We all need to be more frugal with our money. Not only in cutting out unnecessary expenses and looking at the best interest rates on savings to actually put something away for the future, but not wasting money by making simple mistakes either.
Too many of us do it, and it’s too easy to do and it’s time to cut it out. Here are the money mistakes we can all do without.
Renewing with your existing car insurance provider
When it’s time to renew, it may seem a lot easier to go with the same provider, but you can save yourself a lot by shopping around. Go onto some comparison websites and ensure you are getting the best value for money in the market. According to figures earlier this year, the average amount people save by not simply auto-renewing is a staggering £384.64.
Exceeding your overdraft limit or going overdrawn without permission
Your overdraft is there as a safety net. But it’s worth remembering it’s not actually your money, with every penny of it needing to be paid bank to the bank. Whilst sometimes we can’t help falling into this safety net, if you do it without agreement or you exceed your limit you will be charged. Most banks will charge you a daily rate until you rectify it. It’s dead money you’ll never get back.
Not using your full ISA allowance
For the current tax year you can save £5,640 in a Cash ISA, without paying any tax on the interest. With an investment ISA, you can invest savings of up to £11,280 without any need to pay income or capital gains tax. This allowance can’t be carried over until next year therefore, if you have savings in other accounts but haven’t transferred them to you ISA to make up the yearly allowance, you’ll be losing out in terms of tax. An ISA should always be your savings starting point.
Missing a payment on your 0% credit card
There are loads of great deals on 0% credit cards out there. But don’t miss your minimum monthly payments, as if you do you’ll lose your 0% perk. Once the interest starts to kick in you could spiral into debt and a credit card is very expensive if the full monthly statement isn’t paid in full.
Not setting up a direct debit for your energy bills
By setting up a direct debit on your energy bills you’ll be offered deals by your energy supplier. This is because you’re effectively guaranteeing to pay them the money, rather than them issuing you a quarterly bill. If you over pay, you’ll get credit which will make your bills cheaper down the line.