7 Money Mistakes You Need To Stop Making


Success is determined by your habits. Many people have taken on some of the bad habits that constantly hinder them from reaching financial stability and financial freedom. Most people don’t realize that the habits they have become accustomed to is deterring them from reaching their financial goals because these habits are not that noticeable. Each time someone does one of the habits, such as using a credit card even though you have the money, there isn’t a noticeable amount of money taken from your bank account.

It’s sort of like a ritual, and some people are making money mistakes that are costing them big financially because they have gotten into the habit of making these simple money mistakes. You don’t notice the little amount of money being taken away every week, but it does add up. Benjamin Franklin once said “Beware of the little expenses for a small leak can sink a great ship.”

The problem is that a lot of people do not notice the small leaks that’s constantly punch small holes in their sailing ship to financial independence, because these same small money mistakes have become habit. This article will share some things that you may be doing that is keeping you away from financial freedom. These are the money mistakes you should stop doing now.

Stop Using a Credit Card When You Have the Money

Many people have become accustomed to using their credit cards when they don’t have to. You see it and even do it all the time, and so many have become victim to credit card debt. Everyone love to see money in their pockets or bank account, never wanting to touch it because it makes you feel powerful.

So, when you go out to buy something you never want to touch that money and tell yourself that if you put it on a credit card, you have the ability to save even more. People use their credit cards, telling themselves they are going to pay a little at a time on the credit card in order to let their money build. This is one of the biggest money mistakes. The credit card is one of the biggest financial enslavement schemes.

Unless you have a magical credit card that does not build interest, you are making a mistake. You are being psyched out by your bank account and paying money on interest that can be going into your pockets. Try to stop using credit cards and only use cash. Use credit on big purchases and emergencies.

Stop Being Late On Paying Credit Cards or Loans

Many people do not have automatic payments set up to pay their credit cards or loans. They’d rather spend time manually paying off credit cards and loans. Well, that can be a mistake because as humans, we are prone to make mistakes and forget to pay our bills on time. Forgetting to pay those credit cards and loans on time will have you paying late fees. Paying the late fees on a credit card or loan is like giving away free money. Stop making this money mistake and set up automatic payments and get out of debt.

Stop Forgetting To Cancel Memberships

Do you remember that membership you got for that service you never used? Yea, me neither and guess what…you never cancelled. Make sure to always check your monthly bank account statements to make sure that all memberships are cancelled that you have no use for, even if its just $3 /month. This is a money mistake and you are giving away free money.

Stop Filing Taxes Late

This is a simple one, but there are so many people that are late filing taxes and let the government charge them a late fee. You either forget or say you’ll eventually get around to it only to realize its past the tax filing deadline. Make sure to file and pay your taxes on time. This is a money mistake and you are giving away free money.

Stop Spending Every Extra Penny You Make or Find

Stop spending any extra dollar you earn or get. Don’t be the type of person that finds a $20 bill on the ground, pick it up and go spend it. Don’t be the type of person that gets that unexpected paycheck or refund and go spend that too. That is a money mistake because every unexpected extra dollar that you receive could bring you that much closer to your financial goals. Learn to spend all your money wisely and save to invest. Build enough cash-producing assets that will allow you to buy anything you want.

Stop Paying For the Cable Channels You Don’t Watch

There are a lot of people who get every channel with their cable network because they thought they had gotten a good deal. If you do not watch every channel, why pay extra for every channel? You may be getting a deal, but the better deal is saving money in your pocket. Get rid of those cable channels you don’t watch and save more money.

Use Those Coupons When You Go Shopping

Those coupons that you have stored in your drawer that you never use when you go shopping or grocery shopping, use them! Those coupons are allowing you to put extra money in your pockets and when you don’t use them, you are basically giving away free money.

Take Away

When you stop and look at your money habits, you can see just exactly what you can do to help you save just a little more money. Getting rid of these small money mistakes will help you a lot more than you could have imagined. You will begin to save more and will become closer to your financial goals. Here is a re-cap:

  • Stop using a credit card when you have the money
  • Stop being late on credit cards and loans
  • Stop forgetting to cancel memberships
  • Stop filing taxes late
  • Stop spending every extra penny you make or find
  • Stop paying for the cable channels you don’t watch
  • Use all those coupons when you go shopping

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I am an entrepreneur, philanthropist, and the founder of DreamsAre4Real.com. As a graduate from Michigan State University, for the past 4 years I have dedicated my life to personal development, studying what it takes to become successful, understanding psychology, and how to stay motivated in order to achieve anything in life. I believe and most certainly have a passion for reaching my full potential, and I want to inspire others to do the same.

Discussion2 Comments

  1. This is a great post Lawrence, a lot of insights that can help people out a ton when it comes to managing their money.

    I recently cut back on cable to the most basic of packages since my wife and I realized that we never watch any of the premium channels at all. Instead, we restarted out Netflix subscription and cut almost $100 from our monthly cable bill…which is not a ton, but over time it definitely adds up.

    If we learn to cut back and only keep what we use, we can end up saving a lot in the long run.

    I like the quote you used from Benjamin Franklin: “Beware of the little expenses for a small leak can sink a great ship.” – definitely a great eye opener type of quote.

    I’ve also seen people use their credit cards for everything in order to feel like they are actually saving money, but in reality they are just pushing themselves further into debt. The only reason I really use credit cards now is for the benefits and when I can pay them off immediately – for example, to accumulate cash back. It takes a lot of persistence to get in the routine of using and then paying on it immediately, but can be worth it.

    Once again, great post and definitely an eye opener for people that are making these mistakes.

    I look forward to reading more from you!

    – Jeff Jones, Self Help Empire

    • Jeff,

      That is wonderful that you were able to cut back on your bills and save up some money. Yes, they are little cutback, but like you said, they will definitely help in the long run. You can use this extra $100 to put into an investment account or your retirement fund. The key thing is to save in order to make MORE with what you save by investing it.

      Yes, I like that quote as well by Benjamin Franklin. Small leaks in your personal finances can really put a damper on your financial goals.

      Yes, there are numerous of ways to use a credit card in order to build BETTER credit and to accumulate cash back, but should never be used without a purpose. Having debt is financial slavery and you will be giving away money paying on interest.

      I am glad that you were able top share your experience here and read the post thoroughly. Thanks for reading and commenting!

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