These days, we have many tasks to accomplish for. We need to handle work schedule and maintain home routine. Our minds remain under pressure and thus, we make some mistakes regarding our money matters. If we make mistakes commonly then these mistakes become a cause of personal finance mismanagement. Therefore, it is quite essential to know what our common money making mistakes are. Check the details of 10 usual money mistakes below.
1. Not paying attention to Receipts
It is a common mistake we all made. Whenever you are going for shopping, your complete attention is on your product rather than on receipt. 4 out of 10 shoppers pay attention to receipts. I think it is a bad practice, you should completely check a receipt before leaving a shopping mall. A few minutes that you spend on checking receipt will provide you a clear idea about the price of item.
2. Spending Without a Plan
You always have a spending plan in mind. If you spend without thinking then it’s mean you are somewhat unfair and cruel to yourself. You have to work for hours for earning your salary then why don’t you spend a few hours in thinking about the items you need and the items that aren’t very important.
3. Impulse Buying
It is a fact that you spend a lot of your money on impulse buys. If you want to avoid this mistake then you should have a list of all required items in hand before you leave home for shopping. This list will save your money and push you to remain to the point.
4. Not noticing bank changes
It is among one of the worst mistakes of our life. Every year bank make changes in their service charges. We don’t have time to check how much we are paying in terms of service fees and other charges. If you review bank changes then it becomes easy for you to compare its yearly cost with other banks. This comparison will make it simple for you to decide whether you need to close your account or not. There is no need to stick with a bank that charges high especially when other bank is serving you better at a lower cost.
5. Ignoring ATM Fees
I think it is a usual mistake we make in our routine life. This mistake increases our bank fees to a great extent. Actually, when you have a bank ATM card and you withdraw from another bank ATM facility instead of your own bank then this transaction cost will be $5-6 every time. You may ignore this small fee one time. However, if you make 20 transactions in a month then it becomes $100 and this fee is definitely high for you.
6. Missing Due Dates
Another common mistake is not opening our utility bills when they arrive one or two week before due dates. We open it usually at or after due dates and we need to pay extra charges after due dates. If you add due date charges of three utility bills then total is almost $100-150. You are losing your hard earned money because you don’t have time to pay bills on time.
7. Always Purchasing New Items
Problem is that we always prefer to buy new items when we know that second hand items in good condition can fulfill our needs. For example, when we want to renovate our home then we like to purchase brand new furniture, curtains, etc. Well, you can decorate your home in a stylish manner even with second-hand items, if you want. This action will save money and also gives you home a new look.
8. Not Doing Comparative Analysis
Whenever you are going to buy something big like TV, furniture, etc then you should try to look around. There is no need to go to a shop and buy your favorite item. Contrary to this, you should search online and offline just to know where you can your favorite item at a reasonable price.
9. Not Paying Credit Card Cost Each Month
Credit card adds convenience in our life as we can buy first and pay later on. However, this convenience may become a big problem of personal finance management when you use credit card but don’t pay its bill month to month. Late fee and additional interest charges increase overall cost and you have to pay high at the end. Therefore, you should use credit card and try to pay its balance at the end of billing cycle.
10. Not Checking Credit Score
You should check your credit history quite often. Sometimes credit reports have some mistakes that leave negative affect on your score. Your poor credit score will create problem for you as you need to pay high for credit card and insurance purchase. It is advisable to demand your credit card reports once or twice a year. Get these reports and check them carefully if you don’t want to pay high.
I’m sure that when will you avoid these money mistakes then you can save money for your future needs.