In our 20’s, we are faced with countless money problems while we learn how to navigate through our newly found financial independence. However, if these problems are propelled into our 30’s—we could find ourselves in a pool of a jeopardized financial future.
As by nature, the older we get the more financial responsibilities are place on our shoulders; and if we don’t manage them efficiently, we are bound to face immense financial difficulties. These worries are not only limited to money matters but also affects negatively on a mental and personal level.
So, keep reading to find out how you can avoid money mistakes and worries when in 30’s!
Credit over Cash—A Big No!
In your 30’s the idea of having a credit card can sound pretty exciting as it comes with multiple benefits, such as rewards, discounts, convenience, and of course the security of knowing that credit cards are easily replaced, whereas, cash isn’t. While it may bring numerous benefits, it can also cause a financial downfall when used needlessly and irresponsibly.
Studies have revealed that, people who spend through their credit cards are bound to spend more, when compared to those making cash payments. With a credit card, it is easy for people to spend and afford products/services that they could otherwise not afford through cash. However, little do they realize about the debts and interest rates being accumulated. And, if you fail to make timely payments, your credit score takes a hit.
Therefore, a smart way to save from the distress is to shop with cash. Of course you can keep your credit card but to only spend on goods that you can afford to pay off later.
Neglecting life insurance/retirement savings
Matters such as life insurance and retirement savings are easy to neglect, especially when you are in your 30’s. This is because; during this time you are bound to face complex financial issues, such as: spending on marriage, babies, house mortgage, etc.
However, during this process, people often tend to overlook the unpredictable. Life insurance can help your loved ones live in the comfort as provided by you, given that you are faced with sudden death. As a result, your demise will not have a dramatic change in their lifestyle. Therefore, consider having an insurance policy as well as a retirement plan to save immense amount of money by the time you roll into your 60’s.
Not going budget friendly
Going over the budget is one of the biggest mistakes people tend to make around the world. If you want to be smart with your finances, start with mapping out a budget plan on an annual basis. Without a budget, you are bound to spend beyond your pockets.
Budget helps you to stick to reality. Such as, realistically afford a house mortgage, car and other expenses. Often times, people avoid budgeting as they feel it limits and deprives them of their wants. But, as a matter of fact, it only shows you in black and white how much you can afford to spend in relation to your earnings.
Your 30’s are the time of life where you should be straight and serious about our finances. Hence, if you want to achieve a debt free financial security in your 30’s combine the aforementioned ways to keep financial worries at bay.