You’ve heard it before, “To build wealth you need to live below your means.”
All financially successful people agree on the biggest money hack there is: you need to spend less than what you make each month. The simplest and surest way to do this is by adopting proven money-saving tips to stretch your budget and get your spending under control. Other strategies include increasing your monthly income and using your financial resources to generate more money.
Regardless of your current financial situation, you can make a huge progress in your financial health. Below are 5 money hacks every savvy mom absolutely needs to know:
1. Take Online Training To Get a Higher Salary
This is the best money hack as it can significantly boost your finances. No matter what kind of job you have, there is a very good chance you can increase your salary by upgrading your professional skills. If you are not able to take time off work to study at a college, you can definitely learn new skills online. Online learning is nothing new today, and many busy people take courses online to learn something that can help them advance in their careers.
One great source of top-rated educational programs is the Coursera platform. If you are new to this educational site, you will receive 50% off your first course. Select the course that will boost your skills and voila! You can take programs online developed by top universities in the world. Once you complete the course, highlight your new skills on your Resume and mention to your boss that your new knowledge can benefit the company.
2. Pay Your Debt Faster With a Zero-Interest Credit Card
In my post Are You Ready To Live a Debt Free Life? I described 7 steps to living a debt-free life, no matter the circumstances. Whether you decide to use the Debt Snowball Strategy or need to pay off one credit card or a large loan, transferring the whole amount to a zero-interest credit card is a great strategy that worked for me.
All you need to do is to apply online and request to transfer your whole balance once you get approved. Instead of paying 18-20% interest fee on your current debt, you can lock in a 0% interest rate for a significant period of time. That should you give you enough time to make bigger payments towards your debt, rather than bank interest fees.
3. Accumulate Maximum Rewards With a Good Credit Card
Rewards add up very quickly and are basically free perks you get when you make all your purchases. The key here is to get the right credit card. There are a lot of options today when it comes to rewards cards, but not all of them are created equal.
Aim to get a card with no annual fee that offers collecting rewards at a place you spend most of your money. A lot of cards today offer travel points, but unless you travel quite a bit, it might not be the best kind of reward for you and your kids. Grocery stores are a good example. As mothers and caregivers, we want to make sure our children are well-fed, so we tend to spend quite a bit of money on groceries. PC Financial in Canada offers some attractive points and reward cards redeemable for free groceries in their stores.
4. Collect Dividends On All Your Bank Accounts
If you are still banking with a bank that collects monthly fees on your chequing and saving accounts you need to stop now. Close all your accounts and start banking where you get paid on every dollar you have in your account. This is the way wealthy people bank to make the most of their money. Do a quick online search on a bank that offers free banking and pays interest on every account you have with them.
If you are in Canada, I can recommend banking with Tangerine (read why in my post here).
It offers free chequing, saving, TFSA, and RRSP accounts, and pays dividends on every single one of them. While most banks offer a tiny 0.6% interest rate on TFSAs, you might get up to 2.8% rate with Tangerine during their special promotions! This will allow you to grow your savings much faster. Your daily chequing account accumulates an interest too. It’s only 0.15% but every bit counts in a single mother’s wallet. When opening your account with Tangerine, don’t forget to claim your $ bonus cash deposit as a new client.
5. Be The Boss Of Your Money
Last, but not least, – become the boss of your money by creating a budget that works for you.
This is where it all comes together and allows you to track your finances and strategies that work for your personal situations and needs. I can promise that once you get a taste of what it is like to be the boss of your money, you will begin a new chapter in your life. One that leads to greater financial prosperity and freedom.