Everyone makes money mistakes. The goal isn't perfection—it's learning from them quickly and not repeating the expensive ones.
The Big 10
1. No Emergency Fund
Watch Out
Without savings, every unexpected expense becomes a debt emergency.
One car repair, one medical bill, one job loss—and you're in a hole. An is your first financial priority.
2. Ignoring the 401k Match
Your employer offers free money. If they match 50% up to 6%, and you contribute 0%, you're leaving thousands on the table every year.
Pro Tip
The is a 50-100% instant return. You will never find a better investment.
3. Lifestyle
Got a raise? Immediately upgraded your car, apartment, and wardrobe?
The cycle: Earn more → Spend more → Still broke
The fix: When you get a raise, save at least half of the increase.
4. Only Paying the Minimum
on credit cards keeps you in debt for decades. Even $20 extra per month makes a huge difference.
5. No Budget
"I know what I spend" = you probably don't.
Do This
Track every dollar for one month. Most people are shocked at where their money actually goes.
6. Waiting to Invest
"I'll invest when I have more money" means you'll never invest.
| Start Age | Monthly Investment | Total at 65 |
|---|---|---|
| 25 | $200 | $540,000 |
| 35 | $200 | $245,000 |
| 45 | $200 | $98,000 |
Time matters more than amount.
7. Buying Too Much Car
Banks will approve you for way more car than you can afford. That doesn't mean you should take it.
The rule: Total car costs (payment, insurance, gas, maintenance) should be under 15% of .
8. Not Checking Your
Errors happen. Identity theft happens. mistakes can cost you thousands in higher interest rates.
Quick Win
Go to AnnualCreditReport.com (the only official free source) and check your reports from all three bureaus. It's free, and you should do it at least yearly.
9. Mixing Up Wants and Needs
"I need a new phone" vs. "I want a new phone"
Be honest with yourself. Needs vs wants is the foundation of good spending decisions.
10. Not Talking About Money
Money shame keeps people from learning. Talk to friends, family, or online communities. You're not alone, and others have solved the problems you're facing.
The Good News
Every single one of these mistakes is fixable. Start with the one that applies most to you, fix it, then move to the next.
Quick Win
Pick ONE mistake from this list that you're currently making. Write down one specific action to address it this week.