Money management is a hard skill to learn, but you have to learn. While you’re in your 20s it may still be acceptable to rely on parents or other family as a safety net if circumstances allow. However, once you’ve celebrated that dreaded 30th birthday, you really need to start handling things yourself.
We all make mistakes, but once you’ve reached 30, and you no longer have a safety net in your parents, you have to start fixing those mistakes. Here are some of the most common mistakes that people make in their 20s and early 30s.
Top 5 Money Mistakes Young People Make
- Relying on Parents – As mentioned above, you have to stop relying on your parents. By the time you reach 30, the best way to learn anything you haven’t already is to dive in without floaties. It doesn’t mean you can’t ask for help if you’re drowning, but don’t call Mom every time you get wet.
- Not Setting a Budget – Seriously, create a budget. Surely you’ve heard how useful they are. Setting up a budget is the best way to track your money and keep yourself accountable. Without one, you could quickly find yourself in trouble.
- Not Getting Insurance – Insurance can be expensive, but it’s almost a necessity these days. Medical expenses are ridiculous, and put thousands of families underwater ever year. Find a way to make it work.
- Using Credit Too Often – Using a credit card is not always forbidden. If you use it correctly, it can help you build the credit score necessary to buy a house or a car. However, if you use it too often, or are irresponsible with your purchases, you can get into hot water really quick.
- Not Setting Up a Retirement Plan – Even at 30 you may feel too young to start planning for retirement, but truthfully, it’s almost too late. The earlier you start, the better. Every year that you don’t put something back for retirement is another year you’re going to have to spend working.
There is nothing wrong with asking for help. In fact, many times it’s absolutely better that you do ask. However, once you’ve reached 30, you should start handling things yourself. Stop asking your parents for help, and look into hiring professionals for help when you need it.
Washington D.C. bankruptcy attorney Kevin D. Judd has years of experience helping people achieve their goals of becoming financially free from overwhelming debt. Help is out there for those who ask.