Are you in your 30s and curious about money mistakes to avoid? You are not alone! When you’re in your 30s, you want to be smart with your money. You’ve likely learned a lot of lessons from your 20s and you don’t want to make the same mistakes again.
Unfortunately, there are a lot of common money mistakes that people make in their 30s. In this blog post, we will discuss 36 money mistakes that you should avoid!
Why Money Mistakes To Avoid In Your 30s is Important
Your 30s are a crucial time in your life. You’re likely starting to settle down and you want to be smart with your money.
You don’t want to make the same mistakes you made in your 20s and you want to be on the right track for financial success.
Being in your 30s is also a time when you’re starting to think about your future. You want to make sure you’re doing everything you can to secure a bright future for yourself.
Making money mistakes in your 30s can set you back years, so you want to avoid them at all costs.
Some of the common money mistakes to avoid in your 30s include:
Money Mistakes To Avoid In Your 30s #1. Not having an emergency fund:
An emergency fund is important because it gives you a cushion to fall back on if you ever lose your job or have unexpected expenses. This is one of many money mistakes to avoid in your 30s.
Money Mistakes To Avoid In Your 30s #2. Not contributing to retirement:
It’s never too early to start saving for retirement! If you don’t start saving now, you’ll likely regret it later. Most employers offer retirement plans, so you should take advantage of that. Avoid this money mistake by all means.
Money Mistakes To Avoid In Your 30s #3. Not investing Enough:
One other money mistake to avoid in your 30s is not investing enough or not at all. Investing is important because it allows you to grow your money while taking less risk than gambling or stock market speculation. The early you start investing, the better!
Not Investing enough is one of the most common money mistakes people make in their 30s.
Money Mistakes To Avoid In Your 30s #4. Not budgeting:
A budget is important because it helps you track your spending and make sure that you’re not spending more than you can afford.
More Reading: What is the purpose of a budget?
Money Mistakes To Avoid In Your 30s #5. Not paying off debt:
Debt can be a drag on your finances, so it’s important to try to pay it off as quickly as possible. Debt weighs you down and can prevent you from reaching your financial goals.
Money Mistakes To Avoid In Your 30s #6. Not saving for a rainy day:
A rainy day fund is important because it gives you a cushion to fall back on if you ever have unexpected expenses.
More Reading: How to Aggressively Save Money
Money Mistakes To Avoid In Your 30s #7. Not taking advantage of employer matching:
If your employer offers a 401k match, make sure you’re taking advantage of it! It’s free money that can help you save for retirement. On average, you should aim to save at least 15% of your income for retirement.
Money Mistakes To Avoid In Your 30s #8. Not negotiating your salary:
Don’t be afraid to negotiate your salary! You likely have more leverage than you think, and you could end up making a lot more money if you’re willing to negotiate. Always negotiate your salary and avoid this money mistake in your 30s.
Money Mistakes To Avoid In Your 30s #9. Not tracking your net worth:
Your net worth is important because it shows you how much progress you’re making (or not making) financially. Make sure you know what your net worth is so you can track your progress over time.
Money Mistakes To Avoid In Your 30s #10. Not having insurance:
Insurance is important because it protects you from financial ruin if you ever have an accident or get sick. Make sure you have health, life, and disability insurance.
Money Mistakes To Avoid In Your 30s #11. Not taking advantage of tax breaks:
There are a lot of tax breaks that you can take advantage of in your 30s, so make sure you’re doing your research and taking advantage of them! Avoid this money mistake in your 30s.
Money Mistakes To Avoid In Your 30s #12. Not planning for major life events:
Major life events like having a child or buying a house can have a big impact on your finances. Make sure you’re prepared for them by doing some planning ahead of time.
Money Mistakes To Avoid In Your 30s #13. Not investing in yourself:
This is one of the money mistakes to avoid in your 30s. Investing in yourself is important because it allows you to improve your skills and knowledge so you can earn more money.
Money Mistakes To Avoid In Your 30s #14. Not taking care of your health:
Your health is everything! Your health is important because it affects everything else in your life. Make sure you’re taking care of yourself by eating right, exercising, and getting regular check-ups. If you want to live better and take care of your health today!
Money Mistakes To Avoid In Your 30s #15. Not building good habits:
Building good habits is important because it allows you to make progress in your life without having to think about it too much. Some good habits to develop include exercise, healthy eating, and budgeting.
More Reading: Bad Money Habits to Avoid
Money Mistakes To Avoid In Your 30s #16. Not setting goals:
Goals are important because they give you something to strive for and help you stay on track. Make sure you’re setting both short-term and long-term goals so you can have a roadmap for your life.
Money Mistakes To Avoid In Your 30s #17. Not staying disciplined:
Discipline is important because it allows you to stick to your goals and make progress in your life. Make sure you’re staying disciplined by setting a schedule and sticking to it.
Money Mistakes To Avoid In Your 30s #18. Not taking risks:
Taking risks is important because it allows you to grow and learn new things. Make sure you’re willing to take some risks in life so you can experience all that it has to offer.
Money Mistakes To Avoid In Your 30s #19. Not being grateful:
Gratitude is important because it allows you to appreciate what you have and be happier in life. Make sure you’re taking time each day to focus on the things you’re grateful for.
Money Mistakes To Avoid In Your 30s #20. Not learning from your mistakes:
Mistakes are inevitable, but you can learn from them so you don’t make the same ones again. Make sure you’re taking the time to reflect on your mistakes and figure out what you can do differently next time.
Money Mistakes To Avoid In Your 30s #21. Not taking time for yourself:
You need to take care of yourself both physically and mentally in order to be successful. Make sure you’re making time for yourself each day to relax and recharge.
Money Mistakes To Avoid In Your 30s #22. Not setting boundaries:
Boundaries are important because they allow you to have control over your life. Make sure you’re setting boundaries with your time, energy, and emotions so you can focus on what’s important to you.
Money Mistakes To Avoid In Your 30s #23. Not taking breaks:
Taking breaks is important because it allows you to come back to things with fresh eyes and a new perspective. Make sure you’re taking breaks throughout the day to rest and rejuvenate.
Money Mistakes To Avoid In Your 30s #24. Not saying “no”:
Saying “no” is important because it allows you to set boundaries and protect your time. Make sure you’re comfortable saying “no” to things that you don’t want to do so you can focus on what’s important to you.
Money Mistakes To Avoid In Your 30s #25. Not taking care of your finances:
Your finances are important because they affect every other area of your life. Make sure you’re staying on top of your finances by budgeting, tracking your spending, and saving for the future.
Money Mistakes To Avoid In Your 30s #26. You Keep a “Stash” of Debt
If you’ve been diligently paying off your student loans, credit card debt, and other bills each month, you might think you can afford to let a little debt slide. Maybe you rationalize that you’ll pay it off “someday.”
But interest rates on credit cards and other loans can be quite high, and the longer you carry a balance, the more money you’re shelling out in interest. If you’re not able to pay off your debt within a few months, you’re probably better off finding a lower-interest loan or line of credit to pay it off.
Money Mistakes To Avoid In Your 30s #27. You Don’t Review Your Insurance Policies Regularly
Your needs change as you move through different life stages, so it’s important to review your insurance policies regularly and make sure they still meet your needs. For example, you might need to adjust your health insurance coverage if you have a baby or get married.
And as you get older, you might need to reconsider your life insurance coverage. If you’re not sure what kind of insurance you need, talk to an agent or financial planner.
Money Mistakes To Avoid In Your 30s #28. Piling up Credit Card debt
Credit card debt can be costly, especially if you’re only making minimum payments. If you’re carrying a balance on your credit cards, try to pay it off as quickly as possible. You might need to cut back on your spending or find a way to increase your income to make this happen, but it’s worth it in the long run.
Money Mistakes To Avoid In Your 30s #29. Buying too much house
A house is a big financial investment, and you don’t want to end up “house poor.” That means you’re spending so much on your mortgage, property taxes, and maintenance that you don’t have much money left over for other things. When you’re buying a house, be realistic about what you can afford. It’s also important to consider the future and make sure you won’t need to move soon.
Follow the “28/36” rule, which says your housing costs (mortgage, property taxes, insurance, and HOA fees) should be 28% of your gross income. And your total debt payments (housing costs plus any other debts you have) should be 36% of your gross income.
Most people buy expensive homes they can afford now but may not be able to afford later.
Money Mistakes To Avoid In Your 30s #30. Buying an expensive Car
Like a house, a car is also a big financial investment. And unless you’re buying a used car, it’s likely to lose value as soon as you drive it off the lot.
If you’re buying a car, be realistic about what you can afford and don’t get caught up in the features and bells and whistles that you don’t need. A simple car will do just fine.
Money Mistakes To Avoid In Your 30s #31. Trying to keep up with the Joneses
It’s easy to get caught up in the “keeping up with the Joneses” mentality, especially when you see your friends and neighbors buying new cars and houses.
But you need to remember that they might not be able to afford those things either. Just because someone appears to be doing well financially doesn’t mean they are.
So don’t compare your financial situation to others. Focus on what’s best for you and your family.
Money Mistakes To Avoid In Your 30s #32. Not diversifying your investments:
Diversification is important because it allows you to spread your risk across different asset classes. For example, you might have some money in stocks, some in bonds, and some in cash.
If one investment loses value, you have a better chance of offsetting those losses with gains in other investments.
You can diversify your investments by investing in different asset classes, such as stocks, bonds, and cash. You can also diversify within asset classes, such as investing in different types of stocks, such as large-cap, small-cap, and international stocks.
Money Mistakes To Avoid In Your 30s #33. Not Setting a College Fund for your Kids:
If you have kids, you need to start saving for their college education as soon as possible. The sooner you start, the more time you have to save, and the more money you’ll have when they’re ready to go to school.
There are a few different ways you can do this, such as setting up a 529 plan or investing in a Coverdell ESA. Talk to a financial advisor to see what’s best for you.
Money Mistakes To Avoid In Your 30s #34. Investing too conservatively:
Investing too conservatively can be a mistake, especially if you’re young and have a long time horizon. When you’re young, you can afford to take more risks because you have time to recover from any losses.
So don’t be afraid to invest in stocks, even though they may be volatile. Over time, stocks have outperformed other asset classes, such as bonds and cash.
Money Mistakes To Avoid In Your 30s #35. Not having a will:
A will is important because it ensures that your assets will be distributed according to your wishes in the event of your death. If you don’t have a will, your assets could go to the state or to relatives you may not have even been close to.
Money Mistakes To Avoid In Your 30s #36. Not Teaching Your Kids about Money:
One of the most important things you can do for your kids is to teach them about money. Money is a tool that can help them reach their goals, but it’s also something that needs to be managed properly.
Teach your kids about budgeting, saving, and investing. And instill in them the importance of being responsible with money.
People also ask
What should you avoid in your 30s?
Answer:
Some things you may want to avoid in your 30s include:
- Not saving for retirement
- Not diversifying your investments
- Not setting a college fund for your kids
- Investing too conservatively
- Not having a will
How much money should I save in my 30s?
Answer:
How much you should save in your 30s depends on your financial goals. If you’re trying to save for a down payment on a house, you’ll need to save more than if you’re just trying to build up your emergency fund.
A general rule of thumb is to save at least 15% of your income, but you may need to save more depending on your circumstances.
Where should you be financially in your 30s?
Answer:
There’s no one-size-fits-all answer to this question, as everyone’s financial situation is different. But there are a few things you should aim for in your 30s:
- Having a solid emergency fund
- Paying off high-interest debt
- Investing in your retirement
- Building up your savings
- Investing in yourself (through education or training)
What can you do with money in your 30s?
Answer:
Some things you can do with your money in your 30s include:
- Investing in your retirement
- Building up your emergency fund
- Investing in yourself (through education or training)
- Paying off high-interest debt
- Diversifying your investments
- Setting up a college fund for your kids
Just to name a few!
Key Takeaways – Money Mistakes To Avoid In Your 30s
Avoiding these common money mistakes will help you stay on track financially in your 30s. If you’re not sure where to start, consider talking to a financial advisor. They can help you create a plan to reach your financial goals.
There are a number of money mistakes you can make in your 30s. To avoid them, you need to be realistic about what you can afford, diversify your investments, and set aside money for your kids’ college education for example.
You also need to be mindful of the potential risks you’re taking when you make financial decisions. But as long as you’re aware of the mistakes you could make, you’ll be in a better position to avoid them.
Over To You
What are some other money mistakes people make in their 30s? Share your thoughts in the comments below!
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About the Author
Don is a father, real estate investor, self-directed investor and a personal finance enthusiast. He also holds an MBA and loves to share his financial Journey with others.