20 Money Traps to Avoid in Your 30s


20 money traps to avoid in your 30s

In this section, the National Debt Review Center explains, 20 Money Traps To Avoid In Your 30s.

In mid-adulthood, it’s really a big shift in priorities. Once you have to stop counting the days to your next paycheck and start making some extra cash, it’s time to really start planning your financial future.

It is really easy to avoid this because you have never had to do it in your life because what was it about? Right, you eat, you know, hand in mouth, but not so much hand in mouth now.

There are so many things getting in the way and you may not even notice it. So let’s talk about some of them.

Now that you’ve got a better income, right? Don’t let social obligations dissuade you. There are six money traps that you should absolutely avoid.

Buy a car that is outside of your price range.

“The first time I made money when I started investing, I had a good year. I bring in a lot of money. I think I made eighty-three thousand dollars. I went out straight away and bought a JAG. I mean, come on, I was in Volkswagen. Carlee I bought a JAG man. I am sending the car. It felt so good. I felt so cool

I drive around with it, everyone obviously admires me for my fancy car, and that took about two weeks. And then I found out that nobody really cares. So don’t buy a fancy car to impress people you don’t like or who you don’t know just because you can. People don’t care. You need transportation, but the price varies so much that you need to spend wisely. So new cars can be one of the biggest money pits a person can get stuck in ”- Phil Town

Don’t buy a car that isn’t on your price frenzy if you want to build financial freedom. It’ll just be something that gets in your way. A car fresh from the manufacturer will lose about thirty percent of the value of that car in the first year and a half to the end of three years.

Buy a house that is too expensive for you.

Owning a home that is growing in value is a really good practical expense. But there’s a point where returns go down when you put every penny you have into a bond on a home you can’t really afford. Then you have no more money for emergencies.

You have run out of money to invest. You ran out of money, period. And the burden on you, your marriage, anything can be brutal. A monthly payment that you can barely manage can weigh heavily on your budget for an average of twenty to thirty years.

Instead, if you can get a home in a good neighborhood for a moderate price that you can handle, keeping an eye on the local market and buying it might be a better idea.

Going out too much.

You would be shocked at the effect the low cost can have.

To have an expensive, significant other.

Even when you are in control of your own money, other people may have a habit of getting in the way of your financial plans in great and powerful ways. Failure to communicate about how you manage your spending habits with your significant other is a major cause of relationship problems for married couples and committed couples.

Avoid credit card debt, debt consolidation, or debt in general.

Your budget is being eaten up with interest payments. It’s a dangerous game. You better not play it. There is an easy way to stop the cycle. Debt counseling and you can see if you qualify for free HERE

Don’t invest.

The earlier you start, the more you can accumulate. So when you start investing and planning financial freedom, it’s all about the balance between paying your expenses, eliminating ongoing debts, and constantly reserving funds to help you achieve your goal of living the life you want .

Always pay yourself first.

Ten percent of your income first and live off the rest of it.

No financial goals.

Don’t educate yourself or be financially savvy.

Running with dear friends.

If you stay in company with free money-giving friends, you will likely be tempted to get caught up in the game of trying to keep up. But this is one of those games, if you win you really lose – at least from a financial perspective.

Work on aligning your social contacts with more affordable activities. It can help them too. But when they refuse, it may be time to make more thrifty friends.

You don’t have to create or create a college funding plan for your children.

IDs grow up really fast. And as the time for college approaches, it will get faster. College is expensive and is getting more and more expensive. Now, the more you can salt to cover the cost, the less you and your children will have to rely on crippling student loan debt.

Make your children about your financial security.

When you have children, their needs are very real and immediate. As a parent, the desire to care for your children and give them the best possible start is strong, natural, and healthy.

Parents can quickly fall into the trap of giving their child every toy, lesson, or benefit – or they fail.

It is all too easy to put your child’s needs before other important needs. Regardless of the form, spending on children needs to be balanced with your future financial security. Because every child really needs financially secure parents who can support them and show them how to set priorities for healthy money.

Let your professional life stagnate.

Equating success with luxury

As you establish yourself in your career, it is easy to believe that your lifestyle should match your financial success. This is known as lifestyle inflation, which makes you want to spend more without adding to your wealth or improving financial security.

You feel broke and you may never get anywhere even if you are earning an income that only a broke 20 year old student can dream of.

How we use our money shouldn’t match our neighbor’s spending, our age, or even our salary. Our financial decisions should reflect our values ​​and focus on investing in our future and priorities.

Getting married without talking about finances.

Spending too much money on the wedding.

Many couples postpone marriage until their thirties when they are financially more secure and have made careers. As a result, couples often choose to pay the cost of the wedding themselves rather than burdening their parents with the cost.

The average cost of a wedding in South Africa is between R 70,000 (on the bottom) and around R 50,000 (on the top) and can rise quite quickly depending on the number of guests.

Starting life together with debt can create enormous tension in a relationship, especially if the couple’s views on the wedding do not initially match.

Many couples report feeling pressured by their parents and friends to have a more elaborate wedding than they would normally have decided, which they will literally pay the price for in the years to come. Instead of borrowing money to pay for the wedding, it would be wiser to save up for a wedding at a reasonable price, even if that means postponing the wedding for a year or two.

Coupled with home, vehicle, and retail debt, excessive wedding debt can create immeasurable stress and anxiety for a newly married couple. – Moneyweb

Making debt a lifestyle.

Don’t protect your income.

At a young age and in building wealth, it is important to protect your greatest asset – income.

Your income will allow you to service your debts, maintain your standard of living, and fund your retirement years. If for some reason you become disabled or ill and cannot earn an income, it is wise to make sure you have an income protection benefit that essentially pays your current income level and increases with inflation until you turn 65.

Failure to set up an emergency fund

Provided you get richer in the future.

Don’t fall into the trap of overspending in your 30s based on the assumption that in your 40s you will have a ton of income to pay off your debts. Save, invest, and do your future self a favor by living within your means and not digging a bottomless pit in debt. Your self will thank you for it.

As always, if you need more information please contact our team on 0878 221 249 or send an email to info@ndrc.org.za

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