Handling your money in a proper way, right from the start is very crucial. Some money mistakes that should definitely be avoided by the people in their 30’s are as follows:-

1] Not Saving as Aggressively as you can –

Methods like save at least 20% of your income, or contribute enough to your PF’s to get an employer match, is just a starting point. You should aim to save more aggressively as your income increases.

You should contribute maximum into your PF’s (up to maximum limit allowed). Taking advantage of pre-tax retirement accounts is essential in your 30s and beyond, as it allows you to lower your taxable income and hold onto more of your money.

2] Not Protecting yourself with Disability & Life Insurance –

If you have a family and dependents, you need to think beyond your savings and get life and disability insurance to give protection if something happens to you. One should put in time to research insurance plans, or talk to a trusted adviser.

One type of insurance that gets neglected more so than others is long-term disability insurance and not having it can be extremely risky. Disability insurance is meant to provide income in case you get disabled and are unable to work, which is more likely to happen than many of us may think. Disability insurance will help keep you financially afloat if you’re sick or injured and can’t work for a time. Life insurance will provide much-needed money to your spouse or dependents in case of eventuality. You may get disability and life insurance through your employer, but if not, you can purchase individual policies.

3] Having Kids Without Preparing for Expense –

If you are planning for kids in the next few years, begin preparing financially today.

The cost of child care can come as a shock. And as your kids grow, they’ll be involved in after-school activities, go on field trips. You might need to buy a bigger home or a home in a better school area (which often results in higher loans or costs).

The decision to have a kid, or have more kids, is as much an emotional choice as it is a financial one. But kids completely change your financial picture and priorities in ways you can never predict before you have them. You should always be prepared.

4] Not Discussing Finances with Your Spouse –

Too many couples avoid talking about money until they absolutely have to. It’s not a fun or easy conversation to have, but discussing your financial plan, personal finances and spending patterns with your spouse is important. Couples often have this conversation too late in the relationship (or not at all). The conversation must happen, and the earlier the better.

Sharing information and control of your finances with each other builds a lot of trust and helps uncover any trouble spots. Finding a way to deal with spending or budgeting issues together may be a bit uncomfortable at first, but it’s essential to a harmonious and honest relationship. It’s important for your partner to be aware of your savings, income, debts, and investments, and how you plan to pay for these things while contributing to your shared household and goals.

5] Not being Thoughtful about Your Career –

30’s isn’t the time to get complacent in your career. Keep learning new skills, keep looking for growth opportunities, and if your current job offers neither of those things, find a new job yesterday. Switching jobs is a great opportunity to negotiate a significantly higher salary for significantly more responsibilities.

As you weigh job offers, look at the benefits companies offer as well. Benefits like health insurance, disability insurance, life insurance, and PF matches make up a large part of your overall compensation. Consider work-life balance and travelling distance, too.

5 money mistakes to avoid in your 30s

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