2 Dumb Mistakes You Make with Your Money

No one is perfect, and we all make mistakes, but if you make big mistakes with handling your money, you will be left with less each month and not enough to retire in style or, hell, even party in style. Here are some dumb mistakes that you may currently be making with your money. Don’t worry because anything can be turned around, so heed the warning and start back on the right track now.

  1. Not Having a Budget

For some people this comes naturally, but for most of us it takes some practice to get it right. Understanding that your monthly bills must be paid on time when they come in requires that you acquire a system. A person who has a system together has worked out his or her budget so that all of his or her bills are paid on time each month. This will take some restraint on your part to get to where you can achieve this if you are currently caught up in the week to week system.

Unfortunately, just pulling out the bill that states final notice is not going to get you anywhere. Living week to week also means you are one pay check away from poverty. Many people do not see anything wrong with this system since nothing has been turned off, and there is no eviction notice on the door. When you do this, you get a false sense that you are doing pretty well. However, what happens when something unexpected comes up? You do not pay the cable or electric that month and eventually you find that you are a month behind on nearly everything. This is why you need to respect the boundaries of a budget.

  1. Not Saving First

This should be the first thing you do when you cash or deposit your check. Set aside an amount each week (or each paycheck or each month) and without fail. Let me repeat this, without fail that amount goes straight into a savings account. You must pretend that you never had it. Do not make excuses that you have a bill or others things to pay. This money is not yours. This money is for is a rainy day. This account can only be used for a real emergency, not a large ticket item you have been wanting. You can save your change for that.

Have you ever done something stupid with your money? Tell me about it below!


  • I find budgets tedious but always save first and review savings goals periodically so anything left is there to spend and enjoy. That is what works for me.

  • Do you think people would save more if there were less safety nets? For instance, do I REALLY need to save money in order to replace my income if I lose my job? Not really. I will receive unemployment. I’m curious if behavior would change…could probably make an argument for yes and no.

  • Most people won’t get social security when they retire yet they don’t save for retirement. I don’t think the safety net matters.

  • Whether you use a written budget or not. You have a budget. However, I get your point about being tedious, but why don’t you just use a simple budget? They are only as tedious as you want them to be 🙂

  • We first decide for our goals, what we wan tot achieve or purchase. Then, that’s when we start to save. Although sometimes, we also save first then decide where to invest our money or what we want to do with it.

  • I love this approach as well. I like that you have a plan!

  • Hannah /

    Often the obvious is overlooked. I confess I have been guilty of this. Good blog. Thanks for taking us back to the basics.

  • Sticking to a budget and setting aside some money for savings is really hard especially when you are not the frugal type person like me. But I began to change when I realize that if I continue to be like that, my future would surely be a mess.

  • How did you change? What did you do differently?

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