• Tue. Apr 23rd, 2024

4 Unconventional Money Tips On Reddit That Actually Work

1. Apply credit card rewards toward your long-term goals

Chase Freedom Unlimited®

  • Rewards

    Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases

  • Welcome bonus

    Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.

  • Annual fee

  • Intro APR

    0% for the first 15 months from account opening on purchases and balance transfers

  • Regular APR

  • Balance transfer fee

    Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

  • Foreign transaction fee

  • Credit needed

In addition to applying credit card rewards toward your financial goals, you can also maximize rewards by using them for purchases you already know you’ll make (rather than using them as an excuse for additional spending). If you plan on carrying a balance (which is almost never a good idea), any rewards you earn will be negated by interest fees.

Marguerita Cheng, a CFP at Blue Ocean Global Wealth, says treating her kids is an important goal for her. She cashes in her rewards for gift cards so her younger kids can purchase something for themselves. “My son and daughter were happy to be able to spend $200 each on Nike gear,” she says.

2. Save your savings

We all love a good deal, but scoring an item on sale gets even better when it helps boost your savings. The next time you buy something on sale, move that money you “saved” to an actual savings account. For example, if you buy a pair of shoes originally priced at $100 but are on sale for $80, take that $20 you saved and put it into your savings account.

Walsh identifies this technique as a powerful way to save money without having to think too hard about it. And Ramona Ortega, founder and CEO of fintech company My Money My Future, agrees. “Micro money habits are part of creating better habits all around,” Ortega says. “This is one way to allocate those ‘savings.'” Walsh just adds the caveat to make sure you don’t use sales as a reason to buy things you don’t need.

Where you stash your savings matters, too. Online high-yield saving accounts offer much higher returns than your traditional brick-and-mortar savings accounts, plus they’re accessible if you ever need to tap into your funds. With the below accounts, you have the chance to earn a strong APY north of 4%:

LendingClub High-Yield Savings

LendingClub Bank, N.A., Member FDIC

  • Annual Percentage Yield (APY)

  • Minimum balance

    No minimum balance requirement after $100.00 to open the account

  • Monthly fee

  • Maximum transactions

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

UFB Preferred Savings

UFB Preferred Savings is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    No max number of transactions; Max transfer amounts may apply

  • Excessive transactions fee

  • Overdraft fees

    Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available

  • Offer checking account?

  • Offer ATM card?

Bask Bank Interest Savings Account

Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

3. Buy basics on sale in bulk

Consider buying in bulk everyday items you routinely use (think toothpaste, deodorant, etc.) whenever they’re discounted. It’s worth pointing out that this is actually advice touted by Mark Cuban himself.

This is a good tip because, as Walsh points out, buying essential, non-perishable items in bulk for less money can be a great way to reduce spending and save trips to the store. “Fewer trips to the store not only saves time but help you avoid the temptation of walking around the store while trying not to waste money on things you don’t need,” Walsh adds.

Plus, given you’re going to end up buying these basics again when you run out, you might as well get them for a deal while it lasts.

4. Think of expenses in terms of hours of work

Bottom line

Not all (or even most) personal finance advice you find on social media is good. But the four tips above have been vetted by financial experts and can help you reach your goals.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.