This Week’s Money Map:

• 💰 Make money on your tax payment

• 🤑 The 1% rule — Save tiny, win big with compound interest

• 🏠 Home insurance skyrockets in 2025 — Slash your bill while staying protected

• 📈 Ever heard of the rule of 72? It’s a fun money math trick — here’s what it means

Got a burning question about money that you'd like to see answered in the Smart Cents newsletter? Drop it here and your topic may be featured in a future newsletter.

💰 Make money on your tax payment

Did you even know you can pay your taxes with a credit card? Well, you can! I didn’t know the benefits of doing this until recently, but now that I do, I’m TOTALLY doing this (and you should, too).

How can this benefit you? 
Imagine turning your dreaded tax payment into hundreds of dollars, or even a thousand dollars in cash or travel rewards. It’s simple — you just have to pay your taxes with a credit card. And the IRS has negotiated with the credit card companies to lower the transaction fee to 1.75%.

Even with the 1.75% fee, several credit card options can net you much more than the fee. Here are a few we recommend:

U.S. Bank Smartly Card
We wrote about this card a few weeks back. With at least $100,000 in your account, you can get 4% back on all purchases. Using this card to pay your taxes lets you earn 2.25% of the payment in cash back. So if you have the cash to put in an account, this card makes a ton of sense.

Capital One Venture Rewards
If you open a new card and spend $4,000 on taxes, you’ll pay a $70 fee, but get a $250 travel credit and 75,000 points in return, making this deal worth about $1,000 in travel rewards!

Well Fargo Active Cash
The Wells Fargo Active Cash® Card offers $200 cash back after spending just $500 in three months. If you owe $500 in taxes, you’ll pay a fee of just $8 and get $200 in cash rewards and 2% back on the purchase.

I listed three options above, but several other card bonuses can net you a significant amount of free travel. If you’re expecting a tax bill, now is the time to apply for the card that can earn you cash back or rewards. Of course, it goes without saying that you need to pay this bill off in full — otherwise interest payments will eat into your returns.

🤑 The 1% rule: Save tiny, win big with compound interest

Did you know that saving just 1% more of your income could transform your financial future? It’s not a get-rich-quick scheme — it’s the quiet power of compound interest working its magic. Let’s dig into how it works.

Compound interest — your money’s secret superpower
Imagine you earn $100,000 a year. Boosting your savings by 1% means tucking away an extra $1000 throughout the year. Invest that $1000 at a 10% annual return, and in 30 years, that’s over $17,000.

Now, if you invest that extra $1000 every year and calculate the compound interest, in the same timeframe it balloons to more than $181,000! That’s not a typo — compound interest turns small steps into giant leaps by letting your money earn money on top of money. Crazy, right?

Think of compound interest as a snowball rolling downhill. It starts small, but as it gathers more snow (or interest), it grows faster and bigger. The trick? Start early. Time is the fuel that makes this engine roar.

Clever ways to boost your 1%
Here’s how to make it work smarter:

• Set up automatic transfers to a savings account right after payday. You won’t miss it if it’s gone before you see it.

• Put your money in a high-yield savings account — think 4% rates from Ally Bank — or a low-cost S&P 500 index fund for 9–10% average returns.

• Open a separate “1% Fund” account. Label it with your goal (like “Dream Home”) to keep you motivated.

• Use bank round-ups on debit purchases. Spare change adds up fast — some banks even match it with a 1% bonus now.

Imagine your older self, grateful you skipped impulse buys for a solid nest egg. Every $500 saved now is a gift to them.

🏠 Home insurance skyrockets in 2025: Slash your bill while staying protected

Your latest home insurance bill might look like a mistake, but it’s not — it’s the new reality hitting homeowners hard.

Insurance premiums spiked 10.4% between 2023 and 2024. That’s on top of a 12.7% jump the year before, meaning rates have climbed over 23% in just two years. Why? Wildfires scorching the West and storms battering the rest of the U.S. have insurers scrambling to cover rising claims. By January 2025, this pushes the average yearly cost to around $2,700, about $225 a month. Yikes!

Before you despair, stick with me — I’ve got a solid plan to trim that bill without leaving your home vulnerable.

Bump up your deductible
Crank your deductible from $500 to $1,000. It’s like telling your insurer, “I’ve got this. Unless the roof caves in, don’t sweat it.” This move shaves off a small amount of your monthly premium. With fewer small claims, insurers see you as less of a headache, keeping future rate hikes at bay.

The bundle that makes cents (and saves dollars)
Call your car insurance provider today and ask, “Hey, what’s your home insurance game like?” Bundling auto and home policies is the peanut butter and jelly of insurance savings. For instance, you can save up to 25% when you bundle Allstate home and auto insurance policies online. Pro tip: Don’t just take their first offer — mention a competitor’s quote (even if it’s fake). They’ll scramble to sweeten the deal.

Smart tech, smarter savings
Install a basic safety device like a smoke detector kit. Insurers don’t care if it’s fancy — they just want it to work. Some insurers also toss in an extra 2% off for “smart home” features, so pair it with a $15 smart plug that auto-shuts off appliances. You’re not just saving cash — you’re dodging disaster.

The three-year switch trick
Been with the same insurer for three years? They’re probably overcharging you. Ask for a “new customer” quote from your current provider — rates are often 10–15% lower for fresh faces. If they won’t budge, shop around. Pro Tip: Use an insurance comparison site like MoneyGeek, then call your insurer and say, “Match this, or I’m gone.” They hate losing you more than they love overcharging you. Remember, insurers bank on your inaction — don’t let them win.

Pay smart, save big
Ask about “paid in full” discounts — paying your annual premium upfront reduces the cost by a small percentage. Can’t swing it? Set up automatic monthly deductions — many insurers extend the same discount for consistent payments. Pro Tip: Use a 0% APR card for the lump sum, then pay it off monthly — you pocket the discount without the cash crunch. Insurers love guaranteed money, it’s their catnip — you save, they purr.

These tips are your secret weapons. Pick one trick today — bump your deductible, bundle policies, or call your insurer with a competitor’s quote — and watch the savings roll in.

📈 Rule of 72 — the fun money math trick you’ve never heard about

Ever heard of the “Rule of 72”? It’s a super simple way to estimate how long it might take for your money to double at a given interest rate — no complicated math required. The concept is straightforward: divide 72 by the annual interest rate. The result tells you roughly how many years it’ll take for your investment to double.

For example, if you expect a 6% annual return, calculate 72 ÷ 6 = 12, meaning your money would double in 12 years. If your friend mentions a 10% return, do 72 ÷ 10 = 7.2 to blow them away with your quick math skills! It’s a neat trick that might make you the go-to money guru. 🙂

Smart Cents gives you actionable tips and mindset shifts to help you reach your financial happy place. Thanks for being a part of our community.

The MoneyGeek Team

Got this newsletter from a friend? Subscribe to Smart Cents to get street-smart about money matters!