3 Money Mistakes To Avoid

  1. Ignoring Company Benefits

Most companies offer an array of benefits that most people just do not use. How about your 401k, do you have one? Do you realize that in most cases your employer will match what you put in up to a certain percentage? The most common amount is 6%. If you are not taking advantage of this offering, you are losing big money! Guess what? It’s 100% free after you vest.  

Do you have vision and dental benefits? Once a year you are entitled to a free cleaning of your teeth and a free pair of glasses or contacts. These are just a few things you should be aware of, and you should check your benefits package and see what else you have been missing.

  1. Making Minimum Payments

In the day of the debit card and direct deposit most people carry very little cash on them. You probably have a few extra credit cards as well. If you are only paying the minimum payment due on your accounts, you are throwing your money away. Credit card companies like when a person with good credit signs up for one of their cards and runs a comfortable balance. It means that they will be collecting interest. If you only pay the minimum due each month and it’s a large item, you could end up paying two to three times for that item. Think twice about going to the checkout counter with a pack of gum that costs $0.25—seriously, if you can’t afford to pay for gum with cash, you certainly shouldn’t be using your credit card for it. That $0.25 pack of gum will soon become a $25.00 pack of gum if you don’t watch it.

  1. Taking Out Loans without Thinking of Extras

Many of us have to make a mortgage payment each month. This is considered “good debt” (whatever the hell that means). However, if you have a car payment or loans, such as furniture offered by large retailer, these can weigh heavy on you. Taking on too much “bad debt” is never a good idea, but the real kicker is that even if you feel you can afford pay that new car payment, did you also take into account what else you will have to pay. Did you consider that you will have to pay for gas, oil changes, regular maintenance, and tires? These are just a few things you will need over the course of owning the vehicle, and if you are already tight on your budget, these things might just break the bank. The point is even if you say, “I can afford it,” you need to consider everything else that will need to be paid out in order to maintain what you have purchased.

Have you ever done something stupid with your money that you believe should make this list? Tell us all about it below!

0 comments

  • Good advice. There are actually tons of people who do these, myself including. I used to pay the minimum fee each month and before I know it boom. What I owe grew 3x. Not letting that happen again. I now better now.

  • Great job! What do you plan on doing with the cash once you pay stuff off?

  • David /

    My girlfriend has some debt that she is paying off and keeping the interest low. On a funny note, she got a parking ticket two years ago that does not accumulate with interest and simply remains stagnant. I told her to pay off her loans and leave the ticket till she is done!

  • “Many of us have to make a mortgage payment each month. This is considered “good debt” (whatever the hell that means).”

    I hollered. hahaha

  • “The point is even if you say, “I can afford it,” you need to consider everything else that will need to be paid out in order to maintain what you have purchased.”

    House and car maintenance are two bigs ones. Have a babychild is another. But even stuff like cellphone plans (contract vs. no contract vs. prepaid) all have their own unique added bonus. One that the cable companies like to use is advertising cable service as $99/mo, knowing damn well that you’ll end up paying another $50 on taxes, fees, rentals, riboflavin, caca, and whatever other amounts they tack on to the bill. Stay woke, money warriors.

  • Great comment and tips. People need to look at total cost instead of sticker price.

  • I always ignored company benefits during the first few years of working. But when I got married and had so much extra expenses, that was only the time I realized why not use the company benefits for me save quite a good amount of money.

  • Kris /

    The minimum payment tip is such a good one. Most people don’t realize that the minimum payment is set to be just enough – to keep you in debt for a long time. Even when money is tight I try to add another $25 or $50 on top of the minimum just to do my best to pay down the debt.

  • Hannah /

    I wish we were much wiser as we believe we are. Good read for callous spendthrifts.

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