Financial Mistakes To Avoid In 2024

Let’s break it down easily. Your best game plan here is to get in touch with a reputable tax professional who can sketch out the fine details for you. Get the professionals to make you a plan, and just follow it through. Again, it might cost more upfront, but it will save you enormously when tax time comes around.

1. Paying only the minimum on credit cards

It’s a trap! Minimum payments keep you in a perpetual debt cycle. The accruing interest turns what was once a molehill into a mountain. Break free by paying off more than the minimum. Better yet, clear the whole balance monthly. It’s the smart way to keep interest costs in check.

Tackle it like your emergency fund — automatically allocate money out of your incoming pay. This way, when you look at your balance, you’re looking at what you can use with peace of mind.

1. Not having financial goals

Sailing without a destination leads nowhere. Without financial goals, saving and investing becomes aimless. Set clear, achievable objectives. Whether it’s a down payment for a house, a dream vacation or a comfortable retirement, having a target gives your financial efforts direction and purpose.

If you’re unsure of what this might look like, start by saying what you don’t want. That might be debt, stress, being financially constrained — you name it. Then turn this into a goal for yourself to avoid this year, and you’ve got a good place to start.

1. Not checking your credit score

Your credit score is the gateway to your financial opportunities. Ignoring it can lead to nasty surprises at the worst times (like loan rejection). Regular checks are a must. It’s about being proactive and addressing issues before they become problems.

Make it easy for yourself. Get your accountant to do this for you. Here’s another bonus — set this up as one of your previous financial goals for this year. Chat with your accountant about what you can do to get that score up. Then set it in action.

1. Not investing

Letting your money idle in a low-interest savings account is a missed opportunity. Inflation can erode your savings’ value over time. Investing offers the potential for huge returns. Research, understand your risk tolerance, and start putting your money to work.

For anyone who hasn’t attempted investing before, join an investing group. You’ll get great insights into opportunities, you’ll get educated and maybe find some great networks, too.

1. No budget

Operating without a budget is like driving with your eyes closed — you don’t know where you’re going until you crash. A budget is your financial roadmap. It helps you track income, control spending and ensure you’re steering towards your financial goals.

The best source of information to help you build your budget is you. Look back over your bank statements. See where your money went last year. And aim realistically. Cutting back $50 per week on unnecessary expenses is a win in itself.

1. Ignoring debts

This is a one-way ticket to financial stress. Unchecked debts grow, interest compounds, and before you know it, you’re in over your head. The solution? Face them head-on. Create a repayment plan prioritizing high-interest debts, and stick to it. It’s about reclaiming control.

Book an appointment with your accountant as soon as they’re open in January. Get real about the looming clouds over your financial freedom, and let them make a plan for you to follow