Last week I was challenged by a post by Kylie Ofiu, about money mistakes she had made – that cost her over $23 000 in the past year. Ain’t nobody got cash for that!
I like to think I’m pretty good with money, but I’ve made a couple of mistakes in my time and have had to learn my lessons the hard way. I’m sharing my common money mistakes with you today so hopefully, you WON’T make them!
1. Charging up my Credit Card
When I first got a credit card at age 19, I was a poor tertiary student.
It was given to me as part of a student loan package – the bank lent me enough to buy a car which got me through my final year of teacher’s college – and I didn’t have to pay anything back until I started working the following year (I wonder if they still do loans like that these days?).
Trouble is, it got me into thinking that buy now, pay later was a really great idea!
As a result, my credit card was maxed out from almost Day One, and as soon as I cleared any debt from it, I thought of it as money I could – and SHOULD – spend.
Of course, using a credit card this way means you pay scads in interest.
Fortunately the hubster has a very wise head on his shoulders when it comes to money, and he helped me a lot once we were going out. I learned from him that using credit for things that aren’t going to appreciate (clothes, shoes, fuel for the car) is a BAD IDEA. I paid off my credit card quick smart and now it is always paid off before the end of the month.
2. Paying Double House Insurance
When we bought our home a few years back, we went with the bank insurance just to make things easy – and it was deducted from our account each month.
But as you probably already realise, it costs more to pay monthly so when the renewal arrived I got a better quote, and paid a yearly premium to another company.
Except … I forgot to cancel the automatic deduction. Ooops!
I didn’t realise my mistake until nearly 12 months later when BOTH insurance renewals arrived!
I wonder if both companies would have paid out, if, for example, our house had burned down?
3. Using Other Bank’s ATMS
I’ve been stung with this one a bit lately and have determined to get more organised. A $2 or $2.50 fee here or there may not sound like much but it all adds up – and I figure the banks are already masters in racqueteering, why give them any more than you have to?!
What has been your most common money mistake?
Linking in with Essentially Jess for another round of I Blog On Tuesdays.
I’ve always tried to pay off the credit card before the end of the month. Our biggest mistake was having a personal loan that had 11% interest and having the same amout of money that the loan was, saved in a savings account earning 5%. Our accountant told us to pay off the debt straight away because we were paying more in interest than we were saving!
Yep personal loans can be a bit of a rip.
I am horrified to admit it but I’ve made ALL three! I try my best never to use another banks ATM these days and I always double check insurance bills etc, with is good but I am yet to clear my credit card. I know how bad it is and I WILL get there!! xx
It’s so easily done Robyn – that’s why they are COMMON money mistakes. Good luck with clearing that plastic! xxx
Oh the bank fee one I managed to get around. ING refund it to you if you withdraw over $200. So even though the fee is technically taken out by whichever atm you use, ING give it back to you.
Thanks for linking to me đ
Yeah I need to organise something with the account I now use for my business – I wanted to keep it separate to our everyday account but the transaction fees are something else, even if they are tax deductible! Will have to go and talk to the bank and see what they can do for me …
Spending on crap we don’t really need! You know those little bits & bobs that don’t cost much individually but really add up? I’m the ultimate consumer!
Totally! I am glad Miss Almost 17 is now working – keeping her in makeup alone was killing our budget đ
Being a student can be hard – I had a student debt that I regretted but we wouldn’t have eaten if I didn’t. And those ATM fees I hate! There is never a bank when I need one – or the right one for that matter.
I know, doesn’t it drive you crazy when your bank’s ATM is nowhere to be seen? I try not to get out too much cash because when I do, it just goes … but then I don’t have any cash and sure enough I’ll be at a snack bar or garage sale with no EFTPOST – grrr!
The bank fee one annoys me so much I refuse to use ATMs that charge! When my ex and I moved in I looked at a bank statement and realised he had been paying for a cancelled house insurance policy for 2 years because he never cancelled the direct debit! Grrr
Paying house insurance twice! ouch!! I’m trying to cut back on incidental spending, may not seem like much, but it all adds up. Love that pic of you and your car xx
Those ATM fees are terrible!
We went to Noosa recently and went to buy the kids an ice-cream each, the busy modern cafe informs us we don’t do eftpos at all, only cash (I know right?) but there is an atm right next door that everyone uses she informs me, yes an atm of some very uncommon bank I wasn’t even familiar with that charged $2.50, which on top of what were very expensive ice creams as well made it rather expensive. Learning now to carry at least some cash on me if I can!
NO WAY, house insurance twice, man I’d be in so much trouble if I had done that! I think my biggest money problem is instead of using our everyday account I put things on credit, and then have to find the money to pay it off. We’ve never got in trouble, but I’m going to make more of a habit of leaving the CC at home!! I do use those $2 machines HEAPS, so convenient but yes it all adds up x
I have always managed to pay off the credit card each month so have never paid credit card interest.
But I did get scammed a few weeks ago, trying to sell furniture online, and that cost me heaps đ
Big lesson learned there!
I have been stung with the ATM fees too. Expensive when it’s only for small amounts, so not worth it. We have now co-ordinated withdrawing money on a regular basis, so I hardly ever get to the atm.
I am so with you on the bloody other bank ATM fees. There was a stage where my husband wasted almost $20 in one month just on those fees. Now the only non-our bank ATM he is allowed to use is the one at the servo down the road, because you get a voucher when you use it and pay the fee, usually for buy one get one free something which works out ok as use them when we really hanker for a treat but don’t want to buy two of something (we are cheap I know, comes from living on one wage at the moment).
#teamIBOT was here!
My common money mistake is not thinking about all the little things. The diet coke here, the coffee there, the pack of spring rolls or whatever. They are only small amounts, but it really doesn’t take long for it to all add up to a lot of unnecessary spending
I did the maxing out of the credit card and only paying the minimum. Took years to pay off until I realised you will never be rid of it if you continue to pay the minimum.
Charging up the credit card… I think we’ve all done it. I did it too, and learned from my mistake that credit cards are great as long as you pay them at the end of the month.
the mistake i keep making over and over and over again is buying cars with loans. I’ve had a car loan since I was about 23. 12 years of my life in interest! đ