The 3 Most Common Mistakes People Make Early On When Planning (And How to Avoid Them)

Let’s be real—financial planning can be intimidating. It feels like the kind of thing you know you should do, but the path forward is unclear. You’re not alone if you feel that way.

Unfortunately, most people struggle with creating a solid, all-encompassing financial plan that puts them on the path to success. The problem? We’re not taught this stuff. Most people are winging it, hoping their 401(k) and paying down debt will be enough to secure their future. Spoiler: It’s almost always not.

So, how do you bridge those gaps? How do you take control of your finances and, more importantly, your future?

Lets Dive In:

Why Financial Planning Is More Important Than You Think

If you want financial freedom, it’s not about just saving or earning more—it’s about building a roadmap. Financial planning is that roadmap. It’s your personal GPS that ensures your money is working for you and gets you to where you want to go. But without a plan, you’re just driving in circles.

When you don’t have a complete financial plan, you might hit some goals in the short term, but you’ll miss out on the bigger picture. You’ll lack security, flexibility, and, ultimately, peace of mind.

Here are the three most common financial mistakes I see people make—and how you can avoid them:

Mistake #1: Not Having a Grasp on Cash Flow

You’d be amazed at how many people skip this step. It’s not sexy, but it’s essential. Without a budget, you're flying blind. A budget isn’t just about “cutting back on lattes,” it’s about controlling your cash flow and making sure every dollar is working for you.

And it’s not just about “making more money.” We’ve seen TONS of situations where individuals making $1 million/year have the same cash flow problems as individuals making $50k. 

This is why we’re always stressing the 50/20/30 principal. No matter how big or small the numbers are - if we can dial in our percentages & allocations, there is a much better chance we will have financial success in the long term. 

Consequences: If you’re not tracking your income and expenses, you’re likely overspending, under-saving, and not making progress toward your bigger goals. You’ll always feel like you’re behind, no matter how much you earn.

Solution: Build a budget that prioritizes what matters—your goals. First, track where your money is going. Then, set spending limits and adjust as necessary. Make sure you allocate enough toward debt repayment, savings, and investments.

Action Steps:

1. Track your expenses for the next 30 days.

2. Categorize your spending according to the 50/20/30 Rule

   1. 50% Essentials. 20% Financial Goals. 30% Lifestyle & Luxuries.

3. Adjust your budget monthly and cut the fat where necessary.

4. PRIORITIZE financial goals as part of the plan, not an afterthought.

Mistake #2: Delaying Investments

Too many people wait until they “have more money” to start investing. Guess what? If you’re waiting for the perfect moment, it’ll never come. Time is your greatest asset in investing. Every day you wait is a day that compound interest is slipping through your fingers.

Consequences: Delaying your investments means you’re missing the most powerful wealth-building tool available—compound interest. The longer you wait, the harder it becomes to catch up, and you’ll either have to invest more later or risk falling short of your retirement goals.

Solution: Start now. It doesn’t matter if you only have a small amount to invest—just get in the game. Automate your contributions and let time work in your favor.

Action Steps:

1. Start small, but start now—even $10 a month compounds over time.

2. Automate your Investment Contributions so you don’t have to think about it.

Don’t believe me? Take a look at how big of an impact starting early can make:

Mistake #3: Not Having a Comprehensive Financial Plan

Here’s the big one. A lot of people think once they’re debt-free and have a 401(k) rolling, they’re set for life. They’re wrong. There’s way more to a comprehensive financial plan than paying off debt and saving for retirement.

Here’s just a few key things we consider with our financial planning clients:

• Cash Flow & Budgeting

• Debt Management

• Investment Planning

• Retirement Projections

• Tax Planning

• Insurance & Risk Management

• Estate Planning

• Education Planning

• Charitable Giving 

• Business Planning

• Lifestyle & Goals Alignment

Consequences: If you’re only focusing on one or two areas of your financial life, you're leaving yourself exposed. You might be paying more in taxes than you need to, or worse, you’re not prepared for emergencies. Without a comprehensive plan, you risk undoing years of progress in a single unexpected event.

Solution: Your financial plan should cover all the bases. It’s not just about today—it’s about protecting your future.

Action Steps:

1. Start doing Research or sit down with a fiduciary advisor to map out a comprehensive plan.

2. Make sure your plan covers everything. Check off all the boxes.

3. Review your plan annually and update it as life changes (It will change - A LOT!)

Your Step-by-Step Blueprint for Financial Success

Now that you know what not to do, let’s talk about what you should do to create a bulletproof financial future. Here's the step-by-step process:

Step 1: Assess Your Financial Health

• Be brutally honest with yourself.

Step 2: Set Clear Financial Goals

• Short-term, Mid-Term, and Long-Term. Done is better than perfect. Set a game plan today, knowing that things will change as life evolves.

Step 3: Dial in Your Cash Flow

• Figure out where you stand relative to the 50-20-30 rule. The results may surprise you. Maybe you’re already crushing it and doing great. Maybe your jaw will hit the floor with how off you are. (hopefully not!)

Step 4: Start Investing Now

• Time in the market beats timing the market. Even if it’s small, get your money working for you. Good Habits Compound!

Step 5: Build a Comprehensive Plan

• Do tons of research or work with a trusted advisor to begin mapping out a comprehensive plan. “Failing to Prepare is Preparing to Fail.” We want to full-proof our financial future.

Step 6: Review Regularly

• Financial plans aren’t static, just like life. Today’s plan will be comically wrong in a couple years. Just like your life evolves, your plan should as well. Continuously review, make changes & keep growing.

Start Planning Smarter Today

Financial success isn’t reserved for the lucky or the brilliant—it’s for those who plan. By avoiding the common mistakes outlined here and following the step-by-step blueprint, you can take control of your financial future.

So, what’s it going to be? Keep hoping things will work out, or take the first step toward financial freedom today?

The choice is yours.

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Opulus, LLC (“Opulus”) is a registered investment advisor in Pennsylvania and other jurisdictions where exempted. Registration as an investment advisor does not imply any specific level of skill or training.

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