Introduction Of 5 Financial Traps You Should Avoid In Your 30s
5 Financial Traps You Should Avoid In Your 30s. A used car saves you money on the initial purchase price, but it can also turn into a headache. Buying a car is one of those things that you really shouldn’t take lightly. However, the vast majority of people buy a car according to their style, how other people will perceive it, what their coworkers, neighbors, the boss, people who probably don’t even care about really what car to buy and what color it is and what style it is.
A bit of a victim of dealer tactics to sell options or features
And they also even end up a bit of a victim of dealer tactics to sell options or features, which ultimately end up being irrelevant. So knowing that this is a big financial decision, and a significant commitment of money, I shouldn’t fall into the trap of buying a car that is really out of my budget. Otherwise, you should keep in mind that if it is financed (hopefully not), at least take into account the formula that I explained in a previous video, but that preferably.
I should do everything possible to save the money to pay it in cash and avoid an assumption asset, which in reality is going to depreciate and generate expenses, apart from everything, it will be more expensive for me and outside of that it will go out of budget and I cannot cover it. Trap # 2 is very similar to the previous one but perhaps this is where many people disagree, and it is buying a house outside of your budget. Because many people think that any house is an asset, it is a great investment, it is an excellent opportunity to grow your wealth.
And therefore, practically the moment they find a house that they fall in love with, without consciously and suddenly technically analyzing the conditions of the house, and so on They probably feel good thinking, visualizing themselves living in it. (especially if it is a large and comfortable house, well located), and as we have always been told that a house is the best we can buy in life, it is the main purchase that we are going to make throughout our lives, Well, many people end up squeezing and borrowing too much from the bank to end up paying very high fees, which would not be compared to those of a rent.
Even sometimes paying more in interest per month than
Even sometimes paying more in interest per month than what rent would cost, both expenses lost and practically thrown away. And finally for an asset that is not always going to be valued, because many times people do not know is that if they buy a house for example of 100,000 dollars, and at 5 years, at 10 years they sell it for $ 130,000, 140,000 dollars, they say “The house was valued” … But if we compare that with inflation, probably the house was not valued but was left at zero, or suddenly it even lost a little value, that depends on the sector.
If the sector is booming and growing, and there is good potential, important buildings are being built or whatever; yes, there will be appreciation (They will also charge you in the form of taxes and others). But it is really to think very well that a house, being such a huge purchase, even much larger in amount than that of a car, must also be a very consciously planned thing and one of the traps that people fall, especially near their 30 years (we are talking about 25 to 35, probably where perhaps many begin to raise this idea).
This is where they are going to acquire an obligation, even for 20 or even 30 years in certain countries, so it is worth thinking about. I plan to make a video specifically comparing 2 scenarios, one for renting and one for buying, where renting can make money grow much more. If you are interested, tell me in the comments and I will do it soon.
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Trap 3 is to get yourself an expensive partner. As funny as it may sound, really a couple can be very thrifty, conscious with money, that they don’t waste on unnecessary things … Or it could be that they like luxuries, tastes, that they do not mind spending all the weather. And the safest thing is that regardless of whether the two have income, whether each has relative control of finances, that one ends up influencing the other. If you are a conscious person with money, financially intelligent, who knows how to handle it, who knows how to manage it, who has savings, who have investments, and so on And you consider.
That you can positively influence the financial life
That you can positively influence the financial life of the other person, it’s okay. Or if the other person in some way or another is already good with money, that will empower you and will propel you even more towards success. But if that person has a strong and negative character about money, it is almost likely that it will become a problem later, and in fact, money problems are very common one of the main reasons for breakups. Of course, it is never easy to identify these traits before committing to a person, but that is why suddenly before marriage there is a period of adaptation, of knowledge, of understanding, of coexistence in which one suddenly says: ” ok, I’m ready to commit, “and the financial part should be critical, even if everything else is fine.
Trap 4 is spending too much money eating out, in restaurants or coffee shops, or in places that sell things like ice cream and so on. The 2020 pandemic has taught us that practically everything we can do at home, cheaper, we can buy certain products in the supermarket. And you have to understand that restaurants, cafeterias, have profitability of 50%, sometimes even more, and now with the mandatory security measures that governments have imposed, where they have to assume more expenses and more costs, including those at home.
This is where these products are going to be even more expensive. If I can prepare many of them, at least most of the days, and not be spending every day at homes and on orders, the most likely thing is that it will save me such significant money that it truly has a positive impact on my finances. . But many people, especially young people, are addicted to ordering food all the time, and never preparing at home. Not bad of course, occasionally order a pizza, order lunch if you are very busy, especially if it is for work reasons or some other thing.
If you do not have to buy one of these pieces of equipment for cash
Yes, it is perfect and I do it occasionally, two, three times maybe a month. But some people spend up to 30% of their income solely on this and it is not worth it. And trap # 5 is getting into credit card debt for absolutely unnecessary things. Buy an iPhone at 24 installments with a credit card, at the most expensive interest rate that exists, just what for? To have the latest technology, it is assumed. And after those two years or 24 months, paying on credit, the phone is already obsolete, you have to sell it, change it for another, and this mentality that things don’t work and you have to constantly replace them. Or that you have to have the latest and that means getting into debt.
If you do not have to buy one of these pieces of equipment for cash, you should think about something cheaper because it is going out of your budget. Credit cards are definitely useful for many things if they are paid in one installment, but dragging interest at the maximum interest rate that exists, definitely does not make sense and is a total trap in which especially many young people fall, and then end up without being able to pay, reported in data credit, hating banks and credit cards.
Only because of that ignorance of not knowing how to handle an excellent product like this to leverage and grow, instead of to spend and to lose. We can implement many of these ideas at practically any age, and what’s more, the idea is that you simply acquire your criteria, so that you identify what are possible traps, what decisions I should make to improve and grow, what things They bring me closer as such to my ideal life, to the abundance I want to create, to the path of financial freedom that I want to achieve (assuming that is my goal), and what things took me away from that before.