Learn how to spot and fix common money mistakes.

In our cars we have mirrors, cameras and driver-assist systems that help us avoid accidents. If only we had similar tools for avoiding money mistakes! Most—if not all—of us have experienced what might be called financial fender-benders. It cost us something but there was no long-term harm. Others have faced the financial equivalent of totaling a car. The monetary pain was severe and long-lasting. Either way, the way forward to financial health is to spot and fix your financial blind spots.

Did you set it and forget it?

With finances and recurring transactions, it’s easy to set it and forget it. Do you know the tally of your monthly subscriptions? You might be spending more than you realize. When’s the last time you evaluated your retirement savings? You might not be on track for retiring when you want.

Periodically review your finances. Modify your budget as income or needs or prices change. Review your income and expenses at least monthly. Are you saving money at a rate that will allow you to reach your goals? At least once or twice a year, look at your investment plan.

Ongoing awareness of personal finances will help you reach your goals as well as alert you of problems—or potential problems—before they grow.

Do you avoid looking at your finances?

For some people, the thought of looking at bills and credit reports fills them with dread. Others rely on a significant other to handle the household finances and shun money matters entirely. If you avoid finances, you’ll never have a handle on them.

Facing finances isn’t always easy but it’s not impossible—and you don’t have to do it alone.

If you have a partner, open a conversation about money. At the very least, you need an understanding of household finances in case your loved one becomes unable to manage them.

You can also take advantage of one of your Consumers member perks, free financial management counseling. The counselors at GreenPath can assist with everything from budgeting to avoiding financial hits like bankruptcy, home foreclosure or vehicle repossession.

What are your inherited money beliefs?

Many of our beliefs about money are rooted in what we learned while growing up. Was money plentiful or scarce in your childhood home? Did your family talk openly about money or avoid the topic? Do you equate money with status or shame? Many of us have beliefs inherited from our families that create blind spots for us as adults.

Think about your personal money story and what blind spots may have resulted. What were your first money memories? How do money matters make you feel? Identify your inherited money beliefs and examine if they are actually a blind spot.

Have you underestimated retirement expenses?

When we’re young(er) there’s time to recover from financial mistakes. In retirement, most of us don’t want to be looking for work and there’s a shorter horizon for investment growth. Yet, many retirees find themselves short of funds because they underestimated expenses.

Often, people overlook one or more of these costs in retirement:

• Travel expenses or the cost of other fun things they want to do
• Healthcare—supplemental insurance, co-pays and out-of-pocket expenses
• Long term care and/or long term care insurance premiums
• Taxes—on income and property
• Transportation—purchasing a vehicle in retirement or relying on paid rides
• A cushion for inflation
• Home repairs and upkeep, as well as modifications needed to age in place

Make sure your projections for retirement spending includes all of the above.

Not sure what your financial blind spots are?

It can be tough to identify our own financial blind spots, especially if we don’t have much experience with finances or we’re overwhelmed with life. Clues that you may have financial blind spots are if you struggle with or worry about money.

There’s more than one way to identify and eliminate your financial blind spots. One is to get a 360-degree of your finances. Document all transactions and income. Many people use tools like budgeting apps and spreadsheets for this task, but you can do it old-school with paper and pen. Two key advantages of using a digital tool are that you can make updates quickly and easily see how different financial scenarios play out.

Another way to approach financial blind spots is to talk with someone. A trusted and knowledgeable family, friend or a financial advisor can help you identify money mistakes you didn’t know you were making.