There’s something to be said about thinking and planning ahead. The big question is “how far ahead is far enough ahead?” or on the other hand, “how far ahead is too far ahead?” Should you plan for your child’s college or even retirement before the kid is even born? Either way, there’s no right answer.
I don’t have any kids right now, but I have been thinking about and attempting to plan for their college and retirement already. Maybe it’s too early, maybe not. Either way, I think cash and save.
I’ve opened 529 plans (accounts that have tax-advantages for higher education expenses) and all of that good stuff. On top of 529 plans, there are other things that can help along the way, especially if you get started early and adjust your habits accordingly.
Frugal / Thrifty Living
Many people tend to overlook frugal living. They thoroughly enjoy living for today without much regard for the future. Usually, your habits will determine the outcomes of where you’ll end up at in the future. Thus, sometimes it’s best to err on the side of caution, especially since nobody knows what the future holds.
There are so many ways to live frugally and still live quite well. Things such as “coupon cutting” or shopping at thrift stores or garage sales can yield huge savings. I’d say it’s just a matter of adjusting one’s habits. Once your habits are in place, then you can put that extra money to work for your kids in their college fund (or for you in a retirement account) .
Being thrifty can definitely work in your favor, especially over long periods of time! Plan for cash and save.
Spend Cash And Save
Sometimes when it comes to large purchases, some companies will give you a rebate if you pay with all cash. Basically, spend cash and save.
When making a large purchase, go ahead and ask if it’s possible to get a rebate by paying the bill all in cash. It may work or may not work. The only way to find out is to ask.
If you have the cash, it’s probably not that big of a deal and you can actually do this. If you don’t have the cash, obviously you won’t be able to do this.
Thinking Ahead
There’s a post about a strategy for saving quite a bit of money by thinking ahead just a wee bit. If you’re able to think ahead on a small scale, you can save a bit of money.
If you’re able to think ahead on a large scale, you can save and earn a lot of money (life-changing money).
One example of thinking ahead is simply signing up for various programs that add up over time. The sooner you sign-up, the sooner you start earning, which means the more you’ll earn.
Upromise
One service that I use that is completely free and I have earned hundreds of dollars from is Upromise. Once you sign-up, go ahead and add your credit cards, etc. to your account. From there, Upromise will keep track of the purchases you made. It’s basically “set it and forget it.”
If your purchases fit the particular criteria to get cash back, Upromise will put that cashback bonus into your account. You can earn college savings through eligible everyday spending. The percentages differ based on the purchase, but 5% here, 3% there, 10% there start to add up over time.
Basically, you’re getting free money just for signing up for this service.
If you sign-up for this service when your child is born, that will be about 18 years of earnings that you can put toward college. If you sign-up when your child is a bit older, it still won’t hurt, since you’ll still get the earnings in your account. Every little bit helps.
I can’t really think of any reason not to sign-up for this service and in the worst-case scenario, you can always request your earnings in the form of a check.
There are also some other benefits of Upromise:
- You can use Upromise earnings to contribute to a 529 plan, sweep into Upromise GoalSaver savings account, pay down eligible student loans, or simply request a check.
- Learn about more ways to finance college.
- Receive special discounts, bonuses, and money-saving offers.
As stated above, you can even put the earnings into a 529 plan. If you do this, it could potentially be like getting free money on top of getting free money. It would basically be a multiplier effect.
All In All
The above strategies and service can help you save and earn money. These types of strategies along with Upromise can help over short periods of time, but the sooner you start utilizing them, the more you’ll gain. The gains can add up over time and lighten the load on college or other expenses in the future.
Do you use Upromise or any of these strategies already? Let us know in the comments below.
