The key money mistakes women need to avoid in their 30s, 40s and 50s

Not knowing what to do or what not to do are the most common money errors women in their 30, 40s and 50s make, according to financial adviser Helen Baker. 

She has made it her life's work to help women make better decisions around money and investments - including getting a masters degree in financial planning and writing books on the subject. 

'The most common money mistakes women make arise from a lack of awareness of what to do, or not do,' she told Daily Mail Australia. 

'These mistakes, and their ramifications, can vary dramatically depending on your stage of life ... not understanding how your money really works can be costly.

For women in their 30s, 40s or 50s, there are important money mistakes to avoid that can be make or break in years to come, the Brisbane based adviser said.

Financial adviser and author Helen Baker has identified the mistakes women need to avoid in their 30s, 40s and 50s. A woman in her 30s working out finances is pictured

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As part of her work and studies, she has identified the mistakes women need to avoid in what she calls the 'flirty 30s', 'sporty 40s' and 'nifty 50s'. 

Baker, who is the founder of the women's finance company On Your Own Two Feet, said a woman's 30s are 'the time to flirt with your big hopes and dreams, and implement plans to make them a reality'.

Flirty 30s

The demands of buying a first home, having children and the career interruption that brings, can get in the way on good financial planning, she said.

Common mistakes made by women in their 30s include:

• A lack of safeguards.

• Failing to invest – losing out on compound earnings over your working life.

• Accruing bad debts and a poor credit score.

Instead, try:

• Protecting yourself: establish an emergency fund (easily accessible cash in your own account); take out advantageous insurances while you're young and healthy.

• Investing now: maximise returns over your working life, with time to recover any unexpected losses. That includes superannuation and other investments.

• Investing in yourself: gain more skills and qualifications to boost your income-earning potential.

• Controlling your debts: Spend less than you earn; borrow less than you can afford; promptly pay down bad debts (high-interest debts that don't generate income, like credit cards).

Sporty 40s

A woman needs to be nimble on her feet in her 40s, Baker said, 'to run around juggling family needs, work commitments, aging parents and home maintenance,' she said.

'These conflicting demands can easily push your own needs to the backburner.'

Common mistakes in your 40s include:

• Abandoning budgets, wealth building strategies and expense reviews.

• Setting bad money habits, that your kids also learn from you.

• Ignoring your own health and wellbeing.

Instead, try:

• Making regular sit-downs as a couple/family to discuss money. What's coming in? What's going out? What expenses are no longer needed (eg, unused subscriptions/memberships)? How can you get more bang for you buck (eg, reviewing utilities, rightsizing insurances, refinancing loans)?

• Revisiting financial and legal matters regularly. Ensure your will is up-to-date; your super is performing well; insurances are fit for purpose with adequate coverage; company and trust structures are properly set up; you're claiming all relevant tax deductions and benefits.

• Staying healthy – physically and mentally. This keeps your healthcare bills down, protects your health longer term and safeguards your earning power (fewer lost work days; better decision-making at work and about money).

Helen Baker (pictured) is the founder of the women's finance company On Your Own Two Feet

Nifty 50s

The nifty thing about your 50s is that your kids (if you have any) are generally older, you have some seniority at work and your earning potential is typically at its highest, Baker said. 

But she advises women in their 50s not to rest on their laurels.

Common money mistakes made by women in their 50s include:

• Leaving financial matters up to your partner. This is why women in their 50s are the new face of homelessness – divorce or the sudden death of their partner without back-up plans can quite literally left them out in the cold.

• Failing to leverage superannuation benefits.

• Not having a transition to retirement plan.

Instead, try:

• Making financial decisions together. Know your individual and joint assets and liabilities; have contingency plans for death/divorce/illness/redundancy; get your estate planning in order.

• Embracing super benefits. Downsizing from the family home, spousal and catch-up contributions and low-income offsets can all turbocharge your super, and in some cases, cut your tax bill too.

• Making a retirement plan. Will you both retire together? When? What will your living costs be? Will you qualify for a pension/part-pension? How will you spend your days?

A woman is pictured looking at bills and using a calculator to work out the payments

Baker said that regardless of what age a woman is, a common mistake to avoid is seeking the wrong financial advice, or getting none at all.

'Friends and family mean well but, unless they are qualified (they) are offering opinions based on their own situation, not yours,' she said. 

'Finfluencers (financial influencers) and self-styled "experts" typically peddle ideas that benefit themselves, not you. And DIY financing is risky because you simply don't know what you don't know.'

She advises people to instead seek qualified, professional advice that is tailored to their unique situation, saying it 'can be the best investment you'll ever make'.

• Helen Baker's new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women is out now. Proceeds from book sales are donated to charities supporting disadvantaged women and children. 

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