Making the most of financial opportunities is essential during uncertain economic times. Here are five methods to generate additional income that you may be neglecting. Although none of these will result in wealth, they can offer a beneficial advantage when implemented in conjunction.
1. Enhance Your Savings Account
Verify the interest rate of your savings account. By transferring your funds from mega-banks to FDIC-insured online banks or NCUA-insured credit unions, you can earn an excess of 4%. For instance, Apple provides Apple Card customers with a savings account that is guaranteed by Goldman Sachs and has an annual percentage rate (APR) of 4.40%.
2. Utilize Employer Retirement Matches
Numerous employers provide 401(k) matches, which are essentially free money that can be used to contribute to your retirement investments. For example, a $3,000 annual investment can be transformed into $4,500 through a standard 50% match on up to 6% of your compensation. If you are seeking to simplify your investment decisions, you may want to consider a target date retirement fund.
3. Utilize credit cards that offer rewards
Using cash back credit cards can result in a return of funds to your pocketbook. Clark Howard suggests the Citi Double Cash® Card, which provides a 2% cash back reward. Avoid interest charges that could negate the advantages by paying your balance in full each month.
4. Claim Welcome Bonuses
Welcome incentives are frequently included with new credit cards or bank accounts. For instance, a credit card may provide a $300 reward for spending $2,000 within a three-month period. Banks may provide both interest and incentive money to new accounts that meet specific deposit requirements.
5. Employ Cash Back and Discount Applications
Smartphone applications are capable of conducting modern couponing. Brand-specific applications and cash back applications, such as Honey and Rakuten, provide discounts and cash back on purchases. Although you do share some consumer data, these applications can result in savings of 5-10% on your purchases.
Acknowledgment: This article was inspired by and includes information from "5 ‘Free Money’ Opportunities You Might Be Missing Out on in 2024" published on Clark.com. For more detailed insights, you can read the full article here.
