Vigilance in keeping tabs on your accounts

We all have accounts, various bank and credit card, retirement, and they all charge fees.  Some of these can be easily avoided.  If you don’t keep tabs on your accounts, at years end, you will find that you’ve spent a small fortune on…….just fees.  Money that can be put into your savings.

Banks charge fees if you don’t adhere to the accounts’ rules….this is irksome because it’s your money, and they are using it.  But, nevertheless it’s true.  So, be vigilant about checking to make sure you stay within the agreement you signed up for.  That means, keeping at least a minimum balance, no overdrafts, staying within deposit/withdrawal and ATM limits,  If you don’t keep a watchful eye, you are paying them fees to hold your money.  You can find a bank with no fees.

Some credit cards have an annual fee.  Tons do not, choose one of those.  Credit cards are fine if you use them properly…make purchases, pay in full before the due date.  Most cards have reward points, so that’s a bonus for you, but only if they’re useful to you. The fees come in to play when you carry a balance resulting in huge interest charges on the balance carried over until the next bill.  If you only pay the minimum or anything less than the full amount of the bill, interest is added to that remaining balance and carried over again.  Late fees show up if you are even one day late. If they have an ‘afternoon mail delivery’, that delivery is posted the following day.  So it’s late, even though it was physically received on the due date.  Lesson:  Pay in full, before it’s due.

Retirement Accounts are necessary to have for future living.  You can, in some cases, oversee your own accounts, but usually a Financial Adviser has more knowledge and time. And they charge a fee for this service, it is legitimate, and because you want to have a nice nest egg, you need to find the best one.  So in choosing, interview some, find one you trust and feel confident with since they’re handling your future.  Ask if they are a Fiduciary…some are not.  A Fiduciary is one who serves in your best interest.  If they are not, they will usually be receiving a commission to sell you something that may not be the type of account that best serves….you.  So check.

All this is called due diligence.  It’s doing your homework before you decide.