Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
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

Blog

Blog

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!

Oops, you forgot something.

Oops!

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

36798 Comments

Reply off white clothing
8:12 PM on December 8, 2022 
I wanted to draft you this very small observation to help give thanks once again relating to the beautiful thoughts you have contributed above. This is so remarkably generous of you giving openly exactly what a lot of folks could possibly have advertised as an e-book to make some cash for themselves, mostly considering that you could have done it in case you decided. These basics likewise served to become a good way to comprehend someone else have similar desire much like my very own to know the truth whole lot more with regards to this problem. I think there are many more enjoyable sessions ahead for those who start reading your site.
off white clothing http://www.off-whiteclothing.us.org
Reply off whtie t shirt
8:08 PM on December 8, 2022 
I needed to send you one very little note in order to give thanks yet again over the fantastic ideas you have documented here. This is simply unbelievably generous with people like you to make without restraint all most people could have offered for an e-book in making some profit for their own end, most notably now that you might well have tried it in case you desired. The points also served to become good way to fully grasp other people have the same dreams just like mine to understand way more on the topic of this issue. I believe there are numerous more fun instances in the future for individuals that scan through your site.
off whtie t shirt http://www.off-whiteclothing.us.org
Reply irving shoes
6:15 PM on December 8, 2022 
I simply wanted to type a quick word to appreciate you for these splendid pointers you are sharing here. My time intensive internet look up has now been honored with high-quality information to go over with my company. I would claim that we site visitors are very endowed to be in a remarkable community with very many brilliant people with useful techniques. I feel extremely happy to have come across the webpage and look forward to tons of more thrilling minutes reading here. Thanks once more for a lot of things.
irving shoes http://www.kyrieirving-shoes.us.com
Reply yeezy
4:24 PM on December 8, 2022 
My spouse and i have been really more than happy that Albert could carry out his homework through your ideas he gained out of your blog. It's not at all simplistic to simply happen to be giving for free tips which some others have been making money from. And we also do understand we've got you to appreciate for that. Most of the explanations you made, the simple blog navigation, the friendships you will help instill - it is mostly extraordinary, and it's really aiding our son in addition to us reckon that the subject is excellent, and that's particularly important. Thank you for the whole lot!
yeezy http://www.yeezy350boost.us.com
Reply golden goose sneakers
4:14 PM on December 8, 2022 
My husband and i ended up being so glad Chris could round up his analysis because of the ideas he made through the blog. It is now and again perplexing to just be releasing guidelines which often people may have been trying to sell. And we also do know we've got the website owner to appreciate because of that. The specific illustrations you've made, the simple site menu, the relationships you aid to foster - it's everything powerful, and it's making our son in addition to us understand this idea is cool, which is certainly extraordinarily fundamental. Thanks for everything!
golden goose sneakers http://www.goldengoosetime.com
Reply supreme clothing
12:22 PM on December 8, 2022 
Thank you a lot for providing individuals with an extremely nice possiblity to read from this web site. It can be so excellent and as well , stuffed with amusement for me and my office fellow workers to visit your website on the least thrice in one week to see the new items you have got. And lastly, I am at all times contented for the incredible pointers you give. Selected 2 facts in this posting are easily the best we have all ever had.
supreme clothing http://www.supremesonline.com
Reply palm angels
12:07 PM on December 8, 2022 
My husband and i have been quite glad that Raymond could deal with his inquiry with the ideas he gained through your blog. It is now and again perplexing just to continually be releasing tips and hints which many people could have been making money from. So we see we now have the writer to give thanks to for that. Most of the illustrations you have made, the simple website menu, the relationships you will make it easier to foster - it's got all incredible, and it is helping our son and the family reckon that that subject is interesting, and that's wonderfully important. Thank you for the whole lot!
palm angels http://www.palmangels-outlet.com
Reply off white hoodie
11:39 AM on December 8, 2022 
My spouse and i were quite happy Chris managed to deal with his investigations through your ideas he acquired when using the web page. It's not at all simplistic just to be handing out ideas which people today might have been making money from. Therefore we realize we now have the writer to be grateful to for that. All of the illustrations you have made, the straightforward site navigation, the relationships you will give support to foster - it's got many astounding, and it's helping our son in addition to us do think this concept is cool, and that is exceptionally indispensable. Many thanks for the whole lot!
off white hoodie http://www.off-whites.us
Reply supreme new york
10:29 AM on December 8, 2022 
I wish to show my love for your kindness giving support to men who require assistance with in this situation. Your very own commitment to getting the solution up and down came to be amazingly effective and have without exception empowered women much like me to get to their endeavors. Your amazing informative help and advice signifies a lot a person like me and somewhat more to my mates. Many thanks; from each one of us.
supreme new york http://www.supremenewyork.us.com
Reply goyard bags
10:29 AM on December 8, 2022 
I together with my friends were looking at the excellent items found on the blog then the sudden got an awful feeling I never expressed respect to the web blog owner for those techniques. The people ended up for that reason excited to see them and have seriously been using those things. Many thanks for actually being really thoughtful and for deciding on this sort of cool subjects most people are really desperate to know about. My very own sincere regret for not saying thanks to you sooner.
goyard bags http://www.goyardshandbag.us
Reply kawhi leonard shoes
10:29 AM on December 8, 2022 
I enjoy you because of all your valuable effort on this site. My aunt delights in making time for internet research and it is simple to grasp why. We all know all relating to the lively manner you convey informative things through the web site and as well as boost participation from other individuals about this idea and my child is really understanding a lot. Take pleasure in the remaining portion of the new year. You're the one doing a brilliant job.
kawhi leonard shoes http://www.kawhileonardshoes.us
Reply ggdb
10:28 AM on December 8, 2022 
I simply wished to thank you very much once again. I do not know what I would have made to happen without these information documented by you on such a question. It became the depressing matter in my position, nevertheless considering a new well-written manner you solved the issue made me to weep for happiness. Now i'm grateful for this support and then hope that you are aware of a great job that you are providing teaching people today thru a blog. I am certain you have never met all of us.
ggdb http://www.goldengoose.us.org
Reply off white outlet
10:02 AM on December 8, 2022 
Needed to post you that little bit of observation to help give many thanks over again on your precious knowledge you have documented on this site. It's unbelievably generous of people like you to allow publicly what a few individuals could have sold for an electronic book to help with making some profit for their own end, even more so now that you could have done it in case you desired. These tricks in addition worked as the easy way to know that other individuals have the same fervor like mine to find out more and more regarding this matter. I am certain there are thousands of more enjoyable moments ahead for many who examine your site.
off white outlet http://www.offwhite.us.org
Reply jordan shoes
10:02 AM on December 8, 2022 
Thank you a lot for providing individuals with remarkably memorable opportunity to read critical reviews from this web site. It is always so pleasing plus full of a great time for me and my office colleagues to visit your blog particularly 3 times weekly to read the newest issues you have got. Not to mention, I am also certainly satisfied considering the remarkable things you serve. Selected 1 areas in this article are surely the most effective we have ever had.
jordan shoes http://www.air-jordan.us.com
Reply nike sb dunks
10:01 AM on December 8, 2022 
I wish to show thanks to the writer just for rescuing me from this type of trouble. Because of researching through the online world and coming across things which are not beneficial, I thought my entire life was gone. Being alive without the presence of solutions to the issues you have sorted out by means of this guide is a crucial case, and the kind that would have adversely damaged my entire career if I hadn't encountered your blog. Your actual knowledge and kindness in playing with all the things was excellent. I don't know what I would've done if I had not come upon such a thing like this. It's possible to at this time relish my future. Thanks for your time so much for the professional and result oriented guide. I will not think twice to propose your web page to anybody who wants and needs care about this subject matter.
nike sb dunks http://www.sbdunk.us
Reply jordan 6
10:01 AM on December 8, 2022 
I actually wanted to send a word to express gratitude to you for those superb instructions you are giving out at this website. My time intensive internet look up has at the end of the day been compensated with incredibly good information to go over with my pals. I 'd point out that we site visitors are unequivocally fortunate to exist in a fantastic community with very many marvellous people with very helpful secrets. I feel somewhat grateful to have come across your entire webpage and look forward to some more entertaining times reading here. Thanks a lot again for a lot of things.
jordan 6 http://www.jordan6.us.com
Reply palm angels t shirt
10:00 AM on December 8, 2022 
I and my friends were found to be viewing the excellent pointers located on the blog then instantly I got an awful feeling I never expressed respect to the website owner for those secrets. Those boys appeared to be totally excited to learn them and have very much been taking pleasure in those things. Appreciation for turning out to be really helpful and then for considering certain awesome things most people are really wanting to learn about. Our sincere apologies for not expressing gratitude to sooner.
palm angels t shirt http://www.palmangels-outlet.com
Reply JamesTyday
9:55 AM on December 8, 2022 
atarax medication canadian pharmacy online ship to usa plavix price canada nexium generic india yasmin generic price buy flagyl cheap
Reply off white t shirt
9:37 AM on December 8, 2022 
I'm also commenting to let you be aware of what a useful encounter my cousin's girl developed visiting your blog. She mastered a lot of details, not to mention what it is like to possess an excellent teaching style to let other folks completely know precisely a number of very confusing subject matter. You really surpassed visitors' desires. Thank you for churning out the essential, trustworthy, educational and in addition cool tips on this topic to Mary.
off white t shirt http://www.offwhitetshirt.us.com
Reply yeezy boost 350
9:08 AM on December 8, 2022 
I just wanted to post a quick word so as to express gratitude to you for the nice tips you are posting on this site. My time consuming internet lookup has at the end of the day been paid with beneficial information to write about with my visitors. I would assert that most of us visitors are undeniably fortunate to be in a magnificent website with so many outstanding professionals with great solutions. I feel rather grateful to have seen your site and look forward to tons of more fabulous times reading here. Thanks again for everything.
yeezy boost 350 http://www.adidasyeezyboost350.us.com