You might be surprised to learn that American workers, when compared to the rest of the industrialized world, actually work longer hours than most. In addition, we take fewer vacation days. And yet, we tend to retire at a later age. Why?
A number of factors are at play here, but we do know of one very large piece to the overall puzzle: More than three quarters of Americans live paycheck-to-paycheck, without a savings cushion, and 71 percent of us are in debt. We don’t have a “working problem” but we might be facing a crisis with spending (too much), and saving (too little). In other words, we need some help with our budgets.
Sticking to a budget can be difficult, especially living in a world that offers temptation at every turn. Separating wants from needs is a challenge, and on top of that we’re so busy with work that it can be easy to lose track of our budgets. So, most of us are wasting money each month, on unnecessary expenses. And the biggest ones appear to be…
Bank fees. Americans pay 17 billion dollars in bank fees each year. Some are unavoidable, of course, but careless errors trigger overdraft fees and insufficient funds fees. We also tend to stick with a bank even as they gradually increase their management fees, rather than contesting them or taking our business elsewhere.
Interest on credit cards. Would you believe the average household pays 1,292 dollars in credit card interest each year? Ouch! You could put that money to better use elsewhere, after you get out of debt.
Late fees. You could be wasting money each month on late fees. Each time you pay a utility bill late or forget to return library books and Redbox rentals, you’re paying more for a service than you really needed to. Those fees add up over time.
Accepting prices as they are. Before settling for the first price offered, take the time to comparison shop. You’ll save money on everything from insurance premiums to hotel prices.
Handling everything alone. If you do everything yourself, from taxes to retirement planning, the cost of missed opportunity can be great. You see a doctor for regular checkups, so why not seek a professional to check up on your finances? Make sure to meet with us regularly, because we can often identify opportunities that will help you stay financially healthy.
