5 Money Mistakes To Avoid After 30

Photo by Yan Krukau

Making money mistakes in your 20s is okay. You don’t have much to lose and you always have time to turn things around. But doing the same in your 30s isn’t a good idea. This decade in the middle of your working life is critical and defines how the rest of your life will pan out. 

But what mistakes do people make at this age? Let’s take a look so you can avoid them. 

Living Paycheck To Paycheck

The first mistake people make in their 30s is living paycheck to paycheck. Instead of putting money away for a rainy day, they continually spend up to the limit of what their income will allow (and sometimes beyond). 

To avoid this, automatically deduct a proportion of your income from the source. Take out 10 to 20% every month and automatically deposit it in an investment account. Keep it growing for several years before you think about letting up or allowing your spending habits to get the better of you. 

Taking Out Expensive Loans

Another thing you’ll want to avoid in your 30s is taking out expensive loans. A mortgage is okay – you need somewhere to live. But personal and car title loans can charge obscene levels of interest, often hundreds of percent per year. 

You can avoid the temptation to take out these loans by keeping yourself busy with work or reminding yourself that incurring these debts simply isn’t worth it. If you’re finding that living expenses are getting too high for your income, your best bet is to move. 

Keeping Up With The Joneses

You’ll also want to avoid the temptation to keep up with the Joneses during your 30s. While you might want a nice car or an expensive vacation like the neighbors, that sort of thinking could land you in significant financial hot water. 

Instead, practice living below your means and becoming comfortable with having less in the present. Your future wealth will thank you for it. 

Neglecting To Take Out Insurance

Another thing to avoid is failing to take out adequate insurance on your vehicle, health, property, and so on. Not covering yourself properly leaves you vulnerable to the disasters that occasionally befall people as they go through life. 

Only you know how much cover you require, but it’s best to err on the side of caution. Having a little extra is always better than not having enough. 

Failing To Review Your Financial Plan

You also want to avoid failing to review your financial plan when you hit your 30s. You need to be purposeful, ensuring you’re putting away sufficient money every year to fund your retirement and life goals. 

It’s a good idea to look at your financial plan every 3 to 6 months. This approach lets you incorporate new information but lets you avoid constantly changing directions and trying new things. 

So there you have it: some of the money mistakes you’ll want to avoid after you hit 30. Which of these are you making already?

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