{"id":13532,"date":"2020-08-21T10:53:01","date_gmt":"2020-08-21T15:53:01","guid":{"rendered":"https:\/\/www.netcredit.com\/blog\/?p=13532"},"modified":"2026-02-24T15:16:37","modified_gmt":"2026-02-24T21:16:37","slug":"finance-mistakes-cost-money","status":"publish","type":"post","link":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/","title":{"rendered":"Personal Finance Mistakes That Cost You Money"},"content":{"rendered":"<p>Managing a budget is difficult if you\u2019re not making progress and seeing the results you want. After all, why put in the effort to track your expenses and create a financial plan if it doesn\u2019t make an impact?<\/p>\n<p>In reality, your budget doesn\u2019t limit you \u2014 it enables you to live the life you really want. Think of it an essential tool that helps plan your finances.<\/p>\n<p>Not seeing the desired results with your current budget? We\u2019ll cover eight of the most common budgeting mistakes that can cost you, and what to do to avoid them.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>1. Your Emergency Fund Is Insufficient (Or Nonexistent) <\/strong><\/h2>\n<p>You\u2019ve probably heard it many times before: Save money for emergencies, unexpected expenses and a potential loss of income.<\/p>\n<p>Building an emergency fund is one of the most fundamental personal finance rules you can follow. Your emergency fund can be a <a href=\"https:\/\/www.netcredit.com\/blog\/how-to-budget\/\">budget<\/a> buffer that prevents you from going in the red or falling behind on payments. If your emergency fund is insufficient, you\u2019ll spend more money to borrow money when the need occurs.<\/p>\n<p>Your emergency fund is ideally easy to access and ample enough to help support you in case of <a href=\"https:\/\/www.netcredit.com\/blog\/how-to-earn-more-money\/\">job loss<\/a>. While it may seem steep, most personal finance experts recommend aiming for roughly three to six months\u2019 worth of <a href=\"https:\/\/www.netcredit.com\/blog\/cost-of-living-calculator\/\">living expenses<\/a>. If you don\u2019t have an emergency fund at all, start with a goal of $500 to $1,000, and build it up from there.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>2. You Don\u2019t Leave Room for Fun in Your Budget<\/strong><\/h2>\n<p>An unrealistic budget without <em>any wiggle room<\/em> for small rewards or entertainment isn\u2019t going to help you in the long run. There may be times when you need to save <strong>every extra penny<\/strong> to meet a financial goal or quickly pay down debt, but most of the time, it\u2019s better to budget for small rewards and entertainment.<\/p>\n<p>While it may seem counterintuitive, extreme budgeting for extended time periods can take its toll on your patience and willpower. Rewarding yourself once in a while with a small purchase or experience can be incredibly motivating, but it\u2019s important not to go overboard and ruin your budget.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>3. You Don\u2019t Review and Adjust Your Finances<\/strong><\/h2>\n<p>Starting a budget is just like learning a new skill \u2014 the more you practice, the better you are at managing and planning your finances. When you\u2019re just starting to follow a budget, it might feel like trial and error until you find the right formula that helps meet your goals. Sometimes, what seemed like a good strategy before might not be worth practicing in the future.<\/p>\n<p>When you grow more accustomed a frugal lifestyle, it starts to feel less like limiting yourself or cutting back and a lot more like you\u2019re making smart choices. If you haven\u2019t sat down and reviewed your budget and savings plan more than a few months, take the opportunity to do so now.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>4. You\u2019re Not Maximizing Your Tax Returns<\/strong><\/h2>\n<p>You might be able to get a bigger tax return or offset any tax payment by using the appropriate <a href=\"https:\/\/www.cashnetusa.com\/blog\/5-tax-deductions-remember\/\" target=\"_blank\" rel=\"noopener noreferrer\">tax deductions or credits available to you<\/a>. For example, if you looked for a job or continued your education in the past year, you may be able to offset expenses when it comes time to file your return.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>5. You Don\u2019t Prioritize Your Goals<\/strong><\/h2>\n<p><strong>\u00a0<\/strong><\/p>\n<p>It\u2019s easy to lose track of long-term goals when managing your busy day-to-day life. After all, you don\u2019t have a specific plan or savings goal other than simply living within your means.<\/p>\n<p>In reality, budgeting with specific, measurable goals in mind can motivate you to reach them. <a href=\"https:\/\/www.netcredit.com\/blog\/how-to-prioritize-financial-goals\/\">Prioritizing goals<\/a> can also help determine how long or at what rate you\u2019ll need to save for them. For example, research the estimated amount of money you\u2019ll need to <a href=\"https:\/\/www.cashnetusa.com\/blog\/guide-to-retiring-by-decade\/\" target=\"_blank\" rel=\"noopener noreferrer\">retire comfortably<\/a>, and work towards that.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>6. You\u2019re Not Growing Your Savings<\/strong><\/h2>\n<p>While it\u2019s a good idea to keep your money safe in an FDIC-insured account, most standard checking and savings accounts don\u2019t provide any interest (or hardly any interest) on your money. Instead, use a <a href=\"https:\/\/www.bankrate.com\/banking\/savings\/best-high-yield-interests-savings-accounts\/\" target=\"_blank\" rel=\"noopener noreferrer\">high-interest savings account<\/a> for a better return on your money while it\u2019s safe in the bank and still relatively easy to access. These types of accounts are available online and at some brick-and-mortar financial institutions.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>7. Not Planning for Seasonal Expenses<\/strong><\/h2>\n<p>Seasonal expenses that aren\u2019t part of your budget will come to you as a surprise. Quarterly, annual or other sporadic expenses can be hard to manage if you don\u2019t have extra wiggle room or money saved for a rainy day. While you may not be able to plan for all seasonal expenses, the following list gives an idea of some irregular and seasonal expenses to consider in your budget:<\/p>\n<ul>\n<li>Insurance payments<\/li>\n<li>Car and home repairs or winterization<\/li>\n<li>School expenses<\/li>\n<li>Summer vacation, camp or entertainment for the kids<\/li>\n<\/ul>\n<p>Make a note of any additional seasonal expense you encounter that\u2019s not already in your budget so you can plan for them in the future.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>8. You\u2019re Working at It Alone<\/strong><\/h2>\n<p>Following a budget and working towards your financial goals should be a coordinated effort. If you have a family, your whole unit should be on board with your financial plan. If you\u2019re single, surrounding yourself with like-minded, frugal friends can help keep you on track to meet your goals.<\/p>\n<p>&nbsp;<\/p>\n<p><em>The information in this article is provided for educational\u00a0and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial, legal\u00a0or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Managing a budget is difficult if you\u2019re not making progress and seeing the results you want. After all, why put &#8230;<\/p>\n","protected":false},"author":16,"featured_media":13534,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[626],"tags":[688,186,687,144,686,110],"class_list":["post-13532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-improving-finances","tag-borrow-money","tag-budgeting-tips","tag-overspending","tag-personal-finance","tag-personal-finance-mistakes","tag-saving-money"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","pp_post_mime_type":"publish","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Personal Finance Mistakes That Cost You Money - NetCredit Blog<\/title>\n<meta name=\"description\" content=\"Not seeing the desired results with your current budget? 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Read about eight common personal finance mistakes, and how to avoid them.","og_url":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/","og_site_name":"NetCredit Blog","article_published_time":"2020-08-21T15:53:01+00:00","article_modified_time":"2026-02-24T21:16:37+00:00","og_image":[{"width":750,"height":393,"url":"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2020\/08\/20-00507_02_USN_NC-XX-Budgeting-Errors-that-Are-Costing-You-1a01.jpg","type":"image\/jpeg"}],"author":"Bonnie","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Bonnie","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/#article","isPartOf":{"@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/"},"author":{"name":"Bonnie","@id":"https:\/\/www.netcredit.com\/blog\/#\/schema\/person\/5793b414c3261c1d488c20d223b88405"},"headline":"Personal Finance Mistakes That Cost You Money","datePublished":"2020-08-21T15:53:01+00:00","dateModified":"2026-02-24T21:16:37+00:00","mainEntityOfPage":{"@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/"},"wordCount":989,"image":{"@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/#primaryimage"},"thumbnailUrl":"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2020\/08\/20-00507_02_USN_NC-XX-Budgeting-Errors-that-Are-Costing-You-1a01.jpg","keywords":["borrow money","budgeting tips","overspending","personal finance","personal finance mistakes","saving money"],"articleSection":["Managing Finances"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/","url":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/","name":"Personal Finance Mistakes That Cost You Money - NetCredit Blog","isPartOf":{"@id":"https:\/\/www.netcredit.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/#primaryimage"},"image":{"@id":"https:\/\/www.netcredit.com\/blog\/finance-mistakes-cost-money\/#primaryimage"},"thumbnailUrl":"https:\/\/www.netcredit.com\/blog\/wp-content\/uploads\/sites\/3\/2020\/08\/20-00507_02_USN_NC-XX-Budgeting-Errors-that-Are-Costing-You-1a01.jpg","datePublished":"2020-08-21T15:53:01+00:00","dateModified":"2026-02-24T21:16:37+00:00","author":{"@id":"https:\/\/www.netcredit.com\/blog\/#\/schema\/person\/5793b414c3261c1d488c20d223b88405"},"description":"Not seeing the desired results with your current budget? 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