The thirties is a turning point in a person’s life where they have to seriously look at conditions in their lives and what they are doing with themselves. It is the point between youth and older age. Unfortunately, there are a lot of financial mistakes that people make in this time of life and beyond.
The thirties is a turning point in a person’s life where they have to seriously look at conditions in their lives and what they are doing with themselves. It is the point between youth and older age. Unfortunately, there are a lot of financial mistakes that people make in this time of life and beyond. Here is a list of the financial mistakes that people make in their thirties.
Not Properly Investing
Once you hit 30, you should start to realize that your middle aged and elderly years are not too far away. This is why you have to properly invest your money for the future. There are a number of things that you can invest your money in—precious metals, stocks, money in the bank, etc. Make sure to set money and resources aside for both a rainy day and your golden years.
Getting Yourself Into Credit Card Debt
Some people get into a horrible habit where they run up credit cards and get into a spiral of debt. It’s shockingly easy to pay for things that you can’t really afford via a small piece of plastic. Do not let the easiness and convenience of credit cards trap you.
Not Building Up Your Credit
It is very important to build up your credit because credit is something that is relevant when purchasing and renting important things such as homes, apartments and cars. Of course, if used unwisely, the use of credit can result in massive amounts of debt. However, if you don’t have to make huge purchases to build credit; you can just make very small purchases and immediately pay them off. It is important to start building credit as soon as possible.
Spending Too Much On Vice
The costs of alcohol and other inebriating substances can add up. If you want to save more money, cut down on the vices. If you smoke a box of cigarettes each day, it may be time to kick the habit—for the sake of your wallet, in the very least. If you drink copious amount of alcohol on a regular basis, you should stop. The same goes for any other substance. It is unnecessary and unhealthy to consume massive amounts of drugs, cigarettes and/or alcohol, anyway. If you are giving money to adult entertainers, it is time to stop doing that, or to cut down on how much you give.
Not Brown Bagging It
If you are over 30, you should really be brown bagging your lunch if you want to save money. Sometimes, it can be hard to want to eat brown-bagged food when the smell of hot, freshly made food from local business is lingering in the air. For some people, brown bagging requires a certain level of self discipline and a certain mindset. You must grow into this mindset, if you have not already done so.
Living A Non-Frugal Life Of Luxury
Living a relatively non-frugal life of luxury is a good way to financially destroy yourself after the age of 30. It may seem unbelievable but, before you know it, some relatively inexpensive entertainment expenses can add up to large amounts. For example, let’s say that within the course of a month you spend $300 on restaurants, $200 on tickets for shows and hundreds of dollars on other activities. Before you know it, you may end up spending $1,000 or more on leisurely activities that you could most likely cut back on if you really wanted.
Doing Expensive Things With Friends
Once you hit the age of thirty, you should try to do less expensive activities with your friends. If you cannot convince your friends to do less costly activities, it may be time to find friends who appreciate a more frugal lifestyle. Instead of hanging out with the Great Gatsby, hang out with someone who has more frugal tastes.
Not Having Started A Solid Career
When you’re in your thirties, you are relatively close to your golden years. This is why you should start a solid career or already have one going. You are going to need a solid career that allows you to save money for retirement, as well as earn a pension. If you have not found your direction, you should in your thirties. This is a time when you should seriously evaluate and reevaluate your work life. Are you satisfied with various economic and personal aspects of your job?
Not Thinking About Retirement And Your Golden Years
Once you find yourself in your thirties, you should start thinking about retirement and what, exactly, you will do in your golden years. What are your financial goals for those years, and what kind of lifestyle do you want to live? If you do not consider these things now when you are your thirties, you may find yourself up a creek without a paddle when you are elderly.
Having Children Without Planning Finances Properly
Of course, people have the right to procreate, despite whatever circumstances loom over their lives. However, having children can drain you of finances—even if you raise your children in the most frugal manner. You will have to take into account things such as clothing, food, various bills and daycare. Also, down the road you may have to pay for the child’s schooling. You may have to put your child into private school if the local P-12 schools are sub par. Also, you are going to want to save for your child’s education.
Trying To Keep Up With Peers
A lot of people feel pressured to keep up with the materialism and expensive decisions of their peers. If you are still trying to keep up with the Jones’ in your 30s and beyond, you are in a rude financial awakening. Release yourself of this pressure, and you will find that your finances will become better endowed.
People make financial mistakes in their thirties. These mistakes include trying to keep up with peers, having children without doing financial planning, not thinking about what one will do in one’s elderly years, doing expensive things with friends, living a relatively luxurious life, not brown bagging meals, spending too much money on vices, not properly investing and getting into credit card debt.