10 Financial Mistakes People Make in Their 30s

Your 30s are a whirlwind – climbing the career ladder, maybe buying a home, and even starting a family. It’s an exciting time, but the choices you make now can seriously shape your future financial wellbeing. With so much happening, it’s understandable that you won’t always make the best decisions. But don’t worry – here are the 10 most common financial mistakes to watch out for in your 30s.

1. Buying an Expensive Car

We all love a shiny new car, but they drop in value the moment you drive off the lot. The more expensive the car, the bigger the hit. If you’re borrowing to buy, you’re paying interest on something that’s losing value fast. Stick to what you need, not what you want, and you could be adding hundreds of thousands to your future nest egg. Remember the saying: "Buy the cheapest car your ego can handle."

2. Buy Now, Pay Later

BNPL, credit cards, payday loans – there are so many ways to spend money you don’t have. Even if you’re keeping up with payments and dodging interest, you’re probably still paying extra fees. Plus, research shows people tend to spend 18-40% more when using credit instead of cash or debit cards. Let’s be honest – few of us can outsmart the banks when it comes to using credit to our advantage!

3. Fake Rich Now, Real Poor Later

Living within your means is an art, and it starts with knowing what it really costs to be you. Social media makes it easy to fall into the trap of keeping up with the Joneses – but spoiler alert, the Joneses are probably drowning in debt. Acting rich now by overspending means you might have to forgo important things down the track.

4. Forgetting to Save

A good rule of thumb is to save at least 10% of your income, but anything is better than nothing. In your 30s, time is on your side. Take Nicole, who starts saving $200 a month at 30. By 60, she’ll have $166,452 at a 5% interest rate. But if she waits until 40 to start, she’ll only have $82,207 – less than half!

5. Focusing Only on the Money

On the flip side, it’s possible to be too focused on money – working all the time, snapping up investment properties like it’s a race. The key is balance. Money is a tool to help you enjoy life, so make sure you’re aligning your spending with your goals. When you’ve got long-term goals in place and consistently work towards them, you can also spend on things that bring you joy, guilt-free.

6. Getting Caught Up in Investment Fads

From tulips to tech booms and crypto, investment fads come and go. We’ve all heard a ‘hot tip’ at a BBQ from someone who swears they know the next big thing. But let’s be real – stick to what you understand and diversify your investments to reduce risk. Slow and steady wealth-building beats the stress of get-rich-quick schemes every time.

7. Not Insuring Your Most Important Asset

It’s not your house, car, or fancy handbag – it’s you! For most 30-somethings, your biggest asset is your ability to earn an income. Most health-related absences from work are due to illness or non-work-related injuries, which aren’t covered by workers' comp. Income protection insurance can replace much of the income you lose due to illness or accident, but it’s a complex product – seek expert advice.

Not sure you need insurance- read this Do you really need life insurance? — bentnotbroke

8. Still Feeling Bulletproof

Unfortunately, death and disability can happen at any age. As I head into my 40s, I’ve come to realise that tomorrow isn’t promised to anyone. Now’s the time to sort out a Will, look into powers of attorney, and think about health directives. If the worst happens, these documents make it much easier for your loved ones to handle your affairs.

9. Ignoring Retirement

Retirement might feel like a lifetime away, but it’ll be here before you know it. Make sure your superannuation is ticking along. Check where your super is, ensure your contributions are being paid, and make sure you're happy with how it’s invested. Salary sacrifice, spouse contributions, and government co-contributions can all boost your super. Not sure where your super is? Jump onto the MyGov app and check out the ATO link for your super info – but be sure to follow up directly with your super fund for the latest details.

10. Being Too Hard on Yourself

We all make mistakes – we’re only human. But don’t beat yourself up over financial slip-ups. So, you used a credit card to fund that European holiday? It happens. The key is to learn from it and move on. A bad investment might make you hesitant to try again, but it’s all part of the learning curve. Understanding your money mindset early on will help you make better choices for the future.

With a bit of awareness and planning, your 30s can be a powerful decade for building wealth and setting yourself up for future financial success. But remember, there’s more than one way to build wealth – what worked for your parents or those around you might not align with your own goals or the lifestyle you want to live. Find what works best for you.

Need help straightening your financial path? Reach out, we’d love to help.