When it comes to healthy financial decisions, more often than not, it’s deciding to avoid making certain mistakes that will leave you with the most in your savings. Unfortunately, there are a number of common practices far too many people unquestionably take part in that puts their money at risk.
One good example of this is an auto title loan. When you need quick cash, it might make sense to use your title as collateral. Most people don’t have too much of an issue paying the loan back either. The problem is that the high interest rate usually makes paying back the rest of it pretty difficult. Many people actually end up taking out a second auto title loan to pay off the first one. These are just never a good idea, especially when compare them to other loan options that are way better.
A far more common mistake, though, is not putting your money to work. While everyone should have some version of a healthy investment portfolio under their belt, it’s just as important that your savings don’t simply stay put. Without using a vehicle to help them grow, inflation will soon ruin your attempts at being fiscally responsible. Consider 401(k)’s, IRA’s, CD’s, and other reliable methods of keeping your money safe, while earning a little extra.
Speaking of which, every year you should be reviewing your bank’s programs and comparing them to others. Far too many people pay big banks a lot of overhead for everything from ATM fees to checks when they could be getting the exact same services for far less from a competitor.
Lastly, but along the same lines, review your credit cards too. If you’re paying more than the average 16% in interest, you’re getting burned. Look for companies that charge less and offer the types of rewards you’re most likely to actually use.