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Posted on January 16, 2021

Can you Pay a Credit Card with a Credit Card?

A credit card is designed to help you in an emergency, to give you options when there are none. But what happens if you have a maxed-out credit card in one hand and an empty card in the other, can you use one credit card to pay off the other and, more importantly, should you?

The short answer is yes and… probably not. However, there is a better option available and it’s actually one of the best ways to clear a credit card balance.

Options for Paying Credit Card Bill with Another Card

There are three ways you can clear a credit card bill using another credit card. The first two options are nothing short of terrible and are likely to cause more issues than they fix. The third is really the only one you should consider, but before we get to that option, let’s get the bad ones out of the way.

Cash Advance and Convenience Checks

Credit card companies won’t let you pay off one credit card with another, at least not in that way. However, you can get around this by using convenience checks or a cash advance. The former is sent by your creditor for you to make a deposit into your checking account; the latter is used to withdraw cash. 

Technically, you can get cash from your credit card, put this into your checking account, and then use that money to clear your credit card debt.

​But, as mentioned above, this is a bad idea. Cash advance fees can be enormous and if you’re moving large sums of money and being charged a high fee for doing so, you could be seriously out of pocket. Luckily, there is a better alternative.

Using a Balance Transfer

A balance transfer is the act of moving a credit card balance from one or more cards to another. There are specific balance transfer credit cards designed to help you with this process and all come with an introductory period where you’re offered 0% APR for the first 6, 12 or 18 months. 

Once this period ends, you may be charged a higher interest rate, but if you can clear your balance during that intro period those extra interest charges won’t matter.

How Balance Transfers Work

Balance transfer credit cards are used by credit card companies to attract new users. These introductory offers convince you to move your balance to a new credit card company, after which they hope you will continue to make purchases, accumulate debt, and remain with them for years to come.

Most balance transfer credit cards charge a fee for moving the money across. This fee is often levied as 3% or 5% of the total balance, which equates to $300 or $500 for a balance of $10,000. 

That sounds like a lot, but it also comes with a 0% APR, which means your monthly payments will go exclusively towards the principal, paying it off quickly.

Usually, the majority of your minimum payment goes towards interest, which means your balance will decrease slightly with each passing month. By removing this interest obligation from the equation, all your payment will go towards the balance, thus clearing it quickly and cheaply. 

These cards can save you thousands of dollars if used properly, but it’s important not to swap an older problem for a new one; not to create the same issues on your new card that you had on your old card.

Use a balance transfer offer to remove the balance entirely. Meet the minimum payment, pay more where possible, and ensure that when the introductory period ends, there is no balance on which interest can build. Once you reach this point, you’ve wiped the slate clean and can start afresh, making credit card payments on time and clearing your balance in full every month.

Many balance transfer credit card offers come with a $0 annual fee and don’t charge you for foreign transactions. However, they typically won’t provide you with the sort of cashback rewards you can get from other credit cards.

Paying Off a Credit Card with Bad Credit

If you have bad credit, you may struggle to find a balance transfer card with a high enough credit limit. These cards, like all good credit cards, require a relatively clean credit report, preferably with a credit score above 670.

As long as your credit score is above 580, you’ll still options, but those options may be limited to high-interest rates and unfavorable terms. In such cases, there are a few things you can to clear your credit debt:

1. Improve Your Credit Score

A balance transfer fee is the only real downside to a balance transfer credit card, so it’s worth putting the time and effort in to get one of these cards. It may only take a few months to improve your credit score to a point where you can apply for one of these cards.

Take a look at the best balance transfer credit cards (Discover, Visa, Chase) to give you an idea of the sort of card that can help you and the type of credit score you need. Once you have that target in mind, you can work towards achieving it.

2. Credit Counseling

A credit counselor can look at your current financial situation and determine the best course of action going forward. These services are offered by many credit counseling agencies and you typically only need to pay a token amount for a short 30- or 60-minute session.

3. Debt Consolidation

Debt consolidation is very similar to a balance transfer, as it swaps one or more smaller debts for a big one. The difference is that it pays the credit card balances off with a single loan, and you then focus on repaying that loan.

Typically, debt consolidation extends the length of your loan with a view to reducing the monthly payments but increasing the total balance. This can help to make your credit card debt more manageable and it will also improve your debt-to-income ratio.

4. Debt Settlement

Debt settlement is one of the cheapest ways to clear credit card debt. It begins when a debt specialist requests that you stop meeting all monthly payments and then move your money to a separate bank account. 

The debt specialist will then use this bank account to negotiate with your creditors, waiting until they desperate to settle and then offering them a greatly reduced settlement sum.

Just bear in mind that when you miss a minimum monthly payment, you run the risk of your account defaulting, which will hurt your credit score.

Can you Pay a Credit Card with a Credit Card? is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

Posted on January 16, 2021

Easiest Credit Cards to Get After Bankruptcy

A woman sitting on a couch

There’s nothing fun about declaring bankruptcy, but those who emerge from it can be thankful for the opportunity to rebuild their personal finances without the burden of debt. Unfortunately, bankruptcy also does damage to your credit, making it difficult to get approved for credit cards and other lines of credit. Since credit cards are a good way to build or rebuild credit, we have the details for some credit cards to get after bankruptcy.

Secured Credit Cards

Secured credit cards generally have lower credit score requirements and often can be obtained post-bankruptcy. While they do require an upfront security deposit to open, they otherwise work just like traditional credit cards and can help you rebuild your credit. When choosing a secure credit card, look for one that lets you build toward unsecured credit status and reports to all three credit bureaus so it helps you positively impact your credit.

Credit Cards for Bad Credit

Secured credit cards are often considered bad debt credit cards because they’re targeted to people with poor or no credit. But you can also find credit cards that are approved for people with less-than-stellar credit and don’t require a security deposit. In return for the chance to get positive reporting on your credit report via one of these cards, you might have to pay an annual fee or deal with a high interest rate.

Credit Card for After Bankruptcy

There’s no single best credit card to get after a bankruptcy, but there are many options to consider. Carefully review the details of relevant credit card offers before making a decision for yourself.

OpenSky® Secured Visa® Credit Card

OpenSky® Secured Visa® Credit Card

Apply Now

on Capital Bank’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
17.39% (variable)

Balance Transfer:
N/A

Annual Fee:
$35

Credit Needed:
Fair-Poor-Bad-No Credit

Snapshot of Card Features
  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card

Card Details +

Annual Fee: $35

APR: 17.39% (variable)

Why we picked it: This card helps you build credit while still offering a fairly low interest rate and a refundable deposit for as little as $200 (some restrictions apply; see cardholder agreement for details).

The details: There is no credit check necessary to apply, and you can apply in less than 5 minutes. Your responsible use of the card is reported to all three credit bureaus each month. And when you need extra credit, you may be eligible for a credit line increase.

Drawbacks: There is an annual fee, which isn’t necessarily bad in exchange for building credit.

Read Our Full Review

First Progress Platinum Elite Mastercard Secured Credit Card

First Progress Platinum Elite Mastercard® Secured Credit Card

Apply Now

on First Progress’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
19.99% Variable APR for Purchases

Balance Transfer:
N/A

Annual Fee:
$29

Credit Needed:
Poor-No Credit

Rates and Fees

Snapshot of Card Features
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Full-Feature Platinum Mastercard® Secured Credit Card
  • Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • Apply in just a few moments with no negative impact to your credit score; no credit inquiry will be recorded in your credit bureau file
  • Nationwide Program though not yet available in NY, IA, AR, or WI * See Card Terms.

Card Details +

Annual Fee: $29

APR: 19.99% Variable APR for Purchases

Why we picked it: With responsible use, this card can be a good place to start working to rebuild your credit. There is no minimum credit score required for approval, and it also reports to all three credit bureaus each month.

The details: You can secure your credit line by putting down a fully refundable deposit of $200 to $2,000 during the application process. When you pay off your balance, you can receive your deposit back. Its expedited processing option lets you receive your card more quickly, and you can apply in minutes with no negative impact to your credit score.

Drawbacks: While the APR isn’t super high for a bad-credit credit card, it’s still high enough to run up hefty interest charges. You’ll want to pay the balance off as often as possible to avoid that extra expense. The card is not yet available in all states.

Milestone Unsecured Mastercard

Milestone® Unsecured Mastercard®

Apply Now

on Milestone’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
24.90%

Balance Transfer:
N/A

Annual Fee:
$35 – $99*

Credit Needed:
Poor-Bad

Snapshot of Card Features
  • Easy pre-qualification process which does not affect your credit score
  • Choice of card image at no extra charge
  • Less than perfect credit is okay, even with a prior bankruptcy!
  • Mobile friendly online access from anywhere
  • Accepted nationwide, wherever Mastercard is accepted
  • Unsecured credit card, no deposit required
  • Protection from fraud, if your card happens to be lost or stolen

Card Details +

Annual Fee: $35 – $99*

APR: 24.90%

Why we picked it: It is possible to be approved with poor credit and a bankruptcy on your credit report, but you don’t have to start with a security deposit. Plus, you can choose your card image at no extra charge!

The details: Prequalification doesn’t require a hard credit inquiry, so you can find out if you’re a likely candidate for this card without impacting your credit. You can access your account via mobile to manage it, helping you stay on track with positive payment history and balance management, and the card comes with decent fraud protection.

Drawbacks: The annual fee can be pretty high depending on the terms you’re approved for. The interest rate is also fairly high, so you might not want to carry over large balances between statements.

Indigo Mastercard for Less Than Perfect Credit

Indigo® Mastercard® for Less than Perfect Credit

Apply Now

on Indigo’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
24.90%

Balance Transfer:
N/A

Annual Fee:
$0 – $99*

Credit Needed:
Poor-Bad

Snapshot of Card Features
  • Less than perfect credit histories can qualify, even with prior bankruptcy!
  • Choose your card design with chip technology at no additional cost
  • Quick pre-qualification available with no impact to your credit score
  • Easy pre-qualification process with fast response
  • 24/7 access to your account, even on mobile!
  • Protection from fraud, if your card happens to be lost or stolen
  • Accepted nationwide wherever Mastercard is accepted

Card Details +

Annual Fee: $0 – $99*

APR: 24.90%

Why we picked it: You can prequalify for this card without impacting your credit, and there’s no security deposit required.

The details: The APR is fairly steep, so you probably want to limit what balances you carry over each month. How much the annual fee is depends on your credit profile. However, it doesn’t require a security deposit.

Drawbacks: A potentially high annual fee and less-than-stellar APR make this a potentially expensive way to build credit.

Avant Credit Card

Avant Credit Card

Apply Now

on Avant’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
25.99% (variable)

Balance Transfer:
N/A

Annual Fee:
$39

Credit Needed:
Fair

Snapshot of Card Features
  • No deposit required
  • No penalty APR
  • No hidden fees
  • Fast and easy application process
  • Help strengthen your credit history with responsible use
  • Disclosure: If you are charged interest, the charge will be no less than $1.00. Cash Advance Fee: The greater of $10 or 3% of the amount of the cash advance
  • Avant branded credit products are issued by WebBank, member FDIC

Card Details +

Annual fee: $39

APR: 25.99% (variable)

Why we picked it: There’s no deposit required, no penalty APR, and no hidden fees.

The details: What you see is what you get with this card. With responsible use, you can strengthen your credit history.

Drawbacks: There is an annual fee and the variable APR can be a bit steep. You may also need fair credit to qualify.

Read Our Full Review

Surge Mastercard

Surge Mastercard® Credit Card

Apply Now

on Surge’s secure website

Card Details
Intro Apr:
N/A

Ongoing Apr:
See Terms*

Balance Transfer:
N/A

Annual Fee:
See Terms*

Credit Needed:
Fair-Poor-Bad

Snapshot of Card Features
  • All credit types welcome to apply!
  • Monthly reporting to the three major credit bureaus
  • See if you’re Pre-Qualified without impacting your credit score
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere that Mastercard® is accepted
  • Free online account access 24/7
  • Checking Account Required

Card Details +

Annual fee: See Terms*

APR: See Terms*

Why we picked it: All credit types are welcome to apply, and the pre-qualification process won’t impact your credit score.

The details: Surge can be used anywhere Mastercard is accepted. , and the card reports to all three major credit bureaus.

Drawbacks: You need a checking account to apply. Because the card is specifically for people with less-than-perfect credit scores, interest rates and terms may be a bit high.

Read Our Full Review

How to Choose a Credit Card After Bankruptcy

After a bankruptcy, improving your finances and rebuilding your credit should be a priority. Do some research and pick a credit card that helps you achieve that goal. If you feel that you can’t responsibly manage credit right now, you should wait until you’re in a better place to submit a credit card application.

Since secured credit cards require an upfront security deposit, you’ll need to determine how much money you can afford. Most secured cards will give you a credit line that equals the amount of your original deposit.

While high APRs and annual fees are common with all of these credit cards, you should compare rates across several cards to find the ones that are best for your spending habits.

Some cards for bad credit are designed to exploit people using unfair terms or policies that make it difficult to rebuild your finances. You may even start receiving multiple credit card offers in the mail after your bankruptcy is discharged. Watch out for red flags to avoid getting burned.

And remember: A credit card can only build credit if you use it correctly. You should keep your credit card balance below 30% of the available credit limit and make all your payments on time to help build your credit.

The post Easiest Credit Cards to Get After Bankruptcy appeared first on Credit.com.

Source: credit.com

Posted on January 15, 2021

21 Ways You Can Learn How To Save Money In College

how to save money in collegeLooking to learn how to save money in college? With ever rising college costs, it can really help your current and future finances if you learn how to save money.

Tuition for an in-state public college averages around $25,290. Private college tuition costs twice as much, at an average of $50,900, according to Value Penguin. If you want to go to an elite, four-year university, the cost jumps to $68,000 per year.

And, if you’re going to college for something like medicine or law, you may end up paying hundreds of thousands of dollars over the years that you are in school.

As you can see, college can be very expensive.

However, I want you to know that you can learn how to save money in college so you can get a valuable college degree on a realistic budget.

Many students take out student loans to pay for college, and it can be very easy to borrow more than you actually need. While student loans do help you pay for college, having those loans hanging over your head can set your finances back by years and even decades.

And if you’re a parent trying to help your child, I’ve heard far too many stories of parents who go to great lengths to pay for school. Some take out a second mortgage, personal loans, or borrow from their retirement to send their children to college. The problem with this is that these parents are making it even more difficult to retire at their planned age. Remember, you can’t take out a loan for retirement!

College is just very expensive, but for many students it’s an important part of how they work towards a job or career they’ve always wanted. But, I want you to know that you can learn how to save money in college.

By cutting college costs, you can lower your student loan debt, or it can help parents reduce the amount they are borrowing or taking out of savings to pay for their children’s education.

Or, with these tips on how to save money in college, you may be able to attend college without racking up any student loan debt. Remember, that is also possible!

Related articles on money saving plan for students:

  • Learning How To Survive On A College Budget
  • How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
  • How To Pay Off Student Loans (How I Paid $40,000 in Student Loans in 7 Months)
  • How To Balance Working And Going To College

How to save money in college.

 

1. Think about the value each college will offer you.

I know many students who think about which college their friends are going to or which one is ranked the highest. But, you should think about which college is best for you and your specific major.

Sometimes, the highest ranked or most expensive college may not be the best for your actual major, which can hurt you in the long run and it isn’t how to save money in college. 

When thinking about whether or not a college is right for you, here are some things you’ll want to consider:

  • Accreditation- This is especially important if you want an advanced degree, such as medicine or law, because accreditation can determine whether or not you can go on to the next level of schooling.
  • Degrees- Which ones are offered by the college.
  • Cost- This includes the cost of tuition or the program you’re going into, plus whether scholarships or financial aid are available.
  • Location- If it’s close to home, can you save my living at home. But if it’s far away, you will need to think about dorm fees and the total cost of living.
  • Student to faculty ratio- If you need more one-on-one help with your studies, then this may be an important number to know.
  • The expertise of the professors- For me, I always liked having professors who had hands-on knowledge in the fields they were teaching.
  • Networking opportunities- A lot of life is about networking, and this is a must for some professions.

There’s a myth that expensive colleges are always better than the cheaper ones. As if higher college costs means that you’ll automatically get a great job, you’ll have an extremely high salary, and more.

One way of learning how to save money in college is to just stop believing in that myth!

In fact, according to an article in The Wall Street Journal:

From the academics [who have studied whether students from elite institutions outperform their peers or not] we know that in terms of future earnings, 1) your choice of field matters more than your choice of college, 2) after controlling for ability, the earnings differences of graduates from elite and non-elite institutions are small at best, and 3) any earnings advantage that may emerge over the long run is difficult to concretely tie back to the effects of one’s college choice.

 

2. You need to think about the full cost of college.

There is a lot that goes into the full cost of college, and it’s not just the initial tuition cost.

The most expensive school may actually be able to give you more scholarships than a less expensive school. That means the most expensive school may actually be the cheapest in the end, and this is why you need to think about the total cost.

And, there are still many great colleges that don’t come with a high tuition.

There are many factors that determine real college costs, and due to this, you’ll want to think about things such as:

  • College tuition- This will most likely be the biggest expense that you pay.
  • Room and board- Will you live on campus or not?
  • Fees- Whis can include laboratory fees, parking fees, etc.
  • Textbooks- Textbooks can easily cost a few hundred dollars each semester.
  • Financial aid- Will you receive any?
  • Scholarships- Will you apply for any?

Doing those last two things is one of the best ways to save for college, so please apply for scholarships and financial aid!

Considering all of the factors I’ve just listed can help you learn how to save money in college, and when you put them together, it may change your mind on which college provides the best value.

 

3. Remember that college isn’t the only thing that’s important.

When thinking about how to save money in college, you also want to remember that college isn’t the only thing that’s important. Yes, you definitely want to take it seriously and learn as much as possible, but there are other factors that are extremely important as well.

These other factors may play an even bigger role in helping you land the job you want.

Some of the other points you’ll want to keep in mind include:

  • Internships
  • Extracurricular activities such as college clubs
  • Part-time and full-time jobs
  • Leadership opportunities

And more!

With those things on your resume, you may put yourself ahead of others that are applying for the same position. These things are important no matter where you went to college.

Remember, companies want to see that you can apply what you learn and that you actually have experience.

 

4. Taking community college classes is one of the best ways to save money in college.

When you graduate with a four-year degree, the school name on your diploma will be the name of the college you graduated from. It won’t say, “graduated from here but took some classes at community college.” This is because your community college credits are transferred (if you follow the correct steps as outlined by your school).

If you are wondering how to save money in college, this is a great way to cut college costs.

Whether you are in college already or if you haven’t started yet, taking classes at a community college can be a great way to save money.

Community colleges provide an enormous value. However, many think they are too good to save money by taking classes at a community college.

Usually, earning credits at a community college costs just a fraction of what it would cost at a 4-year college, so you may find yourself being able to save thousands of dollars each semester. 

You may only spend $5,000 a year at a community college (most likely even less), which is a huge difference from the costs that were mentioned at the beginning of this article.

There is also a myth that your degree is worth less if you go to a community college. That is not true at all. When you eventually earn your 4-year degree, your degree will only say where you graduated from and it won’t even mention the community college credits. Your degree will look the same as everyone else that attended your college, whether you took a few classes at community college or not. You might as well save money!

I only took community college classes during one summer semester where I earned 12 credits, and I regret not taking more. I probably could have saved around $20,000 by taking more classes at my local community college.

Also, community colleges are great for getting general type credits out of the way, so you’re not missing the interesting and in-depth classes that gives your 4-year college the reputation it’s known for.

If you decide to go to a community college first, always make sure that the 4-year college you plan on attending afterwards will transfer all of your credits. It’s an easy step to take, so do not forget! You should do this before you sign up and pay for any classes at the community college.

Related post on how to save money in college with community college: I Thought I Was Too Good For Community College.

 

5. Take advantage of high school classes that give you college credit.

One way of how to save money in college starts while you’re in high school. See, many high schools offer dual credit classes that allow you to earn both college and high school credits at the same time. Most of the time, these are done right at your high school, so you don’t have to go out of your way to take them!

If you are still in high school, this is something I highly recommend you look into, as it saves time and it might even be the best way to save for college.

When I was in my senior year of high school, nearly all of my classes were dual enrollment courses where I was earning college and high school credit at the same time. I took AP classes and classes that earned me direct college credit from nearby private universities.

Due to this, I left high school with around 14-18 credit hours (I can’t remember the exact amount). I had knocked out a whole semester of college before even starting. I could’ve taken more, but I decided to take early release from high school and worked 30-40 hours a week as well.

 

6. Take all of the credits your tuition allows for.

At community colleges, you typically pay per credit hour.

However, at many universities, you pay a flat fee for your college tuition. So, whether you take 12 credit hours or 18 credit hours, you may be paying nearly the exact same price.

This is why I recommend that students who are paying a flat fee tuition take as many classes as you can. Now, you may want to make sure your classes are balanced because 18 credit hours of demanding courses can take a toll on you. But, this will allow you to take full advantage of high college costs.

If you think you can still earn good grades and do whatever else you do on the side, definitely get full use of the college tuition you are already paying for!

 

7. Apply for aid and scholarships to lower your college costs.

If you want to learn how to save money in college, applying for financial aid and scholarships is one of the most important things to do.

But, according to a study by NerdWallet, for the 2018-2019 school year, students left $2.6 billion of free college money on the table. That was Pell Grant money that students qualify for by filling out the FAFSA, which is easy to fill out and necessary for any financial aid or scholarships.

So, before you start your semester, you should always look into scholarships, grants, and fill out your FAFSA (click here to read my FAFSA tips). Paperwork for the following semester is usually due around spring, so I highly recommend doing this as soon as you can if you are planning on attending college in the fall.

Sadly, many people believe that scholarships are impossible to get. That is just another myth, and it’s probably why so students missed out on so much money last year.

I received around several thousand dollars a year in scholarships to the private university I attended. That helped pay for a majority of my college tuition. The scholarships were easy for me to get because I earned good grades in high school and scored well on tests. I received scholarships to all of the other colleges I applied for as well, just for good grades, so I know you can find scholarships if you do well in school!

And, there are still other ways to find scholarships. You can receive scholarships from private organizations, companies in your town, and more. Do a simple Google search and I am sure you will find many free websites that list possible scholarships.

Tip: Many forget that you sometimes have to turn in a separate financial aid form directly to your college on top of the FAFSA form. Contact your college’s financial aid office and see if there is a separate financial aid form that you should be filling out as well. Don’t forget to do this by the deadline each year!

 

8. Only take out what you actually need in student loans.

One of the top money saving tips for university students that I recommend is to be careful when it comes to taking out student loans!

Many students take out the full amount in student loans that they are approved for even if they only need half of that amount.

This is a HUGE mistake. If you want to learn how to save money in college by reducing your student loan debt, start by only taking out what you truly need. You will need to pay back your student loans one day, and I know many people who regret taking out more than they need.

I know someone who would take out the max amount each semester and buy timeshares, go on expensive vacations, and more. It was a huge waste of money and I’m still not even sure why they thought it was a good idea.

Just think about it – If you take out an extra $2,000 a semester, that means you will most likely take out almost $20,000 over the time period that you are in college.

Do you really want to owe THAT much more in student loans?

 

9. Search for cheaper textbooks to lower your cost of college.

There are a lot of college costs, and buying textbooks is one of them.

Students usually spend anywhere from around $300 to $1,000 on textbooks each semester, depending on the amount of classes they are taking and their major. Just one textbook alone may cost as much as $400!

When I was in college, many of my classes required more than one book and each book was usually around $200 brand new. This meant if I were to buy all of my college textbooks brand new, I probably would have had to spend over $1,000 each semester.

I learned how to save money in college by renting my textbooks or buying them used. Renting was nice because I only paid one fee and never had to worry about what to do with the textbook after the class was done, as I only had to return it. I didn’t have to worry about a new edition coming out and the book being worthless. Buying used textbooks was nice because sometimes I could resell them and make my money back.

 

10. Don’t bring a car to college.

If you don’t need to commute off campus for work, then you may want to think about whether you may be able to realistically get rid of your car. Not everyone in college will need a car with them, and this can be an easy way for how to save money in college.

By not bringing a car, you may be able to eliminate the monthly loan payment, a campus parking permit, fuel, maintenance costs, and more.

 

11. Use your student ID.

Your student ID is good at many places beyond just your college campus. Before you buy anything, I highly recommend seeing if a company offers a student discount.

Your student ID can be used to save money at restaurants, clothing stores, electronics (such as a new laptop!), at the movies, public transportation, and more. You may receive a discount, free items, and more all just by showing your student ID.

After all, you are paying to go to college and you are paying a lot. You might as well reap all of the benefits of paying those high college costs.

 

12. Learn how to correctly use a credit card or don’t have one at all.

Many college students fall into credit card debt, but I don’t want you to be one of them.

Credit cards can seem like a good option when you are living on such a low college budget, but this can lead to thousands of dollars of credit card debt. That will eventually seem impossible to get out of due to significant interest charges that keep building up.

In order to never get into this situation, you should avoid credit cards at all costs if you think that you won’t use them well.

You should think long and hard about whether you should have one or not. Just because other students have a credit card doesn’t mean they know what they’re doing! However, if you think you will be good at using them, then there are many advantages of doing so.

Related post: 6 Credit Card Myths You Need To Know The Truth About

 

13. Get a free checking account.

If you’re paying for a savings or checking account, you should think again. 

Opening a high yield savings account is one of the best ways of how to save money in college because it’s actually growing your savings. But, most people have their money in accounts with low rates. Unfortunately, that means many of you are losing out on some easy cash! 

With Betterment Everyday, you can start earning 2.39% with a balance as low as $0.01.

How does that compare to the national average savings rate? While it’s actually higher than the ones I listed earlier, it’s still a very sad 0.09%. That is a HUGE difference from what Betterment Everyday is offering. If you are only getting 0.09%, then you are losing out on easy, passive money.

Savings accounts at brick and mortar banks are known for having really low interest rates. That’s because they have a much higher overhead – paying for the building, paying the tellers, etc. Betterment Everyday is an online option, which means they have lower costs, then passing the savings on to you. 

Over a 10 year period, that same savings balance with a 2.39% balance would earn you an additional $2,390, whereas a savings account with an interest rate of only 0.09% would earn you a mere $90.

Your money is just as safe in a Betterment Everyday account as it is with a brick and mortar bank. You’re just earning more interest, which is something that everyone wanting to learn how to be rich can take advantage of.

To get started and open a Betterment Everyday account, you will:

  1. Signing up is super easy. Simply click here and sign up.
  2. If you join the waitlist for Betterment Everyday Checking, they will boost your Betterment Everyday Savings Account rate to 2.39%.

See, super easy!

Read more at How To Earn Over 20x The National Savings Rate.

 

14. Find ways to make extra money.

While I wasn’t smart enough to graduate from college without debt, I do know of many amazing people who were able to pay for their college tuition on their own while they were in school. They learned how to save money in college with the tips above, but they also found ways to make money that allowed them to pay their college tuition bill in full each month.

I did work full-time all throughout college. That helped me pay my bills, take out only what I needed in student loans, and go without any credit card debt.

Whether you only have one free hour a day or if you are willing to work 40 to 50 hours a week on top of being in school full-time, there are many options when it comes to earning extra money.

Here are some things you can do to pay for those high college costs:

  • Find a part-time or full-time job.
  • Look for a paid internship.
  • Make money online such as creating a blog, becoming a virtual assistant, etc.
  • Become an Uber or Lyft driver – Spending your spare time driving others around can be a great money maker. Read more about this in my post How To Become An Uber Or Lyft Driver. 
  • Take online surveys. This is something I did in my early 20s. Survey companies I recommend include American Consumer Opinion, Survey Junkie, Swagbucks, Pinecone Research, Opinion Outpost, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
  • Maintain and clean yards. You can make money by mowing lawns, killing/removing weeds, cleaning gutters, raking leaves, and so on.
  • Move furniture and find jobs on Craigslist. Movers can earn a broad range when it comes to hourly pay, but it’s usually somewhere around $50 an hour if you run your own business.
  • If you love animals, then you may want to look into how to make extra money by walking dogs or pet sitting. With this side hustle, you may be going over to your client’s home to check in a few times a day, you may be staying at their house, or the animals may be staying with you. Rover is a great company that you can sign up with in order to become a dog walker and pet sitter. Learn more about this at Rover – A Great Way To Make Money And Play With Animals.
  • Babysit and/or nanny children.
  • Sell your stuff.
  • Read 16 Best Online Jobs For College Students

Learn more at 100+ Ways To Make Extra Money.

Related tip on how to pay off student loans: I highly recommend Credible for student loan refinancing. You can significantly lower the interest rate on your student loans which may help you shave thousands off your student loan bill over time. 

 

15. Sign up for birthday freebies.

Everyone has a birthday, and you may be able to score a lot of free birthday stuff by simply showing your date of birth date on your driver’s license or by signing up for a company’s email club to receive a coupon for your birthday. 

This is a really fun way to learn how to save money in college and it’s easy and free for everyone!

Here are 31 Birthday Freebies You Should Sign Up For.

 

16. Switch to a more affordable cell phone plan.

Most people overpay for their cell phone plan – they can easily cost over $100 per month.

I know that once you find a provider you like, it can be hard to switch. But, once you know how much you can save with another company while still having great service, this is a no brainer.

If you are looking for a more affordable cell phone plan, then check out Republic Wireless. They have monthly cell phone plans for as low as $15 per month.

I have several family members who are now using Republic Wireless and they love it!

Please read Saving Over $2,000 A Year With Republic Wireless Review for more information.

 

17. Make a budget.

Budgets help people manage their money better. It’s that simple.

Budgets are great and one of the best ways for you to learn how to save money in college because having a budget will keep you mindful of your expenses and how much money you have in the bank. With a budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.

You can download a free budget printable here.

Budgets have helped people reach their goals, pay off debt, make more money, retire early, and more. This is one of the college savings tips that will completely shape and change your financial life for the better.

Learn more at The Complete Budgeting Guide: How To Create A Budget That Works.

 

18. Visit the library.

When you’re in college, the library can often feel like your second home (and not always in a good way). But, did you know that your college or local library can also be a great way to have fun without spending any money.

You can check out the latest bestseller, a classic you’ve been wanting to read, or borrow movies, music, and more. There are actually a lot of libraries now who let you borrow things like cameras, GoPros, even telescopes, and more.

This is definitely one of the best ways to save money in college as all you need is a library card.

 

19. Find a roommate.

If you decide to live off campus, then finding a roommate is going to be one of the best ways for how to save money in college.

My husband and I have had roommates in the past. While that’s not really as possible now that we split our time living on a sailboat and an RV, I still recommend that anyone with an extra room in their house think about giving it a try.

If you find a roommate while in college, you can save a good amount of money on housing costs. And, depending on your situation, you might even be able to earn a little side income.

If you are interested in renting out a spare room on a short-term basis (such as for vacations), I highly recommend that you check out Airbnb. I know people who are making thousands of dollars a month by renting out rooms on this website.

Related blog post with more saving tips about this topic: A Complete Guide To Renting A Room For Extra Money.

 

20. Read personal finance books.

This is something you can and should start doing at any age because reading personal finance books can help you in so many ways. Since many schools don’t go in depth on things related to personal finance, books are a great way to improve your financial knowledge.

Personal finance books I recommend reading are:

  • Broke Millennial
  • The Year of Less
  • Meet The Frugalwoods: Achieving Financial Independence Through Simple Living
  • Work Optional: Retire Early the Non-Penny-Pinching Way
  • The Broke and Beautiful Life
  • Real Money Answers for Every Woman
  • You Only Live Once
  • The Recovering Spender: How to Live a Happy, Fulfilled, Debt-Free Life

You can find the whole list of personal finance books I recommend here.

 

21. Other ways you can help your child get through college.

If you’re a parent and you’re reading this, then you may be wondering how you can help your child in college but not go broke yourself.

If you cannot afford to pay for your child’s college costs, or if you decide that you just do not want to, there are many other things you can do to help them. You should also read this You Don’t Have To Go Broke For Your Kid’s Education.

I believe that parents should only fund their child’s college education if the parent is on track for retirement.

This is because there are many ways to pay for college (paying for it with cash, student loans, grants, scholarships, etc.), but there is only one way to fund your retirement.

Remember, you cannot take out a loan for your retirement!

This means you should not wreck your retirement plans to help your children through college. You should analyze your financial situation first and where you are on your track for retirement to see if helping your children through college is possible. If it’s not possible, be realistic with yourself and your child. 

There are many ways to help your children with college costs that don’t involve paying for their college tuition.

You can:

  • Help your child understand personal finance. Helping your child create a budget, use credit cards correctly, and understanding college costs, will help them greatly in life. I recommend reading How To Create a Budget.
  • Support them and help them make a plan. Even if you are not offering financial support for college, you can always support your children in other ways. This doesn’t mean that you have to agree with what they do, rather help them by giving advice and coming up with a solid financial and college plan.
  • Help your child find ways to make money. There are tons of ways to make extra money, and helping your children find ways to do so can help them pay for college and their living expenses.
  • Inform your children about affordable college alternatives. For example, your child may only think they should go to an expensive private university, but it’s important for you to inform them on how to save money in college with more affordable alternatives, such as going to a community college or a state university.
  • Help your child apply for scholarships. There are numerous scholarships that your child may qualify for. Some may require them to write essays, whereas others are based on high school grades. Most take very little effort and are given away by the college itself, this makes applying for them a no brainer!
  • Help your child in other ways. For some reason, there is this myth that helping your child go to college means you need to pay for everything. Instead of paying for their tuition, textbooks, food, dorm, car, and everything else, set limits on the college costs that you’ll pay for. You can help by giving them emotional support, letting them stay in your home while they are in college, helping them find ways to save money for college, helping them cut their college expenses, and more.

What other ways are there to learn how to save money in college? How much student loan debt do you have?

The post 21 Ways You Can Learn How To Save Money In College appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

Posted on January 15, 2021

Most In-Demand Jobs for Bachelor’s Degree Holders – 2021 Edition

Image shows a person wearing business casual clothing and standing against an office wall with her arms crossed. In this study, SmartAsset analyzed data to identify the most in-demand jobs for bachelor's degree holders.

Jobs requiring a bachelor’s degree or higher level of education for entry are often more insulated from unemployment than others. During the COVID-19 pandemic, total unemployment for individuals 25 years and older spiked to 13.1% in April 2020. However, the highest unemployment rate over the past year for bachelor’s degree holders 25 and older was 8.4% in April 2020. As of November 2020, the national unemployment rate was 6.7% – 2.5 percentage points higher than the unemployment rate for bachelor’s degree holders.

Some jobs for bachelor’s degree holders may be even more insulated from economic changes as demand is high. In this study, we investigated the most in-demand jobs for bachelor’s degree holders. We compared a total of 131 occupations across four metrics: percentage change in average earnings from 2018 to 2019, percentage change in employment from 2018 to 2019, projected employment change from 2019 to 2029 and projected percentage change in employment from 2019 to 2029. For details on our data sources or how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAsset’s third annual study on the most in-demand jobs for bachelor’s degree holders. Check out the 2020 rankings here.

Key Findings

  • A list similar to last year. Almost half of the 10 most in-demand jobs for bachelor’s degree holders in 2021 were in our top 10 last year. They are computer and information systems managers, information security analysts, interpreters & translators and medical & health service managers. Of those four occupations, interpreters & translators saw the biggest jump between the two years, moving down five spots from first to sixth.
  • More than 30% growth expected in two occupations. On average across the 131 occupations in our study, employment is expected to grow by 5.0% between 2019 and 2029. But the expected growth is more than six times higher for two occupations – information security analysts and medical & health service managers. The Bureau of Labor Statistics (BLS) predicts employment increases of 31.2% and 31.5% for those two occupations, respectively, between 2019 and 2029.

1. Producers and Directors

The producer and director occupation ranks in the top quartile of our study for all four metrics we considered. Between 2018 and 2019, employment of producers and directors grew by almost 9%, while average earnings rose by about 5%. Moreover, the BLS projects the occupation will continue to grow. According to their estimates, the number of producers and directors will increase by 16,000, or 10.0%, from 2019 to 2029.

2. Computer and Information Systems Managers (tie)

The computer and information systems manager occupation ranks in the top 15% of occupations for three of the four metrics in our study. The occupation saw the ninth-largest percentage increase in employment from 2018 to 2019, growing by 10.87%. Between 2019 and 2029, the BLS expects it will grow by another 10.4%, adding 48,100 workers. Across all 131 occupations, that is the 19th-highest percentage increase and ninth-largest gross increase in workers.

2. Agents and Business Managers of Artists, Performers and Athletes (tie)

The occupation of agent and business manager for artists, performers and athletes ties with computer and information systems manager as the No. 2 in-demand job for bachelor’s degree holders. Between 2018 and 2019, average pay for agents and business managers for artists, performers and athletes grew by almost 7%, the seventh-highest rate across all 131 occupations. Over the same time period, employment grew by 15%, second-highest in our study for this metric.

4. Information Security Analysts

Information security analyst is the fourth most in-demand job for bachelor’s degree holders, moving up from fifth place last year. Though average earnings grew at a comparable pace year-over-year, employment increased sharply in this profession. BLS estimates show that information security analyst employment increased by 16.20%. There were about 108,100 information security analysts in 2018 and almost 125,600 in 2019.

5. Actuaries

Most actuaries work for insurance companies, assessing the financial costs of risk and uncertainty. Between 2018 and 2019, average earnings for actuaries grew by 4.06% – the 15th-highest one-year earnings increase in our study. Additionally, between 2019 and 2029, employment for this occupation is expected to grow by another 17.6%, the seventh-largest percentage change in employment in the study.

6. Interpreters and Translators

According to BLS employment projections, the number of interpreters and translators in the U.S. is expected to increase by 20.0% between 2019 and 2029, a top-five rate in our study. With that projected percentage change, employment will grow by roughly 15,500 workers, a top-30 rate. Most recently, from 2018 to 2019, average earnings for interpreters and translators grew by 3.20%, the 25th-highest rate for this metric in the study.

7. Fundraisers

The occupation of fundraiser ranks in the top third of all 131 occupations for three of the four metrics we considered. Between 2018 and 2019, employment grew by 7.87%, the 19th-highest rate. Looking forward, total employment of fundraisers is expected to grow by 14,400, or 14.3%, over the next 10 years – the 30th-largest gross increase and 11th-highest percentage increase.

8. Medical and Health Service Managers

Medical and health service managers plan and coordinate the business activities of healthcare providers. Average earnings for medical and health service managers are high and growing. In 2018 and 2019, average earnings for workers in the occupation stood at $113,730 and $115,160, respectively. Additionally, across the 131 occupations in our study, BLS expects the profession to have the third-largest gross employment increase (133,200 workers) and highest percentage employment increase (31.5%) over approximately the next decade.

9. Athletic Trainers

Between 2019 and 2029, the occupation of athletic trainer is expected to grow by 16.2%, the ninth-highest rate for this metric in our study. Athletic trainers may also see their earnings continue to grow over time. Between 2018 and 2019, average earnings for athletic trainers increased by 2.56% from about $49,300 to more than $50,500.

10. Compensation, Benefits and Job Analysis Specialists

Compensation, benefits and job analysis specialist rounds out our list of the top 10 most in-demand jobs for bachelor’s degree holders. Average earnings for compensation, benefits and job analysis specialists grew by 2.84% between 2018 and 2019, 33rd-highest in our study. The occupation ranks within the top third of the study for the other three metrics as well. It had the 26th-highest percentage change in employment from 2018 to 2019 (6.88%), the 43rd-greatest projected gross employment change from 2019 to 2029 (7,500) and the 28th-highest projected percentage employment change from 2019 to 2029 (7.9%).

Data and Methodology

To find the most in-demand jobs for bachelor’s degree holders, we looked at data for 131 occupations that the BLS classifies as typically requiring a bachelor’s degree for entry. We compared the 131 occupations across four metrics:

  • Percentage change in average earnings from 2018 to 2019. Data comes from BLS Occupational Employment Statistics and is for May 2018 and May 2019.
  • Percentage change in employment from 2018 to 2019. Data comes from BLS Occupational Employment Statistics and is for May 2018 and May 2019.
  • Projected employment change from 2019 to 2029 (gross figure). This is the projected change in the total number of people employed in an occupation from 2019 to 2029. Data comes from the BLS 2019 Employment Projections.
  • Projected employment change from 2019 to 2029 (percentage change). This is the projected percentage change in the number of people employed in an occupation from 2019 to 2029. Data comes from the BLS 2019 Employment Projections.

We ranked each occupation in every metric, giving a full weighting to all metrics. We then found each occupation’s average ranking and used that to determine a final score. The occupation with the best average ranking received a score of 100 while the occupation with the worst average ranking received a score of 0.

Tips for Making Educated Choices With Your Earnings

  • Invest early. With relatively high income and earnings, many bachelor’s degree workers may be able to have an early retirement. To do this, it is important to take advantage of compound interest by investing early. Take a look at our investment calculator to see how your investment in a savings account can grow over time.
  • Contribute to a 401(k). A 401(k) is an employer-sponsored defined contribution plan in which you divert pre-tax portions of your monthly paycheck into a retirement account. Some employers will also match your 401(k) contributions up to a certain percentage of your salary, meaning that if you chose not to contribute, you are essentially leaving money on the table. Our 401(k) calculator can help you determine what you saved for retirement so far and how much more you may need.
  • Consider professional help. A financial advisor can help you make smarter financial decisions to be in better control of your money. Finding the right financial advisor that doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Questions about our study? Contact us at press@smartasset.com.

Photo credit: Â©iStock.com/martin-dm

The post Most In-Demand Jobs for Bachelor’s Degree Holders – 2021 Edition appeared first on SmartAsset Blog.

Source: smartasset.com

Posted on January 15, 2021

6 Tips for Successfully Managing a Checking Account in College

Heading off to college is exciting. Really exciting. You finally have freedom! You’re out on your own for the very first time, managing your studies, managing your social life and… managing your finances.

Despite being a big part of your newfound independence, personal finance is a subject you probably won’t find on your course schedule. If you didn’t take a personal finance class in high school and never had money lessons from your parents, you may not know how to manage a checking account as a college student.

“College students have very different needs for their checking account than their parents or other adults,” says Tommy Martin, CEO of Clear Path Financial Planning and a finance blogger at TommyMartin.com. If you live in a different city during the school year than you do during winter and summer breaks, for example, you may be after a bank for which location doesn’t matter.

Ok, so how do I manage my checking account in college, you ask? First, don’t get overwhelmed. Learning how to manage money while in college and getting a handle on checking account basics is simpler than you might think (oh, and the skills will serve you for years to come). Second, you can kick off your checking account education with these tips for managing a checking account in college:

1. Compare checking accounts before signing up

While your college life may center around your school campus, you should consider venturing off-campus to pick the right checking account for your lifestyle.

“Students typically sign up with a bank that’s on campus or close to campus,” says Sahil Vakil, a financial planner and president of MYRA Wealth in New Jersey. However, the nearest bank might not be the one that best fits your needs, he adds.

Wondering how to manage money while in college? Be sure to compare checking accounts to find one that meets your needs while you're in school.

Instead of picking a bank based solely on proximity, consider all of your options, including banks with off-campus locations and online-only banks.

Martin agrees, saying that learning how to manage money while in college means considering all of your banking options rather than “automatically enrolling or choosing the official school bank just because it has the school logo on it.” There are other ways to show your school pride, after all.

2. Learn about checking account fees and rewards

Vakil and Martin both say a tip for managing a checking account in college is to consider an account’s fees before signing up. Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time. When you are choosing a checking account in college, consider fees for:

  • Monthly maintenance (essentially keeping your account open)
  • Minimum balance (not maintaining one)
  • ATM usage
  • New checks
  • Wire transfers
  • Online bill pay
  • Replacement debit cards

Martin says a checking account with no minimum balance requirement or minimum number of transactions could be a good fit for students. “It allows them to focus on their education” instead of worrying about incurring penalties, he says. “Even a $5 fee on a checking account with $60 in it can be devastating.”

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Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time.

Martin also suggests finding an account that has a large network of no-fee ATMs located across the country to better manage your checking account as a college student. “Especially if you’re going to a school in a different state, the local bank from home might wind up costing you a lot in terms of ATM fees,” he says. If your parents plan to wire you money, find an account that doesn’t charge incoming wire fees, Martin adds.

While fees should be a focus when you are learning how to manage money while in college, don’t forget about incentives. You may be able to find a checking account that actually helps you grow your balance by paying interest or offering a cash back rewards program.

“If you have to pay for books or supplies, at least you can get some cash back and use it for a free dinner,” Martin says. Discover Cashback Debit, for example, offers 1% cash back on up to $3,000 in debit card purchases each month.1

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3. Track your checking account balance

Luckily, you don’t need to take Banking 101 to figure out your funds, and tech makes tracking your balance and account activity easier than ever. Most banks let you log in to your account online (don’t get distracted in class!), and with a bank’s mobile app you can transfer money to friends, pay bills, deposit checks and check your balance—all while you’re on the go.

Knowing your balance at all times is a tip for managing a checking account in college because it can help you avoid overdrafts and insufficient funds fees. It can also help you forecast your income and expenses to ensure you’ll have enough money to cover future costs. Surprise—that’s budgeting!

There’s no one-size-fits-all budgeting program or system, though. You can go old-school and track your budget on a printed-out budget sheet, or you can go tech-savvy with a budgeting and spending app. “What’s best for you is the one you’re actually going to use,” Martin says.

If you learn how to manage money while in college and make a practice of maintaining your budget, the habit will follow you after graduation.

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“College students have very different needs for their checking account than their parents or other adults.”

– Tommy Martin, CEO of Clear Path Financial Planning and finance blogger

4. Secure your account

One of Vakil’s tips for managing a checking account in college is to make sure your account stays secure. Create a unique account name and password that you use only for your checking account, and never share your credentials.

Vakil says you can also enable two-factor authentication if your bank offers it and you’re looking for another way to improve the management of your checking account as a college student. “This additional layer of protection safeguards your sensitive financial data and strengthens the security of your account by requiring two methods of verifying your identity.”

For example, if you log in to your account from a new device, you may be sent a text message with a code that you’ll need to enter to access your account.

5. Keep an eye out for debit card holds

No matter where you bank, a merchant may place a hold on funds in your checking account when you use your debit card. Generally, a hold is placed for travel-related purchases—such as at rental car companies, hotels and gas stations—and used by merchants to protect against fraud and errors.

To manage a checking account as a college student, keep an eye out for debit card holds, especially while traveling.

“Holds on a debit card can make it tricky for you to manage your finances,” Vakil says. For example, “when you rent a car, the car rental company might put a $500 hold on your account. If the balance in your account was $550, now you can only use another $50.”

Being aware of holds can be particularly important if you are managing a checking account as a college student and tend to have a low account balance.

If a merchant will be placing a hold, it will generally post a sign to notify customers. The hold will typically be removed after the funds are transferred to the merchant from your financial institution, typically within three to four days.

Knowing when a hold will be placed, the amount of the hold and how much money you have in your checking account can help you manage your checking account as a college student by avoiding overdrafts and missed bill payments due to insufficient funds.

6. Don’t let one mistake throw you off track

If you can learn how to manage a checking account as a college student, and more generally, how to manage money while in college, you can lay the groundwork for a solid financial future. Checking account mistakes may occasionally happen (oops, I didn’t budget enough for that spring break trip), but don’t let them discourage you to the point of apathy. Instead, try to continually expand your knowledge and practice healthy financial habits.

1 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

The post 6 Tips for Successfully Managing a Checking Account in College appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Posted on January 15, 2021

How to Handle a Pay Cut: Budgeting in Uncertain Times

A pay cut, whether big or small, can catch you off guard—and throw your finances into disarray. While a salary cut is different than a layoff, it can leave you feeling just as uncertain.

How do you deal with a pay cut and deal with this uncertainty?

There are strategies to help you navigate both the emotional and financial challenges of this situation. One key element? A budget. Whether you need to create a budget from scratch or adjust the budget you already have, doing so can help you get back on your feet and set yourself up for success.

Here’s a rundown of budgeting tips to survive a pay cut to keep your finances intact:

Ask your employer for the parameters of the income reduction or salary cut

First, keep in mind that a pay cut typically isn’t personal. According to Scott Bishop, an executive vice president of financial planning at a wealth management firm, businesses often cut salaries to preserve their cash reserves while they stabilize their cash flow or weather some larger economic impact, like the coronavirus pandemic.

A salary cut can leave you feeling just as uncertain as a layoff. Fortunately, you can get through it with the right strategy.

Secondly, make sure you understand the full scope of the salary cut. Bishop suggests you ask your employer questions like:

  • What is the amount of pay being cut?
  • Why is pay being cut?
  • When will the reduction begin, and how long will it last?
  • Will any of the following be affected?
    • 401(k) match
    • Healthcare or insurance costs
    • Employer-sponsored training or continuing education opportunities
    • Hours or job responsibilities
  • What are the long-term plans to improve the company’s financial situation?

Once you’ve painted the full scope of what and why, you can determine how to handle the pay cut.

“For some people who are big savers, it might not be a big deal,” Bishop says. “But for some people who live paycheck to paycheck, it’s going to be significant.”

It's easier to determine how to handle a pay cut if you understand the full scope of the cut.

Settle any anxieties that might come with a salary cut

If you are dealing with financial stress, try settling your mind and emotions so you can make decisions with a clear head.

“The emotional and mental toll can be one of the hardest parts,” says Lindsay Dell Cook, president and founder of Budget Babble LLC, which provides personal finance and small business financial counseling. “It gets even harder if there are others depending on your income who are also financially stressed.”

When sharing the news with family members who may also be impacted, Cook suggests the following:

  • Find the right time. Pick a time of day during which everyone will have the highest mental capacity for the conversation. “For instance, I am a morning person, so if my husband told me at bedtime about a pay cut, I would have a much harder time processing that information,” Cook says.
  • Frame it as a brainstorming session. Bring ideas of what you can do to handle the pay cut, such as a list of expenses you can cut or a plan for how you can make extra income.
  • Empathize with the other person. “Reduced income is not easy for anyone. Everyone responds to financial anxiety differently,” Cook says.

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“If you’re unable to maintain your previous level of saving after a pay cut, try to save at a smaller scale for goals like retirement and your emergency fund.”

– Scott Bishop, executive vice president of financial planning at a wealth management firm

Create or adjust your budget to handle a pay cut

Once you understand the salary cut and have informed your family or roommates, it’s time to crunch the numbers. That’s the first step to figuring out how to save money after a pay cut.

If you don’t have a budget, find a budgeting system that fits your needs. Learning how to effectively budget takes time and practice, so be patient with yourself if you’re new to this. Cook suggests reading up on how to create a budget.

One system to consider is the 50-20-30 budget rule, which has you break your spending into three simple categories. If you prefer the aid of technology when determining how to handle a pay cut, there are many budgeting and spending apps that can help you manage your money.

If you're wondering how to save money after a pay cut, start by creating a new plan or modifying your existing budget.

Whether you’re handling a pay cut by creating a new plan or modifying an existing budget, Bishop suggests taking the following steps:

  1. Add up your income. Combine your new salary with your partner’s pay, and factor in any additional income streams like from dividends or savings account interest. Tally up the total.
  2. List your expenses. Be sure to include essential expenses (e.g., housing, food, clothing, transportation) and nonessential expenses (e.g., entertainment, takeout, hobbies).
    • Look through your bank statement online and your past receipts so all expenses are included.
    • Account for infrequent expenses such as gifts, car maintenance or home repairs.
  3. Track the amount you save. Note any regular savings contributions you make, such as to an emergency fund or retirement account.
  4. Get your partner’s buy-in. What needs do they have, and what is nonnegotiable in the budget for each of you? 

Cut expenses with budgeting tips to survive a pay cut

If you’ve crunched the numbers and found that your expenses add up to more than your new income, you’ll need to find ways to cut back. Here are some tips on trimming your spending to survive a salary cut:

  • Cut back on takeout meals and stick to a strict grocery list or food budget, Cook suggests.
  • Avoid large discretionary purchases like a car during the duration of your pay cut, Bishop says.
  • Negotiate with your utility companies or ask if they’re providing forbearance options, Bankrate suggests. You can also ask your car insurance provider if it has additional savings for customers who are driving less, according to Bankrate.

If you think you might fall behind on rent or mortgage payments as you’re handling a pay cut, both Cook and Bishop agree that early, proactive communication is key. Be honest with your landlord or mortgage company. “Don’t wait until you’re past due,” Bishop says.

The same applies for other financial obligations, such as your credit card bill. You’ll likely find those companies are willing to work with you through the rough patch.

One budgeting tip to survive a pay cut is to look into municipal assistance programs in your area.

Cook also suggests you look into municipal assistance programs as a budgeting tip to survive a pay cut. “Many cities have established rental assistance funds to help taxpayers meet their obligations during the pandemic,” she says.

Continue to save money after a pay cut

As you consider how to cut costs, take time to think about your long-term savings goals and how to save money after a pay cut. By cutting discretionary spending through your new budget—what Bishop calls “cutting the fat”—you may have freed up income to maintain your good saving habits during this time. He says it’s important to do that before slowing down on savings.

If you’re unable to maintain your previous level of saving after a pay cut, Bishop suggests you try to save at a smaller scale for goals like retirement and your emergency fund.

As you work to save money after a pay cut, Cook recommends setting up automatic transfers to your savings account every payday based on the amount you’re able to put towards savings in your new budget.

“If your savings account is at the same bank as your checking account, you can transfer those funds fairly easily,” she says. “So the worst-case scenario is that you put too much money in savings and have to bring some back to checking. The hope, however, is that some or all of those funds transferred to savings remain there since that money is no longer in your checking account just waiting to be spent.”

Seek extra income sources after a salary cut

You should explore additional sources of income if you need more cash to cover essential expenses or if you’re looking for ways to save money after a pay cut.

Determine if you’re eligible for benefits based on the reason for your pay cut. Cook recommends applying for unemployment if you think you may qualify. For example, some workers who experienced pay cuts due to the coronavirus pandemic were eligible for unemployment benefits. The details vary by state, so visit your state’s unemployment insurance program website to learn what benefits may apply to you.

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If you or your partner have some extra time on your hands, you can consider bringing in income through a side hustle to help you handle your pay cut. Bishop suggests using free or low-cost online video tutorials to boost your existing skills to make your side hustle more effective.

Cook also recommends getting creative. “Are there things you could sell to make some extra cash?” she says.

If you are unable to find additional sources of income, but you have an emergency fund, consider whether you should dip into that. “Your savings are there for a reason, and sometimes you need to use it,” Cook says. “That is okay.”

Stick to your updated budget to navigate how to handle a pay cut

Making your budget part of your daily routine is a budgeting tip to survive a pay cut, and it will help you save money after a pay cut.

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“Build rewards into your budget, such as ordering out every other week if you successfully saved money after your pay cut.”

– Scott Bishop, executive vice president of financial planning at a wealth management firm

“If you’re checking it daily, there are no surprises,” Cook says. You can do this by logging into your bank account and making sure your spending and expenses align with your digital or written budget document.

“If you see that your spending is high, your mind will typically start thinking through [future] transactions more thoroughly to vet if those expenses are really necessary,” Cook says.

Don’t forget the fun side of accountability: rewards for meeting your goals. Build rewards into your budget, Bishop says, such as ordering out every other week if you successfully saved money after your pay cut.

Lastly, don’t try to go it alone. Enlist others in your budgeting journey, Cook suggests. Make up a monthly challenge to cut spending from a specific category in your new budget and ask your partner or a friend to do it with you. For example, see if you and the other participants can go a full month without buying clothes or ordering takeout. Compare notes at the end of the month and see how much you’ve saved.

Another idea? Try connecting with a budget-minded community on social media to get inspired.

You're likely not the only person wondering how to save money after a pay cut, so try to enlist the help of others as you work through it.

Take these steps after the salary cut is over

Once you’ve handled the pay cut and your regular pay is restored, don’t give up on your newfound budgeting discipline. Instead, focus on building up emergency savings before you go back to your normal spending.

Bishop recommends starting with enough savings to cover three to six months of expenses. “If you spend $3,000 a month, that means you need to have $9,000 to $18,000 saved.”

This might also be the time to revisit your budget and build a more extensive financial plan with a CPA or financial advisor to account for all of your future goals. Bishop says that these can include a target retirement date and lifestyle; your estate planning, such as a will, trust and power of attorney; saving for a child’s college; and purchasing a home.

If your salary cut comes to an end, don't give up on your newfound budgeting discipline.

Bishop says reminding yourself why you’re budgeting and focusing on your financial goals can be similar to motivating yourself to stay physically fit. Goal-based motivation can keep you accountable.

Remember: You can survive a salary cut

Handling a pay cut is never easy, but you can get through this time. While you’re in the thick of it, focus on budgeting tips to survive a pay cut and staying positive. Seek help from others and follow up with your employer to make sure you are aware of any changing details regarding the pay cut.

Most of all, try to keep a long-term outlook. “Remember that it will not always be this way,” Cook says.

If you’re considering whether or not to tap into your savings to handle a pay cut, read on to determine when to use your emergency fund.

The post How to Handle a Pay Cut: Budgeting in Uncertain Times appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Posted on January 15, 2021

The Difference Between Credit Cards and Debit Cards: Explained​​​

Have you ever wondered about the uses of a credit card vs. a debit card? It’s likely you have both types of cards in your wallet at this very moment, and you’re given the option to choose one of them—sometimes in a matter of seconds—every time you make a purchase. Still, you have lingering uncertainty about whether you’re making the best choice… and that same question pops into the back of your mind every time you buy something: “Should I use a credit card or debit card?”

Being uncertain about the difference between a credit card and debit card or the best time to use either is a common dilemma. The better you understand the benefits of each—beyond the fact they offer a way to access money without having to carry cash or a checkbook around—the savvier a spender you’ll become.

Managing revolving credit vs. a bank account balance

Credit cards and debit cards both offer a convenient way to pay for things, but they work quite differently behind the scenes. As a result, they each appeal to different types of consumers, says Lou Haverty, financial analyst and founder of Financial Analyst Insider.

A credit card is a form of revolving credit. When you spend with your credit card you are borrowing, and you pay interest if you carry a balance, Haverty says. A debit card, by contrast, is linked to a bank account—usually a checking account—and the money is withdrawn as soon as you make the transaction, typically using a PIN.

A credit card gives you access to a revolving line of credit, while a debit card draws from your account balance--that's a major difference between credit cards and debit cards.

A difference between credit cards and debit cards is that with a credit card, the exact amount you can spend depends on your credit limit and the balance you are currently carrying on the card, Haverty explains. If you have a $1,000 credit limit and a $600 balance from previous purchases, you can continue to charge an additional $400. If you’ve reached your credit limit, you won’t be able to use the card for more purchases until you pay off at least part of the balance. You owe a minimum payment each month.

When considering credit card vs. debit card, know that most credit cards carry an interest rate, expressed as an annual percentage rate (APR), which is essentially what you pay to borrow. You’ll have to pay interest on that $600 balance mentioned above if you carry the balance from month to month. “Credit cards require a responsible approach to your personal finances because you have the ability to spend beyond what you might have as cash in your bank account,” Haverty says.

A difference between credit cards and debit cards is that with a debit card, funds are pulled directly from the balance you have in the checking account to which the card is linked. In a traditional account setup, you can’t spend more than what you have in the account, which helps reduce the chance of racking up debt. If your account offers overdraft protection, you may be able to spend more than your account balance by leveraging funds from a different, linked bank account.

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“Credit cards require a responsible approach to your personal finances because you have the ability to spend beyond what you might have as cash in your bank account.”

– Lou Haverty, financial analyst and founder of Financial Analyst Insider

Knowing the requirements for each card

Another key difference between a credit card and a debit card is the criteria you’ll need to meet for each. “Getting approved for a credit card is usually dependent on your personal credit score. The higher your credit score, the more likely you are to be approved,” Haverty says. “If you have a lower credit score, you may still get approved, but you might have a lower credit limit.”

Patricia Stallworth, certified financial planner and money coach, says that in addition to your credit history, factors such as your employment status could play a role in credit card approval.

When analyzing credit cards vs. debit cards, consider that a debit card is typically issued automatically when you open a checking account. This process usually requires some personal information, such as a Social Security number, driver’s license, employment information and valid email address. A deposit may also be needed to fund the account and complete the application. Then stay tuned for your debit card in the mail!

When should I use credit vs. debit?

While it’s easy to have credit card vs. debit card on the mind, there are some scenarios in which using either a debit card or a credit card could fit the bill, depending on your financial needs and goals. Use the outline below as a guide for when the question of “When should I use credit vs. debit?” comes up:

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Use your debit card if…

  • You’re new to using a card to make purchases. Until you know you have the discipline to control your spending with a card, a debit card could be the way to go, as it’s a great tool for ensuring you don’t charge more than you can afford. “Debit cards are great for everyday purchases that you have budgeted for because the money comes directly out of your account,” Stallworth says.
  • You want cash back without the fees. If your debit card is linked to a checking account that offers rewards, Stallworth says you may have rewards-earning potential without the hassle of fees. “While there is generally no cost to participate in debit card rewards programs, the costs and fees may be higher with some credit card programs,” she adds. For instance, Discover Cashback Debit charges no fees1 and allows you to earn 1% cash back on up to $3,000 in debit card purchases each month.2

Why should credit cards
have all the fun?

Now you can earn cash back with your debit card.

Learn More

Discover Bank, Member FDIC

  • You have debt you can’t pay off. When should I use credit vs. debit? “If you’re struggling to manage or get out of debt, a debit card should be your ‘go-to card,’” Stallworth says. “You can’t get out of debt if you keep charging.”
  • You want cash at the register. If you still like to have cash in your wallet, consider this difference between credit cards and debit cards: Most retail stores will allow you to get cash at the register when you pay with your debit card. “A credit card will most likely charge you a cash advance fee if that feature is available,” Haverty says.

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“Debit cards are great for everyday purchases that you have budgeted for because the money comes directly out of your account.”

– Patricia Stallworth, certified financial planner and money coach

Use your credit card if…

  • You want product coverage. Some credit cards come with purchase protection, which makes them a great option for online and large purchases, Stallworth says. “If I have a dispute with a merchant, I have more leverage with a large credit card company behind me.”
  • You’re trying to build (or rebuild) your credit. “You will need a single credit card with a small limit that you pay off in full each month to build a credit history,” Haverty says. A key difference between credit cards and debit cards is that debit card usage can’t help you build a credit history. A debit card can help you build strong budgeting skills so you’re better prepared to transition to a credit card.
  • You want to earn travel rewards. If you’re debating credit card vs. debit card and are focused on travel, consider that credit card rewards programs may offer robust rewards in a specific category, like travel, Stallworth says. While it’s always important to read the fine print (so you’re not paying more than you intend in fees or interest rate charges just to get rewards), you could find a credit card that offers opportunities to earn free flights and pay less for checked baggage—just for using the card regularly.

If you're debating credit card vs. debit card and are focused on travel, consider a credit card rewards program for travel.

How to use both cards to maximize your finances

Now that you understand which circumstances might be best to use a credit card vs. debit card, you can make the point-of-purchase decision of “When should I use credit vs. debit?” a little easier. It really depends on the goals you have laid out for your personal finances.

Get comfortable using both financial tools for their respective features. But be sure to stick to your budget, and don’t accidentally overspend from your bank account or charge more than you can afford to pay in full by your credit card’s monthly due date. When you learn to confidently use both of these cards to your advantage, you can enjoy all the various perks and protections—times two!

1 Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.

2 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

The post The Difference Between Credit Cards and Debit Cards: Explained​​​ appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Posted on January 8, 2021

14 Best Bank Promotions of January 2021 (Get Up to $700 Cash)

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So, you’re looking for a new bank account.

You’ve got several factors to consider — ATM access, interest rates, monthly fees, minimum balances, mobile app reviews, and more.

Another factor to consider: bank promotions. These are cash bonuses you can earn when opening a new checking or savings account with a bank or credit union during the promotion window, meeting any specific criteria and keeping the account open at least long enough to earn the extra cash.

While a savings or checking bonus shouldn’t be your top reason to choose a bank, don’t rule it out entirely. After all, wouldn’t it be nice to fund your shiny new account with some extra cash?

Many banks offer such sign-up bonuses, but often, these bonuses aren’t advertised, meaning finding the best bank account bonuses can be tricky. That’s why we did some digging for you and found some hefty cash offers.

Best Bank Promotions of January 2021

We’ve researched the best cash bonuses available this month so you don’t have to. Below, you’ll find our favorite checking and savings account bonuses.

Keep an eye on what it takes to qualify, as well as any limitations. Direct deposit and minimum balances are commonly factors in securing these bonuses. Also pay attention to any monthly fees the account might carry; over time, these could weigh out the actual cash bonus. Otherwise, happy bank bonus shopping!

1. Aspiration Account: $100

Bonus amount: $100

How to get the bonus: To earn your $100, here’s all you need to do: Open your Aspiration account and deposit at least $10. Aspiration will send you a debit card associated with the account. Use the Aspiration debit card to make at least $1,000 of cumulative transactions within the first 60 days of opening your account. There’s no need to spend extra money — just use your card to buy groceries and pay your utilities.

Where to sign up: Enter your email address here, and link your bank account.

When you’ll get the bonus: Allow up to 120 calendar days from account opening to receive the bonus; you must have completed the requirements within the first 60 days.

The fine print: With Aspiration, your money is FDIC insured and under a military-grade encryption. The account offers up to 1.00% APY on savings and allows fee-free withdrawals at more than 55,000 ATMs. There are no hidden fees with Aspiration (monthly fees are on a “Pay What is Fair” policy, and that can be zero every month!), and you’ll earn cash back when you spend at socially conscious businesses.

No offer expiration.

2. TD Bank Beyond Checking Account: $300

Bonus amount: $300

How to get the bonus: Open a new TD Beyond Checking account. You must receive a total of $2,500 or more via direct deposit within 60 days of opening your new account.

Where to sign up: Visit this TD Checking page. Click the orange “open account” button, and follow the instructions to open a TD Beyond Checking account.

When you’ll get the bonus: The $300 bonus will be deposited into your account within 140 days of opening.

The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. However, only open the account if you regularly get sizable monthly deposits or can maintain a healthy minimum balance. That’s because the account charges a monthly maintenance fee, but TD will waive the fee if you receive monthly direct deposits of $5,000, keep a minimum daily balance of $2,500 or maintain a combined balance of $25,000 across all your TD bank accounts.

TD fees — and the bank’s capacity for waiving them — extend to ATMs. You won’t face fees for making withdrawals at TD’s own ATMs, and it’ll reimburse all fees for withdrawing at non-TD ATMs as long as you keep your daily balance at $2,500 or more.

No offer expiration.

3. TD Bank Convenience Checking Account: $150

Bonus amount: $150

How to get the bonus: Open a new TD Convenience Checking account. You must receive a total of $500 or more via direct deposit within 60 days of opening your new account.

Where to sign up: Visit this TD Checking page. Click the orange “open account” button, and follow the instructions to open a TD Beyond Checking account.

When you’ll get the bonus: The $150 bonus will be deposited into your account within 140 days of opening.

The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. Unlike the TD Bank Beyond Checking account, this checking account option is easier for financial beginners to manage. You only need to maintain a minimum balance of $100 to have the monthly maintenance fee waived. And if you’re between the age of 17 and 23, there are no minimum balance requirements and no monthly maintenance fee.

However, the Convenience Checking account does not earn interest; the Beyond Checking account does.

No offer expiration.

4. Bank of America Advantage Banking Account: $100

Bonus amount: $100

How to get the bonus: Open a new Bank of American Advantage Banking account online using the offer code DOC100CIS. You must then set up and receive two qualifying direct deposits, each totaling $250 or more, within 90 days of opening the new account. This offer is only available to new Bank of America personal checking account customers.

Where to sign up: Visit the offer page and use the offer code DOC100CIS when opening the account.

When you’ll get the bonus: Bank of America promises to “attempt” to deposit the bonus into the account within 60 days of satisfying all requirements. However, while the “attempt” language may seem suspect, we could not find traces of reviews citing unpaid bonuses.

The fine print: A qualifying direct deposit means the direct deposit must be regular monthly income, whether through salary, pension or Social Security benefits. Deposits through wire transfer, apps like Venmo or ATM transfers will not qualify.

Advantage Banking accounts come in three varieties: SafeBalance, Plus and Relationship. All three carry monthly maintenance fees that can be waived:

  • To waive the SafeBalance monthly maintenance fee of $4.95, enroll in Preferred Rewards.
  • To waive the Plus monthly maintenance fee of $12, receive a qualifying minimum direct deposit, maintain minimum daily balance requirements or enroll in Preferred Rewards.
  • To waive the Relationship monthly maintenance fee of $25, maintain the minimum combined balance in all linked accounts or enroll in Preferred Rewards.

Offer expires June 30, 2021.

A woman submits a mobile check into her checking account.

5. Associated Bank Access Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Access Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Access Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $25, charges $4 a month if you require paper statements and does not earn interest.

Offer expires May 31, 2021.

6. Associated Bank Balanced Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Balanced Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Balanced Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $100 and does not earn interest.

Offer expires May 31, 2021.

7. Associated Bank Choice Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Choice Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Choice Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $100. This account is the only Associated option that earns interest and offers complimentary checks.

Offer expires May 31, 2021.

8. Chase Total Checking Account: $200

Bonus amount: $200

How to get the bonus: Open a new Chase Total Checking account as a new Chase customer. Within 90 days of opening the account, have a qualifying direct deposit made into the account from your employer or the government.

Where to sign up: Visit this page on Chase’s website to sign up for the account and receive the $200 bonus. You can also open the account at a Chase location near you.

When you’ll get the bonus: Chase will deposit the $200 bonus into your account within 10 business days after you meet the criteria. This is the fastest turnaround of any banking bonus included on this list.

The fine print: Direct deposits from person-to-person payments do not qualify for the sake of this bonus. The Total Checking account carries a $12 monthly service fee, but you can have it waived if you receive direct deposits each month totaling $500 or more, keep a minimum balance in the account at the start of each day of at least $1,500, or keep a minimum balance across all your Chase accounts at the start of each day of at least $5,000.

If you close the account within six months of opening, Chase will deduct the bonus amount at closing.

Offer expires April 14, 2021.

9. Chase Savings Account: $150

Bonus amount: $150

How to get the bonus: Open a new Chase Savings account as a new Chase customer. Within 20 days of opening the account, deposit at least $10,000 in new money and then maintain a balance of at least $10,000 for 90 days.

Where to sign up: Visit this page on Chase’s website to sign up for the account and receive the $150 bonus. You can also open the account at a Chase location near you.

When you’ll get the bonus: Chase will deposit the $150 bonus into your account within 10 business days after you meet the criteria. This is the fastest turnaround of any banking bonus included on this list.

The fine print: The new money deposited into the account cannot be $10,000 that you already hold in another Chase account. The Chase Savings account carries a $5 monthly service fee, but you can have it waived if you keep a daily balance of at least $300 at the start of each day, have $25 or more in Autosave, have an associated Chase College Checking account for Overdraft Protection, have an account owner who is 18 or younger or link one of several Chase checking accounts.

If you close the account within six months of opening, Chase will deduct the bonus amount at closing.

Offer expires April 14, 2021.

A mother works on a laptop with her two daughters next to her.

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10. Citibank Basic Banking Package: $200

Bonus amount: $200

How to get the bonus: Open a new checking account in the Basic Banking Package. Within 30 days, deposit $5,000 in funds that are new to Citibank. Maintain a minimum balance of $5,000 for 60 days in a row.

Where to sign up: Click “apply now” for the Basic Banking Package on this page to have the bonus applied.

When you’ll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.

The fine print: The deposited funds must be new to Citibank, meaning they can’t come from another Citibank account. Citibank charges a $12 monthly service fee, but you can have it waived in one of two ways:

  • Make a qualifying direct deposit and a qualifying bill payment during the statement period.
  • Maintained a combined average monthly balance of $1,500 in all linked accounts.

Citibank also waives the fee if you are 62 or older. Sometimes, it pays to be living in those golden years.

Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.

Offer expires January 5, 2021.

11. Citibank Account Package: $400

Bonus amount: $400

How to get the bonus: Open a new checking account in the Account Package. Within 30 days, deposit $15,000 in funds that are new to Citibank. Maintain a minimum balance of $15,000 for 60 days in a row.

Where to sign up: Click “apply now” for the Account Package on this page to have the bonus applied.

When you’ll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.

The fine print: The deposited funds must be new to Citibank, meaning they can’t come from another Citibank account. A savings account is required with this package. Citibank charges a $25 monthly service fee, but you can have it waived if you maintain a combined monthly average of $10,000 or more in all linked accounts.

Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.

Offer expires January 5, 2021.

12. Citibank Priority Account Package: $700

Bonus amount: $700

How to get the bonus: Open a new checking account in the Priority Account Package. Within 30 days, deposit $50,000 in funds that are new to Citibank. Maintain a minimum balance of $50,000 for 60 days in a row.

Where to sign up: Click “apply now” for the Account Package on this page to have the bonus applied.

When you’ll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.

The fine print: The deposited funds must be new to Citibank, meaning they can’t come from another Citibank account. A savings account is required with this package. Citibank charges a $30 monthly service fee, but you can have it waived if you maintain a combined monthly average of $50,000 or more in all linked accounts.

Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.

Offer expires January 5, 2021.

13. HSBC Premier Checking Account: Up to $600

Bonus amount: 3% cash bonus up to $600

How to get the bonus: Open a new HSBC Premier Checking account, then set up qualifying direct deposits into the account once per calendar month for six consecutive months. You will then receive a 3% cash bonus based on the amount of your qualifying direct deposits, with a max of $100 a month for six months.

Where to sign up: Use this offer page to sign up for the offer. Click “apply now” on the HSBC Premier Checking account.

When you’ll get the bonus: You will receive your 3% cash bonus in your account approximately eight weeks after completing each month’s qualifying activities.

The fine print: To get the bonus, you cannot have had an HSBC account from September 30, 2017 through September 30, 2020. You must also have been a U.S. resident for at least two years and must be 18 or older.

HSBC applies a monthly maintenance fee of $50 unless you maintain a balance of $75,000 across your accounts, receive monthly recurring deposits of $5,000 or more or have an HSBC US residential loan with an original loan amount of at least $500,000.

Offer expires January 7, 2021.

14. HSBC Advance Checking Account: Up to $240

Bonus amount: 3% cash bonus up to $240

How to get the bonus: Open a new HSBC Advance Checking account, then set up qualifying direct deposits into the account once per calendar months for six consecutive months. You will then receive a 3% cash bonus based on the amount of your qualifying direct deposits, with a max of $40 a month for six months.

Where to sign up: Use this offer page to sign up for the offer. Click “apply now” on the HSBC Advance Checking account.

When you’ll get the bonus: You will receive your 3% cash bonus in your account approximately eight weeks after completing each month’s qualifying activities.

The fine print: To get the bonus, you cannot have had an HSBC account from September 30, 2017 through September 30, 2020. You must also have been a U.S. resident for at least two years and must be 18 or older.

HSBC applies a monthly maintenance fee of $50 unless you maintain a balance of $75,000 across your accounts, receive monthly recurring deposits of $5,000 or more or have an HSBC US residential loan with an original loan amount of at least $500,000.

Offer expires January 7, 2021.

A father works from home while his two son's wrestle on a couch.

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How to Search for the Best Bank Offers and Promotions on Your Own

In the spirit of not listing approximately 193 bank promotions, we kept this list short and sweet — only highlighting the best bank promotions for checking and savings accounts.

But maybe you’re interested in banking with your local credit union, opening up a small business checking account or finding the perfect investment account? There are often bonus offers attached to these account openings, too.

The banks don’t always make finding these promotions easy, so here are a few tips to help you get your hands on that cash bonus.

  • Check the bank’s website first. Sometimes it’ll advertise its promotions right there. This is rare, but it’s worth a quick check — it could save you a ton of time.
  • If you don’t have any luck, reach out to the bank’s customer service team through phone, email or chat. Let them know you’re shopping for a new account, and you’d like to know if it’s running any promotions. More often than not, the nice representative will send you a special link.
  • If this doesn’t work, turn to your trusty friend Google. Look for the best bank promotions. Because you’ll likely dig up some offers from third-party sites, you’ll want to take a few minutes to make sure the offer:
    • Hasn’t expired.
    • Is legitimate. Make sure the bank is FDIC-insured and has a positive Better Business Bureau rating. You can even read some online reviews.
    • Doesn’t require outrageous qualifying activities. For example, it might not be realistic for you to maintain an average daily balance of $50,000 and carry out 60 qualifying debit card purchases before the end of your first 30-day statement cycle.
  • You can also reach out to your family, friends and social network to crowdsource bank recommendations. Sometimes banks have impressive referral programs, so both you and your friend could benefit from you signing up.

Overall, be smart. Don’t let that promise of an account bonus blind you. Also, read the fine print so you don’t get stuck paying high monthly fees, interest rates or closing penalties.

Will Opening a Bank Account Hurt Your Credit Score?

If you’re worried that opening a new bank account or closing an old one will hurt your credit score, don’t be. Your bank accounts are not included in your credit report and therefore have no effect on your score, unless you have an outstanding negative balance that the bank turns over to a collection agency.

Sometimes when you go to open a new bank account, banks will do a soft credit check. However, that won’t affect your score.

Now, go enjoy your fresh new bank account and that nice cash bonus you’re about to pocket. Add it to your savings account, put it toward student loan payments or, heck, treat yourself!

Editorial Disclosure: This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

Posted on January 8, 2021

5 Things Keeping You From a Life of Financial Independence

Couple worried about paying bills

Financial independence can mean different things to everyone. A 2013 survey from Capital One 360 found that 44 percent of American adults feel that financial independence means not having any debt, 26 percent said it means having an emergency savings fund, and 10 percent link financial independence with being able to retire early.

I define financial independence as the time in life when my assets produce enough income to cover a comfortable lifestyle. At that point, working a day job will be optional.

But what about the rest of America? How would you define financial independence? If freedom from debt is what you’re seeking, here are five areas that could be holding you back.

1. Not having clear, financial goals

If you’re not planning for financial independence, chances are you won’t reach it. The future is full of unknowns, but having an idea of when you’d like to achieve financial freedom should be your first step.

Do you want to retire before you turn 65? Do you want to travel the world with your spouse once you reach early retirement? Both goals will require a significant amount of cash stashed away, so it’s important to start saving ASAP to make those dreams come true. (See also: 15 Secrets of People Who Retire Early)

2. Not saving enough

It’s important to identify how much you’re currently saving, and how much you need to save in order to retire when you want to, or reach another major financial goal. Using a calculator like Networthify can help you play with various money-saving scenarios and make realistic projections about retirement.

Another way to make saving money easier is to automate it. Setting up an automatic weekly or monthly transfer from your checking account into your savings account will take the extra task off your already full plate. Even if it’s as little as $5 a week, it’s enough to start building that nest egg. (See also: 5 MicroSaving Tools to Help You Start Saving Now)

3. Not paying off consumer debt

If you’re carrying a credit card balance each month, financing cars, or just paying the minimum on your student loans, compound interest is working against you. Creating an aggressive plan to pay off debt quickly should be a number one priority for anyone who is serious about achieving financial independence. Otherwise, your money is working for your creditors, not you.

If you prefer to tackle credit card debt first, there are several debt management methods you can try, including the Debt Snowball Method and the Debt Avalanche Method. The Debt Snowball Method has you paying off the card with the smallest balance first, working your way up to the card with the largest balance. The Debt Avalanche Method is similar, but here you would pay more than the monthly minimum on the card with the highest interest rate first, working towards paying off the card with the lowest interest rate. Both are highly effective methods, and choosing one really just depends on your preference.

4. Giving into lifestyle creep

A high income does not automatically make you wealthy. As you move up in your career, the temptation to upgrade your lifestyle to match your income will be ever-present. After all, you work hard, so why not reward yourself with the latest gadgets and toys?

However, if you continue to spend and live modestly, you can put more money away for travel or retirement with every pay raise you earn. Financial freedom will be just around the corner if you resist that temptation to upgrade your home, car, and electronics to match your income bracket. (See also: 9 Ways to Reverse Lifestyle Creep)

5. Being driven by FOMO

Fear Of Missing Out, aka FOMO, is the modern version of keeping up with the Joneses. Except now you have access to the Joneses’ social media platforms, and they go on all kinds of fun adventures. Social media is a great tool for keeping in touch, but it can also make you want to spend all your money on lavish vacations, clothes, spa treatments, and other extravagent things. Resist that urge. And block the Joneses on social media if needed. (See also: Are You Letting FOMO Ruin Your Finances?)

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How would you define financial independence? If freedom from debt is what you're seeking, here are five areas that could be holding you back. | #budgeting #debt #savingmoney

This article is from Toni Husbands of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:
  • 5 Money Moves to Make Before You Turn 40
  • The 10 Commandments of Reaching Financial Freedom
  • 16 Small Steps You Can Take Now to Improve Your Finances
  • The Pros and Cons of Paying Off Your Debt Early
  • How a Credit Card Can Actually Help You Get Out of Debt


Source: feeds.killeraces.com

Posted on January 8, 2021

How to Save Money: Simple, Expert Tips for Big Savings

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Take a moment. Think about being your best self — living your best life.

What do you really want to do with your life? Raise a happy family? Travel the world? Buy a nice house? Start your own business?

Reality check: To accomplish any of those things, you’re going to need to know how to save money.

Unfortunately, Americans are bad at saving money, and we’re getting worse. Thanks to rising costs, stagnant salaries and student loan debt, we’re saving less than ever.

Table of Contents 

Step 1: Develop Savings Goals and Strategies
Step 2: Pick Budgeting and Debt Repayment Methods
Step 3: Choose a Financial Institution and Accounts
Step 4: Automate Your Finances
Step 5: Establish a Budget-Conscious Lifestyle
Step 6: Make More Money

Here Are Our Best Tips to Save Money

Are you ready to actually start saving money? What you’re reading is a step-by-step guide on how to do it — how to come up with savings strategies, choose a budgeting method, pick the right financial institution, automate your finances and live a budget-conscious lifestyle.

Pour yourself a cup of coffee and buckle up. It’s time to get serious about this.

Step 1: Develop Savings Goals and Strategies

The Penny Hoarder created vision boards to inspire saving for retirement and a vacation on Monday, September 24, 2018.

You’re probably asking yourself, “How much should I save?”

Your first move is to set specific savings goals for yourself — emphasis on specific. Naming your goals will make them more real to you. It’ll help you resist the temptation to spend your money on other stuff.

Think Long Term and Short Term

What exactly do you want to save money for? How much will you need to save? And what do you need to save for first? Think short- and long-term:

  • Short-term: Save for a real vacation or nice holiday gifts. But first, save enough to have a decent emergency fund — three to six months’ worth of living expenses, in case you run into an unexpected car-repair bill or lose your job, for example.
  • Long-term: This involves big-picture thinking. Here, you’re saving money for things like your children’s college fund or for your retirement plan.

Analyze Your Income

How much can you realistically save for these goals, now that you’re making them a priority?

Write down your income and expenses — all of your expenses, from utility bills to your Netflix subscription. There are probably more ways to save money than you realize. Don’t forget your student loans or credit card debt. Make sure you know what you’re spending in every budget category. Pay special attention to what you’re spending on non-essentials, such as eating out.

An easy way to automate this process is to use Trim, a little bot that’ll keep track of all your transactions.

Connect your checking account, credit card and savings account for a big-picture look at your spending habits. Then, take a closer look by checking out each of your transactions. Set alerts that’ll let you know when bills are due, when you’ve hit a spending cap or when you’ve (hopefully not) overdrafted. This will help you stick with your savings plan.

Check in on Your Credit

Do your own credit check. Keeping tabs on your credit score and your credit reports can help guide you to a financially healthier life — especially if you use a free credit-monitoring service like Credit Sesame. It gives you personalized suggestions for improving your credit.

The better your credit, the better off you’ll be when you’re getting a home or car loan. Credit Sesame can estimate how big a mortgage you might qualify for, for example.

Here’s our ultimate guide to using Credit Sesame.

Step 2: Pick Budgeting and Debt Repayment Methods

A person creates three different envelopes for savings, fun and expenses. This is part of the envelope method

It’s time to start making a monthly budget and sticking to it — especially if you have debt.

This way, you can put savings right into your budget. It’s never an afterthought.

Here are five different budgeting methods. We can’t tell you which one to choose. Be honest with yourself, and choose the one you think is most likely to work for you. This is how to save money on a tight budget.

The 50/30/20 Rule

This one was popularized by U.S. Sen. Elizabeth Warren, a bankruptcy expert, and her business-executive daughter Amelia Warren Tyagi.

Split your income into three spending categories: 50% goes to essential bills and monthly expenses, 20% toward financial goals and 30% to personal spending (all the stuff you like to spend money on but don’t really need). Put the money earmarked for your financial goals into a separate savings account.

Good for: People who worry they won’t have a life if they’re on a budget. Here’s our complete guide to 50/30/20 budgeting.

Envelope Budgeting

So-called envelope budgeting is traditionally a cash-only budget. Every month, you use cash for different categories of spending, and you keep that cash for each category in separate envelopes — labeled for groceries, housing, phone, etc.

Prefer plastic? Here’s our review of Mvelopes, an app that lets you digitize this method.

Good for: People who know they need help with self-control. If there’s nothing left in one envelope toward the end of the month, there’s no more money to spend on that category, period.

Zero-Based Budget

Here’s how you draw up this budget: Your income minus your expenses (including savings) equals zero. This way, you have to justify every expense.

Good for: People who need a simple, straightforward method that accounts for every dollar. Here’s our guide to the zero-based budget.

Debt Avalanche

This debt-repayment method helps you budget when you have debt. Pay off your debts with the highest interest rates first — most likely your credit cards. Doing that can save you a lot of money over time.

Good for: People with a lot of credit card debt. Credit cards generally charge you higher interest than other lenders do. Learn more about the debt avalanche method here.

Debt Snowball

Money management guru Dave Ramsey champions the debt snowball method of debt repayment. Pay off your debts with the smallest balances first. This allows you to eliminate debts from your list faster, which can motivate you to keep going.

Good for: People who owe a lot of different kinds of debts — credit cards, student loans, etc. — and who need motivation. Here’s how to use the debt snowball method to eliminate debt.

FROM THE DEBT FORUM
Zero % Credit Cards
1/1/21 @ 4:33 PM
Cynthia Scionti
Eviction on credit report
9/30/19 @ 3:17 PM
Not broken yet
Helping Covid-19 Victims
1/5/21 @ 2:56 PM
Beth Hawthorne
Struggling to pay debt or going bankrupt
12/29/20 @ 8:02 PM
Judy Aquino
See more in Debt or ask a money question

Step 3: Choose a Financial Institution and Accounts

A woman in a car is server at a bank drive-thru window.

You might be thinking, I already have a bank. And of course you do. If you’re like most of us, you’ve had the same bank for years.

Most people don’t give this a second thought. They figure it’s too inconvenient to switch. But it’s worth shopping around for a better option, because where you bank can make a real difference in how much you save.

What to Look for in a Bank Account

Does your checking account pay you interest? What are the fees like? What other perks does it offer?

Did you know the biggest U.S. banks are collecting more than $6 billion a year in overdraft and ATM fees?

Maybe it’s time to try another financial institution. We’ve found some great online bank accounts to help you avoid fees and get features you won’t find with the brick-and-mortar banks.

Here’s one example: There’s a mobile baking app called Varo Money.

The FDIC reports that the average savings account pays a paltry .08% APY*, but when you open an online checking and savings account with Varo, it will pay you more than 20 times that amount on your savings account. 

We know opening a new bank account isn’t exactly everyone’s idea of fun, but Varo makes it easy. You can open an account with just a penny, and more than 750,000 people have already signed up.

Oh, and there are no monthly fees. 

Want more options? Here’s our ultimate guide to help you choose the right account.

*https://www.fdic.gov/regulations/resources/rates/

Pay Less in Credit Card Interest

To free up more money for savings, try to spend less paying interest on your debts — especially if you have high-interest credit card debt.

These days, credit card interest rates often climb north of 20%. How can you avoid paying all that interest? Your best bet is to cut back on your expenses and pay off your balance as soon as you realistically can.

Start by using the right credit card for you, based on your situation and needs. Would you prefer a card that gives you cash back or travel incentives, a balance-transfer card, or a card that’ll help you build credit?

Also consider paying off your high-interest debt with a low-interest personal loan. It’s easier than you might think. Go window-shopping at an online marketplace for personal loans. Here are some we’ve test-driven for you:

  • AmOne allows you to compare rates side-by-side from multiple lenders who are competing against each other for your business. It’s best for borrowers who have good credit scores and just want to consolidate their debt.
  • Fiona is also a marketplace but allows you to borrow more money and borrow it for a longer period of time — if that’s what you want to do.
  • Upstart tends to be helpful for recent grads, who have a young credit history and a mound of student debt. It can help you find a loan without relying on only your conventional credit score.

Step 4: Automate Your Finances

Man holding phone

That’s right. We’re deep into the 21st century, here, so make technology do the work for you.

The best ways to save include automation. You’ll save time, and time is money. Here are a few money-management steps you can take today to ensure you won’t have to think about money for more than a few minutes every month. 

Automate Bill Pay

Most bills are paid online now, reports the Credit Union Times. But you can take it a step further. Set it up so you’ll receive and pay all of your bills online through your bank. That simplifies things so you’ll never miss a payment.

Here’s how: Go to your bank’s online bill-pay feature. Enter all the companies that bill you, and the account numbers for each. Arrange to receive e-bills from whichever billers will do that.

You can also have your bank send digital payments to individuals (like a landlord).

Automate Savings

Whatever you need done financially, there’s an app for that. We’ve put several to the test.

  • Digit is an automated savings platform that calculates how much money you can save. Here’s our review of Digit.
  • Long Game Savings combines online games and saving money.
  • Also, see whether your bank offers automatic savings transfers that will move money from your checking account to your savings account each month.

Automate Investing

You don’t have to be Warren Buffett to be an investor. You don’t even have to follow the stock market, read The Wall Street Journal or watch CNBC.

You can take advantage of these apps offering easy, automatic ways to start investing — the “set it and forget it” method. They’re useful for tricking your brain into saving more. You’ll do it without even realizing you’re doing it.

  • Stash lets you start investing with as little as $5 and for just a $1 monthly fee for balances under $5,000. Bonus: Penny Hoarders get $5 just for signing up!
  • Acorns connects to your checking account, credit and debit cards to save your digital change. It automatically rounds up purchases with your connected cards and invests the digital change into your chosen portfolio. Bonus: Penny Hoarders get $5 just for signing up! Read our full review of Acorns here.
  • Blooom is a company that offers a free “health check-up” for your 401(k). Then, for only $10 a month (Penny Hoarders get the first month free!), it’ll optimize and manage your retirement savings for you. See how Blooom helped one Penny Hoarder make the most of her 401(k).

Automate Budgeting

You can automate your budget, too. There’s an app for that. Actually, we’ve found several.

Charlie is a money-saving penguin who lives in your SMS text messages or Facebook Messenger (your choice, though Charlie is more fun and reliable on Messenger). He helps you save money through things like making sure you’re getting the best deals around (ahem, overpaying $24 a month on that cell phone bill?).

Mint lets you see all your accounts, cards, bills and investments in one place.

Medean for iOS ranks your finances based on how they stack up to those of people of similar age, income, location and gender. It calls itself a “health index for your finances,” and helps assess your situation and find ways to save money.

MoneyLion offers rewards to help you develop healthy financial habits and will literally pay you for logging onto the app. You can earn points in the rewards program by paying bills on time, connecting your bank account or downloading the mobile app.

Step 5: Establish a Budget-Conscious Lifestyle

Man shopping for apples

Here’s the harsh reality: To save more money, you’ll need to spend less money. (Or make more money, but we’ll get to that next.)

That doesn’t mean you have to live like a monk. Nor do you have to survive on ramen noodles and the dollar menu, wear scuffed shoes and patchy clothes, or cut your own hair with hedge clippers.

You just have to be smart and strategic. Here are some of our best tips to help you spend less:

Save Money Around the House

Your home is your castle. But castles are so, like, expensive. Fortunately, there are lots of ways to save money around the house.

Your priciest purchases — like appliances and furniture — are a natural place to look for savings. Try repairing your appliances instead of replacing them. And here’s a good list of other tricks for saving on furniture and appliances.

The cost of cooling, heating and lighting your home is massive. Try installing thermal curtains and a programmable thermostat. Or check out these creative, energy-saving ways to slash your utility bills.

Find Free Entertainment

Entertainment can cost an arm and a leg. But hey, we have to live, right? So do it for free! Next time you’re planning a night out, take advantage of one of these free date nights or group outings.

If you’re going to stay in, cut the cord. More and more people are doing this, because their cable bill has gotten so expensive.

If you’re thinking of switching to an online streaming service and you’re wondering which would be best, we’ve got you covered with our comparison of Netflix, Prime Video and Hulu. We compared costs, type of content, number of available titles and more.

You also should reconsider that gym membership if you’re not really using it.

Cut Your Food Budget

Groceries are a huge part of everyone’s budget, so they’re a big target for savings. Next time you’re putting together your shopping list, make sure to check out our favorite tricks to save money at the grocery store:

  • Look for free printable coupons.
  • Compare your local grocery prices using this worksheet.
  • Ibotta pays you cash back on purchases if you take pictures of your grocery store receipts. Plus, you’ll get a $10 bonus for signing up!
  • Scan grocery stores’ websites for deals and hit more than one store.

Not loving the supermarket? Nearly 70% of us say we spend too much on take-out or going out to eat. Here’s how to save money at restaurants, too.

Find out If You’re Wasting Money on Insurance

Buying insurance can be confusing and overwhelming, because there are so many options.

Here’s how to find affordable insurance:

For Your Car: Auto Insurance

Here are the blunt facts about how to get lower car insurance premiums: Have fewer accidents, get fewer traffic tickets and boost your credit score.

Automotive experts also gave us the following tips:

  • Buy a used car.
  • Participate in your insurer’s safe-driving program.
  • Shop around for better rates. One easy way is The Zebra, a car insurance search engine that compares your options from more than 200 providers in less than 60 seconds. Here’s how one guy is saving $360 this year on car insurance because of The Zebra.

For Yourself: Health Insurance

Let’s face it: Health insurance can be confusing and intimidating.

If you’re buying insurance for yourself, start with the federal health insurance marketplace at Healthcare.gov to see whether you qualify for any discounts or assistance.

Finding affordable health care coverage is a huge challenge for freelancers. Here’s how to get covered if you’re self-employed.

For Your Family: Life Insurance

Life insurance pays your dependents a set amount of money if you die. Whether to buy it is a judgment call.

Life insurance is considered more important if you’re married or have children. You might also want a basic policy that would pay off your funeral, mortgage or other debt.

You’ll probably be asked to choose between two options: term or universal life insurance. If you’re like most of us, you’ll choose term — the simplest, cheapest and most popular kind of life insurance policy.

To help you save money and navigate this complicated industry, modern companies are updating the old model:

  • Policygenius is an online-only platform that offers instant quotes from top carriers to help you make a quicker decision. Once you choose a life insurance company, you can apply right online, and a Policygenius rep will give you a quick call to ask a few follow-up questions.
  • Haven Life can insure you quickly based just on the health information you provide online.
  • Ethos can get you term life insurance in less than 10 minutes — with no medical exam — for coverage up to $1 million. Ethos offers a digital application, and customer service is available if you have questions.

Step 6: Make More Money

Lisa Rowan shows off her items she got from a clothing swap hosted by Stephanie Bolling in St. Petersburg, Fla.

How can you increase your income? It’s easier to save money if you’re bringing in more money to begin with.

Here are a couple of simple ways to make extra cash at home:

Share Your Opinion

You won’t get rich taking surveys, but if you’re just vegging out on the couch, why not click a couple buttons and earn a few bucks? We’ve tried a lot of paid survey sites, and two of the best we’ve found are My Points and InboxDollars.

Clear Your Closets

Sell your old stuff! Use the Decluttr app to get paid for your old DVDs, Blu-Rays, CDs, video games, gaming consoles and phones.

You can also sell nearly anything through the Letgo app. Just snap a photo of your item and set up a listing in about 30 seconds. If you have more free time, try selling items on Craigslist or eBay.

Find a Side Gig

For our best ideas to boost your bottom line, check out the following:

  • Unique ways to make money at home.
  • How to make extra money online.
  • How to earn passive income.
  • The Penny Hoarder’s continually updated page on open work-from-home jobs.

Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. He’s slowly getting better about saving money.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

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