Many people view their 30s as a vital decade, but there are often money mistakes that occur during this time. In the past, our forefathers bought houses, got married, and found stable jobs. Unfortunately times have changed and now millennials have more debt than any other generation before them. While this is due to many systemic problems of our time, there are still some individual mistakes you can avoid to create a healthier financial future for yourself.
Social media has a funny way of making us seem more insecure than we are in real life. We're constantly made to feel like we need to own the newest trending items, go on lavish vacations, and have amazing experiences--just so that we can post about it online. While there's nothing wrong with wanting what others have, this FOMO mindset can quickly become self-destructive if we're not careful. It's important to remember that Instagram influencers don't have the same income, financial obligations, or goals as you. Make sure you know what you need and set your own plan with corresponding financial goals. That way, you can spend accordingly.
One of the worst things you can do while living with your partner is to avoid talking about money. You need to be open about your financial situation, spending habits, and how much debt each person has.It is critical to have open communication about your spending and saving habits, whether you want joint or separate accounts, and if either of you plans to leave the workforce. This conversation will help lay the foundations for a healthy financial future.
A major drawback of spending without thinking is that most people don't set money aside for a rainy day. Even if you have a good job and are generally healthy, life isn't always predictable. You might suddenly lose your job, get sick or injured (especially in the U.S., where medical bills can be extremely expensive), or come across some other unplanned expense (like during a pandemic)It is healthy to save up a portion of your income every month, and we suggest that the savings should be enough to sustain your household income for up to a year. However, there should not be any limit to your savings.
It's time to face the facts: you won't be a contributing member of society forever, and that's okay! You need to start thinking about retirement, when you no longer have to work. Unfortunately, only a measly 25% of people in their 30s are already saving up for retirement. Our goal is to raise that number by educating others on the importance of saving at least 10% of their monthly income.Even if your job comes with a retirement plan, you should still have a personal retirement fund. Your career might not last forever, so it's crucial to always have savings set aside for later in life.
No one knows when the next economic recession will happen, so it's crucial to be financially prepared at all times. You can start by leading a healthy financial life during stable periods. By avoiding these top money mistakes people make in their 30s, you'll be well on your way to achieving long-term financial success.
