This post contains informational content based on the author’s personal experiences. This information is not financial advice. Please consult your tax advisor and other financial professionals for advice specific to your situation.
There are plenty of things that you could be doing to save money on everything in your life. Some things need to be implemented over time, but some can be done right now. It can be easy to save money on day to day expenses if you just know what to do.
Don’t Carry Useless Debt
Credit cards debt is one of the most useless forms of debt that you can have. If you can’t be responsible with credit cards, you need to consider whether or not you should keep them.
Not paying credit card interest is a great way to save money on day to day expenses. You are could paying hundreds and maybe even thousands every year on credit card interest, if you regularly don’t pay at least the statement balance from month to month.
People who are able to spend within their means, budget their money, and plan for inconsistent expenses, are the people that are best suited for credit cards.
Consider Buying A House
Having a mortgage is one of the best forms of debt you can have because it prevents you from paying extreme prices for rent, while also giving you an investment to manage.
It is a good practice to keep your house in good repair so that bad problems don’t become worse. You should budget for repairs and expenses monthly even if you don’t have them every month.
Consider Getting a Credit Card Based on Your Lifestyle
People are usually in one of two boats…the people that love credit cards, or those who hate them because of personal experience or the experiences of those around them.
Credit cards can be a great tool for those that are willing to learn how to play the game. Not only can they get you by in a pinch, but they can also make you money.
The best way to decide on a credit card is to research the credit card network you are interested in using (ex: Visa, MasterCard, American Express). If you have a particular network you want to use, then you can go directly onto their site and search the cards they have available.
If you don’t care about which network you end up going with, just research the other companies the same way.
My favorite cards are those with cash back and $0 liability programs. I don’t travel or use the other features that many cards offer, so that isn’t something I look for in a card.
I also don’t like getting cards that use points that you can exchange for money because the cash value of the point can easily and often change.
I also don’t like cards with revolving categories, because it makes it hard to keep track of when the categories change, especially considering that sometimes purchases don’t post until days later depending on the retailer.
With cash back cards, I’m able to make money and reallocate that money to my savings account or other investments.
Pro tip: I have also previously deposited the cash back into my bank account, then turned around and used that same money to pay my statement balance. I had to do it like this because if you just apply the cash back money from within your account directly, it won’t count towards your statement balance.
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Check Your Credit Card Bill
If you see a charge that you didn’t make, you can only dispute it if you know that it is there.
Scammers are always lurking, especially during the holiday season and in crowded tourist areas.
It is great to have a wallet that has RFID protection, but not always does it work, especially in crowded areas where people can be right next to you, but also while you have your card out during a purchase.
Use the $0 Liability Feature on Your Credit Card
If you do find a fraudulent purchase on your account, dispute and report it immediately.
Although most companies offer you some protection should your card become compromised, you need to report it immediately so that more charges aren’t made on your account and so that you are liable for the charges because you waited too long.
Ultimately, what is the point of having it if you don’t use it.
Use Your Credit Cards Wisely
Don’t go on a spending spree, just because you have a credit card. You need to be just as responsible as you were before.
It is easy to pretend that you don’t have to pay any of that money back when you aren’t seeing it come out of your checking account immediately after a purchase, but you still need to pretend that it is.
If you know that you are going to be irresponsible with the card, it would be a better idea for you to get general cash back cards and to set them up with your utilities and autopay and leave them alone.
Budget
This is really important even if you decide you don’t want a credit card. Budgeting lets you see where you are wasting money.
If you don’t know where your money is going, it also makes it harder to plan for a big trip or some other large expense.
A budget doesn’t have to be complicated, it can even just be a sheet of paper that lists all of your fixed expenses, other expenses, and income.
Undated Easy Budget Planner
Get Cash Back for Paying Your Bills
If you picked a cash back credit card, you are basically able to get cash back just for paying your bills.
Now, many companies charge a fee when you pay bills in person. However, especially since the pandemic, many companies are NOT charging fees when you pay your bills online, this includes utility companies.
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Check with your companies to see what their fees are. You should be able to see what their fees are before you pay for your bill.
Pay Your Bills When They Are Due, Not When You Get Paid
You are sometimes able to make your money stretch a bit by paying your bills on their exact due date instead of when you get paid.
For example, if you get paid on the 10th, but your bill isn’t due until the 18th, pay it on the 18th. This especially works well if you are using your credit cards to pay your bills and you are trying to delay when that bill will be owed on your credit card.
Sometimes, depending on when your credit card statement comes out, you can delay paying that bill amount until the next credit card statement. This can buy you more time to come up with the money.
Schedule Your Payments
If you know that you have money coming in to pay your bills, just go ahead and schedule the payments. You should also be keeping track of when you are getting paid and when you are paying your bills with your budget.
It is good to go ahead and schedule your payments, just in case you forget, get sick, or are too busy to remember to pay your bill.
Consider Signing Up for Autopay
If you are having to juggle your money a lot, signing up for autopay probably won’t be the best thing for you.
However, if you have a consistent income and don’t really have to worry about not being able to pay your bills, autopay is a great way to make sure that you don’t accidentally forget a payment.
Pay the Statement Balance
If you are juggling paying your bills, you need to make sure that you are keeping track of how much you have already paid towards the statement balance.
If you don’t pay the statement balance every month, you will be charged interest on the difference between what you paid and the statement balance. Your interest rate could also be upped to a penalty rate and you could have a penalty period on your account. That penalty period could be 6 months long or perhaps even longer depending on your credit history and your credit card company.
Even if you are just going to set up autopay and just peek in every now and again, it is still probably a good idea to pay the statement balance. You never know when you might need some of the cash that you have on hand.
Activate Your Offers
Many credit card companies have offers that give you a statement credit when you activate the offer and use your credit card to make a purchase with the company while the offer is still valid.
Get a Savings Account
Sometimes it is easy to burn through money just because you can see it in your checking account.
By putting your extra cash in your savings account, you will remind yourself that you are trying to save that money and that all of your bills have been accounted for.
In order for a savings account to work well, you must budget so you know how much to put in your savings account.
Consider Having Multiple Bank Accounts
It is good to have multiple bank accounts, especially if you are someone that likes having a specific account for bills and a separate account for the remaining spending money you have in your account.
It is also great to have a separate bank account for critical expenses like a mortgage or car payment.
This way, you are less likely to forget to pay these bills when they have a dedicated account. It is also a great idea to go ahead and set these accounts up with autopay.
If your employer allows you to split your paycheck amongst multiple bank accounts, you might consider doing that so you know that the money is always being deposited for you as well.
Consider Using a Credit Union
Credit Unions generally have better savings account rates and potentially lower loan rates than the national banks. This is especially great if you are looking for a savings account that is separated from all of your other accounts. It is easier to not spend from a savings account that isn’t attached to your other accounts.
Consider Using a National Bank
National banks have great perks that can’t be overlooked. If you are someone that travels a lot, you might prefer the peace of mind that comes from being able to access a physical bank even while you are traveling.
I have heard stories about people getting their cards skimmed while traveling and only having the cash they had on hand to help them through the remainder of their trip.
If you only have credit cards and your card gets skimmed, you will need to report the fraud immediately, but this will also lock you out of your own card.
However, if you still carry your debit card on you and are traveling somewhere that you still have access to your physical bank, you can just take the money out of your account and perhaps pay a $50 fee for fraud protection. The amount of the fee will depend on the bank you are with.
Check Your Cable Bill
Cable bills have been known to have surprise cost increases and fees. By checking your cable bill regularly, you will know if you need switch companies or adjust your service levels.
Check Your Subscriptions
Subscriptions are the same way. It is also good to evaluate your subscriptions every 3 to 6 months so you can be confident that you are actually using them.
There are many people that are guilty of having a gym membership for YEARS because they tell themselves that they will go one day.
Other Posts to Help You Save Money on Day to Day Expenses
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