The 5 Biggest Money Mistakes I Made And How I’m Fixing Them

Managing money can feel overwhelming, especially when you’re learning through trial and error. Reflecting on my financial journey, I’ve pinpointed five common money mistakes that caused stress and stalled my progress. From neglecting budgets to impulsive spending, these habits were subtle but costly. The good news is that mistakes are part of growth, and I’m sharing how I’m turning things around to build wealth. If you’re navigating your finances or want to avoid these pitfalls, here’s my story to guide you.

1. Skipping a Budget - Managing Money Without a Plan
I used to think budgeting was too restrictive or complex, so I relied on mental tracking or wishful thinking. Unsurprisingly, this led to overspending and monthly surprises when bills piled up. Without a clear plan, I felt anxious and out of control.

How I’m Fixing It:
I now use a simple budgeting app to track every expense, from groceries to subscriptions. I categorize spending into “Needs,” “Savings,” and “Wants” to gain clarity. This approach has eliminated financial stress, helping me save consistently and prepare for emergencies. Budgeting is now my roadmap to financial success. I have been using You Need A Budget app for the past few months and its working great for me. You could also test it wih a free trial using this link https://www.ynab.com/ and start your budgeting journey.

2. Avoiding Investing — Missing Out on Wealth-Building
I once believed investing was only for the wealthy or financially savvy. “I don’t earn enough to invest,” I told myself, letting my money sit idle in a low-interest savings account. This mindset cost me years of potential growth through compound interest.

How I’m Fixing It:
I’ve started small with beginner-friendly investment options like index funds and micro-investing apps. By setting aside a small portion of my income monthly, I’m building a habit of investing. Learning about compound interest and low-risk strategies has empowered me to grow my wealth over time. To overcome my fear of investing I have explored global apps that index funds and micro investing accessible. https://www.acorns.com/  and https://www.etoro.com/ enable you to invest spare change into diversified etfs perfect for beginners.

3. Impulse Spending — Chasing Short-Term Thrills
Impulse purchases, like grabbing a trendy gadget or dining out on a whim, were my weakness. I justified these as “treats,” but they drained my savings and left me with buyer’s remorse. This cycle of spending and guilt was hard to break.

How I’m Fixing It:
I adopted a 24-hour rule: I wait a day before buying non-essentials. This pause helps me prioritize needs over wants. I also focus on free joys, like quality time with friends or low-cost hobbies. Curbing impulse spending has boosted my savings and financial confidence.

4. Believing I Couldn’t Save or Invest on a Low Income
“I don’t make enough to save or invest” was a limiting belief that kept me stuck. I thought wealth-building was for high earners, not someone like me scraping by. This mindset prevented me from taking action.

How I’m Fixing It:
I started with micro-savings—$5 or $10 weekly—and explored side hustles to boost my income. I’ve learned that small, consistent steps matter more than income size. Shifting to an abundance mindset has motivated me to save, invest, and pursue better financial opportunities. I have explored out free lancing gigs on https://www.upwork.com/  and I have found it helpful to contribute to my side income.

5. Neglecting Financial Education — Stumbling in the Dark
I used to avoid learning about personal finance, assuming it was too complicated or dull. This left me repeating mistakes, relying on luck instead of strategy. Financial ignorance was my biggest roadblock.

How I’m Fixing It:
I now dedicate time to financial education through free resources like podcasts, YouTube channels, and blogs on budgeting, investing, and money management. Gaining knowledge has made me confident in my decisions, from avoiding scams to planning for long-term goals. I usually listen to https://www.youtube.com/@TheRamseyShowEpisodes which is free and offers such valuable knowledge and many other podcasts and youtube shows.

Turn Your Money Mistakes Into Growth
Money mistakes are universal, especially when you’re starting out. What matters is recognizing them and taking action. My financial journey isn’t perfect, but each lesson has brought me closer to stability and freedom. If you relate to these mistakes, don’t lose hope. Start small, keep learning, and take control of your financial future today.