5 Money Lessons People Should Learn Before they Turn 30
Posted on: 30 May 2016 by Rachelle Scott
Life may have been about having fun and not having a care in the world about worthless spending when you were in your teens – or even early twenties.
Life may have been about having fun and not having a care in the world about worthless spending when you were in your teens – or even early twenties – but once you’ve hit the self-responsibility bar, you are bound to adopt financially-healthy habits. Without these money-wise decisions, we can’t expect to make the most of what we have and get ahead in life.
So, what could be done differently to secure a financially stable future? What money mistakes are we likely to make before we turn 30 that should be avoided? Here are a few financial lessons to learn before we are already halfway to retirement:
- House Rent Can Be Good: It may seem that buying a house would be much cheaper than paying a rent. But don’t forget that you don’t actually own a house until you have fully paid off your mortgage loan. That said, the cost of owning and maintaining a house can actually be more expensive than paying rent, depending on how much down payment you are willing to give at the time of purchase. Wise money-spenders usually wait to buy a house until they have saved aggressively for a down payment (which reduces future payments, favor you in terms of interest, and builds equity) – even if that means having to live in rent for a while.
- Retirement Needs Savings: Once you’ve decided to “settle in” it’s going to all about living with your partner, buying a house, having kids, saving for their education, and so on. But what about retirement? Save money from the start like when you’re graduating and writing a dissertation for your degree, get online dissertation help instead of paying for the help. Likewise, if you employer is offering a winsome retirement plan, go for it. The earlier you contribute to your retirement fund, the more money you save , and the more likely you are to foster the comfort you desire.
- Keep Applying: There is no harm is applying for jobs every 2-3 years to stay at the top of your profession. Even if you love your current job, there may be several reasons to move on because you’re not growing in the position fast enough or getting paid less than you are worth. Remember, a decision to work for a company isn’t final even after the salary and terms of the job are discussed. You could use this to your advantage by persuading your current employer to raise your salary if you are being offered a higher-paying position elsewhere.
- You Don’t Really Need a New Car: It’s tempting to buy a new car every three to five years, but to no real gain except for a few extra features, and perhaps a little more convenience. Cars can be run for decades if they are well-maintained and used in moderation. Once you’ve covered all your car payments, you’re saving a lot more than you would otherwise be spending on car financing. Agreed, maintenance costs incur once your car is old—but the cost of purchasing a new car combined with yearly interest payments are usually much higher than the cost of a few fixes and repairs on an old one.
- Insurances are Important: At this point, you also need to be properly insured. Employers usually provide health insurance, but if that’s not your case, it’s the first thing you need to sign up for. If you are looking for government health insurance plans, visit Healthcare.gov or Obama care. Various types of private health insurance options are also available. Which insurance(s) are most important may vary depending on your needs and situation. However, health, disability, renters, liability, and life insurances are usually on the top of peoples’ list.