No one can achieve financial stability in a snap. It requires a lot of hard work, patience, and time. During the 30s, many think about settling down, having kids or buying a house. This is also the time where consumers are obliged to pay rent and utility bills such as electricity. That’s why many are experiencing financial shortage too during their 30s because of simple wrongdoings. Avoid these top financial mistakes and enjoy financial freedom in the 40s and so.
Relying too much on credit cards
Credit cards are a big help in times of monetary shortage. However, it allows consumers to overspend and buy unnecessary stuff. Most credit cards are known for their fees, interest rate, and hidden charges. Be careful and do not fall with this marketing strategy. Instead, use cash to avoid overspending.
Focusing on a single source of income
For many, full-time work is enough for a living. But, what if something came up and you lose your job? This scenario is not impossible to happen. That’s why it’s better to have another source of income and not just rely on pay from work. Do self-assessment, check useful skills, and explore different areas. A part-time job as a writer, technician, or put up a mini grocery will give extra money. Plenty source of income means more money to save and invest in the future.
Know more at prime money errors to avoid in your 30s and 40s
Financially unprepared when moving in with a partner
It’s typical nowadays to live together before marriage. However, the top mistakes that commit by many are not discussing finances with their partners. It’s important to become open about finances, budgeting, and debts. Also, being aware of the top financial status of each one prepares couples for upcoming expenses.
Overspending on kids
Kids are always the family’s priority. That’s why parents are willing to spend as much as they can to make their little ones happy. But, before going crazy on spending think about what is more important than toys and brand-new clothes. Savings account and investment fund are good options for the kid’s future.
Overspending on housing expenses and mortgage
Everyone prefers to live in a fancy house or apartment. But the bad thing is, the fancier the house the higher its costs. Many Australians pay more than 30% of their monthly income on rent and mortgage. How to solve this? – Do not live beyond the reach. Look for a rental place which is more affordable for the budget with quality. Comparing and switching mortgage plans surely help to lower down the rates and housing costs. Make sure to be meticulous to avoid paying too much.
Putting off life and health insurance while it’s cheap
Many are satisfied with insurances provided by the government. However, these health and life covers are limited compared to a private one. Keep in mind that, “the younger you are when you buy an insurance policy, the less you’ll pay”. It’s easier for younger people to be eligible for health and life insurance. Also, it’s a good idea to invest for policy and be prepared in times of worst circumstances.
Not switching electricity retailer
Switching is a waste of time – is one of the common myths about the energy market. Some consumers consider it as tons of work. However, it makes consumers get the best energy plans. Staying loyal doesn’t assure the best energy deal. Be open about comparing and switching plans to maximize the biggest energy discounts. Also, this helps lessen their bills and save some money.