No one is perfect, and everyone makes mistakes. In this blog post, I've compiled a list of 23 financial mistakes that are incredibly easy to make. I have admittedly made a several of these mistakes on this list, so some of these hit very close to home.
Check them out and see if you've made any of these mistakes in the past, or are you making any of them right now?
1. Paying little to no attention to where you spend your money.
2. Failing to contribute, or contributing too little, to your retirement plan at your job.
3. Buying or leasing a new car instead of purchasing a good used car with cash.
4. Buying a home with a 30 Year Mortgage instead of a 15 Year Mortgage. https://www.smartmoneybro.com/post/2018/10/17/5-reasons-you-should-never-get-a-30-year-mortgage
5. Living too comfortably with debt, credit cards, and simply believing debt is "just a way of life".
6. Over spending at eateries and popular latte factories, while cooking at home way too infrequently.
7. Cashing out and/or borrowing money from your retirement account.
8. Getting large tax returns, which is simply allowing the government to keep your money, without paying you interest, and then paying it back to you the next year, after inflation has de-valued your money.
9. Refinancing your primary residence loan, cashing out, and then later wondering where the money went.
10. Having no emergency fund. https://www.smartmoneybro.com/post/2019/04/15/emergency-fund-money-is-important
11. Operating your household off only one stream of income.
12. Failing to shop around for better car and home insurance premiums, as your situation changes.
13. Paying minimum payments on debt.
14. Living off forbearances on student loans, while the interest adds to the total amount owed. So your amount owed increases every month you do a forebearance.
15. Trying to get rich quick. Time and money are best friends. Patience is the ultimate virtue.
16. Taking money advice from gurus who make ALL their money off selling you money advice.
17. Being so focused on increasing your income, that you lose sight of managing your current income and expenses, and actually growing your net worth.
18. Idolizing the FICO score, while paying little attention to the behaviors that actually are negatively affecting your credit score.
19. Ignoring your own poor spending habits.
20. Refusing to read and make a concerted effort to learn about money, investing, economics, personal finance, self-improvement, and other relevant topics.
21. Lack of a written plan, no written vision, no written goals, and no written action steps. https://www.smartmoneybro.com/post/smart-money-bro-6-steps-to-achieve-your-goals
22. Failing to hire a professional to help you take advantage of itemizing, charitble donations, write-offs, and other tax breaks. Remember, success is a team sport!
23. Over reliance on material things for some type of perceived happiness.