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...

A year ago, I decided that as a birthday gift for myself, I would get a one year certificate of deposit. After doing a little research, I found one that offered a 2% interest rate for a minimum deposit of $2,000. Well, I definitely wasn't going to make a fortune with this rate, however, I knew for one year I'd have $2,000 put away that couldn't be touched ( without a penalty ) and it would grow a little during that period. Since penalties are a no-no, I moved forward, confident I would not touch that money for a year. What is a Certificate of Deposit (CD)? A certificate of deposit is defined as "a certificate issued by a bank to a person depositing money for a specified length of time." The money earns an interest rate premium in exchange for investing for that set period of time. Should I get a CD? Perhaps you have a little extra money sitting aside and you are trying to figure out what to do with it. If all your bills are paid, your emergency fund is fully funde...

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...