How to turn your debit card into a savings tool
Cash-back rewards and easy expense tracking help you earn and save, not just spend.
Sure, the main goal of your debit card is to have easy access to your money so you can spend it, but did you know that some debit cards can help you save too?
We’re all familiar with the perks and cash-back offerings that come with a credit card. We also know that these credit cards, unlike debit cards, come with a hefty cost in the form of interest and sometimes even annual fees. What is less known is that some debit cards can offer you some of the same perks as a credit card but without the cost (and yes, Lili is one of them.) Here are some of the ways that the right debit card can actually help you manage and even make money.
Free Cash-Back Rewards
The fact is, if you’re not getting cash back on your debit card purchases, you’re missing out. Getting cash back on every day purchases costs you nothing and requires no extra work on your part – the program is built in to your card (no need to enroll.) All you have to do, is what you would do anyway: spend money. It’s really a no-brainer.
For example, with the Lili cash-back rewards program, you can get up to 12% back on purchases you already make for your business. Think shipping expenses at Stamps.com, gas or auto products at places like Chevron or AutoZone and a whole host of other things you need for work including hotels, electronics, food and printing services. These cash discounts are automatically delivered as statement credits on your account, literally money that goes right back into your pocket. That won’t happen if you pay with cash or check.
Only Spend What You Have
Another advantage of a debit card, and an often underrated one, is that you can only spend what you have. Yes, credit cards are great as they can provide you with some cash flow in a slow month or more flexibility on a big expense. But that flexibility can quickly turn into a pitfall that will eventually cost you money you didn’t want to spend. With a debit card, your account sets your limit, meaning you don’t have to set that limit for yourself. And we can all agree, sometimes, it’s easier if someone plays the responsible part for you.
Less Taxes = More Money in Your Pocket
Another advantage to using your debit card instead of checks or cash is that you can more easily track your work expenses so that you can claim the maximum amount of deductions at tax time, which is one of the best ways to reduce what you pay.
As an independent worker, you’re allowed to claim a lot more deductions than a regular worker, but keep track of those deductible expenses can be really tedious. On this one too, the right debit card (and yes, Lili is one of them!) can help. With the Lili app you can easily track and mark your purchases in real-time, not a month or a year later when you’ll have completely forgotten what that $13.02 charge at Frogo Inc. was for! Trust us, it’s a lot easier to track these things as you go than spending days sifting through a pile of receipts in March. Best of all, you’ll also save on your aspirin bill since tax time will be so much less of a headache.