The average American owes more than $16,000 in credit card debt according to a Nerd Wallet study. The same study found that though American incomes have grown since the early 2000s, the average cost of living has grown far faster.
How then can the average person save money and start the build wealth?
Cisco expects that more and more people will use the internet in the coming years, and that those who already use the internet will use it more frequently. Therefore, thanks to internet technologies, the answer to either saving money or building wealth is readily found online. This article will help readers to discover hidden ways to save a few dollars, or to start making money through internet-based tools.
1. Protect your credit
There are three major credit bureaus operating in the United States. Each one provides prospective employers and lenders with financial information that helps organizations decide if you are responsible enough to receive a job offer or a loan.
Recently one of the major bureaus, Equifax was hacked. The hack exposed social security numbers and other highly sensitive information of more than 140 million Americans. While this recent hack may be the largest breach of this kind, credit bureaus have been hacked multiple times before, and they most likely will be hacked again.
In order to protect yourself financially, be sure to carefully monitor your credit score using a free tool like Credit Karma, or Credit Wise. It is also a good idea to require an in-depth annual credit report from each credit bureau through the Federal Trade Commission. If you see anything wrong with your credit score, such as inaccurate personal information, or an indication that a loan was taken out in your name without your consent, be sure to dispute credit reports as soon as possible.
2. Sell used items
It has never been easier to make money on items you no longer use than it is today. Thanks to websites like eBay and SidelineSwap, you can effortlessly resell anything from a used car to ice hockey skates in a matter of minutes.
Thanks to second hand ecommerce platforms, it is also a great time for shoppers to find well-used items at outstanding prices. From certified refurbished electronics to used textbooks, shoppers can put the money they earn from selling wanted items to good use by purchasing used items that are in great condition.
3. Choose to buy from companies with great customer service
At times, it might seem like purchasing the best-priced item is always the right strategy when shopping online. But consumers should also consider the quality of customer service when purchasing online. Should the item not workout, it can be far costlier to deal with a company that has poor customer service, than interacting with a business that always puts the customer first.
Take Zappos as an example of a company that provides great service to online shoppers. Zappos has a “no questions asked” 365-day return policy. Meaning that a shopper has up to one year to return an item for any reason. In the long run, online shoppers will save time and money interacting with a company like Zappos than with an ecommerce retailer with a less friendly attitude toward customer service.
4. Use an online coupon or discount tool
There are a number of fantastic online coupon and discounting tools available to ecommerce shoppers today. Internet browser extensions like Honey and coupon database websites like Hip2Save and SouthernSavers make it easy for online shoppers to surface relevant coupons valid across many different ecommerce websites.
5. Build wealth with a low-fee app
In addition to saving money through online tools, a number of different online platforms can help you to build wealth with relatively little effort. Take platforms like Wealthfront and Betterment, these platforms use machine learning to suggest appropriate ETF funds to invest in. The funds have very low management fees because they are exchange traded funds (ETFs), so there is no need for you to pay a money manager to monitor your money, instead the funds are traded electronically based on advanced algorithms.
For those who prefer taking a more active role in investing, the no-fee high-volume trading platform Robinhood is a great option. Whereas traditional brokerage accounts charge up to $9.99 per trade, Robinhood doesn’t charge users a dime to place trades. Instead the platform makes money on the interest accrued by your cash and securities associated with the platform.
Conclusion
It is never too early to begin acting in a financially responsible way. For all you know, you could slip and fall resulting in exorbitant hospital bills. Fortunately, there are a few unconventional ways you can save money and build wealth online. Be sure to protect yourself by monitoring your credit, and by investing your money for a rainy day.
You can also save money by using online coupon tools, by selling used items online, and by purchasing items from businesses that offer exceptional customer service.
