10 Tips to Avoid Racking Up Hidden Costs and Save More Money

Hidden fees are those pesky, often overlooked charges that creep into transactions, quietly inflating your expenses across various services and products. They are practically everywhere: banking, telecommunications, travel bookings, and even your everyday purchases. When left unchecked, these costs can cumulatively burden your financial health, chipping away at your savings and adding unnecessary stress to your budget management.

Knowing about these fees and where they crop up is crucial. It empowers you to make informed decisions, ensuring that you’re not paying more than what you bargained for. By staying informed, you can maintain tighter control over your personal finances and avoid expenditures that can impede your financial goals.

In this guide, we’ll navigate through proactive strategies to help you identify and dodge hidden fees. From choosing the right banking services to managing your service subscriptions, each tip offers a practical approach to enhance your financial savvy and keep your savings intact. Let’s dive into these strategies and learn how to shield your wallet from these unwelcome financial surprises.

Choose a Bank with Minimal to Zero Transfer Fees

Money transfers, especially frequent or international ones, can incur hefty fees. So, opt for a bank that offers low or no transfer fees to keep your hard-earned money where it belongs—in your account.

Fortunately, it’s now easier than ever to find the best digital bank for your needs that offers free transfers and other money-saving perks. In particular, Maya allows you to transfer funds via PESONet for free. If you frequently need to transfer money, opening an account in this leading digital bank is definitely worth considering.

Be Aware of Your Bank’s Minimum Balance

Falling below your bank’s required minimum balance can trigger annoying minimum balance charges or overdraft fees. That’s why you should stay informed about your bank’s terms and ensure your balance never dips below the minimum.

Setting up alerts or maintaining a buffer in your account can help you avoid these unnecessary charges. An example is if you’ve set up an auto debit arrangement on your deposit or checking account. Regularly check the account to ensure it stays within the minimum balance. Alternatively, you can choose a digital bank like Maya that doesn’t require a minimum balance. This would eliminate the chance of getting charged overdraft fees altogether.

Don’t Let Your Bank Account Stay Dormant

A dormant bank account might seem harmless, but it can accrue monthly maintenance fees without your active use. In the Philippines, some banks may charge a maintenance fee for accounts that have been dormant for 2 years. That’s why you should keep the money in your account moving by scheduling small, regular transactions, like a recurring subscription or a standing order to a savings account.

Pay Your Credit Cards in Full Every Month

Carrying a balance on your credit cards is a surefire way to rack up interest charges. While it can seem like a small amount, the interest on the balance accrues steadily over time, making it harder each month to pay your debts. So, protect your wallet by paying off your balance in full each month.

When you use your credit card wisely, you can keep interest costs at bay and also boost your credit score—which makes it a win-win situation.

Shop Around for the Lowest Foreign Transaction Fees

For those bitten by the travel bug or who shop on international sites, foreign transaction fees can add a sour note to your spending.

If you’re determined to purchase items from abroad or if the products you’re looking for can only be found in international stores, use credit cards that offer low or no foreign transaction fees to save significantly on your overseas purchases or travel expenses. In addition, watch out for international non-bank ATMs with exorbitant transaction fees.

Pay Your Bills on Time

Late payments are not just a red flag for your credit health; they also come with late fees. Avoid these unnecessary costs by setting up automated payments or reminders to ensure you always pay your bills on time.

Skip Tipping If Restaurants Include Service Charges

In many dining establishments, a service charge may already be part of your bill, making additional tipping redundant. To avoid wasting money, review your bill carefully—if there’s a service charge, feel free to skip the extra tip unless the service is truly exceptional.

Check Hidden Fees When Booking Hotels and Flights

Travel expenses can balloon unexpectedly with hidden charges like resort fees or seat selection fees. When booking flights and hotels, always read the fine print and use booking sites or services that outline all their fees upfront.

Check for Unused or Unwanted Auto-Renew Subscriptions

Subscription services can be convenient, but it’s easy to forget about them once they’re out of sight, out of mind. Regularly review your subscription services and cancel any you no longer use or need. This simple audit can reclaim money lost to forgotten auto-renewals.

Watch Out for Data Roaming Charges and Other Telecom Fees

In our connected world, data charges, especially roaming fees, can lead to a surprisingly high phone bill. So, if you’re traveling, turn off data roaming and consider purchasing a local SIM card or a travel data plan. Additionally, review your mobile plan to ensure it matches your usage habits so you can avoid unnecessary charges. If necessary, downgrade to a cheaper plan or cancel the subscription altogether.

While hidden fees may seem insignificant, they do add up over time. Therefore, you need to implement strategies to safeguard your savings and financial future. Moreover, be vigilant about hidden costs because there’s nobody who will look out for your money better than you. (MCN)