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Are You Making These Big Money Mistakes?

The more financial errors you avoid making, the more money you’ll be able to keep in your pocket—or in your retirement coffers.

You’re probably making a few money mistakes, and they may be costing you a fortune. Motley Fool’s article, “5 Money Mistakes You Probably Don’t Even Realize You’re Making,” looks at five common—and costly—money mistakes that many people make.

Let’s look at some common errors and see how much money you might be able to save by changing your ways.

No clue to recurring charges. Unless you regularly review your credit card bills, you can easily miss monthly charges that you don’t need, like not cancelling a gym membership. Some automatic monthly charges increase over time, which you won’t notice, unless you’re checking those bills.

Working too long at a job. You may believe that you’ve done well to have stayed at your current job  for a long time. However, in order to maximize your income, you might want to think about moving to a better paying job. The human resource management company ADP studied data on 24 million workers, and found that workers get their biggest increases in salaries, when they’ve been at a job for more than two years, but not more than five years.

Failing to request a raise. It is true that job-hopping isn’t for everyone. However, you can earn more in your current position, by asking for a raise. A recent PayScale survey found that among those who asked for a raise at work, about 70% received some sort of increase. However, only 37% ever asked for a raise.

Failing to regularly review your insurance. Insurance isn’t something to set and forget, if you want to keep your costs down. Take some time every year to contact a variety of insurers to review your coverage for each kind of insurance and to get new quotes. Shopping around for better rates regularly, can potentially save you hundreds of dollars per year. Another way to save on insurance is to bundle your policies with one carrier.

No estate planning! The last common and costly mistake many folks make is delaying their estate planning. You should have a will prepared, along with a durable power of attorney for finances, a living will and a healthcare power of attorney (also known as a healthcare proxy). You should also keep your listed beneficiaries up to date for all your financial accounts.

Reference: Motley Fool (June 12, 2019) “5 Money Mistakes You Probably Don’t Even Realize You’re Making”


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