The desire to save money is an admirable New Year's resolution. But how realistic is it to sustain? If you’re like most people, saving more of your money is easier said than done. Here are three easy ways that you can save, and even earn, a little extra cash in 2024, courtesy of someone who is in the know—a credit union certified financial counselor.
“Part of the difficulty faced by many well-intentioned savers is that they try to save by cutting back on expenses or simply depriving themselves,” says Amie Hinton, a Certified Financial Counselor from Northrop Grumman federal Credit Union (NGFCU). “Reducing expenses is possible, but it is difficult and hard to sustain… you have to pay your bills, right? Also, denying yourself of pleasures, like going out for a meal, can also be quite difficult… you have to live a little.”
“You have to find ways to make your money work for you and that require little to no effort,” urges Hinton. Here are three savings hacks that meet the criteria:
Savings Hack #1 – Use cash back debit or credit cards
You’re already spending your money, why not earn cash back on it? “Most financial institutions offer some type of cash back rewards card that literally give you cash back on your purchases. Most of these cards don’t require any extra effort or expense, you just need to get in the habit of using the card for everyday expenditures, such as recurring bills,” says Hinton. “You can then invest those cash back rewards into an interest-bearing savings account.”
Savings Hack #2 – Put your money into term savings accounts
You might have a bit of money just sitting in your checking or regular savings accounts, where it earns little to no interest. It could be a couple of thousand dollars or so that you always have as a reserve. “Why not invest that money in a federally insured term savings account, like a credit union terms savings account that earns a high yield? That money is just sitting there anyway, why not let it earn with no risk?” reasons Hinton. “You can choose a short term like 6 or 12 months. Most financial institutions are offering great rates of return these days, so as a saver, you are at an advantage.”
Savings Hack #3 – Consolidate debt
Most people think that refinancing is for home, auto, or student loans, but you can refinance almost any type of loan. “Some folks pay 20% or more on a revolving loan, like store credit cards or personal loans. Even though interest rates have risen, that’s still high. You can easily consolidate those debts into a lower-interest rate loan,” adds Hinton. “For example, you can refinance consumer loans into a bill consolidation loan, which typically has a significantly lower interest rates than credit cards. Or if you own a home, you can use a home equity loan, which can have some of the lowest loan rates, to pay off that high-interest rate debt. You can invest those savings.”
Hinton, along with other NGFCU representatives, offer free savings consultations. “We’re a not-for-profit credit union, which means that we work for you, our member-owners,” says Hinton. “That’s why it is in our best interest to work for your benefit.” Click here to learn more about Hinton and to contact her.