You don’t maximize your savings account
If you’re only using your savings account to deposit your parent’s annual birthday check, you’re passing up the chance to save hundreds, maybe thousands of dollars a year. “If you don’t have a workplace retirement plan or are struggling to save money annually in other accounts, get direct deposit,” says Rogers. Decide on a reasonable amount from your paycheck and schedule its monthly transfer to your savings account. “You’ll remove the human temptation to spend that extra cash from your paycheck on something you don’t really need.” It won’t even affect your everyday life if you save money like this.
You’re not taking advantage of your flexible spending account
Putting your cash in a Flexible Spending Account (FSA) to cover for health care is great if you actually use it. “You must use the money on approved purchases or else lose it at the end of the benefit year. So, if you are only making small contributions to an FSA, consider if it’s worth the hassle to get the relatively small tax deduction,” says Rogers. The tax deduction will really mean something if you have something around the bend. After that, you should probably consider opening up an FSA. This is what you need to know about health care expenses that Medicare does not cover.
