After a decade of trying to get by, experimenting, failing, and learning, most of us have figured out how to properly manage our lives and our finances by the time we hit 30. The 30-somethings likely have a better a job, a quicker mind, and a little more financial freedom; in addition, this is also the time when retirement and other financial issues become a little more real.
Many 30-somethings, however, still make many money mistakes even after the roaring 20s. Most of them will affect you much later in life:
Saving Too Much for the Wrong Reason
Once you hit the big 3-0, you should have a good idea of your priorities — and what kind of lifestyle you want to lead. This means it is time to stop saving up for stuff that is not important to you.
Save up and think about what you want to accomplish with your money. Some of the best ways to use your money, according to Rapidloans.co.nz, is to pay off your debt, get an investment, or apply for a retirement plan.
Not Putting Money Away for a “Rainy Day”
Believe it or not, many people simply do not have a basic savings account—one that they can use for emergencies, such as losing a job or being diagnosed with a certain condition that requires costly treatments.
If you already have an emergency fund, ask yourself — is it big enough to cover your current lifestyle AND a financial thunderstorm in the future? Remember that you now have different expenses and obligations compared to when you are in your 20s, and the emergency fund you had for that decade will not cut it for your 30s.
Not Talking About Money When Getting Married
It may not be a fun topic for a conversation, but discussing money matters, including your personal finances, spending habits, and financial plans with your soon-to-be spouse is crucial. Often, couples have this conversation too late, or worse, not at all, causing them to overlook significant financial differences.
Whether you are turning 30 or heading into your mid-30s, now is the best time to start reflecting on your finances. After all, you do not want the things you have done wrong to come and hunt you later in life.