By the time we are getting to the 30 mark, we have our lives on track. We are no longer expected to be experimenting and acting as we did in our 20s. While we have never been this age before, we are still all expected to show a certain maturity, especially in finances that comes with the age. So what are the mistakes a 30 year old can make in their finances?
Going graduate school for the wrong reason
Graduate schools are not cheap. If you are going to pursue that MBA, you need to have a good reason for doing it. Never go back to school just because everyone is doing it and you need to brag to your friend about it. Only do it if you really think it will have an impact in your future career.
Being too optimistic
Having a positive view of life is great. However, you really need to know what is possible and what is not. Do not expect to be Kim and Kanye rich if your job does not pay that much right now. Having a positive outlook on life keeps you moving, however too much optimism will drain you and keep you feeling miserable.
Spending too much on the wedding
Your wedding may be the most special day of your life. Sure, it only comes once but this does not mean that you should spend everything you have to have your dream wedding. All that is needed are the vows you will say to your spouse, a few witnesses and the marriage certificate. Overspending will get you into debt before your marriage even begins.
Not discussing finances before the marriage or before moving in
While love is important in a relationship, the number one cause of divorce in the word is finances. Letting your partner know how much you make and knowing how much they make will give you a better chance at making better financial decisions. You will also know whether to open a joint account or not.
Overspending on the first baby
The first baby is always a special one for a couple. They are usually awaited with much joy and expectations. They are loved and given undivided attention. However, over spending by buying excessive items and expensive everything is a mistake many first time parents make and the stuff they buy end up never being used anyway.
Not having insurance
When you are young, you are told to get insurance. It does not really mater what type, just get something. Because it is not fun to talk about insurance people just never ask the right question only to realize years later that they have neither the right type of insurance or the right amount.
Investing in the wrong places
Investing is important. It will help you have another means of income and a way to get a little extra money. What many people in their 30s do is investing in the wrong places such that they either end up losing their money or never having enough returns.
Not having retirement plans
Your retirement is important. Many will ignore the details because they think they are too young to invest in such things. However when you have a good retirement plan you have it easier in future.
Investing too much on college and forgetting the retirement
Children are important in the life of any parent. What you do not realize is that your children will probably still be learning even after your retirement. It will not help you to have a bad life with no support while your children study. Investing in both will help you both now and in future.
Not having a disability plan
Everyone hopes for the best but it is always good to prepare for the worst. Statistics have shown an increase in the number of disabled people by the age of 50s. investing in a long-term disability plan will cover you in case.
Forgoing to draft a will
It is weird and difficult to think about death in your 30s but it could happen. If you have a wife and children, you do not want to leave them with both the pain of losing you and losing what is theirs to the state. A will is therefore a great idea.
Taking jobs for the money
When you reach your 30s, it is no longer time to take jobs for the money. You need to think about your future and take jobs that are more permanent and that will help you grow both your future finances and your career.
Finding alternative ways to have money
At your 30s, probably having just one source of income is sustainable. It could help you pay your bills and live comfortably. However, when you retire you will need a place o get extra money., so invest in a hobby that could make you money of a business that will be a source of income both now and after you have retired.
Not saving enough
By the time many people reach 30, they already have an account where they save. However if your spending lavishly then you are not saving enough for the future. Ensure you always have 6 months of expenditure saved just in case you lose your job.
Not paying off debts
Debts will kill you slowly. If you have not settled your debts you will be bringing a lot of baggage to your family. Ensure that you pay off your consumer debts so that your family does not have to spend in paying accumulated interests.
Buying expensive houses and cars
Everyone loves to have themselves a nice expensive car and a mansion to live in. not many can afford that though especially in their 30s. Ensure that you are saving enough, you will have them I future now it will be a waste of money that would have been invested elsewhere.
Not investing enough in your children’s education
I is important that you remember that the most important thing you will ever leave for your children is a good education. Therefore invest enough and when they have a great job, you will be reaping the fruits of your labor.
Life makes it so it is difficult to know when you are doing the right thing and when you are not. Sometimes you learn after already making a mistake. Avoid making a lifelong mistake by not spending your money wisely.