Money Traps to Avoid in Your 30s as well as Investments you should be making
Your thirties are the most critical decade in your life. This is because you are still young enough to put in place investment strategies that can improve your financial standing in the future. There are many money traps you can fall into in your 30s as you are still young and learning. In these instances, remember the famous quote from Warren Buffet, ‘Never lose ’ and rule number 2, ’Never forget rule number 1’. Apply this advice to your financial life and you can avoid common money mistakes people make in their 30s. Lack of income diversification Individuals in their 30s place a major focus on their job without realizing that they could find themselves out of a job anytime. Diversifying your income and investment portfolio is a chance to broaden your interests and explore different areas. When it comes to making money, it is okay to have something on the side. Having multiple income streams means that you have more money to invest and save for future projects. Pour all your time and effort into establishing your income streams, as this is what differentiates the wealthy from the rich. The earlier you get started the better is key! Too much credit card debt Credit cards are a quick fix when you need money to get through your next paycheck. Credit cards are not necessarily a bad thing as they are a useful tool in helping you establish creditworthiness and points in making online purchases. Yet, they offer a money trap when you make financial mistakes such as impulse purchases on things you had not budgeted for prior and you really do not need. Credit card companies make their money off these mistakes as there are infamous for their fees, interest rates, and hidden rules in the fine print. Credit card companies play number tricks on consumers. It may seem as though you can afford the payments because they are small relative to your income. But if you pay attention closely over time is where they make their money off of you. The longer you take to pay back the more interest that they charge and in turn you end up paying $200 spread out in interest over time, instead of the $100 original price of whatever item as an example. In your 30s, work towards getting rid of existing debt and monitoring your credit. Your credit score is important […]