5 ‘Free Cash’ Alternatives You May Be Lacking Out on in 2024

There’s no such factor as a free lunch, proper? Nicely, how about some free cash to pay for that lunch?

As all of us navigate some unsure financial occasions, it’s essential to make the most of all the straightforward “monetary layups” which are accessible to us.

On this article, I’ve recognized 5 free cash alternatives you’ll need to take into account. None of those will make you wealthy, however working them in tandem is usually a increase on your pockets.

You might already be making the most of a few of them. However, even if you’re, let this be a reminder to do a “checkup” to be sure you’re maximizing that chance in 2024.

This text was up to date in July 2024 and I assessment it each 6 months. Detailed notes on all updates may be discovered here.

1. Stash Your Cash within the Proper Financial savings Account

When is the final time you checked the rate of interest you’re incomes in your financial savings account?

You might be stunned to study that you would be able to earn greater than 4% (and generally much more than 5%!) in your cash with out having to tie it up in investments.

Cash skilled Clark Howard says the key to unlocking this free money is getting your financial savings out of mega-banks which are providing next-to-nothing in your financial savings account.

As a substitute, you’ll need to transfer it to a financial savings account with an FDIC-insured on-line financial institution or a NCUA-insured credit score union providing higher returns.

“Take that cash and provides it a booster shot,” Clark says.

There are some non-conventional methods to earn curiosity in your financial savings as nicely.

Apple’s savings account provide is an effective instance. The tech chief is providing Apple Card prospects a 4.40% APR on financial savings accounts which are backed by Goldman Sachs and FDIC insured. No charges.

Likewise, PayPal prospects might be able to safe 4.30% APR with a PayPal Financial savings account backed by Synchrony Financial institution.

You’ll be able to examine these APRs to a few of Staff Clark’s picks for best high-yield online savings accounts.

2. Take Benefit of Employer Matches on Retirement Financial savings

Saving cash is a crucial step towards a blissful retirement. And do you know that many employers are handing out free cash that will help you alongside the best way?

This comes within the type of a 401(k) retirement savings match. These may be as excessive as a dollar-for-dollar match in your dedication to saving by way of the corporate’s retirement plan.

One frequent instance of this can be a 50% match of your funding right into a 401(ok) on as much as 6% of your annual wage. So, in case you make $50,000 per yr, you could possibly flip a $3,000 annual retirement funding into $4,500 by way of an employer match.

Clark says an employer-matched 401(ok) is a good begin to retirement financial savings.

And relating to choosing how that cash is invested, he says most savers shall be finest served to set it and neglect it with a fund that manages your investments based mostly on the yr you’d wish to retire. This kind of fund will correctly modify the riskiness of the portfolio as you close to the goal date.

“Simply put the cash in, and put it in that focus on date retirement fund,” Clark says.

If you happen to’re new to investing, you may get extra of Clark’s recommendation for getting began right here:

3. Spend With the Proper Rewards Credit score Card

Do you know that utilizing the precise cash back credit card may put a proportion of practically each greenback you spend again in your pockets?

If you happen to’re paying with money or a debit card, you could possibly be lacking out on this free cash alternative.

Clark’s favourite kind of money again bank card lets you earn an unlimited 2% cash back. Clark carries the Citi Double Cash® Card, which affords 1% money again whenever you make a purchase order, and an extra 1% money again whenever you pay your invoice, in his wallet.

That’s like spending 98 cents on each greenback!

There are also rewards credit cards which have bonus incentives geared towards spending on factor like travel.

“My favourite reward playing cards are ones that truly pay you cash. I need money, as a result of no person can let you know when you’ll be able to or can’t spend your money,” Clark says.

If you happen to resolve to go this route and pay on your on a regular basis purchases with a bank card, Staff Clark strongly recommends that you just pay your steadiness in full every month. If you happen to don’t, the curiosity you owe on the steadiness will greater than negate the rewards you obtain on your purchases.

Ensure you’re doing this and following the remainder of Clark’s rules for using credit cards.

4. Snag a Welcome Bonus from Your New Credit score Card or Financial institution Account

If strategies No. 2 and No. 3 have impressed you to open a brand new bank card or checking account, you’ll be able to take the free cash alternatives to the following stage with this tip.

Oftentimes banks and credit score unions will incentivize you to open a brand new financial savings account, checking account or bank card by providing welcome bonus alternatives.

Bank card sign-up bonus offers usually have a spending requirement hooked up to them. For instance, a card could provide a brand new buyer a $300 assertion credit score in the event that they spend not less than $2,000 inside the first three months of card membership.

A number of the higher-end bank cards could provide bonuses worth $500 or more!

In the meantime, banks and credit score unions are providing related sign-up bonuses for opening financial savings and checking accounts.

I’ve had success in recent times getting sign-up bonuses from American Categorical and Uncover Financial institution for opening new financial savings accounts with them. The affords usually have a minimal deposit requirement and a time interval for which it’s a must to keep a sure account steadiness.

For instance, you might be able to earn a $200 bonus by retaining not less than $10,000 in a brand new financial savings account for 3 months. If you happen to choose your new on-line financial institution or credit score union nicely, you’re more likely to take pleasure in 4-5% APR on that cash whereas ready on your bonus.

5. Make the most of Apps for Reductions and Money Again Alternatives

Couponing isn’t simply for many who clip adverts out of the Sunday newspaper anymore.

A extra trendy (and handy) type of this multi-generational follow may be performed in your smartphone.

There are two completely different free cash alternatives that I need to level out on this house:

1. Model-specific apps: Your favourite grocery retailer, restaurant chain or drug retailer seemingly has its personal app. Not solely are these good for monitoring loyalty rewards, which may be value cash, however in addition they could offer you low cost alternatives on objects you had been planning to purchase anyway.
2. Money again apps: Earlier than you make your subsequent buy, chances are you’ll need to obtain among the in style money again apps and browser extensions like Rakuten, Honey and Ibotta. These providers are free and might give you 5-10% again on choose purchases.

These manufacturers are providing you reductions or money again alternatives in alternate for data in your habits as a client.

So, whereas that’s nonetheless technically free cash, you’ll need to be sure you’re snug with the concession of privateness within the person agreements.

Do you might have some suggestions at no cost cash in 2024? We’d love to listen to your methods within the Clark.com community.