2. Spending more than required

People are more in to showing off as it is the new trend nowadays. But due to this people end up spending more and saving less. Once when people get some extra income, instantly they will plan for going for an exotic vacation, buying a huge property or buying a luxury car. In between all these they forget their retirement and avoid saving for it.  

Very few people understand that moving into a smaller house or to a less expensive region can take a large chunk out of your expenses. Even reducing the family fleet to a single vehicle or acquiring a more fuel-efficient vehicle will also free up more income.

3. Taking too much of debt

What for you is too much debt? Some of the financial advisors say any debt is too much, even a millionaire who relies too heavily on debt in his personal life and for business finances will lose everything in no time.

There people who are comfortable with small amounts of debt, or house mortgages and auto loans. But realize that even student loans can be hard to handle if money is tight. If you do acquire new debt, do so cautiously and after researching the best loan options.