The term “due diligence” refers to researching a purchase before buying something. Those who don’t perform their due diligent research typically lose a lot of money each year, which is a common pitfall. In real estate that means having an expert inspector check the house for potential problems before you buy. If you’re shopping for a used car, due diligence involves getting a second option from a trusted mechanic. Before buying a major appliance, you should do lots of comparison shopping to get the best deal. When applying for a new credit card, check out all the features and benefits, as well as the fees and charges. In this way, you’ll always do your background homework before you spend your hard-earned money. That’s a great way to come out ahead.