Tips on Saving Money through Banking
9th Dec 2016
To grow our hard-earned money, we need to become smarter in our spending and saving. There are many ways to save your money. A good option is to invest it. Ask your bank about the different opportunities they offer. Here are some tips on saving money.
Let us look at a few tips on saving money that can help you, through banking.
Be aware of Capital Gains Tax
Paying capital gains tax (CGT) is mandatory when you switch an invested amount of money to another account or request it to be paid out.
You cannot evade CGT, but be aware that there’s an amount that will need to paid from your investment.
Inquire how much it will involve, before moving it into another fund or receiving a payout. Only transfer it at a time you will be gaining the most.
Keep your money moving
If you leave your money dormant in your account, you gain nothing. The bank, however, can make a lot of interest on your money, if it is inactive. You will not lose your money, but it should rather work for you, by letting you receive the best interest than the bank.
Two ideas are:
- Making use of a bond that is flexible, in which money can be moved around for short periods of time; and
- Operating credit cards in the most efficient way.
Tips on saving money, Benefit from your credit card
Credit cards can be a great advantage when used wisely and responsibly. Do not go overboard in spending, as it is debt that charges interest. Do not spend what you cannot pay back. Paying back less than the full amount, at the end of the month, will add extra costs to the initial amount you spend. A constant well-paid credit card balance helps you develop a good relationship with your financial provider.
None-taxable accounts that save
If you want to open a savings account (long-term) for your spouse or children, a tax-exempt one will be a greater benefit for investing. Herein you can finance an amount that can gradually grow. You can add a specified amount, yearly, that will be free of tax charges, which helps you save and gain more.
Put your money into your bond
A lot of people believe that it is best to pay off your bond as soon as possible. The focus is so much on the bond that being able to pay off other debt, faster, evades them. The extra charges on a bond are usually lower than on any other debt. This is why it is better to pay off the other debt first because it will help you save on the high-interest rates charged.
Use your credit account to make payments
Banks have credit card benefit packages, with each their requirements. It includes receiving a percentage of what you spend back. Each differs in the percentage you earn back, but the fact remains that you receive from making payments from your credit account.
All info was correct at time of publishing