The allure of free money can motivate people to do some wild things. People want to get paid without having do to work, but the concept of actually getting free money seems impossible. Believe it or not, there are ways you can make money without doing anything new.
This is not a scam. There’s no Nigerian Prince asking you to wire money, and there’s no get rich quick scheme. If you have money, there are safe and secure ways to turn that it into more money. You’re not about to quit your day job, but that doesn’t mean you shouldn’t maximize your earning potential.
Sometimes you need to have money to earn money. Other times, you need to embrace discounts and cash-back incentives when they exists. You should never need to change your spending habits, but you might need to change your perception of money. When you let your money work for you, not against you, you’re in a position to get some free money.
If you’re not using your money to get more money, now’s the time to start. Likely, you will only see small profits. However, a series of small gains can lead to big results.
High Yield Saving Accounts
Once you have money, you’re going to start saving it. You have a bank account, but your savings could be collecting interest. To do this, you want to look into a high yield savings account. What does this mean? Essentially, these are savings accounts that pay the highest interest for the money you put into savings.
Let’s say your account has a 0.75% annual percentage yield (APY). You put $1,000 into the account on January 1st. By the end of the year you’ll have $1,007.5 a $7.50 gain. This is not going to make you rich, at least not with that level of savings. However, the interest will compound. If you do nothing to your savings, you enter year two with $1,007.50. At end of the year you’ll have $1,015.56, an increase of $8.06. You collected interest on both your principle investment and the year-one interest.
As you add more to your savings, you will get more interest. The percentage won’t necessarily increase, but if you have $5,000 in savings, wouldn’t you want to receive an additional $37.50 annually?
Be aware that you’ll be taxed on this income, and some high yield savings accounts have limitations. This could be fees, or a limit to the number of transfers between checking and savings accounts. Try to avoid these limitations if they seem unrealistic to you, but definitely start getting interest when you can.
Credit Card Rewards
There tends to be a stigma around credit cards, especially when someone is young. People are left with the impression they’re designed to get you in debt and keep you in debt. Antidotally, there’s some merit to the claim, but using a credit card correctly can save you money or get you cash back.
Even a beginner credit card gives you the option to get cash back or some great rewards. If your card give you 1% cash back or 3% at all restaurants, you could be getting some rewards for regular habits. Your $300 grocery, gas, and Target bill will give you $3 back. Then you spent $100 at Starbucks and Applebees, so you get another $3 back.
Once again, this is not a get rich quick scheme, but it is an opportunity to get free money without changing your spending. Credit cards can be more lucrative if you’re getting specific rewards rather than straight cash. A great example would be airline miles, as many people can avoid paying for flights due to their credit card rewards.
Practicing good spending habits will build a good credit score. This is a way to get more benefits in the future. Start young, get every dollar back you can, and play a longterm game.
Cash Back on Online Purchases
If you’re shopping online, you should be embracing Rakuten. This service allows you to receive a percentage back on purchases from qualifying stores, and there are many stores through the service. Each store has a different baseline for cash back: Target is 1%, Macy is 2%, and more niche places go higher. ShoeMall will award 6% cash back. Many of these percentages increase for sales and promotions, and it’s not uncommon for stores to offer as much as 10% cash back.
Even if you’re doing regular shopping at Target, you can get some money back. This is as easy as pushing a button, and the free money can add up quickly. If you spend $25 at Target, 1% is only $0.25. That’s still a quarter you’re capable of receiving on a purchase you were already making.
Perhaps this isn’t exactly “free money”; you have to spend money to receive it. However, the fact that Rakuten does not require any modification of spending habits means you’re not buying anything new. Plus, it stacks on top of existing promotions, coupons, and credit card rewards.
Match Your 401K
If you’re working a job that offers a 401K, see if your employer offers 401K match. While this is retirement funding, and you can’t access it today, it can literally double your retirement contribution. Many employers will match your 401K retirement contribution up to a certain amount. Other employers will only match a certain percentage.
If you’re making $50,000, and your employer matches your contribution up to 6%, can get an extra $3,000 in your 401K. To do this, you need to contribute 6% of your salary, $3,000, and your employer adds a second $3,000. This means your 401K has a $6,000 total contribution this year. If your employer only matches you 50%, then they would be adding $1,500 to your $3,000 contribution. Not as nice, but still a great perk.
When you’re young, it can be easy to view retirement as something you’ll contribute to later. Don’t wait! Your contributions at a young age can be the most beneficial. Just familiarize with your company’s vesting policy and know how long you need to stay at the company to secure your employer contributions.
Let Your Money Work For You
Free money is a term that seems too good to be true. Truthfully, it depends on how you define the term, but there are ways to watch your money grow. If you let your money sit in a checking account and pay for everything in cash, then you are passing on opportunities to let your money work for you.
When you start to familiarize yourself with different types of savings, you are entering the worlds of compounding interest and passive income. With minimal effort, you are getting money back while making no modifications to behaviors. Or, you’re collecting interest that will build upon itself. These are the types of strategies that will increase your net worth as time progresses.
It’s never too late to use your money to get more, free money. If you start young, you will allow yourself to collect more. Even if you’ve waited to start saving, you need to embrace changes sooner rather than later. These changes won’t make you rich, at least not right away, but money is money. An abundance of small changes have a huge impact in the long run.
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