Common Money Mistakes of the Financial Journey
As adults navigating financial independence, we often recognise in hindsight the lessons we wish we had learned earlier. Over time, we gain valuable insights from their experiences and unique relationships with money.
At Empower2Free, we believe these aren’t just errors; they are “mis-takes.” Like a scene in a film that didn’t quite land, a mis-take is an opportunity to analyse, learn, and prepare for a better “re-take”. Here are three common mis-takes that emerge on the journey to financial self-reliance:
1) The “Hard Work Will Suffice” Money Mistake: Equating Effort With Results
Many believe that working hard alone is the primary driver of financial independence. However, the reality is more nuanced: it’s not just about the effort put into beefing up a savings account or avoiding credit card debt; it’s about working smart.
Hard work without purpose is often just “noise”. Achieving financial independence requires simplicity – cutting out the chaos and being specific about your goals. If your objective is more time with family, working overtime to save more might actually be a mis-take. It might be more effective to spend on food delivery or travel plans that facilitate that time, rather than trade more hours for a slightly higher bank balance.
Avoid blindly working harder. Define clear financial objectives. Focus on investing wisely, maintaining an emergency fund, and ensuring your spending aligns with your goals so that your efforts intentionally progress towards the results you actually desire.
2) The “Selfishness” Mistake: Seeing Wealth As A Zero-Sum Game
It is common to view money as a finite resource where every dollar given away is a dollar lost. This leads to two extremes: some interpret prioritising their own financial well-being as greed, while others hesitate to give because they feel they don’t have “enough” yet.
This overlooks a crucial paradox: by investing in our own financial stability, we enhance our capacity to support others in the long run. Neglecting our own needs can lead to burnout and dependency, which eventually becomes a burden to the very people we wish to help.
Saving and caring for oneself is not mutually exclusive from giving to others; rather, they are complementary. Giving empowers us to see what we can do without, while building our wealth in other non-financial areas. The key to effective financial stewardship is maintaining a balance between personal sustainability and generosity. Afterall, our net worth is not just how much money we have, but as highlighted by Sahil Bloom, holistic wealth across different aspects – time, social, mental, physical and financial.
3) The “Advice is Responsibility” Mistake: Confusing Input With Ownership
Seeking expert financial advice is valuable—and often necessary—to help us see what we might have missed. However, a common mis-take is confusing “seeking advice” with “outsourcing responsibility”.
One of the biggest money mistakes we can make is to forget that we bear the consequences of these choices. Therefore, we must remain the primary owners of our financial decisions. While others can provide quick, collective insights, every opinion is influenced by individual experiences, values, and self-interest. Taking ownership means making informed choices from our own perspective. Use advice as a tool, but accept the outcome as our own.
Ready for Your Financial Re-Take?
If you have made these mistakes, do not be hard on yourself. These are simply “mis-takes” — opportunities where actions didn’t perfectly align with goals, offering valuable lessons for growth. Embracing these as part of a “financial re-take” can become your greatest advantage, allowing you to learn, adapt, and ultimately achieve greater success.
Want to spot your mis-takes before they become costly?
- Join our community: Sign up for the Empower2Free Let’s Talk Money program to navigate these challenges with others.
- Get personalized clarity: Book a call with us today to start your journey toward confident, informed financial decisions.
