All of us aspire to lead a financially stable life, but achieving this feat is easier said than done. This is because we tend to make common mistakes in managing our money that can render grave consequences and sideline our long-term financial goals. Fortunately, the good part is that you can easily avoid these major hiccups by identifying what types of financial mistakes can land you into trouble. Being overly dependent on credit cards Overusing the credit card is the worst thing you can do for your financial health. Not only will this financial mistake amass a massive debt that can become impossible to repay, but it can also detrimentally impact your credit score. In other words, it will starkly lower your chances of securing personal loans and getting employment or even an apartment. To protect your financial credibility, you should design a rock-solid money strategy that can prevent you from these severe repercussions. Apart from the sparse use of your credit card, you should stick to just one secured credit card with a low spending limit. By doing so, you’ll be motivated to repay your debts, improving your overall credit report. Dropping healthcare cover to save money There are going to be years where you might not use your health insurance at all. Naturally, this might frustrate you as there is no way to get something out of the unused investment. However, bailing on your health insurance is the biggest financial mistake you can make, especially when you have no emergency funds. Our country has the most expensive healthcare in the world, so it would be a bad idea to have no insurance, especially in cases of unexpected incidents where a medical procedure needs to be undertaken immediately. One way of lowering the cost of insurance is to switch to a high-deductible plan and contribute to an HSA (Health Savings Account). This allows you to cut back on the insurance premium and cover the rare doctor visits with the help of HSA. Not tracking your everyday budget It would be unwise to assume that everything will fall into place without a strategy in action. If you are in financial trouble, it’s time that you review your spending and saving habits. For instance, if you shop on non-essentials like clothes or gadgets every month, you need to cut back, determine a budget, and honor it. Moreover, you should set sensible financial goals such as buying a house, clearing your debts, and funding your education or business. Such goals can motivate you to save for good as they can help you get ahead in life by opening doors to many opportunities. Not saving for retirement Delaying saving for your retirement plans is another financial mistake that should be avoided. Regularly making contributions to the retirement fund while you are still in your twenties can save you a lot of grief later. According to personal finance expert Suze Orman, a 25-year old contributing $100 to an IRA (Individual Retirement Account) with an estimated rate of return of 12% can make up to a million dollars by the time they retire. Conversely, if the same person begins IRA contributions at the age of 35, they will only make $300,000. In a nutshell, this decade-long gap can cost one almost $700,000.