Nelson Morales

7 money mistakes to avoid when you welcome the New Year

Article (news)

Aneth Ng-Lim

<p>A new year has a way of making us reflective and hopeful. Reflective in celebrating our wins and owning our mistakes, and hopeful in that we promise to eat better, exercise more, and generally get our lives in better order. But while we’re busy decluttering closets and resetting calendars, our finances often get left behind, carrying the same bad habits into January.</p><p>The good news? You don’t need a total financial makeover to start strong. Meaningful progress can begin simply by letting go of what’s holding you back. As we welcome the new year, here are 7 common money mistakes worth saying goodbye to, for good.</p><div><strong>#1 Not Paying Yourself First</strong></div><p>Many people save only what’s left of their salary at the end of the month, which sadly is often very little or even nothing. The mistake isn’t that you’re bad at saving; you just need to flip the script and pay yourself first.</p><p>Learn to set aside savings as soon as you receive your pay.  Ideally, start with 5 percent and grow it to 10 percent to 20 percent over time.  If 5 percent is not possible, it’s okay to do 1 percent or 2 percent.  When it comes to savings, it’s not always about the big numbers, but consistency. This is the secret of all millionaires who worked their way to the top: disciplined saving one deposit at a time.  </p><div><strong>#2 Believing You’ll “Figure It Out Later”</strong></div><p>Starting a disciplined savings plan is not easy, but putting this off and other financial decisions such as having a budget, paying your credit card bill in full, will cost you.</p><p>“Later” has a way of turning into never, and you may find yourself deep in debt and paying high interest and other fees.</p><p>The new year is the perfect time to replace avoidance with awareness. Start small: track your spending for a month, review your balances, or set one clear financial goal. You don’t need to have all the answers; you just need to start asking the right questions now, not later.</p><div><strong>#3 Spending Without a Plan</strong></div><p>If your money seems to disappear faster than you can earn it, chances are it’s moving without direction. Spending without a plan doesn’t always mean reckless shopping; sometimes it’s simply daily expenses adding up quietly.</p><p>A budget doesn’t have to feel restrictive. Think of it as a spending plan that reflects your priorities, including food, family, experiences, savings, rather than a list of things you can’t enjoy. When you give your money purpose, you regain control instead of wondering where it went.</p><div><strong>#4 Relying Too Much on Credit</strong></div><p>Credit cards are convenient, but when used carelessly, they can quietly drain your future income. Carrying balances, paying only the minimum, or using credit to support a lifestyle your cash flow can’t sustain are all signs of trouble.</p><p>Welcome the new year by being honest about how credit fits into your life. Use it as a tool to get more value for your money, such as discounts, freebies, and interest-free pay-later schemes. If you’re only paying the minimum due, prioritize paying down your credit card balance in full.  Moving forward, think twice before charging purchases that are “wants” and don’t add lasting value. Your future self will thank you.</p><div><strong>#5 Ignoring the “Small” Expenses</strong></div><p>Those daily treats and monthly expenses, from coffee runs to subscriptions to delivery fees can slowly eat away at your budget.</p><p>The mistake isn’t spending on the small joys these purchases bring; it’s not realizing their total impact. Take time to review recurring expenses and ask yourself which ones still serve you. Cutting just a few unnecessary costs can free up money for savings, or that vacation you’ve been wanting to have, or even just let you sleep better at night.</p><div><strong>#6 Not Talking About Money at All</strong></div><p>Money is not an easy topic to talk about, whether it’s with your partner or with your family.  You can save yourself unnecessary stress by being open with your goals and struggles and getting the support you need, whether it’s for your savings plan or to pay down debt.</p><p>Take time for honest money conversations.  Talk to your partner and family about shared expenses and other money worries. By being transparent, this can help everyone move in the same direction. Financial progress is easier when it’s not a solo journey.</p><div><strong>#7 Thinking It’s “Too Late For Me”</strong></div><p>While it’s never too early to start saving, it is also never too late.  One big mistake people make is thinking they’ve missed their chance. Maybe you didn’t save early enough, or started investing later in life, or made spending choices you regret. Yes, you can’t change the past, but you can definitely control what comes next.</p><p>No matter your age or income, taking one positive step today is far better than waiting for the “right” time to begin.</p>

<p>You don’t need a total financial makeover to start strong. Meaningful progress can begin simply by letting go of what’s holding you back.</p>

You don’t need a total financial makeover to start strong. Meaningful progress can begin simply by letting go of what’s holding you back.