The common money mistakes The Sun’s consumer team make costing us £18k

NO one can say they haven’t made a money mistake at some point – not even The Sun’s consumer team.

Some of our mishaps have cost us hundreds or even thousands of pounds, so we’re keen you don’t fall into the same traps.

Find out what our most expensive errors are and how you could avoid them – in total they could save you from losing a huge £18,096.

Not investing until my late 20s

I learned about finances from my dad, who was very careful with his cash and saved consistently over the years.

Learning from his sensible but cautious approach to money has meant I’ve not frittered away my savings in my 20s, which I’m very grateful for.

But I’ve been so risk-averse that I’ve not grown them much, either.

I only started investing for the first time last year, at 28, and I wish I’d started earlier.

Investing has historically helped savers grow their money much more than cash savings.

If I’d put £2,000 of my savings into the S&P 500 at 23, I would’ve grown it to roughly £4,460 by the start of this year – more than doubling my cash.

Instead, I was stuck with savings accounts offering abysmal rock-bottom interest rates – at one point paying out just 0.2%.

That £2,000 has increased by only £245, meaning I missed out on £2,215 compared with investing – and because of inflation, I’ve actually lost money in real terms.

Of course, if you’re investing you do need to sit with a level of risk.

You should also be willing to keep that money invested for at least five to 10 years to ride out any bumps in the market – another reason why starting earlier is a good idea.

LOST CASH: £2,215

– Emily Mee, Consumer Reporter

Sticking with a subscription I didn’t use

I signed up to a gym in January last year – full marks for a New Year’s cliche. 

The membership was £25 a month. In January I went 11 times. February, seven. March, three. After that, I didn’t go back but never cancelled the membership.

Not because I forgot — I knew the direct debit was going out, but I was determined to book a personal trainer session and go back. However I never did. 

So for nine months I was paying for absolutely nothing. 

That’s £378 for a handful of half-hearted sessions. In the final stretch, each visit cost me more than a boutique class.

Smaller fixed monthly amounts are easy to ignore, especially when you feel the emotional pull telling you that you will go back to the gym or use the subscription you’ve signed up for.

Instead I should have treated it as a financial decision rather than a resolution and cut my losses earlier. 

LOST CASH: £378

– Fran Ivens, Deputy Consumer Editor

Forgetting to look after my future self

My biggest money blunder is one that millions of us make – losing track of old pension pots.

With the average UK worker hopping between 11 jobs in a lifetime, it is incredibly easy for those retirement savings to go astray every time you change desks or move house.

I’m no different – I’ve left a trail of “lost” pensions behind me.

Recent stats from the Pensions Policy Institute show there are now a staggering 3.3million lost pensions in the UK, worth a combined £31.1billion.

Because you usually can’t touch that cash until you’re 55 (rising to 57 in 2028), it’s easy to shove it to the back of your mind.

But for those aged 55-75, the average lost pot is worth a whopping £13,620.

That is the difference between a retirement spent pinching pennies and one with actual “pension power.”

I want a “comfortable” retirement – which according to industry standards for a single person requires about £43,900 a year.

That covers luxuries like a three-week holiday in the Med and over £200 a month for takeaways and meals out.

My fix? Don’t let your hard-earned cash sit in a “zombie” account.

Use the Government’s free Pension Tracing Service to find your old employers and consolidate your pots.

I’m now on a mission to hunt down every penny to ensure my future self isn’t footing the bill for my past laziness!

LOST CASH: Average of £13,620

– James Flanders, Chief Consumer Reporter

Having a non-existent credit score

My biggest money mistake was having a “thin credit file”.

After spending years in flat shares, where every bill from the WiFi to electric was in the landlord’s name, my credit score was non-existent as lenders had no evidence of my financial responsibility. 

But when I was rejected for a bill pay phone contract a few years back, partly due to my non-existing credit record and not having a credit card, I realised the damage it was doing to my score. 

After moving, I made sure that household bills were in my name and I joined the electoral register.

I also now have a credit card, which I pay off regularly and it’s improved my rating massively.

LOST CASH: £693 due to paying more interest on your credit card

– Laura McGuire, Consumer Reporter

Shopping while hungry

I often nip into the supermarket for staples like milk on my way home from work.

But because my stomach is also rumbling, I end up with a pack of hot cross buns, fruit I already have at home and a new treat I’ve never seen before, but ultimately don’t need.

Although “hanger-buying” is a really easy trap to fall into, various studies show we spend between 17% to 64% more at the shop than those who’ve recently eaten.

This could cost the average UK family, who spends roughly £3,877 a year on just groceries according to personal finance site Nimblefins, more than £659 a year in overspending.

I know this all too well.

To avoid it, I’m now trying to stick to a “full belly policy”.

I never set foot in a supermarket without a snack first, and also stick to a pre-written list.

LOST CASH: £659 a year

– Alice Grahns, Consumer Editor

Missing out on free cash payments

Although I’ve been a Nationwide customer for more than 20 years, I’ve missed out on the last two Fairer Share payments – which are usually worth £100.

Even though I’ve written numerous articles on the topic through the years, I’ve always failed to take my own advice.

To qualify for the payment you usually need to have an active Nationwide current account and a savings account, Cash ISA or mortgage.

You also need to have received at least £500 into your current account and have made two payments out of your account in two out of three months.

I’ve got a Nationwide ISA and pay into it each month so I’m halfway there.

But as it’s not my main account I always forget to make the two payments.

This year I’m determined to get the cash, so I’ll make the two payments from my account this week to avoid missing out.

LOST CASH: £200

– Adele Cooke, Senior Consumer Reporter

Falling into a common phone bill trap

I was sat on the sofa scrolling through my phone when I decided to log into my mobile phone app for the first time in yonks.

When I logged in, lots of phone deals flashed up on my screen, telling me I was eligible for an upgrade – but I thought it was odd as I was still tied into my contract.

I decided to double check my paperwork and to my surprise, I saw that my 24-month plan had ended a month earlier.

It turns out I had missed an important email in my inbox warning me that my £34.58-a-month contract was ending in June.

I was kicking myself – I had been planning to switch to a SIM only contract as soon as I had paid off my handset to save money.

I immediately sprang into action and signed up to a £7 a month SIM only deal, saving myself a whopping £27.58 a month or £330.96 a year.

It might have been months before I discovered my rookie error, and I could have wasted hundreds of pounds.

This mistake is called “double paying” – when you’re essentially paying off a handset that is already paid off – and you’re probably doing exactly the same thing as well.

There are five million mobile phone customers who are at risk of “double paying” on their bill, according to Uswitch.

Each customer could save an average of £321 a year just by switching to a SIM-only deal.

LOST CASH: £331

– Lucy Andrews, Deputy Consumer Editor