After finding your footing in your 20s, start building your ideal future in your 30s. With some financial planning in this decade, you can conserve funds and streamline expenses. Here are a few negative habits to ditch at this stage in life.

Financial Moves 30-Somethings Should Avoid

1. Depending on Credit Cards

When you’re fresh out of school, trying to manage new expenses, and dealing with student loans, credit cards can be helpful. However, depending on them can be dangerous.

Cards carry high interest rates, so you might accumulate debt. If you’re in this situation, avoid using your cards until you pay them down. Generally, debts shouldn’t surpass 15% of your take-home pay.

2. Not Saving for Retirement

It’s best to start saving for your senior years as early as possible. By your 30s, financial planning for retirement should become a priority.

If you don’t have one already, open an Individual Retirement Account (IRA) account, and look for an employer who will match your contributions. If possible, try to contribute at least 15% of your income to retirement accounts in your 30s. In the decades to come, this money will accrue interest and grow exponentially if you let it sit.

3. Buying a House Prematurely

With each decade comes a new milestone—and the societal pressure behind it. However, just because your friends and cousins are purchasing real estate doesn’t mean you should.

Before buying a home, ensure that all monthly expenses—including mortgage payments, insurance, taxes, and homeowners association fees—amount to less than 28% of your income. If you have other debts to pay, the total should make up no more than 36% of your income. If your family’s combined income doesn’t meet those requirements, it might be best to rent the type of property you want and hold off on a purchase.

If you’re looking for guidance on financial planning, reach out to Stephan And Associates in Xenia, OH, founded by Brian Stephan, CEO and General Manager. This wealth management team will take all of your living expenses and savings goals into account to create strategies for future success. Call (937) 374-2002 to schedule a free initial consultation, or visit their website to learn more about their offerings.

The content of this article is for informational purposes only and should not be considered a recommendation of any particular security, strategy or investment product or investing advice of any kind. Information contained herein has been obtained from sources deemed reliable but Spire Wealth Management, LLC and its affiliates do not guarantee its accuracy. The views and opinions expressed in this article are those of the authors and are subject to change. Index information is provided for illustrative purposes only. Indexes are unmanaged, do not reflect deduction of fees and expenses and are not available for direct investment. Investing involves risk, including the possible loss of principal.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company, Spire Securities, LLC., a Registered Broker/Dealer and member FINRA/SIPC