“I’ll deal with it later.”
We’ve all said it. Especially when it comes to money.
But here’s the thing—those little money choices you make today? They sneak up on you. A few years from now, you might look back and think, “Why didn’t I just handle that earlier?”
So let’s talk about 7 common money mistakes people regret—and how to avoid them without turning your life upside down.
1. Waiting Too Long to Save for Retirement
When you’re in your 20s or even 30s, retirement sounds like some far-off fantasy land. It’s hard to care about something that’s 30+ years away.
But starting early is your secret weapon.
I didn’t open my IRA until I was 29, and I still kick myself for not doing it sooner. Just a few years of delay = thousands lost in compound growth.
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What helped:
- Opening a Roth IRA and automating just $50/month to start
- Taking full advantage of my job’s 401(k) match (free money = yes please)
- Using Fidelity’s app because it’s user-friendly (and I needed hand-holding)
2. Spending More Than You Make
Here’s a confession: There was a time I treated every paycheck like a reward for surviving adulthood. New tech? Dinner out? Why not?
Until my credit card balance said otherwise.
Why it stings:
Living paycheck to paycheck = anxiety. Add 20–25% interest on top of that? Yikes.
What actually helped:
- I tracked every single purchase for a week (painful but eye-opening)
- Tried the 50/30/20 rule: 50% needs, 30% wants, 20% savings/debt
- Killed off random subscriptions I forgot existed (sorry, 3rd meditation app)
3. Buying a Car That’s Too Expensive
A friend of mine bought a brand-new SUV after getting a raise. It looked amazing. Two years later? She had to sell it because the payments were eating her alive.
Cars are tempting, but they’re not an investment—they lose value the second you drive them off the lot.
What to consider instead:
- Buy used, reliable, and boring (your future self will thank you)
- Skip the fancy upgrades—Bluetooth works in a 2016 model too
- Save up for a big down payment to keep monthly costs low
4. Stretching Too Far for a House
Buying your first home is exciting… until the mortgage, repairs, and property taxes hit. Suddenly, “dream home” starts to feel like “debt prison.”
Real talk:
Owning is great, but not if it eats up all your breathing room. I’ve watched friends cry over surprise roof repairs they couldn’t afford.
What helped us decide:
- Capped our housing budget at 28% of gross income
- Budgeted for hidden costs (furniture, insurance, plumbing nightmares)
- Bought what we needed now, not forever—we can always upgrade later
5. Not Having an Emergency Fund
Life will 100% hit you with a “surprise” expense at the worst time.
Mine? My car broke down on the way to a job interview. I didn’t have an emergency fund, so I put $700 on a credit card I barely touched. Took me 5 months to pay it off.
What I did after:
- Started with a goal of just $1,000
- Opened a separate savings account to keep it “out of sight”
- Automated $25 a week—even small amounts build up over time
6. Avoiding Investing Because It Felt Scary
For a long time, “investing” sounded like a risky game for rich people or finance bros. I was afraid of losing money, so I just left it in savings.
Big mistake. Inflation eats your cash while you wait.
How I got over it:
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- Tried a robo-advisor (I used Betterment) to ease in
- Started with low-cost index funds (set it and forget it)
- Listened to one personal finance podcast per week while doing chores
7. Not Tracking My Net Worth
I used to judge my financial health by my income—big mistake. I didn’t realize I was bleeding money through debt and had nothing to show for it.
Knowing your net worth (what you own vs. what you owe) gives you the full picture.
How I started:
- Added up everything I owned: cash, retirement accounts, car
- Subtracted debt: student loans, credit cards, etc.
- Used the Empower app to track it quarterly and feel some dang progress
Mistakes Worth Avoiding
Here’s a quick summary of the things I wish I had tackled sooner:
- Waiting too long to save for retirement
- Living above my means
- Overspending on a car
- Stretching for a house I couldn’t afford
- Skipping the emergency fund
- Avoiding investing out of fear
- Not knowing my net worth
What You Can Do Today
If this list feels overwhelming, don’t panic. Pick one small thing and do it this week:
- Open a retirement account (even if you only put in $20)
- Set up an automatic transfer to savings
- Cancel one unused subscription
- Track your spending for 7 days
- Calculate your net worth just once—you’ll learn a lot
Small steps. Big future rewards.
Let’s Talk
What’s one money habit you’re trying to improve right now?
Drop it in the comments or share it with a friend—maybe you’ll help someone dodge a financial facepalm.
Quick FAQ
Q: I’m in my 30s and haven’t started saving for retirement. Am I screwed?
A: Nope. The best time was yesterday. The second-best time is now. Start small—consistency matters more than perfection.
Q: Should I save or pay off debt first?
A: Do both if you can. Start with a mini emergency fund, then crush high-interest debt. Once that’s under control, ramp up your savings.
Q: How much should I have in an emergency fund?
A: Start with $1,000. Then aim for 3–6 months of living expenses if possible. Peace of mind is priceless.