The Best Money Tricks For Smart People

budget This article is contributed by Frank Litt. Budgeting well and saving every pittance of your income is not all there is to smart money management. If you really want to be clever with your cash then you should also be looking at the way you invest your cash, the way you take out loans and the rewards you seek out. Being smart with money means taking the time to learn about your finances so that you are in a better position to take advantage of offers and tricks that other people would miss; it means playing the financial institutions at their own games, avoiding the traps that people fall into out of complacency, and generally not just ‘going with the flow’ when it comes to money matters. People with large amounts of cash understand this and will invest their money in all kinds of smart ways to take advantage of legal loopholes and complex systems that can save them money – and you can do the same. Below are a few examples of how you can work the system and take advantage of smart opportunities to save cash.

Reduce Your Debt With Zero Interest Credit Cards

zero interest card If you have a lot of credit card debt to pay off then it can seem like something of an endless struggle when you’re battling against high interest rates (which go up to 20% in some cases). Fortunately though there is a solution which is to see if you can transfer your debt to another card. Many cards offer 0% interest, or greatly reduced interest, for 6-18 months meaning that you can stop your debt growing for that time at least. There is usually a transfer fee for doing this though, so it will only work for cards carrying a little bit more debt.

Use Cashback Sites

cash back site

Shopping online is a great way to get things for less, but even more so if you use cashback sites like Quidco as well. These sites provide you with links to online retailers, and by visiting the site via those links you get paid a small percentage of the purchase back. How does this work? Well simply, these sites get a commission for referring you as a customer and they offer you some money back as an incentive for you to shop with them. The average customer can apparently make a few hundred a year using these sites – but you have to be patient as it takes a while for the money to be paid back to you.

Use Life Assurance

personal finance If you have any financial dependents then taking out some form of life insurance should be a priority. Life assurance offers a good option here because some of your money will be invested into various interests. This means that when the policy pays out, you’ll get an agreed minimum amount but you’ll also get a percentage of the interest the company made. It’s a mixture of insurance and investment and it can be a great way to avoid wasting the opportunity to grow the money you are paying into your policy. There’s a fuller description in the Tax Planet Magazine.

Take Out a Loan Against Your Home Equity

consolidation loan Equity describes the difference between your total mortgage and the appraised value of your home. If you are a home owner then this is a great way to get a quick loan, because you’ve already been approved for a mortgage (though you’ll need to have your home appraised of course). At the same time interest payments on home equity loans are generally tax deductible – bonus! If you own a property that is worth more than you paid for it, then this could be a smart way to get a cheap and easy loan (just make sure you can pay it back).

Pay Your Rent In Advance

This one is for those who still rent but who also have a bit of spare cash sitting in a savings account. Next time you sign a new contract, speak with the landlord (via the letting agency) and ask if they’d be willing to settle for a few hundred dollars less rent – before they can turn you down, you then explain that you’d be happy to pay them for three months up front. This way they get the security of knowing you’re not going to miss your rent and when it comes to the end of your contract you’ll have the nice bonus of not having to pay anything for the last three months. Author Bio: Frank Litt is a part of the team at Bentham IMF, providers of commercial litigation funding. Frank loves playing tennis and often takes part in amateur tennis tournaments.
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