Let’s face it, managing money is a complex task. Throughout our lives, almost all of us have made bad decisions regarding our money. In fact, most Americans have made a money mistake over the course of their life.

However, these seemingly small mistakes can end up being quite costly. Here are six common money mistakes that you should avoid to maintain your financial health.

6 Money Mistakes That You Should Avoid at All Costs

1. Not Creating a Monthly Budget

Have you ever been pouring over receipts at the end of the month, thinking, “where did all the money go?” Well, don’t worry; you’re not alone.

Allocating a fixed amount of money for each want or need allows you greater control over what you buy and forces you to make more money-conscious decisions. For example, if you have $100 allotted monthly to eat out, you’ll opt for less expensive options or smaller portions and think twice when you’re near your limit.

2. Overusing Your Credit Card

It’s easy to think of your credit card as “free money” that you can use now and potentially pay back later. However, this often leads to the significant mistake of overusing your credit card.

Using your credit card for regular day-to-day expenses, such as groceries or gas, is becoming increasingly common. But high-interest rates on those charges mean you pay a much higher price for everyday things.

Unexpected events and emergencies, such as medical emergencies or car repairs, mean huge bills, and people often find themselves unable to pay them.

3. Not Having an Emergency Fund

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