Hey, y’all! Let’s talk about something a little personal today: money. Specifically, the financial mistakes I made in my 30s and the lessons I’ve learned since. Trust me, this isn’t about beating myself up (or you!)—it’s about growth. I’m sharing my story so that maybe you can avoid some of the missteps I made and get on a better path now.
I’m in my 40s now, and one of the biggest lessons I’ve learned is to give myself grace. I can’t change the past, but I can make smarter moves today for a better tomorrow. So, let’s dive into the five biggest financial mistakes I made and what I did to fix them.
1. Prioritizing Saving Over Investing
Growing up, I always heard, “You need to save!” So, I tried—but saving was tough when there wasn’t much to go around. Most days felt like a “rainy day.”
The problem with focusing solely on saving is that your money just sits there. Sure, it’s good to have an emergency fund, but saving doesn’t help your money grow. Investing, on the other hand, puts your money to work.
Looking back, I wish I’d started investing earlier—even small amounts. It doesn’t have to be risky; there are plenty of safe ways to grow your money. It’s all about letting your money make money.
2. Not Being Aggressive About My 401(k)
In my 30s, retirement felt like a lifetime away, so I didn’t prioritize my 401(k). I thought, “I need this money now for bills and goals.” Sound familiar?
Here’s what I wish someone had told me: If your job offers a company match, it’s essentially free money. On top of that, 401(k) contributions are made with pre-tax dollars, so they don’t impact your paycheck as much as you’d think.
Now, I’m all about maxing out that match and letting compound interest do its thing. Trust me, your future self will thank you.
3. Thinking a Big Tax Refund Was a Flex
Back in the day, I thought getting a fat tax refund was a win. I’d file my taxes, get that refund, and make plans for it like it was a bonus. But here’s the truth: If you’re getting a big refund, you’re probably overpaying on your taxes throughout the year.
Think of it this way—when you overpay, you’re giving the government a tax-free loan with your money. Meanwhile, you could be using that money to invest, pay down debt, or build up savings. Adjusting your withholdings can give you access to those funds throughout the year, which is especially helpful for emergencies.
4. Not Diversifying My Income
For years, I thought the key to financial success was climbing the corporate ladder. While my 9-to-5 has been a blessing, I’ve learned that relying on one source of income can be risky.
Now, I’m all about multiple income streams—whether it’s side hustles, investments, or passion projects. Diversifying your income doesn’t just give you financial security; it also gives you options.
5. Believing Money Is a Scarcity
Growing up, I had a scarcity mindset about money. I thought it was hard to come by, which led to fear-based decisions and hesitation to take calculated risks.
Over time, I’ve realized that money is a tool—it’s meant to be earned, spent, and invested wisely. I’ve had to unlearn a lot of those old beliefs and remind myself that taking risks can lead to greater rewards.
Final Thoughts
If any of these mistakes hit close to home, don’t beat yourself up. You can’t change the past, but you can make small adjustments today that will pay off big in the future. Start where you are, and keep moving forward.
Remember, you’ve got this! And if you’re not already subscribed to my YouTube channel, what are you waiting for? Let’s save smart, hustle hard, and splurge wisely—together.