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It’s never too late to change how you manage your money.
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Life is a constant learning process. I’ve been writing about financial topics for several years, but I continue learning every day. I’ve made my fair share of money mistakes over the years, but I want to evolve. Are you hoping to fix some of your financial mistakes in the year ahead? If so, you’re not alone. Here are some money mistakes I plan to fix as I navigate life in my 30s.
1. Increase my retirement contributions
I opened my first retirement account when I was 22. Even in my early twenties, I was obsessed with financially setting myself up for success. But I lacked the extra funds to do a lot back then. Unfortunately, for many reasons, I didn’t put much money toward retirement during my twenties.
But that’s no longer the case in my thirties. Luckily, my income situation is different now, so I’ve been able to increase my retirement contributions significantly over the last few years. Now at age 35 and beyond, I plan to contribute 15% of my pre-tax income to retirement. I don’t want to be unprepared when it comes time to retire because I know life will fly by.
2. Get better at stashing excess cash in my savings account
There’s something about maintaining a high checking account balance that boosts my confidence and makes me feel financially secure. I have a feeling I’m not the only one with this habit. In fact, after talking with some of my friends and colleagues — I know I’m not alone.
However, there are times when I keep too much extra money sitting in my checking account. It looks good sitting there, but it’s not doing much for me. The best practice is to move excess cash into an interest-earning savings account. I’m getting better at moving over spare cash, so I don’t miss out on free money. I love my high-yield savings account.
3. Not being afraid to invest in me
If you’ve had a frugal mindset for years, breaking that habit can be a challenge, even when you’re doing well financially. It’s been a struggle to get comfortable spending money on myself. For many years, it felt like a waste of money. But I’m getting better at spending money on myself.
Investing in myself is a win for my current self and future me. Whether I’m improving my physical or emotional health, boosting my professional skills, or making my living space a better place — it’s a smart money move. Try to remember that it’s okay to spend money on yourself. If that’s difficult to do, you might start small and work your way up from there.
4. Boosting my emergency fund
I’ve always been good at saving — even if I only had a bit of extra cash to set aside. But having a plentiful emergency fund is a newer phenomenon for me. As I navigate my financial journey, I am working to boost my emergency fund. It’s never a bad idea to be prepared for unexpected future expenses and new life situations, and I’d rather be overly prepared rather than not at all.
5. Get better at tracking my spending
While I don’t spend excessively, I know I can make improvements. I’m getting into the habit of analyzing my spending every few months and then making adjustments if necessary. When life gets busy, it’s easy to go through the motions and forget to check in on your spending.
But by taking only a few moments to do a spending assessment, you can stop poor spending habits before they get out of control. I make sure to do this every couple of months. I consider it a financial win if I can free up some extra cash for my savings and retirement goals.
It’s never too late to make financial changes
If you’re feeling discouraged about your finances, please know that it’s not too late to make changes. We’re all doing the best we can with the knowledge we have. Review our personal finance resources to learn more and get inspired to make money moves that serve you well.
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