Okay, be honest. When was the last time you went through your bank and credit card statements with a fine-toothed comb? If you’re anything like me—or, in all likelihood, the majority of consumers—it’s probably been a while.
This phenomenon is apparently called the “ostrich effect”—most of us would rather stick our heads in the sand than figure out where our money is really going. But it’s really a fear we need to get over if we hope to get the most out of our hard-earned cash.
This blog post outlines some of the merits of getting over the “ostrich effect”. Once the writer worked up the courage to closely examine months of bank and credit card statements, she was able to understand where her money was going—and where she could potentially save. In many cases, she was wasting money on unnecessary (and spontaneous) purchases and fees.
There are likely a few places where you could painlessly eliminate expenditures from your financial diet. Maybe there’s a no-fee bank account you could switch to—or maybe you could benefit from setting up reminders to pay your credit card balance off in time. The money you could save could then be applied to other areas of your life—like getting your mortgage paid down sooner. The thing is, you’ll never know until you take a good, hard look at your finances.
So what are you waiting for?