“Money in the bank is like toothpaste in the tube. Easy to take out, hard to put back.” Earl Wilson
Money management missteps can add up to big dollar losses. Fortunately, once you’re aware of these bad money behaviors, you can take steps to change them. Making small tweaks to your lifestyle and spending habits could pay off in a big way. Here are some ways you may be throwing money away:
Checking account fees
What’s your bank’s policy on checking account fees? Some banks waive monthly fees for new customers during a promotional period, but will then charge as much as $10 or $12 per month if you don’t meet certain balance requirements. Find out if you are being charged fees. If so, switch to a bank with no fees.
Shopping impulsively
Make a list of what you need before you head to the store, and stick to it. Impulsive shopping can really add up. You also may end up buying items you don’t need.
Running up balances on high interest credit cards
High interest credit cards take time to pay down. Don’t let frivolous purchases run up balances on credit cards. If you do have a high credit card balance, you can erase it by prioritizing your spending and not adding to it.
Not having a financial plan
Having a plan is crucial for financial success. RentPlus Money is a great way to set goals, budgets and more. It’s free to all RentPlus subscribers. Part of your financial planning should also include having an emergency fund. The best way to build one up is through a high-interest savings account. This way, all the money you put in will accrue interest at a high rate, so you’ll be financially prepared for any curveballs life throws your way.
Confusing needs/wants
Understanding the difference between what you need and what you want can be very helpful for financial success. Practice by asking yourself if something is a need or a want before making purchases.
Paying bills late
If you don’t keep track of bill due dates, it’s easy to fall into the trap of playing catch-up when you realize your bills are overdue. Most companies will charge a late fee, and some credit card companies might cancel your promotional rate if you fail to pay on time. Eventually, the late payments could show up on your credit report and lower your credit score.
Skipping the dentist
Schedule an appointment for your dentist regularly. Delaying your dental visits could lead to costly dental treatments or procedures in the near future. Don’t forget to schedule your next cleaning.
Eating out a lot
It’s tempting to eat out rather than prepare our own food. Eating out frequently can really add up. Try meal planning and prepping. How much could you save by eating out less?
Gambling
Gambling is an epidemic in this country, and compulsive gambling is a very real disorder affecting an estimated 10 million adults in the U.S., according to the North American Foundation for Gambling Addiction Help. Avoid gambling altogether and protect your money.
Being aware of some of these money traps can be really helpful to your bank account. Financial education is also beneficial. Check out FinStrong and learn more ways to be financially prepared.
Source: Yahoo! Finance
