5 Easy Tips to Save Money

Here are 5 simple tips to save money next time you head to the store:

1. Buy discounted gift cards online. If you know you have to buy something from Target or Best Buy, visit a site, such as plasticjungle.com, and buy a gift card for less than the face value (for example, a $30 Best Buy card sells for only $28.20). Only caveat is you have to buy the gift cards ahead of time (so you need to plan your purchases).

2. Use your cash back card (but pay off the full balance each time). Using your cash back card can help you save on things you buy, but only if you pay off the balance in full each billing cycle. Otherwise, you are just wasting more money by paying the extremely high interest rates the credit card companies charge. By paying off the full balance, you pay zero interest and improve your credit score in the process.

3. If you shop somewhere frequently, it might make sense to sign up for the store credit card. An example is the Target credit card, which saves you 5% off everything. Since many people by a wide variety of groceries, home goods, etc at Target (or a similar store), it makes sense to get a credit card from here since you can get 5% off (again, it only makes sense to do this if you pay off the balance in full each month). However, make sure you only sign up for a card you shop frequently already before you have the store credit card (not one you convince yourself that you will shop there more now that you have a credit card for that store).

4. Use online coupons. Most all stores accept online coupons now (unlike before when there was a lot of fraud), so visit sites like Coupon.com or Coupon Mom to print out free coupons to save you on a wide variety of things. It's basically giving you a free discount.

5. Use the ship to store option. If you live near a store or will be driving near a store where you bought something online (e.g.  from WalMart.com or BestBuy.com), just choose the ship to store option and you save on any shipping costs. If you'll be passing by that store on your way home from work or from the grocery store, just stop by there and pick it up, and you pay nothing for shipping. Added bonus: many credit cards give you more cash back or extra airline miles for buying things from certain stores, but only if you buy online. So just buy the item you need online, and have it shipped to the store, then you save on shipping (shipping to store is usually always free), and get the bonus airline miles, points or extra cash back for free.

Maximizing Reward Points at the Grocery Store

How can you use your grocery store's reward points to maximize their benefits? Just by shopping smart.
First, sign up for the reward programs at any stores you go to, it's free and they just need your name, address and phone number (they usually have privacy notices so you won't get bombarded with other junk mail).

Next, make sure to shop at one store regularly. For example, in southern California, Ralph's grocery store offers 10 cents off per gallon for every 100 points you get from shopping there (and $1 = 1 Ralph's point). If you're already going to be spending money from grocery shopping, doesn't it make sense to try and get as much of it back as possible? Also, if the prices are comparable, buy things there to get the extra points vs. getting them at another store where you get no points, no cash back.

Also, like I mentioned in the previous blog, if you're paying with a credit card, use a credit card that pays you more cash back (or more airline miles, hotel points, etc) for use at a grocery store. As a caveat, make sure to check the prices at a grocery store for the items you regularly buy. If the prices are going up, then the points might not be worth it, and you should take your business elsewhere. The grocery business is very competitive and stores are fighting for your business, so it makes sense to use it to your advantage as a customer and take advantage of these free points programs next time you head to the grocery store for your weekly shopping trip.

Smart Finances with a Credit Card - Part 1 (Getting Cash Back)

How can you use your credit card to maximize savings on everyday purchases? If you have multiple cards, use them to maximize benefits. For example, Discover, American Express, Chase all rotate categories when you can get up to 5% back on purchases. January to March, Discover offers 5% back on travel purchases (airline tickets, hotels, cruises, car rentals) and purchases at restaurants, so rather than just reaching for any credit card, reach for the one that gives you 5% off this month. For March, they offer 5% back on Grocery store purchases.
Of course, there's one catch. You can only get up to a certain amount back, but you at least get some money back for your purchases that you would ordinarily make. Although a 1% cash back is standard for many credit cards, next time you're about to pay at the grocery store or pay for that cruise, see which credit card will give you the maximum benefit, and use that one rather than just getting the first card you see.

However, these type of rewards only make sense if you can pay off your balance each month. If you only pay off the minimum amount on your credit card statement, you get killed with the interest rate. That's how these credit card companies make a lot of their money. So, before you start trying to get cash back, pay down any outstanding balances, not only to improve your credit score, but also to make sure you're not a victim of those ridiculously high interest rates.