When it comes to spending and saving, many may think they are in control and may even consider themselves savvy. But what you may not realise is that we all make small money mistakes everyday, whether it is by accident or not.
Overtime, these small mistakes can add up and lead to a significant amount of money wastage. So what are these niggling money mistakes and what can you do to avoid them?
Buying things that are free
There are plenty of ways to get the things you want without having to spend a dollar.
Not keeping track of accounts and credit cards
While you may have all of your current bank accounts and credit cards under control, what if you had an account or credit card you've forgotten about? Take a look through your wallet and you may find there is a credit card sitting there that you never use, but it could still be costing you in annual fees. If you are not sure if you have any unclaimed money, try the ASIC unclaimed money search tool.
Are you a stickler when it comes to keeping energy and water costs low? There may be a few things in your house that are costing you more than you think. Do you have a second fridge that is barely used, but is constantly running? Do you have a ducted air conditioner that runs throughout the whole house, even when you are just using one room? Do you know what type of light bulbs you use? All of these things can add up, but it is very easy to make a few small changes and slash your bills. Only have your spare fridge running when you need it, when using your air conditioner only have it running in the rooms you are using and finally, opt for energy efficient light bulbs to help save on power usage.
Not sticking to deadlines
If you are not diligent with repaying your bills, the amount you spend on late fees and interest can add up. Not meeting repayment deadlines can also damage your credit report, which may affect your chances of obtaining credit in the future. If you do have a number of ongoing financial commitments, it would be beneficial to write down all repayment due dates and even set reminders on your phone.
Credit cards, personal loans and other financial commitments often have high interest rates and the minimum repayment usually covers the interest and only a small percentage of the amount owing. To avoid paying an exponential amount in interest, it is important to make larger repayments. Also, you need to prioritise your debt so the bills with the highest interest rates are paid off first.
We all like to treat ourselves sometimes, but too many treats can end up costing you more. Unhealthy habits cannot only affect your health, but your wallet as well. Things like cigarettes, alcohol and tanning salons may seem like small costs individually, but they add up over time.
Medical fees can also be a possible future cost if you have unhealthy habits. Smoking, drinking and sun bathing can all have a detrimental effect on your body and medical bills are not always cheap. For the sake of your body and your wallet, try to kick as many unhealthy habits as you can.
Not shopping around
You may think you've found a great deal five minutes after researching online, but how many different companies have you compared this deal with? Whether you are looking for a car, a holiday or a home loan, it pays to take the extra time to shop around.
Finding a lender that understands what you are looking for and will take the time to explain the benefits can be a big help. State Custodians offers very competitive home loans, with a broad range of features and we have a team of Lending Specialists ready to answer any questions you have. Check out our home loans here or call on 13 72 62 to chat to a lending specialists about finding the right home loan.