Five Money Mistakes You can Avoid

When it comes to household budgeting, it’s sometimes easy to know where to cut corners; you can buy larger boxes of cereal or snacks and separate it into smaller single serving sizes and the cost per ounce will be less expensive than buying pre-packaged single servings or check out store brand products over name brands, etc. There are also other, more significant steps you can take to save money in your household budget without sacrificing service or quality.

Here are five money mistakes you can avoid that will help you keep more money in your wallet:

  1. Don’t overpay for homeowner’s insurance. Talk with your insurance agent and see if your home is properly insured. Can you save money by increasing your deductible? Do you have too much coverage on the home? Are you missing out on credits (home security, fire alarms, etc.)? Ask your agent what your insurance provider offers premium credits on.
  2. Don’t put off buying life and health insurance; it’s an investment in your future financial health. Healthy individuals typically look at health insurance as being unnecessary, but you never know when an illness or accident will occur and when you’re in the midst of a health crisis, you likely won’t be able to buy (or afford) health insurance. Life insurance premiums are less expensive when you’re younger and when you’re healthy. Talk with a financial advisor and your insurance provider to determine the best type, and amount of, insurance you and your family will benefit from.
  3. Not knowing what your credit scores are. Check your credit scores regularly to make certain there haven’t been any identity theft issues. Also, if your credit scores are improving, you may be able to work out better interest rates or payment plans with creditors. You can request a free credit report annually. Keep copies of the reports so you can monitor your credit and your credit scores.
  4. Don’t be too conservative in your investing. While it’s tempting to err on the side of caution and conservatism with your investing, you may be missing out on a financial windfall. The younger you are, the more aggressive you should be in your investing.
  5. Being hit with late fees. When you’re paying a late fee, you’re simply throwing money away. A late fee not only eats into your household budget, but being late on payments can also negatively impact your credit score. If you’re being hit with late fees, talk to your credit card companies to see about moving payment due dates to the times of the month when you get paid. Signing up for online bill pay can also help alleviate worries about making payments on time. Set yourself a monthly bill reminder as an additional step to steer clear of late fees in the future.

Look at your household expenses with a critical eye and see where you might be able to save money without sacrificing service and you’ll see the savings add up!

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