10 Ways You’re Secretly Losing Money (2024)

Optimism is great, but a smile won’t help you save money.

According to a recent poll from the National Foundation for Credit Counseling, 56 percent of respondents predicted that they will be in a better place financially by next year.

But of course, “feelings are not facts,” says Gail Cunningham, spokesperson for the NFCC. “Financial decisions need to be based on financial facts. Avoiding reality can be dangerous.”

Here, money experts—from billionaire investors to LinkedIn career advisors—give you free advice for financial success.

“Once you identify the empty calories in your budget, you’ll feel better and more focused.” If you don’t know your monthly spending, saving for the long-term is virtually impossible.

Related:10 Ways to Make Easy Cash

Track every single expense—from parking meters to rent—for three months.

“Spending habits can only be seen over the 90-day period,” says Kevin O’Leary, an investor on Shark Tank and author of The Cold Hard Truth on Men, Women & Money.

“It’s sort of like a litmus test for good and bad habits.” Once you identify the money-sucking holes, readjust accordingly.

One in five people think that carrying credit card debt over from month-to-month is a responsible way to manage finances, according to a 2013 report from the NFCC.

Start paying off plastic with the highest interest, then modify your lifestyle by a quotient of 30 percent. Meaning: Instead of buying lunch three times a week, eat out only once, and brown-bag the rest.

On average, it takes about two to three years to bring your balance to zero. Create a long-term plan to curb spending.

The Fix: Sure, your closet seems reasonable compared to your girlfriend’s, but that doesn’t mean you need another hoodie.

“Chances are, you only use 10 percent of your wardrobe,” says O’Leary. “That means 90 percent of the time, you burn money on something that depreciates in value.”

Instead of going crazy during sales, focus on a few quality investment pieces. Always ask yourself, “Do I really need that?”

Related:7 Cheap Tools That Will Keep Your Clothes Looking New

And, since this negative image mars your financial history for seven years, you could end up paying thousands of dollars for poor interest rates on car loans and your mortgage.

Don’t miss another due date with Mint (free for iOS, Android, and Windows 8), an app with 20 alerts, including bill deadlines and fee notifications.

The Fix: Disagreements over dough can be disastrous for a relationship.

In fact, according to a finding by the National Marriage Project, couples with no assets are 70 percent more likely to divorce than couples with $10,000 in assets.

“It’s critical to talk about your partner about short-term goals, such as a vacation, and long-term expenses, like retirement,” says Romans. “If you’re just starting a relationship, it’s absolutely appropriate to casually bring up student-loan debt by the third date. Be honest about your financial woes and be kind to your partner’s.”

Hiding debt is as bad as resenting your spouse’s purchases. Clear the air from the start.

Related:5 Relationship Problems Therapists See Over And Over Again

The Fix: Yes, the economic uncertainty makes you feel lucky to even have a job, but that doesn’t mean you should work like a mouse.

“Money always trades for money,” says Nicole Williams, LinkedIn career expert. “You deserve a raise if you’re saving or making the company money.”

Before you ask for a promotion, deliver peak performance for at least 30 days prior—ideally, talk to your manager on the tail-end of a successful project and always back your case with data.

Whether you brought in three clients or work 12-hour days, highlight the numbers.

Raises typically fall between 2 and 3 percent, but you can bump up your salary by as much as 10 percent by switching jobs or moving departments, adds Williams.

The Fix: Warren Buffet once said, “Investing is laying out money today to receive more money tomorrow.”

If you do one thing, work the retirement savings plans like a Roth IRA, which grows tax-free and is withdrawn tax-free, or a 401(k).

Use Bankrate’s 401(k) savings calculator to determine how much you need to contribute for a comfortable retirement. “When investing, don't follow what everyone else is doing,” says Patrick Robert, CEO of PKR Investments in St. Louis, Mo.

“Putting money in areas that everyone else says is the ‘smart’ place to invest means you are already too late and the upside to your investment is limited.” In other words, buying shares of Apple won’t make you a millionaire.

“Be a leader and look into companies with strong fundamentals, fair valuation, and signs of long-term growth,” suggests Robert.

Track your net worth with Personal Capital, a free online tool that monitors everything from your portfolio to loans to checking accounts.

The Fix: Even if you hold out on getting an iPad for your 10-year-old, forking over $5 for every Rainbow Loom band refill can stifle your savings.

“Even small expenses add up over time, causing additional strain on the household budget,” says Scott Gamm, family finance advisor for H&R Block Dollars & Sense and author of More Money, Please.

Explain to your kids how these expenditures affect the family’s bottom line. For instance, a $400 PlayStation 4 costs more than a three-night Disney cruise to Bahamas. You decide.

Related:Never Do These 8 Things in Front of Your Kids

The Fix: A financial catastrophe can come in the guise of a job loss or a broken leg and it will wreak havoc on all your diligent savings, if you don’t leave a cushion for unexpected expenses.

“Sock away 10 percent of each paycheck into a rainy-day fund,” suggests Cunningham. “At the end of a year, it will total more than one month’s income, enough to cover most short-term emergencies.”

The Fix: You’ve been responsible all year long, then—cha-ching!—splurge all through December.

Men spend almost $800—including $500-plus on gifts—during the holidays, according to National Retail Federation. Start putting away around $80 each month and you won’t end up with naughty credit card debt.