11 Money Mistakes We Make in our 30s

In our 20’s, through trial and error, most of us learn the basics of money management. But, once we hit our 30’s and take on the added responsibilities of raising kids and owning a home, we need a whole other level of money management skill. Read on and commit to avoid these 11 money mistakes we make in our 30s, according to experts consulted by Business Insider:

1. Saving too much in the wrong places. You need to save for more than retirement. Besides an emergency fund, don’t forget to save for a home, car, vacations and other big purchases.
2. Prioritizing your kid’s education over your own retirement. Remember, you can’t borrow money to retire on. Saving money for retirement is your number one priority over saving for your kid’s education.
3. Neglecting insurance. What would you do if something happened to your spouse? Could you afford to take care of them long-term or raise your children if your spouse passes away? You should have enough life insurance to either replace the income of the main breadwinner for years (i.e. life insurance that is 10x their annual income) or to cover the costs of childcare if the stay-at-home parent passes away. You also need to make sure you have enough health, home, and disability insurance to protect your family.
4. Not having long-term disability insurance. This is a bigger risk than not having life insurance. You are more likely to become disabled and unable to work. It’s risky not to have it.
5. Not talking about money when you’re planning to get married. We posted an article about this specific subject. An important conversation to have.
6. Spending too much money on the wedding. Today, the average wedding costs $26,000! Have a smaller wedding and save the difference for other things.
7. Going all out on the first kid. You don’t need top-of-the-line everything and your child doesn’t need every toy available. Read our tips for ways to raise a baby without breaking the bank.
8. Overspending on cars. You don’t need a fancy vehicle to get from point A to point B. As soon as you drive out of the dealership the new car you just bought is worth less than you just paid for it. Get used, decent cars that are in good shape. Take care of it and drive it for years before getting a different one. Also, pay cash for it. It’s great not having a car payment!
9. Going to graduate school for the wrong reasons. Graduate school isn’t cheap. You should only go to graduate school if it truly helps further your career and you know exactly how it will help you in the long-term. If you are fuzzy on how it will help further your career, don’t do it.
10. Taking a job for the short-term money. A new job making more money sounds great, but if it won’t further your career path and set you up for making even more money later, then the short-term money hurts you in the long run.
11. Assuming you’ll have more money in the future. Don’t overspend now thinking you will be making more money later to make up for it. Live below your means and save for the future, because you never know what the future will bring.