When it comes to spending money, we tend to think of our expenses in terms of purchases.

But is the way you’re managing your money costing you without you even realizing it?

Here are some money management mistakes to avoid and tips on how to optimize your finances to save more money.

Don’t Pay For Your Checking Account

Most banks offer free checking these days, but be careful to watch out for the fine print.

Some have certain qualifications like a minimum balance you have to maintain or a requirement that you set up direct deposit.

Check with your bank to see if there are any fees you're liable for before you get surprised one day.

Stop Paying Bank Fees

While more and more banks are moving toward fee-free services, many still impose a number of convenience or penalty charges.

Check your bank’s documents to see if you’re subject to any of the following fees:

• Checking Account Fees

• Minimum Balance Charge

• Overdraft Charge

• Returned Deposit Charge

• Hard Copy Statement Fee

• ATM Fees

• Foreign Transaction Charge

• Lost Card Fee

• Inactivity Fee

• Account Closing Fee

If your bank is still charging any of these fees, it may be time to find another bank.

Switch to High Yield Savings Accounts

Many of us open our first checking and savings accounts and never think about them again.

But this could be costing you.

Most traditional banks don't offer any sort of interest on your checking and very little on your savings.

If you've been building up your emergency and sinking funds, the perfect place to house that money is in a high yield savings account.

You'll have quick access to it when needed but in the meantime it can earn some cash while it's waiting.

Stop Paying a Premium for Your Retirement Accounts

Another set it and forget it area of our finances tends to be retirement and investment funds.

You may not have understood the fees associated with the different options at the time you signed up, but it's never too late to re-evaluate.

If you're paying a premium for someone to manage your funds it's costing you a fortune in unrecognized future potential.

Don’t Carry a Balance on Your Credit Cards

I've heard the occasional advice that it's good for your credit to carry a balance, but I'm hear you tell you that is 100% false.

The only thing carrying a balance does is cost you money.

And potentially a lot of it if you've got a high interest rate.

At a minimum try to pay your statement balance every month so you’ll avoid paying interest.

If you want to improve your credit you're actually better off paying the card in full.

Transfer Balances Away From High-Interest Cards

Assuming you're not able to pay your statement balance in full, the next best thing is to make sure you're not keeping it on a high interest rate card.

If you can consolidate your debt onto a 0% or low-interest card you'll save some money while you pay it off.

Just make sure you don't go spend happy and run your debt back up.

Take Advantage of Your Employee Benefits

You may be familiar with your employer’s health and retirement benefits, but have you checked to see if they offer other perks?

Many companies partner with other businesses to get discounts and group deals for their employers.

Check with your HR department to see if you may be missing out on things like a free Costco membership or discounted phone service.

Don’t Overdraw Your Accounts

It's easy to try to ignore things when your finances are a mess, but it could be costing you more than added stress.

Overdrawing you're accounts will usually result in fees from both your bank and the company you're attempting to pay.

Try using a monthly bills calendar to see where your expenses fall in relation to your paydays.

Having a clearer picture of your finances will help you avoid fees and late payments.

Check Your Credit Report

Having errors on your credit report could be costing you.

Having poor credit usually equates to higher interest rates, meaning your debt and any future credit will be more expensive.

One of the fastest ways to raise your score is to get errors removed. But if you don’t check your credit report you may never catch those errors.

You can get a free credit report at AnnualCreditReport.com.

Consolidate Your Debt

If your debt is spread across several lenders, you may be paying more both in multiple payments each month and in varying interest rates.

Check into consolidating your debt at a lower rate.

When you consolidate your debt, your new monthly payment will most likely be less overall.

If you can pay the same amount you were, more of your payment will go toward the principle and help you pay off your debt faster and cheaper.

Automate Your Finances

Are you still paying your bills or transferring money to savings manually?

If you’re not automating your finances, it's probably costing you money.

By not automating things you risk late payments, missed payments, and forgetting to (or deciding not to) contribute to your savings.

Automation doesn't mean you set it and forget it though. It just gives you the peace of mind to know it's handled.

You still need to be proactive and make sure your bills are correct and your savings is sufficient.

Shop Around for Insurance

Insurance is confusing and not at all interesting, making it really easy to completely ignore.

Once we set it up we're relieved to be done with it and never have to think about it again.

Unfortunately, if you're not reviewing your insurance policies every year you may be overpaying.

Check your coverages to make sure your policies still reflect your priorities.

Once you know what coverage you need, price it around to see if you can get it cheaper anywhere else.

Final Thoughts

When you think of managing your money you probably think about sticking to your budget more than what the interest rate on your savings account is.

But ignoring the systems behind your money may be costing you.

With the tips above you should be able to avoid common money management mistakes and optimize your finances to save more money.