7 Worst Mistakes To Make With Your Money in 2023

Want to know the worst mistakes you can make with your money going into 2023? You should, so you know what to avoid.

2022 has been an interesting financial year to say the least. With the state of the global economy and an official recession looming, now is not the time to make financial mistakes that would cost you dearly. 

There are some that might be bearable but some would be downright catastrophic! I’m here to dish them all so you prevent these avoidable disasters.

Below are the 7 worst mistakes you can make with your money going into 2023. Some would shock you.

1. Having no plan for your money

You might be tempted to say “Who doesn’t have plans for their money?” But hear me out. If you don’t think deeply about your money now, and lay out a good plan for how to spend, save or invest it, the coming year will be rough for you.

You need to know exactly what the money would be used for in advance so you can keep yourself in check and on track.

Without such a plan, it is so easy to feel like you have enough disposable income for other things that aren’t a priority and steal money away from your most important goals! If we are truthful, we’ve probably all been here before. It would be a huge mistake going into 2023 with no written out plan for your money.

2. Not tracking your expenses and working with a budget

After the plan comes the execution. We all pay for things, but far less people can say exactly where all their money is going. Not tracking your expenses and working with a budget is a mistake and sure fire way to mismanage your money without effort.

A budget helps you know the cash inflows and outflows at any given time. If you don’t track all that’s coming in and going out, you would not be able to account for some expenses and are likely to deviate from your set money plan. Don’t make this mistake.

3. Not saving your money in stronger currencies

It’s really painful to watch your hard-earned money lose so much value over time and be able to pay for much less than it should. 

For those of you whose countries are experiencing unprecedented inflation rates and super volatile exchange rates, you understand this too well.

The bad news is, you cannot change what is happening and the situation won’t be changing anytime soon. The great news is, you can save money in dollars (and other stronger and more stable currencies) wherever you are in the world.


Thanks to the banking system and the technology at our disposal, you can save your money in dollars and preserve its value. Not exploring this option for 2023 would probably be the worst mistake of all.

4. Giving out bad loans

Do you know the true cost of giving out a loan currently? And I mean the cost to you and your finances. It is higher than ever before for a number of reasons, not least of which is widespread inflation that guarantees you don’t get the same value of money back without charging interest.

You must be firm and not sentimental going into 2023 to reduce your risk of issuing out bad loans and bearing the painful consequences. Determine what you can afford to give away and get comfortable with saying “NO” where necessary.

As a general rule, it pays to give ONLY what you are comfortable with losing. What you can tag as charity and forget about. 

5. Living above your means

How do I truly know if I’m living above my means? How do I know I can actually afford to pay for something?

By doing the math.

Living above your means would be too costly especially in a year like 2023. Scrutinising your expenses in order of priority, weighing the cost of each product or service against your income, and adjusting where necessary is an important practice.

It is easy to live above your means without realising it because you have cash at hand. 

‘You only live once’ is a true statement but frugality has its merits too. Living under your means and saving for the future is a good goal.

6. Investing your money in the wrong venture

Allowing greed, coercion, or desperation to push you into investing your money unwisely would cost you dearly.

There are great ways to invest your money in a bear market, but be sure to do due diligence and involve your money only in things you understand and allow you to sleep well at night.

7. Not increasing your income

If there was ever a time to make more money, that time is now. Everything is on the rise, and your money has to grow to keep up so you do not drown financially. Another mistake going into 2023 is not doing anything different to increase your earnings.

Be bold and step out of your comfort zone. Do all you can to earn more money quickly by maximising your current competencies and building skills that serve well in the current market. Only the strong will survive.

I trust these 7 points were enlightening.

Avoid these mistakes and I guarantee you’ll have a much better 2023!

Kindly let me know in the comments which mistakes have tripped you up in the past and you want to work on.