10 important money facts you need to know in your 30s to avoid regrets at 50
Some people manage to buy houses and open their own businesses at the age of 30. Others, at this age, are still trying to figure out how to make more money. There are certain self-evident truths that can lead to wealth, while others can lead to financial disaster.
Bright Side has selected the most effective tips for you. They can be very helpful while you are still young.
1. The cost of raising children is very expensive
There’s a very confusing stereotype that we should have kids in our 20s, 25s or 30s. But seriously, parenting is expensive. That’s why it’s much better to have them when you’re completely ready, including financially.
So, do not rush, but prepare a “financial cushion” with your partner before the family is larger. Through these means, you will enjoy wonderful moments instead of thinking about money one by one.
2. Don’t be ashamed to ask for a promotion
If you’ve been working in a similar position for more than 3 years, it’s time to move up the career ladder. Asking for a promotion is the right step to improving your financial situation. That’s why you shouldn’t be shy about asking for promotions and raises. At the same time, don’t be afraid of bigger responsibilities and increased workload. If you’ve been rejected for a promotion multiple times, it’s time to start thinking about changing jobs or improving your professional skills.
3. Renting a house is more profitable than buying
We like to think that investing in real estate is a great decision. But real estate is getting cheaper and cheaper while you pay more for a mortgage. So is it really profitable?
Here is an example for you. Assume that a house costs $100,000 (nearly 2.3 billion). Its rent is about $550 ($12.5 million) per month, annual rental is $6,600 ($151 million).
Subtract that $6,600 ($151 million) from the overall cost of the house. We will deposit the remaining amount into a savings account with an interest rate of 7%. Thus, our annual income with it would be $6,752 (154 million), enough to pay for another year of rent.
Example: If you invest your money more wisely, it will bring you $9,764 (223 million) at the end of the year. So you will really get a reasonable profit.
In addition, you do not need to spend money on maintenance, taxes and furniture. That is why, before making a decision to rent or buy, count all the expenses and choose a more profitable option.
4. Do not borrow to pay off old debt
There is a very common concept of borrowing new to pay off old debt or repaying one person by borrowing from another. This is a vicious circle. Better to have no debt. But if you have a loan, it’s better to stop buying something and save money to pay off the loan without borrowing more.
5. It will be more effective if you buy good quality shoes and clothes
Good quality clothes will serve you much longer than cheap clothes. Therefore, it is more efficient to spend money on durable things. And if you buy them during the sale, it’s doubly effective. Try to make a list of essential items and buy them during the sale period. Then you can save money for an upcoming vacation.
6. Avoid impulsive purchases
Impulsive purchases are evil, even though they bring joy. If you have a tight budget, this way of shopping leaves a lot of holes. Impulsive buying is nothing but a need for happiness and joy. Find joy in something else instead of impulsive shopping.
7. Start saving money for old age now
You’re 20 today and you’ll be 30 before you know it. Time flies mercilessly. One moment, you are young the next time you have to pick up your grandchild from kindergarten. By saving a month, you will have a decent amount of money in your account in your old age, which will make you feel more confident.
8. Put a certain part of your salary into a savings account to create a “financial cushion”
Life is unpredictable. Anything that can happen requires a lot of money on your part. But where will it come from? If you save money every month and put it into a savings account, you won’t panic in a situation that arises because you already have that financial backing.
9. When it comes to financial expenses, have the same mindset as your partner
You and your partner should agree on everything, including financial questions. If you try to save money and your partner just keeps throwing it in the wind, you will never get rich. Talk to your partner and develop a unified costing strategy. Set common financial goals and achieve them. For the right motivation, try saving money for a vacation, for example.
10. Find a source of passive income
It’s good if you have a job that gives you enough money. But in a constantly changing world, it’s always better to have multiple sources of income. That’s why you should start thinking about investments.
Theo brightside
at Blogtuan.info – Source: Afamily.vn – Read the original article here
