10 Financial Mistakes To Avoid

Financial blunders aren’t new. Consider this: the web portal Excite once passed on buying Google for just $750,000. Today, Google’s parent company is worth over $2 trillion. That, my friends, is a legendary missed opportunity.

Most of us won’t miss out on trillions, but we’ve all made financial mistakes. The good news is that God’s Word offers wisdom for recovery and direction when we stumble.

Learning from Failure

Scripture reminds us that falling isn’t the end for those who walk with God:

• “For the righteous falls seven times and rises again” (Proverbs 24:16).
• “For you, O Lord, are good and forgiving, abounding in steadfast love to all who call upon you” (Psalm 86:5).
• “If any of you lacks wisdom, let him ask of God … and it will be given him” (James 1:5).

Failure can be a stepping stone when we let God guide us forward. With that encouragement, here are 10 financial mistakes to avoid—and biblical wisdom to help you course-correct.

1. Borrowing from Your 401(k)

It feels like “borrowing from yourself,” but it often masks overspending or debt. While repaying, you may miss out on employer matches and the compounding growth that comes with them. Worse, leaving your job could trigger taxes and penalties.

2. Claiming Social Security Too Early

Starting at 62, benefits are reduced by up to 30%—for life. If possible, wait until full retirement age (or beyond) for a larger monthly check that lasts as long as you do.

3. Only Paying the Minimum on Credit Cards

A $5,000 balance at 20% interest can take nearly a decade to pay off with minimum payments, costing more than $8,000 in interest. Pay extra and utilize debt payoff strategies, such as the snowball or avalanche method.

4. Delaying Retirement Savings

Compound interest rewards the early saver. Even small contributions in your 20s can grow into a significant nest egg. Don’t panic if you’re starting late—just start now.

5. Overextending Yourself for Your Kids

Helping with college, weddings, or down payments shouldn’t jeopardize your own financial stability. Generosity is good, but if you sacrifice retirement now, you may depend on your kids later.

6. Going It Alone Without Wise Counsel

Many sell low during downturns because they lack guidance. Proverbs 15:22 says, “Without counsel plans fail, but with many advisers they succeed.” Seek out wise, faith-based financial advice.

7. Co-Signing a Loan

Scripture warns: “One who lacks sense gives a pledge and puts up security in the presence of his neighbor” (Proverbs 17:18). About 40% of co-signers end up paying the loan themselves. Be wise in your generosity.

8. Quitting School Too Soon

Education—whether a four-year degree, trade school, or certification—equips you with marketable skills. Think of it as an investment in your future, not just a cost.

9. Buying a Timeshare

Timeshares are marketed as affordable luxury, but often come with steep fees, little flexibility, and low resale value. They’re rarely the “investment” they claim to be.

10. Falling for Scams

Scammers prey on fear, urgency, and greed. Whether through fake calls, emails, or investment pitches, their goal is always the same—to separate you from your money. Be vigilant and discerning.

Walking Forward in Freedom

Jesus warned His disciples: “I am sending you out as sheep in the midst of wolves, so be wise as serpents and innocent as doves” (Matthew 10:16).

Wise stewardship isn’t about never failing—it’s about learning, leaning on God’s wisdom, and moving forward faithfully. With His help, you can recover from mistakes and grow into a more faithful steward of His resources.

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On Today’s Program, Rob Answers Listener Questions:

• I have a 401(k) from a former employer, and I’m thinking of rolling it into a traditional IRA. Is that wise? And can I withdraw some cash during the transfer without incurring a penalt