Money Mistakes are common challenges that most people go through in their lives.
It’s not uncommon to feel that you’re stuck in a rut or that your life is stagnant, especially in your 30s.
The decade is marked by major life events, from turning 30 to buying a home to maybe even starting a family. It’s also a time when you’ve been out of college for a few years and have had some time to see how the real world works.
In short, it’s a pivotal time in your life.
In your twenties, debt is a bad word. In your thirties, debt is a good word. In your forties, debt is an ugly word.
If you’re in your thirties and you’re debt-free, congratulations. If you’re in debt, that’s okay too but you need to be more proactive about eliminating debt.
Many people who are in their 20s, have already formed their financial habits, which can have a long-term impact on their financial stability.
For this reason, it is important to avoid the top money mistakes people make in their 20s, so you can start your financial life off on the right foot.
The real issue is that you’re past the age where money mistakes can be easily tucked away and forgotten about. But if you’re in your thirties and don’t have any debt, you should certainly be in a better financial position and avoiding the money mistakes that affect most people in their 30s.
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Spreading yourself too thin
When you have a lot of responsibilities, there can be a lot of pressure to do everything yourself. This can be especially true when you’re an entrepreneur and you’re trying to get your business off the ground. However, there’s no reason why you need to do everything yourself. If you’re an entrepreneur, then you’ve got a lot on your plate already. You know that you need to do everything possible to make your business a success. But sometimes, this can make it impossible for entrepreneurs to take care of everything.
Additionally, having too many financial responsibilities may affect your personal finance. This is because you will always be looking for extra financial resources to meet your needs which will end up putting you in more debt than you had expected.
It is important to live within your means and ensure that your financial and physical responsib9ilities are not affecting your business/income.
Not saving enough
“30s is the decade when everyone starts to save money. However, it is a known issue most people don’t know how much they should save, and how to do it.”.
For most people in their 30s, saving money is essential to their financial survival.
This is the decade when most people start thinking about retirement and saving for big purchases like homes and cars. The challenge is that most people still think of saving money in the traditional way: putting a few dollars away in a jar every week and hoping it will add up to something significant in the future.
It’s when you’re in your 30s that you start to realize that you’re not saving enough money.
You have a mortgage, a family to support and a future to plan for. This is when you start to think about your long-term savings and realize that you need to make some changes. The good news is that it’s easier than you think.
All you have to do is create a budget to determine your income and expenses. You can then plan the extra money from the difference to allocate it to your savings.
It is often recommended that you save at least 20% of your income. If you cannot comfortably allocate this percentage of your income after budgeting, can decide to cut on some expenses or increase income streams to have more money to allocate towards your savings.

Spending too much on unnecessary things
You are in our 30s. You are working. You are making money. And most importantly, you are spending that money on things that do not matter!
However, feeding a lifestyle that is way above your means on meaningless items or activities is a money mistake that you should avoid in your 30s.
These issues may worsen if you are in a company of richer friends or family and you are constantly called upon to live a life that is above your means.
You should strive to spend your disposable income after expenses, savings, and retirement.
Not investing or Not Investing Enough
You may think that you are saving money by not investing, but the truth is that you are missing out on a great way to make money.
If you are not saving, then it is likely that you are spending more than you need to on things like your utility bills or food.
You might be able to find some high-interest savings accounts that will pay you more than you would get in a bank, but the interest rate will be lower than if you were to invest.
If you’re turning 30 years old and feeling a pang of regret about not investing money, don’t fret. You have plenty of time to build wealth.
What’s more, you have the advantage of being aware of your own financial mistakes. If you’re just starting out, you might not realize you’re making mistakes. But now is the time to fix them before they turn into bad habits.
Here are a list of ASSETS TO BUY IN YOUR 30S.
Buying a House You Really Can’t Afford
Buying your first house is a big deal; it’s a major financial commitment. So if you’re going to buy a home, make sure you can afford it, and that the purchase will be worth it in the long run.
Otherwise, you could be setting yourself up for some serious financial trouble and creating more money mistakes that would ultimately affect your financial position..
If you’re trying to buy a house and you aren’t sure if you can really afford it, then use the total debt service (TDS) ratio. This is a simple calculation that helps you determine if the mortgage payment will be affordable for you.
The TDS ratio is based on your gross monthly income, taxes and insurance, and all other monthly debts. Divide your gross monthly income by the TDS ratio and this will tell you if you are in optimal financial position to acquire a house.
You could also use the conventional 28/36 rule where you should not attribute more than 28% to your house and not more than 36% of your total debt.
Not having a financial plan
Not having a financial plan is a mistake many people make in their 30s. When you are young, it is very easy to get caught up in all the excitement of life. You are out partying, dating, working hard, and spending most of your disposable income on the fun stuff.
While it is great to enjoy your youth, you should not put off financial planning or saving money for retirement.
Many people find that they don’t have the money they need when they are older because they didn’t spend their money wisely when they were younger.
Not having a financial plan in your 30s is a big money mistake “. This is the most common age group where people are financially unstable.
One of the main reasons why people are not financially stable in their 30s is because they don’t have a financial plan. Most people start saving for retirement in their 30s, but they don’t have a plan on how they are going to reach their goals. This is the time where you should be saving up, building your wealth, and investing for the future. You should also be considering buying a house or any other form of equity.

Not saving for retirement
“Can I afford to not save for retirement? “. This is the question that crosses the mind of every person in their 20s. You are busy building your career, trying to buy your first house, helping your parents with their mortgage.
You might have also started a family, or are paying for your kids’ extracurricular activities. It is easy to fall into the trap of thinking that saving for retirement should be your last priority.
After all, you have so many other things that you need to save for! This is one of the biggest money mistakes you are making”.
Do not be caught in this trap. You have to be disciplined about putting money aside for your savings, but it’s hard to resist the temptation of spending all your income.
The good news is that it’s never too late to start saving for retirement. The bad news is that it’s never too early either. If you still have time, it means that you have more opportunities to save money.
If you are looking for a retirement savings account, here are the differences between a Traditional 401(K) VS Roth 401(K).
Buying a Car You Really Can’t Afford
Most of us have been there at one time or another. Your spouse or significant other wants a new car, and you want to be the “good guy” by getting a large down payment and a low interest rate.
But, after a few months, the payments are adding up and you realize you’ve made a financial mistake. A car is a necessity in many cases. But, there are many options available to make the process less painful.
Buying a car is one of the biggest purchases you’ll ever make. But if you are buying a car that you can’t afford, it’s probably a mistake.
Sure, it may be fun to buy something shiny and new. But when you are making monthly payments on it, it’s also a major expense. Not to mention the insurance costs, registration fees, and other costs associated with owning a vehicle.
While it might be tempting, you should make sure that you are able to afford, not just the cost of the car but the extra maintenance costs.
This article provides a list of other money mistakes you should avoid to become more financially stable.
Final Word
Money Mistakes are very common occurrences in life. However, if you are younger these mistakes may not affect you as much. This is because you still have the time to recover any money lost.
As you grow older, you need to be more mindful about the money mistakes you make because you need to cater to higher and more varied expenses while simultaneously thinking about your future.
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