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6 Ways To Squeeze Free Money Out of Your Credit Card

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6 Ways To Squeeze Free Money Out of Your Credit Card

It’s not every day your credit card company gives you money for free. But here are 6 bank beating strategies, and the landmines to avoid, that can help you milk your credit card for all it’s worth, on the bank’s dime.

1. 0% Balance Transfers

This strategy can save you thousands! A balance transfer is simply when you transfer high interest balances from one or more credit cards onto another credit card with a lower interest rate.

Banks are hungry for credit card balances, because they earn interest income from them. Many banks offer promotional interest rates of 0% for 12-36 months in the hopes that you’ll either miss a payment and your interest will get jacked to 19.99%, or you’ll keep your balance with them after the promotional period expires and they’ll jump your rates to 19.99% thereafter.

But if you follow the rules of the game, you really will pay 0% interest – a huge savings opportunity. For example, if you have $7,500 in credit card debt at 19.99% interest, a 0% balance transfer will save you more than $1,500 a year in interest costs alone!

Don’t be one of the fools their counting on, and you’ll be laughing your way to borrowing at 0% rates! Just make your payments on time, and find another balance transfer offer before the current one expires, and you’ll never pay interest on your credit cards again – a real bank beating strategy.

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2. 0% Interest Rates on New Purchases

If you know you’re going to make a purchase but you can’t afford to pay for it right away, let the banks front you the cash at 0%. Whether you’re buying a new sofa, dishwasher, floors or even a vacation there are tons of 0% financing offers in the marketplace. In some cases, you may even find offers where you’ll have no interest AND no payments for 12 months or more!

Just remember, the banks are betting on you missing a payment. In many cases if you do, you’ll not only have to pay interest for the payment period you missed, but for all previous payment periods in which you received 0% interest! Our recommendation is to always make your payments via pre-authorized debit, so you’ll never have to worry about missing a payment again.

Make your payments on time, and you’ll be laughing you’re way to free money.

3. Interest Free Grace Periods

Almost all credit cards offer some type of grace period, where you won’t have to pay any interest between the time you use your card and the time you have to pay back the credit card company. It can be a great tool to manage cash flow – especially for the self-employed and entrepreneurs.

In most cases credit card companies will give you a 21 day grace period from the time you receive your credit card statement. In some cases, you may get as long as 55 days (small business cards)!

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That means banks are giving you close to a month or more to pay your bills interest free!

But there’s a catch many people don’t know about. If you’re already carrying a balance, or if you’ve been late during the year, you’ll lose the privilege of your grace period, and you’ll start paying interest on new purchases the minute you make them.

4. Juicy Welcome Bonuses

Banks are competing hard for your business – especially if you have good credit and spend a fair bit on your credit card.

In fact they’re competing so hard, their willing to pay you to try their credit card, in some cases as much as a free round trip flight to Europe!

With credit card welcome bonuses as high as 100,000 miles, you can really milk the insatiable appetites and deep pockets of the banks. Think about it, just for signing-up for a credit card, you can fly from New York to L.A. absolutely free. Name another product that offers an incentive as big – you can’t.

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In fact, it’s such an effective strategy, you can apply, collect, and redeem on multiple different cards throughout the year. Just rinse, wash, repeat your way to free goodies and travel over, and over again on the bank’s dime.

5. Annual Fee Waivers

Despite offering hefty welcome bonuses, some banks will waive the first year annual fee as well – all in the hopes of removing every hurdle you may have to trying out their card. That’s a value of $120 to $150.

Think about it, you’ll get a free flight or hotel room for signing-up for the card, without having to make any commitment to the bank, at all. It’s house money.

Not only that, for an entire year you’ll get things like free lounge access, car rental and trip cancellation insurance, foreign exchange with no fees, and of course rewards on all of your credit card spend  absolutely free!

The bank is totally trying to buy your loyalty, so what of it? Be a free agent and take advantage of as many first year free credit card offers as you can – it will cost you nothing. Just make sure you have the credit to do it.

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6. Reward Stacking

Banks are willing to pay you to make purchases with their credit card. Whether, you’re getting cash back, air miles, or points, if you don’t carry a balance month to month, there is no excuse not to take advantage of free rewards.

On average, credit cards offer 1%-2% in rewards for each dollar you spend on your credit card. However, in some cases, you can hack your way to 5% cash back by combining different cash back categories from multiple cards in categories such as gas, grocery, restaurants, pharmacy and even with individual retailers such as Amazon. Why pay with cash or debit when the banks are willing to literally hand over money to you, just for your presumed loyalty?

Just make sure you don’t get in the habit of spending more, just to get rewards. Also, if you do carry a credit card balance from time to time, you’re far better off with a low interest rate credit card, than a rewards card – always.

So that’s it folks. The banks are beating at the door to get inside your wallet. They may have laid a few land mines in the fine print, but follow the right path and the prize is yours!

Featured photo credit: Credit-Cards / CC0 Public Domain via pixabay.com

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Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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