Who Is Taking Your Money While You Sleep?

BY CLEVE DESOUSA

People lose massive amounts of money each year simply because they are not paying close enough attention to their finances. Here are some common things and places that might be taking your hard earned money while you sleep.

#1 – Your bank
While banks are a necessity for most people, they are not all created equal. In fact, some banks are downright notorious for drowning their customers in fees. From ATM and check cashing fees to account maintenance charges, taking some time to understand what you are being charged to use your bank is key. If the fees seem a bit excessive, shop around, and find a different bank or credit union that is more reasonable.

#2 – Your subscriptions
Most of us, at some time or another, signed up for a membership or started a free trial for something that eventually turned into a recurring charge each month. While it may not seem like a big deal in the short term, continuing to pay for subscriptions we don’t really use can add up. Make it a point to go through your spending statements each month and cancel anything that you are still being charged for but aren’t utilizing any longer.

#3 – Your investments
Many people sign up for an investment account to begin saving towards retirement or some other long term goal, but then neglect to check in on it regularly. This can cost you! While you don’t have to be a day-trader, you should make it a priority to review your holdings at least once each quarter and make any adjustments that might be necessary. If you hold assets that are not yielding you a return over time, consider swapping them for something else that will build your bottom line.

#4 – Your credit cards
Carrying a balance on a credit card can be one of the most financially draining things that a person can do. Most credit cards charge extremely high interest rates, and people end up paying way more than they bargained for. Do your very best to pay any credit card balance in full each month to avoid paying interest, and don’t use a charge card unless you absolutely have to.

#5 – Your insurance company
Insurance is a great thing to have, but many people go overboard and end up allowing their money to be slowly taken from them in the form of insurance premiums on policies they don’t really even need. Take time each year to review all of your insurance plans, to see if there is any redundancy. If your employer offers a life insurance policy, for instance, you may not need that term life policy too.

#6 – Your apps and games
In today’s society, downloading apps or games for a smartphone, computer, or other device is quite common. However, it is important to realize the financial draw that in-app purchases can have on finances. Even though the amounts seem quite small, and the hype of the moment propels you to want to buy an extra turn, weapon, or special in-game ability, remember that these things are designed to take your money and give you nothing much in return.

The bottom line
Gaining control of your finances and building wealth for the future often starts by trimming the fat. One of the easiest ways to do this is by eliminating the things that are literally taking your money from you while you sleep.