Procrastination is the number one problem when it comes to finances for most people. Nearly every person simply waits to long to take action. Save for retirement now! Save for your kids' college tuition now! Time is money, so take action today.

The second mistake is we spend more than we bring in. Math may not be your best subject, but the problem in this formula should not be hard to spot. Pull back on your living expenses if you are not bringing in money to cover them.

How can a vast majority of us be spending more than we earn? Credit, of course. Credit is the promise of money, but it comes with a sharp catch. Borrowing it is expensive. Get rid of your credit debt as soon as possible.

One of the biggest mistakes we make with our money has to do with impulse purchases. Ask yourself if you really need that new item. If you didn't set out from your home with the intent of buying it, you probably don't. Don't blow your money!

Credit cards are evil. Let me say that again. Credit cards are evil. Cut yours up. Any good financial plan stars with this step. Keep one if you must for emergencies, but cut them up otherwise. Use your debit card for convenience and to keep your spending under control.

Saving for retirement is critical. Don't make the mistake of waiting to long or not saving enough. Most retirement predictions these days are wrong. Medical care is improving yearly. You might live to 100, so make sure you have the money to do that.

According to financial gurus, the real estate bubble would never pop. Now, they are saying it will never recover. This should tell you everything you need to know about financial gurus. They are useless, so don't spend a dime on their advice.

Don't go along with the Jones. Take into account your lifestyle and plan your finances accordingly. Just because the neighbors are spending money right and left does not mean you need to. Having money in the bank prevents sleepless nights.

Save up a year of expenses. Figure out how much money you would need to survive for a year. Now go about saving that amount up. Once you have it in hand, you have created a nice financial buffer. Lose your job? You have a year to find another one!

If you read back over the proceeding paragraphs, you will note two common themes. First, live within your means. Second, use common sense when considering investments. Stick to these two themes and you'll be in good shape.