As a thirty-year-old you’re probably advancing on your career, making plans to buy and move to a new house, or maybe even getting married and having children. It’s during this time that many people make mistakes that can leave them in huge debt or even cause them to file for bankruptcy. Here are the top money mistakes people make in their 30’s:

Buying a House That You Can’t Pay For 

Most people’s dream during adulthood is to buy a new home. However, the problem is that they become impressed with the possibilities and end up buying a house they simply can’t afford. They also forget that they will have other expenses like furniture and insurance. A good rule of thumb is the 28/36 rule that states that 28% of your income should go to housing, and 36% for the total debt, which includes the house payment.

Buying a Car That You Can’t Afford

Having a car is usually a necessity for most 30 years-olds, because it allows them to be more independent and helps to save time. However, they often buy a vehicle while only considering the price and forgetting about other factors such as the finance terms, insurance, maintenance, and gas. It is crucial to put everything down on paper to see if it will meet your budget and needs.

Spending Too Much Money on Luxuries

Do you eat out almost every day? Or maybe you love to shop online? Do you always need to have the latest gadgets or smartphones? If your expenses usually exceed your income, you should start being more careful because that might make you lose control of your financial life. It’s also important to have money saved up if something unexpected happens, such as losing your job.

Not Investing (Enough) Money

It is estimated that nearly 55% of Americans aren’t investing their money, and only 40% of Americans are able to cover a $1,000 dollar emergency. The ideal is to start investing as soon as possible and being a 30-year-old, time is in your favor. For instance, if you invest $10k yearly, with a 7% average return rate, you’ll end up with $1.4 mi when you’re 65 years old.

Not Having a College Fund for Your Kids

You probably already know that college is expensive, and it’s getting even more expensive over the years. If you’re planning on having kids, or already have children, it’s important to start a college fund to guarantee a good future for them, so that they don’t end up in debt. Among the best investments for a college fund are 529 plans, high-yield saving accounts, Roth IRAs, CDs, and trusts.

Not Having a Budget

Having every dollar accounted for is a crucial thing if you want to live a healthy financial life. By doing so, you’ll ensure that you will have enough money available for the things that are essential and important to you. For instance, it will allow you to plan for your dream vacation without getting into debt. Having a budget doesn’t have to be complicated, since there are many apps that can help you do that, such as Mint.