14 Important Facts About Money That Are Worth Knowing at 30 to Avoid Regrets at 50
Some people manage to buy their own house and open their own business by the age of 30. Others, at the same age, are still trying to figure out how to earn decent money. There are certain obvious facts that can lead to prosperity, while others can lead to financial disaster.
Bright Side chose the most effective tips for you. They can be very useful when you are still young!
14. Children are expensive.
There is a very tricky stereotype that we should have children by the age of 20, 25, or 30. But speaking seriously, raising children is quite costly. That is why it is much better to have them when you are completely ready, and that includes your finances. So don't hurry, and prepare a "financial cushion" with your partner before your family gets bigger. Through these means, you'll be enjoying wonderful moments instead of thinking of money every single minute.
13. It's not embarrassing to ask for a promotion.
If you've worked in the same position for more than 3 years, the time has come to make your way up the career ladder. Asking for a promotion is the right step to improve your financial situation. That is why you shouldn't be shy about asking for a promotion and salary increase. At the same time, don't be afraid of bigger responsibilities and an increased workload. If you are refused a promotion several times, it's time to start thinking of changing your job or improving your professional skills.
12. It's more profitable to rent a house than buy it.
We like to think that investing in real estate is a great decision. But real estate is getting cheaper while you have to pay much more for a mortgage. So is it actually profitable?
Here is an illustrative example for you. Let's suppose that a house costs $100,000. Its rental is around $550 per month, making a yearly rental of $6,600.
Let's subtract that $6,600 from the general cost of the house. We would put the remaining amount into a savings account with 7% interest. Thus, our yearly income with it will be $6,752, which will be more than enough to pay for another year of rental.
If you invest your money more wisely, in funding, for example, it will bring you $9,764 at the end of the year. So you'll actually get a reasonable profit.
Apart from that, you don't need to spend money on maintenance, taxes, and furniture. That's why, before making a decision about whether to rent or to buy, count all the expenses and choose a more profitable option.
11. Invest in your health and education.
It's very hard to achieve success when you are not healthy. That is why it's important to take care of yourself, to have a vacation at least once a year, to sleep well, and to eat healthy food. A good education, in its turn, can open a lot of doors and erase borders.
10. Don't invest in something you don't know well.
Even if you want to get rich as soon as possible, you need to have a cold, sober, and calm mind when it comes to financial questions. By following your emotions and investing in dubious projects, you can lose a lot (if not all) of your money. It is always better to consult experts beforehand to have a sensible assessment of the project and its chances of becoming successful.
9. Don't borrow to pay old debts.
There is a very popular concept of taking on a new loan to repay an old one or to pay a debt to a person by borrowing from someone else. This is a vicious circle. It is much better not to have debts at all. But if it happens that you had a loan, it is better to stop yourself from buying something and save the money to repay the loan without further borrowing.
8. Stay connected with your friends, and meet new people.
They say that "A friend in court is better than a penny in the purse," and there is much truth in it. Sometimes connections are much more important than money. Perhaps you've faced situations that prove that saying.
7. It's more efficient to buy shoes and clothes of good quality.
Clothes of good quality will serve you much longer than cheap clothes. Therefore, it's more effective to spend money on durable things. And if you buy them during the sales, it's twice as effective. Try to make a list of necessary items, and buy them during sales. 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, they will make a lot of holes in it. Impulsive purchases are nothing but a need for happiness and pleasure. Find joy in something else instead of buying another blouse for "just $10."
5. Start saving money for old age now.
Today you are 20, and you'll be 30 before you know it. Time is fast and merciless. One moment, you are young; in the next moment, you have to pick up your grandchildren from kindergarten. By saving at least $20 to $50 a month, you will have quite a decent amount in your account when you are old, which will make you feel more confident.
4. Eat and cook at home.
Many of us prefer to eat in cafés and restaurants. Perhaps we are too lazy to cook at home, or maybe we mistakenly think that eating out is not so expensive. Visit grocery stores, and count how much you spend on your food. You'll see that cooking at home is much cheaper.
3. Put a certain part of your salary into a savings account to create a "financial cushion."
Life is unpredictable. Anything can happen that may demand a lot of money from you. But where will it come from? If you save money every month and put it into a savings account, you won't panic in an extreme situation because you have that financial support.
2. When it comes to financial expenses, have a similar mindset to your partner.
Partners should be unanimous in everything, including financial questions. If you try to save money and your partner continues to throw it to the wind, you'll never get rich. Talk to your partner, and develop a unanimous strategy for expenses. Set common financial goals, and achieve them. In order to have the proper motivation, try saving money for a vacation, for example.
1. Find a passive source of income.
It's good if you have a job which brings in enough money for you. But in our unstable world, it's always better to have different sources of income. That's why it's worth starting to think about investments.
What would you add to this list? Share your thoughts in the comments below.