The 20s is all about getting a degree from the college, finding the first job and enjoying life. But the 30s is very different as you enter the realm where you most probably have married, bought a new home and have children. So, you see there is a huge difference in being at the age of 20s and in 30s. You will have plenty of responsibilities in your shoulder and will also have to take many crucial financial decisions that can shape your entire coming future.
It is true that at this age, you will be earning double or more than what you must be earning at your 20s, but you will have too many things to look out. Here, in this blog, we have prepared a list of 7 mistakes that you should avoid in your 30s. So let us see them one by one.
Financial Mistakes that people aged in their 30s should avoid
Not having a financial plan
Like said above, people at the age of 30s get married, have children and live in a new home. Well, managing all the expenses of these things can be really difficult and in no time you might find yourself using your savings and borrowing to meet the expenses. By doing this, you put yourself and your family on the verge of financial risk, so it is better to take effective steps before this situation occurs. You need to figure out the ways to control your money rather than letting the money controlling you. For this, the first thing that you would need is an effective financial plan. Yes, you heard it right! You cannot reach financial stability without a good plan as it helps in deciding things that are important and things that are not financially important and also it helps in reaching your future goals.
Spending more than you can afford
This is the age where you will be getting a good amount of money that you probably didn’t get at your 20s. This can be very tempting and you might think of enjoying this moment to the fullest by spending more. You bought that shiny car which you always wanted, went for a luxurious holiday trip with your family, and many other things. You should know that this is not the time of letting loose where you spend all your money on intangible things. During such time, you should learn how to save and pay off debts faster which you took in your early days. As you are earning well at this stage of your life, so even if your credit score is bad, you should try to complete your debt. For this, you can get in touch with private lenders to apply for very bad credit loans with no guarantor where no broker is involved.
Not taking insurance seriously
Life is full of tragedies and you can encounter sickness, deaths, house fire and any natural disaster. So, in order to keep your belongings and your dear ones safe including yourself, you need to think beyond savings and start giving attention to insurance policies. There are various insurance policies available in the market which you can apply for. If you have accumulated numerous valuable things in your home, then it is better to get home insurance to make sure that if in case, any mishap takes place, you will be getting an adequate amount of money that can cover the majority of the cost of your home and the items inside it.
Having too many old debts
There are many people who use multiple credit cards and there is nothing wrong about it certainly. But using more than one credit card is a double edge sword. Yes, it is true that you will have the financial support at any time you need but you should realise that you don’t own the money that you use on your credit cards and you will have to pay it off along with the high-interest rate. So try to avoid overusing your credit cards and keep a balance. Use at least 50 per cent of the card limit and try to complete the repayment on time. This will ultimately have a positive impact on your credit score and it will get easier for you to apply for loans for bad credit with no guarantor.
These were major mistakes that many people do that further make them financially unstable for a long period of time. Thus, it is better to avoid doing these mistakes no matter what happens.