Welcome back to the 3rd Part in our 3 Part Saving Money Tips series. In this 3rd and final Part we’re going to give you just a few more Tips and some great advice for saving money a number of different ways. So if you’re ready so are we!
If you have the option to sign up for a flexible spending account at your place of work you definitely should consider signing up for it. What this type of account essentially does is allow you to use your pre-tax dollars to pay for medical care, dependent care and any transportation costs that you incur for medical care. The effect this has is to save you money as the money you’re spending hasn’t been taxed yet. The amount you can save depends on the tax bracket that you’re in of course but, for example, someone in the 15% tax bracket will save 15% on these expenses. If you’re keen on signing up check with your employer beforehand to get the details.
If you’re the type of person that pays off your credit cards in full every single month you should definitely apply for some type of rewards credit card. With this type of card you can get cash back, frequent flyer miles and all sorts of other goodies every time you use your card. If you don’t pay it off in full every month it may not be worth is because usually these cards have a higher interest rate but it you do the rewards, usually totaling 1% of what you spend, can add up over time to something worthwhile. This can go higher if you spend enough too.
Many people end up with a tax refund at the end of the year and liken that refund to ‘extra’ income. News flash; that’s your money and was all along. If you get a big refund every year it basically means that you made an interest free loan to the federal government for the last 12 months. Yay? The better thing to do is to talk to your employers about paying less in withholding taxes or, if you’re self-employed, paying less taxes quarterly. This will in effect give you a ‘raise’ although you won’t have that spring ‘bonus’ next year. (Which really isn’t a bonus at all.)
Our last Tip concerns your mortgage. Many wouldn’t consider refinancing a way to save money but, in fact, if you refinance and get a better rate you’ll have more money every month to pay bills or put towards savings.
And there you have it. Great Tips and advice for starting or increasing your savings and lowering your bills too. Good luck with all of them in 2013, Happy New Year and please come back often in the months to come for much more advice to help you with your finances and credit.