Financial Experts Reveal Their 10 Biggest Money Mistakes

Not using your savings towards your debt

Well, saving money can be a difficult task and is very important for any of us, but you don’t have to prioritize your savings over paying down your debt. It’s essential to get rid of your debt first, and then you’ll be able to save money.  

“I built up some savings, and I didn’t want to use the savings towards my debt; even though the debt was costing me 18 percent a year and my savings were earning only a third of that, my savings made me feel safe,” Chatzky said. 

“Thankfully, my roommate, who worked at Citibank, called me out. I finally used my savings towards the debt and made a plan to pay off the rest. Here’s why it makes sense: If you have debt on a card with a 22 percent interest rate, then every dollar you put towards that debt is a guaranteed return of 22 percent. That’s a significant return rate, and it’s risk-free,” Chatzky added.