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Set Financial Goals for Yourself
Everyone wants to have more money, less debt, and greater financial freedom, but very few will attain it. Simply telling yourself that youâll earn more cash and clear more debts isnât enough to realize those goals, but writing those tasks down, setting realistic targets, and steadily working towards them can significantly increase your chances.Â
Nothing is guaranteed, but someone with clearly defined financial goals has more chances of attaining financial freedom than someone without.
Types of Personal Financial Goals
Financial goals come in many forms, but they all revolve around money and acquiring as much of it as possible. Some of the most common short and long-term goals include:
Establish a Budget
The first step to fixing your finances is to create a budget. Itâs a short-term goal and itâs also one of the simplest, but that doesnât make it any less important. Many Americans underestimate how much they spend and overestimate how much they earn, making a budget essential for adding a little clarity.
Clear Credit Card Debt
Americans have an average of $38,000 worth of debt excluding mortgages. A small percentage of this is allocated to credit card debt, but it often carries the highest interest rate and has the worst terms. Clearing this debt is an honorable and sensible goal for anyone with mounting debts.
Save Money for a Big Purchase
The average American family under the age of 35 has between $2,500 and $4,000 in savings. Thatâs barely enough to cover a used car, let alone a mortgage down payment or college education, which is what most families are saving towards.
Save for Retirement
This is the ultimate long-term financial goal. Saving for your retirement will give you something to look forward to and make life easier as you enter your old age. Many retired Americans regret not saving more money, with some experts recommending that you have at least $1 million tucked away to cover you for an average of 18 years.
Thatâs a lot of money, but it comes from a lifetime of saving and means you can enjoy plenty of cruises and vacations when you call time on your career.
Fix your Credit Score
Next to your Social Security Number, your credit score is one of the most important numbers you have and one you need to pay close attention to. Build a good score and a world of opportunities will open for you, making it easier to get low-interest loans and secure high credit limits.
Create an Emergency Fund
You can never underestimate the benefits of an emergency fund. Itâs essentially a savings account without an end goal and itâs used to cover you in the event that youâre hit with an unexpected bill or expense. It will also help if you lose your job or become ill.
Improve your Financial Situation
This incorporates many of the goals discussed above, one can be both a short-term financial goal and a long-term one. The most common goal is simply to have more money for an easier life or an early retirement, but there are also those who save so they can move abroad, start a dream business or simply become a millionaire.
These goals are a little harder to achieve than simply clearing debt or have some extra money in your pocket, but theyâre not unreasonable. If you have a detailed plan and work hard to realize it, thereâs no reason why those lofty long-term financial goals canât be realized.
Why Should You Set Personal Financial Goals?
Goals give you direction and purpose. They provide a detailed outline of what you need to do, what you have achieved thus far, and what remains. This adds a sense of accountability that simply wouldnât exist without those goals.
If you simply tell yourself that youâre going to do something, youâre more prone to procrastinating and moving the goalposts whenever it suits you. If you write all your goals down and separate them into clear and manageable chunks, thereâs no room for denial or deviation.
Think of it as a visit to the grocery store. If you have a list, you buy what you need, donât forget anything, and are more inclined to focus on the purchases that are within budget and will actually be eaten and enjoyed. If you visit without a list, youâll end up with a bunch of unnecessary foods you bought just because they were on offer and will forget all the things you went there to buy.
Our minds need direction, purpose. When the road is long, itâs easier to traverse if there are milestones, checkpoints, and clearly defined borders; without all that, itâs just a chaotic mess and youâll never make it to the end.
Short vs Long-Term Goals
A short-term goal spans days, weeks or months; a long-term goal stretches things out over several years and even a decade. Itâs important to have both, but short-term goals should have priority as long-term ones can get lost and forgotten about.
As an example, letâs suppose that your goal is to save a lot of money for your retirement. A long-term goal would be as simple as:
- Save $500,000 before retirement
This doesnât really help. However, if you break it down into multiple short-term goals you can focus on each of these in turn, ticking them off as you go and motivating you to keep going. As an example:
Increase Debt-to-Income Ratio
- Cancel unused subscriptions
- Sell unwanted items
- Ask for a pay rise
- Get a part-time job
Repay Debts
- Clear credit card 1
- Clear credit card 2
- Repay student loans
- Repay personal loan
Save Money
- Open a savings account
- Save $500 a month
- Make a sound investment
You can break these debts down even further and focus on making extra cash every single day. If thatâs what gets you up in the morning and pushes you towards your long-term goal, thatâs what you need to do.
How to Track Your Progress
As the saying goes, there is an app for everything and where financial goals are concerned there are actually multiple tools and apps to help you out:
- Mint: Track activity in real-time after connecting bank accounts and credit cards. Monitor spending, create budgets, and learn how to manage your money. Mint is one of the highest-rated budgeting and financial management apps on the market and is well-deserving of the praise it has received over the years.
- Wally: A great little budgeting tool that can keep track of your savings goals and tell you when certain bills are due. Itâs free and if your goal is to save and cover your debts, it does everything you need.
- Every Dollar: A simple but useful app designed to help you escape debt and manage your finances more effectively. It literally lets you see where âevery dollarâ is being spent.
- Clarity Money: A useful app to help you manage your subscriptions. The average consumer has dozens of subscriptions and itâs easy to lose track, but Clarity Money keeps everything in one place.
- Spendee: Manage family finances with this shared budgeting app. Itâs ideal if youâre saving along with a partner or want to keep track of what everyone in your household is spending.
How to Meet Your Financial Goals
Whateverâs on your to-do list, just set a goal and start working towards it. Take a look at these tips to help you:
Debt EliminationÂ
Debt is crippling and the less you repay, the more damaging it becomes. Credit card debt, student loans, medical debt; it creeps into your life, it grows, and it never seems to go away. Before you focus on your savings and build towards a brighter future, you need to focus on clearing those debts.
Debt relief methods can help you with this, including consolidation, debt management, and debt settlement. In the first instance, however, you should try debt payoff strategies like Debt Snowball and Debt Avalanche, both of which rely on you generating extra money to meet more than your minimum.
Every time you meet the minimum payment on your debt, youâre paying a lot of interest and a little principal. The interest compounds, the debt grows, and if you keep sticking with just the minimum payments it will take forever to repay. When you repay more than the minimum, however, youâll clear more of the principal, reducing the compounding interest, amount, and term.
Emergency FundÂ
It doesnât matter how substantial your net worth is, how much money you have in the bank and what sort of long-term financial goals you have, it always helps to have an emergency fund.
An emergency fund is a sum of money put aside for a rainy day. Unlike a savings account, which might be used for retirement, a vacation or college tuition, an emergency fund has no predetermined purpose and is designed just to sit, grow, and wait for a rainy day.
An emergency fund can help you if you lose your job or have a medical crisis. We live in times of uncertainty and exist under one of the costliest healthcare systems in the world. A short stay in a hospital can bankrupt you if youâre not insured and even if you are, there are still costs to consider.
Budget to save and invest but keep some money aside to build an emergency fund and make sure youâre prepared.
Savings Goals
Successful savings goals are built on careful planning and sacrifices. If you want a new home, you need to say no to luxury purchases, eating out, vacations, and other expenditures.Â
The average American family wastes about $1,500 a year on uneaten groceries, $3,000 on restaurants and takeout, up to $500 on gambling, and thousands more on vacations, smoking, unused subscriptions, and more.
You donât need to eliminate these expenditures entirely, just look for cheaper and more sustainable alternatives. Save on wasted groceries and dining out by going for a picnic; swap an expensive vacation abroad for a family fun staycation.Â
Once you eliminate these expenses, you can start saving towards whatever goal you have, be it a retirement fund, a car or the down payment on a house.
Achieving a Huge Net Worth
Itâs okay to scoff at this one as it does seem a little far-fetched. However, itâs a dream that countless Americans have and one that is very attainable. Of course, itâs easier if you have a talent or youâre young enough to develop one, but providing you have a good work ethic, donât spend your days procrastinating, and have the right mindset, you can build a sizeable net worth.Â
Itâs about making smart financial decisions, acquiring lots of knowledge, adopting careful investment strategies, and working endlessly. Here are some tips to help you accomplish this lofty goal:
Donât Spend Frivolously
The world of the rich and famous is awash with stories of people who adopt unbelievably frugal lifestyles despite having millions or billions in the bank. There are stories of Warren Buffet going to great lengths to use coupons to buy fast food, even though heâs one of the richest men in the world.
This kind of frugality is a little extreme, but it comes from the right place. Rappers, rock stars and sports stars like to throw money around when they have it, but theyâre the ones declaring bankruptcy and being arrested for tax debts when their careers enter a slump. Thatâs not a sustainable lifestyle for anyone, even the super-rich.
Learn how to manage money properly and accumulate as much as you can. Donât scoff at the end of saving a few dollars just because you have a few hundred; donât throw away a few hundred just because you have a few thousand.Â
Adopting this frugality will hasten your journey to becoming a millionaire. It will also allow you to manage your money effectively when you eventually make it, preventing you from being one of many sob stories of people who came into lots of money and then blew it.
Treat Life Like a Business
To become rich and successful in a way that doesnât rely on good fortune, you need to treat your life like a business. A business, for instance, is very wary of accumulating expenses and will instead try to invest additional cash into assets. These assets increase the value of the business, whereas expenses reduce it.
As an example, letâs assume that youâre 18 and have a talent for writing. A good investment would be an education in literature or creative writing, a laptop, a writing course, even a home office. An expense, however, would be a holiday, a flashy watch or lots of designer clothes. None of these things will grow your wealth and most will hinder it.
Take a look at our guide on good debt vs bad debt to learn more.
Read, Learn, Fail
Read as many books as you can on your chosen subject and on similar subjects. Youâll learn about the world, the English language, and more. All these will help to improve your reasoning, logic, and knowledge, which will help with your goals.
Learn New Skills
Knowledge doesnât just come from books and it shouldnât be limited to specific subjects. If you want to be rich and successful, you need to devote every minute of your spare time to working, learning, and acquiring new skills.Â
Learn a language, adopt a craft, research into a niche subjectâall these things can broaden your horizons and increase your earning potential.
Find a Specialty and Stick with It
While itâs good to read many different subjects and learn many different things, when it comes to actually making money, you need to stick with a single subject. The world is filled with wannabee millionaires who spend their days writing music, books, and screenplays, and their nights trying to juggle freelance careers and businesses.
Specialize in one thing, be the best you can be, and once you have the money and the success you can start venturing into other areas.
Stop Making Excuses
Generally, people who dream of becoming rich and successful will fall into one of two categories. In the first, there are those who spend their days dreaming, partying, and procrastinating. They assume that being rich is simply a case of having a great idea and then waiting for the riches to descend. In the other group, youâll find people who work every minute of the day and are always willing to take risks and make sacrifices.
If you want to accomplish great things, you need to work for it. Donât assume that all the rich and successful people you see on social media have it easy. If theyâre not working every minute of every day, thereâs a good chance they worked that much to get where they are.
Set Financial Goals for Yourself is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
How to Stop Spending Money You Don’t Have
The post How to Stop Spending Money You Don’t Have appeared first on Penny Pinchin' Mom.
So, you want to stop spending money. That might be easier said than done. When it comes to managing your money, there are things you need to do. You know you need to budget, try to get out of debt and control your spending.
The issue is not necessarily that you are spending money on things you don’t have; you just aren’t spending it in the right way. The issue is not that you don’t make enough money, it is just not having a plan on how to use it once you get it.
That’s what happened to me. Unfortunately, I didn’t have a plan for my money. That lead me down a path I did not like.
After years of working without a plan, I found myself on the steps of a courthouse declaring bankruptcy. And, because I did not learn how to make the right changes in managing my money, my husband and I found ourselves in debt a few years later.
The difference with the second time I had debt was that I took responsibility for it. I owned what happened, and he and I worked together to make changes to not only pay off our debt but never go down that same road again.
If you find yourself in the same situation, you need to make big changes. To start, you have to stop spending money you don’t have. Plain and simple.
HOW DO YOU KNOW IF YOU ARE OVERSPENDING?
You’ve maxed out your credit cards
When there is no room to charge anything on your cards, you might have a problem. In most cases, maxed credit cards signals you are living beyond your means. If you have to continue to charge because you don’t have money, then you are spending too much.
You can’t find a home for your latest purchase
Your temptation might be electronics or handbags. No matter what you love to buy, you might notice you are running out of room to store things. When the stuff takes over your home and is causing clutter, it is time to take a long hard look at how you spend money.
Your budget never works
There may be months when you don’t have enough money in your budget to cover your mortgage or food. When you continually spend money on the wrong things, your budget will not work.
That means if you have just $50 for entertainment, do not spend $75. That other $25 has to come from another budget line.
You spend more than you earn
Take a look at your credit card balances. You might be paying only the minimum balance because you can’t pay it in full. When you spend more than you make and continue to add more debt, take a look at what you are buying. It might be time to pull back and stay out of the stores.
HOW TO STOP SPENDING SO MUCH MONEY
Use a budgetÂ
When many people hear the word budget, what they hear is “you don’t get to spend any money.” That is the opposite of what a budget does. Your budget is a roadmap. It shows you where your money should go – including the fun money you want to spend!
Your budget helps you know what you need to do with your money when you get paid. Look at every penny as an employee of yours. You get to tell it where it needs to go. Some of them will go to rent, others to your car payment and still others will go to the into your savings account.
The best part of a budget is that you can allow for fun. Learn how to budget to have fun and even how to budget if your paychecks are never the same amount.
Related: How to Figure Out How Much to Budget for Groceries
Write down your financial goals
Successful people start planning by having the end in mind. It may mean taking a backward approach to your finances.
Think about what you want. Do you want to get that credit card paid off or maybe take that dream vacation? No matter your goal, figure out what it will take to get there, and that will help you set your goal.
It may mean fewer dinners out or putting in some overtime at work. Whatever your goal, make sure it is clearly defined and you keep it front and center. Put it on your refrigerator. Keep a photo of it in your wallet. Make sure you see that budget staring you back in the face every time you even think about spending money. That will usually stop you right in your tracks.
Related:Â The Secret Trick I Use to Stick to My Budget
Cash is a Must so that you never overspend
If you are someone who is always saying “I can’t stop spending money,” then you need to use cash. I’m sure you’ve heard it time and time again. Using cash is one of the simplest tricks to help you stop spending money you don’t have.
It works because it gives you defined money. If you have $100 to spend at the grocery store, there is no way you can even spend $101. You don’t have it. You are forced to spend wisely and think more about every purchase you make.
I know some of you are reading this saying “but if I have cash I just spend it so fast.” That is because you are not tracking it and taking responsibility for your spending.
You need to use the cash envelope method.
If you have an envelope for groceries with $50 left in it, sure, you can dip into that and grab $20 to spend on lunch. But, what happens when you need food for your family? That means you’ve just $30 to buy food – which may not get you much.
Cash forces you to think about every purchase you make.
Related:Â How You Can Become Accountable With Your Money
Stop paying for convenience
There is a quick fix for nearly everything. Â You can find dinners in boxes, small pre-packaged snacks, etc. Â Rather than purchase convenience items, buy the larger size snacks and then re-package yourself into smaller baggies. Â You will not only get more out of a box, but you can even control how much you put into each baggie.
There are other ways we pay for convenience. Â We pay for someone to iron our shirts, wash our cars and even mow our lawns. Â By doing these things ourselves, we can keep much more money and easily stop overspending.
Read more:Â How You are Killing Your Grocery Budget
Put away the credit cards to halt spending money
One of the simplest ways to stop spending money is to get out the scissors and cut up those credit cards!! Or, if you aren’t ready to cut them up, put them on ice. Literally. Freeze your credit card in a block of ice.
If you keep spending, you have to cut off the source at its knees. While I don’t think credit cards are a good fit for everyone, I know they work for some.
If you must use credit cards, never charge more than you have in the bank to pay it off. That means you can’t charge the amount you believe you will get on your paycheck. There is never a guarantee that your check will arrive. Spend only the amount you have, not what you will receive.
Related:Â How to Pay off Your Credit Card Debt
Pay your bills on time
We all have bills.  We know when they are due. When you miss the payment due date, you get assessed a late charge.  Pay them on time, so you don’t pay more than you need to.
In addition to late fees, not paying your bills on time can have an adverse effect on your credit score. Learn how to organize your bills, so you never pay them late again.
Do not live above your means
Few of us would not love new clothes or a new car. We all would like to make more money or get the hottest new device. The thing is, can you afford it?  Is it a want or is it a need?
If you are using credit or loans to get items that you can not afford, then you are living beyond your means and spending money you don’t have. Â Scale back and make sure that you can honestly afford the house or the car and that it doesn’t ruin your budget and cost you too much.
Read more: Defining Your Wants vs. Your Needs
Don’t fall for impulse buys
Stores are sneaky about making us spend money. Â They use signs, layout and even scents to lure you into wanting to buy more. Â The thing is, if you purchase something you did not intend to, then you are already blowing your budget and probably overspending.
Another way that you are spending too much is when you plan dinner but then decide at the last minute to go out to dinner instead.  Why do that when you have food waiting for you at home (which you’ve already paid for)?
The final reason you may impulse buy is that of emotion. If you feel a rush because of that new item, you may purchase out of impulse and emotion instead of need.
Read more: Â Stopping Impulse Shopping
Plan your meals
One of the most significant changes we made was to menu plan. It took me some time to put it all together, but now, I can plan our meals in no time at all. I use the simple menu planning system that I’ve taken time to build over the years.
While this works for me, I remember when I was learning how to menu plan. It was quite a process, and I relied upon the help of some experts in the field.  One of them I have used is Erin Chases’s $5 Meal Plan. I loved how simple it was to create our meals each week.
Even the best menu plan won’t work if you aren’t eating what you buy. Make sure you are not making mistakes with your grocery budget and eat what you buy. After all, throwing food away is just money in the trash.
Related:Â Money Saving Secrets Stores Won’t Tell You
Challenge yourself to spend lessÂ
There is something fun about trying to beat yourself at your own game. By this I mean, if you have $150 to spend on groceries for the week, try to spend only $130. That gives you $20 more to spend on something else — or put towards your goal.
Related:Â Â The Yearly Savings Challenge for Kids and Adults
Stay out of the stores so you don’t shop
If you can’t control your spending and continue spending money you don’t have, you have to remove the temptation. Even something that seems harmless can result in spending money.
Related:Â Fun and Frugal Date Night Ideas
Track the money you are spending
Keep track of your spending by adding up the amounts on your phone.  That way, you’ll have no surprises when you get to the checkout lane. You can try Shopping Calculator for Android or Total-Plus Shopping Calculator on iTunes.
When you start to see that total creep up, you realize how much you are spending. That may help you think twice about that extra box of treats you are tempted to toss into the shopping cart.
Use the three-day rule before you spend a dime
The three-day rule is pretty simple. If you see something you want, wait for three days before you buy it. Once the third day is up, ask yourself if you still feel it is something you need.
If it is, look at your budget to ensure it works with this month’s spending. Then, double check the cash to make sure you have enough to pay for it. If both of these work, you can consider buying it.
The funny thing is that most purchases are impulse buys and the three day waiting period helps you realize you don’t need it. And had you purchased it, you may even have buyer’s remorse at the three-day mark.
Related:Â The Trick To Make Sure You Never Overspend
Don’t use coupons and skip the sales
Sales are very tempting. They lure you in and often result in making purchases you would not do otherwise. That is why you nee your list. Stick to it and don’t fall for the sales.
You also need to put away the coupons. Well, you can use them, but responsibly. If you would not purchase an item at full price, you should never buy it only because there is a coupon. A coupon is not a golden ticket to shop.
In addition to this, avoid the clearance aisles and end caps. Â These are money spending traps! Â You walk by, and your eye is drawn the end cap with the big SALE sign in front of it. Â If you don’t need that item, don’t grab it. Â Also, don’t walk by the clearance section. Â It is very easy to pick up items you don’t really need. Â That makes you again spend money you had not planned on.
Instead, shop the sections you need. Â If you need detergent, go to that section and grab your item and then go to the next on your list. Â Don’t wander through the store as you will be more likely to do “cart tossing.” Â This is when you put items in your cart without noticing what you are spending.
I’m not saying not to buy anything on sale. Just get the things you need that are on sale this week, or that you will need in the next weeks. You probably need spaghetti noodles, but you don’t need a new pair of shoes.
Related:Â The Money Traps You Will Fall For
Never shop without a list
Never shop without a grocery list. Ever. Then, force yourself to stick to it.
Some simple ideas include using a timer to limit how long you can be in the store. If you have only 20 minutes to shop, you will be less likely to grab the items you don’t need and stick with those that are on your list.
Another is to challenge yourself to see how fast you can finish your shopping. If you have the list and stick to it, you’ll find you spend less time shopping and more time enjoying the things you love.
The best reason to use a list is that you don’t have to worry about forgetting that “one item” you know you need. When you force yourself to make a shopping list and stick to it, you’ll always have everything you need on hand for dinner.
Keep emotion out of shopping
One tip is never to shop hungry. Â When you do, your stomach controls what you buy. Â The added benefit is buying the healthy foods you need.
If I am feeling bad about myself, buying something I have been wanting may end up making its way home with me. Spending money to make myself feel better never works.
There are many emotions attached to spending.  You have to identify which one(s) apply to you and find a way to fulfill that need through another method – other than spending money.
Define Needs vs. Wants
There are items we need.  You need food, but do you need the extra box of cookies?  Yes, the sweater is really cute but is it something you need or just something you want.  Ask yourself  “is this a need or a want” with each item you buy.  You’ll soon be on your way to less overspending.
Clean and declutter
When you declutter, you find all of those items you’ve spent money on and no longer need. Â It makes you realize where you are spending. Â You will also recall how clean your closet now is. Do you really want to fill it back up with more stuff?
The added benefit of decluttering is that it keeps your house clean and organized! Â You can find what you need more easily and don’t have so much “stuff” cluttering the house.
Save first, spend later
It is important always to pay yourself first. Â Remember that the amount you have to spend is what is left over after you pay your bills and pay yourself.
You should always tell your money where to go instead of it deciding for you. Â So many do that the opposite and save after they spend. Â If you still save a little, you will quickly build a nice emergency fund and can have less guilt about your spending.
Learn from your mistakes
The most important thing you must do is figure out where you’ve gone wrong in the past. Your mistakes will be different from everyone else’s. You may shop out of emotion while someone else does out of boredom.
You also need to keep in mind that you will make mistakes. There will be months when you fall off the wagon. Don’t beat yourself up over it. Use it is a chance to learn from them and do what you can to not repeat them again.
Related:Â Â The Mistakes You Will Make When Getting Out of Debt
Gaining control of your spending is possible. You just need to have the desire – and the tools – to make it happen.
The post How to Stop Spending Money You Don’t Have appeared first on Penny Pinchin' Mom.
Source: pennypinchinmom.com
How to Avoid the Financial Blunders People Make in Their 20s
Nobody is perfect when it comes to their finances â even millionaires slip up sometimes.
So when you start to think youâre worse off than your parents, or your nephew, or your friends, remember that all 20-somethings have made mistakes that can cost them big time.
But if youâre guilty of making some of these blunders, donât fret. You can still redeem yourself! Here are some of the worst blunders you can make, and tips to help dig you out of the hole.
Blunder No. 1: Not Getting Free Gift Cards When You Shop
What do you usually do with your receipts? You check out, they hand you a mile-long piece of paper, and you frantically stuff it to the bottom of a grocery bag. Pretty worthless.
But a free app called Fetch Rewards will turn them into gift cards. It partners with tons of brands to give you points for every grocery receipt you share. Then you can exchange them for gift cards to places like Amazon, Walmart, Chipotle and dozens of other retailers.
And itâs perfect for those of us who donât want to put a ton of work into this. All you have to do is send Fetch a photo of your receipt, and it does everything for you. No scanning barcodes or searching for offers â and you can use it with any grocery receipt.
When you download the app, use the code PENNY to automatically earn 2,000 points when you scan your first receipt. Then start snapping photos of your recent receipts to see how many points you can earn without a single trip to the store!
Not so bad for a useless receipt, right?
Blunder No. 2: Not Earning Anything On Your Savings
Youâve probably heard the best way to grow your money is to stick it in a savings account and leave it there for, well, ever. Thatâs bad advice.
But maybe youâre just looking for a place to safely stash it away â but still earn money. Under your mattress or in a safe will get you nothing. And a typical savings account wonât do you much better. (Ahem, 0.05% is nothing these days.)
But a debit card called Aspiration lets you earn up to 5% cash back and up to 20 times the average interest on the money in your account.
Not too shabby!
Enter your email address here to get a free Aspiration Spend and Save account. After you confirm your email, securely link your bank account so they can start helping you get extra cash. Your money is FDIC insured and they use a military-grade encryption which is nerd talk for âthis is totally safe.â
Blunder No. 3: Paying Too Much Interest To Credit Card Companies
If you have credit card debt, you know. The anxiety, the interest rates, the fear youâre never going to escapeâ¦
And the truth is, your credit card company doesnât really care. Itâs just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help.
If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
The benefit? Youâll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), youâll get out of debt that much faster. Plus: No credit card payment this month.
AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.
It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but donât worry â they wonât spam you with phone calls.
Blunder No. 4: Paying Too Much For Car Insurance
Whenâs the last time you checked car insurance prices?
You should shop your options every six months or so â it could save you some serious money. Letâs be real, though. Itâs probably not the first thing you think about when you wake up. But it doesnât have to be.
A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and itâll show you your options.
Using Insure.com, people have saved an average of $540 a year.
Yup. That could be $500 back in your pocket just for taking a few minutes to look at your options.
Blunder No. 5: Thinking You Donât Have Enough Money To Invest
Take a look at the Forbes Richest People list, and youâll notice almost all the billionaires have one thing in common â they own another company.
But if you work for a living and donât happen to have millions of dollars lying around, that can sound totally out of reach.
But with an app called Stash, it doesnât have to be. It lets you be a part of something thatâs normally exclusive to the richest of the rich â on Stash you can buy pieces of other companies for as little as $1.
Thatâs right â you can invest in pieces of well-known companies, such as Amazon, Google, Apple and more for as little as $1. The best part? If these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.1
It takes two minutes to sign up, and itâs totally secure. With Stash, all your investments are protected by the Securities Investor Protection Corporation (SIPC) â thatâs industry talk for, âYour moneyâs safe.â2
Plus, when you use the link above, Stash will give you a $5 sign-up bonus once you deposit $5 into your account.*
Blunder No. 6: Assuming Life Insurance Is Expensive And Time Consuming
Have you thought about how your family would manage without your income after youâre gone? How theyâll pay the bills? Send the kids through school? Nowâs a good time to start planning for the future by looking into a term life insurance policy.
Youâre probably thinking: I donât have the time or money for that. But your application can take minutes â and you could leave your family up to $1 million with a company called Bestow.
Rates start at just $16 a month. The peace of mind knowing your family is taken care of is priceless.
If youâre under the age of 54 and want to get a fast life insurance quote without a medical exam or even getting up from the couch, get a free quote from Bestow.
1Not all stocks pay out dividends, and there is no guarantee that dividends will be paid each year.
2To note, SIPC coverage does not insure against the potential loss of market value.
For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
*Offer is subject to Promotion Terms and Conditions. To be eligible to participate in this Promotion and receive the bonus, you must successfully open an individual brokerage account in good standing, link a funding account to your Invest account AND deposit $5.00 into your Invest account.
The Penny Hoarder is a Paid Affiliate/partner of Stash.Â
Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.Â
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
How Much Credit Card Debt is too Much?
Most Americans have credit card debt and will die with credit card debt. It’s one of the most accessible types of credit there is, becoming available as soon as you’re financially independent. It’s also one of the most damaging, as too much credit card debt could hurt your credit report, reduce your credit score, and cost you thousands of dollars in interest payments.
But how much debt is too much? What is the average total debt for American consumers and households and when do you know if you have crossed a line?
How Much Credit Card Debt is too Much?
The average credit card debt in the United States is around $5,000 to $6,000 per consumer. However, this doesn’t paint a complete picture as these figures don’t differentiate rolling balances. In other words, even if you repay your balance in full every month, that balance will still be recorded as debt until it is repaid.
For many consumers, $6,000 is not “too much”. It’s a manageable sum that they can afford to clear. However, if you’re out of work, relying on government handouts and have no money to your name, that $6,000 can seem like an unscalable mountain. And that’s an important point to note, because everything is relative.
To the average American, unsecured debt of $50,000 is catastrophic. It’s the sort of debt that will cause you to lose sleep, stress every minute of the day, and panic every time your lender sends you a letter. To a multi-millionaire homeowner who runs several successful businesses, it’s nothing, an insignificant debt they could repay in full without a second thought.
One man’s pocket change is another man’s fortune, so we can’t place an actual figure on what constitutes “too much debt”. However, this is something that credit reporting agencies, creditors, and lenders already take into consideration and to get around this issue, they use something known as a debt-to-income ratio.
Your Debt-to-Income Ratio (DTI)
Your DTI can tell you whether you have too much debt, and this is true for credit card debt and all other forms of debt (student loans, car loans, personal loans, and even mortgages).Â
DTI is not used to calculate your credit score and won’t appear on your credit report, but it is used by mortgage lenders and other big lenders to determine your creditworthiness and if you don’t past the test then you won’t get the money.
To calculate your DTI, simply calculate the amount of debt payments that you have and compare this to your gross monthly income. For instance, let’s imagine that you make $400 in credit card payments and $600 in auto loan payments, creating a total debt payment of $1,000. Your gross monthly income is $4,000 and you don’t have any investments.
In this scenario, your DTI would be 25%. as your monthly debt payments ($1,000) are 25% of your monthly income. If you have a $1,000 mortgage payment to make every month, your obligations increase and your DTI hits 50%, which is when you should start being concerned.
Many lenders will not accept you if you have a DTI greater than 50%, because they are not convinced you will make your payments. $2,000 may seem like a lot of money to have leftover at the end of the month, but not when you factor tax, insurance, food, bills, and everyday expenses into the equation.
If your DTI is below 50%, you may be safe, but it all depends on those additional expenses.
How to Tell If You’ve Borrowed Too Much
Your debt-to-income ratio is a good starting point to determine if you have borrowed too much, and if it’s higher than 50%, there’s a good chance you have borrowed more than you should or, at the very least, you are teetering on the edge. However, even if your DTI is above 30%, which many consider the ideal limit, you may have too much credit card debt.
In such cases, you need to look for the following warning signs:
You Can’t Pay More Than the Minimum
Minimum payments cover a substantial amount of interest and only a small amount of the actual principal. If you’re only paying the minimum, you’re barely scratching the surface and it could take years to repay the debt. If you genuinely don’t have the extra funds to pay more money, then you definitely have a debt problem.
Your Credit Card Balance Keeps Growing
The only thing worse than not being able to pay more than the balance is being forced to keep using that card, in which case the balance will keep growing and the interest charges will keep accumulating. This is a dire situation to be in and means you have far too much credit card debt.
Your Debt is Increasing as Your Take-Home Pay is Reducing
If your credit card bill seems to be going in the opposite direction as your paycheck, you could have a serious problem on your hands. You may be forced to take payday loans; in which case you’ll be stuck repaying these on top of your mounting credit card interest, reaching a point when your debt eventually exceeds your disposable income.
You Don’t Have Savings or an Emergency Fund
A savings account or emergency fund is your safety net. If you reach a point where you feel like you can no longer meet the monthly payments, you can tap into these accounts and use the funds to bail you out. If you don’t have that option, things are looking decidedly bleaker for you.
Dangers of Having Too Much Credit Card Debt
The biggest issue with excessive credit card debt is that it has a habit of sticking around for years. Many debtors only make the minimum monthly payment, either because they can’t look at the bigger picture or simply can’t afford to pay more.Â
When this happens, a $1,000 debt could cost them over $2,000 to repay, which means they’ll have less money to their name. What’s more, that credit card debt could impact their credit score, thus reducing their chances of getting low-interest credit and of acquiring mortgages and auto loans.
It’s a cycle. You use a credit card to make big purchases and are hit with a high-interest rate. That interest takes your disposable income away, thus making it more likely you will need to use the card again for other big purchases.Â
All the while, your credit utilization ratio (calculated by comparing available credit to total debt and used to calculate 30% of your credit score) is plummeting and your hopes of getting a lower interest rate diminish.
What to do if you Have too Much Credit Card Debt?
If you find yourself ticking off the boxes above and you have a sinking feeling as you realize that everything we’re describing perfectly represents your situation, then fear not, as there are a multitude of ways you can dig yourself out of this hole:
Seek Counseling
Credit counselors can help to find flaws in your budget and your planning and provide some much-needed insight into your situation. They are personal finance experts and have dealt with countless consumer debt issues over the years, so donât assume they can only tell you what you already know and always look to credit counseling as a first step.
Avoid Fees
Credit card companies charge a higher annual percentage rate to consumers with poor credit scores as they are more likely to default, which means they need those extra funds to balance their accounts. Another way they do this is to charge penalty fees, penalty rates, and cash advance fees, the latter of which can be very damaging to an individual struggling with credit card debt.
Cash advance fees are charged every time you withdraw money from an ATM, and the rate is often fixed at 3% with a minimum charge of $10. This means that if you withdraw as little as $20, it’ll cost you $10 in charges, as well as additional interest fees.
If the cash flow isn’t there, this can seem like a good option, but it will only make your situation worse and should be avoided at all costs.
Use Debt Relief
Debt management, debt settlement, and debt consolidation can all help you to escape debt, creating a repayment plan and clearing everything from credit card debt to student loan debt in one fell swoop. You don’t even need an excellent credit score to do this, as many debt management and debt consolidation companies are aimed towards bad credit borrowers.
Balance Transfers
A balance transfer credit card moves all of your current credit card balances onto a new card, one with a large credit limit and a 0% introductory APR that allows you to swerve interest charges for the first 6, 12, 15 or 18 months. It’s one of the best options available, assuming you have a credit score high enough to get the limit you need.
Monitor Your Situation
Whatever method you choose, it’s important to keep a close eye on your finances to ensure this never happens again. You should never be hit with an unexpected car payment or mortgage payment, because you know those payments arrive every single month; you should never be surprised that you have interest to pay or that your credit score has taken a hit because of a new account or application.Â
If you paid attention to your financial situation, you wouldn’t be surprised, you would understand where every penny goes, and as a result, you will be better equipped to deal with issues in the future.
How Much Credit Card Debt is too Much? is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
3 Ways to Build Credit if You Can’t Get a Credit Card
Credit cards, interest rates, loans, even where you liveâthese all depend on your credit score. If you have a good credit score, youâre more likely to get better financial offers. But if you have a low or nonexistent score, the chances of getting prime financial offers are pretty slim.
If you have low or nonexistent credit, improving your credit can seem almost impossible. Because you donât qualify for the best financial offers, you canât get the opportunities you need to bump up your credit. Plus, youâll probably find yourself paying a lot more interest than youâd like.
This might feel like a no-win situation. But thereâs good newsâthere are alternatives to building credit besides credit cards. Those with poor or nonexistent credit can have the opportunity to build up their scores. Learn about good credit scores and how you can work to get your rating in that range.
What Is a Good Credit Score?
If youâre completely unfamiliar with credit, itâs time to learn where your credit score stands. Hereâs the breakdownâcredit scores range between 300 and 850. According to Experian, an average credit score for Americans is around 675.
Credit scores are ranked as bad, poor, fair, good or excellent. Experianâs numbers are based on a model called VantageScore. The VantageScore model is broken down to the following:
- Excellent: 750-850
- Good: 700-749
- Fair: 650-699
- Poor: 600-649
- Bad: 300-599
FICO scores are based on a slightly different model with a range of 300 to 850. The average FICO score in 2018 was 704. For FICO ratings, a good or excellent score is above 740. Hereâs the breakdown of FICO Score ratings:
- Exceptional: 800-850
- Very good: 740-799
- Good: 670-739
- Fair: 580-669
- Very Poor: 300-579
How to Build Low or Nonexistent Credit
It is possible to get a credit card for bad credit. But youâll find that theyâll either have no rewards, higher interest rates or both. These are worth looking into, but you might want to consider other methods before you commit to a credit card. Here are some great options for building your credit scoreâthat arenât getting a credit card.
1. Get a CreditStrong Account
In a frustrating turn of events, building or rebuilding credit often requires that you have some credit to begin with. Thatâs where credit builder loans, such as the ones provided by CreditStrong, come in handy. Credit builder loans allow you to take out a loan without a hard credit pull. The money is placed in a locked savings account to secure the loan.
Once you make the required payments, the savings account is unlocked and you gain access to the funds. In the meantime, you get up to 24 months of positive payment reports to the credit bureaus, helping to build your score.
Each loan payment you make will be reported to all three credit bureaus each month, which will help build your credit history. Because 35% of your credit score is based on payment history, making on-time payments towards a CreditStrong account can improve your score.
2. Try Experian Boost
You already know that payment history makes up 35% of your credit score. Experian knows that, too. Thatâs why they launched Experian Boost earlier this year. This program allows you to include both your cell phone and utility payments in the calculation of your credit score.
Worried that youâll miss a payment or two? Missed payments will typically harm your credit score, but Experian only counts the payments youâve made on time. That means that any bill you donât pay on time wonât harm your score. While you should try to pay your bills on time, this is a life-saver if you accidentally slip up on a payment or two.
3. Improve Your Credit with Rent Track
When you have a low credit score, any payment you continually make on time helps. RentTrack is a great rent reporting tool that will track your rent payments, therefore helping you build your score. RentTrack is often used by property management companies, letting their tenants pay rent online.
How does this help your credit score? When you pay your rent, RentTrack offers to report your payments to all three major credit bureaus. If you choose to do, every payment you make will show up on your credit report. Make your payments on time, and youâll watch your credit score increase over time.
The post 3 Ways to Build Credit if You Can’t Get a Credit Card appeared first on Credit.com.
Source: credit.com
9 Tips to Spring Clean Your Budget
The post 9 Tips to Spring Clean Your Budget appeared first on Penny Pinchin' Mom.
Many of you have a spring cleaning ritual. Â It is the time of the year when you wash the windows, air out the bedding and declutter. Â However, have you ever thought about checking your budget?
That may sound crazy, but it is really is the perfect time of the year to really take a good look at your budget. Â We’ve got some ideas of what to do to spring clean your very own budget!
Before you get started, make sure you have a workable budget with our free budget printable!
SPRING CLEANING YOUR BUDGET
1. Check your envelopes
Now would be a good time to make sure that your envelopes have the right amount allocated to them. Â Take a look at your spending and determine if you need to make adjustments (up or down). Â This way, your envelopes contain the right amount of cash in them. Even if you don’t use cash, you should do this with your virtual envelope system as well.
You will also need to make sure that you don’t need to add new envelopes.  Perhaps you find that you always go to your dining out envelope to get money for family fun.  Why not make a separate envelope JUST for family fun? That way, have envelopes with a designated task and aren’t taking from one to fund another.
Read more:Â Why you must use a cash envelope system
2. Clean up your bills
Take a look at your spending. Are you paying for things you don’t need? Sometimes, we get so used to paying for things that we just ignore them and don’t think much about it.
For instance, you might not be ready to cut cable completely. Â However, are you paying for channels you really don’t watch? Â Go through all of your bills and make sure you aren’t wasting money on things you don’t really use.
3. Go looking for discounts
The idea of your budget is to make it give away as little of your money as possible — and rightfully so. Â Look back on your spending. Â There may be items which may offer you a discount.
Believe it or not, there are many utilities which will offer discounts to customers. Â You just have to know how to do it. You can take the time to research what others pay and call each company and try to negotiate your rates.
Or, if you don’t want to do this yourself, you can try a service such as BillCutterz.  This is a really cool site because they take your bills and negotiate for you.  The way you pay them is simple.  If they find a discount for you, the cost is split between them. So, if you would save $10 a month, they get $5 of that sent to them.
This is a great option for someone who wants to cut bills but just doesn’t have the time to do it. Learn more about BillCutterz HERE.
Read More: Â How you can easily lower your utility costs
4. Establish New Goals
Goals are a great tool that we often use in many areas of life, but what about budgeting?  The truth is, you might already be doing it and not realize it.
Goals could be as simple as paying down that one credit card. It might be going on a dream vacation. Â Perhaps it is buying the car without a loan or even paying for the first year of college tuition.
Whatever your goal, make sure you write it down. Â That instantly solidifies the goal and then, you can place it somewhere you see it. Â Every. Single. Day.
The more you see the goal, the more you remember what you want to achieve and might recall that when considering an impulse purchase.
5. Â Lower your grocery bill
Paying less for your groceries can significantly impact your budget. I learned that Aldi was an great place to shop and it really slashed my grocery budget! Â By using this store to get most of our food, I was able to drop our grocery spending by more than $200 a month!
If Aldi is not an option, take the time to learn how to shop the sales and to use coupons to help lower the amount you spend on food for your family.
Read more:Â How to save at the grocery store without clipping coupons
6. Â Transfer credit cards to lower rates
Now is the perfect time to look into getting a card with a 0% interest rate. Â Transfer your balances to the new card to eliminate paying interest on your balance, which might help you pay it down much more quickly.
The only caution is to watch the introductory period.  You need to pay it in full or transfer it again before the period lapses. Credit.com is an excellent resource to help you determine which card is the best option for you.
7. Lower your cell phone bill
Most people think that they are stuck paying whatever their wireless provider tells them to pay. Â That is true — for the most part. However, you might be able to negotiate a lower rate or may want to even consider changing providers completely
Read more: Â Simple Tricks to Help You Lower Your Cell Phone Bill
8. Automate your savings
If actually saving money is difficult for you, you are not alone. Many people do not have the discipline needed to save money every month. Â That is where automation is helpful.
You can see if your employer allows for your check to be direct deposited into multiple accounts. If so, have them deposit a portion of your paycheck directly into savings. Â If that is not an option, set up an automated transfer out of your checking account into your savings account each month.
Once you do that, you will need to adjust the spending in your budget. Â Even saving just $25 a paycheck is better than nothing and you’ll be surprised at how much you do not miss the money.
Read more: Why you must automate your savings
9. Review your insurance
Take a good look at not only your auto insurance but also your homeowner’s and life insurance.
Do some comparison shopping to make sure you are getting a good rate. Â If your insurance is from different providers, check to see if any of them offer a bundle discount if you have all of them under one roof.
If you’ve built up your emergency fund, you might even be able to just raise the deductible and lower your monthly out of pocket cost and actually save more than the deductible costs. Â Simply increasing your deductible from $500 to $1,000 could save you a LOT of money on your monthly costs.
In addition, if you do not yet have life insurance, this is the time of the year to consider purchasing it. Â It isn’t for you – it is for your family.
Read more:Â Why You Need Life Insurance
Taking the time to review your budget is wise, but really looking at it is something we don’t always do. Â Just schedule this each year with your spring cleaning schedule and you’ll never forget to do it again!
The post 9 Tips to Spring Clean Your Budget appeared first on Penny Pinchin' Mom.
Source: pennypinchinmom.com
How to Use Your Debit Card Cash Back to the Fullest
What if you could pay for your next date night or trip to the grocery storeâwithout having to dip into your budget? If you use cash back to your advantage, these benefits could become a reality.
In the past, you had to swipe a credit card to earn cash back. But with Discover Cashback Debit, you can earn cash back by spending with your debit card (you read that right: debit card), allowing you to reach your financial goals without the risk of going into debt.
To best use this budget bonus, you might be wondering, âWhat should I do with my debit card cash back?” According to Eric Rosenberg, financial consultant and founder of the website Personal Profitability, âYou could put [your cash back] into savings or treat yourself to something from your wish list.”
Read on for things to do with cash back to help you achieve the right balance of responsibility and fun:
1. Save for a rainy day
Sometimes it seems like everything goes wrong all at once: You get a flat tire. The sink starts leaking (ugh, again!). You get a parking ticket. Since life can throw unexpected, costly curveballs your way, it’s important to have an emergency fund. Also known as a rainy day fund, an emergency fund is cash that’s set aside to cover unplanned, yet crucial, expenses.
âSo many people can’t afford the cost of an emergency from their savings,” Rosenberg says. If you don’t have this type of fund to fall back on, starting an emergency fund (or adding to an existing fund) could be a top priority when evaluating what to do with your cash back from a debit card.
When thinking about building an emergency fund as a thing to do with cash back, note that experts typically recommend putting aside at least three to six months of living expenses for this purpose. To maximize your emergency fund, you may want to consider moving these savings (and the cash back you’re putting toward this fund) to a high-yield savings account. That way, your emergency fund can steadily grow with interest until you need it. (P.S. More to come on how to automatically move your cash back into savings.)
2. Pay down your debt
If you owe, it can be tough to climb your way out of debt. Whether it’s from credit cards, student loans or a mortgage, interest is accruing and costing you money. Learning how to use your debit card cash back to offset debt can help you save on those interest payments down the road.
According to consumer money-saving expert Andrea Woroch, when you’re focusing on paying off debt, “It’s natural to cut back where you can. But you may eventually hit a wall where you can’t find ways to tackle expenses any further,” she says. That’s where learning how to use debit card cash back comes into play. Since a debit card with a cash back feature can allow you to earn for your everyday spending, those earnings can become a new source for paying down debt, Woroch adds.
3. Shore up for those special moments
You know you’d like to have more nights out, but they don’t come cheap. What to do with your cash back could include spending on special outings, Woroch says. Is there a restaurant you and your significant other have been dying to try? Is there a concert the whole family is super eager to see? There may also be larger events with family and friends to think aboutâplanning a milestone birthday or anniversary or that getaway with college buds. You can set aside your debit card cash back and earmark it for your relationships to create memories that will last a lifetime.
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âYou could put [your cash back] into savings or treat yourself to something from your wish list.”
4. Support your children’s allowance
If you have kids, you’ve probably heard this one before: âMom, Dad, can I have some money?” Sometimes it can feel like you’re a walking ATM. One thing to do with cash back is to set aside an allowance for your kids. You can then use this cash to teach your children good savings habits and how to manage money on a monthly basis for the things they need and want, says Rosenberg of Personal Profitability. The best part: The money isn’t really coming out of your budget since you’re earning it for your everyday expenses and from money you’d be spending anyways. Win-win.
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5. Stockpile funds for the holidays
In thinking about what to do with your cash back, spending it on gift-giving and holiday expenses may be a good goal. “Some people go into debt during the holidays. To help avoid that circumstance, use your cash back to get ahead,” Woroch says.
And, really do think ahead if holiday spending is on your list of things to do with your cash back. The earlier you stash your cash back away for the holidays, the longer it will have time to accrue if you put it in a savings account for safekeeping. Season’s greetings may be the last thing on your mind while you’re flipping burgers on the 4th, but planning ahead could really impact your end-of-year festive spending.
How to maximize your cash back
Now that you know what to do with your cash backâwhether it’s going to work for your emergency fund or funding emergency holiday giftsâconsider steps you can take to get the most out of your extra dough. For example, find a rewards program that matches your spending style. With Discover Cashback Debit, you can earn 1% cash back on up to $3,000 in debit card purchases each month.1 That’s up to $360 a year. Not too bad for just going about your daily debit card spending.
To make the process of saving that extra cash even easier, consider opening a Discover Online Savings Account. If you sign up for Auto Redemption to Savings, your cash back will be automatically deposited into your savings account every month.
âThe hardest part about saving for many people is remembering to make a transfer or take the cash to the bank,” Rosenberg says. “If you can automate it, you are setting yourself up for success. It’s like saving while you sleep.”
If you’re still considering how to use your debit card cash back to the fullest, Woroch suggests paying for group purchases when you’re out with family or friends. “Whether you’re going to dinner or renting a condo, cover the entire expense on your card and ask friends and family to pay you back with cash or [via mobile payment],” Woroch says. “This way you can benefit from earning more rewards.”
When it comes to how to use your debit card cash back, the key is to make sure you have enough in your account and aren’t spending too much if you offer to temporarily foot the bill. You don’t want to overextend in order to earn, as you could be hit with overdraft fees or not have enough in your account to cover bill payments, Woroch says.
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“Whether you’re going to dinner or renting a condo, cover the entire expense on your card and ask friends and family to pay you back with cash or [via mobile payment]. This way you can benefit from earning more rewards.”
Get ahead with a combination of strategies
If you’re looking for things to do with cash back, using these tactics can help you improve your financial foundation and have some fun along the way. Understand your needs and goals to help you create a cash back plan, and then maximize your strategy with tools to help you automatically direct your cash back to savings to limit the temptation to spend the money elsewhere.
“We are all so busy these days, and managing money is often pushed down on the to-do list,” Woroch says. Learning how to use your debit card cash back can help you put money management front and center. Start earning!
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.
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Source: discover.com