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5 money traps to avoid in your 30’s

What goes wrong financially when people get to their 30’s? This was the question I pondered on one beautiful Thursday morning. In order not to be on the same boat by the time I finally get there, I decided to get some piece of information about it.

This is the stage where it becomes harder to correct mistakes in life. It is arguably the most important stage in every man’s life. Most times, this is when we apply all the knowledge gotten from our 20’s; when we correct the mistakes made in our 20’s etc.

To pass this stage with flying colour, I’ll advise you to avoid these money traps during your 30’s.

 

5 money traps we must avoid in our 30’s

1. Not having a financial goal

This is one of the most important things one must have financially this period. Lack of this will make things always difficult financially. This goal cut across earning goals, investing goals, saving goals and spending goals.

When your goals are well defined, it eases financial stress. You determine how much will be left in your bank account after some time; how much will be invested in a particular business; how much will be used for fun spending etc. This is you clearly defining your financial goals. It’s something very important to practice during this stage of one’s life.

2. Not being financially literate

This is one area I feel formal education has failed. There is a need for financial education to be implemented across all fields of education. This is different from studying accounting, bookkeeping, economics etc, trust me. Many suffer financially because of the lack of financial intelligence. It’s this intelligence that will enable one set financial goals properly.

Nonetheless, this doesn’t mean we can’t go-ahead to acquire this financial knowledge on our own. We can find these basic ideas in books like books on investment and businesses. We can also ask questions and get this information online etc. Remember excuse is not an option. Strive to be financially intelligent today.

Must read: The 3 kinds Of Intelligence Needed For Overall Success

3. Not investing or not investing enough

Most people wait too long before they start investing. They happen to forget the popular adage which says “time waits for no one.” Why wait for one more day when you can start investing now? Why act like you are not procrastinating?

Recommended: WHAT ARE THE DANGERS OF PROCRASTINATION

These are questions basically for salary earners to answers. Remember, you’re going to be retired one day. This doesn’t mean you shouldn’t remain rich during that time. This is where investing comes into play. Investing is more or less saving money for the future.

Also, you can choose to invest so you can have enough money to start up a project in 2 years. It takes away the burden of having to empty your bank account all in the name of completing a project. So, what are you waiting for? Start investing today.

4. Not having high-income skill

A high-income skill is a skill set. It is the skill that generates income for you where you want when you want and with whom you want. It is a skill that enables you to generate income on your term. Some people call it side hustle, but it can be more than that.

These skills make you self employed even when employed by a company. It puts extra money in your pocket which might even be higher than your salary. The more skills you have, the higher opportunity to make more money.

Examples of such skill sets are blogging, copywriting, making youtube videos, digital marketing or consulting. Any skill you can offer at the comfort of your home that is beyond your current occupation is defined as high-income skill.

So many people don’t see the need for these high-income skill set because they earn enough to take care of themselves and their family. That problem boils than to lack of financial intelligence. No money is too much in the financial world. Your high-income skill set will go a long way to double or even triple your annual financial returns. Don’t joke with it.

Lastly, it’s something you can always fall back to if things are not all rosy in your place of work

5. Buying a liability

In simple terms, liabilities are things that don’t add money to your pocket but rather take from it. In reality, liabilities are based on usage. For instance, I doubt a car is a liability to a cabman. For someone else, a car is a liability that drains him financially without him/her realizing it.

Acquiring good financial intelligence will open your eyes to what your liabilities are at the moment. The moment you realize it, it’s best you do away with it. Focus more on getting lots of assets. If the money budgeted for spending is more than enough, feel free to get some liabilities. Till then, stay far away from them.

 

Conclusion

Attaining financial success and stability in the future requires setting a financial goal, which is clear and achievable. The little sacrifices you make now and how resolute you are acts like seeds that you sow on your farm and the work you do on it to make your harvest great. You will reap bountifully if you don’t tire out or relent.

In which of the money traps do you find yourself in? what technique(s) can you use to wriggle out of the traps? Let us know in the comment section below. Don’t forget to hit the share button.

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