Money can feel like it slips through your fingers, especially when you’re caught up in the moment.
But here’s the thing—there’s a big difference between spending money and truly investing it in your future.
If you’re mindlessly swiping your card on things that don’t really matter, you’re not just losing cash—you’re losing opportunities to build the life you actually want.
It’s not about cutting out every little joy; it’s about making choices that set you up for something bigger.
In your 30s, it’s time to take control.
That starts with ditching the habits that drain your bank account and replacing them with moves that grow your wealth.
Let’s dive into eight spending habits you need to leave behind to build a better financial future.
1) Stop keeping up with the Joneses
In our society, there’s a lot of pressure to keep up appearances.
This often means buying the latest gadgets, driving the fanciest cars, and living in the most upscale neighborhoods. It’s all about trying to keep up with the Joneses.
The problem with this mentality is that it encourages spending on non-essentials instead of investing for the future. Essentially, you’re throwing your money away on things you don’t really need just to impress others.
Smart individuals understand that wealth isn’t built by trying to keep up with everyone else. Instead, it’s about making wise financial decisions and paving your own path.
So, if you want to build wealth in your 30s, it’s time to say goodbye to this detrimental spending habit.
And trust me, when you’re sitting on a healthy nest egg in your later years, you won’t regret not having the latest iPhone or a flashy car during your 30s.
2) Dining out every day
I know this one all too well.
When I was in my early 30s, I had a serious love affair with dining out. I didn’t just enjoy it, I thrived on it.
Every day, I’d look forward to lunch breaks at the newest trendy restaurant or happy hour at the local pub. The convenience of not having to cook, coupled with the social aspect of dining out, was incredibly appealing.
But then, I started doing the math. And the numbers were staggering.
Let’s say a typical meal out cost about $20. Multiplied by five days a week, that’s $100. Over a month, that’s $400. And over a year? A whopping $4,800 spent on dining out during weekdays alone.
I realized that if I simply cut back on this one habit, I could save thousands of dollars each year. Money that could be put towards investments and building wealth.
So if you’re like me and love dining out, consider cutting back.
It doesn’t mean you have to stop entirely – just be more mindful and choose to dine out on special occasions instead. Your bank account will thank you.
3) Impulse buying
Walk into any supermarket, and you’ll see strategically placed items near the checkout line – candy, magazines, small gadgets.
They’re all designed to catch your eye and entice you to make an unplanned purchase.
And it’s not just physical stores. Online retailers have also mastered the art of impulse buying. Think ‘people also bought’ suggestions or ‘limited time offers’.
The truth is, impulse buying can seriously derail your wealth-building journey. These small, unplanned purchases add up over time and can significantly impact your savings.
In fact, studies have shown that the average American spends nearly $5,400 a year on impulse buys. That’s money that could be going towards your investments or savings instead.
So next time you’re tempted to make an unplanned purchase, take a moment to ask yourself if you really need it, or if it’s just a want.
4) Ignoring your credit card balance
Credit cards can be a powerful tool when used responsibly.
They can help you build credit and take advantage of rewards programs. However, if misused, they can also lead to a cycle of debt that’s hard to escape from.
One common bad spending habit is ignoring your credit card balance, only paying the minimum due each month. This can lead to high interest charges and a growing balance that becomes increasingly difficult to pay off.
Being in debt not only affects your current financial situation, but it can also hinder your ability to build wealth for the future. After all, it’s hard to invest in your future when you’re still paying for your past.
5) Neglecting your savings
In the hustle and bustle of daily life, it’s so easy to overlook the importance of savings.
We get caught up in the now, forgetting that each day is a step towards our future.
But here’s the thing. Without savings, we leave ourselves exposed to financial hardships. An unexpected medical bill, a sudden job loss, a major car repair – any of these can throw us into financial turmoil.
Moreover, savings are not just for emergencies. They’re also about planning for a better future. A future where you’re financially secure and free to pursue your dreams.
Every dollar you save today is a step towards that freedom. It’s a vote for your future self, a promise that you’ll take care of yourself no matter what.
6) Not investing early enough
I’ll be honest, I didn’t start investing until late into my 30s.
I always thought it was something for the wealthy or the financially savvy and it seemed incredibly intimidating. Stocks, bonds, mutual funds – it felt like a whole different world.
But then I realized, the world of investing wasn’t as complex as I made it out to be and I was missing out on significant wealth-building opportunities.
You see, when you invest, you put your money to work for you. The returns from your investment can then be reinvested, creating a cycle of growing wealth – a concept known as compound interest.
Had I started investing in my early 30s or even late 20s, my financial situation would have been significantly better off today.
So, don’t make the same mistake I did. Start investing as early as possible. Educate yourself about different investment options and choose the ones that best fit your financial goals. The sooner you start, the more time your money has to grow.
7) Overlooking small expenses
It’s easy to keep track of big expenses like rent, car payments, or utility bills.
But often, it’s the small, frequent expenses that slip under the radar and add up over time.
A daily coffee from your favorite café, a monthly subscription to a service you barely use, weekly take-out meals – these might seem insignificant on their own, but over time, they can add up to a substantial sum.
The key is to be mindful of these small expenses. Start tracking your daily spending, no matter how small the expense. You might be surprised at how much you’re spending on non-essential items.
Every dollar saved is a dollar that can be invested towards building wealth.
8) Living without a budget
If there’s one thing to know about building wealth, it’s the importance of a budget.
A budget isn’t just a tool to track income and expenses. It’s a roadmap for your financial future. It helps you identify where your money is going, how much you’re saving, and where you can cut back.
Without a budget, it’s easy to overspend and lose track of your financial goals. It’s like driving without a destination in mind – you’ll end up lost and confused.
So, if you want to build wealth in your 30s, start by creating a realistic budget and stick to it. It might take some time and discipline, but the rewards are well worth the effort.
It’s about personal growth
The journey to build wealth in your 30s is much more than just a financial endeavor. It’s a journey of personal growth and self-discipline.
It’s about developing the ability to distinguish between wants and needs, making mindful decisions, and taking control of your financial future. Each bad spending habit you manage to say goodbye to is not just a step towards financial security, but also a testament to your evolving self-discipline and maturity.
Warren Buffet, one of the most successful investors of all time, once said, “Do not save what is left after spending, but spend what is left after saving.” This simple yet profound statement encapsulates the essence of wealth-building.
So as you reflect on these eight bad spending habits, remember that it’s never too late to make a change. Each day offers a new opportunity to make better financial decisions. And with each decision, you’re not just building wealth, but also shaping a wiser, more disciplined version of yourself.
