Instant Alert: 5 things you're probably doing wrong with your money

MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE   5 things you're probably doing wrong with your money by Cheryl Lock on Dec 2, 2015, 2:00 PM Advertisement We’re sure you’re doing a great job with your money — making payments on time, looking out for any fraudulent activity, and putting money into a retirement account. That’s all great. Still, there are probably just a few areas of your personal finance situation that could use some work. We want to help. Our team at MagnifyMoney has been working in and writing about finance for a long time. Here are our top tips on some things you might be doing wrong, and what to do instead. SEE ALSO: I used a simple credit card trick to dig out of debt when I couldn't pay my bills 1. You’re carrying a balance on your credit card to build your credit score. This is one of the biggest myths out there, says Erin Lowry, content director for MagnifyMoney and founder of Broke Millennial. Carrying a balance on your card each month — and paying interest on it — isn’t necessary to help your score. If you’re looking to build your credit score without paying a penny, you need to do things like keep your utilization rate low (your goal should be to not exceed 30% of your credit limit) and pay in full, on time, each month. For more on building your credit score, check out this piece. 2. You use a debit card for everyday purchases. If you’re responsible enough to keep a budget and pay off expenses in full every month, then you should be using a credit card, says Brian Karimzad, a co-founder of MagnifyMoney who worked in banking and consumer marketing for 15 years. Using a credit card helps you build up your credit score (see above), and offers a lot more when it comes to fraud protection. Check out this piece for more about fraud protection and debit and credit card use. 3. You don’t know your net worth. People always think in terms of monthly payments or getting through the month, which can lead them to think it’s okay to take out huge loans for things like cars they can’t afford, says Nick Clements, a MagnifyMoney co-founder who worked in consumer banking for 15 years. In order to truly gather the full picture of your financial situation, you need to focus on your net worth (your total assets minus any money you owe.) See the rest of the story at Business Insider   Share the latest business news with your network: Email sent to:   |   Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy Business Insider. 150 Fifth Avenue, New York, NY 10011