10 Worst Money Mistakes To Avoid In Your 30s
Saving is a way to accumulate money for future needs. This level of consumer debt not only hinders future borrowing capacity for things such as your own home, but it also creates the illusion of financial success (especially for some who post pictures of their supposedly affluent lifestyle on social media platforms such as Facebook and Instagram).
This retirement savings by age chart 2 gives an example of how much to save for retirement by age 30 through 60. Women also live longer than men, on average, so need more retirement savings - but they're already on the back foot because of the aforementioned.
While these aren't comprehensive, here are six money mistakes you need to avoid when you're in your 30s. 5 And consider high-yield savings accounts, money market accounts and CDs, which may offer better benefits than standard accounts. As a 20-year-old, I had the notion that if you wanted to build credit, you had to first build debt, and you needed to make monthly payments (but not pay off your balance) to build your credit history.
Look at it as, ‘I am going to work part time until I save enough money to buy a new car in two years.' Then, it doesn't become as onerous as it would if you were thinking, ‘I have to work two jobs for the rest of my life,'†says Frank Boucher, owner of Boucher Financial Planning Services Stock market in Reston, Virginia.
If taxes are eating up a considerable portion of your income, it is time that you start knowing the facts about retirement planning and start focusing on them as soon as possible. One way to do this is to set up automatic transfers from your bank account to a savings account or investment account.
It will give you the courage and positive energy you need to get rid of all credit card debt in your 30s. If that's not possible, then by all means, pay down the debt with the highest interest rate first - usually your credit cards. Smart investing involves thoughtful calculations and analysis of your income, your current situation, your long-term goals and your comfort level when it comes to risk.