7 Ways Being Disorganized Costs You Hundreds of Dollars Every Year
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Perhaps you’re someone who thrives in chaos, but did you know this way of living can end up costing you financially? Misplaced documents and missed deadlines can add up to hundreds or even thousands of dollars worth of extra costs every year.
Here’s a look at a few ways being disorganized can cost you, as identified by the all-in-one digital organization platform Trustworthy, as well as tips for getting your finances in order.
Missed Healthcare Reimbursements
Not keeping track of healthcare expenses can mean missing out on reimbursements. The average American family loses $339 to $408 annually in healthcare reimbursements they are eligible for due to unfiled flexible spending account (FSA) claims.
Unused Gift Cards
We often get a gift card and then misplace it before it’s time to actually buy something at the vendor it’s for. Losing track of these gift cards means losing out on the value. Americans collectively have $21 billion in unused gift cards, which averages $175 per person in lost value.
Extra Passport Fees
There’s nothing worse than preparing for an international trip and realizing at the last minute you don’t know where your passport is. Not only is this stressful, but it’s also costly. The cost to expedite a passport is $60 per application, so if you’re a family of four, that adds up to $240 in extra fees.
Credit Card Late Fees
If you miss the due date on your credit card bill, it will cost you. Typical late fees range from $30 to $41 per month. If you continue to miss payments, this will also hurt your credit score, which will make taking out loans more expensive.
Estate Planning Issues
Many people avoid creating an estate plan because it’s not the most glamorous financial task, but not having a clear plan in place can cost your loved ones. Poorly organized estate documents can cost your heirs over $30,000 in probate expenses, plus delays in receiving inheritance.
Student Loan Late Fees
Student loans are already a huge financial burden for many Americans, and missing payment deadlines will only make the situation worse. Late payments can result in penalties of up to 6% of the amount due.
DMV Late Fees
No one likes dealing with the DMV, but missing vehicle registration deadlines can add more financial pain to the experience. Late fees range from $25 all the way up to $250 depending on where you live and how late you are to register.
How To Keep Your Finances Organized
All of these extra expenses and missed savings opportunities can be avoided if you stay organized. Here are a few ways to make sure you keep your finances in order.
Keep Your Financial Documents in One Place
“Organize important financial documents such as tax returns, receipts, pay stubs, investment statements and loan agreements in a single, easily accessible location that makes it easy to find things when you need them,” said Nathaniel Robinson, founder and CEO at Trustworthy.
You can use a service like Trustworthy to store everything in one place digitally.
Monitor Your Credit Score
“Staying on top of your credit score helps you stay financially organized, especially if you plan to apply for loans or credit cards,” Robinson said. “Regularly checking your credit report also helps detect any errors or signs of identity theft. You can use free services like Credit Karma or AnnualCreditReport.com to monitor your credit score, and review your credit report annually from the three major bureaus — Experian, Equifax and TransUnion.”
Keep Track of Your Debts
“Keep a clear record of any outstanding debts, including the interest rates, minimum payments and due dates,” Robinson said. “This will help you prioritize which debts to pay off first, especially if some have higher interest rates. Tracking ensures you don’t miss payments and keeps you on top of your debt repayment plan.”
Robinson recommended the app Debt Payoff Planner to manage multiple debts efficiently.
Set Reminders To Avoid Late Fees
“The average American family is paying $1,268 per year in penalties and late fees,” Robinson said. “That’s a lot of money that belongs in your pocket.”
As soon as you get a bill, set a reminder to yourself to pay before the due date, whether that’s on your phone or in a physical planner.
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