As you get into your 30s, you’ll realize that they’re a crucial decade of your life. You may be past the point where you don’t know what to do but you can still find ways to be proactive with your money.
Here are money mistakes you should learn to avoid in your 30s:
1. NOT HAVING AN EMERGENCY FUND
It is important to have an emergency fund to avoid debt in later life. Ideally, this account should cover three to six months of your essential expenses so you can cover any unexpected events such as losing your job or costly medical issues. It is highly suggested to put your emergency fund in a saving account so you can access it immediately and do not need to worry about a downturn in the markets affecting how much money you have.
2. BEING UNDERINSURED
Most people don’t like to buy insurance because it means paying for something that they hope to never happen/use. However, the consequences of being uninsured are so large that they can wipe you out financially. One accident on the job or medical emergency can change your financial structure just in the blink of an eye.
The types of insurance that are highly recommended are:
– Term life insurance
– Health insurance
– Disability insurance
– Renter’s insurance
3. MAKING MINIMUM PAYMENTS ON HIGH-INTEREST DEBT
If you have high-interest personal loans or credit card debt, it is suggested to pay them down as aggressively as possible before you focus on a low-interest loan or a mortgage. The faster you can pay those high-interest loans off, the more money you can put towards other financial goals that become increasingly important as you progress in your 30s.
4. BUYING TOO MUCH PROPERTY/HOUSE
Home/property ownership is gratifying and can lead to wealth creation. However, it is not guaranteed. You have to make sure that your housing budget includes room for things like unexpected repairs, maintenance, and potential changes to your future income if you start a family.
5. NOT AGGRESSIVELY SAVING FOR RETIREMENT
Retirement can seem far away when you are in your 30s. But every dollar you save for retirement now will be 10 to 20 extra years to accumulate compound interest than money saved in your 40s and 50s. You can set up an IRA (Individual Retirement Account) that will automatically move money from your checking account on payday.
6. SAVING FOR YOUR KIDS BEFORE SAVING FOR YOURSELF
When you become a parent, it is natural to want to put your kids’ needs in front of your own. However, saving for your children’s college education before you save for your own retirement is a terrible mistake. There are many ways to pay for college such as scholarships or applying to less expensive institutions but there is no way to pay for retirement other than saving.
When people enter their thirties, there are typically 20-30 common money mistakes they’re making. However, we’ve narrowed it down to the 6 most important money mistakes that need to be fixed if you want significant financial improvement.
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Organizing your finances will make you better at making spending choices. Organizing your purchases will help you deal with personal debt. Generating wealth is not always about having the most assets or money to spend. Sometimes analyzing your assets and planning for their future use pays off in an unexpected way. A lack of organization can harm your finances as much as being short on cash.
How you are potentially losing money because of disorganization.
You may have purchased duplicate items because you can’t find what you need when your need it OR you don’t even know you have it.
23% of adults say they pay late fees because they can’t find the bills. How many late fees have you paid in the last year?
Just looking around your house, I bet you can see things you no longer use, or in reality, never used. How many hundreds of dollars are represented in your stuff?
Do you have more than one streaming service subscription? Now, how often do you really use them?
This is an easy way to get food on the table, but it is definitely not the healthiest or the best financial decision.
What you can do starting TODAY
Go on a treasure hunt
Put like items together and see what duplicates are lurking. Visit your storage unit and make a plan to eliminate your dependence on this space.
Become more mindful of your future purchases.
You could even create a 30-day list and see if you still want the item(s) after 30 days. This reduces the spontaneous buying that is so easy to get caught up in.
Create a meal plan
One week I spent $30 on groceries because I already had most of the items at home. If I didn’t have a list or a meal plan, I would have certainly spent more than that!
Take really good care of your stuff
This includes your car, lawnmower, computer, sports equipment, children’s toys, etc. For example, it costs less to replace a spark plug and air filter every year than to buy a lawnmower every 3 years.
If your own peace of mind wasn’t enough to motivate you, maybe knowing there is a direct financial benefit to getting organized will do the trick!
Other financial benefits of organizing your life:
Make money on the items you are willing to sell. Have more time to spend on money-generating activities such as starting your dream business or pursuing a higher-paying job.
Have more time and energy to devote to your own self-care for better emotional and physical health.
More time and energy to explore free and active hobbies such as walking, yoga, library trips, journaling, biking, etc.
You may feel like money is a topic that has nothing to do with your life. However, it’s important to not think this way as personal finance has a huge impact on every aspect of your life. Regardless of your financial situation, whether you’re looking to make more money or trying to save money, it’s worth staying organized. It is crucial that you make financial organization a priority in your life. This will allow you to get a better understanding of the different aspects of your finances, create more wealth, and keep it over time.
You’re building your career and figuring out your future; amidst these processes, it’s likely that you’re encountering some periods where opportunities to make a little extra money would come in handy. Have you been saving up to buy something expensive, like a car or a house? Or maybe you simply want to have an emergency fund in place. Whatever your goals, there are lots of ways to save more on your budget by looking for ways you can make some extra money. Here are seven ways to increase your income.
With a side business, you have another source of income. While it won’t make up for the loss of a lucrative day job, it can go a long way toward helping you as you look for another job. Plus, you can use the extra income to build up your emergency fund for just these situations.
Voiceover work is a way to make extra money by having your voice recorded.
How to Make Money at Home Using Your Voice
Voice Overs for Videos. One of the most popular at-home jobs using your voice is to voice over for videos.
Voice Overs for Commercials. Voicing commercials is another way you can make money at home using your voice.
Sell Radio Ads.
Create Audio Books.
Make money from your hobbies
If you do something you love, it can be turned into a new stream of income.
Here are 12 Profitable Hobbies that make money
Illustration and design
Share your Ride
You can apply for Uber or other rideshare companies if you have a reliable vehicle and a good driving record.
Sell clothes online
The way to bring in extra money is by listing your old clothing on an online platform like Poshmark.
Many companies are hiring people to answer surveys, so you can increase your income by doing them.
Suppose you have any unique skills. You can share your skills online like Upwork, Fiverr, and others to increase your income.
Real estateis one of the most simplistic ways to earn money. With a relatively small monetary investment and some sweat equity, you can turn a substantial profit. The future outlook on real estate investing is positive and constantly evolving. For new investors, one of the most difficult hurdles to overcome is learning the ropes of the real estate business. Real estate transactions are complicated, and if you are not educated on the ins and outs of the business, you potentially could lose large amounts of money, fast. Before you get started in real estate investing, spend some time thinking about the best approach for your financial situation, personality, and risk tolerance. One in four residential homes is bought as investment property. Many real estate investors are regular people just like you who make impressive side incomes. Some people even earn enough to make real estate investing their primary income.
This website will teach strategies you can use when investing in real consider – like real estate law, tax implications, and non-traditional real estate investment options. While being a real estate investor is, at times, stressful, it also can be mentally and financially rewarding.
planned investment, can be profitable and exciting, but it can be overwhelming
too. Follow these steps when starting out in real estate investing.
1. Educate yourself. This doesn’t mean that you need to go back to school, but you do need to take responsibility for what you need to know, and learn it. Study the market you’re interested in entering. Use the internet, local land records, and area real estate agents to find the sales prices of comparable properties. Learn about the transaction process, each person’s role and responsibility, the legal requirements, and insurance. Each component carries fees that vary, and by researching prices you can avoid losing money.
2. Get your financing in order.
A common mistake made by first time investors is to find the property first, then get financing. Before you go out to find that hidden gem, get pre-approved for financing. Decide on a lender by choosing a bank, mortgage company or online loan company. When talking with your lender, tell them how much you are looking to invest. They’ll gather lots of financial information about you – income, credit history, liabilities – and give you an idea of how much they’ll finance. With the many different financing choices available today, you’ll need to decide which option works best for you. Financing plans have different variables including different rates, initial cash investment, and tax implications.
3. Look for your property.
Finding real estate that you can make a profit with can be tricky. Use the internet and local newspaper’s “Real Estate” section. Look for abandoned and “For Rent” homes. Drive around the area you’re interested in and try to find “For Sale by Owner” properties.
4. Negotiate a fair deal.
Once you’ve found the perfect house, you’ll need to negotiate for the best price. Don’t expect that you’ll get a steal. Sellers are trying to the most money for their property, and buyers are trying to pay the least amount. Negotiating well involves working together with the seller to find a win-win situation. Be assertive, but plan to make concessions. Inflexibility often causes expensive delays and added stress.
Is Real Estate Investing for You?
Real estate is an intricate business that involves many different legal, financial, and interpersonal aspects. Are you ready to jump into this complicated business? Think about these essential questions before you make your first move.
1. How much money can you invest?
Investing in the real estate market requires capital. The initial outlay of cash needed upfront to acquire a property may be large or small. Whether, it’s cash coming from your pockets, or cash that will be coming very soon, in the form of the stimulus bill, that millions of Americans will be receiving. You can use some of that money to put towards your down payment.But be sure you can afford to invest by looking closely at your personal financial situation. How much cash do you have? What amount of debt and how much interest can your finances handle? Think about how much you can lose.
2. Are you risk tolerant?
Risk and capital go hand-in-hand. How much risk are you comfortable taking on? A large loss to a small investor has a much larger impact than the same amount to a wealthy investor with deep pockets. While risk-taking can be exhilarating, be honest about your finances and think about the level of risk that will be comfortable to you. Do you naturally enjoy taking chances, or do you tend to be more risk adverse? It’s essential to success to know your comfort zone.
3. What are your future financial plans?
Are you interested in investing to maintain capital or to get the highest return in the shortest amount of time? Consider the amount of time, money, and risk associated with each scenario. Be logical. A straight 15% profit over a couple of weeks is not realistic. If you are interested in a high return, this usually means there’s a longer time commitment, which means your money will be tied up. The value of property can change quickly, leaving you in a higher risk situation.
4. Do you have what it takes?
To be successful in real estate investing, you need to be detail oriented, a quick learner, and have excellent interpersonal skills. You need to have the self-management skills required to determine what you need to know, then go out and learn it and apply it.
5. How much time can you spend?
Think carefully about how much time you can commit to the day-to-day tasks required to be successful in this business. In the beginning, you’ll need to spend a lot of time researching and learning about the business. With every endeavor you’ll need to spend time working on legal issues, zoning and town issues, insurance, tax concerns, contracts, market research, financing. If after considering these questions you are still interested in real estate investment – congratulations! This field is one of the most exhilarating ways to make a living.
Thank you for so much for reading! Feel free to comment, like, and share to others to inform them of the vast benefits of Real Estate Investing.