After years of failing, experimenting and learning from our failures, many figured how to steer or evade common money mistakes by the time we reach 30. It doesn’t end there because when we reach 30, new set of challenges will come our way and again, we have to deal with the failing, experimenting and learning.
There will always be money mistakes to be made regardless of our age. It is important that we know the most rampant mistakes because there are many life changing moments when we reach 30 such as purchasing a home and raising kids. Here are the mistakes that we have to avoid:
- Saving in the wrong places: Investing here in Singapore is important but many times, we tend to ignore it because we are saving in the wrong places. There is nothing wrong for retirement plans but we have to save for bigger purchases like a house, car and the education of children.
- Prioritizing education over retirement : While it is important for parents to consider education first before anything else, the common mistake is giving it too much importance. We have to consider our own retirement because when time comes, supporting us in the future is more expensive than getting student loans.
- Neglecting insurance : We do not consider insurance because they are not fun to talk about. There are many different kinds of insurance from healthy to life, home and disability. We have different needs so it is best if we seek and researchfor the insurance plans. There are many trusted advisers here in Singapore that we can consider.
- Spending too much money on our wedding : Many couples are spending too much money for a wedding is not practical – unless we have too much to spare. It is best to host a small wedding and use the extra money for the down payment of the house.
- Overspending on the first kid : It is not a crime to spend on the first child but sometimes we overdo it. Overspending on the first kid is not practical. We spend money on different accessories which are not important.
- Overspending on cars : We get bored with cards easily and getting a new one is not a question but sometimes, it is not practical. Dealing with car payments every month will add into our expenses.
When we reach 30, we have to make sure that everything is laid out according to our plans. Now we pointed out the common mistakes we make after 30, we have greater chances of surviving it flawlessly. (Source: Business Talk)