inancial responsibility is one thing that eventually catches up with you irrespective of whether you’re ready to embrace it or not. We go from “Mama, what’s for dinner?” to “Wow, I really have to stop splurging and start saving up for my dream house.” How time flies. Once upon a time, you were just kicking it with that hottie and next thing you know, you are on Google in search of an affordable but competent hospital to birth your first child. Such is life.
The money decisions you make in your 30s is a critical bedrock for your financial future. There’re certain money mistakes people make in their 30s that etch it’s consequences deeply in an individual’s future. Worse still, these mistakes don’t just affect you but your family and loved ones. This is just the right age window to chart your course in life and if you’re still going broke trying to get that dream double drawn wig, it’s not too late to reroute.
These money mistakes people make in their 30s should be far from you…
#1. The anything goes mentality
Fresh out of your vibrant 20s, and you think “what will be, will be.” News flash: what will be, will not be. If you continue guzzling your money without a proper financial plan/goal, 20 years from now you just might be in a rented apartment still daydreaming about your dream house in broad daylight.
#2. Being unnecessarily competitive
If there’s one of the most common money mistakes people make in their 30s, it’s this one. Purchasing unnecessary items in a silent competition with your peers just to create a façade of success is a bad decision. Understanding that every individual’s life process is totally unique to them would help you get over the “underachiever” feeling you have going on. Delayed gratification is a tool people in their 30s shouldn’t do without. Focus on building your desired future other than trying to impress people who truly can’t be bothered.
#3. Turning a deaf ear to insurance plans
While nobody wants to come to terms with the fact that their luxury apartment could go down in flames or their latest SUV could get into an accident, the truth remains that these unforeseen incidents can happen to anyone. Protecting properties and even lives should be an integral part of your wealth creation and sustainability plan. Find out what insurance plan works best for you, understand exhaustively what it entails and dive right in. Life is too short.
#4. Not keeping a financial record
To be honest, sometimes these principles sound easy on paper but in reality it’s a skill you need to harness. Knowing where your money goes is key. You should no longer wake up and realize that your salary is wiped out and when you ponder on what you spent it on, you can’t seem to figure it out. And consequently, you just shrug your shoulders and whisper a “ what the heck.” This is financial irresponsibility at its peak. Simply put, know where your money is going and also exactly what not to do with it no matter the pressure.
#5. Having just one source of income
We get that at this point in life, jobs have become careers but to achieve a lifestyle several rungs up the financial ladder, you need to have more than one source of income. It’s true, you love your job and you’re willing to build a career with it but nobody ever became wealthy on one source of income. These money mistakes people make in their 30s keep them comfortable but always a step below financial freedom. Always have at least two sources of income, you could bank one and spend the other.
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” –Alexa Von Tobel
Featured image: kevin turcios | Unsplash
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