You have recently graduated from your carefree 20s into your responsible 30s. You are likely thinking more about relationships, careers, buying a home, starting a family, and money management. This new phase can be both exciting and challenging. So it is important to know some money mistakes to avoid during this period.
In order to achieve financial freedom and enjoy your retirement years, here are six money mistakes you can make in your 30s and how to avoid them.
#Mistake 1: Missed Credit Payment
One money mistake you need to avoid in your 30s is having credit cards that you plan to pay off but are still missing the payment. It is a bad money habit to miss the payment of a loan you are supposed to pay off because the principal is not chasing you.
You need to set up a direct debit for all your debt payments. If you are more flexible, set up a reminder on your phone to make those payments. No matter how little, start making regular payments towards that debt.
Missing credit card payment impacts your credit score and could be a blot on your credit history for the next 5 to 6 years. On this journey to financial freedom, your credit has to be clean and missing payments will not help you.
#Mistake 2: Not Checking Your Credit Score.
Not knowing where you stand with credit agencies is a money mistake you need to avoid in your 30s. Why wait till you need a mortgage before checking your credit sc?
You need to be on top of your credit score and be aware of what your credit report is saying.
Also, you should know if there are things on your credit report and history impacting your ability to get credit.
Always check your credit history to see if there are errors that need correction. Additionally, if there are cards that you have paid off but are not reflecting on your report, make sure it reflects.
Apps like the Clearscore app can help you keep on top of your credit score. Once you download it and enter your details, it will show you your score and update you monthly on how well you are doing with your credit.
#Mistake 3: Using Store Cards
Using store cards to make a purchase is one mistake I hope you will not make this year. When you enter the store, they offer you a card and a 10% discount on your next purchase.
The rationale behind store cards is to make it easier to spend more since you are not pulling out of your pocket directly. Don’t fall for this trick.
It is not beneficial because it is still a credit purchase, and you will pay back the 10%.
If you are still spending store credit cards to make purchases in stores, pay them off and cancel them now.
#Mistake 4: Shopping For Groceries Without A List
I have videos on my Youtube channel that can equip you with tricks, tips, and hacks to help you shop for groceries like a pro. One such hack is shopping with a shopping list.
Going to the store without a shopping list is a money mistake you should avoid this year. A shopping list helps you to buy everything you need and prevents you from buying things you do not need. You will also spend less money and avoid buying extras when you shop with a list.
I have a budget and saving book on Amazon with a comprehensive shopping list session and amazing feedback. So, if you have been making the money habit of branching into Walmart, Ebeano, or Tesco without a shopping list, you should stop.
#Mistake 5: Getting A Car Loan From Auto Dealers
I also have a couple of videos on my Youtube channel where I shared how to buy and pay for car purchases. Taking a loan to buy your car from a car dealer is a money mistake to avoid this year. The best place to get a loan for your car purchase is from your bank.
So if you need to take a loan to buy your car, talk to your bank and arrange your loan before getting to the car dealer. Doing a loan with the car dear is a third-party loan, and the interest is rarely good.
#Mistake 6: Not Budgeting
When your income comes in, it is limited resources and cannot be all, buy all, or do all. Budgeting your income allows you to prioritize the things that you need to prioritize.
It allows you to put your bills first, debt second, and savings and investing third before spending.
You can budget with an app, my budgeting and saving book, pen and book, an excel sheet, or any tool that works for you.
I hope you avoid these 6 money mistakes as you embark on the journey to 40.
Till next time.