1Credit Card Cash Back Offers
Cash back from credit cards is easy because a credit card is something you can use almost anywhere, to buy almost anything. Now, I know the average rate of 1% to 4% sounds pretty insignificant. However, if you do your research you can find cards that offer significant perks such as sign on bonuses ranging anywhere up to $500 and I have seen 0% interest deals for as long as two years! Using a 0% deal to leverage expenses and reduce say student loan debt or even free up cash flow for investments in your tax deferred accounts lends major dividends in the long run.
2Bank Loyalty Programs
Banks want your business, and like all businesses they are competitive. They love it when you stick with them for all your money and money accessory needs. Their rewards vary, from lower mortgage rates, to clearing your deposits faster, and more cash back with purchases.
For example, I have a Bank of America Visa Card. That card gives me 1% cash back. That in itself is not impressive, but when I deposit that 1% money into my Bank of America bank, the cash back from that transaction is 10%. Now, when I have more than $20,000 in my bank account, that 10% becomes 75%! That means that for every dollar I got from the 1% cash back, when deposited into the account, makes 1.75% interest.
3Let your credit card and bank work together
More specifically, open a new bank account and fund it with your credit card. If you put $50,000 in the account, you will make $500 of tax free money because it counts as a cash-back purchase. Yeah, cash back associated with purchases is tax-free! This is the case because they are discounts and not earnings. There are other ways of doing this such as buying cash equivalents such as visa gift cards to earn rewards.
4Don't let high interest debts linger
Seriously, pay off any high interest debts right away. You want that fixed rate, as paying off the debt right away can save you money in the long run. I would recommend this for debt that is greater than 6%, such as my student loans. Their interest rates are currently 6.8%, and I didn’t want to get into any more debt or invest in anything until I am sure I can afford it. Furthermore, I am essentially getting a garmented 6.8% return by paying this off.