Surprise! You probably make a lot of money wrong and they can cost you a lot – like hundreds or thousands of dollars.
Here's a look at five common and costly money bugs that many people make. See how many apply to you and how much money you can hold in your pocket (or your retirement account) by changing your paths.
] Error # 1
: Being Unaware of Repeated Costs
This error is easy to do because it involves expenses that are mostly hidden. Unless you are in the (good) habit of regularly reviewing your credit card bills, you simply cannot notice that you are being charged certain amounts on a regular basis – and often unnecessarily. (Worse than, many automatic monthly charges increase over time too, as most people don't notice.)
For example, you may have stopped going to your local gym three years ago, but you forgot to cancel your membership so that You've been forking over $ 40 a month. In the course of three years, it will amount to a hefty $ 1,440. Likewise, you can pay $ 150 or more to your cable company every month despite streaming most of your entertainment. Cutting the lead in favor of paying for a few cheap streaming services can save you $ 100 a month – $ 1200 a year. You can even pay for subscriptions that go to an earlier address!
Error # 2: Staying at work for a long time
You may think you've done well to have lived at your current job for many years, but to maximize your earnings, you might want to think about going further.
According to Forbes "Being an employee of the same company for over two years on average, will make you earn less than your lifetime by about 50% or more."
People on Human Resource management company Automatic Data Processing studied data related to 24 million workers and found workers receive the biggest increases in their salary when they have been at work for at least two years but not over five years.
An added benefit of job jumping to increase revenue is that it can also increase your social security benefits because they are based on your income history. By earning more, you will probably be able to put away more money for retirement.
Error No. 3: Don't Ask for a Raise
Job Shopping is not for everyone. Some just do not have the stomach for it, or they can simply really love the job they have. You can aim to earn more in your current position by doing a simple thing: ask for a raise.
A recent survey by PayScale found among those who requested a raise at work, gained 70% some form of increase. (And by the way – only 37% of the investigated workers had bothered to ask for a raise.)