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10 Worst Money Mistakes People Turning 30 Want All 20-Somethings To Know

10 Worst Money Mistakes People Turning 30 Want All 20-Somethings To Know

We all make mistakes – whether small or big; we humans are prone to imperfections. When making mistakes relating to money, these can often be harmful. Here are 10 money mistakes that can potentially prove dangerous for people who are turning 30 or will be soon.

1. Not being able to save where it actually matters

Saving is one of the basics of life. However, if we save, and it doesn’t matter, why save? The key to saving is saving where it actually counts and actually matters. Investing is definitely important but don’t burden yourself.

2. Focusing on the next generation’s future (ie. education) and forgetting about retirement

It’s great to focus and pay attention to your kids. Retirement is also a big factor and you don’t want to put that off until later. Make sure you invest your time and money on your retirement also.

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3. Forgetting about insurance

Insurance is a valuable resource and tool in today’s day and age. Why lose focus on it?

Later in life, around your 40’s and 50’s, you can’t be sure what will happen. Instead of assuming everything will work out exactly as you’ve planned, be careful, and invest in your insurance, as it will provide you with extensive coverage and peace of mind.

4. What about Long-Term Disability Insurance?

When talking about mistakes, we must talk about long-term disability insurance. Many neglect this aspect of life.

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Statistics show that over 25% of Americans will be disabled before retirement. Do something before this takes a toll on you. It is always an advantage to be safe rather than be sorry. Make the right choice. Get that long-term disability insurance in check and working for you. You’ll be happy you did.

5. Forgetting to discuss money as marriage plans approach

Marriage is an expensive time in anybody’s life. Forgetting to discuss what money will be invested and spent is a huge mistake especially during a time when saving money is of great value.

6. Spending absurdly on that wedding we talked about

We all dream of having the perfect marriage with the bright and fancy colors. However, going overboard, when financial discretion should be shown, is a mistake many 20-somethings make. Don’t let it happen to you. Conserve when you can. Spend when it’s necessary and when it adds significant value. Don’t uselessly spend money where it doesn’t need to be spent. This can become a huge mistake that is sometimes irreparable.

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7. Wasting endless amounts of money on the first child

There is a huge difference between pampering and providing what your child really needs. A first child is every parents dream, but spending too much on the first child deprives the children who are born later. What if you spend so much on the first kid, and then forget to do it, or not have enough money for the rest of the kids? You don’t want to let this happen as all kids deserve to be treated equally. So, make you sure conserve some of your money here.

8. Car crazy

We all dream of the perfect car that looks amazing, speeds, and shimmers on the highway. However, spending excessively on that particular dream car, may lead you to doom. Don’t let yourself go all out on it. Conserve here again so you won’t regret later on in life especially when your thirties arrive.

9. Graduate School

Graduate School is a wonderful place to continue your education, knowledge, and build on your resume. However, having said that, don’t just waste money there, if you don’t really know what to do in life. If you have a clear plan, go all out to graduate school and secure your place. However, Graduate School is primarily expensive and is not for the masses. If you think you can do it, great! If not, disregard this option and continue working.

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10. Getting a job for money’s sake

Don’t do this. Money will come and go. Prepare for the next phase of your life but don’t push away dreams and aspirations for the sake of money. Money isn’t everything in the world. It is a safety net but it isn’t everything. You can’t buy away your love or dreams, so don’t do this.

Instead do something you love, and then hope to make a ton of money in the future. Just don’t do it for the present moment. Think about your long term goals.

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Ramanpreet Kaur

Currently a student but don't know what direction to go in: Let us see if writing gets me anywhere :)

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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