag your score down.

Pay Smart, Not Just on Time
35% of your score comes from payment history, so make sure you’re never late. Automate your bill payments to avoid any slip-ups. 

Credit Utilization: Keep It Low
Aim to use less than 30% of your total credit limit. Have a $5,000 limit? Stay under $1,500. Want to boost your score fast? Ask for a credit limit increase or pay off balances multiple times a month. 

Get More Credit Cards
It sounds counterintuitive, but opening a few more credit cards can actually improve your credit score. Why? It increases your overall credit limit, making your credit utilization percentage look better. Just remember, use them responsibly!

Experiential Credit Building
Here’s a fresh tip: use Experian Boost to add things like utility or cell phone payments to your credit file. It’s free, quick, and gives your score a little extra oomph. Another pro tip? Set up a small recurring subscription on a secured credit card and pay it off every month. 

Become an Authorized User
Here’s a sneaky yet effective trick: Ask a family member with great credit if you can become an authorized user on their card. This lets you piggyback on their good credit history—boosting your score without lifting a finger. Just make sure they keep their payments on track!

Pay Down Your Credit Card Debt with a Personal Loan
Here’s an unconventional yet powerful strategy: Consider using a personal loan to pay down high-interest credit card debt. By consolidating your credit card balances into one lower-interest loan, you reduce the total interest you pay, which can save you money in the long run and improve your credit score faster. Plus, personal loans diversify your credit mix—helping boost your score.

Good credit isn’t built in a day, but each step helps. Want more tips? Check out MoneyGeek’s resources on building credit score and get that higher score advantage for 2025. Your future self will thank you!

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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