Stop Losing Money – Fix Common Mistakes and Build a Rock-Solid Financial Plan
Every investor wants to build wealth—but too many lose thousands along the way by making simple, avoidable mistakes. In this episode of the Roy Matlock Jr. Money and Business Hour, Roy explains the top financial missteps people make, why they cost between $50,000 and $500,000, and how to fix them before it’s too late.
The First Rule: Just Get Started
The most expensive mistake isn’t losing money—it’s not starting early. Thanks to the Rule of 72, a dollar invested today could double several times over your career. Wait ten years, and you could miss out on nearly half your future wealth.
Even small beginnings matter. Roy shares stories of clients who started with $25 a month and ended up retiring debt-free with nearly a million saved. Whether through a 401(k), IRA, or mutual fund, automate your investing and start now.
Financial Stability Funnel
Avoid Bad Debt
Financing things that go down in value is one of the fastest ways to derail your future. New cars, high-interest credit cards, and personal loans often carry both depreciation and interest. Instead of paying $55,000 for a car that’s worth $20,000 a few years later, pay cash for a used one and let your money grow elsewhere.
If you already have debt, make a plan:
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List balances and rates.
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Pay the smallest balance first to build momentum.
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Automate equal payments until each account is gone.
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Never add new debt while you’re paying old debt off.
Build an Emergency Fund
An emergency fund isn’t about earning high returns—it’s about avoiding disaster. Without one, unexpected expenses force you to cash out retirement accounts or rack up more debt.
Start with $1,000, then aim for three to six months of living expenses. Keep it in a money-market or savings account—accessible, safe, and separate from your checking.
Don’t Buy Too Much House
Mortgage lenders approve based on what you can borrow, not what you should. Over-buying a home ties up your cash flow, increases stress, and limits your ability to save. A house should fit comfortably in your budget so you can invest consistently and still live your life.
Invest the Right Way
Both over-aggression and over-conservatism are costly. Leaving money in a low-yield account for decades can mean missing hundreds of thousands in growth. But taking excessive risks near retirement can create losses you can’t recover from.
For most people, target-date funds in a 401(k) provide a balanced approach. Choose the year closest to your expected retirement age; the fund automatically adjusts from growth to safety over time.
Always Take the Employer Match
If your employer offers a match, it’s free money—period.
Put in 3% and get 3% matched? That’s a 100% return instantly, plus tax deductions in most cases. Add a Roth IRA on top for tax-free growth, and you’ve built a powerful one-two punch for retirement.
Watch Out for Excessive Fees
Hidden fees in investment or insurance products can quietly erode your returns. Roy explains why working with a fiduciary advisor—one who’s legally required to act in your best interest—is crucial. His firm offers access to thousands of financial products so clients get low-cost, high-value options tailored to their goals.
Plan for Taxes Before They Surprise You
Many people over- or under-withhold, leading to unnecessary tax bills or refunds. The fix: coordinate your deductions with your CPA, take advantage of deductible retirement plans, and don’t let the IRS hold your money interest-free.
Protect Your Income with Insurance
Life, disability, and health insurance protect the foundation of your financial plan—your ability to earn. Without proper coverage, one accident or illness could erase years of progress.
The Power of “Do-Nothing Money”
Roy introduces a mindset he calls Do-Nothing Money—savings that allow you to live for months or years without touching income.
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3–6 months = basic security
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5 years = career flexibility
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10 years = total financial freedom
This is the true goal of wealth building—money that works for you, 24 hours a day, while you sleep.
Building a Balanced Portfolio
A complete portfolio includes four major components:
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Money Markets – liquid cash for emergencies and opportunities.
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Bond Funds – lower risk, steady income, and stability.
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Stock Funds – long-term growth and inflation protection.
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Annuities – guaranteed income and downside protection.
Younger investors should focus more on stocks (“owners”), while retirees shift toward bonds and annuities (“loaners”) for predictability.
Understanding Annuities
Annuities act as a safety net for retirees, providing guaranteed lifetime income and tax-deferred growth.
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Fixed Annuity: steady interest, like a long-term CD.
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Fixed Indexed Annuity: principal protection with upside potential.
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Variable Annuity: market exposure with optional income riders.
Used correctly, annuities supplement retirement income and guard against longevity risk—living longer than your money lasts.
The Bottom Line
Financial success isn’t about avoiding every mistake—it’s about recognizing them early and making consistent, smart changes.
Start where you are, automate savings, avoid debt, and focus on long-term growth.
🎧 Listen to the full episode: Stop Losing Money – Fix Common Mistakes and Build a Rock-Solid Plan
Business Owners on the Air with Roy
Are you a successful small business owner, or maybe you know someone who is! Roy wants to interview business owners who have success stories for inspiration to our listening audience, to share their journey from starting out to success. Nominate someone you may know, or yourself, by clicking here.
