11 Jan 3 Most Common Small Financial Mistakes
Little things can cause you as much – or even more – pain as the bigger things in life. Little things can really add up, especially if you continuously ignore them.
Bellow are five small financial mistakes that seem insignificant but could harm you in the long term:
- Small Fees Add Up
One-time fees like a $3 out of network ATM charge or a $15 service charge made on your account for an online ticket purchase wouldn’t necessarily break you. They may not seem like much at the time, but if these fees are frequent, then they add up and can really cause a drain on your bank account.
- Paying Bills Late
If you pay your bills even a few days late, then you run the risk of incurring a penalty late fee. It is in your best interest to make sure that you are paying your bills on time every month, so you can boost your credit score and gain access to better interest rates in the future.
If your payments are 30 days or more past due, it can cost you more than a penalty fee. A late payment will lower your credit score, as payment history has an important influence on your credit score.
A good way to avoid late fees and late payments on your credit reports is to set your bills to auto-pay if you forget to pay them on time each month.
Not Paying Your Credit Card Debts in Full
When responsibly using them, credit cards can be a great way to earn rewards, like cash back or airline miles.
But make sure you are only spending what you can pay back at the end of the month.
Paying just the minimum each month will cost you a lot in interest in the long-run as well as it will take you years to pay these balances off. So if you don`t think you will have the money to pay your credit card in full then it may be best not to use it. That way you are not carrying balances or paying interest.
Remember, little things can add up, especially when it comes to your finances. Also, remember that your credit score is a critical part of your finances. Baby Boomers can review your credit for free! Contact us today!