Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

Becker & Associates



11 WORST Money mistakes to make in your 30's

Posted on July 15, 2015 at 3:50 PM

11 Worst Money Mistakes to Make in Your 30's!

1. Saving too much in the wrong places.

Investing is important, but don't put off saving for other big purchases coming along, especially if you're starting to have kids or looking to buy a house, that you want to have savings for.

Contribute money towards a retirement fund but don't forget to set aside money for other things, such as a house, car, vacation, or your children's education. This could mean setting up multiple savings accounts (which, right now, are not earning much in the way of interest) or the use of interest earning Life Insurance products....kind of like killing 2 birds with one stone by protecting against the loss of a spouse you can also save and earn interest that may be much higher than any bank is paying.

2. Prioritizing your kid's education over your own retirement.

While focusing too heavily on the 401(k) is a common mistake, not setting aside enough money for retirement also remains a big issue, especially when kids enter the picture.

Obviously, your child's education is important, but your number one priority in your 30s — even if you have a family — should be retirement.  Think long term; if you don't set aside enough money for your own retirement, your child may have to support you in the future, which could end up being more expensive in the long run than student loans would be, or worse, they will have not have the abililty to help or be interested in helping you and you'll be on your own.  Helping an aging parent/s can put a damper on your children's ability to save for their own retirement and their children's education, etc.

"Make sure you're on pace for a decent retirement before you start setting aside money for college. Once you're on pace for that, and you have extra funds that you can set aside for a goal like college, definitely do that. You can start a 529 savings plan or interest earning Life Insurance products when the time is right.

3. Neglecting insurance.

Insurance in general — health, life, home, and disability — often gets put on the back burner, for two main reasons: It's not something that's fun to talk about, so it often gets put off longer than it should be.  Many times, people don't get great insurance advice. I cannot stress enough the importance of purchasing Life Insurance when you are young!  Not only will your premiums be lower for the life of your plan, but you will most likely be in your best health in your 20's and 30's.

Until people have children, they just don't seem to consider the importance of Life Insurance, but the earlier you buy, the more you'll be able to afford due to age and your health status.  Even if you purchase an inexpensive "Term" plan that has a good conversion option, it's like getting your foot in the door and "saving your insurability".  When you choose to convert it will be based on your age at the time of conversion but the rating you were issued at to start with will remain the same regardless of any health changes, weight gain, etc. and will not change or effect your premium.

4. Not having long-term disability insurance.

One type of insurance that gets neglected more so than others is long-term disability insurance, but not having it can be extremely risky.  Disability insurance is meant to provide income should you be disabled and unable to work, which is more likely to happen that many of us may think. It's estimated by the Social Security Administration that over 25% of today's 20-year-olds will be disabled before retirement.

Many people will pick up group life insurance (which you lose if/when you lose that particular job), which is usually barely enough for final expenses and covers you only if you die, but they don't think about the disability — especially if it's not paid for by the company — and that's your bigger risk. You're not dead, but you can't work, so now you have to watch yourself go broke.

5. Not talking about money when you're planning to get married.

It's not a fun or easy conversation to have, but discussing your personal finances, spending patterns, and financial plan with your partner is crucial.  Many couples often have this conversation too late in the relationship (or not at all).  By the time they're finally sitting down to discuss it, there's already a big emotional investment in the relationship, which causes couples to overlook major financial differences.  Nothing can put stress on or even ruin a marriage like money problems!

The conversation must happen, and the earlier the better. First, you have to understand the financial background of your partner which allows you to understand how they make financial decisions. Next you can move into the conversation about whether or not you want to separate finances if you're both working; if you decide to combine them, you must agree on how to spend the joint money.

6. Spending too much money on the wedding.


Too many people are spending an absurd amount of money to have a huge wedding.  Today, the average wedding costs a whopping $26,000.

Host a smaller wedding, and use the extra money to put toward a down payment on a house. Pulling off a great wedding under $5,000 is possible if you plan on a budget.  It's a better idea to go small and save big!

It does come down to personal preference; if a big wedding is important to you, that's fine — just start saving for it early on.

7. Going all out on the first kid.

When the first kid comes along, what tends to happen is that new parents will overspend on top-of-the-line cribs, bottles, clothes, and nursery accessories. Spending issues that we tend to see in 20-somethings will level out until the kids come along, and then it explodes.

You want to raise your child in a comfortable environment, but check yourself before dropping a couple grand on that fancy stroller and draining your savings, as there are bound to be unexpected costs to arise.  Also, babies grow fast!  Why spend tons of money on things that you're only going to use for a few months or even a year or two?

The worst all parents are guilty of is buying every cute toy you see.  You reason that your child "needs" this to grow up with or learn on.  Many parents come home as many as 5 times per week with "something" for the baby.  Keeping a spreadsheet of your expenditures (even the small ones like the energy drink and the candy bar at the gas station stop)  will help you SEE what you are spending and where you can cut back. 

For the cost of a toy, most 30 year olds can buy a half million life insurance policy!  Cut out ALL impulse spending and see how much you can save or invest in your insurance needs!  Most babies are happier with some pots and pans or a can full of ping pong balls than the expensive toy anyway.

8. Overspending on cars.

Another area the experts see overspending is cars. "People get bored with cars quickly. They always want a new car and so they're always dealing with a car payment.  But it's a hugely depreciating asset. You don't want to be putting a lot of money into something that's going to be worth nothing after a certain number of years.

Egan says to space your cars 10 years apart. After buying a new one (Buying a used car with low mileage could be the best deal you can get, as soon as you drive a brand new car of the lot it's depreciated (check the Kelly Blue Book on this!), be sure to pay if off in five years max; that way, for the next five years, you can build up other savings. After 10 years, hit the dealerships again. If you took good care of your previous car, you may even be able to trade it in, which will help with the payment of your next one.

Another option is leasing a car.  The monthly payment is usually much less than if you "buy" the car because in a lease situation you're only "using" the car and there is no equity at all when leasing.  You'll have a monthly payment forever doing this, albeit a lower one, because each time you turn in your leased car for a new one, the new payments start right up.

9. Going to graduate school for the wrong reasons.

Graduate school comes with a hefty price tag, which is why you want to be positive you're going back to school for the right reasons, especially if you're paying for it out of your own pocket.

It should definitively aid your career track, but if you don't know what you're targeting to do after you get the MBA, that's not the right path. If getting your MBA will help you secure a position that you want for your long-term career, then it's a perfect solution.

10. Taking a job for the short-term money.

You're preparing to enter your peak earning years by your mid-30s, and it's important to prepare for this phase of your life.

You don't want to just be taking jobs for the money at this point.  You want to be taking the job that is going to prepare you to make a lot more money in your late 30s and early 40s.  Hone your skills and be ready to be the best at what you do.  This will ensure a higher chance of getting and keeping a job and of earning higher wages or salaries. 

Look at what you decide to do as a "career" and be the one that employers are looking for like never being late, looking neat and professional no matter what your position, don't take time off for non-emergency situations (this makes you unreliable!), Do the best work you can, by just putting in the minimal required effort for the task you're given says to your employer, you don't really care about your job.

11. Assuming you'll have more money in the future.

While optimism is a good quality to have, too much can be dangerous, especially when it comes to money.

People tend to assume they'll be making significantly more money in their 40s, he explains, which they use to justify overspending in the present moment. This is the number one mistake most young people make.

The rule of thumb should be to live below your means. If you can't afford to buy the new car, then buy certified pre-owned. Savings first should be your mentality: Save for retirement first, then prioritize other things you wish to save for or spend with whatever is left over. What people typically do is the opposite of that, thinking, I've got to buy this, this, and this, and whatever's left, I'll save.

Pay your future first, and make sure your present is secure.  Be in control of your future.  It's not as difficult as it seems if you make saving a LIFESTYLE!




Categories: Life,Death and Illness & Injuries Happen, Be Ready!, Life Insurance for YOUR Retirement! , Disability Income Products

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply curry shoes
2:20 PM on November 3, 2020 
I simply wanted to construct a small remark so as to express gratitude to you for those unique steps you are posting at this website. My time intensive internet investigation has at the end been recognized with useful facts and strategies to exchange with my friends and family. I would repeat that we readers are very much lucky to be in a fine network with many special people with very beneficial principles. I feel rather happy to have seen your site and look forward to many more brilliant moments reading here. Thank you once again for a lot of things.
curry shoes
Reply supreme clothing
2:20 PM on November 3, 2020 
Thank you so much for providing individuals with an exceptionally marvellous opportunity to read from this blog. It's usually very cool and packed with fun for me and my office fellow workers to visit your blog not less than 3 times per week to read through the newest items you will have. And definitely, I am actually motivated with all the brilliant inspiring ideas you serve. Selected two ideas in this posting are in reality the most impressive we have all had.
supreme clothing
Reply CarlPew
2:13 PM on November 3, 2020 
tadalafil otc uk viagra 50 mg tablet online sildenafil tablets online generic levitra us viagra generic brand
Reply AlanPew
1:53 PM on November 3, 2020 
order viagra online canadian pharmacy cheap amoxicillin tablets acyclovir 5 cream over the counter viagra cost in india where to buy viagra in india sildalis without prescription best price for viagra in us buy quineprox where can i buy motrin 800 mg zocor online how much is accutane where to buy generic viagra online safely buy generic celexa online daily cialis generic robaxin v viagra in mexico cost buying valtrex online diflucan usa prandin 2 mg price zithromay
Reply Amybinly
1:15 PM on November 3, 2020 
zofran otc canada
Reply supreme clothing
1:11 PM on November 3, 2020 
My wife and i have been very cheerful when Michael could carry out his investigation through the ideas he obtained from your very own weblog. It is now and again perplexing just to possibly be releasing tips and hints that many the others have been selling. Therefore we keep in mind we now have the website owner to give thanks to because of that. All the illustrations you've made, the simple site menu, the relationships you can make it possible to create - it is everything sensational, and it's assisting our son and us reason why that theme is awesome, which is very fundamental. Thanks for everything!
supreme clothing
Reply best term insurance
12:01 PM on November 3, 2020 
whole life insurance rates by age
Reply Homework For Pre K
11:41 AM on November 3, 2020 
rates payday loans cash advance
Reply Lisabinly
11:05 AM on November 3, 2020 
plaquenil uk price
Reply LisaPew
9:34 AM on November 3, 2020 
benadryl 2
Reply MaryPew
9:17 AM on November 3, 2020 
ivermectin humans tadalafil 2.5 mg cost valtrex australia minocycline for sale viagra 12.5 mg how to get viagra prescription online us viagra prices best price levitra 20 mg viagra tablet india accutane mexico
Reply state auto insurance
8:05 AM on November 3, 2020 
analytical trigonometry homework reverse mortgage stockton mortgage quick loan payday loans direct writing a literature review essay writing for mba brighthouse life insurance
Reply PaulPew
6:23 AM on November 3, 2020 
buy neurontin uk where can i buy zofran buy priligy online usa where to buy prednisolone 5mg buy alli 120
Reply kd 13
5:30 AM on November 3, 2020 
Thanks a lot for providing individuals with remarkably splendid chance to read from this web site. It is usually so useful and as well , full of fun for me personally and my office co-workers to visit the blog more than thrice a week to read through the fresh issues you will have. Of course, I am also usually fascinated with your mind-blowing ideas served by you. Selected 1 areas on this page are particularly the most impressive I've had.
kd 13
Reply bape clothing
4:15 AM on November 3, 2020 
I and my guys were found to be studying the great pointers on your web site and so at once developed an awful feeling I never thanked the web site owner for those secrets. My ladies had been absolutely joyful to read through all of them and now have undoubtedly been taking pleasure in these things. Thanks for being indeed kind and also for choosing such good useful guides millions of individuals are really desirous to discover. Our honest apologies for not saying thanks to sooner.
bape clothing
Reply safe auto insurance
3:51 AM on November 3, 2020 
cheapest car insurance companies buy homework solutions thesis statements cheap auto insurance in michigan travelers auto insurance quote reverse mortgage calculator
Reply KiaPew
3:23 AM on November 3, 2020 
generic cialis without prescription
Reply Markbinly
3:04 AM on November 3, 2020 
zovirax buy can i buy sildenafil over the counter canada cialis over the counter coreg rx proscar 5mg bentyl 10 mg cap cipro 1 buy ventolin online canada
Reply Lisabinly
2:59 AM on November 3, 2020 
valtrex prices
Reply jordan shoes
2:13 AM on November 3, 2020 
I together with my pals were found to be reading the good suggestions found on your site and so immediately I got an awful feeling I had not thanked the web blog owner for those secrets. Those boys are actually as a consequence passionate to study all of them and have surely been taking pleasure in these things. Thanks for turning out to be well helpful and then for pick out this sort of fabulous issues most people are really desperate to know about. My personal honest apologies for not expressing appreciation to you sooner.
jordan shoes