Some money mistakes to avoid are:
- Buying a new car.
- Leasing a car.
- Not maintaining a car.
- Replacing your car before you’ve paid it off.
- Giving into impulsive purchases.
- Spending without a budget.
- Making hasty decisions when purchasing items, especially large ticket items.
- Buying something new before selling the old item.
- Having too many credit cards.
- Seeking high loan-to-value ratio (cars and houses).
- Buying too much.
- Having a short-term focus instead of a long-term focus. This leads to:
- Having insufficient savings.
- Having the wrong understanding of the cost of credit and power of compound interest.
- Failing to develop a debt pay-off plan.
