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Top 10 Financial mistakes

In my experience, if you want an easier life, don't do any of the things below!  This is a list I compiled of financial mistakes people make all the time that can usually be avoided.  
  1. Putting off saving for the future
    1. Especially Roth IRA or matched 401 K!
      1. Employer paid benefits are the best free money
    2. Time value of money - rule of 72
    3. Not building an emergency fund
  2. Accumulating debt when not absolutely necessary
    1. For credit card debt always pay in full monthly
    2. “It is the debtor that is ruined by hard times.”  
    3. Times have changed as far as Americans attitude toward mortgages.  Do the math on the tax savings of a mortgage and see what it really means.
    4. Proverbs 22:7 "The borrower is servant to the lender"
  3. Not investing
    1. You want your money to work for you.
  4. Making bad investments
    1. AKA - educate yourself before buying
    2. Examples
      1. time shares
      2. certain insurance products like annuities.
    3. Do NOT trust that someone else can handle your finances better than you.  This will surely lead to bad investments.
  5. Putting all your eggs in one basket
    1. Having all your money in your employer stock would be an extreme example.
  6. “Marginal propensity to consume” - Typical Americans spend more when they make more money.  If they could save more when they make more they would be happier/better off.
  7. No financial plan or goals.
    1. This goes beyond a budget.  Need to know what your goal is.  Want to retire early?  Want to start your own business?
    2. How can you manage where you are if you don’t know how you are doing at least monthly?
  8. Living beyond your means
    1. Simple – spend less than what you make
    2. People who save 50% of what they earn are able to retire REALLY early and comfortably.  “Work to live, don’t live to work”
    3. Spending money you don’t have yet, even if you expect to get it in the future (like an annual bonus)
  9. Paying bills late
  10. Being overly generous with your treasures
    1. Take care of your needs first so someone else doesn't have to take care of you.
      1. This includes saving for retirement (or other personal goals) before saving for someone else education.
    2. “Christmas is the season when you buy this year’s gifts with next year’s money.” - kinda ties in #9, but makes this point too. 
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