3 BIG Money Mistakes That Are Keeping You From Building Wealth

Do you feel like you are constantly trying to keep up with all of your expenses? Are you drowning in debt that you just can’t seem to conquer? Are you exhausted of living paycheck to paycheck?

Well, I can tell you that if you are making these 3 money mistakes, you will never be able to master your money and never become financially independent.

But don’t worry! These big money mistakes are easy to fix and there is still time for you to take control over your finances and set yourself on the course towards financial freedom.

Building wealth starts with some simple changes to your money habits. If you are making these 3 big money mistakes, you will never be able to master your money and become financially independent. The good news is that they are not difficult to fix! #moneymistakes #buildwealth

3 Big Money Mistakes Keeping You From Building Wealth

Mistake #1: You Don’t Track Every Penny

Do you know where your money is going down to the last penny? It might sound a little absurd to be so meticulous about tracking your money, but if you want to master your money the first thing you need to do is find out where it is going.

Money tracking is relatively easy and can quickly become a habit after a month or two of keeping up with it.

Having a money management resource where you can track every single penny makes it easier to save money, pay off debt, and eventually achieve financial independence!

Mistake #2: You Don’t Have A Budget

If you truly want to take control of your finances and ultimately change your future, you need to create a budget. After tracking your money and understanding where it is going, budgets help you to guide your money and decide where it should go.

When you don’t have a budget, you are likely overspending in areas that you don’t realize you’re overspending in.

Before I started budgeting I was spending HUNDREDS of dollars a month on little things like going out for coffee and lunch.

Once I created a budget, I became aware of my overspending and simply cut back on my coffee and lunch outings, opting to make them at home. It was so easy! But I had no idea until I looked at my budget.

Creating a budget that will work well for you is simple with the right tools. Budgeting was a real game-changer and it will be for you too!

Articles on Budgeting:
Are You Falling For These 3 Budgeting Myths?
Tips for Budgeting With an Irregular Income
Top 3 Biggest Budgeting Challenges and How to Overcome Them

Mistake #3: You Don’t Have A Debt Payoff Plan

The last big money mistake is not having a plan to pay off your debt. If you have debt you MUST have a plan to pay it off and pay it off early. That way you can focus on building wealth sooner rather than later.

Wealth is difficult to build up when you are still paying off debt because you are bound to those debts until they’re gone. Not only that but, you are paying interest on them instead of earning interest on your own investments.

If you don’t have a plan to pay off your debt, and pay it off fast, you’re going to feel the stress of that debt forever. But it doesn’t have to be this way.

You need the right tools to help you create a plan to pay off your debt and reach your financial goals!

Steps To Building Wealth

Ready to leave these big money mistakes in your past so you can build wealth for your future? Here are 3 steps to help you change your financial trajectory and get you on the path to building generational wealth.

Step 1 – Start Tracking Your Expenses

You need to know where all of your money is currently going. In an excel spreadsheet, write out all of your expenses and categorize them.

I recommend going back 3 months to get a good average. But the further back you can go the better! If you don’t have a way to check your monthly expenses from the past, get in the habit of writing out all of your expenses from here on out.

Determine how much you are spending in each category on average.

Step 2 – Reprioritize Your Expenses with a Budget

Once you understand your average spending per category, assess where you are spending your money and make adjustments. Are there things you could eliminate or spend less on?

I call this reprioritizing because I never recommend eliminating things from your life that do bring you joy. Simply ask yourself if you need to have certain expenses in your life, or if you could cut them back in order to save more money.

Get my Super Simple Budget Spreadsheets here!

Step 3 – Create a Debt Elimination & Wealth Building Plan

Once you have cut back some of your expenses, reallocate that money to go towards your debt and investments. Pick a debt payoff strategy that will help you accomplish your long term money goals.

Also determine how you plan to build wealth for your future. There are a lot of different investment vehicles out there and they all have great benefits!

Which of the 3 big money mistakes are you making that is keeping you from building wealth?

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