Home / Business / 5 money mistakes you probably don't even realize you do – the motley fool

5 money mistakes you probably don't even realize you do – the motley fool



Surprise! You probably make a lot of money mistakes, and they can cost you a lot – like many hundreds or thousands of dollars.

Here is a look at five common and expensive money that many do. See how many apply to you and how much money you can hold in your pocket (or your retirement accounts) by changing your ways.

  Money flying out of the woman's wallet

Image source: Getty Images

] Mistake # 1
: Being oblivious to recurring charges

This mistake is easy to do because it involves costs that are largely hidden. If you are not in the (good) habit of regularly reviewing your credit card bills, you may not notice that you are being charged certain amounts on a regular basis – and often unnecessarily. (Worse still, many automatic monthly fees increase over time, which most don't notice.)

For example, you have stopped going to your local gym three years ago, but you forgot to cancel your membership so you have forfeited over $ 40 every month. Over three years it would amount to a hefty $ 1,440. Likewise, you can pay $ 150 or more to your cable company every month even though you're streaming most of your entertainment. Cutting the cord in favor of paying for some cheap streaming services can save you $ 100 a month – $ 1200 a year. You can even pay for subscriptions at an earlier address!

Mistake # 2: Staying at work for a long time

You may think you've done well to have stayed in your current job for many years, but to maximize your income, you might want to think about going further.

According to Forbes "Working in the same company for over two years on average will make you earn less over your lifetime by about 50% or more."

People at the human resources company Automatic Data Processing studied data related to 24 million workers and found workers receive the biggest increases in salary when they have been at work for at least two years but not more than five years.

An added benefit of job jumping to increase your income is that it can also increase your social security benefits because they are based on your income history. By earning more, you will likely be able to suck more money for retirement.

Mistake # 3: Ask for a raise

Job shopping is not for everyone. Some just don't have the stomach for it, or they can simply really love the job they have. You can strive to earn more in your current position by doing a simple thing: ask for a raise.

A new survey from PayScale that was found among those who asked for a raise at work, received about 70% some form of increase. (And by the way – only 37% of the investigated workers had bothered to request a raise.)

  A young woman wrinkles as she looks at the wallet she opened, because lots of dollar bills fly out of it. [19659004] Image Source: Getty Images. </p>
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<h2><strong>  Error no 4: Do not regularly check your insurance </strong></h2>
<p>  Go and pat yourself on the back if you have all the insurance you should have – cover your health, life, car, home and even your apartment if you are a tenant. But you're not ready. Insurance is not something to set and forget if you want to keep your costs. </p>
<p>  Ideally, you should spend an hour or two each year and contact a variety of insurance companies to review your coverage for each insurance and to get fresh quotes. Shopping around for better prices regularly can potentially save you hundreds of dollars a year. The insurance companies use different formulas to determine their prices, and the formulas can change over time. Different insurance companies can offer the best possible deal during different years. Keep the insurer's reputation in mind as well, and do not switch to one that is not highly rated. </p>
<p>  Another way to save on insurance is to combine your policy – an insurer can give you a discount on all your policies if you are covered by two or more policies. Consider increasing your deductible as well. The higher your deductible, the lower the monthly premium. (Just be sure you can afford to pay the deductible if you need to.) </p>
<p>  According to Quadrant Information Services, your car insurance gets deductible from $ 250 to $ 500 on average about 7%. Raising it to $ 1000 can save 9%, while going for a $ 2,000 deductible can run at an average of 16% of your premium. Of course, these averages are, and some people will be able to save even more, so this is a money-saving strategy worth exploring. </p>
<h2><strong>  Mistake no. 5: Don't make any real estate planning </strong></h2>
<p>  Finally, the latest common and costly mistake many people make is to abandon their planning. We all need this, not just when we approach the pension. Even though you are still in your 30s, it is smart to have a will prepared along with a lasting power of attorney for economics, living will and a power of attorney for health and medical care (sometimes referred to as health care provider). Even young people can stop temporarily or permanently, and many people die decades earlier than they expect. Getting these documents and arrangements in order can save your loved ones many problems and potentially a lot of money as well. Be sure to keep your listed beneficiaries updated for all your financial accounts. </p>
<p>  The more financial errors you avoid, the more money you will be able to keep in your pocket – or in your pension fund. </p><div>
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