6 Money Tricks for Big Savings in 2015
Frugal shopping is often associated with coupons, deals and everyday purchases. It tends to take center stage when it comes to money saving tips. While extremely useful, sometimes the smarter choice is to focus on saving on big purchases and tightening up money leaks instead. On that note, here are six money tricks that will help you save more this year:
1. Keep big wins in mind.
Crystal Hammond of SophisticatedSpender.com is reminded daily of the savings she gets from her credit union. She says she got a great rate on her auto loan, which she thinks about every time she drives her car. The loan process also saved her time because she was able to complete it all online.
2. Scout out the best deal for lines of credit.
Casey Fleming, author of "The Loan Guide: How to Get the Best Possible Mortgage," is also a fan of credit unions when it comes to equity lines. He explains that credit unions usually offer the best rates and terms, or at least consistently among the best. He also sometimes sends clients to community banks, which offer competitive rates, too.
3. Keep it simple.
The blogger known as "J. Money," the creator of the popular BudgetsAreSexy.com blog, encourages people to consider apps that help simplify finances. "My #1 finance app is, hands down, USAA's. Not only do they have the best customer service on the planet, but they pioneered the ability to deposit your own checks via cell phone." He's been a proud member for over a decade now.
4. File your taxes on time.
While it would be glamorous to win money on "Who Wants to Be a Millionaire" or time the market and invest in some perfect stock, choose to get ready for tax time now. Kay Bell, journalist and website owner of the blog DontMessWithTaxes.typepad.com points out that if you file late, you could face a tax penalty. Another costly mistake is providing the wrong social security number or tax ID. This could send a red flag to the IRS to disallow your tax credit or deduction claim. Being extra careful when filing and handing things in early generally pays off.
5. Be deliberate when you shop.
Dorethia Conner, author of the forthcoming book "Money Chat," explains that when you are trying to get out of debt, you have to stay out of the shopping mall. Buy only the needed items on your list. Once you make your purchase, make a beeline for the exit. Window shopping can turn into spontaneous spending which can foil your plans.
She also recommends avoiding the school fundraisers for candy, candles and other items that co-workers peddle around the office. "It's okay to politely decline as long as you don't expect them to participate for your kids. These can definitely hurt your debt payoff goals -- it seems there's a new one each week," Conner says.
6. Exercise your right to say no.
Looking to have a better year financially? Forget co-signing a loan for a friend or family member. Valerie Rind of the website ValerieRind.com and author of "Gold Diggers and Deadbeat Dads" points out that the bank or lender requires a co-signer because they don't trust the borrower to pay them back. "Why do you think you know better? Even if your cousin Greg is the exception rather than the rule and faithfully pays on time, co-signing his loan impacts your credit," she says. Co-signing can also reduce your ability to get a mortgage or other credit if need be. Rind explains that this type of big obligation often stays on your financial books for years.
While frugal shopping is associated with everyday shopping expenses, it pays to think twice when making other types of major financial decisions, too. Prioritize your spending and decide to say no when it's not in your best interests.
Couponing and deals have their place when it comes to making smart spending decisions on a regular basis. You can benefit from steep discounts. But it also makes sense to pay close attention to money decisions that don't happen as often like co-signing a loan, filing your taxes, buying a car and more. Give careful consideration to all of your financial decisions and use the tips mentioned above to guide you.
Karen Cordaway is a teacher and writer who currently shares money saving ideas on her website, MoneySavingEnthusiast.com.