• About
    • Contact
    • Terms of Service
    • Disclosure Policy
  • Write for Us!
  • Advertise

Money Propeller

Propelling you toward your money goals by discussing lifestyle, career and savings.

  • Authors
  • Career
    • Career
    • Education
  • Lifestyle
    • Lifestyle
    • Clothing
    • Food
    • Housing
    • Sports
    • Weddings
    • Travel
  • Money
    • Money
    • Investing
    • Saving
    • Stories
  • Observations
  • Link Ups
  • Blogroll

3 Financial Mistakes We All Make  

By Amanda 8 Comments

3 Financial Mistakes We All Make

Everyone makes mistakes – especially when it comes to our finances. We all have our own struggles with money, but some are a lot harder to overcome than others. The important thing is that we learn from these mistakes so that we don’t repeat them – or better yet, never make them in the first place.

1. We Spend Money We Don’t Have

It’s simple – by spending money we don’t have, we are putting ourselves into debt. Credit cards, lines of credit, student loans, car loans and mortgages have become so common place, they are arguably necessities in today’s society. The average person isn’t going to be able to pay cash upfront for a 4 year degree or a house, which makes it almost impossible to get through life without accumulating debt in one form another.

The amount of debt we have will vary, of course, as will the type of debt. Mortgages and student loan debts are generally regarded as “good debts” because they are investments that will grow and create value. They are things we “need”.

Credit card debt, consumer debt, or spending money we don’t have on our “wants” are generally regarded as “bad debts”. They quickly lose their value. In most cases, we can avoid these bad debts with a little self-discipline: if you don’t need it and can’t afford it – don’t buy it.

Good debts, bad debts, ugly debts. It doesn’t matter what we call it. The bottom line is we should all strive to stop spending money we don’t have.

2. We Don’t Want to Change

We stay in school an extra year (or two, or three) and get ourselves further into debt. We settle into jobs that don’t pay us what we’re worth or don’t offer room for advancment. We need (or want) more money but aren’t willing to put in overtime, start a side-hustle, or take on a part-time job. We’re not willing to give up cable or a vacation in order to pay off a debt or save for retirement. Basically, we don’t like the financial situation we are in, but we don’t want to change.

Unfortunately, our situations aren’t going to get any better unless we do something to make it better. It could be a big change (like moving to a new city for a better paying job) or it could be a small change (like drinking water at a restaurant instead of ordering a drink). It all depends on the situation we are currently in and the situation we aspire to be in.

Bigger changes are scary and stressful, even if they have a positive outcome. So why not start by making small changes? We can opt for a smaller data plan for our cell phone or cancel the premium package for our cable. We can meet friends for lunch instead of dinner. We can skip the Starbucks or Tim Horton’s and brew our own coffee at home. There are so many little things we can change that will help improve our financial situation without interfering with the lives we don’t want to change.

3. We Don’t Know Where Our Money is Going

Following a budget and tracking our spending are both very important when it comes to managing our finances and is something we should all be doing. But knowing where our money is going is more than just data in an app or spreadsheet.

Do you know how much interest you pay per day on your mortgage? Do you know and understand the terms of your credit card? Do you know if you have a fixed or variable interest rate on your student loan? Do you know what happens if you miss a car payment?

If you don’t know or only have a general idea, call up your bank or lender and ask. (And while you’re at it, see if there is anything you can do to make a positive change – as per point #2 – such as getting a discount or lower interest rate.) Not knowing the fine print could potentially be costly, which is why we should take some time to make sure we understand where our money is going.

What financial mistakes are you guilty of making?

Filed Under: Stories Tagged With: financial mistakes

About Amanda

Amanda hails from Northern Ontario where she ambitiously tries to live a life worth blogging about at My Life, I Guess.... She writes about getting out of almost $80,000 of debt, her struggles to find the right career, and the ups and downs of being a tenant (amongst other things) while drinking beer and watching too much tv.

Comments

  1. Josh says

    February 10, 2017 at 10:10

    #2 is our biggest struggle because we recently underwent a career transition and huge paycut. You sometimes don’t realize how lifestyle inflation affects everybody to one extent or another. We have made changes, but, its hard to give up old habits. Even old dogs “can’t” learn new tricks.
    Josh recently posted…4 Ways We Survived an Adult Gap YearMy Profile

    Reply
  2. Michelle says

    February 12, 2015 at 16:40

    We were guilty of all of these as well. We have a couple to still work on.

    Reply
  3. Brock @CleverDude says

    January 5, 2015 at 07:18

    I’ve certainly been guilt of all of these…when I don’t know how much money is in the checking account because I haven’t reconciled it in 10 days…..that’s a problem.
    Brock @CleverDude recently posted…Life Is Just A Game Of TetrisMy Profile

    Reply
    • Anne says

      January 5, 2015 at 13:05

      Only 10 days is still doing pretty well, though (as long as it’s not perilously low!).
      Anne recently posted…I Spent Money to Save MoneyMy Profile

      Reply
  4. Amanda @ My Life, I Guess says

    January 2, 2015 at 13:40

    I need to follow my own advice a bit better. Haha 🙂
    Amanda @ My Life, I Guess recently posted…My Health is More Important Than $40My Profile

    Reply
    • Anne says

      January 2, 2015 at 13:42

      Ugh, don’t we all? Do as I say, not as I do!

      Reply
  5. kay ~ lifestylevoices.com says

    January 2, 2015 at 03:45

    We used to make all of these mistakes, but we’re down to #2 and #3 now. I like the way you break it down and give solutions! Definitely the sooner people can learn this, the better. 🙂
    kay ~ lifestylevoices.com recently posted…1 January 2015: Today I Am A Man!My Profile

    Reply
    • Anne says

      January 5, 2015 at 13:06

      Nice progress! I’m sure you’ll be able to knock down the next two, as well. They’re definitely long term changes, though, not quick wins.
      Anne recently posted…I Spent Money to Save MoneyMy Profile

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CommentLuv badgeShow more posts

Follow Us:


Subscribe today and receive our calculator for free!

On Your Mark, Get Set, Blog!

airbnb

advertise here

vayable

Free Money!

Tangerine Refer a Friend Open a new Tangerine Account with $100 using my Orange Key 23676924S1 and we both get a free $25.

Popular Content

The 20/10 Rule that Does Wonders!

Airbnb is an affordable and flexible way to travel

Stock up and save big! Have fun while saving your pennies

Affiliates

Money Propeller is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Money Propeller also participates in other affiliate programs from time to time. That means that if you click through a link and make a decision to purchase, Money Propeller will receive some compensation from the vendor, at no cost to you.

The Bottom

You made it all the way to the bottom! Thanks so much for reading.
Did you know that The Bottom is the name of a town on the island of Saba, in the Caribbean? I went there on a trip once.
The other bottoms I think about are my own bottom, and the bottom of the champagne bottle. Often when I find the bottom of the champagne bottle, my own bottom grows. Funny, that.

Thanks for reading!

- Anne

Disclaimer

The content on this website is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such professional advice, consult a licensed financial advisor or tax advisor. This website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. Please click here for disclosure full details.
Copyright Money Propeller All Rights Reserved
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT