Your 30s are the ideal age to set up your financial future. Hopefully you’re wiser and make more money than in your 20s and it’s not too late yet to plan for tomorrow.
However, many people in their 30s still make stupid money mistakes that can cost them dearly later on. Business Insider has some advice on how to avoid the most common pitfalls.

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1. The Mistake: Not Taking Advantage of Your Benefits
You can make your salary truly work for you if you take full advantage of all the employee benefits available to you, from flexible-spending accounts for taking care of your health and your loved ones to commuter benefits.

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How to Avoid It:
Check with your employer’s HR department to see what options are available and how you can benefit from them.

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2. The Mistake: Not Increasing Your RRSP Contributions
The more money you can contribute to your Registered Retirement Savings Plan (RRSP) while you’re in your 30s, the more you’ll benefit later on, when you'll most need that money.

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How to Avoid It:
As your salary increases, try to increase your contributions to your RRSP. If you haven’t contributed the maximum amount last year, it may increase the amount you’re allowed to contribute this year.

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3. The Mistake: Only Contributing to an RRSP
If you only contribute to an RRSP, you’ll only have one source of income later in life (excluding CPP and OAS).

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How to Avoid It:
Start investing in other long-term savings plans as well. These include the Pooled Registered Pension Plan (PRPP), the Home Buyers’ Plan for investing in property and the Lifelong Learning Plan for when you need to retrain for a career change or just want to continue your education.

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4. The Mistake: Not Saving Money for Big Purchases
In your 30s, you may be starting a family or buying your own home. You’ll need money for big purchases later on, whether it’s a family car or a bigger house. Just raising a kid can cost you hundreds of thousands of dollars.

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How to Avoid It:
There are online tools you can use to work out how much you need to budget for those big expenses down the line. Use these to create savings goals and then start saving: the sooner, the better.

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5. The Mistake: Not Thinking About Disability Insurance
If something happens to you in the future and you find yourself unable to work, you may find that your disability pension won’t be able to cover all your expenses and keep you in the lifestyle you’re accustomed to.

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How to Avoid It:
The disability insurance you get through your employer will probably end when you leave the company. Speak to your insurance broker about other plans available to you and then start contributing.

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6. The Mistake: Not Having Life Insurance
In your 30s you’re at the age where you may have a life partner or kids who depend on you. Without life insurance, they won’t be taken care of if you die.

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How to Avoid It:
There are many different life insurance plans available to Canadians. Speak to your insurance broker and do some research to find a plan that is suitable to your needs and that you can afford.

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7. The Mistake: Trying to Live According to Others’ Standards
Trying to keep up with the Joneses can wreak havoc on your finances, since it may tempt you into living beyond your means.

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How to Avoid It:
Draw up a budget that not only shows you what you can afford right now but also includes your savings goals. Include some room for luxuries like a vacation or that pair of designer shoes but before you spend, think carefully about whether you really can afford it.

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8. The Mistake: Not Discussing Finances With Your Partner
One of the most important conversations you should have with your partner is about how you will manage your finances. Not having a clear idea of who is responsible for what can damage not only your financial future but your relationship too.

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How to Avoid It:
Don’t assume that your partner thinks about finances in the same way as you do. Talk about who is responsible for which bills. It’s a good idea to each keep a personal account and then have a joint account for household expenses.

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9. The Mistake: Spending Too Much on Your First Child
Many people tend to overspend on the best clothes and accessories when they have their first child and then can’t cover unexpected expenses like higher utility bills.

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How to Avoid It:
Of course you want to give your child just the best but do you really need that top-of-the-line stroller when a cheaper, more basic one will suffice? Don’t drain your savings on things your child doesn’t really need.

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10. The Mistake: Not Thinking of Your Children’s Post-Secondary Education
While tuition in Canada still tends to be more affordable than in, say, the United States, it’s becoming more expensive every year to put someone through university, especially if you include the cost of student accommodation, textbooks and transportation.

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How to Avoid It:
There is a limit to how much each beneficiary of the Registered Education Savings Plan (RESP) will receive, so look at other savings options for education too. Then, instead of indulging your young child’s every whim, put money aside for the day your child is old enough to start their higher education.

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11. The Mistake: Going Back to University for the Wrong Reasons
If you feel stuck in your job, it may sound tempting to go back to university but will that degree really help your career?

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How to Avoid It:
Before you enroll for an expensive university program, think about what your goals are for when you have that new degree or diploma. If you’re positive that it will boost your career, try to study part-time rather than taking time off work to go back to university.

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12. The Mistake: Not Taking Stock
As your circumstances change, so do your financial needs as well as what you can afford.

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How to Avoid It:
Take stock of your financial situation from time to time and see whether you still can afford your investments. Re-adjust your savings plans and your budget as necessary.
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