The plant's overpotted, IMO, and the soil's too water-retentive - cut it with 50% perlite or the like and repot in the new mix. There is an FAQ link below for you.

Here is a link that might be useful: Aloe FAQ

Your aloe doesn't look all that bad. Like cactusmcharris said, better draining soil will make a world of difference. And as much sun or direct light as you can give it will help, too.

I am in a very moist (wet, really) area. My plants are outside all year. So I have gone to the gritty mix that drains fast. It has helped my plants a lot.

It was in a very small pot before, I thought it was too small, and I have cacti soil in it now. So my pots too large? And what do you mean "cut it with 50% perlite" ? I've had it sitting in the middle of a sunny room since I got it.

Well, a bigger pot holds more soil and the soil holds the water. That can lead to rot, and you don't want that. By mixing perlite with your cactus soil, you can improve the odds of the plant not sitting in water. Mix 1 part soil to 1 part perlite and you'll have it cut 50%.

I have my Aloe vera in an 8 inch orchid pot. I'm sure it was overpotted at first. But I have used a good draining mix for the plant and it stays outside all year. The top dressing of rocks helped hold it up until the roots took hold well.

You can see the outer leaves are starting to yellow and die back, but the middle growth is still good.

Here's when I first potted it up. You can see a damaged leave that self repaired.

I'm in soggy Florida, so a well draining soil is a must. And with our weather I can leave it outside all year, so it get plenty of direct sunlight. I think this guy may move to my landscape soon!

Yes, it should be in a smaller pot. Your healthy yellow roots should overall have about an inch or two of growth room. When it gets larger it will be ready for the pot it's nw in, which will quite possibly do this after being raised right..

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I will try to get a new pot this weekend, how large do you suggest? The base is roughly 2-3 Inches wide.' If I get a new pot, do I still need perlite?

And a little off topic, but how can I clean the leafs on my aloe plant? They have water spots that are bothering me.

Yes, you do, if you want to use that soil (which isn't porous enough for the Aloe to prosper). As I said, imagine the root ball, then a pot a little larger than that.

Yes, you can I guess - use distilled water and wipe dry.

cactusmcharris - Very nice plant!

What sizes pot do I need? Don't have money to make any more mistakes. I wanna get this right..

Can I save the soil I'm taking out when repotting, I literally just bought it and don't want to waste it. If I can, how can I save it? I don't want to put it back in the original bag because I want to use it when it needs to be repotted again when it gets larger.

Yes, of course you can - empty the pot and plant of its soil, cut it with the suggested perlite, and repot. It's generally a good idea to use fresh soil when repotting, but to each her/his own.

I have this pot it came with, it was in a smaller plastic container inside of this pot. Though it has no drain holes it may be possible to drill the bottom if this is a better size for my plant? Also in noticed the bottom of the leaf that was kinked at the base is now curling at the edges of the leaf, and it's turning a lift green at the bottom of the leafs. You can kinda see the pot placed beside the current pot.