We’ve all made financial mistakes in our lives. From paying our bills late, to not getting insurance, many of us have done things, or do things on a regular basis that are huge mistakes when it comes to our finances.
If you think you’re the only one making these mistakes, boy are you wrong. The truth is, no one is perfect when it comes to their finances. We all make mistakes. And to top it off, there are several financial mistakes that many of us are making. So if you are making one of these common mistakes you are definitely not alone. But it also is definitely not too late to make changes in your life and stop making these mistakes.
Here are the top 5 most common financial mistakes:
1. Paying Bills Late
There are so many of us that consistently pay our bills late. This is a big mistake, because these late payments consistently cost us money in late payment fees. These $10 fees might seem small when you look at them one at a time. But when you are continually paying your bills late, and when you do this across several different bills, those late payments add up, costing many people hundreds of dollars a year.
How to fix this mistake:
Start paying your bills on time! If it’s simply a matter of forgetting, put recurring reminders on your calendar for all of your bills so that you will never forget to pay them on time. Or if you, like many people, have a lot of your bills due around the same time (say the beginning of the month), you can call some of the companies and ask them to change your bill due date.
2. Not Getting Insurance
Many people think they can’t afford insurance. But the truth is, you can’t afford not to have it. Not having home, health, or life insurance is a huge financial mistake that many people make. Unfortunately, it is one that can wreak havoc on your life and finances if something goes bad. If something happens to your home, or you have an unexpected illness, those costs will pile up quicker than you ever imagined.
On top of that, if you wait too long to get health or life insurance, those costs will go up as you get older, or if you end up developing a “preexisting condition.”
How to fix this mistake:
Don’t wait to get insurance. Find ways to budget it in now, while you can lock in affordable costs, or before you develop conditions (including age) that you prevent you from getting approved or hike up your prices in the future.
3. Paying too Much for Insurance
So you have insurance, that is great.
But are you paying too much for it? Many people are paying too much for their home, health, or life insurance simply because they didn’t shop around. These extra costs can also really add up.
How to fix this mistake:
This financial mistake can be fixed with a few simple phone calls. Spend some time to shop around! Call around to different companies (or get online) and see what other companies are charging for similar deductibles and coverage levels that you currently have. Go with the best provider. You can also take a look at tweaking your deductibles and coverage levels if they are too high, to help lower your insurance premium costs.
4. Not looking for Discounts
Some people get lazy when it comes to saving money. They don’t shop around with anything: clothes, groceries, etc. And that ends up costing them a whole lot of money.
How to fix this mistake:
Don’t be content to always pay full price. Get online and look for discount websites, or for online or in store coupons for your favorite stores. Take the extra few minutes to save money on your everyday purchases.
5. Not Checking your Credit Reports
This is one of the biggest financial mistakes that people make. And it’s definitely one of the most common. The majority of Americans have mistakes on their credit reports. And those mistakes can be taking their credit scores down, costing them buckets of money in too high interest rates.
How to fix this mistake:
Check your credit reports often. If there are mistakes, work to get them fixed (whether by yourself or by working with a credit repair company).
