3 Money Mistakes You’re Making (and How to Fix Them)

Managing your money can feel overwhelming… I know that feeling all too well. And even the smallest mistakes can seriously affect your budget, savings, and financial goals. If you think you may be stuck in a never ending cycle and you’re wondering why your bank account balance can’t seem to grow, you might be making one of these common personal finance mistakes.

I’ve personally made each of them at least once, so I know just how dragging it can be… Good news is, these money mistakes are easy to fix—and once you do, you’ll be on your way to saving more, spending smarter, and reaching financial freedom faster.

Let’s dive into three financial mistakes that could be hurting your wallet—and how to turn things around.

1. Not Tracking Your Spending (Budgeting Mistake #1)

You think you know where your money is going, but your credit card bill and bank statements tell a different story. You’re constantly asking yourself, Where did all my money go?, yet you can’t remember how many times you used your credit card for small purchases here and there just yesterday.

If you don’t track your spending, you won’t know where to cut back. Small daily expenses—like coffee, takeout, and online shopping—add up quickly, you’re overspending without even realizing it. Remember though: it’s not about never enjoying yourself and being miserable, it’s about knowing where your money is going to make sure it’s actually serving you (and your interests) best.

Fix It: Use a Budgeting Method to Track Your Money

Tracking your spending helps you take control of your finances and see where your money is going. You can make better choices when you know what to look out for.

💡 Bonus Tip: Set a weekly "money check-in" to review your expenses and adjust your budget. Even 5 minutes a week can help you avoid overspending and take back control!

2. Using Your Credit Card as an “Emergency Fund” (Debt Mistake #1)

Now this is one I’m sure we’re all guilty of at some point in our lives.

When an unexpected expense—like car repairs, medical bills, or home maintenance—comes up, you swipe your credit card because you don’t have enough savings. Then, you’re stuck paying high-interest debt for months because you were not prepared.

Credit card interest rates can be 20% or higher - terrible, right?, meaning that a small emergency can turn into a long-term financial burden. Instead of building wealth, you’re paying interest to the bank.

Fix It: Start building your Emergency Fund

An emergency fund acts as a financial safety net so that when unexpected expenses pop up, you can cover them without going into debt. Start small: Aim for $1,000 as a short-term goal, then build up to 3-6 months of living expenses. Careful though: an emergency-fund should do what it was intended for - cover emergencies, not your annual trip to Cabo with your friends.

💡 Bonus Tip: Automate, automate, automate! Set up a small automatic transfer—even $10 per week adds up over time.

3. Not Having a Budget or Financial Plan (Biggest Personal Finance Mistake Ever)

You get paid (fun!), cover your bills, and then spend whatever’s left—without any clear financial goals or budgeting strategy (not so fun).

Without a money management plan, it’s easy to overspend in one area and neglect important financial priorities, like saving for retirement, paying off debt, or investing. You may have the best intentions, but if you don’t prioritize your goals, no one else will do it for you.

Fix It: Use a Simple Budgeting Method

A budget doesn’t mean restricting yourself—it just means giving every dollar a purpose.

💡 Bonus Tip: Set short-term and long-term financial goals—like paying off debt, saving for a vacation, or buying a house. It could be whatever you want. Having a goal makes budgeting that more motivating, and it will help you stay on track.

Final Thoughts: Fix These Money Mistakes & Take Control of Your Finances

Fixing these common financial mistakes doesn’t require a complete lifestyle overhaul—just a few smart changes can put you on the path to financial stability and wealth-building.

✅ Track your spending with a budgeting app
✅ Build an emergency fund to avoid credit card debt
✅ Create a budget and set clear financial goals

By making simple changes, you’ll spend smarter, save more, and build a secure financial future! Every small victory will lead you to your big goals, you just need to start!