Debt Free Life Hacks: Managing Money Like a Boss

Have you ever really looked at your credit card bill? Carrying a balance, even a small one, can add up over time when you consider the interest. Sometimes, statements will include your balance, the minimum payment due, the interest/intersest rate, and the amount of time it will take to pay off the debt if you only pay the minimum - granted, you don't make any new purchases. It can be a little scary and even more reason to pay it off sooner than later.  Take a look at the example below: It’s a good idea to pay attention to your bill - in this case, the creditor is very transparent. Here’s a card with a relatively small balance, a high-interest rate (25.24% ), and a disclaimer. Highlighted in green, it states, “ If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance .” Given the facts - it would be in my best interest to pay more than the minimum - even if I can’t pay it all. Why? Because paying just the mi...

There are two types of people in the world. Those who pay interest and those who EARN it. Which are you?  Me, I'm no fan of paying interest. That's why I try to keep debts to a minimum, if not nonexistent. I recall having a car loan twice in my life. The first time the interest was close to 6% and the second time, just under 3%. That 3% difference is a big deal. While I paid the first note off early and the other on time, the one with the higher interest rate still costed me more as far as what I paid in overall interest.  So what is the point?  Do not get caught in the neverending car loan cycle. I've heard countless stories on how people have long-term finance agreements, paying small amounts monthly, but when you look at what they pay in interest over the life of the loan it'll make your jaw drop. I mean some end up paying for the vehicle twice once you factor in the interest. Oftentimes those small notes are not even worth the trouble.  Instead of paying interest...

Am I the only one who's looked at a bank statement only to find an interest payment in the amount of 8 cents or lower? What a joke! Not cool bank, not cool! 😒😒 Say you've established an emergency fund and have it sitting in a checking/savings account. Generally, these accounts earn little to no interest. Once you've saved a decent amount, maybe you're ready to start earning some interest.  First, you want to start by doing a little research. A great place to begin would be with your current bank; find out if your bank offers high yield savings accounts or if another bank would be worthy of your time. Money Market Accounts are also more likely to pay higher interest rates so check into those too.  Keep in mind is that often the high yield ( high interest ) accounts come with a number of requirements that you must meet in order to have monthly fees waived. This is extremely important because even if you're earning more in interest, you could be losing it...

The Potential Curse Ever been tempted to purchase an item because they promise 18 months same as cash? Or perhaps you're shopping at your favorite department store and the cashier asks "would you like to apply for a credit card and save 25% percent on your purchase today?". Desperately in need of a new car, have you walked into the dealership focused solely on getting the monthly payment you can afford? Warning!! Proceed with caution.  What sounds like a great way to SAVE money could actually COST you in the long run. The truth is any of these situations can work in your favor or have a totally opposite effect. What comes into play is interest rates. Bankrate.com defines an interest rate as: the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account. Why d...