Debit cards are handy payment cards, especially for those who do not want all their transactions to involve credit cards or other pay-later options. Debit cards also help in sticking to a budget and eliminating the burden of credit card bills and the associated delayed bill payments. However, certain missteps in using these payment cards can dampen the experience and lead to financial issues. So, here are common mistakes to avoid while using debit cards: 1. Using out-of-network ATMs Debit cards can be used in two ways: making direct payments or using cash withdrawn from the ATMs. Both of these modes of payment are easy options. However, one may want to access an ATM closest to them without checking if it is in-network—i.e., it is operated by the individual’s bank. Using out-of-network ATMs will make one incur unnecessary transaction fees every time they withdraw money. So, one should stick to ATMs that are owned by the card issuer to avoid paying additional fees on withdrawals. 2. Not tracking debit card balance Balance is one of the key things to monitor while using a debit card. With every transaction, one should keep an eye on the remaining balance. Failure to do so can lead to problems like failed transactions or not having enough balance while trying to make a payment. This can be an awkward situation if one does not have other payment options like cash or credit cards handy at the time. So, one should always check if the card has enough balance before making an online payment or heading out to the store or to the checkout counter. 3. Writing down the card PIN One should avoid writing down their card PINs and carrying the information around, as this practice makes them vulnerable to theft and fraud and compromises the security of their account.

With the digitization of payments, buyers no longer have to pay immediately from their bank accounts. Several online payment options allow one to buy and pay for a product flexibly. The “buy now, pay later” option is one such feature. Here, consumers can pay for a purchase later without any interest charged. Loan approval for BNPL is also quicker. But there are some mistakes one should avoid while availing of this option: 1. Buying expensive products With “buy now, pay later,” it is easy to get carried away and buy expensive products that one cannot normally afford. For example, high-end laptops or electronic items may cost over $1,000. One can easily buy these products with the buy now, pay later option, but when it is time for payment, one might face a major financial crunch. Also, there are additional charges for late payments, which can eventually increase one’s spending. So, a better idea is to plan expenditures well in advance and save money before buying something costly. 2. Taking too many loans within a short time Many people use “buy now, pay later” to buy multiple products. But as the number of transactions increases, one’s debts also increase, which can be overburdening when they have to be repaid. Also, it is difficult to track the last payment date for each transaction. For this reason, one should use this payment option only for a certain number of transactions every month. 3. Failing to pay on time It is easy to forget to make “buy now, pay later” payments on time because it is not always monthly; it may also be on a weekly or biweekly basis. With late payments, one would have to pay additional fees as a penalty, which can increase the amount spent. Multiple late payments can cause a huge financial crunch in the long run.

The payroll process is often considered high risk for any business, especially if the right tools and resources are not used. Besides, businesses must comply with tax regulations and laws, which can further complicate the payroll process. Thus, errors may sometimes creep in. However, this can be distressing for employees and expensive for the business. To steer clear of these problems, it helps to learn about the common payroll errors and how to avoid them. Wrong classification of employees This payroll blunder has been committed by small as well as large businesses. Sometimes, they end up misclassifying an employee, leading to major errors in their payroll. For example, a person is classified as an independent contractor instead of permanent employee, or they may not be classified to receive overtime, when in fact they are. Such misclassification can easily lead to serious payroll errors. The solution to avoid this is to use an automated payroll service or software instead of manually completing the process. Miscalculation of payroll Another common error that has been observed is miscalculating the payroll. This mainly occurs due to the misclassification of employees. Aside from this, there are other reasons why miscalculation may happen. Overpaying or underpaying employees. Making retroactive payments by mistake. Not paying the first paycheck for new hires. Deducting the wrong amount for benefits or other miscellaneous payroll deductions. Incorrectly paying employees who are on disability or other leaves. Whatever might be the reason for the miscalculation, it can cause a lot of frustration for the employees, especially when it involves missed payment. Subsequently, the business has to dedicate several hours or even days to look into why the error occurred and then correct it. Most of the time, miscalculation errors are avoidable when a business uses automated online tools. Yet, if errors do occur, a business needs to take the necessary steps to rectify it and send a payroll error email or letter to the employee explaining why the error happened and how it is being resolved.

The importance of a varied investment portfolio is well-known. Not only does it help maximize profits, but it also keeps one’s assets safer. In addition to equities, hedge funds, and stocks, many people today also invest in index funds. These are a group of stocks that mimic the appearance of an existing market index and offer simple returns. Read on to learn more about index funds, how they work, and how to identify the best ones. What are Index funds? Index funds are made up of the same investments as the index tracked. Since their performance is similar to that of the index, they generally require no hands-on management. One distinct factor about these funds is that they do not try to exceed the market. Instead, they replicate the market by buying stocks of all the listed companies. This way, the returns match the performance of the index as a whole. They are considered a passive investment strategy to balance one’s portfolio, making them great for people who do not want to spend too much time or energy monitoring the market daily. Identifying the best index fund to invest in Picking an index fund can be a challenge. Here are some things to keep in mind while investing: Pick a fund with the lowest expense ratio Index funds often have an associated annual fee called an expense ratio. This small fee covers the cost of buying and selling the investments and managing them. In most cases, however, this fee is not listed transparently. It is deducted as a percentage of one’s return on investments. After shortlisting funds that could benefit one’s portfolio, experts recommend looking for one with the lowest expense ratio. This can help one maximize their investment profits. Don’t worry about the ETF vs Index Fund difference Many people get confused about the difference between an ETF and an Index Fund when starting on their investment journey.

Most individuals file taxes depending on how much money they make during the fiscal year. However, since the process is long and complex, it sometimes results in costly errors. A common mistake is overlooking tax deductions or, more simply, the expenses people can subtract from their taxable income. Understanding which expenses one can claim as deductions helps save significant money. Here are the seven most overlooked tax deductions individuals should know. Charitable contributions One of the most overlooked tax deductions is the charitable contributions made throughout the year. It could include property, cash, or any other monetary donation to charity. Interestingly, even out-of-pocket expenses incurred for volunteer work qualify. If someone had to drive for volunteer work, they could deduct the expenses one of two ways: deducting the actual cost of gasoline or deducting $0.14 per mile. That’s why one should remember to check the receipts from charitable organizations and the mileage costs when doing taxes. That said, not all donations are considered tax-deductible. The charity must be an approved tax-exempt organization to deduct a contribution on tax returns. Student loans interest While one may not enjoy paying interest on a student loan, doing so may have some money-saving benefits. One can deduct up to $2,500 (or the actual amount, whichever is less) of the interest paid on student loans. Any qualified student loan interest will work, including that on the loans taken out for oneself, a spouse, or someone else who was a dependent at the time of borrowing. The individual can consider interest deduction on the loan even if they do not itemize deductions when filing. However, there are other terms and conditions associated with student loan interest deductions that one should read before making any additions to the income tax returns. Retirement savings contribution Contributions to traditional IRAs and 401(k)s are not taxed.