Faith & Finance - 6 Common Money Mistakes That Are Hazardous to Your Wealth

“A slack hand causes poverty, but the hand of the diligent makes rich.” — Proverbs 10:4

At Faith and Finance, we believe the Bible offers timeless financial wisdom—and sometimes, that wisdom shows up in the form of gentle correction. Let’s face it: we all make financial missteps—some intentional, others unintentional. But every mistake is an opportunity to grow in wisdom and stewardship.

If you’ve made some poor decisions with your money, don’t let Proverbs 10:4 discourage you. Instead, take heart in Proverbs 19:20:

“Listen to advice and accept instruction, that you may gain wisdom in the future.”

Let’s walk through six money mistakes that can quietly erode your wealth—and how to avoid or correct them with diligence and wisdom.

1. Living Paycheck to Paycheck

One of the most common financial traps is spending everything you earn. When there's nothing left over at the end of the month, you're missing an essential part of wise stewardship: saving.

The solution? Pay yourself first.

Start by setting up an automatic transfer from your checking account to your savings. Even if it’s a small amount, consistency is key. Adjust your monthly spending to fit what remains. Yes, it might mean cutting back on things you've grown used to, but almost everyone can trim something from their budget.

Aim to save at least 10% of your income. Over time, this will build your financial margin and peace of mind.

2. Not Having an Emergency Fund

Without savings, every unexpected expense becomes a crisis. And that leads to our next mistake—debt.

Once you’ve begun setting money aside, build your emergency fund. 

Start with a goal of three months’ worth of living expenses and work your way up to six. This financial cushion protects you from having to rely on credit when life throws a curveball.

3. Paying Interest on Consumer Debt

Without savings, many people make the costly mistake of using credit cards to cover emergencies.

If you carry credit card debt, the biggest mistake you can make is only paying the minimum. Take a close look at your statement—it may show how long it’ll take to pay off your balance at the minimum payment. The number might shock you: 15 years or more.

Reframe your spending by asking, "What is this really costing me?"

A $30 dinner paid with a credit card could cost $60 or more by the time it’s paid off. That’s not good stewardship.

4. Buying a New Car (When You Can’t Afford It)

There’s nothing wrong with buying a new car—if you can pay cash for it. That’s the key.

Instead of taking on car loans, aim to pay cash for your vehicles, new or used. After you pay off your current car loan, keep making those same “payments”—but to yourself. Put them in a savings account and use that money to purchase your next car.

It may take a few vehicles to get there,