You may think that you have a clear and correct picture of your finances, but that may not be the truth. It is possible that you have committed some mistakes while evaluating your 'money tree'. You may not have estimated the value of your house or vehicle accurately. So, what you think you know may not be the fact. Read along to get acquainted with some common things which you may not have observed in your 'money tree'.

5 Things you may not have observed in your 'money tree'

Here are some little-known facts that you may not know about your 'money tree'.

1. The market value of your home is less than what you've calculated.

Despite the poor condition of the US housing market, homeowners feel that the fair market value of their homes is extremely high. Homeowners feel that they can fetch a substantial amount from the market after selling their houses. However, this is a wrong notion completely.

According to a recent survey, the value of the houses in 2011 has dropped from 2010. Only time can tell if the price of the homes will increase in 2012. The financial experts predict that there will be steady decline in the price of the homes for most part of the year.

So, if you're thinking to sell your home in 2012, make sure you estimate the value of your house correctly. Renovate your house from time to time to keep it in a good condition. Present your home in a good condition to the potential buyer. Otherwise, you'll never be able to strike a good deal.

2. Your car is not as valuable as you think it is.

You may love your car like your own baby, but it does not mean that others see your vehicle in the same respect. You may think that your car is extremely valuable, but the lenders and insurance company may not share the same sentiment.

It has often been observed that people miscalculate the value of their cars. Usually, around 3% of the used cars are found in a good condition. However, nearly 32% of the car owners believe that their cars are at a great condition. You can consider your car to be in superb condition only when it has no technical or mechanical problems.

Adjust your insurance coverage as per the condition of the car. Keep in mind that the value of cars decreases with time. So, you can never expect to sell your car at the original purchase price. No one will be willing to pay you that amount of money.

3. Your child can obtain a greater financial aid.

Most parents find it difficult to pay the high tuition fees of their children. The cost of education has increased in the last few years. However, when the time comes to apply and obtain financial aid, most parents make dreadful mistakes.

Some parents think that their children won't qualify for the financial aid. They tend to rely more upon the scholarships. They assume that their children can qualify for scholarships easily. However, they forget that thousands of students apply for scholarships. There is a stiff competition. Their children may lose scholarship to others.

If your 2 kids are studying at the same college, then their chances for qualifying for a financial aid are extremely high. In such a situation, you should apply for a financial aid without making any delay. It will be a grave error to depend too much upon scholarships.

4. You deserve more than what you're earning right now.

Are you confident that you're paid well? Is your employer paying you as per your capability? There is a great probability that your wage is not right.

Some employees think that their wage is not good. They deserve much more. There are also other employees who underestimate their value.

You can find out your correct value by conducting a research. Find out what people are earning at similar positions. For example: if you're working as a criminal journalist, then your job will be to know what the other reporters are earning in your state.

If you find that your salary is much below than what other reporters are earning, then you can ask your boss to hike your wage.

5. Your retirement fund is adequate for your family.

Your retirement fund may not be enough for spending the golden years comfortably. You may be pretty satisfied with the amount deposited in your retirement savings account each month. However, this amount may not be sufficient for leading a comfortable retirement life.

If you really wish to lead your retirement years in peace and comfort, then you need to save a huge amount of money every year. If you earn around $60,000 in a year, then you need to have minimum $480,000 in your retirement savings account to sustain your lifestyle.

Use a retirement calculator to calculate how much you need to contribute to your retirement fund every month. Contribute the required amount to your retirement fund every month if you don't want to spend your golden years in poverty.

Finally, you may think that your credit score is good enough to secure a loan at low interest rate, but the truth may be opposite. The calculation of credit score is a complex procedure plus lots of people have several misconceptions about it. For instance, you may think that your score increases as you close credit accounts. However, the fact is your score decreases as you close down old credit accounts.