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6 Financial errors to avoid in your 30’s

30’s is that stage of life when we have chosen our career path, set in our profession, some are married, and some are even parents. This becomes a critical time when one needs to take their finances seriously compared to what they did in their 20’s. 

But in order to be wise with money and be financially secured, we need to make sure that we avoid some mistakes. So, let’s go one by one and see what mistakes we are likely to make, and which can be avoided. 

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  1. Splurging on your Credit Card: The first thing to remember when swiping your credit card is that the money doesn’t belong to you, and you are spending some one else’s money which you will have to return. It’s easy to swipe a card but if you default in your payments or go for monthly minimum payment, you are drowning yourself in a mess you will struggle to come out of. 
  2. Lifestyle you can’t afford: It’s very easy to get influenced with what your friends or peers have and following them you want the same. But when you dig deep into your pockets, you only land up making a hole. Rather than going for a big house or car which is out of your budget, just to show off, start by buying what suits your pocket and bank balance and gradually over the years, you can buy bigger and fancier things by saving up for them. 
  3. Not or investing too less: Time value of money is very critical, and we need to make the most of it when the time is right to make it work in our favour. With family and a child to raise and educate, you will have to invest well to make sure you are able to accommodate all expenses which will go beyond your salary at times. Also, a family desires a good vacation which again needs money and when you invest and earn from it, you will find the trip worth it. So don’t wait, get investing as the clock is ticking and you are losing time. the right time to invest is now. Don’t wait for anything or get influenced with what others say.
  4. Not getting insurance: As we grow as a family, the most crucial thing to do is to make sure that our family is secured in case of any unprecedented event or untimely death. Also, when medical expenses strike, they can be very high and when you have a medical insurance to back you up, you save yourself from the struggle of arranging money by borrowing or taking a loan. Having insurance is to ensure your families wellbeing and keeping them protected financially. 
  5. Not having an emergency fund: In my earlier blog, I had spoken about what is an Emergency Fund and why it is needed (Read here). Emergency fund gives you the much-needed cushion to meet the unplanned expenses like emergency hospitalization, loss of job, urgent travel etc. Having an emergency fund will make sure that you don’t need to borrow money from someone in the time or crisis. It should amount to at least 6 months of your salary saved up to give you a good support in challenging times. 
  6. Not Budgeting: Budgeting is a habit which helps us to stay within our spending limits. Budgeting keeps and eye on your spending and when done right, it helps you attain your future goals easily. So make budgeting a part of your financial habit. Read my blog on Benefits of Budgeting here
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One of the best things to do in your life is to start saving early. While in your 30’s, you are laying foundation for a secured future with all your savings and investments and any delay or defer in that can impact adversely, not just to you but your entire family. 

This blog is a part of Blogchatter’s #halfmarathon

By mummatalks

Mom of two brats, use to work as an analyst now a SAHM. Love books.

28 replies on “6 Financial errors to avoid in your 30’s”

ohh yes, 30s is the crucial time period to make some solid decisions about life. And taking wise steps is must to have a smooth future. Many in this age bracket go though the phase of spending beyond our capacity. But if we have to plan for a better future, this habit need to be tackled.

For a better future financial planning is really important to do some saving and a good investment in our early 30’s instead of unnecessary spending .. U have come up with good points thank you for sharing

yes I agree most of the people makes these mistakes in their 30s. specially many people adopt a lifestyle that they can not afford actually. your entire series was so informative and I learnt a lot with this about different financial aspects.

Not having an insurance was one of the regret I have it and then never did that mistake again. I am happy that I do not rely on credit cards much and do the payment swiftly . This post is a perfect guide to make smart choices at early age.

Bang on buddy I would have loved to bear this points a decade earlier but it is never too late, glad you shared them for all

I guess, after kids i started to save for the emergency savings. yes as you mentioned not getting influenced by others is the important part. we do sometimes drift away by people of social media.

The 30’s are indeed a crucial time in terms of financial planning. This is the time when careers stabilize, financial investments are done for the long and short terms. This is really the time to ensure you do not slip and make the kind of financial errors that you have described.

Both me and my wife are past our 30’s now but we could relate to everything mentioned in this post. One of the financial errors I committed in my 30’s was not investing in property when the prices were dirt cheap. I could have afforded a bigger house 10 years ago but ended up being complacent and confused if I may say so. Now the real-estate prices in my region are over the top and I simply cannot afford them.

I wish I would have read this before I left the milestone of 30 years but it’s not so late to learn how to avoid such financial errors. Thanks for sharing this !!

Couldn’t agree more! These mistakes that we inadvertently do and fall back on our own wrong-doings. Credit card splurging is one of the biggest mistakes people do, along with not having an Emergency budget.

30’s is the time of life when you itch to splurge. A few only understand that this is the right time to make the right financial decisions.

Truly said a solid financial planning is needed for fruitful future. Agree that in 30s we don’t focus on investment which is needed

This is a very important post, specially for youngsters who have just started earning. There is a tendency to depend a lot on credit cards, once we get new ones. It is a dangerous practice for our finances.

A very concise post. Splurging on credit card for unnecessary lifestyle expenses is so common and one of the main causes of debt accumulation. Investing in insurance is crucial.

Very apt recommendations here dear like they came from an expert. I am about to start my forties and your recommendations make a lot of sense to me

Financial investments are key from an early age too and its important to not do mistakes or errors that can be avoided, This post throws good light on the common errors that happen at an early age as most of us start earning good money’s and are excited to use it for lifestyle improvements.

This financial planner and insights are so important for the youth of today. The way you have explained in a step by step procedure is commendable.

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