9 Financial Tips That’ll Save You Money in 2018
There’s no denying that 2017 was a strange year, but instead of making the usual New Year’s resolutions, why not figure out your finances instead? Don’t promise yourself that you’ll start working out at the gym, grow your emergency fund instead. Thinking of quitting chocolate? Nope, you should learn how to invest. Here are 9 financial tips that will save you money in 2018.
1. Invest Your Savings Instead of Paying Off Your Student Loans Quickly
If you’ve been considering paying off your student loan debt as soon as possible, you need to know that there is a way to use your debt as leverage to build more wealth than you could without it.
We’re not saying that you should stop making your regular loan payments, definitely don’t. But, if you’re thinking of throwing down extra money to pay those debts back, think again. This money could be used for your emergency fund, a down payment on a house, or for a car.
Or, you could invest it?
Investing does come with risks, but generally, the returns far outweigh the risks. You’d also have money on hand that you can access in case of an emergency situation. Paying off your student loans doesn’t provide you with that same type of security.
2. Start Saving for Retirement Now
If you’ve been putting retirement saving off, you need to learn about exactly what you’re missing out on – compound interest. By the age of 30, you should aim to have a year’s salary already saved up.
Does your employer that offers a company match scheme on your retirement fund? If yes, start saving right now. For example, if you earn $30,000 per year and put 6% of your salary into your 401k, your employer will match that by 3%. By the age of 30, you’ll already have $40,000 in savings.
3. Stop Being Scared of Credit Cards
There are tons of benefits to credit cards – as long as you treat them right. It’s also important to start building your credit as early as possible, your credit score will either be a help or hindrance when you buy a car or rent an apartment.
If you need to repair or build your credit, use a secured credit card without an annual fee. While you might want to stick to your debit card in order to feel safe, it won’t help you build credit and you’ll be depriving yourself of rewards that you can take full advantage of. Instead of worrying about debt, use Debitize which lets you access all the benefits of a credit card with the control of a debit card.
4. It Doesn’t Really Matter Which Rewards Card You Choose
Now that you are ready to embrace credit cards, you’re probably wondering which is the best one for you to choose. It actually doesn’t matter that much, as the cards you’ll be eligible for will have very similar rewards over the course of a year. For example, those that offer a large sign-up bonus will offer fewer rewards and vice-versa. If you’ve already got a Bank of America checking account, it makes sense to choose one of their credit cards as you are already a part of that bank.
