You may be spending money without even realizing it. Even if you think you have a handle on your spending, it’s important to pay attention to where every single dollar goes. Hare are some money leaks that can really add up and affect your budget
Leaky Bank Accounts
Without knowing it, your bank account could be losing money from “hidden fees. While banks need to make a profit to stay in business, they’re making billions of dollars charging bank fees that can add up to quite a bit of money going out of your pocket and into theirs. “Sneaky” bank fees include:
- Overdraft sweep fees
- Balance transfer fees
- ATM fees
- Foreign transaction fees
- Cash advance fees
Many banks also have minimum balance and activity requirements that come with fees should you fail to meet one of them. If you’re having any of these issues on a regular basis, you should consider switching to a bank account that will provide you with the protection that you need while safeguarding your money.
If you suspect your bank account is costing you money, start keeping a closer eye on your bank statements. Are you prioritizing convenience over spending? Are fraudulent charges popping up?
Other Money Leaks
Bank account fees aren’t the only ways you could be leaking money. Signing up for free trials such as a new streaming service or a trial subscription to a magazine can get you into trouble, as well. If you forget to cancel the service or subscription before the free trial expires, that company has the right to automatically charge your credit card.
Forgetting to pay your credit cards or utility bills on time or carrying a balance on your card(s) from month to month is financially detrimental. The late fees and all the interest that racks up can have a negative impact on your budget.
You work hard for your money, so you don’t want to give it away without knowledge or consent. If you are unsure about your financial situation, it may be time to consider working with a financial advisor to help you get back on track. As a fee-only fiduciary and financial advisor in San Diego, Blankinship & Foster offer clients in-depth and proactive financial planning.
Fixing the leaks
If you’re finding that you’re consistently behind schedule in paying your bills and credit cards or are just making the minimum payments on your credit card accounts because you don’t have quite enough money to cover these expenses, it’s a good time to re-evaluate your budget. In order for you to have long-term success with a budget, it needs to be realistic as well as accurate.
A Certified Financial Planner practitioner (CFP®) or Chartered Financial Analyst (CFA®) like those we have at Blankinship & Foster, located in Southern California, can provide budget advice and help with budget planning.
That extra money can do more for you
Working together with a financial advisor, you’ll take a comprehensive look at your current financial situation by assessing your income, assets and debt. Your advisor will use this information to create a financial planning roadmap so that you will meet your financial goals to save more, invest that extra money or reduce your debt.
By working with a financial advisor at Blankinship & Foster, you’ll learn to become a better money manager and stop those leaks of your hard-earned money.