3 Ways You're Missing Out on Free Money Without Realizing It

How often have you found yourself walking down the street and a random stranger slipped you a $100 bill with no strings attached? Chances are, that's never happened. 

At best, these days, the most you can really hope for is to land in a pay-it-forward line where a stranger covers the cost of your coffee to go. And even then, it's questionable as to whether you're getting something for free, because the general convention is that the right thing to do is to buy a coffee for the car or person behind you.

But believe it or not, there are some opportunities in life to get your hands on free money. These mistakes, however, could cause you to miss out on it.

1. Not claiming your full 401(k) match

If you're saving for retirement in an IRA, you won't be entitled to an employer match, since these accounts are self-funded and self-managed. But if you have a 401(k) plan through work, then it pays to see what matching incentive it comes with. 

It's common for companies to match workers' contributions to 401(k)s to some degree. Fidelity reports that among its plans, the average overall average employer contribution is 4.8%.

If your company is willing to give you a 4.8% match and you earn $60,000 a year, contributing $2,880 out of your own paychecks to your 401(k) would mean snagging a free $2,880 from your employer. But if you don't put that money in, you won't get that match. 

2. Not using credit card rewards before they expire

Many issuers offer flexible credit card reward programs that give you plenty of opportunity to take advantage of the points you've banked. But if you have a store credit card, your rewards might expire somewhat shortly after you earn them. And if you don't use your rewards on time, you'll effectively be giving up free cash.

So don't let that happen. Mark the expiration date of your rewards on your calendar and make a point to use them before they're no good. 

And if your rewards come in the form of, say, a $10 credit to your go-to retail store, don't assume that $10 is useless just because it's a small amount. You could always use it to buy staples like socks and underwear -- stuff you're going to have to replace eventually.

3. Not taking advantage of tax breaks

The U.S. tax code is loaded with tax breaks that can save people money. But if you don't know where to look, you might miss out on major cash to add to your savings account.

The Earned Income Tax Credit, for example, is a fully refundable credit that can put a nice sum of money into your pocket if you're eligible. And if you're working a side hustle, you should know that you're allowed to claim a deduction for the costs you incur, whether it's paying for gas to get to a gig or buying supplies.

If you want to make sure you're not missing out on lucrative tax breaks, sit down with an accountant so they can review your finances and tell you what benefits to jump on. You might have to pay that person a modest fee, but the savings you reap could more than make up for it.

Free money is one of those things that's generally hard to get. So it pays to do whatever you can to capitalize on it when it comes your way. That means putting money into your 401(k) to get your employer match, using up credit card rewards, and making sure the IRS isn't keeping so much as a single extra dollar of your earnings.