While much attention is paid to saving money with coupons or in other areas, many people overlook the money that they throw away on unnecessary fees on a regular basis. Many people spend hundreds of dollars a year in fees that they do not necessarily need to pay. If you’re serious about saving money, cutting out the extra fees can go a long way towards that goal.
One area that people often throw money away on is bank fees. Banks charge fees for many different items that you do not necessarily need to pay for. For example, some people pay fees just so that they can have a checking account. Many banks offer free checking and you don’t even need to keep a minimum balance in your account. If you’re paying a fee to have a checking account, you should most likely consider switching to a free checking account.
Many bank customers also throw away money on NSF fees. When you write a check that overdraws your account, it is not uncommon for the bank to charge a fee to cover the check. This type of fee could be as much as $35. This problem can easily be solved by keeping a check register and making sure that you do not write checks for more money than you have at any given point. If you get in the habit of paying NSF fees, it can be tough to get out of it. You end up spending more money than you have on NSF fees and it eats up your paycheck quickly.
Many people who use credit cards also throw money away every year on unnecessary fees. For example, many credit card customers use credit cards that have annual fees attached to them. You could easily find a credit card that doesn’t have an annual fee and save that money instead. Some people also pay for payment protection with their credit cards. This is a program that involves paying a monthly fee to protect against not being able to make their credit card payment. If the cardholder becomes disabled or loses a job, the credit card company allows them to skip a few payments. This type of fee is usually not worth it as it costs much more than the benefit it provides.
If you’re interested in spending less money, take a hard look at the fees that you pay each year. You might be surprised exactly how much money you’re throwing away.