Money mistakes to avoid in 2025
NerdWallet: Only 47% of Americans feel confident in their ability to make good financial decisions
(InvestigateTV) — Experian found that three in five Americans claim their lack of financial knowledge has led to money mistakes, but a little information can go a long way to changing this.
The Responsible Homegirl founder Kionnie Epps strives to teach people how to stop wasting their money and live the life of their dreams.
She shared four common money mistakes to avoid:
Not setting financial goals – This year, 69% of Americans planned to set financial goals for themselves, according to The Motley Fool.
She said to face your finances head-on and set clear goals for where you want to be a year from now.
Not budgeting – Epps said many resist making a budget because they don’t want to feel restricted.
“But budgeting is not meant to restrict you,” she explained. “Every single time you budget you’re giving yourself, your money direction, you’re telling your money where you want it to go, and I don’t care how much money you make we all need a budget. Our money needs direction.”
Not saving for an emergency – Bankrate found that 27% of Americans have no emergency savings and an additional 29% have less than three months of expenses saved.
Epps said saving as little as $20 per week would be a great first step to building an emergency fund.
“I know $20 seems small, but all of that stuff adds up and when you save money you are putting yourself in a better financial position because when something comes up, you’re not borrowing money, you’re not picking up the phone or calling a friend or family member asking to borrow money,” she explained. “You’re not swiping that credit card. You’re essentially eliminating the debt. You don’t have to think about taking out a loan because you are prepared financially for that emergency.”
Thinking small – A 2024 AARP study found that 41% of people believe their finances will be better in a year.
Epps echoed that sentiment by reminding people that they have the power to change their situation.
People can work towards a better life, she said, if they “use money as a tool to create the life they desire and positively impact generations to come.”
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