I’m a Bank Teller: 8 Seemingly Harmless Things You’re Doing That Hurt Your Wealth

Money management can be boring. Paying bills , shopping for necessities, paying off debt and managing the day-to-day of your finances is simply monotonous.

But while you might think you have a handle on your money, there are small things you could be doing that hurt you financially. GOBankingRates chatted with banking and financial experts to get their insights in seemingly harmless money moves that can have a massive impact .

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8 ‘Harmless’ Money Moves That Destroy Your Wealth

Here are a few things that could be hurting your bottom line that you might not even notice (and how to fix them).

Not Reviewing Insurance Policies Regularly

Insurance can be expensive, and taking a “set-it-and-forget-it” approach to your insurance policies can actually be costing you a lot.

“Many people lock in policies and never revisit them, paying higher premiums than needed,” said Marty Burbank , estate planning attorney. “I review all policies annually to ensure proper coverage at the best rates. For example, one client saved over $3,000 per year in premiums after we restructured their life insurance.”

This approach to your insurance policies can help you save money and ensure you always have the right coverages in place.

Learn More: 5 Unnecessary Bills You Should Stop Paying in 2024

Using the Same Financial Advisor for Decades

Hiring a financial advisor to help direct your money and protect your assets can be helpful, but it is something you should review regularly. You may be doing more harm than good by sticking to the same advisor.

“While loyalty is admirable, financial services evolve rapidly,” said Burbank. “I’ve seen advisors recommend outdated products with high fees, costing clients thousands in lost opportunity. Get a second opinion from an independent advisor every three to five years.”

While reviewing your investment plan with an independent advisor, it’s important to ask about their investment approach and how they are compensated. Make sure to work with a licensed financial advisor that only acts as a fiduciary to make sure you are getting unbiased advice.

Focusing Only on Returns, Not Fees

While getting high returns on your investments is a good thing, they can be reduced drastically with high fees. When picking a financial advisor or investment product, make sure to understand how much you’re being charged and how that affects your overall net investment returns.

“High investment returns mean little if fees consume most of the gains,” said Burbank. “I analyze all fees charged to clients to optimize their net returns. For example, moving one client from high-fee actively managed funds to low-cost index funds added 0.75% to their annual return.”

And while a 0.75% fee might not seem like a big deal, compounded over decades it can cost tens of thousands of dollars — or more.

Not Having an Emergency Fund

Setting aside funds to handle life’s little “surprises” can help you avoid financial disaster. While investing is a powerful tool for building wealth, so is having some protection in the form of a cash emergency fund.

“Emergencies happen, but few save enough to cover them,” said Burbank. “I recommend all clients have three to six months of essential expenses in an emergency fund. One client endured a job loss but avoided debt because they had funds to cover essentials until re-employed.”

Building a large enough emergency fund to cover major repairs, job loss or medical emergencies can help you avoid using high-interest debt to cover unexpected expenses.

Getting a High-Yield Savings Account

If you have an emergency fund or other cash savings accounts, it’s a good idea to earn some interest on that account. But while regular savings accounts offer a small amount of interest, a high-yield savings account might offer 10 times the interest — with the same account protections and access.

“Rather than leaving cash in your checking account earning little interest, I suggest investing it for potentially higher returns,” said David Brillant , a tax, trust and estate lawyer. “One client earned over $5,000 in interest last year by moving excess cash into an online high-yield savings account with a top rate of 1.9%. She was able to access her money anytime but earned 20 times more than with her regular bank.”

High-yield savings accounts are FDIC-insured up to $250,000, just like your regular savings accounts. But as of 2024, some pay up to 5.00% APY, which is more than 10 times the national average. You can earn more interest and keep your funds safe at the same time.

Not Automating Your Bills

Automation can help you save time and money. Most bills can be paid online these days, and setting up autopay ensures you always pay your bills and they might even come with a discount.

“Paying bills manually each month wastes time and risks missed or late payments that trigger fees,” said Brillant. “I set up automatic bill pay for all my utilities, insurance premiums and loan payments. Not only does this save time, but clients have avoided thousands in late fees by ensuring bills are paid on schedule.”

Keeping an Eye on Your Bills

Mistakes are an unfortunate reality when it comes to bills. Whether it’s an extra charge on a utility bill or being overcharged for a service, it’s a good idea to review your bills regularly. The same goes for your bank and credit card statements to make sure there are no issues.

“Many people neglect to review bank and credit card statements, missing errors or fraud,” said Brillant. “I recommend checking statements monthly for any unauthorized charges or fees. One client found her card number had been stolen [and] report[ed] it immediately to avoid liability for over $4,200 in fraud charges.”

Use Multiple Bank Accounts

While it may feel more simple to use one bank account for everything, it could be costing you. Instead, consider setting up multiple bank accounts for different areas of your financial life.

“Rather than spending more with each salary increase, have your paycheck directly deposited into multiple accounts for essential expenses, saving and fun money,” said Brillant. “Several of my clients pay themselves first by automatically transferring money each month into savings and investment accounts. They find they spend less and save more without even noticing.”

This article originally appeared on GOBankingRates.com : I’m a Bank Teller: 8 Seemingly Harmless Things You’re Doing That Hurt Your Wealth