The 5 most common money mistakes to avoid

The 5 most common money mistakes to avoid
Published Thursday, August 19, 2021
by Feature Staff

For many people across the world, managing money seems impossible. Just thinking about money can resurface feelings of doubt and self-consciousness. For that reason, many people are careless with their finances, unable to see how their purchasing decisions today will affect them in the future. Read on to learn the five most common money mistakes to avoid.

Frivolous spending

People may not realize how quickly their fortunes can slip through their fingers. Eating out multiple times a week or buying that cool shirt you saw in the window may not seem like grave mistakes, but all that money will accumulate. Even spending $25 a week on coffee drinks can add up to $1,300 a year. That's money one could use toward credit card or auto payments.

Living on borrowed money

Using credit cards to buy essentials is now commonplace. People swipe their credit cards for such vital expenses as groceries and gasoline. But relying so much on borrowed money isn't financially wise. The interest rates on credit cards can make the charges much more expensive in the long run. By using credit cards, some people even end up spending more than they earn.

Buying a vehicle that hasn't been inspected

Too often, people impulsively buy vehicles based on "gut feelings." The thrill of potential vehicle ownership can shroud anyone's better judgement. But you must never buy a vehicle, used or otherwise, until a mechanic has thoroughly vetted it. Especially for pickup trucks and other vehicles that one may use professionally, one of the most common purchasing mistakes is failing to have the machine properly inspected.

Overpaying for a house

When it comes to a house, it's best to be conservative with your spending. Bigger doesn't necessarily mean better. A large family is a legitimate reason to choose a bigger home, but if that's not your reality, you're much better off choosing something smaller.

Not having a plan

Of all the most common money mistakes to avoid, one of the most prevalent and dangerous is not having a plan. People with good handles on their money know they need to frequently take a little time out of their daily lives to analyze their finances. You should have financial goals and plans to carry you there. may earn an affiliate commission if you purchase products or services through links in an article. Prices, when displayed, are accurate at the time of publication but may change over time. Commissions do not influence editorial independence.

The Kiowa County Press is an independent newspaper published in Eads, Kiowa County, Colorado, and to the world at