Building wealth means building good financial habits, like budgeting and paying your bills on time. But what about the things that affect your money behind the scenes? Are you sure you’re accounting for every penny and avoiding leaving money on the table, or there a disconnect?
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If there is, it’s usually easy to pinpoint where it begins: your bank. It’s an old saying, but if you picture it quite literally — closing the door behind you with heaps of cash left on the table — the reality of not being on top of your finances hits hard.
To help you identify your best banking habits, GOBankingRates connected with two experts: Sumeet Grover, executive vice president at Alliant Credit Union, and John Jordan, head of retail banking at Regions Bank. According to them, here are some key signs you have room to improve.
At first glance, a flush checking account may seem like a sign of wealth, especially if you struggled in your younger years. However, keeping all your money in a checking account means you’re missing out on opportunities to grow your funds through interest.
“For starters, if you have more than a couple of months’ worth of living expenses in your checking account, you might be missing out on higher interest rates available in savings accounts or other investments,” said Grover. “Regular savings accounts often offer very low interest rates. Switching to a high-yield savings account can significantly increase your earnings on your savings.”
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Monthly fees might seem like minor inconveniences, but they can add up quickly. Grover advised that you monitor the fees you incur, such as maintenance fees, ATM surcharges, and overdraft charges.
You should also look for accounts that offer fee waivers or reimbursements. Paying attention to fine print and choosing a fee-free bank account — or one that waives fees if you meet certain requirements, like direct deposit — can save you hundreds of dollars annually.
Beyond reducing fees, you should also be on the lookout for ways to earn rewards from your everyday spending.
“If you’re not using a credit card offering cash back or other rewards, you could miss out on valuable benefits,” said Grover. “By addressing these habits, you can make your money work harder for you and avoid leaving money on the table.”
