How to Make Money by Saving Money

Everyone works hard to earn their money yet many are happy to waste quite an unnecessary amount of it by simply not making the best financial decisions. Instead of making your money and watching it drain away each month, you can make your money work for you by keeping more of it rather than squandering it. There are many areas where you can save money and thus make money instead of wasting it.

One of the largest monthly expenses a lot of people carry is their mortgage payment. Taking a mortgage out over a ridiculously long term such as thirty years will cost you far more than reducing the term by ten or fifteen years. By refinancing your mortgage to a shorter term you may be able to find a better deal as well as saving tens of thousands of dollars on wasted interest payments which a long term mortgage represents.

Many just continue paying their mortgage without considering changing lenders and looking to refinance for better interest rates. Take the time to comparison shop different mortgage offers, or ask your own lender if you can reduce the interest rate. Look to either overpay your mortgage and thus reduce the principal which attracts interest, or reduce the term.

If you are like many perhaps you foolishly pay your credit card company interest each month, by only making the minimum payments. You should strive to reach the position where you are able to clear the full balance of your credit cards each and every month, and thus never pay a cent in interest. If you have a fee charging card then change credit card providers or ask them to waive the fee stating you will close the account.

Once you can clear your balance each month not only will you save money on wasted interest payments but you can begin to make money with a good cash back credit card which you can put all your essential monthly expenditure through and thus get a cash back on every bill you pay. This not only saves you money it makes you money, and gives immense satisfaction too. You can also make money by switching to credit cards which offer an initial statement credit or to one which rewards you for paying on time.

Don’t waste any money by making cash withdrawals on credit cards which are expensive transactions, but plan how much you need to withdraw from your bank account each month and do so by debit card. There is no reason why millions are starting to pay ridiculous fees for using their own money with prepaid credit and debit cards, just for the convenience of using plastic.

Instead open a bank account and use your debit card, or use cash. The only time it makes sense to use prepaid cards is for foreign travel or to ensure your teenager has an emergency fund. The banks have pulled a wonderful trick enticing people to pay to use their own cash on these cards.

Perhaps you waste money on your insurance premiums by not shopping around for the best deal, or paying for unnecessary cover which you already have through a credit card or another insurance policy. Not only should you shop around between providers but if you ensure that your credit rating is very good you will be offered preferential insurance rates, along with mortgage rates, and loan rates.

Every cent you save which you previously wasted can go into a high interest savings account. Don’t leave your money in coin jars and non interest bearing bank accounts, but put it all into savings accounts and reap the benefits.

Every day millions of people just complacently accept the arrangements they have in place and pay over the odds for their financial transactions. Instead become an astute consumer, and understand that you do not need to pay to use your own money, and accept that when you use credit cards it isn’t your money. Comparison shop aggressively for better deals and make money by saving money and enjoy the sense of well being you achieve by saving.