In the world of financial life hacks, there are some that most people are totally unaware of. This can be costing you money each day, as many of these hacks, or loopholes, could be netting you more money than you know. If you have been considering trying to get more out of your money or your investments, then you need to learn about these hacks and how they can help you. Take a look at these financial loopholes and see which of them would be most beneficial to you.
1. Zero Percent Credit Cards
Not everyone has the credit to be able to go out and get a new credit card with no interest, but some people may have a credit card that still has zero interest on it from years past. If you take the time to transfer your debt to this card, you will be legally exploiting this financial life hack and saving yourself the expense of the interest each month. With the fact that the interest on most credit cards is where the majority of each payment goes each month, this can significantly lower the amount of debt you have with each payment.
2. Save for College Through Relatives
When it comes to saving money for college, having the child or the parent saving the bulk of the money needs to be reported on financial aid forms the student has to fill out upon applying for the aid. However, that same form does not ask about any type of contributions from extended family. This is a legal way to allow the student to claim what he or she can come up with financially, plus the student’s parents, without having to add in the difference from other people. If a grandparent or Godparent opens up a 525 savings accounts and contributes to it, it can still be used for education without throwing off any financial aid figures.
3. Set Up Auto-deposits Ahead of Time
One of the best ways to set up your savings is to have the money taken out before you even see it. Sometimes you can even have money set to come out before you pay taxes on it, allowing you to pay less overall in taxes and saving you money. Depending on which types of savings accounts you set up, you can end up earning extra if you have auto-deposit set up as the institution can then depend on the money coming to them as often as it is set up. This also works for investment deposits from some traders, as they often waive some of their fees when you promise to keep to a specific deposit schedule.
4. Paying Insurance Annually
While many insurance companies will give you a discount if you buy your policy as one bulk payment, not every one of them will so you need to do a little research. This is not a difficult financial life hack that can help earn you more money. The biggest difficulty comes with having the entire sum set aside prior to needing to make the payment if it not planned out ahead of time. If you have the lump sum ready to go, then saving yourself that extra fee that is charged to be able to break up your payment becomes free money in your pocket.
5. Get Equity Loans over Personal Loans
Equity loans are one of the most under-utilized financial life hacks around. This is because when most people run into a financial hardship, they automatically think of a quick personal loan because of the almost-instant turnaround time that they can offer. Using equity instead saves you money in most cases, as the interest rates are usually quite low, and most lenders will allow you to get up to 75% of your equity in the form of a loan.
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