Skip to main content

5 Financial strategies that credit card companies do not want you to know about

For some people saving money is like getting a root canal from a dentist - not much fun, and very painful!

And that's exactly how the banks that offers credit cards like it - the more you use your credit cards, the more money they make. Because the more you use your cards the more likely you are to miss a payment, go over your limit, or simply just start carrying a balance every month. All of which make them money!

So if you are a spender, and you like using your credit cards, it's time to change some of your habits. This will make YOU more money so YOU are the one getting rich, not them. If you need a little help making this change, here are 5 financial strategies that credit card companies don't want you to know about:

1) Use the envelope system for big purchases

Not sure how the envelope system works? It's easy! Just get an envelope - any size or shape will work. On the outside of the envelope you should write down what it is that you want to purchase and how much it costs. And then simply start putting cash in each week until you have enough to buy what you want using cash. But these days it is so easy to use credit cards to but what you want right away -and then worry how to pay for it later. This strategy will keep you out of debt, save you lots in interest, and give you the satisfaction of buying in cash. I know it's no fun waiting to buy something exciting like a big screen LCD television, or a new refrigerator. But once you do it you'll enjoy handing over a big pile of cash!

2) Don't pay full retail price!

There are several ways to avoid paying full retail price. And new popular items usually can't be bought at a discount. But for many retail items you can save lots of money if you take the time to use one or more of these strategies. If you like to buy in a store, you can usually find coupons in your local newspaper. Or you can sign up for the store's newsletter, which often contains coupons or notifies you of discounts. If you like shopping online, you can usually find coupon codes that will give you either a discount or free shipping. And finally, if it's an item that is available in several different stores, do some comparison shopping to find the lowest price.

3) Buy used whenever possible

I know there are nothing like buying something new, opening the box, and seeing a bright, shiny product for the first time. We all like that feeling! But if money is tight you can usually find used products that are in great shape, and save up to 50% or more. I've found exercise equipment, sporting goods, appliances, and furniture by using Craigslist. You can also find great deals on brand name clothing in consignment shops - but I'm not a big clothes shopper so I don't do that often. When shopping on Craigslist I don't usually buy an item unless I can see a picture and ask a few questions before I hop in the car and start driving. But you can save LOTS of money buying used stuff!

4) Put away all your credit cards except for one

If you use your credit cards too often and debt is starting to pile up, this money saving strategy is a must! Why keep only one credit card? So you can use it for emergencies. Not for shopping sprees. There is no quicker way to get yourself into financial trouble than to start using your credit cards on a regular basis. Once you start carrying a balance, then the interest rates start building and building - and before you know it, you're struggling with debt! So one of the best lessons you can learn is that credit cards are NOT the same as cash (unless you really do have enough cash and you just want to use the cards for convenience, store discounts, or rewards).

5) Pay yourself first

Okay, this sounds really boring and silly to some people. But it is the best way to put away money over time - and time is your best friend for growing a large nest egg! Whether you put money in a jar, an envelope, a safe deposit box, a savings account, or an investment fund, do this first - then you can use the rest for living expenses. Even if you can only afford to put away $25 each paycheck, before long your savings will grow into something substantial. It would be even better if you can put in more. The key is to save money first so you are not tempted to use it. Don't worry so much about the interest rate. And it's alright if you don't know much about investing. Drive down to your local bank, open up a separate account, and have money put into it automatically from your savings account, checking account, or paycheck. And watch your money grow!

Sure, it would be real nice to win the lottery and not have to worry about money. But that's not a way to get rich. And it is certainly not a way to save money. Using these tips you'll be on your way to a more frugal lifestyle!


Kris Bickell offers tips for saving money, repairing your credit problems, and getting out of debt faster. Learn how you can get control of your finances and become debt free.

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects