I was excited, not sad, when I turned 30. It was time for a new era. A slightly more mature, less erratic era where I could invest a little more into the things that matter to me and begin to build something significant. For the first time in my life, when I reached 30, I had enough to save and put away money.
It soon became apparent to me that I was now going to need a new attitude to the whole making money thing and what I did with it. I have numerous friends who are buying homes and having babies and doing life well. I have other friends who are complaining about schooling costs and never seem to have any cash. I know which group I wanted to be in.
It was time to get money savvy and make my 30’s count. Here are some common errors people make in their 30’s when it comes to life and finances.
Not saving enough for retirement
I know, I know you are not at retirement age yet, or even nearly. The thing is when you do get there you want to be able to relax. Chill. Go for the odd holiday. Buy yourself something. That won’t happen unless you are organised and think ahead.
You should be putting away at least 10 percent of your earnings into savings. That’s right! 10 percent. Even if you can’t put away that amount then put away as much as you can.
Being too conservative in your investment strategy
Now is the time to get your savings in to an aggressive portfolio with 80-90 percent stocks. It’s the best bet for long-term goals.
It may not feel like your investments are ever going to grow or that you have so little to put away, however every little bit counts and if you add up the compound interest over the years then you will never regret getting started and being a little bit risky with where you invest.
Making debt a way of life
I feel like I need to write this in red letters: debt is not normal. It is not normal. Just because you have become used to having a credit card or amounts going off your account doesn’t mean it’s okay or healthy. Save up and buy. Plan ahead.
Do whatever you can to get out of debt and remain out of debt. Debt is always going to weigh you down and always costs you your emotional health.
Putting kids above financial security
We all love our children to death, and it’s a natural God-given desire to look after them and give them the best. All the same, you don’t have to give your child every toy they want. Children want an item for a day and then don’t want it the next day. They also don’t understand long-term goals or what is really good for them.
What a child really needs is financially secure parents.
Letting your professional life stagnate
Professional growth often slows down from ages 30-40. Don’t let your career stagnate and don’t lose focus. Stay on top of trends. Actively invest in your professional development. Go on courses, read material and listen to talks.
You should never stop learning in life, so don’t drift, drive.
Paying for a home you can’t afford
Owning a home is a dream most people have in life, but don’t buy a home before you are financially ready. And, if you do, make sure it is within your means. A mortgage which eats up all your savings is not a good thing.
Rent until you can actually buy a home, you are only going to create a lot of additional stress in your life if you rush into this too fast.
Spending too much on cars
Don’t pretend that people don’t equate the car you drive with the success you have – they do but it’s not a real thing. Your need for a car is something safe which gets you from a to b. Nothing more.
Don’t buy a car with fancy everything, air conditioning, sound systems, DVD players and all the rest when you know you can’t afford it.
Equating success with a life of luxury
The more money you make, the more you want to spend. Don’t live a lifestyle which keeps you broke. Remain intentional about where your money goes and you’ll build real wealth which lasts.
Invest in your future. Be wise and rock and roll your way through your 30’s in financial success.