As we grow older we understand the importance of money. The reason is that we start to earn and know how hard to is to work all day only for a few dollars. Most of the people start to save in their early 30s. They know that with savings they can make their dreams come true, give their kids a decent future and have a relaxed life after retirement.
However, everyone does not have the skill of saving. Even the most mature personalities make some of the common money mistakes that are not expected from them. Here we have listed 6 money mistakes that you should avoid in your 30s.
1 – Saving in all the wrong places
It is important that you save for your retirement but remember that it is your early 30s and there are many other expenses that you will have to deal with.
So all their savings goes into the retirement plan. In case you are getting married or planning to have kids, it is the worst decision that you can plan. You have to save for a house or your kid’s education today. That is why when you are planning to save money make sure that you divide the saving amount into different portions so you can meet all the requirements.
2 – Preferring your kid’s education over retirement
Parents always want their kids to do their best. Parents give the best atmosphere to their children to assure that they can perform their best in schools. There are few families where kids are not allowed to work only because it might waste their time and so they would be able to focus on studies.
It might be a good decision for parents that have a huge business and they can easily afford their kid’s education. However, there are many that have to work day in and day out to assure that the requirements of their kids and house can be managed. In this situation when you will prefer your kid’s education over your retirement, future might get tough when kids will move out. That is why it is advised you should keep proper check and balance regarding where you are investing your money.
3 – Having too much credit card debt
One of the biggest money mistake that most of the individuals make is that they have too much credit card debt.
- They utilise more than they can repay and that is why they will pay the minimum amount
- It will have a negative effect on your credit score and because of the deal soon more internet and late fee will be added to your big
- In this situation, you should look for a solution like debt relief plans
- It is important that you get out of the debt as soon as possible so that you can focus on the future
- Check out our debt guide to help with debt here
4 – Neglecting insurance
Do not make the mistake of neglecting insurance. In the present age, it has been noticed that the number of diseases and accidents are rapidly increasing because of our own mistakes. It means that if you have gone through an accident or any kind of emergency you can take help from the insurance companies according to your plan.
In case that you do not have the insurance, things can get really tough for you. It will be hard for you to manage such a huge amount of limited time and because of money, you might lose your loved ones. There are different types of insurance plans available. You should select the one that meets your requirements and budget properly.
5 – Overspending
There are many individuals that are trying to follow the luxurious lifestyle. They want to have the best of everything, but they do not pay attention towards the amount that they are earning. This is the reason that when they overspend on the items that they do not even require saving money can get tough for them.
It is important that you learn some saving habits so you can avoid overspending. Most of the people in their 30s overspend on a luxurious car or their first kid. We can understand that all these things are important to you but it is better that you consider your future before overspending on any item that you have. If you like to watch movies or eat at a restaurant you can limit your plans from daily to once a week. In this way, you will spend some extra money.
6 – Taking jobs for short-term money
A common mistake that people make is that they select the job with less money when they are in their 30s. it is only done to save money for the future and you can get the experience for your dream job. However, working at such small jobs will waste your time and money. It is a better option that you look for jobs that will help you to earn extra in future without doing much hard work. Jobs for short-term money will waste your time and talent in something that does not have a role in your future.
There are many individuals that believe that they are going to have a lot of money in future only because they got their dream job. Optimism is a good quality but when it comes to money, it can be very dangerous. Do not assume that you will be making millions in your 40s when you are not working on it. You have to live below your means in order to be the best and if you’re still in your 20s check out our 10 money mistakes to avoid in your 20’s