The biggest money blunders we all make

We all make mistakes. But here are 10 to try to avoid....

Unless you happen to be a super-intelligent dog or cat, I’m pretty confident that everyone reading this article is human. And however much we like to believe we’re perfect, sadly, we’re all prone to making a few mistakes in life.

Here, I’m going to reveal what 10 of those blunders are (regarding your finances) to help ensure you never make them again!

1. Never reading the small print

We’ve all done it – yes, even you. We’ve applied for a savings account, current account, credit card, and ticked the little box to say we’ve read the terms and conditions when we clearly haven’t.

Reading the small print seems to be dull, boring and a waste of time. But it’s not. Well, okay, it’s dull and boring, but it's certainly not a waste of time. That’s because hidden away in that teeny tiny print are all the catches you should be aware of.

Fail to read them, and you could end up getting caught out and losing money because you didn’t realise you’d be penalised for withdrawing money from your savings account, for example.

2. Writing down your PIN

Put your hands up if you’ve ever been guilty of writing down your PIN for your cards. Yes, thought so.

These days, we have to have so many different passwords and PINs for all of our different accounts, it can be tricky to remember them all. As a result, the temptation is to simply write them down on a piece of paper.

However, if you do this, not only do you increase the chance of becoming a victim of card fraud, many card providers are likely to refuse to pay compensation if they can prove you didn’t keep your details secure.

So don’t do it! Similarly, don’t make your PIN something obvious such as 1234 or your birthday.

3. Accepting the insurance renewal quote

There never seems to be enough time in the day. So when you receive your renewal quote for your car insurance, home insurance, travel insurance, it’s far easier to simply accept the quote and get on with your day.

But if you do this, it’s very unlikely you’ll be getting a good deal. That’s because most insurers don’t reward you for your loyalty and in fact, they have a habit of increasing premiums for existing policyholders instead.

So make sure you shop around using the lovemoney.com comparison centres to find a cheaper deal!

4. Not having insurance

Simply not having insurance in the first place is even worse than the above. Whether it’s car insurance, life insurance, travel insurance, or home insurance, if you go without, you could find this comes back to bite you!

In the long run, you could end up having to fork out a lot more than if you’d just paid up in the first place.

5. Forgetting about your retirement

Retirement might feel like a very long way off and you might think you’ve got plenty of time to prepare for it so you can worry about it later. But the sooner you start to think about it, the longer your investments will have to grow.

So if you haven’t started a pension yet, or you’re paying very little into it, it’s time to sort it out once and for all! Find out more in Become a pensions expert in five days.

Even if you’re planning to use your ISA or property instead of a pension to support your retirement, don’t leave it too late.

6. Not making a Will

Similarly, no one really wants to think about dying. But if you have dependents, making a Will is really important. Making a Will is the only way to guarantee the family you leave behind are properly provided for.

For tips on how to make a Will, read Watch out for this Wills scam and check out our how to guide.

7. Staying loyal to your bank

This is another mistake many of us are prone to making. Many of us have been with the same bank for as long as we can remember. And it’s so much easier just to stay put rather than transferring money over to another bank.

But by doing this, you won’t be getting the best deal. Banks are not in the habit of rewarding their loyal customers, and more often than not, the best deals are given to new customers only. So whether you’re after a better savings account, current account, or credit card, always shop around fully to see whether you can get a better deal elsewhere.

8. Never complaining

Personally, I love complaining if I’m not happy about something. In fact, it’s one of my hobbies! But for many of us, complaining is something we never get round to doing.

However, if your bank, energy provider, insurer or any other company has treated you unfairly, you have a right to complain and get your money back! You can read about how to do this in How to fight the big boys and win.

9. Paying interest on your debt

Much of this again comes down to laziness. So if you’re paying interest on your debt – whether it’s an overdraft or a credit card – stop! Shop around for an interest-free deal instead.

If you regularly dip into your overdraft, there are plenty of interest-free overdrafts to take advantage of – as you find out in The overdraft scandal.

And if you’re after an interest-free credit card, read 20 top balance transfer cards and The best credit cards for spending.

10. Withdrawing money on a credit card

Finally, never be tempted to withdraw cash on your credit card. That’s because you’ll usually be charged a withdrawal fee of around 2.5% of the amount withdrawn (minimum £2.50), and you’ll also start paying interest from the date you’ve withdrawn the money. What’s more, the interest you'll pay is often at sky-high levels (usually close to 30%!). So don’t do it!

More: Save £2,011 in 2011! | Obliterate your money worries forever this year