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11 Money Mistakes You Don’t Realize You’re Making
Brian Penny | Lifehack
If you’ve got money and you know it, take it out your pocket and show it. *snatches money out your hand and runs.* Thanks.
Here are some other mistakes you’re making with your money.
1. You Buy Extended Warranties
I’ve worked at a variety of retail stores, and they all require every employee to push the extended warranty. They do this because it’s a sale where you’re giving them money for a product they don’t have to stock. They gain free money, because the odds of you actually using that warranty are slim. If your product lasts six months, it’ll last two years, unless you break it in a way that’s not covered by the warranty anyway.
“Use warranties that come with the product or service,” says financial expert Harrine Freeman. “Keep the original packaging and receipt so if an issue arises, you can get the item fixed without delay.”
2. You Have Too Much Insurance
You’re required by law to meet certain insurance requirements for your vehicle and any collateral loan. Insurance agents will push to give you more insurance because they’re commissioned salespeople. Whether it’s your car, home or body, don’t buy more insurance than you need, or you’re just paying to keep everyone else’s premiums low.
Also avoid cell phone insurance at all costs – these plans are difficult to use and cancel, and they’ll often charge you more to replace your phone than the actual phone manufacturer, the retail store you bought it at, or your service provider.
3. You Pay for Free Services
You can monitor your credit report for free by getting a copy once every year, yet credit monitoring services charge you for the privilege. It’s like paying to park in a free lot (which you’ll also do if there’s an event nearby). Avoid paying for anything you can do for free.
4. You Upgrade Too Often
When Apple releases a new iPhone, people wait in line for it. Android users are getting just as bad. Usually, the upgrades are minor. Sure, I can use my phone as a projector, but how often does that really come up?
Don’t get distracted by all those shiny features – buy a phone within your budget, and hold onto it for 3-4 years. By the time you upgrade, you can get a free (or extremely cheap) phone that’s still an upgrade over your current one without paying an arm and a leg
5. You Ignore Hidden Fees
Banks make their money by charging fees. They’ll charge both you and the merchants you shop at as much as possible, and many businesses pass these fees on to customers. Shell, for example, charges you for using your card. Shell is also notorious for keeping their gas prices higher because they have a branded credit card that many people confuse for a store card. The reality is that card can be used anywhere, so use it to shop elsewhere.
“Avoid using out-of-network ATMs,” adds Freeman. “Get enough cash from your network ATM on a weekly basis to avoid fees. Avoid multiple trips to the ATM during the week. Keep track of your bank balance to avoid overdraft fees.”
Source: http://truthisscary.com/2014/05/11-money-mistakes-you-dont-realize-youre-making/
