We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to save money and below we offer you some of the best practices. Read up on our tips and find your best way to save money.
Consider Applying for a 0% APR Credit Card
Unexpected medical expenses or car repairs can empty your pocket leaving you with a heavy burden of debt. However, you can stay afloat if you opt to open a 0% intro APR credit card to cover the costs and pay them off over time without paying a penny in interest.
A good credit card with introductory 0% APR on purchases can give you a year or even more of no interest charges. Add here no annual fees and a rewards program, and your money saving plan is ready. Zero interest credit cards may have miles rewards like the Discover it® Miles or Capital One VentureOne card, or may allow you to earn cash back on all purchases, like it does the Capital One Quicksilver card.
With a 0% APR credit card, it is important to remember that once the zero introductory period is over, an ongoing interest rate will apply. So never forget when your 0% APR ends to make sure you will be able to pay off the card balance by the end of the introductory period. Make a plan - calculate how much you should pay each month to reach your goal. Keep in mind that the earlier you make a purchase, the more time you'll have to pay it off at 0% interest. Thus, if you need to pay for a costly car repair or surgery, make sure you do it as soon as you get your 0% interest credit card to have enough room to extend the repayment.
Start Saving Up
Do you spend all your paycheck without leaving a penny in your piggy bank? Putting money aside to save is like living a healthier lifestyle. Money experts recommend put away from 5% to 10% of your incoming money for savings. This is a very common money saving tip that should become your healthy habit. Decide how much you are ready to put away, it can be just $10 a week or $200 a month, but don't put away too much. You do know roughly how much your paycheck will be and how much of it will be used for utilities, food, gas and other expenses. So, it won't take much effort to calculate the amount you can afford to save without straining your finances. Budgeting your paycheck is important when you are saving up for an emergency fund, and international trip or for a large purchase.
Pay On Time and Gradually Improve Your Credit Score
When you put your everyday expenses and bills on a credit card because it gives you rewards, try to pay off the card balance in full each month and never be late with a payment. First, it will help you to maximize your rewards as credit card interest and fees won't eat them. Second, you will save money on interest (if you do not carry balance, you are not charged interest) and fees (penalty fees can be up to $38 or even higher). And third, you will build good payment history and that means your credit score will go up. More than a half of your credit score is payment history and amounts owed. Thus, when you pay on time and never carry a balance you actually help your credit score increase. Monitor your credit score on a regular basis to see how it changes. As a rule, it is enough to check your credit score and report two or three times a year to make sure you are staying on track.
Choose a Credit Card That Sends Reports to All Three Credit Bureaus
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Get a Savings Account to Store Money
A really easy way to start saving money, is to put it in a separate place – you won't be tempted to spend your saved money. Banks offer savings accounts, certificates of deposits, money market accounts, and automatic savings plans. A smart choice can be a savings account as it gives flexible access to your funds if you need and earns variable interest over time. Certificates of Deposits (CD) do not give quick access to funds, but they have a higher fixed interest rate. If you have tendency to spend rather than save, then the automatic savings plan is a perfect option for you. Automatic savings plans will automatically transfer a specific amount that you choose from your checking account into your savings account monthly.
Other Ways to Save Money
If you have a credit card find out if your bank has its own shopping portal. For example, Barclays has Barclaycard RewardsBoost portal where all Barclays members can earn additional rewards on online shopping.