Whether you're young or old, just starting out with money management, or you've been doing it for a while, you know you need all the money management skills you can get.

Unfortunately, managing your money can be stressful, making it easy to make mistakes.

While it's easy to correct some minor money mistakes, some can eat deep into our financial fabrics, leaving us impoverished for years.

This is why you must know these common mistakes beforehand and avoid them as much as possible. Below is a list of some of them.

Overspending/impulse buying

Although a very common mistake, you'll be surprised by how many people still fall into it. One of the first steps to avoid this mistake is to make a detailed budget and figure out what part of your income can go to what you want but do not need.

This way, you'll have a limit to the amount you can spend on frivolities and cut down impulse buying.

ALSO READ: 3 mistakes you need to avoid when you are trying to get out of debt

Ignoring small costs

You've definitely heard financial experts talk about small costs before. Learn to avoid those unnecessary hangouts that will plunge deep into your finances. Cancel subscriptions you can't afford and avoid even the cheap novelty items you didn't plan for.

The truth is a thousand naira here or two there may seem insignificant. But they can quickly add up to take a large chunk of your earnings by the end of the month.

Of course, we're not saying you shouldn't relax or enjoy the little things of life. But it's worth having a look at what you need and how these things can impact your overall spending.

Borrowing too much

I know a friend who keeps borrowing from different sources throughout the month, and when it's time to repay these loans at the end of the month, he finds out that it has eaten so deep into his salary.

The truth is that you'll never come out of the circle of borrowing if you live like this. Oftentimes, we take loans to sort out issues we can deal with or avoid for the time being.

For instance, why are you borrowing to buy a car when you can still make do with using the company's bus to and fro work every da?

Falling to financial scams and frauds

It's easy to feel like you're too smart to fall into financial scams, but the truth is that scammers are reinventing their methods every day. As much as possible, try to stay up-to-date with modern scam techniques to avoid falling into them.

These scams may not take your money right away, but when they do, they usually take away more than enough to impoverish you for a long time.

ALSO READ: 5 costly money mistakes you should avoid to make better financial choices

Not saving for retirement

It's always difficult to maintain your lifestyle when you retire, and that's why you must do everything possible to save for those moments.

This is especially advice for self-employed people who do not have any state-sponsored pension to rely on.