Money Mistake #4: You Waste Cash on Fees
It’s one thing to burn through $100 on a fantastic meal at your favorite restaurant. Hey, at least you enjoyed yourself! But it’s entirely another to trash 100 big ones on overdraft fees or missed payments.
“The difference between wealthy people and everyone else is that the rich watch where their money is going, and they protect their wealth by making sure none of it slips through their fingers,” says David Bach, vice chairman of Edelman Financial Services and author of “Smart Women Finish Rich.” “Rich people will rarely be caught paying their bills late, bouncing checks or carrying a high-interest credit card because they hate to waste money.”
The Get-Rich Fix Automate, automate, automate. We’re only human, after all, and we’re bound to miss a payment or overlook a bill at some point. So put safeguards in place that will lower the risk of those inevitable blunders.
“Set up auto-pay features to take care of your key bills—mortgage, car payment, insurance, credit cards,” Bach says. “Late fees can add up to a fortune.”
Of course, that also doesn’t give you license to simply coast. “Rich people read their statements, checking regularly for mistakes,” Bach adds. “They know that if they catch errors on their bills, they can call their provider and get them fixed ASAP.”