8 Financial Mistakes to Avoid in Your 30’s
Financial Mistakes to Avoid in Your 30’s
Our 30’s doesn’t make us immune from making poor financial decisions that can severely impact and setback our lives. No age truly does. However, there are ways to prevent these financial problems from happeningーstarting with awareness so that we may steer clear of them. Here are 8 financial mistakes to avoid in your 30’s.
1. Maxing Out Your Credit Cards
Most of us find ways to justify applying for multiple cards in our 20’s, such as proving our financial responsibility, building our credit history, and improving our (then) non-existent credit score. I’d also bet a good many of those who use credit cards in their 20’s maxed them out at least once, made minimum payments, and potentially got themselves into credit card debt.
2. Getting into Long-Term Loans without a Plan
Another of the financial mistakes to avoid is getting into long-term loans without a plan. I understand that our 30’s is the perfect time to finally invest in a house or a car, especially as we start settling down. The question is, are you really prepared for that commitment?
3. Living Beyond Your Means
I get it. Life is too short to hold back on the things that make you happy. However, it is not so short that you should sacrifice your financial stability for the sake of YOLO. it’s important to build a budget and make sure you are allocating money to your necessary expenses, debt repayment, and saving/investing before spending money on leisure and fun.
4. Running With Expensive Friends
We all have that one group of friends who love to party, go shopping, or get easily caught up with get-rich-quick schemes. Whatever the method, they all have one thing in common: they like to spend money. While you may possess personality traits that make you more frugal by nature, it is easy to get tempted to go beyond your budget if you’re running with this type of crowd
5. Not Knowing Your Numbers
Another of the critical financial mistakes to avoid in your 30’s is not knowing your personal finance numbers. Do you know your credit score or if your net worth is positive or negative? If the answer to the above question is no, then you’re flying blind when it comes to your finances.
6. Failing to Prepare for Emergencies
An emergency fund is a savings account dedicated to actual emergencies such as job loss, hospitalization, car troubles, etc. Having an emergency fund will help buffer you and prevent you from easily falling into debt should these things. And believe me, there will be an unexpected expense at some point in your life. In fact, it’ll likely happen fairly regularly.
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