9 major money mistakes in 30s

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

I am in my early thirties, and it seems that I am finally starting to understand how to properly handle personal finances. I know exactly how not to repeat my past financial mistakes like useless expensive purchases or unnecessary savings on myself. But I keep making new ones.

By the age of 30, many of us have stable careers. Most are married or are planning to enter one in the near future. Some are starting to travel more, buying apartments and cars. Have a child or even two. But all this does not give a reason to be satisfied with our attitude to money.

I think this rule works throughout our life: we keep making mistakes, but we also keep learning from each of them and try to avoid new ones. So here's my list of potential money mistakes for anyone in their thirties. And on the threshold of my fortieth birthday I do not want to torment myself with the thought: “Oh, if only I had been told about this 10 years ago!”.

1. We buy too much clothes for the child

Probably all parents make this mistake. You buy clothes for children, not because they want to look good, but because YOU want them to look that way. It's hard to imagine how much money is spent on these cute dresses, boots, instantly breaking cars, "developing" mobile applications. Better save this money for his future education.

2. Getting married without discussing finances

Of course, money is a completely unromantic topic, but by the age of 30, it's time to learn how to discuss difficult issues. It is imperative to have a complete rapport with your significant other when it comes to money. Otherwise, money will become the main source of conflict in your marriage and a potential reason for divorce. So talk about money with the person you plan to build your future with and work out your financial goals together.

3. Debts and loans hang on us

Okay, not taking into account the mortgage. But such excuses are often heard:

If I lived alone, I would have closed this loan long ago.

I would pay off all the debts, but we have a child.

Something will always happen in life, both good and bad. But if we do this, we ignore our debts, then they become a barrier to opportunities that can make our lives much better. Get rid of loans! Stick to a tight budget, earn as much as possible, and pay off. By the way, the life of a single person at 20, 30 and 40 years old is very different.

4. We try to live "no worse than others"

The TV is bigger, the car is more powerful, the phone is more expensive. In principle, all ages are susceptible to the idea of having things "like people", and thirty - no less. Probably, the fact is that society is beginning to demand from us the confirmation of the status of an "accomplished person" especially strongly. In any case, do not forget to weigh your own expenses against income, resist the false temptations of an expensive lifestyle, and stick to your financial course.

5. Ignore the will

If you are in an informal relationship, you have a child, then take care of the legal side of the issue. It's unpleasant to think about death when you are only 30 years old, but you definitely do not want your loved ones to defend their rights in court when you are no longer around.

In short, there are three types of events that should trigger an audit of your finances: marriage, birth, and death.

6. Don't insure your life

Again, no one likes to think about death, but if there is someone in your life who is financially completely dependent on you, then you should insure your life. It doesn't hurt to think about health insurance, which will cover more than a compulsory medical insurance policy.

7. Don't think about retirement

It is still a long time before retirement, about thirty years, and the situation in the country, it seems, does not allow making long-term plans. Of course, it's too early to put retirement savings at the forefront, but it's time to sit down and calculate how much money you need when you stop working to maintain your current standard of living.

8. We do not share sources of income

Many of us are loyal employees, the employer values and cares for us. Our parents worked at the same job all their lives, now they receive a pension, but this option is not available for our generation. We need to look for ways to maximize the diversification of our income. Try to make money on something other than work: if there is a hobby that can bring money - let it do. After all, losing your job is not such a rare occurrence now, and no one besides you will take care of your future.

9. We do not invest in our health

Your body does not get better over the years, and the further, the less weakness it will forgive you. Exercising regularly, being in good physical shape, and eating well will ultimately cost you less than the medication and treatment you need after forty.

Some of this I see in my own life, I observe something in the lives of friends.

The good news is that we are no longer the naive children we were at twenty, and it is within our power to wake up, take control of the situation and start managing finances really correctly.

(based on the)