The words “budget” and “money” may seem daunting, but having a firm grasp of both will help pave the way for more financial freedom in the long run. Read on for some of my favorite simple money-saving hacks!
1. Pay Off Credit Card Balances Right Away
There are debates about paying off credit card balances in full versus carrying a balance to help improve your credit score. In actuality, your credit score is correlated to your payment history, so as long as you make payments on time, your credit score shouldn’t be negatively affected.
On the other hand, by making minimum payments, you will pay interest on the remaining balance that carries over to the next billing period. In the long run, you will actually rack up more debt, which can take years to repay. This is why paying off your balance every month helps you save money since you won’t be making unnecessary interest payments.
2. Use Mobile Payment Services
Although most of us use mobile payment services like Venmo or PayPal for its convenience, there’s actually a hidden benefit that we don’t immediately see. When going out with a group, splitting the bill can often lead to some of us paying a bit more when there’s cash involved since we don’t usually carry change.
Though it may not seem like a lot of money at a glance, it can add up quickly. With a mobile payment service, you can pay your friends or family members back an exact amount, which can help save lots of money in the long run.
3. Cook Your Meals
This is a pretty straightforward hack. Cooking at home helps to save money since you can prepare food in bulk, which lasts a few days. For some of us that have schedules that don’t really allow us to cook, eating out is an appealing option, but try to limit how often you do it in order to keep costs low.
4. Make Your Own Coffee
The same thing applies to coffee! It can be tempting to run to your local coffee shop to pick up a latte, but the cost quickly adds up. A medium-sized coffee is about $4 a cup, whereas a bag of coffee beans is only $15. Plus, making coffee at home can be a fun hobby too!
What are some of your favorite money-saving life hacks?