Talk about being sneaky...tip #2 takes what you are already doing and makes it budget positive: switch your credit card use* to a cash back rewards card**. When the cash rebate comes in the mail, stick it in the bank! This is as "set it and forget it" as it gets for household financial management ideas.
*Caveats always apply, right? Credit cards can be a good thing when used to simplify and expedite purchasing, consolidating records, getting buyer protection / warranties, etc. Credit cards are not a good thing when you carry a balance and start paying interest.
**Not all cash back reward cards are created equally. In my own use, the Costco member American Express has been great - no limits on reward accrual, "bonus" accrual rates on things like gas, travel, and groceries, and generally a base rate of 1% back on everything else. I also prefer cash back to "points" for a variety of reasons, but primarily because points encourage further consumption and cash can easily apply to savings.
Did you miss tip #1? Find it here.
David R Wattenbarger, president of DRW Financial
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