This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Personal Finance
10 Things You Need To STOP Doing If You’re Failing At Money
It’s time to get your financial sh*t together
It’s time to cut the spending and take a break. When you’re overspending, you’re only digging yourself into a mighty debt hole that will keep you working – stealing your time.
2. Stop opting OUT of Your employer 401k match.
It’s a tough pill to swallow when people tell me they haven’t signed up for the 401k employee match program. Not signing up for your employer’s 401k match program is like taking a pile of cash and burning it.
3. Stop paying the minimum payment on debt.
If you desire to get out of debt, you won’t ever get out of debt by paying the minimum payment. Those minimum payments will keep you in debt for decades – even for smaller balances. Do yourself a favor and commit to always paying more than the minimum payment. You’ll save yourself thousands of dollars in return and years of dealing with debt.
4. Stop applying for MORE credit cards.
Are you in debt? If so, you probably don’t need another credit card – especially if a large portion of your debt is personal debt. Take a break from the applications and focus on paying off your credit cards.
Recently, a person asked me should they order another credit card since their two credit cards are maxed out. I said, “No. You need to use a debit card.”
My Credit Card Rule
If you aren’t good with credit cards, stay away with them. The more credit you get, the more it shows how good or bad you are with money.
5. Stop buying more car than you can afford.
Car payments suck – but more so if you can’t afford them.
Follow this rule for car buying: The 1/10th rule states that you should spend no more than 1/10th of your gross annual income on the purchase price of a car.
Stick to this rule, and you’ll probably experience less financial anxiety and more flexibility within your budget. Not having a car payment is liberating in a society where most people have one or more per household.
If you’re getting value from this — sign up for my newsletter, a free daily 5 AM email. Discipline delivered before the sun comes up.
6. Stop winging it every month. Use a budget.
You can’t manage what you don’t manage. If you aren’t following a budget and winging it, how will you know what money you’re bringing in and what money you’re sending out? You won’t, and your estimates will always be just that: estimates.
Use an app or a spreadsheet, and start tracking your spending.
One person thanked me for encouraging them to use a budget. They said, “I used to be scared to look at my checking account. Now, I know I always have money in my account, I know what’s happening with my money, and I have more confidence and security.”
7. Stop putting off retirement planning.
Heads up: you may not want to work forever, and eventually, you will need income to sustain your lower productivity years. The longer you put off investing for your future, the less you’ll have saved for retirement, and the harder you’ll have to work to save money for retirement. The best time to start retirement planning is when you’re a kid.
Compound interest is best friends with the young.
The second best time to start retirement planning is now.
8. Stop leaning on one source of income.
Still only have one source of income? It’s time to add another. One of the easiest ways to dig yourself into a financial hole is to rely on one source of income; this is a frequent starting point for accumulating debt. Avoid this entirely by always having an active plan b. At a minimum, maintain two sources of income at all times. More is better, though.
The Benefit
Do this and find yourself more peaceful if you lose one source of income. There will not be a need to worry yourself into a frenzy because you already have something else to cover you while you find a replacement for that income. Unless, of course, you’re living above your means, and your lifestyle is heavily dependent on both sources of income.
9. Stop buying/renting more house than you can afford.
Americans love buying bigger houses than they need. Americans also love buying houses they can’t afford. Then there’s renting; many fall into the trap of paying rent prices their grandmother would faint over.
Stop throwing all your money away on housing. Get what you need, and maybe a little more, but avoid being that person that throws away more than 30% of their net income on rent or a mortgage. That’s just insane.
10. Stop trying to keep up appearances.
A good friend of mine is near bankruptcy. Still, you would never know it by the things they buy (e.g., furniture, shoes, clothes, tech gadgets, gaming systems), parties they attend, recreational entertainment they invest in, bills they cover for their friends and the friends of their friends, and all the traveling they do.
One thing that is consistent for this person is they remain over-invested in their appearance and less invested in their financial well-being, unfortunately, to their detriment.
Trust me; you don’t need to impress anyone. It’s an empty pursuit filled with debt, discontentment, and dissatisfaction.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.