Did you know that your wallet also has secrets? No, it doesn’t have secret pockets (although that would be great, in all honesty), but you can look into it if you want to find effective hacks to increase your finances. We’ve moved far beyond the days of just carrying cash and coins. Your modern wallet, whether it’s leather or digital, holds the keys to a smarter way of managing money. Unlocking these secrets isn’t about complex financial wizardry; it’s about understanding the powerful, yet often overlooked, tools you already possess.
Today, we will discuss all the untapped benefits of credit and debit cards that might save you hundreds, if not thousands, of dollars a year. It’s about making your money work harder for you with every single transaction. I bet you didn’t know about these hacks, and trust me, as soon as you lay eyes on them, you will be all giddy and excited to try them out! These aren’t just tips; they’re a new mindset for approaching your daily spending. You’ll start to see opportunities for savings everywhere you look. Now, where were we? Oh, yes, to the money hacks!
Use a savings app
You can build a ton of savings even if you spend the money by linking your credit and debit cards to an app such as Acorns and Digit. Acorns has this thing where it automatically rounds up your purchases to the closest dollar and then adds what’s left straight to your savings. For example, when you buy a coffee for $4.35, Acorns rounds the purchase up to $5.00 and automatically invests the remaining $0.65 for you. This “micro-investing” approach makes saving feel painless because you hardly notice the small amounts leaving your account, but they accumulate significantly over time.
Digit also analyzes your spending and income, and automatically sets aside a bit of that extra cash for savings. Its algorithm is designed to identify money you won’t miss, making it a true “set it and forget it” tool for building your nest egg. You can see it like this: it’s a tip jar by the register or a spare-change dish, but all the money goes straight to your future. It’s like tipping your future self for being financially responsible today. Many of these apps are also FDIC-insured up to the legal limit, giving you peace of mind that your growing savings are well-protected.
Maximize your card benefits
Credit cards often come with plenty of valuable, although not so easy-to-overlook benefits. In fact, according to a 2019 J.D. Power study, only 36% of cardholders know everything it is to know about supplementary benefits on their own cards. Most people receive their card in the mail, glance at the main features like the rewards rate and annual fee, and then toss the thick benefits guide aside. This is where hundreds of dollars in value gets lost.
“As a general rule, consumers are probably not so much in the know when it comes to all the features of their credit cards,” as John Cabell, director of wealth and lending management at J.D. Power and a lead researcher on the study explained. Money-saving card benefits might be miscommunicated or even communicated proactively by the issuers. They are hidden in the fine print, but taking 30 minutes to find and read your card’s benefit guide online can be one of the most profitable half-hours you spend all year. Some of these benefits include:
- travel perks. Cabell explained that airline cards that also come with free checked bags and airport lounge access, but also cards that charge zero foreign transaction fees are in this category. There are many cards that reimburse the application fee for TSA precheck and Global Entry. But it goes deeper: look for benefits like primary rental car insurance (which can save you $15-$25 per day at the rental counter), trip delay reimbursement, and lost luggage coverage.
- cell phone insurance. Here are some examples: Wells Fargo, U.S. Bank, Mastercard, and many other credit card companies have cell phone coverage with some cards, especially when you pay your bill with the card. This benefit can cover you against theft or damage, usually with a low deductible (like $25 or $50), potentially saving you from expensive repair bills or the high monthly insurance fees charged by your carrier.
- automatic credits. some cards will instantly reimburse you for a bunch of things like travel expenses, rideshares, meal delivery, and even purchases at top merchants, up to a monthly or even with an annual limit. These are designed to offset a card’s annual fee. For example, a card might offer a $10 monthly credit for Uber or a $20 credit for a streaming service, making the card pay for itself if you use those services anyway.
- Extended Warranty Protection. Many credit cards will automatically extend the manufacturer’s warranty on eligible items you purchase with the card, typically by an additional year. If a new laptop or television breaks down just after the original warranty expires, this perk can save you from a costly repair or replacement.
- Purchase Protection. This is another fantastic benefit that covers your new purchases against damage or theft for a specific period, usually 90 to 120 days after you buy them. If you drop your brand-new camera or someone steals a package from your porch, your credit card might refund you the full purchase price.
You can read your credit card’s benefits guide to check and learn what’s included. You might be pleasantly surprised by how much you can actually save. A checked-bag benefit, for instance, might save you $120 on a single round-trip with a companion. The Global Entry credit alone is a $100 value. It’s real money back in your pocket for perks you might not have even known you had.
Getting cell phone coverage from your card can also help you save $9 and even #15 every month on your wireless bill, especially if you were paying before through your carrier. Over a year, that’s up to $180 in savings, which more than justifies taking the time to understand your card’s features. Remember to check the specific claim process for each benefit, as you may need to register the product or file paperwork, but the payoff is well worth the minimal effort.
Use your rewards cards for everything
Some people have this habit of using credit cards only for “big” and “important” purchases as they pay for smaller or even everyday purchases with either cash or debit. This often comes from an old-fashioned, but understandable, fear of racking up debt on small, “frivolous” items. However, every single purchase that isn’t on a rewards card is nothing but money left on the table, provided you manage your card responsibly.
After all, if you pay your balance in full every single month, it’s a bit silly not to have some sort of rewards card, especially since you are getting either something or nothing at all. Think of it as a rebate on your entire life. Rewards cards basically give you a great discount on all your spending. Whether your card earns cash back, travel points, or flexible rewards, each swipe is putting a little something back into your pocket. The key is to treat it like a debit card—never charge more than you can pay off immediately.
Depending on the type of card you own, how its rewards are made, and where you can use it, you will generally earn rewards that are equal to 1% to 5% of the purchase price. Even if you earn a paltry 1% on everything, a modest $100 in spending a week will automatically turn into over $50 in rewards in a year. But let’s get more ambitious. If you use a card that earns 3% on your $800 monthly grocery bill, that’s $288 back per year. Add 5% back on gas and 2% on everything else, and you could easily be looking at $500 to $1,000 in annual rewards without changing your spending habits one bit.
Stack savings with a cash-back portal
Websites like Rakuten (old Ebates) and BeFrugal will pay you a certain amount back on every single qualified purchase from participating retailers. These portals work by earning a commission from stores for sending shoppers their way, and they share a portion of that commission with you. According to a Rakuten spokesperson, for instance, the average member earns 4% to 6% in cash back on purchases made through the site, which can easily add up to hundreds of dollars a year. It’s essentially free money for a purchase you were already planning to make.
The secret is to get into the habit of checking these sites before you shop and use them only for purchases you are about to make either way. The easiest method is to install the browser extension for your favorite portal. It will automatically pop up and notify you if cash back is available on the site you’re visiting, so you never miss out. I am a big online shopper, and as soon as I learned about Ebates a couple of years ago, I thought “Why would anyone not use such a program?” It takes one extra click and the rewards are real.
You’re basically ordering something from the store anyway, so why not get that cash back, if possible? You will end up saving over $200 over the course of two years. You can use a rewards credit card on a cash-back site, and you will automatically multiply your savings with virtually no effort. This is called “stacking.” Imagine buying a $500 laptop: you click through Rakuten for 5% cash back ($25), and pay with a credit card that offers 2% cash back ($10) and an extended warranty. You’ve just saved $35 and gained valuable protection in a matter of seconds.
Know your price protections
Now, here’s another tip that will convince you to keep your receipts: you might be able to get that money back if something you decided to buy goes on sale for less somewhere else. For example, if your credit card has some sort of price protection, you can easily claim a refund of the difference, as long as you submit proof of the lower price on an eligible item within a specific time period right after your purchase. This benefit is becoming less common, but for cards that still have it, it’s incredibly powerful. You typically need your original receipt and an advertisement showing the lower price, and claims must often be filed within 60 to 90 days. Some services, like Capital One Shopping’s price protection tool, can even scan your email for receipts and file claims for you automatically.
If you don’t have price protection on your card, there are many huge retailers that will gladly offer their own version if some competitors sell the same item for less. This is known as price matching. Some of the stores we already know about include Bed Bath & Beyond, Best Buy, and Home Depot. Many others, like Target and Walmart, also have robust price-matching policies. The key is to be prepared. Before making a significant purchase, do a quick search on your phone for the item. If you find it cheaper elsewhere, just show the ad to the cashier or customer service desk. They will typically adjust the price right at the register, giving you instant savings with minimal hassle.
Plus: gift cards at a discount
Have you heard of websites such as CardSwap.ca? They basically allow you to buy other people’s unwanted gift cards, and they’re honestly awesome. This is part of a thriving “secondary gift card market,” with U.S.-based sites like Raise and Gift Card Granny being extremely popular. You can buy physical or digital gift cards for hundreds of retailers at a discount, sometimes up to 15% or more. Even if you don’t get a discount on the card purchase, you can easily collect SwapPoints that can be redeemed for another card.
If you have a gift card you don’t plan to use, you can simply sell it for a percentage of its face value. Other options for some of you who want to be more savvy also include Costco, because there, members can take advantage of discounted gift card bundles, like two $50 gift cards sold for only $79.99, but also Rakuten, where you can buy gift cards. Rakuten’s gift card shop is a fantastic way to stack rewards, as you can often earn cash back for purchasing the gift card itself. The ultimate strategy is to buy a discounted gift card for a store you frequent for everyday needs, like groceries or gas, effectively locking in a discount on all your future purchases there.
Audit your subscriptions
We’d advise you to make a list of all the subscriptions you currently have and cancel the ones you haven’t used in a while. This is a crucial financial health check-up in our modern economy. “Subscription creep” is a real phenomenon where small monthly charges for streaming services, apps, subscription boxes, and gym memberships add up to a surprisingly large sum. To get a handle on it, scan your last few credit card and bank statements for recurring charges. You can also use a service like Trim or Rocket Money, which connects to your accounts and automatically identifies all your subscriptions for you. For example, if you can’t live without your favorite magazine, wait until renewal time comes. Oftentimes, publishers will send out discounted offers that will keep you on their mailing list. In many cases, simply calling to cancel will trigger a special retention offer from the company, as they’d rather give you a discount than lose you completely.
Use the local library
Well, let’s be honest: not everyone’s lucky enough to have access to a local library, but we wish we would because it’s an extremely valuable resource. For example, if you have a family full of avid readers, that will automatically save you hundreds of dollars over the years. But the modern library offers so much more than physical books. With just your library card, you can likely access vast digital collections of e-books and audiobooks through apps like Libby and Hoopla, saving you a fortune compared to services like Audible or Kindle purchases. Also, keep an eye out for used library book sales, because you might be able to stock up your favorite books for a fraction of the cost of new ones.
Beyond books, your library is a community savings hub. Many offer free streaming services for movies and documentaries, like Kanopy, which has a fantastic collection of indie films and classics. You can get free access to online learning platforms like LinkedIn Learning to boost your career skills. Need to use a computer or print a document? The library has you covered. Some even offer free passes to local museums and cultural attractions, or even have a “Library of Things” where you can borrow anything from a power drill to a telescope. Before you pay for any digital service or tool, check if your local library offers it for free first.
If you found this article useful, we also recommend checking: 12 Easy Ways To Receive Gift Cards for Free
