Every so often it’s important to refocus on our financial wellbeing and make sure all the essentials are covered.

The day-to-day grind of making ends meet can often be a distraction away from the main game. For us there are 9 key mistakes to avoid.

. Waiting to buy a house

Yes we can provide a compelling financial reason to rent rather than buy as long as people invest the difference between what they pay in rent and what they would pay in home loan repayments.

The problem is most don’t have the discipline to invest the difference. The temptation to spend it gets the better of them.

The alternative is to buy a house and make extra loan repayments which increases your equity. In the end it’s investing in property and the extra repayments creates a savings habit.

. Leaving superannuation too late

Only 20 per cent of Australians retire when they had planned. The other 80 per cent have the decision made for them at a time which is usually inconvenient. It could be retrenchment, ill health, permanent disability or a range of other factors.

So it is a high risk strategy to leave extra superannuation contributions until the last minute because, in the end, you just might not be given that opportunity.

It’s much better to start early and have the discipline of putting away a small amount on a regular basis so that you choose your retirement lifestyle.

. Buying rubbish

Whether it’s shares, property, fixed interest or collectables the key is to buy quality… always quality.

So many people are lured in to dodgy investments by the prospect of massive returns. History tells us that dream rarely happens and it is better to buy quality assets which produce solid dependable returns over the long term.

Once the quality foundations have been set in your portfolio then by all means have a flutter on something speculative but only if you can afford to lose the money if things go sour.

. Not living within your means

Spending can so easily career out of control. Look for tell-tale signs like consistently not being able to pay off the monthly credit card balance or not having any surplus cash to add to savings.

If this is the case, then it’s time to go back to the family budget and assess where costs can be cut or where extra income can be earned.

. Forgetting an emergency fund

Atleast three months salary tucked away for safekeeping to meet any unexpected costs is a terrific safety net.

The money can be kept in a separate savings account or as extra payments off the mortgage which can be drawn down later. It doesn’t matter where the emergency fund is stashed as long as it’s there and isn’t touched.

. Too much debt

Credit is easy. Containing it is the hard part.

If you only have enough cash to service the interest and not pay down overall debt levels, then you have too much.

Focus on bringing debt levels under control. If you have debt you should have no savings. Any spare cash should be used to pay off debt rather than sit in a savings account earning tiny interest on which you have to pay tax anyway.

Start a debt busting program by cutting costs or earning more income to pay down debt.

. Lack of goals

Setting goals for your money provides the motivation and discipline to get things achieved. If you’re in a relationship goals mean you’re both on the same page and working toward a common dream.

Set out your financial goals, work out the steps to achieve them and have the discipline to stick with it.

. Ignoring insurance

Protecting what you’ve got is just as important as making money.

That doesn’t just mean big assets like your home and car but it also means the breadwinner of the family. Loss of income means savings and spending can come to an abrupt halt and you’re plunged in to financial stress. Life and income protection insurance can ease the pain

. Dollar leakage

We’re talking that black hole where money just seems to disappear. You have no idea where it goes.

It’s called” dollar leakage” and it’s usually all the little day-to-day items you don’t even think about. But it’s those little expenses which can add up.

For a week, make a note of every time you pay money for something… a coffee, bus fare, magazine, lunch, ice cream etc.

We bet you’ll be amazed at the end of that week where the biggest leaks can be and how easy it is to plug them.