10 Financial Mistakes To Avoid In Your 30s
Saving is a way to accumulate money for future needs. Of this, 25-35% should be for home loan repayment and the rest for other forms of debt, including car and credit card loan. That money should go to investments or savings (or at least a portion of it should). So, by starting your retirement planning early, you not only get to generate considerably higher returns until the time you retire but are also able to reduce your tax burden.
Your 30s are an exciting time, often punctuated by a series of life-changing events. This online simulation will help kids from 4th-6th grade start to learn the concepts of smart savings. Many finance experts suggest that success in investing is driven by time in the market, not timing the market, which is why your twenties are the perfect time to start investing.
One must plan out a detailed strategy and pay of existing debt to the extent possible. Pay your bills on time to avoid late fees. Focus on paying off one debt at a time and once you're done, move all the money you were paying for the first debt to the next one.
Now that you received a pay rise, don't go spending it all, you still should be able to live off the same amount you did before and put the new pay rise into your savings account to purchase your first or money second property. Graham says that people often fall into the trap of only making the minimum monthly repayments, even though that doesn't reduce the debt and accrues a high interest rate.
A financial planner helps people figure out what the next 10-20 years of their life (and bank account) should look like and how to achieve those goals. In the above example, we saw that saving a pretty impressive $800 a month over 20 years would result in almost $400,000 of savings.
Of this, 25-35% should be for home loan repayment and the rest for other forms of debt, including car and credit card loan. That money should go to investments or savings (or at least a portion of it should). So, by starting your retirement planning early, you not only get to generate considerably higher returns until the time you retire but are also able to reduce your tax burden.