{"id":13789,"date":"2026-01-19T04:15:02","date_gmt":"2026-01-19T12:15:02","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=13789"},"modified":"2026-01-26T07:46:18","modified_gmt":"2026-01-26T15:46:18","slug":"the-50-biggest-money-mistakes-household-ceos-make-2","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id13789-the-50-biggest-money-mistakes-household-ceos-make-2.html","title":{"rendered":"The 50 Biggest Money Mistakes Household CEOs Make"},"content":{"rendered":"<div id=\"attachment_13921\" style=\"width: 405px\" class=\"wp-caption alignright\"><a href=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2012\/07\/double-die-2.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-13921\" class=\"wp-image-13921\" title=\"double die 2\" src=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2012\/07\/double-die-2.jpg\" alt=\"biggest money mistakes\" width=\"395\" height=\"296\" srcset=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2012\/07\/double-die-2.jpg 411w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2012\/07\/double-die-2-300x224.jpg 300w\" sizes=\"auto, (max-width: 395px) 100vw, 395px\" \/><\/a><p id=\"caption-attachment-13921\" class=\"wp-caption-text\">As this penny illustrates, even the United States Mint occasionally makes money mistakes.<\/p><\/div>\n<p>I&#8217;m not ashamed to admit <a href=\"https:\/\/lenpenzo.com\/blog\/id1309-21-reasons-why-corner-lots-are-for-suckers-2.html\" target=\"_blank\" rel=\"noopener noreferrer\">I make mistakes<\/a>. After all, <strong><em>everybody<\/em><\/strong> screws up occasionally; for us humans, mistakes come with the territory. For example, I remember the time I decided it would be great fun to play Wii golf for eight consecutive hours. Unfortunately for me, my middle-aged left shoulder vehemently disagreed &#8212; after the fact, of course &#8212; and so I spent the next week popping acetaminophen tablets like they were M&amp;Ms. I know.<\/p>\n<p>It can be even more costly when we make mistakes managing our personal finances; I know I still make them from time to time.<\/p>\n<p>Here are 50 of the biggest financial faux pas household CEOs make. How many of these apply to you?<\/p>\n<p>1. Being impatient. People of modest means should understand two important facts: 1) we cant have it all at once; and 2) <a href=\"https:\/\/lenpenzo.com\/blog\/id1406-patience-debt-management-counseling.html\">saving money takes time<\/a> &#8212; sometimes lots of it.<\/p>\n<p>2. Failing to read contracts before signing on the dotted line.<\/p>\n<p>3. Using payday loans to cover temporary financial shortfalls.<\/p>\n<p>4. <a href=\"https:\/\/lenpenzo.com\/blog\/id1305-teach-your-kids-how-to-be-personal-finance-losers-in-6-easy-steps-3.html\" target=\"_blank\" rel=\"noopener\">Giving your kids everything they desire<\/a>. It&#8217;s hard to get a feel for the value of a dollar when you grow up never wanting for anything.<\/p>\n<p>5. Signing your tax returns without reviewing them &#8212; even when they&#8217;re done by a tax professional.<\/p>\n<p>6. Buying a new car and selling it after only a few years. Buying new cars is costly because they can lose upwards of half their value by the time they are three years old.<\/p>\n<p>7. Not doing your research before <a href=\"https:\/\/lenpenzo.com\/blog\/id1008-should-i-or-shouldnt-i-the-definitive-extended-warranty-litmus-test-2.html\">purchasing extended warranties<\/a>.<\/p>\n<p>8. Going into debt to purchase things that will decrease in value.<\/p>\n<p>9. Maintaining memberships with monthly payments even though you no longer take advantage of them.<\/p>\n<p>10. Using credit card convenience checks that fill your mailbox. You can reduce the temptation by <a href=\"https:\/\/lenpenzo.com\/blog\/id4828-enough-how-to-stop-pesky-credit-card-offers-other-junk-mail-2.html\" target=\"_blank\" rel=\"noopener\">stopping those dubious credit card offers<\/a> and other annoying junk mail.<\/p>\n<p>11. Failing to track your income and expenses.<\/p>\n<p>12. Not saving part of your income for retirement. Try saving at least 10 percent from every paycheck; it&#8217;s never too late to start.<\/p>\n<p>13. Keeping cash in a low-interest earning savings account despite carrying a high-interest credit card balance. Use any savings over and above that needed for emergencies &#8212; and riding out a potential job loss &#8212; to pay off credit card debt.<\/p>\n<p>14. <a href=\"https:\/\/lenpenzo.com\/blog\/id13056-3-true-loan-stories-how-to-lend-money-to-family-friends-2.html\">Loaning money to friends<\/a> and relatives.<\/p>\n<p>15. Taking a loan from your 401(k) retirement fund to pay for current expenses.<\/p>\n<p>16. Failing to negotiate your first salary. It&#8217;s the most important salary negotiation you&#8217;ll ever have simply because all of your future salary increases are ultimately based upon it.<\/p>\n<p>17. Investing without an exit strategy. Without one, it&#8217;s tough to recognize the right time to cut your losses &#8212; or take profits off the table.<\/p>\n<p>18. Buying more house than you need. A bigger house means more taxes, more interest, more maintenance, and more furniture. (Not to mention more housekeeping too.)<\/p>\n<p>19. Keeping a term life insurance policy longer than necessary. Life <a href=\"https:\/\/lenpenzo.com\/blog\/id10281-18-tips-to-consider-before-buying-auto-home-life-insurance-3.html\">insurance is important<\/a> when you have a family that depends on your income; for most folks, its only necessary until their youngest child has left the nest, or finished college.<\/p>\n<p>20. Failing to maintain an emergency fund &#8212; or tapping your emergency fund for non-emergencies.<\/p>\n<p>21. Not increasing your 401(k) contributions every time you get a raise.<\/p>\n<p>22. <a href=\"https:\/\/lenpenzo.com\/blog\/id1510-18-fast-facts-you-didnt-know-about-social-security-numbers-3.html\" target=\"_blank\" rel=\"noopener\">Relying on Social Security<\/a> as your primary source of retirement income.<\/p>\n<p>23. Keeping your spouse in the dark regarding the household finances. Knowledge is power; allowing one spouse to handle all the household bills and investments in a vacuum can backfire in more ways than one.<\/p>\n<p>24. Failing to faithfully maintain your car. By following your car&#8217;s maintenance schedule and paying a little up front, you&#8217;ll reduce the risk of encountering more costly major issues down the road.<\/p>\n<p>25. Running up charges on your credit card that you can&#8217;t pay off in full at the end of each month.<\/p>\n<p>26. Paying the minimum on your credit card bills each month. Here&#8217;s a <a href=\"https:\/\/lenpenzo.com\/blog\/id3765-18-amazing-facts-you-didnt-know-about-your-credit-card-2.html\">credit card fact<\/a>: making minimum payments each month will ensure you pay the maximum interest.<\/p>\n<p>27. Buying on impulse &#8212; or failing to shop around for the best deals.<\/p>\n<p>28. Carrying comprehensive and collision insurance on older cars; typically, the two combined account for almost half of the average auto insurance premium. Depending on the vehicle, you may be better off only carrying liability insurance.<\/p>\n<p>29. Spending a dollar to save a dime. One of the biggest examples of this is people who end up spending more than they save by <a href=\"https:\/\/lenpenzo.com\/blog\/id1616-the-grand-illusion-how-cheaper-gas-ultimately-costs-you-more.html\">driving miles out their way<\/a> in order to buy gasoline that&#8217;s a few cents per gallon cheaper.<\/p>\n<p>30. Assuming past performance guarantees future results.<\/p>\n<p>31. Succumbing to <a href=\"https:\/\/lenpenzo.com\/blog\/id13112-100-words-on-why-you-should-never-buy-a-timeshare-2.html\">high-pressure sales pitches<\/a> and cold calls. Be firm and <em>never<\/em> commit yourself to any type of hard sell without properly researching your available alternatives.<\/p>\n<p>32. Using a credit card to withdraw cash from an ATM machine. Such transactions typically come with onerous cash advance fees. Even worse, theres no grace period so interest begins accruing immediately.<\/p>\n<p>33. Failing to take advantage of coupons and internet promotional codes as often as possible.<\/p>\n<p>34. Failing to automate your finances (Part 1). Automatic paycheck deductions not only help ensure you&#8217;ll pay yourself first, they&#8217;re an easy and painless way to save for retirement.<\/p>\n<p>35. Failing to automate your finances (Part 2). Prepaying your utility bills, the mortgage and other loans online helps eliminate late fees and postage.<\/p>\n<p>36. Thinking you can ignore your monthly statements because you pay your bills online. Automating your finances is a smart money management technique but putting them on autopilot isnt.<\/p>\n<p>37. Throwing away perfectly good food. Believe it or not, I save $1400 annually by <a href=\"https:\/\/lenpenzo.com\/blog\/id4365-culinary-odds-ends-how-eating-leftovers-saves-me-1400-annually.html\">eating leftovers<\/a>.<\/p>\n<p>38. Overpaying for car insurance by keeping a low deductible. Remember, car insurance isnt intended to cover minor fender benders its designed to protect you from losses you cant afford to replace.<\/p>\n<p>39. Marrying the wrong person. When it comes to money management philosophy, it helps to be on the same page as your mate. In fact, <a href=\"https:\/\/lenpenzo.com\/blog\/id946-book-review-get-financially-naked.html\">financial compatibility<\/a> is a key predictor of whether a relationship will survive long term.<\/p>\n<p>40. Not fully understanding stocks and other financial instruments before investing in them.<\/p>\n<p>41. Refusing to treat your <a href=\"https:\/\/lenpenzo.com\/blog\/id99-treat-your-household-like-a-business-2.html\" target=\"_blank\" rel=\"noopener\">household like a business<\/a>.<\/p>\n<p>42. Neglecting to have a plan (such as a will or trust) that governs how your affairs will be managed after you become unable to manage them, whether due to death or disability.<\/p>\n<p>43. Failing to review and update your savings goals annually.<\/p>\n<p>44. Underestimating the <a href=\"https:\/\/lenpenzo.com\/blog\/id10351-the-best-household-ceos-understand-the-power-of-saying-no-2.html\">the power of saying &#8220;no.&#8221;<\/a> It&#8217;s the best way of short-circuiting the urge to keep up with the Joneses.<\/p>\n<p>45. Not taking advantage of your employer&#8217;s flexible spending account. These accounts not only reduce your tax liability, but they also act as a de facto quasi-savings plan.<\/p>\n<p>46. Failing to optimize your 401(k) account every year. Diversifying and balancing your allocations will <a href=\"https:\/\/lenpenzo.com\/blog\/id3469-100-words-on-the-importance-of-a-balanced-investment-portfolio-2.html\">minimize your losses<\/a> in the event of a major market downturn.<\/p>\n<p>47. Spending more than you earn.<\/p>\n<p>48. Putting aside money for your kids&#8217; college educations before taking care of your own retirement needs.<\/p>\n<p>49. <a href=\"https:\/\/lenpenzo.com\/blog\/id2121-100-words-on-why-you-should-never-cosign-a-loan-for-anyone-2.html\" target=\"_blank\" rel=\"noopener\">Cosigning loans<\/a> &#8212; for anyone.<\/p>\n<p>50. Having a defeatist attitude. Because no matter how bad things get, those who are determined to succeed know that, over the long run, they control their own destiny. (Trust me: that even applies when you&#8217;re playing Wii golf.)<\/p>\n<p style=\"text-align: right;\"><span style=\"font-size: smaller;\">Photo Credit: Pic 2 Fly<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;m not ashamed to admit I make mistakes. After all, everybody screws up occasionally; for us humans, mistakes come with the territory. For example, I remember the time I decided it would be great fun to play Wii golf for eight consecutive hours. Unfortunately for me, my middle-aged left shoulder vehemently disagreed &#8212; after the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":36360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","pmpro_default_level":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[458,459,460,461,463,466,468,470],"tags":[],"class_list":{"0":"post-13789","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-credit-debt","8":"category-family","9":"category-insurance","10":"category-investing","11":"category-real-estate","12":"category-saving","13":"category-taxes","14":"category-tips","15":"pmpro-has-access","16":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The 50 Biggest Money Mistakes Household CEOs Make<\/title>\n<meta name=\"description\" content=\"Everybody makes mistakes. 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