Everyone loves a little extra cash in their pocket, and tax refunds certainly help during periods of financial stress.
However, there are other ways to ease the financial pressures of the year than waiting around for a return from the government. In fact, there are several ways Americans can save money each day.
Making Use of Credit Card Rewards
Almost all credit card companies in the U.S. offer programs that issue rewards in the form of cashback and other financial incentives. The same can be said about debit cards and, to some degree, “buy now, pay later” loans.
According to NBC News, the six largest credit card companies in America paid out close to $68 billion in rewards during 2022.
Rewards Can Be Used Daily
Tax refunds can help ease financial burdens for a short period; however, they only come once per year.
On the other hand, the rewards associated with credit and debit cards can give Americans budget relief throughout the entirety of the year.
Everyone Wants to Save Money
“With high prices and high interest rates, everyone’s looking to save money,” said senior industry analyst at Bankrate, Ted Rossman (NBC News). “The main message is to get money back for the things that you would have bought anyway.”
So instead of waiting for the a tax refund to arrive in the bank, try out these ways to reduce financial burdens throughout the year.
Starting Small
It’s best to start small when thinking of ways to reduce financial stress. One way is through the use of payment apps such as Bilt Rewards.
If an American citizen opts to pay their monthly rent through the Bilt Rewards app, rewards in the form of discounts on fitness classes, flights, and even rent itself are offered. The app also claims that two years of payments on time can, on average, increase a customer’s credit score by 50 points.
Automatic Payments Come with Rewards
Another way to find simple rewards stems from automating payments to various utility companies.
According to NBC News, Verizon offers a $10 monthly discount to those who set up automatic payments. While the amount is considered minuscule, doing this with several bills can begin to make a difference in monthly expenditures.
Make Use of Cashback Rewards
Credit card interest for most new customers can be as high as 24% in some cases, per Lending Tree, which can increase the risk of prolonged debt.
However, the cards do come with a variety of perks. Over two-thirds of all credit card holders in the U.S. are eligible for cashback rewards, which is an effective and safe rewards program to help anyone save money.
Cash Back with No Annual Fee
According to Rossman, numerous cashback cards are available and come with zero yearly fees. One of his favorites is the Wells Fargo Active Cash Card, which gives holders 2% cash back on all purchases.
The card also comes with a 0% interest rate for the first 15 months. While it may only help Americans save a few dollars at a time, they certainly provide lower-income households with relief during difficult financial periods, says Rossman.
‘Buy Now Pay Later’
Traditionally seen as a risky move, “buy now, pay later” programs typically leave a consumer in prolonged debt. However, they can help those with financial struggles make their cash last a little longer.
Several of the largest “buy now, pay later” companies in the U.S. have begun offering their own rewards to customers who make their payments on time.
Afterpay Offers Selection of Gifts to Customers
Afterpay has begun to offer rewards to its on-time customers after striking a deal with Nift, an online gift card company.
Once a customer has made their second payment on time, they are permitted to choose a gift. These range from discounts at restaurants to money off at sports stores, all of which can help those struggling financially.
Don’t Wait Around for the Tax Refund
So, even though a tax refund can help reduce the financial burdens of the year, stop waiting around and use other methods to ensure you have extra cash throughout the entire year.
Every little bit helps when it comes to saving money, and by using cashback and rewards programs with online payment apps, we can all save hundreds of dollars per month.
Fast-Tracking Tax Returns
If you’re currently making use of the various cashback options and rewards on offer and still want to fast-track a tax return, according to USA Today, there are a few ways to make this happen.
Ensuring you submit the correct forms on time, filing electronically, applying for a direct deposit, and keeping track online can ensure the tax refund arrives in your bank account on time.
