Our $1000’s Of Dollars Mistake: A Lesson Learned
My wife, Suzie, and I have just uncovered the biggest financial oversight mistake we've probably made in a very long time.
Since entering retirement, we have been reorganizing our everyday finances, including consolidating our two separate current accounts (a checking a/c without a checkbook) into one for the majority of our recurring bills. During this process, we realized we were paying for three mobile phone plans, two coming from my wife's account. It turns out Suzie had always assumed my plan was taken from her account. After tracking backward, we discovered this has been happening for over 5 years and has cost us many $1000s in charges. We are currently in talks with the mobile operator's fraud department.
But this got me thinking…again! What other small, overlooked expenses can have a regular, unnoticed drain on our finances?
Our recent discovery concerning the mobile phone plans highlights anl area many of us may neglect: recurring subscriptions and forgotten memberships. Beyond duplicate phone plans, we should consider streaming services (such as Netflix, Disney+, or Spotify), unused gym memberships, software licenses, or even magazine deliveries that are no longer read. Many services frequently offer an initial "free" trial that subsequently converts automatically to a paid subscription; these charges can accumulate over long periods.
Based on our experience, here is a practical approach to identifying and stopping these drains: Thoroughly examine all bank and credit card statements for any recurring payment. Create a simple log: service, purpose, cost. think if it's truly needed. Consolidate recurring bills to a single, actively monitored account. This makes detection easier. For annual subscription , set calendar reminders a month prior to renewal. This allows for re-evaluation and price comparison. Make it a routine to meticulously review all financial statements.
Another easy trap to fall into is once a direct debit is established, it often slips our mind, even if the service is no longer used. It's a good idea for couples to communicate openly about bills to prevent duplicates or overlooked payments. Don't dismiss small monthly charges. These can compound over time into large amounts. Don't forget credit card statements. Subscriptions often hide here, not just in current accounts. I, for example, have a free music streaming service trial coming to an end soon. This is another area to be mindful of to check because they can slip your mind. Set up reminders to give you the option to cancel.
Suzie and I consider ourselves to be very organized and on the ball with finances. This discovery has been a wake-up call that even a savvy person can make simple errors with money matters. In fact I recently read an article on this site about these issues but I think it's worth mentioning it again: The key takeaway? Be vigilant and communicate between yourselves.
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