No. 1.  Not paying for insurance. Make sure that you have your basic insurances covered, including medical, life, auto and home. Not covering can open you up to loosing your home, car, etc, so don’t take the chance.

No. 2. Buying too much car. This was my major lesson in finances. You think you can easily afford the $500 a month car payment, well what about insurance, gas, maintenance? That’s going to add up to maybe $700 a month, which if added to your 403b would be $8400 saved each year, and likely a couple of grand back in taxes that could be used to fund your ROTH IRA instead! This adds up to hug amounts of cash as the decades go by….

No. 3. Buying too much house. Yes, houses give you a tax break, a break on the interest of the mortgage at least. However, remember the house you live in is a liability rather than an investment, to paraphrase Robert Kiyosaki’s advice. Save that extra money for a rental property that generates positive cash flow instead. Keep below 30% of your combined income after taxes, to be on the safe side.

No. 4. Too much student debt. Is that degree worth it, well probably, but how did you get there, via an out of state school? Added a masters degree too? Remember that student debt is basically unforgivable debt, and you are essentially graduating with a mortgage but having no home. This debt is relatively toxic, do your best to get rid of it fast.

No. 4. Carrying credit card balances. We’ve all done it, delayed the credit card payments, perhaps splurged on something we shouldn’t have that takes a while to pay back. Do you upmost to pay off the debt as quick as you can.

No. 5. Having no emergency fund. Building on point 4, things can go wrong quickly and having a lot of credit card debt and no emergency funds can put you in a tricky spot in next to no time. Do something to change this situation around as soon as possible.