I’ve noticed over the years that a lot of people make the same mistakes when it comes to personal finance — even me. I’ve made my fair share on this list, and I’ve realized that the first step to minimizing mistakes is recognizing them. This spotter’s guide will hopefully help you avoid some of the more common mistakes.

1. Having no idea what your credit score is — or what it means. Credit is crucial these days. Despite that fact, most people don’t really know much about their own credit score or report. It’s not enough to receive your free credit reports from annualcreditreport.com. Instead, you should read it over thoroughly and make sure you’re clear on just what information is listed. Take the time to dispute the errors on your report, as well. Lastly, be aware of your rights when it comes to your credit report. Even prospective employers or landlords can request your credit report — but you do have legal rights about what either a landlord or employer can make decisions based on.
2. Letting the pennies slide. For a lot of us, little spending habits can get us down. A soda from the machine every day at lunch, a newspaper on the way to work, and other little expenses add up very quickly. It’s important to figure out just where your money is going, even if you wind up having to track every one of your expenses. Not all of your little indulgences have to be a problem, but would you rather have that extra candy bar or would you prefer to go on a cruise next summer?
3. Letting the dollars slide. I’ve seen this problem escalate when folks start to get their pennies under control: while we’re worrying about saving pennies, we lose sight of the bigger picture. A key symptom is spending more time and effort on saving a few cents than they’re actually worth. If you drive across town to save just a dollar or two, you’re paying more attention to your pennies than to your dollars.
4. Rewarding yourself for the ordinary. Do you feel like you need a reward just for making it through the week? Maybe a dinner out just for actually receiving your pay check? While going out to dinner isn’t necessarily harmful to your bottom line, the idea that you deserve a reward for something that you ordinarily do anyhow can hurt you in the long run. Many people turn to books, games and other stuff for their rewards and those constant costs drag down their savings. Instead, your rewards really should be treats. Save them for something big, like getting a promotion.
5. Putting others first. I’m sure I sound like a horrible person for saying this, but the simple truth is that you do have to put yourself first when it comes to personal finance. It feels good to help others out, and I’m certainly in favor of philanthropy, but you need to make sure that such a gift won’t hurt you.

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