If you make it out of your 20’s and are not covered in debt then you probably think that you are in the clear. Some of the biggest financial planning mistakes that people make are not the quick spending and fast living lifestyle in the twenties but actually the long haul through the thirties and beyond. By the time that you get to your thirties you might think that you have a handle on financial planning. Hopefully you do not have high amounts of credit card debt and loans from university but if your credit rating is in shambles then now is the time to begin rectifying your mistakes. Avoiding some of these financial planning mistakes in your 30’s is the surest way to have a secure financial future.
Financial Planning in your Thirties
Don’t save too much in the wrong places. Obviously you need to save for retirement but do it wisely and don’t forget to save for other big purchases along the way. Maximize your superannuation but also tuck money away for big purchases such as cars, vacations, and education for the kids in separate accounts.
When you do save for your kids’ education cost, do not let your retirement funds suffer. Look after yourself first because your kids might not ever want to go to college and if they do then they can always work and take loans to cover the cost. Saving some for them is essential for giving them a head start but college is also when they should start making their own financial choices.
Never forget to have insurance. Life, home, health and disability insurance just to start with. The older you get and the more you have depending on your income, the more you should have everything covered by insurance.
When you start your relationship with your partner it can be a bother to talk about financial planning but it is a crucial foundation that your future will be built on. If you do not talk about the cost of living and what your goals are then you two might be thinking of leading different lives and not even know it.
One thing many couples do when they are young and in love is spending far too much on a wedding. The pictures might last forever but if you are not careful, so can the debt that you take on to throw that big white wedding.
Once the wedding bells have stopped and the crying baby is on the way you might want to get everything that every baby blog suggest. Refrain from going all out on the first kid.
Speaking of overspending, do not over spend on cars. Cars will devalue significantly while you own them and you should try to make them last as long as possible.
Many people in their thirties go back to school for a Master’s Degree or decide to change careers all together. Before you go back to university make sure it is for the right reasons. Also in your thirties you might be tempted to take a job just for the money. Make sure that whatever position you take comes with a career path and a possibility to get pay raises.
Everyone assumes they will have more money in the future but one of the best financial tips is to practice living at your current income for the rest of your working life. If you have debt, take care of it now because it will only grow if you do not.