SeaComm Federal Credit Union OFFICIAL BLOG

6 Money Mistakes You Don’t Realize You’re Making

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There are two kinds of money mistakes: those we all know we make, and those we aren’t even aware of. Here are 6 common money mistakes most people don’t realize they’re making, and how to avoid them.

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You upgrade too often. If Apple releases a new iPhone, or Android announces a new model – it doesn’t necessarily mean that you have to be in line with the rest of them. Don’t get distracted by all of the shiny features – purchase a phone that fits into your budget, and hold on to it for at least 3-4 years. With most phone plans, you are allowed a free phone after this amount of time, patience is a virtue!

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You’re not saving enough. Living without an emergency fund is a risk you don’t want to take. Experts say that the total amount in your savings account should be 10% to 15% of your total pretax yearly income. So if you take home $3,000 a month after taxes, and $36,000 per year, your emergency fund should be at least $3,600. While it won’t happen overnight, it will never happen if you don’t start contributing now. A great way to increase your savings and make your money work for you is to invest in a Money Market Account, with SeaComm! Click here to learn more.

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You waste food. It’s hard to believe that more than one-third of all food that is produced globally is either wasted or spoiled. I am guilty, as I’m sure we all are. Not wasting food doesn’t necessarily mean you have to finish your plate after each meal, but there are a variety of ways to repurpose leftovers and save scraps. Click here for 11 practical ways you can reduce food waste and save money.

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You put subscriptions in autopilot. Monthly services like Netflix, Hulu, HBO Go and even some gym memberships shouldn’t be referred to as monthly, more so – eternally, as most of us are auto-subscribed. Putting these subscriptions on autopilot is a great way to save time, but it can be harmful to your wallet. After you’re done reading this, do a self-audit of your bank account or credit card. Determine what services and how many are being charged to your account on a monthly basis, and then cancel those you do not use.

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You buy everything “new.” This mistake is probably the most common. Why should you pay a premium price for new books, cars, electronics, appliances and other things when you can get used items at a discounted price? While there are some exceptions, most of these things can be found in good or great condition for significantly less. Sites like Amazon, Swappa and even Facebook Marketplace offer up a variety of used or refurbished items at a discounted price.

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You pay too much interest on your credit cards. This is the cost you pay for carrying a balance on your credit card. In order to avoid these annoying fees, you’ll need to pay attention to timing and the amount of your credit card payments. If you carry a large balance on your credit card each month, you’re most likely being piled with interest and you don’t even realize it. The easiest way to avoid this? Don’t carry a balance. SeaComm Visa Credit Cards have a 25-day interest-free grace period. This means that you have a minimum of 25 days without a finance charge on new purchases, if you pay the total “new balance” on your monthly statement each month by the due date! Click here to start an application.

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