Finance, Personal

7 Easy Ways to Save Money Leaking Your Wallet

This article is short and straight to the point. There are easy ways to save money for yourself from monies leaking out of your wallet unnoticed. I must admit it is easy to overlook, but it doesn’t take so much effort from you to get these done.

Money is easy to make; the hard part is how to keep it the real deal. Anyone can make money from selling their time to selling a good or service.

Here are 7 easy ways to save money leaking your wallet.

Easy ways to save money

1. Get a personal loan to pay off a high rate from the dealership:

Most times, second-hand cars come with a higher interest rate than brand new cars. In Canada/USA, it easily rolls up from 5% to 8% APR in interest rates.

A quick hack to save money is approaching a bank and applying for a personal loan at a lower interest rate, paying off the car dealership, and saving the difference.

2. Get a new credit card and transfer balance:

Now and then, banks offer promotional credit cards to lure in new customers. Sometimes, they offer a balance transfer with 0% on the transferred balance for six months. The balance transfer buys you time to pay off the principal before you start accruing interest again.

A new credit card only hurts your credit score minimally, but it will save money in the long run.

3. Apply for a line of credit:

A line of credit typically carries a lower interest rate than your credit card interest rate. You should have a line of credit first as your emergency fund if you lose your job or life events happen.

Still, secondarily, if you find yourself needing to cut back on the interest you are paying, you should “rob Peter to pay Paul” by taking out your line of credit to repay the credit card owed to save money.

4. Refinance your primary residence:

Yes, your mortgage is 25-year, and you are tied in your agreements and contracts, but it doesn’t have to be that way. Of course, there is a penalty for early payment and breaking your contract, but the benefit of interest fee savings outweighs this. Also, you get a lump sum to put into investment needs.

5. Pay off your debt:

It is simple logic. If you have savings in your bank accounts and owe an interest-attracting amount, pay it off and stop gifting out your money to the banks and other non-bank financial institutions. This is a better way to save money than accruing interest on the debt.

It comes across as evident to pay interest on the unpaid portion of your credit card payment, but the less apparent fees include your payday loans, furniture loan, among others.

6. Bank fees:

Bank fees are simple and operate similar to subscription fees you pay for a gym membership or Netflix, which need consistent review. An average retail bank charges $5 monthly for account maintenance, and depending on the type of account, you may be paying up to $25 monthly.

Forbes estimated bank fees in overdraft in 2020 as skyrise as $12.4 billion. It is healthy to close out bank accounts you do not use anymore as bank fees are easy $60 – $300 annually.

Meanwhile, some bank accounts waive their fees if you maintain a minimum balance throughout the month. If this is within your capacity, by all means, keep it by discipline to save money.

Recommended: 9 Ridiculous Common Bank Fees Burning Your Finances

7. Online Bank Account:

We are in 2021, and doing your transactions in a banking hall is out of fashion. No one goes to the bank to pay bills or sign mortgage papers anymore. We are all virtual. You may want to explore banks without a physical location.

There are a number of these online banks depending on what country you reside who they offer the same (if not better) services than the traditional high street banks. The fun part is that these banks are primarily free of bank fees and prove a hassle-free way to save money.

Other considerations:

Be careful with this and other options that require a credit check as they would have a hit on your credit score, which runs its cycle of 3-6 months to normalize.

If you have a mortgage application in wait, you want to stay away from any credit facility application until the deal is closed and you have your house keys. There have been instances where applicants could not close their mortgage because they signed up for a store credit card before the closing date.  

For similar articles on keeping your money, read the 10 Simple Savings Solutions That Really Work

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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