There are probably hundreds of things you shouldn’t do with your money. But from bad habits to decisions based on wishful thinking, some of the bigger missteps can really cost you. To find out the biggest money mistakes you should avoid, financial experts were asked for their best advice.
1. Never Cash Your Paycheck Right Away
If you cash your paycheck right away, you might burn through it too quickly. “You will most certainly spend it all if you cash your paycheck rather than have your employer directly deposit it into your bank account,” said Barbara Friedberg, a financial expert. “Even better is to automatically transfer a percent of your paycheck into a retirement investment account and direct-deposit the remainder into a bank account.” One advantage of having a workplace retirement plan, such as a 401(k), is that money is automatically deducted from your pay and invested. You don’t see it, so you won’t spend it. You can use a budgeting template to get the most mileage out of your paycheck.