Here we are going to discuss something about money traps, which we should avoid in our 30s.
Get into middle of adulthood, it is really a major shift in priorities and it is time to start planning our financial future.
You may have a better income, but, do not let your social obligations strip it away. There are a few money traps that you should avoid it all costs, here are those:
1. Buying a car out of your price range
If tt is all about bragging to your nears that you make a good amount of money, but, in reality nobody cares what car you own even, if you drive around especially to showcase it, even if they notice it, maximum time their admiration lasts only about 2 weeks, not more than that. But, the money if you have bought out of loan, it will take you years to get it settled with all the interest gets accumulated.
So, the bottom line is don’t buy fancy car just to impress the people whom you don’t know or don’t like. Buy what you can afford to and stay away from loan.
A car fresh from the manufacturer loses its 30% of its value in the very 1st year, half of it by the end of 3 years, and it is still a good car. So, buying a 3 year old car, you just have to spend half the price of it.
2. Buy a home out of your price range, that’s too expensive for you
Owning a house is not an investment, at the age of 30 if you want to own a house that too out of your budget, you need to fund it from somewhere, either from bank loan or by any other means. Funding does not come at free of cost most of the times, it always got interest and gets accumulated over a period, then, it becomes a burden and take away a chunk of our monthly income.
In this case, you have no money left for emergencies, investing. Look for a house in the outskirts; after a few years, it could be a busy area with all the facilities around and now, it could be cheaper.
3. Spending too much going out
Everybody needs some entertainment to keep them relaxed, but you really need to budget them. Do not need to have an extravagant lifestyle to identify with others.
4. Having an expensive significant other
Always people tend to advice others to go for that, this, and so on. All you need to do is keep things under your control and keep their advice under scrutiny whether to accept and implement or not? If it is going to make a hole in your pocket, then, just shrug off and move ahead.
If you are going to get marry or committed or dating someone expecting long term relationship, make this clear on spending habit, and don’t showcase what/how you want to be in the future.
5. Credit Card
Credit card debt is the worst debt since interest rate is too high. Better, avoid spending via credit cards unless you can religiously make on time payment and keep things under control.
6. Don’t fall in the online trading platform
Many people are not skillful at it, expecting some serendipity to help them; they get it in and slowly get absorbed, unable to come out of it. It eats their time, energy and money. Stay away from this to save your peace.
7. Not investing
It is a big mistake. You need to have investment plan which yields profit over a period. Otherwise, the money you saved but did not grow as years progressed; you still find it difficult or far away from achieving financial freedom.