I’m obsessed with saving money. Here are the biggest mistakes I see people making

Are you making mistakes when it comes to saving for your future? One Reddit poster thinks you may be. The poster explained that he is a “massive savings nerd,” and that he sees people doing the wrong things with their money all the time.

So, what are some of the big errors the poster says people make regularly? Is he right about these money mistakes? And, how can you stop making them, if they actually are affecting your financial future?

These are the top money mistakes you may be making

The Redditor is absolutely right about some of the money errors he identifies. Specifically, he’s correct that far too many people cost themselves money by:

• Overpaying online: The original poster (OP) explained that people often just shop at the big box stores by default, leaving these stores no real incentive to compete on price. If you’ve ever just ordered something from Amazon or Walmart without looking around online to see if it’s cheaper elsewhere, you’re probably guilty of this. One way to avoid it is to install an online app such as the Capital One shopping app or ShopSavvy. These apps can alert you if something you’re buying costs less elsewhere. Although the OP didn’t mention it, it’s also worth looking for a coupon code before you check out online. The Honey app can help you find one. 
• Not hiring a financial advisor: The OP explained that good financial advisors can do more for you than you think, including helping you to come up with a tax-advantaged investment strategy. He’s absolutely right about this. Advisors go beyond the basics to help you in all sorts of ways you may not think about, including finding ways to clarify your financial goals and make a clear path to fulfill them. 
• Using the wrong savings accounts.  Far too many people sign up for a basic savings account with their bank, and the OP believes they are leaving money on the table by not finding a high-yield savings account paying a competitive rate.  He’s right about this too, as the national average savings account rate is 0.41% while many high-yield accounts pay upwards of 4.00%. 
• Paying too much for auto insurance. The Redditor says you should switch auto insurers around once a year to get the best rates because many companies offer discounts to new customers. That may not be the best move, because some insurers also offer loyalty programs that can help you save if you stay. You do, however, want to shop around and compare prices at least once a year to see if you can get the best deal. 

So, the OP was right about four out of his five suggestions. His fifth suggestion, however, advised working with a debt relief company if you owe a lot of money. Unfortunately, this is usually a bad idea because these companies can charge a lot of money for things you can do anyway — like negotiating with your creditors to enter into a payment plan when you’re falling behind. They can also do a lot of damage to your credit score. 

Avoid making money mistakes

Following some of this advice makes good sense, but the reality is that almost everyone makes some mistakes with their money that cost them. The advice you read on the Internet only goes so far in fixing this situation, and the best way to ensure you’re optimizing your finances is to get a financial advisor to help.  An advisor can work with you to determine what’s working — and what’s not — when it comes to your money management so you can make the most of your hard-earned dollars. 

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