Money can be complicated — especially when you’re learning as you go. Looking back at my financial journey, I realize I made some big mistakes that slowed my progress and caused unnecessary stress. These mistakes weren’t dramatic—they were everyday habits and beliefs that kept me stuck. From not budgeting to impulsive spending, from ignoring investing to thinking I was making too little to start building wealth, these errors shaped much of my financial struggle.
But here’s the thing: making mistakes is part of the journey. What matters is what you do next. In this post, I’m going to share the five biggest money mistakes I made, the lessons I learned, and the practical ways I’m fixing them now. If you’re struggling with your finances or just want to avoid these pitfalls, I hope my story helps you.<
1. Not Budgeting — Flying Blind With My Money
For the longest time, I thought budgeting was restrictive or complicated. I assumed I could just “keep track” in my head or hope for the best. Spoiler alert: it didn’t work.
Without a budget, I had no clear picture of where my money was going. I’d often find myself surprised at the end of the month, wondering why I had so little left or why unexpected expenses wiped out my savings. This lack of control caused anxiety and made me avoid even looking at my finances closely.
How I’m fixing it:
I started using a simple spreadsheet to track every expense—literally every coffee, bus fare, or phone bill. Setting up categories like “Essentials,” “Savings,” and “Fun” helped me see where my money was going. It was eye-opening. I realized I had been spending way more on small, unnecessary things than I though Now, budgeting isn’t a punishment; it’s a tool that gives me peace of mind and control. I can plan for emergencies, save consistently, and avoid that end-of-month panic.
2. Not Investing — Letting My Money Sit Still
Early on, I thought investing was only for people with lots of money or fancy degrees. I kept telling myself, “I’m making too little; I can’t afford to invest yet.” That belief kept me from ever exploring how my money could grow instead of just sitting in a bank account earning almost nothing.
The truth is, the earlier you start investing, the better—even small amounts add up over time thanks to compound interest. By delaying, I missed out on years of growth.
How I’m fixing it:
I began educating myself on simple investment options—starting with low-risk, low-barrier choices like savings plans, mutual funds, or micro-investing apps. I set aside a small portion of my income each month specifically for investment.
It’s not about getting rich overnight; it’s about building a habit and allowing my money to work for me. This shift from just saving to actively growing my wealth has been empowering.
3. Buying on Impulse — Giving in to Instant Gratification
Impulse buying was one of my biggest financial pitfalls. Whether it was that cute pair of shoes, a last-minute snack, or a “sale” item I didn’t need, I found myself spending money without thinking twice. I justified it as a small reward or a moment of happiness, but those moments added up.
Impulse purchases not only drained my funds but also left me feeling guilty afterward. It became a cycle of spending and regret that I struggled to break.
How I’m fixing it:
I started practicing a simple rule: wait 24 hours before making any non-essential purchase. If I still want it after a day, I reconsider. This pause helps me distinguish between genuine needs and fleeting wants.
Additionally, I’m learning to find joy in non-material things—like spending time with loved ones or pursuing hobbies that don’t require spending. Breaking free from impulsive buying has helped me save more and feel more in control.
4. Thinking I Was Making Too Little to Save or Invest
One of the biggest lies I told myself was, “I don’t make enough money to save or invest.” It’s easy to feel stuck in that mindset, especially when your income barely covers your expenses. This belief kept me from even trying to build better money habits.
But I’ve realized that wealth-building isn’t about how much you make—it’s about what you with what you have. Small, consistent actions can lead to meaningful results.
How I’m fixing it:
I started by setting realistic, tiny goals. Even saving $5 or $10 a week felt like a win at first. I also looked for ways to increase my income—whether through side hustles, freelancing, or improving skills for better-paying jobs.
Changing my mindset from scarcity to abundance has been critical. I’m learning that it’s not the amount but the consistency and discipline that matter most.
5. Ignoring Financial Education — Learning by Trial and Error
For a long time, I treated money like a mystery—something I just had to deal with but didn’t fully understand. I avoided reading about personal finance because it seemed complicated or boring. That meant I repeated the same mistakes over and over, relying on luck rather than knowledge.
The truth is, financial education is one of the best investments you can make in yourself. It equips you with the tools to make smarter choices, avoid scams, and build wealth sustainably.
How I’m fixing it:
I committed to learning regularly, using free resources like blogs, YouTube channels, podcasts, and books. Some favorites are personal finance basics, budgeting tips, and investing for beginners.
By gradually building my financial knowledge, I’ve become more confident and proactive about managing money. Education is no longer optional for me—it’s a priority.
Conclusion: Your Money Mistakes Don’t Define You
Making money mistakes is normal, especially when you’re starting out or facing challenges. What matters is recognizing those mistakes and deciding to do better. My journey hasn’t been perfect, but every lesson learned has brought me closer to financial peace and freedom.
If you see yourself in any of these mistakes, don’t be discouraged. Start small, keep learning, and remember: you are capable of changing your money story, no matter your income or past errors.
