3 Ways You May Be Missing Out on Free Money in Your Life

If someone were to walk up to you on the street and hand you a $100 bill, would you take it? Or would you say "no thanks" and continue on your way?

The reality is that you're probably not going to encounter a random stranger looking to hand you $100 for nothing in return. But there may be other opportunities in life where you can get your hands on free money. Here are three ways you may be missing out on free money -- when you absolutely shouldn't be.

1. You're not claiming your 401(k) match

Vanguard says 95% of employer retirement plans on its platform offer some type of matching incentive. If you're not contributing enough money to your 401(k) to claim your full employer match, you're saying no to free money, which makes little sense.

Remember, too, that when you give up an employer match, you also give up investment gains on that match. The stock market's average annual return over the past 50 years has been 10%. If you load up on assets like S&P 500 index funds in your 401(k), you might enjoy that same return.

Meanwhile, let's say that this year, your employer will match up to $2,500 in employee 401(k) contributions. If you don't put in $2,500, you won't get that $2,500 match. But remember, if invested at 10% a year, that $2,500 could be worth about $43,600 in 30 years' time. And that's a lot of retirement income to give up.

2. You're not swiping the right credit cards in the right places

Different credit cards have different rewards programs. But it's important to be mindful of those details so you don't pass up the chance to get the maximum amount of cash back on your purchases.

Let's say one of your credit cards gives you 3% back at the pump, only you get into the habit of using a card that gives you 1% back instead. If your fill-ups normally cost $30 a week and you spend about $1,500 a year on gas, you're losing out on $30 for no good reason. And while you can argue that $30 isn't a life-changing sum, if you're someone with little savings, it could go a long way.

3. You're sticking to a brick-and-mortar savings account

If there's a brick-and-mortar bank you've long held your accounts at, it can be tough to make a switch. But you'll often be eligible for a higher interest rate on your money if you open a high-yield savings account online rather than stick with a physical bank.

Since online banks don't usually have the same overhead as physical banks, they can often offer better rates. So let's say you have $5,000 in savings. If you're only getting 2.00% on your money, that's about $100 in interest for the year. If you're able to get 4.50%, which is more than feasible today, you'll be looking at about $225 instead.

Most people don't give up free money because they don't need the cash -- they give it up because they don't realize they're making a mistake. So from now on, make an effort to contribute enough money to your 401(k) to score your full company match. Also, be mindful of the credit cards you swipe, and research savings account options if yours isn't particularly generous with the interest it pays.