Your 30s are an important period in your life when it comes to financial planning. Usually most of us have figured out a definite career pathway and have settled on a regular income basis, and are also settled in the personal life. As compared to the 20s, our 30s possess more responsibilities. So it’s the best time for you to take care of and to think about financial planning in order to secure your and your family’s future.

So when it comes to financial planning and attaining certain financial goals it is important to avoid a few mistakes that can set you back in achieving your goals. 

Let’s find out the 4 common financial aspects to keep in mind that most people in their 30s make a mistake with.

Have Clear Financial Goals:

Many people make the mistake of not having a clear personal financial management goal till they cross their late 30s, but by the time you are 30 you should already start making savings and also have started making investments in the right places to attain a certain financial goal. But there is no reason to worry if you have not started on your goals, there is still time for you start making your short term financial goals and long term financial goals.

Not having a financial plan can be one of the most significant mistake one can make. It will help you to make a plan about when and how you will buy your car, down payment for the house, having a retirement savings in place etc.

Buy insurance for you and your family:

As your obligations grow, you’ll need to make a number of plans to safeguard your family’s financial interests. While an emergency fund can cover important emergency costs, you must also avoid the costly error of neglecting to include life and health insurance in your overall financial plan. To make sure that your family’s financial security is safeguarded in the event of a medical emergency or your untimely passing, you must have insurance.

Create an emergency fund:

Your liabilities, such as mortgage payments, loan EMIs, child schooling costs, etc., are significantly more in your 30s than they were in your 20s. This makes it crucial that you establish an emergency fund in order to prevent the costly mistake of not having a financial strategy in place for unforeseen events like job loss, unforeseen costs for home repairs, etc.

By setting up an emergency fund, you can prevent having to take out large amounts of debt or having your savings completely depleted to pay for unforeseen needs. Your emergency fund should be sizable enough to cover expenses for nine to twelve months in order to be on the safe side. This may appear to be a sizable sum to set aside. So you can begin with a lower sum—for example, 1 years’ worth of expenses—and gradually increase it. In order to prevent financial stress, you should make sure that the size of your emergency fund corresponds to your income and spending.

Start planning for your retirement:

You might not consider it important to start planning for retirement if you just turned 30. After all, you still have three decades to save for retirement if you intend to stop working at age 60. Furthermore, you have more financial obligations today than you did in your 20s, so it may seem sensible to put short-term financial goals first by deferring your retirement investing plans for a few years.

However, delaying your efforts to save for retirement even by five years can prove to be a costly oversight that will adversely affect your capacity to build up enough savings for your golden years.