Don’t Repeat These Financial Mistakes This Year

In this article: A few common financial mistakes that can make a tough economy even tougher on your finances and how to avoid them.

by Andrea Norris-McKnight

According to a Bankrate survey, about two-thirds of us don’t expect our financial situation to improve in 2024.

It’s no surprise. Prices and loan interest rates remain high. Many companies anticipate layoffs this year. You’ll have enough financial hurdles without adding financial mistakes to the mix, especially financial mistakes you’ve made before.

Here is a look at a few common financial mistakes that can significantly impact your budget — and not for the better. If you’ve made any of these missteps in the past, avoid repeating them this year because some of them can hurt your finances for years.

1. Failing to Always Pay Yourself First

Do you wait until the end of the month to see how much money you have left for savings? Too often, you may find it isn’t much and that your savings account balance is growing much slower than it should or could be.

Find out how to make ‘pay yourself first’ work for you.

2. Neglecting Your Budget

Perhaps you have a budget but, too often, don’t keep up with it. When you finally log all your expenditures, the month is over, and you’re over budget.

If this sounds like you, read up on these reasons you can’t stick to your budget and what you can do about it.

3. Borrowing More Than You Can Reasonably Afford

Overborrowing leads to loan defaults and bad credit for some folks, but it is often a much more subtle problem for others. The bigger the loan payment, the less money for savings, day-to-day expenses and discretionary spending.

If you’re buying a new home or car this year, carefully consider how much house or car you can reasonably afford while still saving for emergencies, retirement and other financial goals, and having a little fun money.

These guidelines can help determine how much house you can afford. Also, consider this car-buying strategy that can help you eliminate car payments entirely.

4. Ignoring Your Financial Situation

When your financial situation is precarious, do you ignore it and hope it magically improves? It’s essential to remain as focused on your finances during tough times as you do during prosperous times, if not more so. Ignoring your finances will just make a bad situation worse.

Use these tips to stop burying your head in the sand about your finances and face your financial fears.

Don’t Repeat These Financial Mistakes This Year

You don’t know what the economy and job market will do to your finances this year, but you can avoid financial mistakes. By taking charge of your finances and keeping these common mistakes in mind as you make money decisions, you can better weather any financial storm you may experience this year.

Read next:

• Moving Past Financial Missteps and Regrets
• How To Break Bad Financial Habits
• Throwing Good Time and Money After Bad

Reviewed January 2024

About the Author

Andrea Norris-McKnight took over as the editor of The Dollar Stretcher and After 50 Finances after working under the site founder and previous editor for almost 15 years. She has also written for Money.com, GOBankingRates.com, HavenLife.com and The Sacramento Bee.