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Home / Business / 5 Money Mistakes You Surely Don't Even Realize You Do – The Motley Fool

5 Money Mistakes You Surely Don't Even Realize You Do – The Motley Fool



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.

  Money flying out of the woman's wallet

Image Source: Getty Images

] 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.)

  A young woman wrinkles when she looks at the wallet she opens, as many dollar bills fly out of it. [19659004] Source: Getty Images. </p>
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<h2><strong>  Error # 4: Don't review your insurance regularly </strong></h2>
<p>  Continue and pat yourself on your back if you have all the insurance you should have – cover your health, life, car, home, and even your apartment if you are tenant. But you're not done. Insurance is nothing to put and forget if you want to keep your costs down. </p>
<p>  Ideally, you should spend an hour or two each year and contact a number of insurance companies to see if you cover every type of insurance and to get fresh quotes. Shopping around for better prices regularly can potentially save you hundreds of dollars a year. The insurance companies use different formulas to determine their prices, and the formulas can change over time. Different insurance companies can offer the best deal in different years. Also keep an insurance company's reputation in mind and do not switch to what is not highly regarded. </p>
<p>  Another way to save on insurance is to pack your policies – an insurance company can give you a discount on all your policies if you are covered by two or more policies. Consider increasing your deductible, too. The higher the deductible, the lower the monthly premium. (Just make sure you can afford to pay deductible if you need it.) </p>
<p>  According to Quadrant Information Services, car insurance increases from $ 250 to $ 500 on average about $ 250. 7%. Raising it to $ 1000 can save 9%, while you go for a $ 2000 deduction, you can have an average of 16% of your prize. Of course it is average and some people will be able to save even more so this is a money-saving strategy worth exploring. </p>
<h2><strong>  Error No. 5: No Real Estate Planning </strong></h2>
<p>  Finally, the last common and costly mistake many people make is setting aside their property planning. We all need this, not just when we approach retirement. While still in your thirties, it is smart to have a will prepared, along with a lasting power of attorney, a living will and a health care professional (sometimes called a health care professional). Even young people may end up temporarily or permanently, and many people die decades faster than they expect. Getting these documents and arrangements in order can save your loved ones a lot of trouble and potentially a lot of money as well. Be sure to keep your listed beneficiaries updated for all your financial accounts as well. </p>
<p>  The more financial mistakes you avoid doing, the more money you can keep in your pocket – or in your pension fund. </p><div><script async src=


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