By the time when you will be in your 30s, you must have gathered more than a decade of adulthood. In spite of having so much experience, people still tend to make financial blunders which later on boomerang in their lives. Money problems are something which most of the young adults encounter when they’re learning how to navigate through their finances and embrace financial independence. But if you continue making these money mistakes even in your 30s, you will probably be digging your own grave. So, here are few mistakes to avoid during your 30s.
- Utilizing credit instead of cash
Your parents must have gifted you a credit card but that doesn’t mean that you can use them for every purchase. You should first know how you should use a card and then start using it so that you don’t fall into debt. The only trade-off with credit cards is just that you will tend to overspend and this is something that you should control when you’re in your 30s.
- Getting married without knowing your financial abilities
It’s tough to imagine that someone can get married without thinking of his finances. But as per recent reports, 4 out of 10 couples don’t even have an idea of how much money the spouse earns. So, in case you’re someone who has planned to tie the knot, make sure you’re aware of how much you earn and whether or not you can support your spouse.
- Making just minimum credit card payments
Yes, your bank manager will always tell you to make the minimum payments as per your convenience but don’t forget that they will be earning a huge amount over the time on interest rates. Hence it is always better to make more than just the minimum monthly payments even if that means living on a shoestring budget.
- Living a king-size life
Most individuals are carried away by emotions and they often dream of living a king-size life during their 30s. To obtain this kind of lifestyle, they often live beyond their means which means that their expenses are more than their income. This should be totally avoided and you should live within your means.
- Not saving enough for retirement
You must be wondering why you have to save for retirement during your 30s. But this is the ultimate mantra of saving for future. The sooner you start the better for you. Now that you’re in your 30s and you’re tough enough to take on work pressure, earn more and contribute to your workplace retirement fund.
- Not abiding by the terms of your budget
One of the biggest money mistakes made by people who are in their 30s is to avoid following a budget. If you don’t have a realistic budget in place, you won’t know how much you can afford for car payments, rent, groceries and some other expenses. In case you don’t follow a budget, your debt will most likely grow out of control.
- Not having an emergency fund
No, only having a savings fund is not enough for you as you also need an emergency fund to ward off sudden requirements of immediate cash. You also have to save money in an emergency fund from which you can withdraw cash during emergencies.
- Avoid the ‘money talk’ with your better half
If you’re married and if you don’t share your finances with your spouse, this is yet another money mistake that you’re committing. It is vital for both of you to take out some time and discuss about your finances with each other. This will even strengthen your relationship.
- Not evaluating your budget
The budget that you created when you were new to your job shouldn’t be the same even after you got a promotion. With the increase in salary, you should also evaluate and alter the terms of your budget so that you have more space to save.
- Trying to solve other issues with money
It’s true that money can buy us good things but if you solve all problems of life with money, this won’t be a good idea. Avoid indulging in retail therapy whenever you have a bad mood.
So, if you’re in your 30s and you’re sailing through a tough financial path, make sure you avoid all the above mentioned mistakes to stay debt-free.