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The tricky part is that some of these money mistakes arent always obvious at first.
They can sneak up on you when you least expect it.
Onesurveyfrom U.S. News & World Report found that 42% of Americans dont have an emergency fund.
Living without an emergency fund drives me crazy, Lokenauth said.
He recommended having at least three to six months worth of expenses saved.
But small, everyday purchases can also add up quickly.
Not tracking spending is a massive mistake Lokenauth sees constantly.
He noted that the average person wastes about $400 per month on random purchases they dont remember making.
Been there myself, he explained.
Currently, Americans are struggling with a record amount of credit card debt $1.211 trillion, perLendingTree.
Credit card debt is an absolute killer, Lokenauth said.
The interest rates are brutal usually 15% to 25% and the debt snowballs fast.
They ended up paying almost double the original amount, he explained.
But the sooner you start saving, the better, because that gives your money more time to grow.
This one keeps me up at night, Lokenauth said.
Time is your biggest advantage with compound interest, but so many people wait too long.
That money has grown substantially.
According to Lokenauth, not having proper insurance is playing with fire.
He explained that medical bills are the No.
Falling for Get-Rich-Quick Schemes and Risky Investments
This is a big no-no.
Falling for get-rich-quick schemes and risky investments makes me want to scream, Lokenauth said.
Those crypto and meme stock horror stories are endless.
He explained that one of his clients lost $50,000 trying to day trade.
Thats half their retirement savings gone.
Slow and steady investing wins every time, he said.
Its way better to focus on your own financial goals and live within your means.
Keeping up with the Joneses will wreck your finances fast, Lokenauth explained.
Hes seen people financing luxury cars, vacations and homes they cant afford.
Social media makes it worse.
The thing is, most of those rich-looking people are drowning in debt.
I drive a five-year-old Honda and couldnt be happier, he said.
Not having financial goals is like driving without a destination, according to Lokenauth.
You need clear targets for saving, investing, debt payoff whatever matters to you.
I help my clients set specific numbers and deadlines.
Makes a huge difference in staying motivated and measuring progress, he said.
Money fights are a leading cause of divorce.
Been there almost ruined my own marriage by hiding purchases.
Now my spouse and I have monthly money talks andjoint financial goals.
Game changer, he said.
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