These Are Top 5 Money Traps And Tips To Cut Costs
Most of us are paying more now for just about everything. And if you’re like me, you are probably even more conscious of how you spend your money. Even if you’re the savviest with your money, there are still money traps that can get you caught up.
1. Bank Fees
It’s the small fees that can add up. They could be a fee for withdrawing money from an out-of-network ATM or paying monthly service fees for having a checking account. According to a Bankrate survey, The average monthly fee for non-interest checking accounts (excluding free checking accounts) last year was just over $5. And the fee for interest-bearing checking accounts was more than $16.
Tip: Consider changing banks. There are a number of banks with checking accounts that don’t have monthly maintenance fees at all. Nearly half of checking accounts don’t have monthly maintenance fees at all, according to Bankrate. The cost of monthly fees, if you’re unable to avoid them with your current bank, likely outweighs any interest you’re getting paid on that account.
2. Subscriptions you don’t use
Take inventory of your subscriptions. Last year, a Chase study found more than 70% of consumers wasted more than $50 per month on recurring payments for things they didn’t need or want. Did you sign up for a free trial and then forget to cancel it?
3. Food Waste
4. Extended Warranties
We all get those offers to extend warranties on electronics, cars, and appliances. But is it always a good deal for the consumer. According to Ramhold, sometimes the cost of the plan will exceed the cost of any potential repairs. And what if it doesn’t cover the issue that you have? , Ramhold said. Plus, many credit cards include extended warranty coverage for some purchases, so you may be paying for coverage you already have.
Tip: Rather than paying for an extended warranty, consider allocating extra cash toward an emergency account. You can use that account to cover the cost of repairs if they pop up.
5. Overpaying for insurance
