How to fix your money mistakes
Does it seem as though you can’t get control of your finances, no matter how hard you try? You might be making some common money mistakes and not even realizing it. These mistakes can be costly, and can rob you of your hard earned money. Take a look below at 5 money mistakes you might be making and see how easy it can be to prevent them from happening.
Are you making these money mistakes?
1. Using ATMs not associated with your bank.
If you are using an ATM that does not belong to your own bank, you are most likely paying a fee on your withdrawal. The fee can come at you from both ends, both your bank and the bank you are visiting. Suppose you pay $4 in fees per transaction, and do this 5 times a month. That is $20 a month or $240 a year! Instead, only use ATM’s that belongs to your bank or credit union. This way, you aren’t being slapped with transaction fees.
2. Not investing in your savings account.
Each week, you should be making a contribution to your savings account. This should be money that is skimmed from your weekly paycheck before it is touched for anything else. Even on a tight budget, try to place 10% of what you make in a savings account with a decent interest rate. This way, you are building an emergency fund while making a little money on it at the same time.
3. Not reading your monthly statements.
You need to be sure you are opening and reading your monthly bank statements. This is a great way to check for errors as well as balance your account. Properly balancing your account helps you avoid overdrawing it and facing penalty fees. Open your statement each month so you are well informed of changes happening in your account.
4. Not tracking your spending.
It is wise to track your spending for a week to 10 days every few months. This way you can see where your money is going and make changes if necessary. During the tracking period write down every cent you spend then evaluate where your money is going at the conclusion. Make cuts and changes where necessary.
5. Not paying cash.
Do you find yourself charging purchases out of convenience? This convenience could be costing you! Interest rates as well as missed payments can really raise your bill in no time. Instead, work on a cash system for paying for purchases. (These printable cash envelopes are great for organizing your cash system!) You will avoid interest rates and monthly payments all together.
Are you making any of these money mistakes? If so, stop! By making some simple changes you can get your finances under control and looking healthier. Give these tips a try!