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4 Life Hacks That Cost More Than You Think

By U.S. News & World Report

“Life hacks” is one of those trendy phrases that describes strategies people use to be more efficient. But you know that.

You probably also are well aware that you’ll often see online articles with headlines like, “Life Hacks to Save You Money.” Many life hack ideas are smart, but often the breezy advice attached to the life hack forgets to mention there may be a hidden cost, too. If you hear any of these life hacks mentioned, don’t discount them, but do your homework to make sure they’re actually saving you money.

Life hack: Use coupons at stores to save money, and you’re really missing out if you don’t look for coupon codes when you’re ordering food online.

Why this life hack can cost more than you would think: Couponing only works if you were going to buy the item, anyway. You’re probably also better off if you don’t let couponing become a way of life.

“Years ago, I attempted couponing, when it was all the rage,” says Kristie Garduno, a business owner in Newport Beach, California. “I took the time to learn all the tricks and lingo and even joined a group, so we could swap coupons. I started spending more and more time trying to save money, even skipping church so I could be first in line to get a good deal on an item — that I probably wouldn’t use.”

[See: 12 Shopping Tricks to Keep You Under Budget.]

Garduno says she went way overboard, scouring the internet, looking for deals, sometimes ignoring her business, a retail website called GivingSoaps.com. She even remembers getting in arguments with cashiers over 25-cent coupons.

“It became almost an addiction, and I’m grateful that I stepped away when I did,” Garduno says. “I have no idea how much money I wasted in the name of saving.”

Life hack: Do a credit card balance transfer to save you money on interest. You apply for a credit card with a low introductory annual percentage rate (APR), preferably zero and one that will remain low for 12 to 18 months.

Why this life hack can cost more than you would think: Yes, transferring money from a credit card with a high interest rate to a lower interest rate can be a good idea. But some credit cards have a high annual fee, negating the savings you’re going to get. Other cards have a balance transfer fee, and while it may only be 3 percent, that adds up if you’re, say, transferring $5,000 from one card to another. In fact, it adds up to $150.

And you’ll really blow it if you miss a payment, which happened to J.R. Duren, a copywriter in Jacksonville, Florida.

In 2009, Duren transferred about $3,300 from one credit card to another. All was well until he was late with a payment and saw his interest rate jump 7 percent. It wasn’t a financial disaster since he paid off the card by the end of the year, but he undid some of the work he was trying to do in saving money.

“I’m guessing the mistake cost me at least $130,” Duren says.

And keep in mind it’s a terrible life hack if you transfer money from the high interest credit card to the lower interest rate one, and then later you end up maxing both of them out and carrying revolving debt.

[See: 12 Ways to Be a More Mindful Spender.]

Life hack: Buy in bulk. You know how it works. Buy a pack of 16 paper towel rolls at a warehouse discount store, and in the long run, it’s cheaper than buying a pack of four paper towel rolls at a supermarket. You spend more upfront, but over time you save money.

Why this life hack can cost more than you would think: Buying in bulk can backfire, especially if purchasing perishable items. Tyler Riddell, who works in marketing and lives in Temecula, California, says, “Every time I go to Costco, I think I’m saving tons of money by buying in bulk when in reality, only half of the items I buy get eaten while the rest goes bad and ends up being thrown out.”

Life hack: If you’re looking for a new bank, sign up with one that offers a cash bonus.

Why this life hack can cost more than you would think: You really want to be careful when you choose any monthly service, whether it’s a bank or a telephone plan, that offers you money to sign up. The deal being offered may be good, but the company is going to get their money back somehow.

Tyler McIntyre, a New York City-based business owner in the banking industry, says he once signed up for a bank’s checking account offering a $200 sign-up bonus. Before long, however, he realized he was being charged a $12 monthly fee for owning the account. In less than two years, McIntyre’s signing bonus would go right back to the bank, and he would still be paying $12 a month.

[See: 12 Millennial-Inspired Ways to Spend Less.]

That didn’t sit well with McIntyre, who knew he could get the same services for free from a community bank.

“I closed the account, and they took back the $200,” McIntyre says.

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4 Life Hacks That Cost More Than You Think originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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