Finances do not come easy for everyone. For some, it can be easy to set up and maintain. For others, just the thought of balancing your checkbook can stress you out. Even those who are good with money and finances could be making financial blunders.
Financial Mistakes and How to Fix Them
- Not taking advantage of increasing interest rates. The national average for interest on saving accounts is 0.23%. However, there are options that offer a higher rate. It may seem like a lot of work to switch banks, but it is costing you money. Whether you’re opening an account or looking to change banks, it is a best to shop around.
- Paying too much for your mortgage. You may believe that there is no way around paying your current mortgage. However, you could be eligible for a lower payment. Refinancing could yield a lower rate. If you have a 30-year loan, this could save you a lot of money in the long run.
- Paying interest on your credit card. The trick with credit card spending is to pay it before the billing period wraps. You want to ensure you’re paying the full balance, if not the remainder is accruing interest. Paying only the minimum may help you get by, but you’ll be paying more in the long run.
- Not using credit card reward programs. For many a credit card simply allows them to buy now and pay later. However, nowadays there are many credit cards with options to choose from. Most credit cards have their own rewards programs. These can be a great way to earn for your everyday spending.
- Overpaying student loan debt. When you’re right out of college having to repay student loans can feel like a heavy weight. It can be difficult to understand how the loans work. Often people choose a repayment plan and stick to it. However not adjusting your payment plan can take a toll on savings. You could end up paying more than what is needed.