Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,861,592 members, 6,865,030 topics. Date: Monday, 16 May 2022 at 12:16 PM

6 Money Traps You Should Avoid In Your 30s, 20s - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / 6 Money Traps You Should Avoid In Your 30s, 20s (350 Views)

Can A Man In His Early 30s Do Akara & Akamu Busines Without Shame? / How Quick Loans Lure Workers, SMEs To Debt Traps (2) (3) (4)

(1) (Reply)

6 Money Traps You Should Avoid In Your 30s, 20s by nairaab: 2:02pm On Nov 25, 2021
6 Money Traps You Should Avoid in Your 30s, 20s: https://anthonyex.com/6-money-traps-you-should-avoid-in-your-30s-20s/

I want to tell you something about money traps that you should avoid in your 30s

There are six money traps that you should avoid at all costs and I know all of them firsthand

First; Buying A Car That’s Out Of Your Price Range

Nobody really cares at all, so don’t buy a fancy car to impress people you don’t like or don’t know just because you can. You know you need transportation but there’s so much variability in price that you have to spend wisely.

So new cars can be one of the biggest money pits a person can get stuck in. A car fresh from the manufacturer loses about 30 percent of its value in the first year; and half of it by the end of three years

By comparison, if you buy a really solid vehicle that’s a few years old about half price and you keep it in good condition, you’re going to save much on it.

So, learning to protect and enjoy what we already have will make it a lot easier to set aside more income for investing

Second; Buying / Renting A Home That’s Too Expensive For You

Owning a home that increases in value is a really good practical expense but there’s a point of diminishing returns when you are funneling every dime you have into a mortgage or rent on a home that you can’t really afford; then you have no money left for emergencies, you have no money left for investing, and the strain on you, your marriage, everything, can be brutal

Third; Spending Too Much Going Out

We all do this. Although the house, the car are the biggest expenses to a monthly income, however, you would be shocked by the effect the little expenses dining out can have.

So because you have more discretionary income, you’re thinking about stepping it up a little. No! You don’t have to. Everybody wants a little entertainment now and then but you should still budget for it, give yourself a little room to spend on the things you really want to do; that’s great but keep it under control and you’ll enjoy going out and doing that thing you really want to do all the more

For the effort to keep it in your budget, some people I know just put the money for the restaurants into an envelope at the beginning of the month, take it right out of the bank and when that envelope is empty, they’re done going out.

Fourth; Having An Expensive Significant Other

Even if you’re a master of your own money, other people may have a habit of getting in the way of your financial plans in a big powerful way. Failing to communicate about how you’re working, your spending habits, with your significant other is a major cause of relationship trouble for married couples and committed couples. So, if you’re dating or you’re just getting into a long-term relationship, take the advice here

It is very tempting to blow up your budget with gifts and entertainment and travel and what happens is you start to convince this significant person in your life that that’s your lifestyle. So, watch out. Don’t let too many weekend getaways take away your ability to demonstrate who you really are going to be in your future, make your expectations really clear from the start. Live your lifestyle with the person you expect to live your lifestyle with and don’t fake it.

Fifth; Loans or Credit Car Bills

So many people are stuck because loans are easy to access these days; even if you don’t have a solid income with interest rates higher than you can get with really good investing; don’t do loans

Every time you spend money on a credit card or you get loans and you don’t pay it back at the end of the grace period, you are paying with your investment capital for the convenience of spending money. It can be very tempting to go for another one once you match the other ones out, I have done this and all the while, more of your budget gets eaten up with interest payments. It’s a dangerous game, you better not play it

There’s an easy way to stop the cycle, just keep your budget less than your income and stick to it and don’t open new credit cards or get new loans

Finally; Not Investing

Huge Mistake!

Although some people are putting a lot of emphasis on short-term investment gains; getting to your goal of financial freedom is not a sprint, it’s a marathon, the earlier you start the more you can accumulate. So begin investments and begin with planning for financial freedom is all about the balance between paying your expenses, eliminating current debts, and always setting aside money that can help you get to your goal of having the life you want

Life moves really really fast and you do not want to lose track of opportunities. You’re going to have many of them and investing now gives you decades to pick up skills and confidence and watch your money grow. You’ve got to get to it as early as you can in your 30s, 20s

Pay yourself 10% of your income first and live on the rest of it including taxes. 10% of every single paycheck goes into your investment portfolio

1 Like

Re: 6 Money Traps You Should Avoid In Your 30s, 20s by nairaab: 2:03pm On Nov 25, 2021
Don't forget to register

Re: 6 Money Traps You Should Avoid In Your 30s, 20s by nairaab: 7:53pm On Nov 26, 2021
6 Money Traps You Should Avoid in Your 30s, 20s

(1) (Reply)

Paypal Exchanger Rate: N400/$ / Brando Coin Exchange: First Crypto Exchange Out Of Nigeria / POS Terminal Scam

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2022 Oluwaseun Osewa. All rights reserved. See How To Advertise. 65
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.