3 Money Mistakes to Avoid – If Not, They Can Cost You

We are going to use a New Year’s resolution to help explain 3 money mistakes to avoid. As the New Year approaches every year, there is one question that is typically asked. That question is, “What is your New Year’s resolution?” We all have a goal or something we want to accomplish, but how many times do we cross it off? How long do we wait after the New Year before we push it to the side of forget about it? I bet for most of us, probably by the end of January. I am guilty of this myself!

Let’s take the most common New Year’s resolution out there, losing weight and getting in shape.

Money Mistake to Avoid #1 – Overvaluing the Small Decisions

Times when we have a goal or something we want to accomplish, we can become so focused on the small decisions. When we do this, we can end up getting overwhelmed and tired of living that way. Moreover, we more than likely will end up giving up.

We may take on this New Year’s resolution by starting a completely new diet that requires us to buy food that we do not typically eat and signing up for a gym membership that sometimes turns into an unused reoccurring bill after January. To make this New Year’s resolution not as overwhelming and more likely to stay, we can focus on more attainable decisions and wins. For example, not overeating or snacking excessively throughout the day, increasing our water intake, and exercising more by going on a walk or run, or doing workouts at home.

In terms of our finances, it is easy to want to obsess over the small decisions that may come up. Buying off-brand items, 2-for-1 deals, 50% off, an annual sale, and the list can go on and on. These are all great things to take advantage of when we need the items or plan to purchase them anyway. However, it is not going to make or break the success of our financial journeys.

Money Mistake to Avoid #2 – Relying on Our Willpower

Back to our example of starting a new diet and signing up for a gym membership. To keep these going consistently, it requires self-discipline, desire, determination, and a willpower from us individually to do so. If we want to start a completely new diet and not eat any “bad” foods, we must overcome the daily temptation to eat what we were just eating before the New Year. Many times, we will start off great for a week or so, and then we will give into a craving and say it will only happen this one time. However, a week later, we have now given into the craving twice. Before we know it, we keep giving in and just decide to throw in the towel.

For our finances, we do not want to feel like we are depriving ourselves. We also do not want to feel like it is going to take every piece of our being to be financially successful. I want all of us to be saving money and reaching our financial goals without guilt, shame, stress, or frustration. I do not want anybody stressing over their $3 morning coffee. If we are doing this on a daily basis, the “cravings” could eventually take over to the point that we end up giving up on reaching our financial goals.

Money Mistake to Avoid #3 – Playing the Waiting Game

Procrastination is the game that many of us play in many different areas of our lives. Some say they thrive when they procrastinate, and others say they get overwhelmed. Whichever person you are, some things should not be added to the list of procrastination.

Let’s first relate this point back to the New Year’s resolution. The longer we procrastinate in starting our New Year’s resolution, the longer this area will be a thorn in our side. Even worse, the more likely that we will never get to it. When we all make a resolution, we are doing it because we want to improve that area of our life. We realize that it is important, but for some reason we procrastinate.

In our finances, procrastination is one of the worst things that we can do. The sooner we become more knowledgeable about our finances, the greater the impact will be. Every year that we wait to get started saving, paying off debt, investing, and reaching other financial goals, we are holding back the potential of our financial future.

The earlier we start focusing on our finances, I guarantee you, the better off we will be! Do not feel ashamed, guilty, embarrassed, or stressed. Everybody has their own unique financial journey, and I want to help you be successful on yours!