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Make the Right Financial Decisions to Avoid Making the Common Mistakes
  • admin
  • July 1, 2021

Make the Right Financial Decisions to Avoid Making the Common Mistakes

The 30s phase of our life is the most crucial and transformative time of our lives. The responsibility phase enters in, and the amateur phase fades away gradually.

We are more serious and focused on our life goals and relationships. This is the time when implementing healthy financial habits can take you a long way and form a strong foundation for your secure financial future.

Any unhealthy financial habit can lead to a negative impact on your future finances.

The criticality of the 30s phase

Looking from a financial perspective, the 30s phase is a critical and deciding phase of your life. It’s a transitional phase from a young person to a mature individual wanting to take control of the reigns of your life.

You need to learn and understand various financial strategies to stay on top of your expense and focus more on savings and investment.

There are some financial patterns that you can avoid during your 30s to make way for a strong financial future. It is good to learn from mistakes, but it is better not to make those mistakes and efficiently handle things.

Financial mistakes to avoid in your 30s

1. Wanting to compete

Unhealthy competition is one of the biggest mistakes by people in their 30s is to compete with their counterparts. Younger people get bias when it comes to financial status.

Healthy competition is good, but comparing it to your family members and friends can put you in a negative state of mind as you may want things before you can afford them.

To stay grounded, keep recalling things that your parents sacrificed for you to get you here today. You cannot match your lifestyle with your friend’s lifestyle as it will get you negative feelings and nothing else.

It is unrealistic to compare your financial stats with others. Not acknowledging these differences can lead to overspending and spending beyond your capacity.

2. No budgeting

Irrespective of your age, budgeting is an important financial step to follow. With budgeting, you can keep track of your finances and spending and curb them if it is more than your capacity.

The absence of budgeting may make it difficult for you to take important life decisions such as buying a new hose or a car, planning a vacation etc.

To materialize these important financial decisions, you should have a clear picture of your finances and where do you stand. A no-budget policy can cause a discrepancy between your spending and actual income.

You can use spreadsheets to keep a budget of your financial records.

3. Not keeping an emergency Fund

Not maintaining an emergency fund can lead to actual financial problems. An emergency can happen to anybody at any point in time. You have to be pre-prepared for it by keeping an emergency fund.

Ideally, in Ireland, your emergency fund should be able to cater to the next three months of your expense. Any emergency such as sudden unemployment or a major medical expense can occur.

Protect and prepare yourself by maintaining an emergency fund and putting some amount into it every month.  Just keep adding money to your emergency fund without taking it out.

Let your emergency fund grow enough to protect you from a difficult financial time.

In case of no emergency fund, you may be looking for quick loans in Ireland to save you from any financial crunch, again putting you in a debt cycle.

4. Overspending

You may be carried away and spend more than your income. You may purchase a big house or a luxury car that is out of your budget. It is always easy to overspend but difficult to spend within your budget and compromise your desires.

Instead of buying luxury cars and hoses, the more important expenses to make are insurance, repairs, utilities etc. Once you have started overspending, there is no U-turn to it, and you are trapped in a vicious debt cycle.

5. Following a conservative investment approach

The aim of your investment should be long term. When in your 30s, you have enough time to save and invest for your retirement. Do not be conservative in your investment approach and keep investing liberally in your portfolio as much as you can.

Gradually, inflation will reduce your purchasing power that is why you should avoid investing conservatively.

You can be conservative in your short term investments and more aggressive with long term investments.

6. No financial discussions

When in their 30s, many people do not feel the need to have any financial discussions with their parents or any expert. This can lead to a discrepancy in their financial management techniques.

Hence, they face a failure in handling their finances and keep p with their spending. It is important to take expert advice, if not from a professional, from a family member or friend who has more knowledge than you in handling the finances.

You should often ask questions about yourself to keep improving your learning and knowledge.

In the absence of financial discussions, you may borrow loans from various loan agencies in Ireland. But borrowing is not a good option while starting your financial journey.

Therefore, keep discussing your financial plans with people whom you trust to get the right advice.


Making any of the above mistakes can hamper your financial handling and create a financial constraint in your smooth life.

Repeating these mistakes can put your retirement into a black hole. Hence, it is advisable to avoid making these mistakes and learn more about finances.

Taking precautions and measures at the start of your financial journey can save you from future financial setbacks and keep your financial journey smooth.

Augment your knowledge, talk to your family and friends, and devise a good financial plan to manage your finances well.

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