Making assumptions can be risky, especially when it concerns your finances.
Oh, I’ve got enough cash in my account.
Oh, I’ll have plenty saved for retirement.
Oh, I’m sure I’m getting the best price.
Those kinds of assumptions can, frankly, backfire on you. To help keep you from being blindsided by wishful thinking, pay attention. These four common beliefs most people hold could end up costing you a lot of money:
1. You’ve Accepted Overdraft Fees as Normal
One of the most frequent — and most infuriating — bank charges is the overdraft fee. It hits you out of nowhere, often when cash is tight.
Like when you buy groceries and accidentally spend 50 cents more than your checking balance. Bam. You suddenly owe the bank $30. Not fair.
What can you do about it? Sometimes it seems easier to shrug and move on.
But there’s a mobile bank alternative that eliminates overdrafts — and the irritating fees that come with them. It’s called Chime, and it can help you avoid roughly $250 a year in overdraft charges on average.
If you receive at least $500 in monthly deposits, Chime will float you up to $100 when you slip up and overspend with your debit card. It’s a helpful safety net, and you simply repay it when your next deposit hits.
Sure, switching accounts feels like a hassle, but Chime has shown over 4 million people how simple it can be. It only takes a couple of minutes to open an account and say goodbye to overdraft fees for good.
2. You Assume Your 401(k) Will Be Fine Without Attention
It’s easy to get wrapped up in daily life, so many of us prefer not to think about retirement and assume our 401(k)s will take care of themselves.
Reality check: they won’t, and your investments might not be allocated appropriately.
Fortunately, an SEC-registered advisory firm called blooom offers a free review. Are you taking on too much market risk? Too little? Are you actually on track to retire when you want?
It only takes a few minutes to find out. blooom will also reveal any hidden investment fees you’re paying and estimate how much more your account could earn before retirement.
If you opt in after the analysis, blooom will manage and adjust your 401(k). Right now, Savinly readers receive a special annual rate of $95, plus $10 off with the code REEETIRE10.
Get a free 401(k) review to determine if your retirement savings are prepared for the future.
3. You Assume You’re Already Getting the Best Deal
When did you last comparison-shop for car insurance? Chances are you’re paying far too much with your current policy.
If it’s been more than six months since you checked rates, it’s time for another look.
Using a digital marketplace like SmartFinancial, you could find policies for as little as $22 a month — potentially saving over $700 annually.
It takes about a minute to get quotes from several insurers so you can view the top rates side-by-side. Yep — in just one minute you could pocket roughly $715 this year. That’s a significant amount of money back in your hands.
If you haven’t shopped your car insurance in some time, check current rates and see how much you could save.
4. You Assume Your Credit Score Will Recover on Its Own
We understand. It’s tempting to ignore your credit score. What can you do about it, right? It’ll fix itself eventually.
But the second you try to buy a house, finance a car or open a new card, you’ll wish you’d paid attention sooner.
Your credit score influences many major financial decisions, but improving it doesn’t have to be hard thanks to a free site called Credit Sesame.
In about 90 seconds, you’ll see your credit score, identify accounts carrying balances and receive tailored suggestions to boost your score. You can even uncover errors that might be dragging you down (one in five reports contains at least one).
Alex Martin, from Tampa, used Credit Sesame and boosted his credit score by nearly 300 points in six months.* “They walked me through the details — how to be meticulous,” he said.
Claiming your free credit score takes less than 90 seconds.
*LikeMartin,60% of Credit Sesame users experience an increase in their credit score; 50% see at least a 10-point rise, and 20% see at least a 50-point jump within 180 days.
Credit Sesame does not promise specific results, and some users may see a decrease. Any score improvement depends on many factors, including timely bill payment, maintaining low credit balances, avoiding unnecessary inquiries, sound financial planning and building better credit behaviors.
Finally, be mindful of dangerous financial assumptions you might be making — recognizing them is the first step to keeping more of your hard-earned money.
