There’s no denying the fact that Americans don’t save enough for retirement. The real question is why?
Living beyond your means is obviously one contributing factor, but what else accounts for draining this cash and putting your savings on the back burner?
The answer: FEES…
New research estimates that people pay more than $300,000 in feesthat they accumulate over their lifetime!
With that kind of money back in your pocket, you could easily reinvest it and completely finance your retirement. Whether you realize it or not, your likely a victim of these sleazy fee charges as well, but you don’t have to be!
Here’s are some easy ways you can STOP wasting this money and START using it to save for the future instead.
You may be curious as to how so many people manage to be taken advantage of by these fees time and time again.
A recent survey shows that the average person believes they’re paying no more than $2,000 in lifelong fees. So, what explains the remaining $298,000 that’s unaccounted for?
These charges often go unnoticed simply because they’re hidden behind the fine print and unrecognizable unless you’re actively searching for them.
But exactly what kind of fees are we talking about here?
The most common fees are found within investments, banking accounts and credit customers. Money management charges, late fees and accumulating interest can all add up to eventually grow into this $300k I previously mentioned.
I know what you’re thinking and if you believe these fee charges don’t apply to you, then think again…
Studies show that approximately68% of American adults are impacted by these unexpected fees on a regular basis! The odds are that these recurring fees are pulling money from your savings as well. Still, there’s no reason for you to exist in this majority.
One way to avoid these late fees is to search for the “no-fee” option when you’re shopping for a new checking account. Remember, you’re not only limited to the “big name brands”. Local banks and credit unions offer plenty of account options that are just as good and fee-free.
Staying on top of credit paymentsis also another great place to start. Interest fees are arguably the most damaging in the world of fees. People get carried away with their spending and before they know it, they’ve built up credit debt that’s out of their league.
Don’t let this be your downfall when it comes to saving money!
Always aim to pay your balance in full, not the minimum, in order to dodge incurring any fees. This is a vicious cycle that just builds interest over time.
Finally, check expense ratiosof any mutual funds, IRAs or 401(k) plans that you buy into. As you probably guessed, the best ratio is zero, but anything close to it will do.
These fees do nothing more than chip away at your hard-earned savings and accumulate to more than a quarter million in cash over the course of the average American’s lifetime.
Apply these tips, skip out on the fees, and funnel the cash you save into a retirement account.