7 mistakes you’re making with your money (2024)

Often, the biggest mistake we make with money isn’t what we do with it - like buying those shoes that never quite fit. No, the biggest money mistakes are the things we don’t do.

Being passive with your money, paying direct debits for services you no longer need, leaving your cash in stale savings accounts and not checking in on the interest you’re paying, will all cost you more than a rogue shopping trip. Here’s how you may not be making the most of your money and what you can do about it.

Keeping up direct debits you no longer need

Still paying insurance on a phone you stopped using in 2009? Or maybe you’re paying for Spotify but are really a Radio 4 fan. It's time to do a direct debit audit. Go through everything that leaves your account every month and, if you don’t need or love the service, cancel it.

Getting your travel money at the airport

Exchange rates at airports are rarely competitive, so if you plan on taking foreign currency with you – for that taxi or much needed coffee when you first arrive – plan ahead and look for a good rate from a bank or bureau de change.

Make sure they have a buy-back service and never again will you have to run around a small provincial airport trying to work out whether the currency you have left over is best spent on a foundation that doesn’t quite match your skin colour, or a single enormous Chupa Chups. For competitive exchange rates on the high street, try the M&S Bank Click & Collect service - you can pick up your travel money while you're in-store grabbing those last minute holiday essentials. M&S Bank customers can also use their card to access preferential exchange rates.

Paying credit card interest of more than 0%

One of the biggest money drains is credit card interest. It adds up and can make it harder to get on top of things and pay that debt down. Transferring your credit card balance to a card with a 0% fee is so quick, it can be done in the ad break of Derry Girls. Just remember to make the minimum repayments each month.

Leaving money in low interest savings accounts

The rate of inflation currently stands at 2.1%, so if your money isn’t earning that in interest, it will be worth less as the years go by. You need a savings account with a rate higher than inflation, like the M&S Monthly Saver, which is available with the M&S Current Account. The M&S Monthly Saver offers 5% AER/gross interest when you save between £25 and £250 a month for 12 months.

Forgetting long lost accounts

Okay, it may be wishful thinking, but maybe you moved jobs years ago and you’ve lost track of that pension, or perhaps you have an old savings account with £200 sat in it. Use the government’s pension tracing service and the My Lost Account site to hunt that cash down.

Ignoring the rewards

Credit cards and bank accounts often come with rewards. You should find out what your current cards and banks offer – a quick phone call to your provider will tell you. Make sure you’re taking advantage of them - if your current account offers free mobile phone insurance, there’s no reason to have another policy with your phone provider.

If the rewards your credit card or current account are offering aren’t good enough, then switch to one with benefits. If you were to switch your current account to M&S Bank, for example, and stay for 12 months, you’d get a £180 M&S gift card.

Waiting to be brilliant

Waiting to be the kind of person who cancels direct debits or shops around for the best currency rate isn’t a plan. We often have the misguided idea that as we get older, we’ll become more sensible and love admin. You won’t. Being good with money isn’t an innate thing; it takes time and a little bit of admin. So, accept that transferring credit card balances and changing to the right bank may be a little boring, but will ultimately leave you with more money for fun things - like shoes that fit.

Find out more about M&S Bank and how you can earn rewards to use in-store online