Common Financial Mistakes: Are You Making Any of These Potential Lapses in Judgment?

Making these common mistakes with your finances can have long-term negative effects on your long-term financial wellbeing.

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Mistakes are a part of life. We make them every day in every facet of life, frequently in our finances. Some of these mistakes can have serious, long-term effects on your financial health.

Over the years, I’ve compiled a brief list of possible financial mistakes that people often make.



Not adhering to a Budget

Making financial decisions based on impulse, perceived need, or what you think you deserve

No emergency fund – failing to save for a personal economic downturn

Using retirement savings as an emergency fund

  • Cashing out retirement accounts can incur tax penalties, add to your tax liability and harm your retirement plans
  • Carrying too much debt
  • Using your borrowing power to extend your standard of living
  • Too much house debt
  • Too much car debt

Viewing home equity as an expendable resource

Not checking or understanding your credit score

Insufficient insurance coverage

Not utilizing all employee benefits

Paying high fees/interest rates to banks and credit card companies

Cosigning a loan, thereby exposing yourself to additional debt payments

No long-term financial plan 

  • A failure to plan can be a plan to fail

Not saving enough for your future needs

Funding college accounts to the detriment of retirement savings 

  • You can’t borrow federal student loans for retirement!

Common Investment Mistakes

Wasting tax shelters

Mistiming Social Security benefits

Underestimating future medical costs in retirement  

  • Medicare might not be able to pay for everything

Neglecting to prepare your estate planning documents

  • Will
  • Financial Power of Attorney
  • Medical Power of Attorney
  • Medical Directive


Remember what Dale Carnegie once said: “The successful man will profit from his mistakes and try again in a different way.” Let’s try again in a different way!


Will Your Money Last Through Retirement?

No one wants to run out of money. But without goals and a solid plan,
how can you know for sure whether you’re on the right track?

Will I be able to maintain my current lifestyle?

What will my monthly income be in retirement?

Can I protect my hard-earned savings and still
have the income I want?

Rodgers & Associates answers questions like these every day.

Get Personalized Answers
2025 Lititz Pike, Lancaster, PA 17601
Phone: 717-560-3800, Toll-Free: 888-876-3437