This stupid money mistake can slowly drain your bank account


It is essential to closely monitor your bank account activity as it can help you spot unauthorized charges and unusual activity. Another reason to do this is to track your spending so you can see where your money is really going. If you don’t keep a close eye on your regular spending, you could end up paying for products or services that you no longer need. You might also forget some of your daily expenses.

When was the last time you took a hard look at your spending? If you don’t do this regularly, you risk forgetting your recurring charges, which can cost you money and drain your bank account. Read more on how to avoid this stupid mistake.

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Forgetting about recurring expenses can cost you money

Recurring charges are expenses that are automatically billed at a set time. You can easily set up automatic payments for regular bills like your rent or mortgage and phone bill so that you are automatically billed on a recurring basis.

You may also have other expenses that incur recurring charges. Expenses like meal delivery subscriptions, streaming services, gym memberships, online storage, software subscriptions, and premium phone apps are often automatically billed monthly or annually. The lower the load, the easier it can be to forget about the expense because it is less noticeable than some larger expenses.

If you choose to pay an expense annually instead of monthly, you can get a cheaper rate. But since charging doesn’t happen often, you can forget about it until the next year. If you are not yet using the product or service, it may mean that you are forced to pay for something that you do not need.

Some consumers sign up for free trials as well, but most companies require you to enter payment information before signing up. That way, they can automatically bill you when the free trial period is over. If you forget to cancel the free trial before it ends, you will be forced to pay because the company already has your payment information.

Tips for avoiding paying fees for services you no longer use

If you want to avoid emptying your bank account and paying for products and services you no longer use, here are some steps you can take:

  • Monitor your spending regularly. Regular monitoring of your expenses has many advantages. It can help you stick to a set budget. You can also get a better idea of ​​how much money you are spending each month. But it can also serve as a reminder to know where your money is going. Go through your bank account several times a month or view monthly statements.
  • Mark all automatic charges on a calendar. As soon as you sign up for a new product or service with automatic billing, mark it on your calendar. This way you can anticipate the next invoice date. If you enjoy using the product or service, so much the better! But if you don’t use it anymore or don’t like it, you can cancel your subscription and avoid being charged.
  • Use a credit card. Tying automatic payments to your bank account can be dangerous, as an unexpected charge can drain your funds and put your account in negative. When setting up automatic payments, link a credit card instead. This way, your cash flow is not directly impacted. If mistakes do occur, credit card charges can be easier and quicker to dispute than bank charges. If you’re in the market for a new credit card, take a look at this list of the best rewards credit cards.

Keep tabs on your spending and don’t forget about recurring payments. You can avoid being overcharged or spending more than you planned by regularly monitoring your spending. For more money management suggestions, check out these personal finance resources.

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