“A slack hand causes poverty, but the hand of the diligent makes rich.” — Proverbs 10:4

At Faith and Finance, we believe the Bible offers timeless financial wisdom—and sometimes, that wisdom shows up in the form of gentle correction. Let’s face it: we all make financial missteps—some intentional, others unintentional. But every mistake is an opportunity to grow in wisdom and stewardship.

If you’ve made some poor decisions with your money, don’t let Proverbs 10:4 discourage you. Instead, take heart in Proverbs 19:20:

“Listen to advice and accept instruction, that you may gain wisdom in the future.”

Let’s walk through six money mistakes that can quietly erode your wealth—and how to avoid or correct them with diligence and wisdom.

1. Living Paycheck to Paycheck

One of the most common financial traps is spending everything you earn. When there's nothing left over at the end of the month, you're missing an essential part of wise stewardship: saving.

The solution? Pay yourself first.

Start by setting up an automatic transfer from your checking account to your savings. Even if it’s a small amount, consistency is key. Adjust your monthly spending to fit what remains. Yes, it might mean cutting back on things you've grown used to, but almost everyone can trim something from their budget.

Aim to save at least 10% of your income. Over time, this will build your financial margin and peace of mind.

2. Not Having an Emergency Fund

Without savings, every unexpected expense becomes a crisis. And that leads to our next mistake—debt.

Once you’ve begun setting money aside, build your emergency fund. 

Start with a goal of three months’ worth of living expenses and work your way up to six. This financial cushion protects you from having to rely on credit when life throws a curveball.

3. Paying Interest on Consumer Debt

Without savings, many people make the costly mistake of using credit cards to cover emergencies.

If you carry credit card debt, the biggest mistake you can make is only paying the minimum. Take a close look at your statement—it may show how long it’ll take to pay off your balance at the minimum payment. The number might shock you: 15 years or more.

Reframe your spending by asking, "What is this really costing me?"

A $30 dinner paid with a credit card could cost $60 or more by the time it’s paid off. That’s not good stewardship.

4. Buying a New Car (When You Can’t Afford It)

There’s nothing wrong with buying a new car—if you can pay cash for it. That’s the key.

Instead of taking on car loans, aim to pay cash for your vehicles, new or used. After you pay off your current car loan, keep making those same “payments”—but to yourself. Put them in a savings account and use that money to purchase your next car.

It may take a few vehicles to get there, but eventually, you'll be able to pay cash—and that will be a glorious day.

5. Not Opening a Roth IRA

Especially if you're young, not opening a Roth IRA is a missed opportunity for long-term, tax-free growth.

Once your emergency fund is in place, consider contributing to a Roth IRA, even if you’re already contributing to a 401(k) at work.

In 2025, you can contribute up to $7,000 annually to a Roth IRA—or $8,000 if you're age 50 or older. Because you're contributing after-tax dollars, your qualified withdrawals in retirement will be tax-free.

That’s a powerful way to build lasting wealth.

6. Buying Too Much House

Homeownership can be a blessing, but only if approached wisely. Spending too much on a house can strain your budget, robbing you of financial flexibility and peace.

A manageable mortgage, combined with consistent savings, puts you on a path toward financial stability and positions you to honor God with greater freedom and generosity.

We all make mistakes with money, but we don’t have to stay stuck in them. God’s Word is full of grace and wisdom. When we humbly receive correction and take steps toward diligence, we grow not only in financial strength but also in spiritual maturity.

So, whether you’re just beginning your financial journey or recalibrating after a few missteps, remember that wisdom is always available to those who seek it.

“Listen to advice and accept instruction, that you may gain wisdom in the future.” — Proverbs 19:20

Let’s walk in wisdom and let our money reflect our trust in the One who provides everything.

On Today’s Program, Rob Answers Listener Questions:

• I have a disabled son, and I would like to leave him some money without attorneys or the government taking it away from him. Is there a way to do that?
• I'm retired but still working a few days a week, and my Social Security is deducted from my paycheck. What happened to that Social Security? Do I get it later? How does it work?
• I have a 401(k), and I'd like to know how I can invest according to my values with the options available in it. The only options are big companies that I'd rather not invest in. Do you have any suggestions?
• We recently sold our house for a good profit, and I'd like to know how we tithe on it. Do we tithe on the full amount we received or only on what goes above the initial price and the interest we paid on it?
• I left a job and rolled my 401(k) over to my current employer's account. I also have another 401(k). Should I combine them or keep them separate? I'm also getting a car accident settlement. Should I use it to pay off my car loans and credit cards or invest it and continue making payments?
• I'm 58 and still working, with my house and car paid off. When is it appropriate to redo my will? Is it time to do a trust? Or when is that the wise thing to do?

Resources Mentioned:

• Faithful Steward: FaithFi’s New Quarterly Magazine
• List of Faith-Based Investment Funds
• Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money (Pre-Order)
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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