4 Unconventional Money Tips On Reddit That Actually Work

Credit card rewards can do more than just help make that next vacation a bit more affordable. They can be used to better your long-term financial health.

If you use a credit card like the no-annual-fee Chase Freedom Unlimited®, you’ll earn 5{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} cash back on travel purchased through Chase Ultimate Rewards®, 3{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on drugstores and dining at restaurants (including takeout) and 1.5{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on all other purchases. You can then use those cash-back rewards to pay down your credit card balance when you redeem them as a statement credit. This means your rewards are helping you live free from debt or reducing your monthly bills overall.

In addition to applying credit card rewards toward your financial goals, you can also maximize rewards by using them for purchases you already know you’ll make (rather than using them as an excuse for additional spending). If you plan on carrying a balance (which is almost never a good idea), any rewards you earn will be negated by interest fees.

Marguerita Cheng, a CFP at Blue Ocean Global Wealth, says treating her kids is an important goal for her. She cashes in her rewards for gift cards so her younger kids can purchase something for themselves. “My son and daughter were happy to be able to spend $200 each on Nike gear,” she says.

We all love a good deal, but scoring an item on sale gets even better when it helps boost your savings. The next time you buy something on sale, move that money you “saved” to an actual savings account. For example, if you buy a pair of shoes originally priced at $100 but are on sale for $80, take that $20 you saved and put it into your savings account.

Walsh identifies this technique as a powerful way to save money without having to think too hard about it. And Ramona Ortega, founder and CEO of fintech company My Money My Future, agrees. “Micro money habits are part of creating better habits all around,” Ortega says. “This is one way to allocate those ‘savings.'” Walsh just adds the caveat to make sure you don’t use sales as a reason to buy things you don’t need.

Where you stash your savings matters, too. Online high-yield saving accounts offer much higher returns than your traditional brick-and-mortar savings accounts, plus they’re accessible if you ever need to tap into your funds. With the below accounts, you have the chance to earn a strong APY north of 4{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b}:

Consider buying in bulk everyday items you routinely use (think toothpaste, deodorant, etc.) whenever they’re discounted. It’s worth pointing out that this is actually advice touted by Mark Cuban himself.

This is a good tip because, as Walsh points out, buying essential, non-perishable items in bulk for less money can be a great way to reduce spending and save trips to the store. “Fewer trips to the store not only saves time but help you avoid the temptation of walking around the store while trying not to waste money on things you don’t need,” Walsh adds.

Plus, given you’re going to end up buying these basics again when you run out, you might as well get them for a deal while it lasts.

When you go to make a purchase — and ideally a big purchase — it’s helpful to reframe how much that expense really costs you by converting the price from dollars to the number of hours you’d need to work to afford the purchase.

Not all (or even most) personal finance advice you find on social media is good. But the four tips above have been vetted by financial experts and can help you reach your goals.

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