Wednesday, October 21, 2009

In this week's Money Matters: There are some daily routines we all do that can wind up costing us bug bucks in the long run.

Laura Rowley at Yahoo Finance says there are things people do that wind up costing them money.

1. Tossing out the "junk mail" from your credit card company. The Credit Card Holders Bill of Rights Act goes into effect in February. Ahead of that companies are changing the terms of customer agreements. Watch
out for a fine print notice that says your credit card is being changed to a variable rate card. If that happens demand a fixed rate card.

2. Using a debit card without writing down the transactions in your account register. People often lose track of how much they're spending and overdraw their accounts.

3. Investing time in the wrong things. Maybe you'll spend 45 minutes on the phone protesting a $3 error but when you start a new job you wont spend five minutes signing up for a 401-K plan. Making a weekly list of your financial decisions and then prioritize the biggest bang for the buck.

4. Spending with no goals to guide you. If you're earning and spending but aren't making any progress over time then you need to set specific spending goals with real frames to achieve them.

5. Failing to exercise. Daily physical exercise lowers the risk of a multitude of ailments, which can cost a lot of money in the long run, even if you have health insurance.