Well, today, we’re expanding upon that a little more!
As you approach your 30s or 40s, you’ll often find yourself trying to balance between growth and planning for retirement.
You might be hitting goals and growing leaps and bounds in your career (and hopefully in your paychecks as well)!
You might find yourself settling down with a partner and am planning for children. But are you also on track to bankruptcy like so many out there in their 30s?
Well, this week, it’s all about the 5 money mistakes you should avoid in your 30s!
1. You find yourself without a financial plan
Before you know it, you have a new house, children, cars, loan payments and other unexpected costs, many of which can take you by surprise.
Without realising it, you might be delving into savings, borrowing more and exposing your family to greater financial risk.
Now is the time to get on top of your finances and change your spending habits for the better.
A financial plan for the future can help you consider what’s important to you and yours, what lies ahead and how to prepare for the costs of these things while putting aside money for savings, investments and to generate extra income.
2. You're close to spending beyond your means
When your career starts to skyrocket and the money flows in, it can be tempting to enjoy the moment and spend big. Remember our article about spending what you're earning?
Maybe you always wanted that shiny new car? Or that much-needed holiday to a luxurious eco-retreat?
Instead of letting loose, now is the time to consolidate and pay off any outstanding debt from your younger years, especially on those high interest credit cards and loans. It’s time to balance your priorities – try to save for the future (retirement and holidays) while enjoying your life (without trying to keep up with the Joneses).
3. You're ignoring the important insurances
No-one wants to think sickness and death, house fires or life-threatening floods, but you need to protect your assets and those around you, including yourself.
When it comes to your home, you should consider periodically increasing the amount insured, as you start to accumulate more items around the house.
Too many of us keep our policy, for all insurances, at the same level as when we first took it out and fail to realise how much our lives have since moved on.
4. You're dipping in and out of your mortgage
It’s a classic rookie error. Get a mortgage from the bank and use it as you would an ATM. You redraw too often or you end up getting a loan against the property’s increasing equity.
Whether you plan to refinance a higher interest debt or use the extra cash for a new car or investment, tread carefully, as you’ll be eating into your longer-term security by spending the hard-earned equity in your home.
5. You fail to put away extra money for emergencies
As your family and commitments grow, so does your need to plan for unexpected emergencies.
While we don’t want you to panic, a couple of hundred bucks in your high- interest savings account won’t cut it anymore.
You have increased responsibilities and your emergency fund should reflect that. Adjust the size of the pot and plan to have about six month’s worth of living expenses, including mortgage payments, put away in a safe place that you won’t be tempted to take back from.
Your 30s can be a wonderful time of life when your family grows, alongside your income, travel, household items and future possibilities!
By making sure you avoid these common money mistakes, you’ll quickly take charge of your money and still have plenty of time to achieve your financial goals.
Let us know what you’d like to read more about in the comments below for our next piece on BigPay’s #LetsTalkMoney series!
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