Living Beyond Your Means: Spending more money than you earn is a surefire way to get into financial trouble. It's important to budget and live within your means, even if it means making some sacrifices.
Not Saving for Emergencies: Failing to set aside money for unexpected expenses can leave you vulnerable to financial hardship when emergencies arise. Aim to build an emergency fund with enough savings to cover at least three to six months' worth of living expenses.
Not Investing or Overlooking Investment Risks: Keeping all your money in a savings account might seem safe, but it may not keep pace with inflation over the long term. Investing in a diversified portfolio of stocks, bonds, and other assets can help your money grow faster, but it's essential to understand the risks and not to invest more than you can afford to lose.