I've always been a good saver. I've got the whole delayed gratification thing down to a science. I'm no hardcore cheapskate, though. You know the type -- somehow these people walk out of the grocery store with $150 worth of goodies for $1.32. Yeah, I don't know how they do that either. I'm not interested in spending my precious free time cutting coupons I'm not going to use anyway. So here are some easy, painless ways to save hundreds of dollars every year by slightly adjusting the things you're already doing.
Use Credit Wisely.
I don't just mean paying off your bill every month. I'm talking about matching the credit card to the purchase. For example, Citibank has a MasterCard that gives a 5% rebate on purchases at supermarkets, drugstores, convenience stores, gas stations, and utilities (including cable) for 6 months, and 1% rebate on everything else. After six months the 5% rebate changes to 2%. There is a limit of $300 in Dividends per year. They also have a Student Card that pays 3% back at all grocery stores, drugstores and gas stations, and 1% back on everything else. There is a $1,000 limit of rebates per year on the Student Card. You also get $0.01 back for every mile that you drive, up to $500 a year. (Total rebates can't exceed $1,000/year). If you get the Citibank Card, you'll also want to check out the Citi® Bonus Cash Center. Purchases made through the Bonus Cash Center don't count toward the yearly cash back limit.
American Express also offers a Blue Cash® card that gives 5% cash back at grocery stores, drug stores and gas stations after your year to date purchases exceed $6,500. Blue Cash comes with a lot of bonuses that earn it a place in your wallet:
- 90-day Return Protection (they'll refund your purchase price up to $300 if the merchant won't take it back. Limit $1,000 in refunds per year.)
- The Buyer's Assurance Plan matches the manufacturer's warranty up to one additional year
- 90-day Purchase Protection against theft or damage.
Discover also offers 5% cashback on gas and auto maintenance with .
Groceries and gas comprise a big chunk of my credit card bills every month. But I spend lots and lots at the big name home improvement stores like Home Depot and Lowes. Fortunately, Chase offers a Business Platinum Rebate Card that gives 3% cashback on all purchases at home improvements stores, building supply stores, hardware stores, office supply stores, gas stations and restaurants. I think I've got just about every base covered with this card! (Limit $40 cashback per billing cycle on these purchases.) You also get the usual 1% cashback on all other purchases (no limit), and as low as 0% APR for up to 12 months on purchases and balance transfers.
I still use my because of their Get More Program.
Speaking of TJ Maxx and Marshalls, I'd wager at least 85% of my wardrobe comes from these two stores. They also offer a credit card that earns 5% back toward gift certificates good at either, (plus HomeGoods, an excellent home decorating store). I rarely spend more than $20 for a pair of jeans, yet I'll still get a compliment or two!
Lastly, I decided to get an Amazon credit card (you get $30 off your first purchase and 3% towards Amazon gift certificates) because I found I was spending quite a bit there every year.
Keeping track of all these cards might sound confusing, but it's really not. My Amazon card is only used at Amazon, and likewise for my TJ Maxx card. I know to use my business card at Lowes, Home Depot, and restaurants, which I don't visit frequently. So the majority of the time I'm really just using my Citibank Card. Make your credit cards work for you! By the way, none of these cards charges an annual fee.
Join a Cash Back Shopping Portal.
Cashback shopping portals like Jellyfish (my favorite), FatWallet or ebates will split their commission with you if you buy through their links. It's a true win/win situation. Not only that, but there are gobs of information and advice waiting for you in the Fatwallet forums.
So here's how I do my online shopping. First, I'll do a little research by reading reviews at Amazon and cnet.com. Once I know what I want, I'll check a coupon site like DealHunting, TechBargains or Retail Me Not to see if there are any deals floating around. Lastly, I head over to Jellyfish (they usually have the highest cash back), FatWallet or ebates to see if they have a cashback link. These three sites have saved me hundreds of dollars, in exchange for an extra thirty seconds of my time. Both offer a $5 sign up bonus.
And don't forget to check eBay! I bought a lot of great North Face stuff on eBay last year. Recently, I joined Big Crumbs, which will give you cash back for shopping on eBay.
Open an Online Savings Account.
Emigrant Direct has an "American Dream" online savings account that pays 2.75% APY on your balance.
TIP: For setting up direct deposit or ACH links with Emigrant Direct, the routing number is 226070319.
These accounts are great -- there are no fees and no minimums, and they link to a checking account that you already have. I effortlessly transfer money between my online savings and checking account when I'm paying my bills online. Since moving my cash from a money market account to an online savings account, I'm receiving ten times as much in interest dividends! I recommend transferring 10% of every paycheck into one of these online savings accounts. It's an easy way to "pay yourself first" and you won't even miss the money. Plus you'll be pleasantly surprised at what a tidy sum will have accumulated before you know it!
That's it for now. I'll be updating with more tips so stay tuned!
