PHOTO SOURCE: (c) Iana_Kolesnikova – Fotolia.com
Did you get carried away with last season’s vacation spirit? Amidst hefty expenses, New Years is the best time to take stock of personal finance habits and make beneficial changes for the year ahead.
Here are some useful tips and tricks for spending and saving wisely in 2017.
Long Term Thinking
Don’t neglect the future. It’s never too early to save for retirement. In fact, the sooner you get started, the better off you will be. Invest through company-sponsored plans anytime possible. Otherwise, look for an IRA that can help you grow your wealth exponentially.
Create Categorized Funds
Consider the 52 week saving challenge. The first week, save $1, followed by $2 the second week, up to week 52, when you set aside $52. Sticking to this plan results in $1,378 saved at the end of the year, in addition to any interest you earn.
Creating a savings account for a selected purpose is all the time a healthy saving strategy. Look for a fee-friendly bank, such as Ally Bank Member FDIC, ally.com, which lets you open an Online Savings or Money Market account with no minimums and no monthly maintenance fees. You can deposit money easily via e-check deposit, direct deposit and you’ll earn daily compound interest on your savings. Plus, putting this money into a separate account lets you track your spending against the account balance.
Use the Shopping App
It’s easy to save money with a little online research. With a couple of minutes of effort, you will find a discount code, loyalty program, or cashback website that tracks your purchases and rewards you for the extra step of navigating through their shopping portal rather than going straight to the big name retailer’s website.
Earn Prizes
While no personal finance expert advocates running up unpaid credit card bills, savvy consumers understand how to take advantage of credit card rewards programs for hotel points, airline miles, or simply cash right in their pocket.
“Use a credit card that rewards you for the things you buy most often,” said Diane Morais, chief executive officer and president of Ally Bank, the direct banking subsidiary of Ally Financial Inc.
There are frequent offers to open a new credit card with a minimum spend, such as the Ally CashBack Credit Card, which provides a $100 bonus when you make $500 in qualifying purchases during the first three billing cycles, and offers two percent cash back at gas stations and grocery stores, and one percent cash back on all other purchases — plus a 10 percent bonus on prizes deposited into qualifying Ally Bank accounts.
If you do not want to open a new account, check your current credit card for promotions or cash-back offers, which can quickly add up to everyday purchases.
With a little homework, savvy consumers can make 2017 the year they strategically spend and save more.
Article provided by StatePoint
