8 Money Mistakes to Avoid in Your 30s

Are you nearly approaching that 30^th mark? Just turned 30? Or already in your 30s yet don’t have any major accomplishments you can be proud of?
If you’ve answered yes, then maybe it’s time to ponder on your expenses and make changes in your lifestyle. Know that your 30s is the period for focusing on your future, as you should already have an established career, on your way to becoming financially stable, and perhaps get married and start a family.
But then again, financial mistakes are inevitable, especially during your 20s. Fortunately, you can avoid these errors by knowing how to manage your money well to achieve your long-term goals.
Here’s a list of the 8 common money mistakes that you need to avoid, particularly when you reach your 30s.

Having Credit Card Debt

There’s no denying that credit cards can really come in handy, but not having knowledge on how to appropriately use it can result in having inescapable huge amount of debts that would haunt you for a long time.
So, if you’re thinking of applying for one, make sure that you can pay for each swipe, as well as choosing only the minimum limit available to avoid becoming broke in the long haul. If possible, postpone that application until you’re 100% certain that you can commit to having a credit card.

Disregarding Pawnshops

Pawnshops have been around for a long time and have been of great assistance when meeting short-term cash needs. In fact, 72% of Filipinos has been to a pawnshop. You may resort to getting money from a pawn loan by going to a nearby pawnshop or through online pawning at PawnHero.ph, which gives a free estimate for the item/s you’re planning to pawn.
However, you should know how to manage your money to avoid paying for penalty charges that may add up to your expenses.

Going Overboard When Shopping

Shopping can really be therapeutic, especially for women. But, going overboard when shopping by buying tons of trendy, cheap items that would only last for a short time, thinking that you’re getting more isn’t really the way to go.
Instead, invest in more expensive and classic pieces that you know you can use over and over again. This also goes with other items in the marketplace such as electronic devices, home appliances, and furniture, among others.

Not Diversifying Your Income

While having a stable job in your early years may fit your current lifestyle, focusing and giving it all your time and energy may not be ideal.
What if your employer suddenly decides to lay off employees to cut down costs, what if the demand for your job decreases, or if you decide to change your career path?
Diversifying your income is another way to prepare for your future, and you can do this by having a backup plan or even more—depending on your needs. Consider doing freelance jobs, putting up a small business, or any other possible ways you can come up with to earn extra cash along your day job.

Not Discussing Finances with Your Spouse

Discussing finances may be a sensitive topic for some, but not talking about it can significantly affect your marriage, your child’s future, and worse—may even trigger your separation. It is important to know that you and your spouse are on the same page with regards to money, so you can both determine how your lifestyle would be.
Talk about your monetary goals, how you’ll handle your expenses, and other important matters as early as possible to avoid inconveniences and make better financial decisions as a couple.

Overspending on Your (First) Child

For first-time parents, buying stuff for your kid can be exciting. However, bear in mind that purchasing lots of clothes, shoes, toys, and expensive baby accessories (e.g. strollers and cribs), which they’ll outgrow eventually can cause an enormous toll on your finances.
Nonetheless, there’s nothing wrong with buying them things, more so when these can be passed on to your next child. But then, you need to give more consideration on their bigger needs such as their health, food, education, and other extra-curricular activities that are essential to their growth.

Putting off Savings for Retirement

You may think that your retirement seems far away during this age, but starting early can give you bigger savings once you reach your retirement period.
Don’t worry about losing your savings while in your 30s, as this amazing opportunity only comes once and will only leave you with regrets in the future if you’ll only let it pass.
You may consult financial advisors and ask for the best option for your goals to avoid investing your money in the wrong places.

Neglecting Insurance

People overlook insurance because it’s an idea that’s not fun to talk about. But, completely neglecting having insurance plans—both for disability and death poses a lot of risks, as it would not only affect you as an individual, rather the people that you’ll be leaving behind.
As early as your 30s, you should already have one, as it’s still less expensive than applying later in life.
These are only 8 of the usual mistakes that people fall for when it comes to money. Make better life decisions by understanding these items and avoid committing the same errors again for a bright future ahead.