How to Always Meet the Debit Transaction Requirement On Your Bank / Credit Union Account

There is a way to ALWAYS qualify for the dividend on your bank / credit union account.  Typically there is a minimum of 5-12 debit transactions each month in order to qualify for a high interest dividend rate.  When it gets towards the end of the month and you know you don’t have enough transactions to qualify, you can use the following strategies.  One way is to donate $1 to a charity online 10 times each month.  While this does work, must of us are unwilling to spare that many funds every month, but we can adapt that concept to benefit ourselves.

This will require you create a blog page (I recommend www.Blogger.com), and a PayPal account at www.paypal.com.  Both accounts are free and take minimal time to setup.  Once you have established these accounts, create a "Donate" button through PayPal and copy and paste the code into your blog (You can see a sample at the top right corner of this blog).  It’s that simple. 

Every month “donate” to your page and meet the transaction requirement for your account.  The only down side is that it will cost $0.33 per dollar donated.  For example, if each month you needed to hit a minimum of 10 transactions, you would “donate” 10 times @ $1 per donation costing $3.33 overall.  Note you will need to use a different email address for the donation than the one you provided to open the PayPal account.  After the 10 transactions have cleared, you can transfer the money from your PayPal account right back into your checking account.

The money you obtain from using a credit card with a good cash back rewards program instead of a debit card will offset the $3.33 cost.  It also allows the money that is technically already spent to accrue interest the entire month in your high interest checking account instead of being paid out immediately through a debit card transaction.  Pay off the credit card at the end of the month to avoid paying any interest.
 
This new idea concept is going to save me $4.35 per month on my Chase account that has a maintenance fee of $6 per month (Due to inactivity).  I keep the account open because I received a $125 to open it, and it doubles the rewards interest I get on my Chase credit card.

Fix the Leaks in Your Budget – Make your Finances Efficient

One main misconception about saving money is that “I don’t make enough to put any extra aside, all of my money goes towards bills.”  While this may be somewhat true, in general we all have that extra money that should be used towards savings that is trickling out of your account in the form of several small purchases.

Many times we don’t even realize how much we are spending on the subtle things like ATM fees or a night at the bar.  One tool to help you keep track is a website called www.Mint.com. 

Mint links to all of your accounts; checking, credit cards, loans, etc. to give you real-time updates of how much money you have available in your account.  It will also give you a budget, track your expenses, and provide you with warnings when you are close to over-drafting an account.  When you use a credit card or debit card it is easy to forget how much money you are actually spending.  This will help make you aware of the issue before it becomes a problem.  Preventing bad spending will save you a lot of money in the long run.

If you notice you have a bank account charging you a maintenance or ATM fee, get rid of it.  The bottom line is, if your bank charges these fees they are not competitive and it is time to move to a business that does right by its customers.  Credit Unions generally pay a better interest rate and tend to have fewer fees.

Recurring charges for magazines, tanning, and unused gym memberships are other “bills” to get rid of.  Eliminating these automatic purchases will provide you with some excess cash each month.

Once you eliminate these bills and charges, allocate this money towards savings.  Do not fall into the trap of making another big purchase, or living more luxuriously.  The lavish lifestyle will come in time, but first we need to build a good foundation with savings.

Educate Yourself – 3 Must Read Business Book

You can never learn too many tips to make you financially efficient.  Here are 3 books that are a great way to improve your financial intelligence.

Rich Dad, Poor Dad
by Robert Kiyosaki

This book discusses how the author learned about money while growing up.  His birth father also known as “Poor Dad” was a middle class citizen who worked for the school district in a secure government position.  His “Rich Dad” was the father of his best friend who was an entrepreneur.  The book discusses the different views held by those that are wealthy and those that live from paycheck to paycheck.

This is a medium length book that will create a good foundation for a new way of financial thinking in regards to using money and obtaining a financial education. 

The Richest Man in Babylon
by George S. Clason

This book takes place in ancient Babylon however its principles are still valid today.  It tells the tale of a chariot maker who works hard, but still is only scraping by.  He grows tired of living in poverty while watching those around him grow wealthy.  He lives in a city that has the greatest amount of wealth in the world.  The book gives financial lessons in the form of a story as he learns the foundations and basic rules of investing and saving money.

This is a short book and a very easy read.

Atlas Shrugged
by Ayn Rand

This story takes place during the time of rail barons’ in America.  America is in a deep state of depression (similar to current economic times) and many citizens have lost hope.  The economy now relies on a few key players in industries that are essential to everyone; transportation, oil, and steel.

This book has changed the way many people view the world.  People either love it or hate it.  Most business-minded people will agree with the concepts however it is strongly biased towards self-reliance and entrepreneurship.

A movie was recently made about this book, however due to a lack of proper financial backing; it is disappointing and doesn’t even come close to doing the book justice.

This is a lengthy read.

Good luck with your reading, and may it help you with your financial future!