Five little financial mistakes

Personal Finance: Left unfixed, they are anything but small | David Bahnsen

The last two issues covered a list of common problems in investing that I called "the six big financial mistakes." But many of the things that affect you and me in our day-to-day financial lives are not necessarily investment-related, and sadly many of us are ill-prepared. You will find many of these issues are anything but "little."

1. Living without a budget

Many people, some of significant means and some of modest means, do not live with an income and expense budget. People have created more debt by trying to "wing it" than anything else. Developing an intelligent estimate of your monthly inflows, then setting your expenses to be in line with those, is an absolute prerequisite to financial organization and health. Take the time to do it—adjust it periodically as needed—but do it!