As you plan those summer barbecues, pool days or dinners, Discover’s bonus categories for the third quarter of 2024 can be a big help.
From July 1 through Sept. 30, 2024, holders of eligible cards like the Discover it® Cash Back and Discover it® Student Cash Back can earn 5% back at grocery stores and Walmart on up to $1,500 in combined spending for the quarter. (Activation is required; other purchases will earn 1% back.)
Here’s what you need to know to make the most of these spending categories.
Discover bonus rewards categories for 2024
Q1 (Jan. 1–March 31)
Restaurants.
Drugstores.
Q2 (April 1–June 30)
Gas stations/EV charging stations.
Home improvement stores.
Public transit.
Q3 (July 1–Sept. 30)
Grocery stores.
Q4 (Oct. 1–Dec. 31)
TBD (In 2023: Amazon, Target).
A closer look at Discover’s Q3 bonus categories
For the third quarter of 2024, here’s what will qualify:
Grocery stores
Eligible grocery store purchases that earn the bonus rate include those made at supermarkets, meat lockers, bakeries, small grocery stores and grocery delivery services. Purchases that won’t qualify for this rate include those made at Target, convenience stores, wholesale clubs and discount stores.
Walmart
During this quarter, you can also earn the bonus rate on purchases made at Walmart, whether in store or online, at Walmart discount stores, Walmart Supercenter stores, Walmart Neighborhood Market stores, curbside pickup, Walmart+ and Walmart gas stations. Purchases using Walmart Pay with your eligible Discover card will also qualify for the bonus rewards.
Purchases made through an individual merchant or a standalone store within physical Walmart locations might not be eligible, however. Other purchases that won’t qualify include Sam’s Club purchases, purchases made through affiliates of Walmart.com, and purchases made outside the U.S. Terms apply.
Maximizing Discover’s Q3 bonus categories for 2024
You can make the most of the bonus categories above by checking off the items on this list:
Activate the bonus categories by logging into your Discover account.
Use your Discover card whenever you shop at the grocery store or at Walmart in-store or online.
Keep track of the amount spent to know whether you’ve reached the $1,500 spending limit. An automated tracker available when you log into your Discover account can help.
Considering the Discover it® Cash Back?
The Discover it® Cash Back card is ideal if you can keep track of the quarterly changing bonus categories, remember to activate them and pay off your credit card bill in full every month. Otherwise, the card’s interest rate will outweigh the value of its rewards.
The card’s features include:
Annual fee:$0.
APR:0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-28.24% Variable APR.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Welcome to the 30 Day Money Challenge!
Today, you will learn how to make your money work for you. You don’t have to be a millionaire before knowing these things, but it’s important for everyone who wants financial stability.
Remember these keywords: saving and investing? This is where they come into play for long term success.
It’s not too late to make the right financial decisions.
But, finances are complicated and intimidating for most people so it can be hard to get started.
The 30 Day Money Challenge is here to help with that.
This 30 day financial challenge will help you create a strategy that can save, spend less, and make more by the end of this month!
Are you ready to dig into this month-long money challenge?
What is the 30 Day Money Challenge?
A money challenge is a plan for how to make your finances work better.
It can be as simple as spending less or eating out less, or something more complicated like saving up for retirement or buying a house.
During this month’s timeframe, you will dig into all areas of your finances to make sure you are on track to reach your money goals.
If you do not have financial goals, then we will make sure you do at the end of this money challenge.
I’ve seen a lot of spending challenges out there that are basically just a saving money chart telling you how much money to save each day to save $1000 or $500 in one month, but they don’t tell you how to save the money. That is where the rubber meets the road and this challenge will motivate you to improve your money habits.
Overall, you will learn more about your finances than you did previously.
Why a Money Challenge is Important
A 30 day challenge is a great way to get yourself motivated and focused on saving money and improving your money management.
The goal is not enough, you need the why behind it in order to see your savings grow.
This can be as simple as:
– Setting up a direct deposit from your paycheck to an account you control and only spending what’s in that account.
– Spending less on impulse buys.
– Cutting back on luxury items to save money.
– Living more in cash and less in credit card debt.
You can also take knowledge in knowing the number of our readers who have taken the challenge to improve their money management skills.
3 Steps to Start the Money Challenge
The 30 Day Money Challenge is a simple process that starts with 3 steps.
Your reward for participating in the challenge is pretty appealing, but the process can be hard for some.
So, know these steps before you start the challenge.
1. Pick a Time
While there is no good time to start, you need to find a time when you have the highest probability of success.
Starting the money challenge during the holidays will leave you defeated. Maybe starting as a New Year’s Resolution. Or during a quieter time throughout the year.
You need to find the “right” time because you will have to dedicate at least 10-30 minutes per day. However, the longer you put it off, the less likely you are to start.
2. Be Prepared
More than likely, you will be ripping off the band-aid on some old money failures and defeats. This is common.
You have to be mentally prepared to overcome these negative feelings towards money in order to find that breakthrough moment.
3. Accountability
Find someone to keep you accountable during the challenge.
There will be points when you want to accept defeat and run back to your old money ways. It’s great to create a support system for managing money wisely.
If those old money habits didn’t serve you well before, then how will they serve you moving forward.
You need to keep your eye on the prize!
Thirty Days of Money Challenges
A 30-day money challenge is a popular type of personal finance experiment in which participants take a pledge to review their finances and overcome any obstacles that are preventing them from long term financial stability.
The goal is to teach people how quickly they can change the trajectory of their personal finances before they snowball into a serious money problem.
Day 1 – Get Organized
If you don’t have an understanding of how many accounts you have, credit cards you have open, or debt payments that are due, then you must get your personal finances organized.
Start here to learn how to organize personal finances.
Day 2 – Understand your Income
If you do not know how much do I make a year, then you must figure that out first.
It is impossible to manage money if you do not know how much money is coming in.
Also, consider all types of income sources – earned, passive or investment.
Day 3 – Understand your Expenses
Understand where your paycheck is going. When you understand how much of your money is going to things like rent, utilities, and mortgage, you can make better decisions about spending.
This is not the time for “this-is-where-I-hope-my-spending-goes;” this is the true reality of how you spend money.
Day 4 – Pay Yourself First
This is a must for long-term success. Every time you get paid, you need to pay yourself first. Put a percentage of your paycheck into savings each month before anything else is spent on non-essential items.
We suggest starting with at least 5% of your income. Even better, you want to start with 20% of your income.
You must cut your fun spending until you can save money first.
When saving becomes an automatic habit, start investing through high yield accounts like IRAs and 401(K)s.
Day 5 – Automate your Emergency Savings
Set up a transfer to put $50 into your Emergency Fund every time you get paid.
Learn how much you need in your emergency fund. Remember, the goal is never to use your emergency fund, but you always want one – just in case!
Day 6 – Create Money Goals
Figure out what your financial goals are and how much they will cost over time, then come up with a strategy to achieve them.
You need to make a plan to reach your money goals.
If you skip this step, you may be lucky and still reach your goals. But, you can find better prosperity but writing out those money goals and maybe even using a vision board.
Learn how to create smart financial goals.
Day 7 – Budget Time
Crazy! I know. Most people would think that creating a budget would need to be first. But, it isn’t. You need to figure out days 1-6 first before you dig into budgeting.
Begin tracking your expenses on paper or online as soon as possible. Here are the best budgeting apps available.
The goal with the budget is to focus on saving first, then your expenses. you must spend less than you make.
Day 8 – Make More Money
Come up with ways to generate more income. Period. You need to make your money work for you.
You need to learn how to make your income work for you by creating streams of income outside of your primary work or “earned” income.
Theoretically, if multiple streams of revenue exist at your full-time job, you can work fewer hours than necessary.
Ways to Make Money:
Day 9 – Enough with Debt
Debt will hold you back. Period.
You need to recognize that paying off your debt is the best thing you can do for your finances. However, during this 30 day financial challenge, it is not the time to focus on paying off debt.
Calculate the total amount of debt (except mortgage).
Put down getting out of debt as one of your money goals and the timeframe to make it happen.
For now, don’t take on more debt, and make sure you’re paying the minimum on your credit card balance.
Day 10 – Understand Investing
Investing is a way of giving your money the opportunity to work for you. In other words, you are using what you have now in order to make more out of what you have in the future.
This is the first step to earning investment income that will fund your lifestyle.
Typically, most people associate investing in the stock market. Many people invest with their 401ks or IRAs. However, you can invest your personal income as well.
What if you could earn a return on that opportunity cost? For example, what if you invested the $10 in your wallet and it grew to be $20?
Learn how to start investing.
Trade and Travel 2.0
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
Day 11 – Control Excess Spending
Every time you spend money, it is an opportunity cost to your future self. You are trading away your future self’s money to buy something today.
Is that what you want?
More than likely, no.
Learn how to drastically cut expenses.
Day 12 – Autopay your Bills
Consider setting up an autopay feature for your bills. It can help you avoid late fees and will have a steadier flow of money coming in.
This will help you to make sure you have the cash flow available to meet your expenses.
Day 13 – Avoid Fees
One of the best ways to save money is by avoiding fees.
If you have a credit card, consider switching to one with no annual fee or an introductory offer that expires after one year.
Check your bank and credit card statements for any fees you may not be aware of.
If there is a fee, call the company and negotiate to have it removed or reduced.
Day 14 – Automate Retirement Contributions
You should automatically make a certain percentage of your salary go to a 401k or other savings account, and the other percentage goes to your checking account for spending money.
This is something your human resources department can help you set up.
Day 15 – Increase your Retirement Contributions
Now, that you have automated your retirement contribution, you want to increase you much your contribution each year until you are maxed out by IRS limits.
Start to increase your retirement contributions by 1%.
Set a five-year goal to fully max your retirement contributions!
Halfway Point!!
You’re halfway through the 30 day money challenge!
Keep up the good work and keep reaching for your goals.
You’ve made it this far, so just imagine what you’ll be able to do in another month of working hard towards saving more money.
Day 16 – Communication
Don’t think money has to be a taboo topic. In fact, you need to be comfortable talking about money.
The key is to be on the same page with key family members about where money should go. This is something that we struggled with our marriage and had to overcome. Thankfully, we did and we made way more progress than previously.
Day 17: Invest in yourself
I know you’re probably tired of hearing about investing in yourself, but it’s important. Investing means putting money into something that will make more money back. You might not think this applies to you, but it really can! You might not have a big budget for investing in stocks or mutual funds right now, so let’s talk about something you do spend money on every day: you.
You only learn by growing.
Day 18 – Start Reading About Personal FInance
This isn’t something that you do once or twice. Make it a goal to read books on money or personal finances each month.
Importantly, make sure you are reading books, regardless of what aspect they look at money. It is never too late to pick up new tricks or ideas.
Plus learning from others’ money stories is powerful.
Day 19 – Free Fun
Participating in only free activities for 30 days, and refusing to spend a single penny, we created a guide to make that happen for you.
101+ Things to Do with No Money
After writing that post, we discovered this is one of the best money saving ideas out there. This guide not only teaches you how to save money but also teaches about where you want to spend money and the importance of living a purposeful life.
Day 20 – Review Insurance
You need to make sure you are properly covered with insurance as well as not paying too much money for your policies.
There are all of the types of insurance you need to review:
This is something you should do once a year.
Day 21 – Waste Less Food
You need to learn to save money by wasting less food.
This doesn’t mean you have to make homemade meals every night of the week! The goal is not to throw food away – that is hard earned cash going right down the trash.
Ways to Save Money on Groceries:
Day 22 – Buy Second Hand
Consider second-hand stores and consignment sales as options for buying used items. Thrift stores are also great to save money on clothes and other household items.
The same is true for buying cars, baby equipment, kids clothes, etc. Plus you protect our world.
Day 23 – Save Money
So, this day is all about saving money and I think that it’s the most important one of them all because if you’re not saving your money, then what are you doing with it? You’re throwing it away.
So today, I want to talk about two different types of saving money – physical and mental. The first one is all about physically saving your money. This is the easiest one because it doesn’t require any effort on your part to do so, but it’s also very important as well.
The second type of saving money is mental saving. This is all about saving your money because you know that something better will come along soon and it gives you hope for the future!
So, I think these two types of savings are both really important.
Day 24 – Give Back
This is the time to give back to others, donate money to charities, and put small contributions into charity.
By hoarding money, you are not learning the principles of helping others just like you have been helped along the way.
Day 25 – Renegoite Interest Rates
Right now, we are not starting to pay off debt. We are looking for ways to save on higher interest payments.
Make calls to renegotiate your interest rates on your debt. If the credit card company says no, then look at a zero interest transfer.
Just no more debt.
Day 26 – Avoid Scarity Mindset
You have to believe in yourself that you are capable of achieving great things and that includes success money.
However, we get caught in this trap of hoarding materialistic items in order to make up for the dollars in our bank account or money that was wasted in buying them.
If you don’t believe how poverty mentality overwhelms your life, then read this story of reclaiming your home with decluttering.
Day 27 – Cut Out What you Don’t Need
If you are not using something, sell it or give it away to someone who can use it more than you do!
You’ll save money and make room in your budget for the things that matter.
We learned a lot when we started to own less stuff.
Day 28 – Prepare for a No Spend Challenge
If you have not been able to keep your spending in check, this is an excellent opportunity for you to try out a no spend challenge once this challenge finishes.
A no spend challenge will help you to review your budget and see what areas of spending need more attention in order to increase savings or pay down debt.
Also, it will help you focus on what area are important to spend money.
Day 29 – Reward Yourself
This is the biggest lesson I learned when paying off debt and trying to increase our savings percentage. I became unable to spend money. I would feel guilty about spending money.
That is not the type of life you want. You must be comfortable spending money (especially if you are a thrifty person).
Pick rewards to match your smart financial goals. Keep motivated with those rewards.
Day 30 – Stay on Track
Proper money management does not end just because the end of the 30 day challenge is over. This is a lifelong skill to master and perfect.
Keep focused by not going over budget limits and being honest about where you really stand financially today as opposed to where you want it to be in the future.
You can stay on track if you have a deep desire to continue.
30 Day Money Saving Challenge
This one is just about saving money. Period.
Each day, you save money to reach your goal.
For many people, the 30 day money saving challenge will make sure you are on track with your goals and objectives.
At the minimum, you should be able to save $500 in 30 days. But, you need to decide what you want to save in a month.
The challenge is open to everyone, so this might be the perfect opportunity for you!
What is the 30 Day Money saving Challenge?
The 30 day money saving challenge is saving a set amount of money during the month.
Keep in mind, not everyone will be able to save this much in 30 days and that’s perfectly okay.
You need to make it work with your budget.
Another option for the 30 Day Money Challenge is committing to give up one or more expenses for the whole month. For instance, pick ten things that cost you money and give them up for 30 days.
How to get started with the 30 day savings challenge
The 30 day savings challenge is a simple but effective way to get started saving money.
You can choose any of these methods:
Take the amount you want to save and divide by 30. That is how much to save daily.
Determine the amount to save and take that immediately when you are paid.
It is easy to go in order or skip around depending on what amount you want to save each day.
Keep change hidden in jars and watch it add up over time, then put the money away every day and see where they rank at the end of the month.
Give up a certain expense and save that money.
Try a modified version of the 100 day challenge.
You can find plenty of money saving challenge printable or PDF in our resource library.
Want more easy money saving challenges?
Are you in for this 30 Day Money Reset Challenge?
This is only a 30 day money challenge because it’s a short period of time to gain a win. That is what you need to keep up the motivation as well as have a strong kickstart to your finances.
In order to build wealth through their finances, these are 30 smart moves that require no time on some days.
Don’t lose momentum. If you miss a day, then jump back into the challenge the next day.
The key to success for 2021 is to take control of your finances.
Photo Credit:
www.rakuten.com
The Shopping Trick to Save Hundreds of Dollars
Personally, I love to shop online from the convenience of my own home and have packages delivered to my house. Plus you can get paid to shop online!! The process is super simple.
Just head here to get an Rakuten/Ebates account, click on the retailer you are shopping online, and then complete your checkout process as normal.
Already a Rakuten / Ebtaes member? Make sure you have the Extension Buttonfor automatic savings!
Photo Credit:
www.asktrim.com
Perfect for the person who hates to hassle with canceling subscriptions and checking spending. Trim is a virtual personal assistant that constantly works to save users money.
Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.
Photo Credit:
ibotta.com
Ibotta can be used for grocery stores, drugstores or online shopping. Once you accrue $20 in your account, you can transfer it to PayPal or venmo or buy gift cards to selected retailers.
Just for signing up, they will give you a bonus when you use use this link. Ibotta rocks at bonus categories and offers. This is where your cash back can really add up fast.
Photo Credit:
checkout51.com
Checkout 51 can be used for grocery stores or drugstores. Their offers are valid each week from Thursday-Wednesday. With new offers released each Thursday.
One of my favorite offers is the “Pick your own offer” – it is a selection of 5 fruits of veggies to redeem for extra cents cash back. Once your account balance is over $20, they will mail you a check.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Walmart’s partnership with Capital One ended after the retail giant filed a lawsuit alleging that the McLean, Virginia-based bank failed to meet certain customer service standards.
Bloomberg
The demise of the short-lived and acrimonious credit card partnership between Walmart and Capital One Financial is raising new questions about the retail giant’s ambitions to compete with banks.
The two companies announced Friday that their relationship was coming to an end, which gives Walmart options as it seeks to get better plugged into its shoppers’ wallets. One potential avenue is to find a new bank for a run-of-the-mill credit card partnership.
The more aggressive route by Walmart would be to take on banks by becoming a one-stop financial services provider. It could do that with the help of an outside fintech firm, but analysts think it’s more likely that it will look internally through its majority-owned fintech, called One. One runs a debit card, is testing out buy now/pay later options, and, with the addition of a credit card, could be closer to becoming the financial super-app Walmart has long sought.
“It might be time for One card to rule them all,” quipped Richard Crone, head of Crone Consulting.
Walmart declined to comment on its plans. But executives at the retail giant have long been eyeing an expansion into banking services, undeterred by the company’s failed 2006 attempt to gain a bank charter.
Walmart wants to “centralize all financial solutions on one platform so it doesn’t feel like it’s 25 different things,” Julia Unger, a top Walmart’s financial services executive, said at the American Banker Payments Forum in 2022. She said the retailer’s vast shopping and payments data from its 4,600 stores and its website enables it to perform alternative underwriting on loans beyond traditional credit scores.
“The strategy isn’t to give everyone credit but give them a path to credit,” Unger said.
In 2021, Walmart partnered with the fintech investment firm Ribbit Capital to launch what’s now known as One. The joint fintech venture made two acquisitions in 2022: the early wage access firm Even Responsible Finance and One Finance, which offered savings tools, ATM access and mobile financial tools.
The One debit card offers 3% cash back at Walmart stores and a 5% rate on savings.
The retailer also separately offers buy now/pay later loans through a partnership with the fintech Affirm that dates back to 2019. But CNBC reported in April that One had started offering those services at some Walmart stores, raising the prospect that Walmart could scrap its Affirm partnership.
Affirm has declined to comment on the CNBC report. Asked about the issue on a recent Morning Brew podcast, Affirm’s chief financial officer said the company’s focus is “making sure we delight the consumer and … drive better business outcomes for our merchants.”
Alex Johnson, founder of the Fintech Takes newsletter, said Walmart’s severing of ties with Capital One may be continuing the retailer’s pattern of “using partners until they can find a way to do it directly.”
To offer a credit card, Walmart would still need to partner with a bank, much like its current debit card partnership with Coastal Community Bank in Everett, Washington. But Walmart, long known as a tough negotiator, would get the flexibility to design a “more tailored set of products that prioritizes the financial health of their customers,” Johnson said.
Big banks’ partnerships with retailers often involve a “push and pull,” Johnson said. Banks and merchants can earn more interest from customers who carry balances each month. But those customers’ higher interest payments can strain their finances — giving them less spending room to make more purchases at stores like Walmart.
Through its majority-owned fintech, Walmart can design a set of products that fits its “big and diverse customer base,” Johnson said. It could launch a higher-tier card for customers who regularly pay off their balances while directing shoppers with lower credit scores to buy now/pay later options and offering rewards-based debit cards to those who might not qualify for BNPL loans.
“In a classic co-branding model, the retailer or the merchant would have not a ton of flexibility,” Johnson said. So now some big retailers are “trying to exert a great deal more control” over their card programs, he explained.
The breakup of the Walmart-Capital One relationship followed a lawsuit in which the retailer argued that its bank partner was not fulfilling the terms of their arrangement. Walmart said last year that the McLean, Virginia-based bank “was consistently unable to meet” certain customer service standards related to payment processing, card issuance and transaction posting.
Capital One disputed Walmart’s claims, arguing that the retail giant was trying to wiggle out of a contract when it found the economic terms unpalatable. It also argued that Walmart had fallen short of its obligations to market the card to more customers.
“Walmart is positioning itself to compete directly with Capital One to provide credit and payment products to Walmart customers,” Capital One said in a court filing last year.
In March, a federal judge sided with Walmart, writing that the contract between the companies clearly dictated that the bank’s “repeated customer service failures entitled Walmart” to end the partnership.
It was not the first time that a Walmart credit card partnership went south. Capital One took over the partnership after Walmart sued its prior partner, Synchrony Financial.
Under the termination deal between Walmart and Capital One, the bank is hanging onto an $8.5 billion loan portfolio as well as servicing responsibilities.
For now, the user experience for holders of Capital One-Walmart cards will remain the same. A Capital One spokesperson said the company will “convert existing eligible Walmart Card customers” to a Capital One credit card. The bank is “actively shutting down new applications for the Walmart card” and will communicate any changes to existing customers well in advance, the spokesperson said.
Analysts who cover Capital One said that the breakup will have a small impact on the bank, since the Walmart portfolio makes up a small portion of Capital One’s total loans. If anything, the analysts were positive about the news.
Capital One will be able to “pick from the better quality customers” in the $8.5 billion portfolio, Moshe Orenbuch, an analyst at TD Securities, wrote in a research note. And rather than sharing revenues with Walmart, Capital One will get to keep all of the income from its newly converted card customers, he noted.
The fact that Walmart didn’t have another bank lined up to take over the portfolio “also speaks to the industry’s discipline” in declining to accept less-than-stellar terms, Orenbuch wrote.
If Walmart does strike out on its own, it will face the formidable challenge of managing everything that running a credit card entails — underwriting, billing, handling complaints and the vast range of rules surrounding credit card programs.
Walmart will have to close customer accounts or decline applications, perhaps risking that upset customers will end up preferring to shop at Target, said Brian Riley, a consultant and co-head of payments at Javelin Strategy & Research. And it will have to decide just how much credit risk it wants to absorb on its own balance sheet, rather than Capital One’s.
“It’s not as easy as it looks,” Riley said. “And that’s something that Walmart has to be very wary about.”
The Wall Street giant Goldman Sachs, which expanded into credit cards by partnering with General Motors and Apple, struggled in the business and has since scaled back. It’s also faced scrutiny from regulators over credit card management.
In 2021, Walmart hired two former Goldman executives who were key to its consumer push: Omer Ismail and David Stark.
Running a credit card is easier said than done, but Walmart’s sheer size helps, said Aaron Press, research director at Worldwide Payment Strategies.
“It’s hard to pull off,” Press said. “It’s a heavy lift, but they have a lot of resources.”
Renting a car with a credit card is easier than renting a car without a credit card, but both methods are possible at many major car rental agencies. Car rental companies typically put customers through more hoops to rent a car without a credit card.
In this guide, we’ll cover how to rent a car without a credit card — but also explore the potential perks of paying for a rental car with a credit card, when possible.
Is It Possible to Rent a Car Without a Credit Card?
So do you need a credit card to rent a car? Technically, no, you do not have to have a credit card to rent a car. It’s possible to rent a car with a debit card at some major rental agencies. Some agencies even accept prepaid gift cards, cash, or money orders as a form of payment at the end of the rental.
Each rental agency has its own stipulations about paying by debit card. Some franchises may not follow corporate policy, so it’s always a good idea to call the specific rental agency location to ask about payment options before arriving at your destination.
Common requirements for customers paying for a rental without a credit card include:
• Security deposit: Many agencies will put a hold on your debit card for the cost of the rental, plus an additional amount. You will not be able to use the money being held for the duration of your trip, which can make funding your vacation more challenging.
• Credit check: If you are paying with a debit card (or cash), some rental car agencies may perform a credit check. This could result in a hard inquiry on your credit report, which might temporarily lower your score.
• Identification: Renting a car without a credit card might mean that the rental agency needs to see multiple valid forms of ID.
• Age: While 25 is often the magic number to rent a car, it is possible to rent a car as a younger driver. Many agencies charge “young driver fees” to do so. However, if you are renting a car with a debit card, agencies may not allow drivers under the age of 25.
• Proof of return travel: If renting from an airport with a debit card, many agencies want to see a ticketed return travel itinerary as an extra assurance that you will return with the car.
• Logos: Some rental car agencies require debit or prepaid cards to carry the logo of a major credit card company, like Mastercard, Visa, or Discover.
The following rental car agencies allow you to rent a car without a credit card at participating franchises if you meet their specific requirements (though note this is not an exhaustive list):
• Alamo
• Avis
• Budget
• Dollar
• Enterprise
• Hertz
• National
• Sixt
• Thrifty
• Turo
Recommended: Buying a Car with a Credit Card
Why Rental Car Agencies Typically Require a Credit Card to Rent a Car
Why do you need a credit card to rent a car at some agencies, and why do others impose a number of requirements for debit card payments? Here are the reasons rental car agencies require a credit card or other information.
Proof of Reliability
Having a credit card inherently demonstrates to a rental car agency that a creditor trusts you enough to borrow their money. Because rental car agencies can ascertain your creditworthiness from a credit card in your name, they don’t need to run a credit check before loaning you a $25,000 piece of machinery.
Ability to Collect Repair Fees
If you return the car damaged, the rental car agency will need to pay for these repairs. Car insurance (whether through your own policy, credit card travel insurance, or the agency’s policy) may cover most of the charges, but you still might owe a deductible. Without proper insurance, there is a risk that the repair costs will exceed your security deposit.
Though you can rent a car without a credit card, if you pay with a debit card, the rental agency runs the risk of your checking account not having enough funds to cover the cost. There is a better chance the agency can charge your credit card without hitting your credit limit.
Ability to Collect Tickets and Fees
Similarly, if you go through any electronic toll booths or receive a ticket without being pulled over (e.g., through a traffic camera), the rental car agency can charge your credit card to pay the outstanding balance. Again, they face less risk of maxing out a credit card than overdrawing a checking account, which is why some agencies prefer customers renting a car with a credit card.
Benefits of Using a Credit Card for a Car Rental
Here are just a few potential perks of swiping your credit card for a car rental:
• It’s easier. As discussed above, renting a car without a credit card can complicate the process.
• You might have insurance. Some travel credit cards offer car insurance when you use them to pay for a rental car. Research your card’s policy carefully to understand what coverage it provides and how to use it. For example, many credit cards with travel insurance require that you decline the rental agency’s insurance; some only offer secondary insurance, meaning you need to file claims through your own auto insurance first.
• You might get discounts. Some credit cards offer special discounts at select car rental agencies. Check your card’s policy to understand where and how to get discounted rates.
• You could earn rewards. As mentioned above, you might qualify for cash back rewards when you opt to cover your rental car with a credit card payment. Other cards may pay out rewards as miles or points. Travel credit cards might even offer extra points for travel-related expenses, like rental cars.
Typical Rental Car Credit Card Interest Charges
When you rent a car, the agency typically puts a hold on your credit card for a set amount, often the value of the rental car agreement; this is commonly called a security deposit. During the rental period, these funds will count toward your credit limit.
When you return the car, the agency will charge you the amount of the rental, plus any fees incurred during the rental (damages, extra days, late drop-off, etc.). If the initial hold was more than the final cost of the rental, the agency will put that amount back on your card.
Because you pay interest on money borrowed with a credit card, it’s possible you might incur interest on the held security deposit. However, paying off a credit card in full every month is a smart strategy for avoiding interest charges given how credit cards work.
Recommended: When Are Credit Card Payments Due?
The Takeaway
Renting a car with a credit card makes the process much easier and can have benefits for the renter as well. However, it is possible to rent a car without a credit card. Just be prepared to take additional steps to get behind the wheel.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options so you can use your credit card responsibly.
SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.
Wherever you’re going, get there with SoFi Travel.
FAQ
Do I need a credit card for rental car insurance?
You do not need a credit card to purchase rental car insurance. While using a credit card makes it easier to secure a rental, most agencies allow you to pay upon your return with a credit card, debit card, or even cash, a gift card, or a money order. That includes the cost of insurance provided by the rental agency.
However, many car insurance providers cover rental cars in their policies, especially in the United States. Check with your agent to see if you’re covered. Additionally, some credit cards offer rental car insurance when you use them to pay for the rental. Your credit card benefits administrator can explain how, if, and when coverage applies.
Is it easier to rent a car with a credit card or debit card?
Renting a car with a credit card is easier than renting a car with a debit card. Many agencies will let you rent with a debit card; they just have additional requirements for you to meet before renting.
What form of payments are accepted for renting a car?
While rental agencies generally prefer credit cards for payment, some agencies allow you to book and rent a car with a debit card. Upon return, you may be able to pay for the car with a prepaid gift card, cash, or money order.
Can I use someone else’s credit card to rent a car?
If you use someone else’s credit card to rent a car, that person must be present to pick up the rental and be the main driver. If you intend to drive the rental, you will likely have to pay a fee for an additional driver, as you can’t be listed as the primary driver when using someone else’s credit card.
Photo credit: iStock/skynesher
**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.
When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
Eligibility:
You must be a SoFi registered user. You must agree to SoFi’s privacy consent agreement. You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia’s website or app, or any other site operated or powered by Expedia is not eligible. You must pay using your SoFi Credit Card.
SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Retail banking involves offering financial services to individual consumers rather than businesses or other banks. It encompasses a range of products and services, such as checking and savings accounts, mortgages, personal loans, credit cards, certificates of deposit (CDs), and more.
Retail banking is different from corporate banking, which is the part of the banking industry that serves large companies and corporate customers. Retail banks can be local community banks, online banks, or the divisions of large commercial banks. Credit unions also offer retail banking.
Read on for a closer look at what retail banking is and how it differs from corporate banking.
What Is Retail Banking?
Retail banking, also known as personal or consumer banking, refers to financial services provided to individuals. This type of banking is designed to serve the general public and to help people and families manage their money, obtain credit, and save for the future.
Retail banks focus on making banking services easily accessible, either through physical branches, ATMs, and/or online platforms. These banks play a crucial role in the economy by offering checking accounts, high-yield savings accounts, certificates of deposit, loans, and other financial products that help individuals safely store, manage, and grow their money.
Though some retail banks also work with small businesses, retail banking is different from corporate (also known as commercial) banking, which involves working with commercial entities, such as large businesses, governments, and institutions.
Most large-scale banks have retail banking divisions. Credit unions and smaller banks, on the other hand, may be exclusively focused on retail banking.
Recommended: 12 Things To Consider When Choosing A Bank
How Does Retail Banking Work?
Retail banking works by offering financial products and services tailored to consumers. These services are designed to help individuals and families manage their finances efficiently, save for the future, and access credit cards and loans. Retail banks make money primarily through interest on loans, fees for services, and charges for various banking products.
Features of Retail Banking
Retail banking offers a hub for all of your basic financial transactions. Here’s a look at some of the products and services they provide.
• Savings and checking accounts: Retail banks offer savings and checking accounts to help individuals manage their money. Savings accounts typically earn interest, while checking accounts provide easy access to funds for day-to-day transactions.
• Consumer loans: Retail banks commonly offer personal loans, auto loans, and home mortgages. These loans can help people finance significant purchases or investments, such as buying a home or car.
• Credit Cards: Retail banks issue credit cards that allow consumers to borrow money up to a certain limit for purchases. These cards often come with rewards, cash back, and other incentives.
• Online and mobile banking: Retail banks typically provide online and mobile banking services, allowing you to manage your accounts, transfer money, pay bills, and access other banking services from your computer or smartphone.
• Investment services: Some retail banks offer investment products like mutual funds, retirement accounts, and brokerage services to help customers build wealth over time.
• Customer service: Retail banks typically emphasize customer service. Many provide personalized financial assistance through branch staff, call centers, and online support.
Types of Retail Banks
Retail banks come in various forms, each catering to different customer needs and preferences. Here’s a look at some of the main types of retail banks.
• Commercial banks: Many people access retail banking through one of the large, commercial banks, which generally offer a retail banking division along with corporate banking services.
• Credit unions: Credit unions are nonprofit financial institutions owned by their members. They often provide similar services to commercial banks but with a focus on serving the financial needs of their members, usually offering lower fees and better interest rates.
• Online banks: Online banks operate exclusively online, without physical branches, though you typically have access to a partner network of ATMs. They often offer higher interest rates on savings accounts and lower fees due to reduced overhead costs.
• Community Banks: Community banks are smaller, locally-focused institutions that prioritize serving the needs of their local communities. They offer personalized customer service and often have a strong understanding of their local markets.
Recommended: Big Banks vs Small Banks: Key Differences?
How Is Retail Banking Different From Corporate Banking?
Retail banking and corporate banking represent two different sectors of the banking industry, each serving different customer bases and offering different services.
Retail banking focuses on individual consumers, providing them with products like bank accounts, personal loans, and credit cards. Corporate banking, on the other hand, serves businesses and corporations, offering services like business bank accounts, commercial loans, trade finance, and employer services.
Transactions in retail banking are typically smaller in size and higher in volume compared to corporate banking, which tends to focus on larger, more complex transactions.
If you’re wondering whether you would be better served by retail vs. corporate banking, here’s a snapshot how the two compare.
Retail Banking
Corporate Banking
Client base
Individual consumers
Businesses, institutions, banks, government entities
Products and services
Personal checking/savings accounts, mortgages, personal loans, credit cards
Business checking/saving accounts, business loans, merchant services, global trade services, employee benefits plans
Loan amounts
Lower
Higher
Transaction frequency and amounts
High number of transactions for low amounts
Low volume of transactions for more significant amounts
The Takeaway
Retail banking is the public face of banking that provides banking services directly to individual consumers rather than businesses or other banks. Most of us bank at a retail bank or retail division of a large commercial bank whether we realize it or not.
Whether you use a brick-and-mortar bank, online bank, or credit union, retail banking offers products and services that allow you to manage your money, access credit, save for the future, and work toward your financial goals.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
What is an example of retail banking?
An example of retail banking, also known as consumer banking, is when an individual opens a savings account at a local bank. The bank then allows them to deposit funds, withdraw money, and earn interest on their deposits. The same bank might also offer them a checking account for daily transactions, a mortgage to buy a home, and a credit card for everyday purchases. These services are all examples of retail banking, which is aimed at meeting the personal financial needs of individual consumers.
What are the largest retail banks?
The largest banks in the U.S. that offer retail banking include:
• Chase
• Bank of America
• Wells Fargo
• Citibank
• U.S. Bank
• PNC Bank
• Goldman Sachs Bank
• Truist Bank
• Capital One
• TD Bank
Who uses retail banking?
Retail banking is used by individual consumers to manage their personal finances. This includes:
• Students
• Young adults
• Working professionals
• Couples
• Families
• Retirees and seniors
• Small business owners
What are the retail banking products?
Retail banking offers a variety of products and services tailored to the financial needs of individual consumers. These include:
• Savings accounts
• Checking accounts
• Personal loans
• Mortgages
• Credit cards
• Certificates of deposit (CDs)
• Investment products
• Online and mobile banking services
• Debit cards
Photo credit: iStock/Passakorn Prothien
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Ramp and Brex are both financial technology companies that aim to help business owners track and manage company spending with software tools and financial products, including corporate credit cards.
Business owners can issue unlimited virtual and physical credit cards with both Brex and Ramp. Then, they can limit spending on those individual cards, create budgets, automatically categorize expenses and prompt users to upload receipts.
The key differences? Brex’s eligibility criteria focus on venture-backed startups, enterprise companies and businesses with annual revenue in the millions. It’s best for businesses that fall into those buckets and want a linked Brex business account for banking.
Ramp serves a broader group of small businesses, but they’ll have to do their banking elsewhere.
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Ramp vs. Brex: Comparison at a glance
Business entities that can qualify
Corporations, LLCs, limited partnerships and nonprofits.
Corporations, LLCs and limited partnerships. Nonprofits may be approved on a case-by-case basis.
Bank balance and revenue requirements to qualify
At least $75,000 in cash.
For daily repayments: More than $1 million per year in revenue, more than 50 employees or equity investment.
For monthly repayments: Accelerator or venture funding, at least $100,000 in angel investment and at least $50,000 in cash. Enterprise companies need at least $400,000 per month in revenue.
Personal guarantee
Not required.
Not required.
Annual fee
Credit card rewards
1.5% cash back on all spending.
7 points per dollar spent on rideshares and taxis.
4 points per dollar on travel booked through the Brex portal.
3 points per dollar on restaurants.
2 points per dollar on software.
1 point per dollar on all other purchases.
Rewards rates may vary for certain customers.
Customer support
Phone support available daily from 7 a.m. to 10 p.m. ET. Support request form available.
Live chat and phone available 24/7.
Do you have less than $50,000 cash on hand? Look at the BILL Divvy corporate card instead. That card works similarly to Ramp and Brex — it’s linked to expense management software, you’ll have to pay off your balance at the end of each statement period and it offers some rewards on your spending — but you may be able to qualify with as little as $20,000 in the bank.
Ramp card pros and cons
Pros
No annual fee or foreign transaction fees.
Simple, straightforward rewards.
No personal guarantee or credit check.
Direct integrations with popular tools and card-level spending controls and alerts.
Cons
Balance must be paid in full each month.
Not available to sole proprietors or unincorporated businesses.
Where Ramp wins against Brex
Available to a wider variety of entrepreneurs
Ramp is available to most incorporated or registered companies, provided they have at least $75,000 in the bank. While that still leaves out a large number of business owners — the majority of entrepreneurs in the U.S. are sole proprietors — it’s much more inclusive then Brex, which requires venture or angel investment or annual revenue in the millions.
Flat-rate cash back
Flat-rate cash-back business credit cards offer two key advantages: You don’t have to worry about making purchases through a specific portal to maximize rewards, and you’ll get money back on all your spending, regardless of whether it falls into certain bonus categories. Ramp’s rewards structure beats Brex’s in terms of simplicity, especially if your business doesn’t spend much on travel.
Brex card pros and cons
Pros
No annual fee or foreign transaction fees.
New cardholder bonus offer.
Bonus categories with high rewards rates.
No personal guarantee.
Cons
Complicated rewards structure.
High capital requirement for approval.
Daily repayment may be required.
Not available to most small businesses.
Where Brex wins against Ramp
Cash management account included
Alongside its business credit card and spending management software, customers get access to the Brex business account. This is a business cash management account that offers no monthly fee, unlimited transactions and a high annual percentage yield (APY) on cash invested in money market funds (uninvested cash doesn’t earn interest).
All these features make Brex a good choice for startups with venture investment sitting in the bank. Expanded Federal Deposit Insurance Corp. (FDIC) insurance protects up to $1 million in uninvested cash, and you can earn returns on the rest.
Rewards on travel spending
If your business spends significant amounts on travel and hospitality expenses and you’re willing to book flights and hotels through Brex’s portal, then Brex is likely to offer much more lucrative rewards than Ramp. Its rewards rates are up there with traditional business travel credit cards — including up to 3x points on restaurants, 4x on travel portal purchases and 7x on rideshares.
Traditional business credit cards vs. Ramp and Brex
In some instances, corporate cards like Ramp and Brex won’t make sense for your business. Instead, you should consider a traditional business credit card if:
Your business is a sole proprietorship. Corporate credit cards aren’t available to sole proprietors.
Your business doesn’t meet Ramp and Brex’s minimum account balance requirements. Traditional business credit cards focus on your personal credit history — not your bank account balance — when evaluating your application for a card.
You want the option to pay off large purchases over several months. Corporate credit cards don’t let you carry a balance from one statement period to the next, and some may require you to make payments as often as every day.
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Annual fee
$0
Annual fee
$150
Annual fee
$0
Regular APR
18.49%-24.49% Variable APR
Intro APR
0% intro APR on Purchases for 12 months
Intro APR
N/A
Intro APR
0% intro APR on purchases for 12 months from the date of account opening
Recommended credit score
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Recommended credit score
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Ramp vs. Brex: Which one is right for your business?
For most small-business owners, Ramp is more likely to be a fit simply because it’s easier to qualify for. The card’s flat-rate cash back offers simple rewards on all your business spending. Plus, you’ll have access to powerful software that you can use to monitor and control expenses across the company.
If your business is a venture-backed startup, however, Brex is worth a look. That’s especially true if your team frequently travels for business, since you’ll be eligible for extra-high rewards rates when you use the Brex card on travel bookings, restaurants and rideshares. You’ll be supported by similar expense management software, too.
Have you ever thought about how it would feel to live cheap?
I didn’t think about it before, but now I know.
When you live a cheap life, you have more money for what you actually want to spend it on, and you can put more money towards your future.
You can do so many things in life, but you should make sure you’re doing them on your own terms. If you want to live cheap, but still have a high quality of life, you’ll need to get out of your comfort zone and be willing to try new things.
A cheap life can also help you save money on your biggest expenses.
Plus you can learn how to live cheap but good and no one will know anything different. Except for you because you are watching your accounts grow with your money saving style.
It is way easier to learn how to live cheaply! The hardest part is saying no to all the temptations.
Living cheap does not mean you deprive yourself or never have fun. In fact, it is quite the opposite!
Let’s dig in and you can enjoy the benefits of how to live cheap and save money.
Why Live Cheap?
In the past, living cheaply meant sacrificing a lot of things in life. However, that’s not always true anymore. There are many ways to live cheaply and still have a great quality of life without compromising your happiness or finances.
One main reason to live cheaply is that it will save you money.
Another reason for living cheap is because of the environmental impact of having a large carbon footprint, which can cost a lot more in the long run.
You might be interested in living cheap if:
– You want to save money on expenses
– You’re struggling to make ends meet
– Your family is spending more than they earn
– You want to have a positive impact on the world
Living cheap is oftentimes associated with simple living. While simple living has a better flair and acceptance, both mean you are willing to live on less and spend less money.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How to Live Cheap
It’s possible to live cheaply, but the effort involved is significant especially when you are trying to change spending habits and ways of living.
There are big life changes you can make or tiny money saving habits you can do.
What are some ways to live cheap?
There are many ways to live cheaply! Some tips include not eating out, cooking at home, choosing entertainment wisely, and finding free activities. You just have to decide what works for you.
Learn about the frugal home must haves.
The most important step is, to be honest, and creative about what you can do and what you can’t do.
Here are the big things you can do to live cheap:
#1 – Spend Way Less
Many of us can’t afford how society wants us to live. Or maybe you can, but you have no desire to be materialistic.
You prefer the simplest way to create a new life that still allows us to work and care for our family.
Living cheap is not about living poorly. It is about spending way less than your income. Thus, you are saving the difference.
You have a heightened awareness of what your expenses are and you know where your money is spent. Now, you are mastering how to spend money wisely.
You know that living below your means is the path of how to live cheaply.
Budgeting is a way of life in order to keep your expenses at a minimum.
The thought of splurging every single day is gone and when you spend money, you invest in something that will last.
#2 – Focus Long Term
Focusing long term is the process of thinking about the consequences of your actions for a period of time before you take any action. This can be hard to do, especially when it involves emotionally charged topics.
Everyone knows that money is an emotional topic.
For example, debt is expensive. It is not just the money you borrow and repay, but also the interest fees and penalties that accumulate over time. If you want to live cheap, one of the best ways to do it is by paying off your debt as quickly as possible so that no more monthly payments go out the door.
Instead, start with a savings account where you deposit all of your extra cash each month (and ideally add some every week). This will be used for emergency purposes like car repairs, doctor visits, and so on.
Always stay focused on your current money goal as well as your long term financial vision.
#3 – Housing Expenses
Given that housing accounts for 25-35% of your income, this is the biggest place to start.
This is a great way to huge amounts of money each month.
1. Rent a room
Rent a room is an act of renting an apartment or other living space from another person. Renting rooms for a living can be seen as a service that enables people to live close to their work. Renting a room usually involves sharing living space with one or more other people.
2. Live in an RV or Van
Living in an RV or van is a question that many people have been asking themselves, and the answer to this question varies from person to person.
The most common response would be that it depends on the person. Some people love camping and would love to live in an RV for a few months before going back to their house. Other people enjoy living in a van as they are able to go to work and school without having to worry about commuting.
3. Own a Duplex
In a duplex, there is one unit of living space that shares a wall with another unit.
The concept is house hacking by living in one unit of a duplex and renting out the other units and getting money from one side of the building. Thus, making your mortgage nothing or even making money.
4. Buy a Fixer-Upper
A fixer-upper is a house with major problems, which the buyer fixes up and then sells. You can also live in the property while doing the renovations and lowering your housing expenses.
When it comes to buying a fixer-upper, there are always risks and rewards. There is always the possibility that you could end up with an expensive disaster on your hands or find yourself living in paradise for less than the market rate.
5. Rent an Efficiency Apartment
The monthly rent for an efficient apartment is usually lower than a studio.
Efficiency apartments are like studios in that they have only one room and the bathroom is separate from living quarters, but unlike studios which contain two to three rooms, efficiency apartments do not feature any additional space.
By renting an efficient apartment, it offers limited space and utilities, but at a low price.
What are free housing options?
Free housing options are available to people who are homeless, low-income, or living in shelters. These types of housing options include government-funded apartments that are given to the homeless and single-room occupancy hotels.
Other options for free housing include living in a friend or family member’s home. You are living without paying rent.
Also, you can net yourself a free room by doing a little work as well.
Where can you find the cheapest housing?
Finding the best place to live is a difficult task, but it can be made easier with some knowledge of where to find the cheapest housing.
There are many factors that go into finding affordable housing, such as the cost of living, quality of schools, and commute time.
The best place to find the cheapest housing is by looking for listings in your area. There are many websites that offer up-to-date listings of homes for sale or apartments.
70 Ways to Live Cheap
In today’s economy, it is hard to live on a budget. However, there are ways to make your life easier by living cheaply.
Whether we’re saving money or just living debt free, we all struggle with these life decisions. Most of the time it’s better to be frugal than indulge all of our wants and needs.
Frugal living can be difficult, but it’s better for you in the long run.
Here are many tips to live cheaper yet fuller lives.
Money Spending Habits:
Budget your money: Budgeting your money is a process of making decisions on how you will spend your income so that you can have enough for necessities and not exceed your budget. This is a great way to reach a goal.
Cancel bills you can’t pay: The best way to cancel bills you can’t pay is to contact your creditors and ask for a cancellation. If that doesn’t work, you’ll have to explain why the bill was not paid. If you have a lot of bills, consider filing for bankruptcy.
Switch Banks: You should not pay for banking. Period. If you do, it is time to switch. Credit unions are great options.
Insurance bundles: Insurance bundles are a type of insurance that is usually offered by an insurer and includes a number of different types of coverage. Bundles typically include home, auto, life and disability insurance as well as rider policies for loss of income and medical expenses.
Switch banks to one with high APY: If you do not invest in an account with high interest, then you are losing money by not investing. A bank’s APY is the annual percentage yield it pays on deposits. Here is a great online banking option.
Increase income: Increasing one’s income is a way to increase the amount of money one can earn. This can be done in a variety of ways, such as by finding a new job or starting their own business.
Cut your bills: The average person spends around $150 a month on various bills, such as electricity and gas. By cutting your bills where you can, you’ll be able to save a lot of money each month.
Earn cash back on purchases: Earn cash back on purchases is the opportunity to earn money for items you already buy. It can be done through a credit card, debit card, or other means.
Make money on things you own: Sell items you no longer need on eBay, craigslist, and other classified sites instead of throwing them away
Avoid unnecessary spending: When you’re out and about, do your best to avoid places that sell items you don’t need.
Don’t buy things on credit: If you don’t have the money, don’t buy it! That way you won’t be stuck paying more than what an item is worth.
Save your spare change: If you take your spare change and divide it into jars, you’ll be surprised how much money can accumulate.
Automate your budget: Knowing what you have to spend will help keep your shopping in check and prevent impulse buying.
Avoid fees from simple transactions: Credit cards, debit cards, and electronic check transactions have fees associated with them that users need to be aware of in order to avoid being charged for a transaction that they did not intend to pay.
Shopping Habits
Stay out of stores: Don’t go the mall. Changing this simple habit can be a huge savings on a budget and improve quality of life. Find thrifty alternatives to cramming your whole life into a big container, from food to avoiding the mall.
Have a no-spend weekend: A no-spend weekend is a time when people often give up spending and try to save money. Many people use this as a way to get back on track financially by trying to cut back on their spending. Get your no spend printables.
Write down what you want to buy: When you’re tempted by a purchase, take five minutes and write down what you want from the item. Do this for at least three days until your desire is gone.
Buy only used items: Buying used items is a great way to lower the cost of your purchase. The downside, however, is that you might not be able to find exactly what you are looking for.
Skip paying the full price: Many people do not want to pay the full price for a product or service. However, as most companies now provide discounts and promotions, consumers are finding themselves paying less for their services.
Be wary of subscriptions: There are a lot of different types of subscriptions that can be found online. Many people today subscribe to the idea that they need some type of subscription in order to access content on any given website. There are many subscription services that make it seem like you’re not actually paying for content, but rather making a one-time payment to receive all the benefits. Review your subscriptions to make sure you benefit from them.
Trim unused subscriptions: Unused subscriptions are subscriptions that have been set to expire in the next 30 days. They can be canceled by clicking on “cancel subscription” and then deleting the unwanted subscriptions from your account.
Get cashback on everyday products: Online shopping is a great way to get cashback on everyday products. You can search for the best deals by using comparison websites, which will help you find the cheapest price. Personally, I use this one.
Free Stuff: Take advantage of free events and activities in your area. Here is a list of 101+ things to do with no money.
Use the Library: For things like magazines or books, look at the library instead of buying them new.
Buy clothes during the off season: Buying clothes during the off season is a time when deals can be found everywhere. If you want to know what’s inside the trend, now is not the time to buy those clothes. Department stores also offer discounts on winter clothing. Shop at stores with racks, not shelves.
Shop thrift stores: Visit thrift stores and garage sales to find items you want or maybe even flip for a profit. Want to learn more about flea market flipping?
Try to reduce waste: Consider what can be done to reduce waste when purchasing items you need in your house.
Around the House
Adjust the temperature: Turning down the temperature is a key part of many different energy saving strategies. Reducing air conditioning or heating can help people save money, but it also has health benefits. Turn down the heat or air conditioning in your home at night and turn it back up during the day.
Cut back cell phone plan: The best wireless provider for you may be to cut back your cell phone plan. Cutting down on the number of minutes or texts could save you money, but this decision should be made with careful consideration.
Make clothes last longer: The best way to make clothes last longer is to not wear them too often. Washing garments made from natural fibers will help preserve them, while colors can be faded or bleached out with the addition of vinegar. This is a great powder detergent to have your clothes last.
Shop for clothing on clearance: Shopping for a style that best fits within a budget is possible. You can save lots of money by shopping off season.
Eliminate cable or satellite television: People can find shows on the internet instead of overpriced services, so the only monthly payment is something to get broadband internet.
Switch cell phones: It’s important to keep in mind that switching cell phone providers are a big decision. While there are many cheaper alternatives, they may not have the cell service where you need it.
Look into your energy usage: By adjusting your thermostat a few degrees, you could save hundreds and then invest in a comfy sweatshirt.
Limit trips to the Salon: Cut your own hair at home, or get it trimmed. You can also grow out your natural hair color.
Turn off unused lights: Of course, turning off lighting when leaving a room always happens.
Buy in Bulk: Buy things like toilet paper, toothpaste, cleaning supplies for yourself rather than in bulk.
Save money on laundry: All you have to do is wash your clothes at night and hang them up, so it’s ready in the morning when you go to school or work for a whole week! Find more tips on how to save money on laundry.
Transportation
Sell any cars you own: Benefits of selling your own car include not having to worry about finding parking, saving on gas or maintenance, and not having to worry about getting a ride to work.
Use a bike: Biking is a great way to get in shape, exercise, and save money. The best bike for you depends on how much time you have to practice and what kind of riding experience you want.
Carpool: Car pooling is a way for people to share the responsibility of driving each day, or from one destination to another. This can be done by carpooling with others who live near you, or by finding drivers for ridesharing. Plus you save money on gas and maintenance.
Public transportation: Public transport modes include buses, trolleys, trains (rail), metro (subway), trams, ferries, and others. This is cost-effective option.
Food / Grocery Ideas
Grocery Shop Less Often: In order to save on spending, grocery shop less often. Most people rely on big grocery stores with extended selections for their meals, but it’s easy to find out what you need or make what you need.
Meal plan based on cheap ingredients: Being on a budget is never easy, but it can be manageable. In order to make the best use of your time and money, create a meal plan based on cheap ingredients that you have in your pantry and fridge.
Always use a shopping list: To create a shopping list, start by making a list of the items you need. Online grocery shopping has made this process simpler.
Avoid convenience foods: Convenience foods are typically less expensive and easier to make, but they lack nutrients and often have a high amount of sugar. They can cause weight gain, cravings for more food, and even mood swings. Save your money and your health.
Eat at home: Eating at home is cheaper than eating out. Period.
Make your own coffee: Make your own coffee, saving money on your morning fix. Set yourself up with a nifty electric French press or better yet use a reusable cone to brew grounds that won’t ever taste gross.
Make as many of your dinners as possible at home: Eating at home also eliminates the need for two trips out, one to buy food and one to clean up. On average, most people who cook for themselves do so twenty minutes each day.
Maybe use a meal delivery service: Most of the time, the factor that makes eating healthy impossible for some people is the overwhelm in the kitchen. Fortunately, there are many online food delivery services to get fed with fresh produce on your plate. Studies show that people are eating fresh, organic items more often now with the help of these wonderful services. Check out the best meal delivery services.
Buy produce from large supermarkets, not from stand-alone farmers markets.
Eat Out Smart: Find more affordable locally owned restaurants, but be aware of the cost. Look for weekly specials or happy hours.
Use your own coffee mug: Then, you can get a discount on hot drinks at places like Starbucks or Peet’s Coffee & Tea.
Pack lunch for work or school: Instead of buying lunch on-the-go, pack a lunch and save lots of money.
Shop Grocery Ads: Plan ahead for what you need to buy by checking the weekly ads before shopping. Look for the loss leaders to bring you into the stores.
Slashing grocery bills: Slashing grocery bills is a term used to describe the process of reducing food costs by shopping at discount stores. The most common ways to slash grocery bills are buying in bulk, switching from expensive “brand-name” items to generic brands, and buying food on sale.
Figure out Food Habits: You must first determine where you are spending the most money on food. Many people spend a majority of their money on unhealthy processed foods, such as boxed cereal or frozen pizzas. To slash your grocery bill, you must cut back on these items and buy more healthy food.
Cutting coupons: Coupons are an important tool for saving money. Cutting coupons can be tough, but it is possible to save the most money by cutting out ads and extra fees that come with regular purchases.
Buy Store Brands: A store brand is a product that is produced and sold under the same name as a popular brand, but by a different company. Stores that offer their own brands of products include Costco, Wal-Mart, and Kroger.
Don’t Shop Hungry: Shopping while hungry can be a recipe for disaster. That’s why it’s important to remember that you should never shop hungry. Remember not to buy anything that is going to last more than a few hours.
In-Store Grocery Apps: In-store grocery apps are digital tools that help people to find the best prices, buy groceries at their local store, and discover new recipes. In-store grocery apps can be used on smartphones, tablets, and computers.
Eat Meatless Meals: If you want to take a break from meat, try eating more vegetarian meals. Meatless meals are often higher in fiber and protein than their meat-containing counterparts. You’ll also save money and help the environment.
Don’t eat out: It’s hardly surprising to hear that eating out is going to cost a ton more than if you simply made your meals at home.
Use cash back apps: Cash back apps are an easy way to earn cash for purchases. They often offer coupons, discounts, and other promotional codes that can be redeemed on selected products or services. Check out these five best cash back apps.
Use Ibotta every time you shop: Ibotta is a mobile app that rewards users with cash for shopping. Users earn money by scanning barcodes and completing tasks such as taking surveys, watching videos, or answering trivia questions.
Stop buying K-Cups: In recent years, K-Cups have been a popular way to brew coffee for many people. However, the problem with these pods is that they are actually quite expensive and environmentally unfriendly. The cost of a K-Cup is roughly three to five cents, whereas the average coffee shop brews a cup for two or three dollars. Additionally, many people are concerned about the waste that comes with K-Cups. Coffee pods are typically made of plastic, which cannot be recycled and is often littered on the ground for people to pick up. As a result, here is a reusable alternative that is cost effective and environmentally friendly way to drink coffee.
How to Live Simply and Cheaply
A budget can help you live a simple and cheap life. It allows for the spending of money on what is necessary to keep your quality of life up at all times.
It’s important not to spend too much time thinking about how you’re going to pay for things because that will only lead to stress, which leads to bad financial habits like overspending or taking out loans when they don’t need them.
The best way to live cheaply is by not spending on luxuries or buying too many things.
Instead, focus on big purchases. For example, buying a car can be expensive but it will make your life easier as you won’t have to rely on public transportation or worry about traffic jams.
Most people, do not want to go to the extreme of how to live super cheap.
But, that is completely up to you and what you want to do with your life.
You can choose your lifestyle.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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What do you think of when I say, “smart with money”?
Do you remember any significant life events such as landing your first job after college or signing up for a lucrative opportunity to invest in the stock market?
Most likely not.
Because those didn’t happen until later on in life and we were already smart with our money by then. But there was no rocket science behind it: we just learned about saving and investing early on and took action that eventually yielded positive results.
And if you didn’t, there is no need to fret. You are in the right place and everyone has to start somewhere.
It’s not long before you start to wonder how much richer your life and bank account would be if you had started earlier.
So, let’s do a reality check: what is the difference between investing 10 minutes per day and putting $10 into an investment each month?
A sensible answer would be that investing 10 minutes per day is worth $1,000 in a year.
Your time has value and you are getting richer by the minute!
So, what are you waiting for?
Let’s learn how to be smart with money.
How to Be Smart with Money
Money touches nearly everything we do in our modern society.
It’s what keeps the wheels of commerce turning and enables people to get by without physical labor, so it is important that you know how to manage your finances well.
To be smart with money means understanding its power and spending on what matters most for your life goals.
You need to make sure you are paying for your day-to-day expenses while saving for emergencies, retirement plans, and long-term investments like a home or college education.
Money helps us to achieve our goals and dreams, increase our quality of life, and buy everything we need or want.
If you’re just starting out with your finances then this article is for you! I will give some basic steps on how to be smart with money.
In other words, this article is a crash course on how to make your money work for you! You’ll learn what financial independence means and why it’s important to have a large enough nest egg. Read more now!
Why You Need to be Smart with Money
This is exactly how can I be wise with money.
The most important thing is to cultivate the habit of saving money. The fact that you are reading this article likely means that you understand how important it is, but if not then it’s time for some serious change! If your goal in life is security and doing something meaningful with your life, then building wealth will be a significant step towards achieving those goals.
When we have enough money saved up, we can start investing our funds into different assets such as stocks or real estate so that they grow and compound. The more money we have, the more freedom and control we will gain over our lives.
There are many ways to be smart with money. Here are some suggestions that can help you save, invest, or earn more money.
7 Steps to Be Smart with money
It’s not easy to be smart with money, but it is possible.
Start by building a budget and identifying your spending habits. It takes time and hard work, but once you’re on track for saving money consistently over the long-term, you will find yourself in a much better position financially than those who are constantly struggling or living paycheck to paycheck.
Here are the exact steps to follow:
Step #1: Set Goals
Set goals for yourself. It’s important to have clear, measurable, attainable goals that you will be able to achieve in order to keep your motivation up when you are working towards them.
In order to have a better future, it is necessary to start saving for the future now and not wait any longer.
Set goals and save money every month so that when your goal is achieved, you can spend more time enjoying what life has in store for you.
In order to set goals, it is best to reflect on what you want in your life.
What do you want to know?
Who do you want to be?
What do you want to experience?
What is your purpose in life and how will this help you get what you want?
It’s also important to make a plan for achieving these goals.
For instance, if you want to be a millionaire, what are some steps that you can take today? Maybe it means getting more education or saving up for retirement.
You have the power to set goals and make plans to achieve them.
Action Step: Dig deeper into making smart financial goals.
Step #2: Managing your Budget
A budget can be a valuable tool for managing your money and preventing financial stress.
More importantly, to become smart with money is to create a budget that you can follow. You should also save your money, especially if you want to build wealth.
Managing your budget is a step-by-step process that requires you to have a budget.
You should start by setting up a spreadsheet to track your income and expenses. The next step is to create a budget that reflects your financial situation. You can use an online Google Sheet, Microsoft Excel spreadsheet, or personal finance software like Quicken.
Action Step: Dig deeper into how to make a budget.
Step #3: Paying Off Debts (non-mortgage debts)
Dealing with debt is difficult enough, but it can be made easier by paying off your monthly payments.
Paying off debts is the process of getting rid of outstanding debt and freeing up cash flow. This can be done by creating a plan to get out of debt, avoid taking on smaller manageable debts or simply by not spending as much.
Pay off your high interest debt first, such as credit cards and loans. This will help reduce the amount of interest you pay each month.
When you are able to pay off your debts on a regular basis, the interest rates will go down and this will save money in the long run.
Paying off debt faster and building wealth is easier than ever by following this action step below.
Action Step: Dig deeper into how to get out of debt.
Step #4: Save More Money
Save more money is a step in the process of achieving financial independence.
Saving money and building wealth is something that anyone can do. Once you get into the habit of saving money, it becomes easier to increase your savings rate or build up an emergency fund.
This step involves taking on additional work and increasing your income so that you can save more. By saving more money, you will be able to reach financial independence faster.
It is important to create an emergency fund and invest in a money market account. This allows you to save for future goals and emergencies with less risk, as well as build wealth faster.
Action Step: Pick a money saving challenge for you!
Step #5: Track Expenses
Track expenses is a phrase that means to collect or record the money that you spend on various things over a given period of time. This includes bills, groceries, and anything else expenditure-related.
Track your spending or review debit/credit card transactions and receipts to begin to understand where your money is going.
This will help you stay on top of what you are spending so that you can be more efficient with your finances.
Track your spending habits to find the big leaks in your wallet. You should know what you are spending money on, where it is going and how much you spend.
For at least a month, track your expenses in order to get a better understanding of where you can save. This will help you set goals and make conscious decisions about money management.
Action Step: Try a no spend month to prioritize your spending.
Pick a money saving challenge for you!
Step #6 – Increase Income
There are numerous ways to increase your income. You can increase your income by working more hours, starting a side business, or taking on additional responsibilities at work.
The fastest way is to think of businesses, products, or services that people want – use Google to find the products and advertise your niche. The benefit of working for yourself is there are no income limits on what you can make.
Many people want to make money online, but most of them need help figuring out how to do it.
To start, you need to figure out what your skills are and then find a niche that is in demand. For example, if you have good writing skills, it might be best for you to try blogging or find freelance work.
Don’t give up. If you want to make a lot of money, you have to put in the time and effort!
Action Step: Find ways to make money fast.
Step # 7: Invest Wisely
Investing wisely is the act of making investments that will provide positive returns.
Investing in stocks, bonds, or other types of securities can be risky, but it can also make you rich. Investing wisely means understanding the risks and rewards of your investment.
If someone asked you, “What is the smartest thing to do with your money?” The loud answer is to invest money consistently.
Investing early on and taking action eventually yielded positive results.
Investing is a marathon and not a sprint, so we need to start small and take it one day at a time.
Investing in a variety of assets is the best way to maximize your returns. Invest only in what you know and understand, invest for the long term, and diversify investments.
Action Step: Learn how much you can make in stocks.
10 Simple Smart Money Tips
On Reddit personal finance, you can find hundreds of answers to what is a money smart person, which is great but can be overwhelming.
Smart money tips are a great way to build wealth and get rich faster. These smart money tips will help you learn more about personal finance, save time on your monthly expenses, and grow savings for the future.
Here are specific ways you can become money smart today:
1. Build an Emergency Fund
An emergency fund is a savings account that’s been set aside for the unexpected.
It is used to cover emergencies, such as car repairs or medical emergencies, and can also be used when you have a job that doesn’t offer health insurance.
It’s important to set up an emergency fund because unexpected situations can happen at any time, and you won’t be able to use your credit cards or other debt to pay for them.
2. Save for Larger Purchases and Expenses
Save for larger purchases and expenses is a financial planning strategy that entails saving a certain amount of money each month to put towards future, much bigger purchases or expenses.
It’s important not to spend all of the money you save, as it’s possible that the future expense will not come to fruition.
This is exactly how you stay out of debt.
3. Steer Clear of Debt
Keep your debt low, and pay it off when you can.
Good debt is debt that will help you reach your goals in the future or help build a business. Bad debt is debt that you will not be able to pay back, and if you default on this type of debt, it can have a huge impact on your credit score.
To get out of debt, figure out how much you owe on various debts and decide what to do with the money.
4. Start Investing for Retirement
Many people have a hard time saving for retirement. This is unfortunate because of the power of compound interest, which means that you will earn more money on your investment over time.
Start saving 15% of your income as soon as you can for retirement. This will allow for passive income later in life.
The best way to start investing for retirement is by setting up a Roth IRA.
You can then invest your money with low or no fees and earn tax-free returns until you retire.
This means every time you get a raise, put that extra cash into an account that will be used for your retirement.
5. How to Save for Kids’ College
There are a few different ways to save for kids’ college. One way is to pay for their education through a 529 plan, which is a tax-advantaged savings account that allows you to save for college expenses. Another way is to use a mix of tax-advantaged and taxable investments like an IRA or 401(k), which will take some time to build up your savings but will allow you to invest in stocks, bonds, mutual funds, and other investments that are safe for retirement.
The best way to save for your kids’ college is to start saving early.
Also, you need to check out this scholarship program to lower the cost of college.
6. Find a Good Credit Card
Credit cards offer the best interest rates on purchases, and they’re easy to find with little risk. Apply for one that charges no annual fees and offers a balance transfer promotion.
Even better, you want a credit card that offers you cash back on your purchases.
7. Talk about Money
In order to be smart with money, it’s important that you talk about finances and learn from them. You can normalize talking and learning about finance by using a planner or financial statements.
It also helps to meet up with other people who have similar values in the community so they can help support your journey towards wealth building.
By talking openly about finances and learning how to be smart with money, it helps people get wealthy.
8. Learn about Money
Money is a topic that most people know little to nothing about, and it can be hard to get started.
However, Money Bliss provides some helpful tips on how you can begin building your wealth in the simplest way possible.
Wealthy people are getting richer by staying up to date with money matters.
Building wealth starts with thinking about your finances the right way. It’s not about losing weight or running a marathon; it’s about how we use the resources we’re given and the smart money management skills we need to get what we want out of life.
9. Know the Purpose of Money
Most people believe that it is “the key to happiness” to have enough money, but studies show this is not true.
We know money does not buy happiness, but it doesn’t mean you should live without it.
In fact, you need to know how money helps you find time freedom.
Time freedom is a relativity new concept; yet, it is the driver behind finding happiness with money.
10. Be Aware
Awareness of spending habits, saving, and donations are all examples of smart money skills.
By understanding how your current income is allocated to different expenses–including the ones you can’t control like mortgage rates or gas prices–you’ll learn what really drives your monthly budget.
When it comes to money, you should be smart about your spending habits. By doing this, you will have a better understanding of how much money is coming in and going out so that you can save more or donate more.
You should also know the difference between saving for the future vs living day-to-day expenses because these are two different things.
There are many perspectives on how to manage money. And honestly, there isn’t one opinion that dominates from another.
That is why investing in yourself to read some of the best books on how to manage money is key to long-term financial success!
While many of the concepts may be similar, there is ALWAYS something unique I learn after reading each book.
Happy reading!
Photo Credit:
amazon.com
Hands down this is one of my favorite books on how to manage money of all time.
The reason is simple.
It is easier to follow regardless of your background, knowledge of personal finance, or love/hate relationship with numbers, and money savviness.
You cannot learn how to manage money successfully without reading this book. This is one of the best gifts that you can give.
Key Takeaways – Creating your F-you fund will dramatically change your financial independence and your future.
Photo Credit:
amazon.com
This book by David Bach is the inspirational story you need when motivation is low to stay on budget.
You learn the secret to automatically secure your future – all through automatically saving money. This is a real system that any person can follow.
If you are struggling to stay on course and motivated, then you need to pick up this book. Once you read it, then pass it along to a friend to keep the motivational and accountability train going.
Key Takeaway – Automatically saving 10% early on will guarantee your millionaire status.
Photo Credit:
amazon.com
This book covers every aspect of money from debt, saving accounts, automating finances, set-it-and-forget it investment strategy, how to handle big purchases (car, house, wedding, kids) plus how to negotiate a raise at work.
These are the basic principles on how to manage money that needs to be taught in school. Call this book your beginner’s guide on managing your finances and setting yourself up for long term success!
Take control of your financial situation. By becoming active, you don’t have to continue to hold for a magically change.
Make sure you get the 2nd edition that was revised in 2019.
Key Takeaways – Ramit Sethi, the author, provides you word-for-word scripts that will save you thousands of dollars on loan interest and lowering all of your expenses. That alone is worth the $9.
Photo Credit:
amazon.com
The goal is to become financially independent as quickly as possible.
This is something the author Grant Sabatier has achieved and retired at the age of 30.
He offers counter-intuitive advice about money so that you can actually live the life you want. This FI movement is picking up speed and something that you shouldn’t ignore regardless of your age.
Key Takeaways – You will not walk away from reading this book the same person.
Photo Credit:
amazon.com
This is what we all dream of… be set for life. Not to have to worry about the next paycheck coming in. Running out of money each month. You want money in the bank and the freedom to do what you want to do.
Become set on escaping the 9-to-5 grind and lay a solid foundation with money. According to the author, Scott Trench, you must be willing to work harder and smarter than the average person.
Find the motivation to conquer your financial goals early on.
Key Takeaway – Be prepared to start saving 50% of your income while still enjoying life’s luxuries at a younger age.
Photo Credit:
amazon.com
This recent release is about how you behave with money. The decisions that are made on the go and not when looking at a spreadsheet.
The book is filled with 19 short stories on how emotions play such a big part with how we handle money. Everyone handles money and investing differently and that is okay, but learning how to know what works for you.
Key Takeaway – This book is meant to be thought provoking on why we do silly things with money.
Photo Credit:
amazon.com
This is the perfect book for beginners written by a (retired) millennial.
You will walk away with a solid understanding of budgeting and why tracking your net worth will boost your money management efforts.
She puts everything into simple terms and provides uncomplicated and realistic solutions to handing your finances.
Key Takeaway – This book is loaded with sass and humor, so you will find the lessons upbeat and honest to a normal dreary topic of personal finance.
Photo Credit:
amazon.com
The long term reason to save money today is to not work for years. If you want a drag on your portfolio by using a financial investor, then don’t read this book.
If you want a classic guide on getting smart about the stock market and becoming financially independent, then this book is for you.
The author teaches how to make index fund investing work for you and help you to achieve your financial goals. Plus with having little risk.
Key Takeaway – The investment scene doesn’t have to be scary and confusing after learning the basics of investing and creating a simple portfolio.
Photo Credit:
amazon.com
One of the best ways to build income is to become your own boss whether, through a side hustle, real estate investing, or building a business. However, too many times expenses swallow business before they ever churn a profit back to the owner.
Mike Michalowicz will lays out the Profit First Formula, which will transform any business on the way they manage money.
This is a must-read for anyone owning their own business, a board member for a corporation, or looking to start their own business. This is how you build a sustainable, no-ceiling income.
Key Takeaway – You will finally know how much you have to invest in your business and always take home a profit.
Photo Credit:
amazon.com
The last book on the top 10 best books to manage money isn’t even focused on money!
It is how we handle and deal with our stuff. Unfortunately, buying all that stuff comes at a cost and normally a big price tag. Plus the cost to maintain the stuff we already own.
The book by Joshua Becker helps you to open your eyes to a slightly different lifestyle that may change your life forever.
Key Takeaways – By learning to live with less stuff, there is more money in our budget to spend on other things or experiences.
Ready to Be Smart with Money?
Being smart with your money is about making good choices.
It’s important to know what you need and what you don’t because if you spend too much on things that aren’t necessary, you’ll never save enough to buy the things that are important to you.
Becoming rich and building wealth is all about making smart choices!
You need a goal, sometimes called an objective or an endpoint, and you need to set up a plan.
There are many steps that can help you be smart with your money. For example, never save for “a rainy day”; instead save for all the days.
The steps to be smart with money are not difficult, but the effects of being smart with your finances will last throughout your life.
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With flight disruptions, natural disasters, and other issues, travel insurance has become a popular option for travelers. While you can purchase travel insurance through third-party providers (and get specific insurance when booking flights, hotels, and rental cars), you may already have credit card travel insurance at your disposal.
So, should you choose a credit card specifically because it offers travel insurance? Below, we’ll take a closer look at what credit card travel insurance is, how it works, what it covers, and why you might want a credit card with travel insurance ahead of your next adventure.
What Is Travel Insurance?
Travel insurance protects consumers against financial losses when traveling domestically or internationally. It can cover everything from lost luggage to new hotel arrangements because of canceled flights to medical emergencies while on vacation.
Travel insurance can also protect you before your trip. If something changes, like a family emergency, that will keep you from traveling as planned, travel insurance might get you a refund for your expenses.
You can find travel insurance through insurance companies, travel agents, and insurance comparison sites. Your car insurance policy may insure you even in a rental car, and certain hotel booking sites may allow you to make refundable accommodations for a fee. But did you know that your credit card may also already cover portions of your trip?
How Does Credit Card Travel Insurance Work?
Credit card travel insurance is a set of coverages offered by select credit cards to protect you when traveling on qualified trips. How credit card travel insurance works varies by card, however. It’s important to read the fine print of your credit card to understand what may and may not be covered.
The main thing to remember is that you typically need to use the credit card when booking your major travel expenses (airfare, lodging, and transportation) for those costs to be covered should something happen.
Recommended: Tips for Using a Credit Card Responsibly
Types of Travel Covered by Travel Insurance
Each travel credit card will have its own inclusions and exclusions for travel insurance. But generally, credit cards with travel insurance may offer trip protection and coverage for unexpected medical expenses.
Trip Protection
Trip protection covers a wide range of potential insurances your credit card might offer when traveling:
• Trip cancellation and interruption insurance: If you prepaid for a trip and have to cancel it, or are on a trip and need to end it early, your credit card may cover this. Read your credit card’s policy closely to understand how your credit card works and what qualifies as a covered trip cancellation or trip interruption. Unexpected injuries or illness, inclement weather, terrorist action, a change in military orders, and jury duty are examples of reasons a trip may be canceled or end early — and be covered by credit card travel insurance.
• Trip delay insurance: If your flight, bus, cruise, or other transportation (called a common carrier) is delayed or canceled and you miss activities or lodgings that you’ve already paid for, your credit card may cover this. In addition, such policies might cover your expenses as you scramble to find new lodging, meals, and transportation.
• Rental car insurance: Check with your car insurance provider before booking a rental to understand if your coverage extends to rentals. If it does not (or if you do not want to make a claim with your car insurance provider), your credit card might also serve as an insurance option in the event of an accident. Read the fine print carefully; many credit cards require that you decline the insurance from the rental company for the credit card travel insurance to apply. Some credit cards only offer secondary car insurance, meaning they require you to file a claim through your personal car insurance first.
• Delayed or lost baggage insurance: If an airline loses or damages your baggage, you can make a claim for the (depreciated) contents of the bag. Some credit cards may even cover delayed baggage since it can put a dent in your plans. Just check your policy: You may have to put in a claim with the airline before your travel credit card will step in.
Medical Coverage
Travel insurance through credit cards may cover medical expenses as well, including:
• Medical insurance: If your health insurance doesn’t cover medical costs incurred abroad, travel medical insurance might cover qualified expenses. In most cases, Medicare does not cover health costs incurred outside of the U.S., so travel insurance can be helpful for seniors relying on a government health plan.
• Accident insurance: While we don’t want to assume the worst can happen, this insurance sometimes offered through credit cards offers a payout if you are killed or seriously injured (such as dismemberment or loss of sight, hearing, or speech). This applies while traveling on a common carrier or on a covered trip paid for with the card. In this way, accident insurance can operate like life insurance while traveling.
• Emergency evacuation: If you fall ill or are injured while traveling and need to be evacuated, including through emergency airlift, this coverage will pay for associated expenses. This also may cover emergency evacuations due to extreme weather or political unrest.
Recommended: Preparing Financially for Travel
Benefits of Credit Card Travel Insurance
Credit cards offering travel insurance have multiple benefits. Not all credit cards offer travel insurance, however, so it’s a good idea for consumers to weigh these benefits against benefits of other credit cards to determine which card is right for them.
Among the benefits of credit card insurance are:
• Financial security: Travel can be a big expense. When unplanned events cut trips short or leave you stranded, travel insurance can protect the money you have spent.
• Emergency coverage: Whether you encounter dangerous weather, a terrorist incident, or a medical emergency during travel, having travel insurance can make it easier to deal with crises while on vacation.
• A sense of comfort: Ultimately, insurance policies can ease consumers’ worries when traveling. Knowing that there is a Plan B when your best-laid travel plans go awry can be comforting, especially when facing an emergency in an unfamiliar place.
Recommended: Tips for Finding Travel Deals
Picking a Credit Card for Travel Insurance
When looking for a new credit card, you can search specifically for cards that offer travel insurance among different credit card rewards. Note that many of these can have annual fees, so they might only be a good choice if you’re a frequent traveler.
Before applying for a credit card, check your credit score to ensure you can qualify.
If travel insurance is not your top priority for choosing a credit card, you can consider other incentives, like credit card bonuses for new customers or cash back rewards.
Recommended: What Is a Charge Card?
Filing a Travel Insurance Claim
If you experience an unexpected event, like a delayed flight, during your trip, calling your credit card company to ensure your emergency expenses will be covered can be a smart idea. This might keep you incurring credit card payments for meals or lodging that won’t actually be covered.
Look at the back of your credit card to find the phone number for a benefits administrator. They can help you as you begin your claim process.
As explained previously, certain credit cards may require you to file a claim with another entity before they get involved. For example, a credit card offering secondary auto insurance requires that you file with your personal car insurance company first. Likewise, if an airline loses your luggage, a credit card’s travel insurance policy may stipulate that you file first with the airline.
When you know you will be filing a claim, saving your receipts (and taking photos of them as you go) can be a smart way to stay organized. Filing as soon as you’re home (or even while still traveling) may expedite the process. In fact, some credit card insurance policies might have deadlines for filing claims.
The Takeaway
Some credit cards include travel insurance among their perks. Insurance coverage can vary, but it might cover delayed flights, trip cancellations, emergency medical expenses, and lost luggage. Travel cards with such coverage often have annual fees, so it’s a good idea for consumers to weigh multiple options when selecting a credit card and insurance policies.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you.
SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.
Wherever you’re going, get there with SoFi Travel.
FAQ
How do I know if my trip is covered?
Not every credit card offers travel insurance. Always read the fine print of your credit card before making travel insurance decisions ahead of and during your trip. If the legal jargon is confusing, you can typically contact a benefits administrator for clarification. Look at the back of your credit card to find the number.
What does travel insurance cover?
Every credit card travel insurance policy is different. Common coverages include trip cancellation or interruption, accident and medical, lost luggage, and even rental car insurance. Research your card’s policy ahead of your next vacation.
Will the expenses not charged to my card be covered?
Some credit cards with travel insurance require that you use those cards on travel expenses for the insurance to apply. Others may automatically apply certain types of coverage, like medical coverage, regardless of what card you used to book your trip. Reach out to your card’s benefits administrator before travel if you need help interpreting the travel insurance policy.
Photo credit: iStock/Atstock Productions
**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.
When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
Eligibility:
You must be a SoFi registered user. You must agree to SoFi’s privacy consent agreement. You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia’s website or app, or any other site operated or powered by Expedia is not eligible. You must pay using your SoFi Credit Card.
SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
They say “Cash is king,” but these days, it seems like people are swapping cash for any of the many readily available digital payment options. Still, while it may feel like we’re headed for a cashless society, having a few dollar bills on hand is always a good idea.
The good news is that you have options for withdrawing cash. When you keep money in your checking account, you can quickly access your funds in several convenient ways, including by using a debit card and an ATM network. In this article, we’ll go over how to withdraw money from a checking account in three easy ways whenever you need cash.
Earn cash back with your debit card
Discover Bank, Member FDIC
1. Use an ATM
One of the easiest ways to quickly withdraw cash from the bank is to use an automated teller machine (ATM). Not sure how to withdraw money from an ATM? Insert your debit card into an ATM and verify your identity by entering your 4-digit security PIN to access your funds. Remember that while most ATMs accept all cards, withdrawing from an ATM outside your bank’s network usually comes with a small fee, and your bank likely has a maximum daily limit on withdrawals from those machines.
Avoid paying ATM fees by only withdrawing cash from machines affiliated with your financial institution. Use your bank’s ATM locator to find machines closest to you, or look for no-fee ATMs at local retailers or gas stations. Discover® customers can access over 60,000 no-fee ATMs and easily find affiliated machines through the Discover mobile banking app.
2. Cash a check
If you receive a check from an employer or someone else, you can cash or deposit it in several ways. The easiest way to cash a check with no fees is to deposit it into your checking account and wait until the funds are available to withdraw the cash. With a Discover Cashback Debit account, you can do this from anywhere—usually in less than a minute—via mobile check deposit.
Wondering how to withdraw money from the bank immediately? You can “cash” that check—versus making a deposit and then withdrawing cash from your account—if your bank has a convenient brick-and-mortar location. Simply present the endorsed check and your ID to the teller, and you’ll be able to cash either the entire check amount or a portion of it. Warning: If that check doesn’t clear the issuer’s account, your bank will reverse the transaction.
Alternatively, you may be able to cash the check at the bank that issued it—although, depending on the bank, there may need to be enough money in the account to cover the check; you may also have to pay a fee. Some large grocery stores or retailers will exchange a check for cash, but again, you’ll likely have to pay a fee for the convenience.
Another way to receive cash immediately is to write a check for cash withdrawal against your checking account. In this case, you write “cash” on the payee line of one of your checks and hand it to a teller at your bank. You can also write a check to purchase a prepaid debit card, but keep in mind the fees associated with a prepaid card can be steep.
3. Use a debit card to get cash back at stores
Depending on who you bank with and where you shop, you can also withdraw money from your checking account when you pay with your debit card in person. First, confirm which retailers and grocery stores offer cash back at checkout, then verify how much cash you can withdraw for no additional fee.
If you often shop with your debit card, consider a card that rewards you each month for your purchases. By using your Discover Cashback Debit card, you can earn 1% cash back1 on up to $3,000 of debit card purchases every month and have access to our network of more than 60,000 no-fee ATMs.
Never be caught without cash on hand again
Digital payment methods like credit cards and mobile services may be growing in popularity, but cash will likely be a widely accepted form of payment for the foreseeable future. With a checking account and debit card readily available, you can withdraw cash from your bank account when you need it and avoid extra fees.
Make cash withdrawals even easier and stay free of extra fees when you open a Discover Cashback Debit account today.
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1 See Deposit Account Agreement for details on transaction eligibility, limitations, and terms.