3 Money Mistakes You Might Be Making Without Realising It

3 Common Money Mistakes That Could Hurt Your Finances

When it comes to personal finance, most people think the biggest risk is making a huge mistake — like betting your savings on a dodgy investment or racking up credit card debt. But in reality, the most common money mistakes are subtle. They creep in quietly, often disguised as good intentions or harmless habits.

You might be doing mostly the right things — budgeting, saving, even investing a little. But still feel like you’re not making the progress you should. The truth is, small missteps can hold you back more than you think. And while keeping up with ASX news and updates can be helpful for staying informed, smart money decisions start with awareness of your own day-to-day choices.

Let’s break down three sneaky money mistakes people often make — and how to fix them without overhauling your entire life.

1. Saving Aimlessly Without a Plan

You’re transferring a bit of money into savings each month. That’s good, right? Well — yes, but if you’re not saving with purpose, you’re missing out on one of the most effective motivators there is: clarity.

Money without a plan tends to get spent. Whether it's dipping into your savings for an unplanned holiday or “borrowing” from it to cover a shortfall, that money is much easier to justify using when it doesn’t have a name.

What to do instead:

• Break your savings into labelled goals (e.g. “Emergency Fund”, “Home Deposit”, “Holiday 2025”).
  

• Use separate accounts or sub-savers if your bank allows it.
  

• Set rough targets and dates so you have something to aim for.
  

Even just labelling your savings can change the way you think about them — and make you far less likely to tap into them for day-to-day expenses.

2. Avoiding Investing Because It “Feels Too Risky”

Many Australians are still hesitant to invest — especially beyond their super. It’s easy to see why: crypto market crashes make headlines, and unless you grew up with investing being normalised, it can feel like a high-stakes game meant for professionals.

But the bigger risk? Keeping too much money in cash long-term. With inflation slowly eating away at your savings, the value of that money decreases over time — even if the number stays the same.

A better approach:

• Start small, even with $50–$100 a month into a low-fee, diversified ETF or managed fund.
  

• Focus on long-term timeframes (5–10+ years), where the short-term ups and downs matter far less.
  

• Don’t aim to “beat the market” — just being in the market over time puts you ahead of most people who never start.
  

You don’t need to be glued to the share market or become an investing expert. You just need to be consistent, patient, and realistic.

3. Thinking You Don’t Earn Enough to Make Progress

One of the most damaging money mindsets? Believing that financial freedom is only for people earning six figures. It’s simply not true. Progress doesn’t come from having more money — it comes from using the money you have intentionally.

If you’ve ever told yourself, “I’ll start budgeting or saving properly once I earn more,” you're not alone. But that future raise or career change might take years. And in the meantime, valuable habits go undeveloped.

Here’s what works:

• Treat any income as worth managing. Start with what you have — not what you wish you had.
  

• Build habits now, while your expenses and lifestyle may still be relatively simple.
  

• Focus on percentage-based goals (e.g. save 10% of what you earn), not dollar amounts.
  

This shift in mindset can help you make more confident choices and avoid lifestyle creep when your income does grow.

Most money mistakes aren’t about doing something wildly wrong — they’re about letting small habits slide under the radar. The good news? Once you spot them, they’re easy to fix. And the earlier you catch them, the more upside you’ll unlock in the long run.

Start by picking just one area to work on this week — maybe giving your savings some labels, or finally opening that investment account you’ve been putting off. Smart money moves don’t need to be dramatic — they just need to be deliberate.