04 May 2018 | Written by Daniel Dewitt
Life hacks are those little tricks and shortcuts that can come in super handy when dealing with everyday tasks. As you’ll find on sites like YouTube and Pinterest, there’s a life hack for just about everything nowadays. But did you know you can apply life hacks to your finances, too? If installment loans are what’s holding your finances together these days, you may want to consider paying extra attention to these simple and smart ways to save money in your everyday routine. Here are 5 financial life hacks that everyone should know about:
If you have a decent credit score to back you up, you could get approved for a 0% APR credit card. Having a card with a no-interest promo period can be a game changer when it comes to paying off credit debt. Simply have your high-interest credit balances transferred over to your new card and you’ll save a ton in interest. This little step will help give you more motivation to pay those balances down before the introductory period expires.
Still getting money from relatives? Whether the occasion is a birthday, holiday, graduation or even your wedding day, getting cash from family members is always g reat. But before you go spending it all in one place, be sure to set a portion of it aside for a rainy day. Though you may be tempted cash the checks now and go on a spending spree, the best thing you could do is deposit them into a savings account. You never know when an unexpected expense or cash emergency is going to hit, and those extra funds could really come in handy.
Speaking of savings, another way to help give your savings a boost is to set up an automatic monthly transfer from your checking account to your savings account. This way, you can watch your savings grow without ever having to lift a finger. Figure out how much money you can realistically afford to set aside each month and lock that amount into your monthly auto-deposit. It’s easy to set up and you’ll be surprised how fast your savings add up.
When it comes to insurance, it is usually cheaper to pay the whole premium at once instead of incrementally one month at a time. Most insurance companies will offer a discount incentive for paying your whole premium for the year up front. It may seem like a large expense to cover all at once, but you should do it if you can afford it. Not only is it one less bill to worry about, but you might save some serious money in the long run.
Equity loans aren’t utilized nearly as often as they should be. If you’re a homeowner, you can take advantage of the equity in your home by taking out an equity loan with a very low-interest rate. When times get tough, most people go straight to personal loans because they’re fast and convenient. But when it comes to saving money, home equity loans are the way to go.
A few small steps in the right direction is all you need when it comes to putting some momentum behind your finances. Take some time to go over your budget and see if you can use any of these money hacks to help improve your financial status. You don’t have to exercise all these ideas at once, but trying just one of these smart tips can make all the difference in building your financial future.