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5 Most Common Financial Mistakes & How To Overcome Them

June 12, 2019 We all make mistakes when it comes to managing money. Stuff happens. But dwelling on the past won’t get you where you want to go. Instead, empower yourself to navigate common money problems, so you can move forward instead of looking back. Here are some of the most common financial mistakes and tips on how to avoid them:

Mistake 1: Racking up Credit Card Debt

It’s tempting to overspend when credit cards provide instant gratification and allow you to delay the consequences until next month. But this can lower your credit score, which can hurt you in the long-run by making it harder when you want to apply for a mortgage or auto loan. One way to is to make payments every two weeks, each totaling half your monthly payment, instead of just one payment per month. This method allows you to reduce the amount owed on a credit card at a faster rate and reduce the interest that otherwise would have added up. Need help making the math work? Check out these .

Mistake 2: Not Having an Emergency Fund

Emergencies are bound to happen – it’s just a matter of when. Not having an emergency fund can leave you in a tough situation in the event of a job loss or unexpected healthcare expense.  Set up an into an emergency fund from your paycheck now. That way, you’ll be building up a cushion of savings without even thinking about it. When the time comes to use the money you put aside, you’ll be able to focus on addressing the issue without the added stress of worrying about money on top of everything else. Thanks, past self!  

Mistake 3: Putting All Your Savings in One Savings Account

Many people put their money in a savings account and then just let it sit there, but you could actually be losing out on money if you do it this way. Once you’ve set aside a nice chunk of change, diversify your savings by putting some money into a or . The higher interest rates that come with these accounts can help you earn more money faster, without the risks of investing in the stock market. High return + low risk = the best of both worlds!

Mistake 4: Not Prioritizing Retirement Savings

If you have an employer-sponsored retirement plan, start by putting in at least as much as your employer will match (employer match = free money!). Then, challenge yourself to increase your contribution by 1 percent any time you get a raise. Keep in mind that the road to career success isn’t always a straight line, so make sure to take money in your retirement fund with you when you move on to a new employer. You can also to save even more money on your own. This is a great option if your job doesn’t offer retirement benefits.

Mistake 5: Not Talking About Money

can feel taboo, but in reality, approaching these conversations with honesty, patience and empathy can take strain off your relationship and allow you to further your goals as a team. Unfortunately, talking about money can have even more stigma for women, but money is too important not to talk about. If you need support, schedule an appointment with a Summit Financial Coach, so you can ask questions in a no-judgment zone. Your will only improve with each step you take. We all make money mistakes – that’s a part of life. Knowing the common pitfalls to watch out for can help you move past your mistakes and start moving toward your best life. Want to talk it over with an expert?    with a Summit financial coach. You might also be interested in Whew – what a journey! has officially come to a close, and these four teams have been impressive. And they’re leaving this program with less debt, mo Financial success isn’t how much money you have — it’s feeling good about what you’re doing with the money you have. How can we help you avoid difficult money situations and put you in the best financial position for success? This question is at the heart of so many things we do here as your financial partner – including our decision to eliminate the non-sufficient funds (NSF) fee as of April 1. Are you struggling to come up with the perfect New Year’s resolution? Here are three great reasons why focusing on your finances should be a priority this year! It’s not every day that someone gives you hundreds, or maybe even thousands, of dollars for (seemingly) no reason. That’s what makes getting a tax return so exciting. So before that much-anticipated check arrives, stop and consider what you should do with your tax refund, as well as what you want to do. Simple, everyday choices can reduce consumption and our impact on the environment. Learn ways to be more eco-friendly…and your spending at the same time! Sometimes having a little extra cash is the only thing between you and your dreams. Check out these financial tips to be smart about borrowing money and avoid common mistakes. With a little planning, you may be able to actually save a little money during the holidays. Check out these tips to keep costs down without missing out on the holiday fun. Your home is your castle, your refuge and—let’s face it—a place where it can be very easy to sink a big chunk of money. Which is why you’re always on the lookout for “sweet spots”:  those home improvements that add comfort, safety or a little zing of style while you’re living in your house and will boost the asking price when it’s time to sell. And if you can find a way to save money on those improvements or cut home expenses at the same time, well that sweet spot just got a little sweeter! Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA