There are so many ways to save money that are right under your nose. Chances are, there’s at least one thing from this list that you can do to save more money or get better credit. The following are 5 money tips that will save you thousands every year.
1 – pay off credit cards in full
If there’s only one thing you take away from this whole post, let it be this one tip. The average interest rate of a credit card is usually around 15%. Now, that may not seem like a ton, but it definitely adds up. Think about it. If you have an average monthly credit card bill of $250 and you decide to just pay the minimum, you’re spending an extra $500 per year just in credit card interest. Plus, every time you don’t pay your credit cards off in full, it looks bad on your credit score. And trust me, you need to start working on raising your credit score as soon as you get a credit card. Little things like this just bring it down a little at a time.
2 – get a credit card in order to start building credit
In order to do #1, you need to actually have a credit card. Some people will tell you to stay away from them, but if you have common sense and use it wisely, it won’t be a problem. Having good credit will help you when you’re ready to buy a car, a house, etc. Length of credit has an impact on your credit score, so you want to start building that credit as soon as you can. When you first get a credit card, one smart thing to do is just use it on gasoline. Not only is it safer to use a credit card at the pump than a debit card, but you won’t overspend that way. Plus, you’re getting cash back every time you use it. A good one to start with is a Discover card. There are even student options that are perfect!
3 – put money in your savings EVERY paycheck
I don’t care if you’re only able to put $25 into your savings after every bi-weekly paycheck. The important thing is that it all adds up over time. When I was in college, I had a car payment, so I was stretched thin pretty often. I probably put less than $50 in my account at a time, but it was something. As soon as I graduated and got a better-paying job, I was able to put between $200 and $400 in my savings bi-weekly.
4 – pay car insurance every 6 months instead of monthly
It honestly amazes me how many people don’t know this money-saving hack exists! Insurance companies will suck more money out of you the more often you pay. For instance, I pay $350 for full coverage insurance on my Honda Civic every 6 months. My friend, who has the exact same car, pays $100+ per month. I’m saving well over $400 by paying every 6 months.
5 – take auto loans out through credit unions, NOT banks
This is actually a tip that the teller at my bank gave to my mom, trying to help her save money. Credit unions can give you a much better interest rate, especially if you have good credit. I was able to get an auto loan with an interest rate of just 2.9%.
I hope you enjoyed this post on money tips that will save you thousands every year! If you enjoyed this post, you’ll also like my How to Save Money Starbucks post and my How to Save Money at Target post!