Advertising

10 Worst Money Mistakes People Turning 30 Want All 20-Somethings To Know

10 Worst Money Mistakes People Turning 30 Want All 20-Somethings To Know
Advertising

We all make mistakes – whether small or big; we humans are prone to imperfections. When making mistakes relating to money, these can often be harmful. Here are 10 money mistakes that can potentially prove dangerous for people who are turning 30 or will be soon.

1. Not being able to save where it actually matters

Saving is one of the basics of life. However, if we save, and it doesn’t matter, why save? The key to saving is saving where it actually counts and actually matters. Investing is definitely important but don’t burden yourself.

2. Focusing on the next generation’s future (ie. education) and forgetting about retirement

It’s great to focus and pay attention to your kids. Retirement is also a big factor and you don’t want to put that off until later. Make sure you invest your time and money on your retirement also.

Advertising

3. Forgetting about insurance

Insurance is a valuable resource and tool in today’s day and age. Why lose focus on it?

Later in life, around your 40’s and 50’s, you can’t be sure what will happen. Instead of assuming everything will work out exactly as you’ve planned, be careful, and invest in your insurance, as it will provide you with extensive coverage and peace of mind.

4. What about Long-Term Disability Insurance?

When talking about mistakes, we must talk about long-term disability insurance. Many neglect this aspect of life.

Advertising

Statistics show that over 25% of Americans will be disabled before retirement. Do something before this takes a toll on you. It is always an advantage to be safe rather than be sorry. Make the right choice. Get that long-term disability insurance in check and working for you. You’ll be happy you did.

5. Forgetting to discuss money as marriage plans approach

Marriage is an expensive time in anybody’s life. Forgetting to discuss what money will be invested and spent is a huge mistake especially during a time when saving money is of great value.

6. Spending absurdly on that wedding we talked about

We all dream of having the perfect marriage with the bright and fancy colors. However, going overboard, when financial discretion should be shown, is a mistake many 20-somethings make. Don’t let it happen to you. Conserve when you can. Spend when it’s necessary and when it adds significant value. Don’t uselessly spend money where it doesn’t need to be spent. This can become a huge mistake that is sometimes irreparable.

Advertising

7. Wasting endless amounts of money on the first child

There is a huge difference between pampering and providing what your child really needs. A first child is every parents dream, but spending too much on the first child deprives the children who are born later. What if you spend so much on the first kid, and then forget to do it, or not have enough money for the rest of the kids? You don’t want to let this happen as all kids deserve to be treated equally. So, make you sure conserve some of your money here.

8. Car crazy

We all dream of the perfect car that looks amazing, speeds, and shimmers on the highway. However, spending excessively on that particular dream car, may lead you to doom. Don’t let yourself go all out on it. Conserve here again so you won’t regret later on in life especially when your thirties arrive.

9. Graduate School

Graduate School is a wonderful place to continue your education, knowledge, and build on your resume. However, having said that, don’t just waste money there, if you don’t really know what to do in life. If you have a clear plan, go all out to graduate school and secure your place. However, Graduate School is primarily expensive and is not for the masses. If you think you can do it, great! If not, disregard this option and continue working.

Advertising

10. Getting a job for money’s sake

Don’t do this. Money will come and go. Prepare for the next phase of your life but don’t push away dreams and aspirations for the sake of money. Money isn’t everything in the world. It is a safety net but it isn’t everything. You can’t buy away your love or dreams, so don’t do this.

Instead do something you love, and then hope to make a ton of money in the future. Just don’t do it for the present moment. Think about your long term goals.

More by this author

Ramanpreet Kaur

Currently a student but don't know what direction to go in: Let us see if writing gets me anywhere :)

Why Drinking Water Is So Good For Your Body How To Go Through College And Stay Sane The Oldest Person In The World Reveals Her Secrets To Longevity If You Have A Weird Sister, Never Leave Her Alone 13 Amazing Yiddish Words That Can’t Be Directly Translated Into English

Trending in Money

1 Financial Freedom is Not a Fantasy: 9 Secrets to Get You There 2 40 Healthy And Really Delicious Meals You Can Make Under $5 3 Life Insurance: A Secure Way To Protect Your Future. 4 How To Save Money On Groceries: 13 Quick Tips 5 10 Investment Tips For Beginners

Read Next

Advertising
Advertising

Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
Advertising

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

Advertising

Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

Advertising

If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

Advertising

Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

Advertising

8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

Advertising

Reference

[1] Hartford Gold Group: IRA Retirement Accounts

Read Next