5 Money Hacks that will save you a Bundle
Pay off debt with debt
This sounds like terrible advice, and for many people it just might be. However, if you are committed to paying off debt, you may be able to do it faster and cheaper by using a zero interest credit card or a personal loan. The credit card method only works if it is zero interest and you use it to pay off debt that has a higher interest rate. For example: you can transfer balance from a card with 24 percent interest to the zero interest rate card and start shaving off your debt faster. You should only transfer as much as you can pay off in the promotional period and do not spend anything else on that card!
Personal loans from a bank can save you money by allowing you to consolidate debt at a much lower interest rate. This could potentially save you thousands of dollars and the hassle of paying five different debt payments each month. This hack is only advisable if you are responsible enough not to put yourself in more debt.
Pay insurance premiums for the entire year
You can save upwards of $100 or more by paying your insurance up front. This is usually reserved for car insurance, homeowner’s insurance and life insurance policies. Most companies offer a discount for full-payment up front because they do not have to process your payment each month. You should plan to stay with the company for at least a year (to get your money’s worth) and save up throughout the year so you have the cash to pay it off when the renewal date comes.
Auto-draft for savings, investment etc.
If you have been unsuccessful at saving money for a vacation, emergency fund or other expense, consider auto drafting it each month. Most banks offer auto bill-pay options, simply set up a withdrawal to your investment account or separate checking account on the days your paychecks deposit into your account. The money will be gone before you even miss it and soon you will have a sizable amount of money set aside.
Shop around for insurance
If you have not checked around for better car insurance rates in the last three years, do it. You could easily a hundred dollars or more per month just by switching companies. This is particularly true if you do not have any car accidents or tickets on your driving record. Most companies are happy to offer you free quotes and your own insurance company may be willing to cut back if you let them know you found a better price elsewhere.
Pay with cash and save all of your $5 notes
Pay for gas, groceries and other expenses with cash. Every time you get a $5 note (or $ 2 coin if that is easier for you), put it into a jar and do not spend it. The small amount you are saving does not feel like much as you set it aside, but it can add up very quickly. If you do not trust yourself, consider hot gluing the lid onto an old glass jar and cutting a slid in the lid to deposit the cash. (You can put it in, but you cannot take it out).
In addition to the above hacks – take advantage of grants and benefits and/or loans from the government versus payday lenders should an emergency that requires cash pops up. Also, if you are ever in a position where you feel you need to borrow money to pay for everyday bills – contact a financial counselor first as they can provide free professional advice on the best way to handle your situation to avoid going into debt.