Finances are rarely a subject of choice, unless there is good news involved. While many struggle to stay out of debt default through unforeseen circumstances, many more of us simply aren’t being smart with our money management altogether. In order to get the most out of your money, make sure you avoid these costly mistakes:
1. Little earning interest — The average savings account has less than a half of a percent interest earning rate. Shop around and look for an account offering closer to 1% interest earning rate to really boost your savings account with little effort.
2. Paying bank fees — Some banks charge fees for opening and maintaining accounts in addition to the common ATM fees. Look for a bank or credit union that doesn’t charge for monthly account maintenance fees, and withdraw your cash in person rather than using the ATM.
3. Skimpy retirement plan — Most people contribute the bare minimum if anything towards their retirement plan. Make saving for your retirement a priority and contribute any extra cash you can spare to the account to help sustain your finances when you retire.
4. Quick cash decisions — It can be tempting to turn to payday loans when you need cash, but these typically end up in a cycle of more borrowing and a high risk of default. Avoid using these quick cash loans and find a family member or friend to loan you the money if feasible.