8 Money Mistakes You Want To Avoid In Your 30s

When you're a twentysomething, long-term financial planning is often not a high priority. Having most of your money in the stock market can be quite reasonable for a young person when investing for retirement. Many people live out their lives earning a salary and paying bills, and failing to establish a source of passive income. However, if you fall into the minimum payment trap, it will cost you lots of interest later on. So whatever age you are now, figure out how to free your future self by coming up with a more powerful debt repayment plan.

The table above demonstrates the importance of not only enrolling and contributing to KiwiSaver as early as possible, but also how your decisions around the fund type can result in hundreds of thousands of dollars difference at retirement age. So the first thing to do, even before you start saving for smaller, short-term goals, is to build an emergency corpus.

The payoff: Risk doesn't guarantee higher average returns, but it makes them more likely over the life of a long-term investment. The problem is, most people don't know that there are 6 money traps that are holding most people back from achieving their financial goals.

When you cut back on spending, don't leave the savings in your pocket, wallet or checking account, where you'll just spend the money on something else. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.

Lawton Retirement Plan Consultants, LLC offers no tax, legal or accounting advice and any advice contained herein is not specific to any individual, money entity or retirement plan, but rather general in nature and, therefore, should not be relied upon for specific investment situations.

Your retirement planning should start taking greater priority. The lure of tax saving and the urgency to get tax planning components in place at the end of financial year can push one to make unwise choices,” says Antony Jacob, CEO, Apollo Munich Health Insurance.