Looking back, I can clearly see that I was unknowingly sabotaging my own financial stability. It wasn’t a lack of income—it was my decisions that kept me broke. In 2025, I decided to turn things around. Here are the seven financial mistakes I made and the practical steps I took to fix them.
1. I Wasn’t Tracking My Spending
I used to spend without thinking, often wondering where my paycheck went. Once I started using budgeting apps like YNAB and Mint, I realized how much was leaking into non-essentials. Now, I set spending limits and review my expenses weekly.
2. I Lived Paycheck to Paycheck
No savings cushion meant every emergency became a crisis. I made a rule: save at least 20% of every paycheck before I spend a rupee. It wasn’t easy, but automatic transfers into a high-interest savings account helped build momentum.
3. I Ignored My Debt
I pretended my credit card debt didn’t exist. Then the interest started piling up. I used the snowball method—tackling my smallest debt first—to gain confidence. Apps like Cred and Debt Payoff Planner made it easier to manage.
4. I Didn’t Budget for Unexpected Expenses
Unplanned expenses like medical bills or tech repairs used to ruin my month. Now, I maintain a separate emergency fund with at least 3 months’ worth of expenses. It’s peace of mind I wish I’d had sooner.
5. I Had No Financial Goals
Without goals, I was just drifting. I began setting SMART goals—like saving Rs. 2 lakh in a year or investing Rs. 5,000 monthly in mutual funds. These targets gave me direction and kept me motivated.
6. I Made Emotional Purchases
Retail therapy was my toxic habit. Today, I use the 24-hour rule: if I want to buy something, I wait a day before purchasing. Most of the time, the urge passes. My wallet thanks me.
7. I Avoided Learning About Money
For too long, I believed finance was too complicated. But podcasts like Millennial Money, blogs like JagoInvestor, and YouTube channels taught me step by step. Knowledge truly is financial power.
Final Thoughts
I didn’t change overnight. But acknowledging my mistakes was the first step. If you’re struggling with any of these, you’re not alone. Fixing your finances is possible—with patience, consistency, and a willingness to learn.
So these were my mistakes keeping me away from my financial freedom if you want proper guide about financial freedom check this
How I Mastered Financial Freedom in 2025 Using Smart Budgeting and Side Hustles
FAQs
Q1: What app helped you the most with budgeting?
A: I found YNAB (You Need A Budget) and Mint to be extremely helpful in tracking and organizing my expenses.
Q2: How long did it take to build an emergency fund?
A: It took me about 6 months to build a 3-month emergency fund by saving gradually and cutting unnecessary expenses.
Q3: What’s the first thing I should fix if I’m always broke?
A: Start by tracking your spending. Once you see where your money goes, you can create a realistic budget and cut back where needed.
Q4: Did you completely stop spending on fun things?
A: No, I just became intentional. I budget for fun expenses too, but they don’t dominate my finances anymore.
Q5: How do you avoid emotional purchases?
A: I apply the 24-hour rule—if I still need or want it the next day, I consider buying. Most of the time, I change my mind.
Blog Written By
Azfar Sohail is a digital finance blogger and content strategist with over 4 years of experience helping readers make smarter money decisions. His passion lies in breaking down complex financial topics into simple, understandable advice. From budgeting and saving to investing and earning passive income online, Azfar delivers insights rooted in real-world experience. He’s also the founder of Cash Yourself, a platform focused on financial education, digital growth, and monetization strategies.
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