Hidden Money Mistakes You Might Be Making

You likely already know that saving money starts with creating a budget and sticking to it, but even if you think you are doing everything right, you may be making some money mistakes that are costing you. Evaluating your habits to see where you might be making these mistakes can help you save hundreds or thousands of dollars.

Not Regularly Going Over Your Insurance

If you have the right kinds of insurance, such as home, health, life, and car, you are already taking a step in the right direction. However, getting insurance policies and then forgetting about them will not help you keep expenses down either. Consider setting aside a couple of hours every six months or so to review your current coverage and contact different companies for free quotes to see if you can save anything.

If you are thinking about shopping around for products like term life insurance, you can review the Navient Marketplace Blog, which has information on what to look for. Regularly shopping around for cheaper rates can save you money each year. Much of the information goes into the rates an insurance company offers, and these formulas might change. They can also vary significantly across different companies. This means companies might have differing offers depending on the year.

It’s also a good idea to make sure you are only switching to a company that is highly rated instead of going with one just because they have low rates. You can also bundle different policies to save. If you get multiple policies from one provider, they might be willing to offer you a discount. It can also help to have a higher deductible, as this can reduce your premium. However, you will be responsible for paying the deductible if something happens, so make sure you have at least the amount of the deductible in your emergency savings.

Having Too Much in Your Savings Account

If you have money in your savings account, you may think you have done well to save that much, but there is more you can be doing with your money. Investing can help you earn money on the money you have earned. Even if you are concerned about protecting yourself from fraud and figuring out how to invest, you can always put it in a certificate of deposit (CD) and go from there. Having too much money in your account also makes you think that you have plenty of money at your fingertips. It can tempt you to make unnecessary purchases, and this can eat away at the balance you have worked so hard to build up. Putting it in an investment like a CD can prevent you from spending it.

Not Keeping an Eye on Regular Charges

It is easy to forget about that subscription service or that recurring gym membership because it becomes part of your regular expenses, and you don’t have to pay the bill each month because it is automatically deducted from your card. You might have been forgetting about an unused service that is now costing you hundreds of dollars each year. Look over and learn to understand your credit card statements and bank accounts carefully to make sure you don’t have any surprise charges or debits.

Staying at Your Job Too Long

If you have stayed in the same job for several years, you might think you are doing well at that company, but that doesn’t mean you are maximizing your income. Working at the same company will result in you earning less income over your lifetime. Switching jobs often gives you a bigger income increase than just getting a promotion. When you earn more money, you might increase your Social Security income during retirement, as that is income-based.

Not Asking for That Promotion

If you love your job or just hate the idea of constant job hopping, you could still increase your income by asking for a promotion or raise. Those who ask for raises can be more likely to get them than those who passively wait for one to be handed to them. Even if you do not get the full amount, you are asking for, asking for a raise shows you care about your job and are willing to take the initiative to advocate for yourself.

Not Planning Your Estate

Not doing estate planning is an easy enough mistake to make because most people do not want to think about the end of their lives. Even if you have a long way to go until you retire, it is a good idea to prepare things like power of attorneys, wills, and a healthcare proxy. Even if you are young and healthy, you could potentially become incapacitated at some point, much sooner than you expected. Without having these documents, you could lose money while you were incapacitated. Having these documents in order can help your loved ones help you.