If you see from a financial standpoint, then your 30s are your most important decade all your financial life. why is that?
now when you pass the 20s figuring yourself out. because in your 20s you were trying to find out what is the ideal career for you, what you should focus on, what is your purpose you. but in your 30s you are a little bit more mature right now. you have a little bit more experienced, but you're still young enough to apply some of these financial strategies. it will make a huge difference in your financial life.
1. Buy a house that you can't afford
you see a lot of times in your 30s most people they think about marriage, they think about settling down, they think about having kids or maybe you already have kids or you are already married and one of the mistakes that a lot of people make is they want to keep up with the trend...
That's because their friends own a certain house. now they want at least to live in the same neighbourhood or the same house and they want to compare with other people, so they end up buying a house that they actually can’t afford.
now you have to understand that when it comes to buying your primary residence, your home, your house these are expenses that affect your other expenses. “what do I mean by that?”
It means that if you move to a certain neighbourhood, the house, the home affects your other expenses. Meaning, the more expensive your home the more expensive will be your homeowner insurance, your utilities, where you shop, where your kids go to school, what kind of car do you drive. it affects your other expenses. so it's not just the house itself, but everything else that goes with it.
2. buy a car you can't afford
This is kind of similar to number one. So in your thirties, now you will make it a bit more money if you are in the corporate world and you are stable and you want to buy that car. but financially speaking...
it is not a very smart decision, is not a very smart move because by spending too much money on a car, you cannot afford anything else. again your car expense will affect your other expense, the more expensive the car, the more expensive your insurance. the nicer your car, the more expensive gas that you have to get. So you need to make a balance on that thing.
3 not investing or not investing enough
in your thirties, you still think you have a lot of time. you still have 35 years before even worry and think about retirement. But the truth is...
“YES you have time but you don't have a lot of time” and most people wait too long and they think when they make more money than they will invest. NO…
you must take advantage of the power of compound interest; you have to use it to accumulate your wealth even if you put aside a bit of money every month to invest for the long term.
4. not having a high-income skill
Now, why do you need a high-income skill?
You have to understand that with inflation and cost of living going up, every single year things are getting more expensive.
the dollar that used to buy a certain amount of things and items that dollar is getting thinner and thinner every year.
so let's say the cost of living is going up by 3% every single year. So, it means that if your income stays the same, you are getting 3% POOR every single year!!
So, that this is why most people struggle because the earning abilities are not as fast as inflation, so even though if you're staying the same you are actually getting behind.
So you have to try to make your skills more often and you constantly have to try to make more money.
5. not having financial goals
Many people nowadays don’t have any financial goals. If you ask them how much you want to make in 5 or 10 years, most of them will go blank. Because they don’t have any financial goal. So in your thirties make sure that you have financial goals.
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