Your daily routine could be costing you big time. Laura Rowley is a personal finance expert and author of Money and Happiness: A Guide to Living the Good Life. She says your routines might be threatening your finances. Here are some of the everyday activities that can drain your bank account:
- Throwing out “junk mail” from your credit card company. Rowley says you need to read those notices, because credit card companies are raising rates, or changing them to “variable rates” - which works out to be the same thing. They’re trying to skirt the rules on the Credit Card Holders Bill of Rights Act that goes into effect in February, which clamps down on unfair interest rate increases, penalty fees and much more. So, you need to read your mail and protect yourself. Be ready to call and demand a fixed rate - or take your business elsewhere.
- Another daily routine that’ll cost you: using a debit card without writing down the transaction in your register. A new report found that 50 million North Americans overdrew their accounts at least once in the past year, and 27 million were charged five or more overdraft fees. At about $35 per charge, that adds up fast. So why write it down? It’ll make it easier to track your money and cut down on mindless spending. Also, simplify your money managing by using online bill pay for your regular monthly bills.
- One more daily routine that could be costly: Spending without goals to guide you. The way most people approach their finances is like this: earn and spend, earn and spend, and they wonder why they’re not making progress. According to Rowley, you can break the cycle by figuring out what you value most - whether it’s world travel, a debt-free college education for your kids, or a peaceful retirement. Then set specific goals with time frames, and track your progress on a monthly basis. Also, post your list of goals where you’ll see it every day: next to your computer, on the refrigerator, on your desk at work. You’ll be more disciplined when you’re reminded of what you’re working toward.
