6 money traps to avoid during the 30s
Phil Town is an American Investor, motivational speaker, and author of two books on financial investment which also were his best sellers. Phil then went on to invest $1,000 of his own, and five years later he had grown it into $1.45 million using the strategy he had been taught.
After organizing whitewater rafting trips down the Colorado River and suffering an event of catastrophically turned down by the rough waters, Town decided he could do more than what he was doing. He then invested a thousand dollars of his own.
Five years later he had grown it into $1.45 million using the strategy he had been taught. His investment philosophy and spiritual personalization in finances make him a mentor for many to follow, including his teachings on traps to avoid in your 30s, listed below.
Overspending on cars
The point of buying a car is transportation. While you can buy a Jaguar for the fulfillment of that motive, one needs to keep in mind that a cheaper car will fulfill the same purpose. Sure, a fancy car will make you feel amazing. That, however, is a pleasure that will end eventually, in say, two weeks of buying the car.
A car will also lose 30 percent of your value of that car in the first year and half of it by the end of three years. By comparison, if you buy a car used for three years at about half the price and keep it in good condition, you’re going to have a much lower payment. People won’t be affected whether or not you’re buying a brand new car or one that’s three years old. However, what will get affected will be your finances, which shouldn’t be exhausted making little provisions for your financial future.
Buying a house out of your price range
Owning a home that increases in value is a great financial investment, however, “there’s a point of diminishing returns when you are funneling every dime on a mortgage on a home that you can’t really afford. That will leave one with no money for emergencies. It can leave a terrible burden on your budget for at least thirty years.
Instead, it can be a better idea to keep an eye on the local market and get a home in a decent neighborhood for a moderate price that you can handle. Buy a house around an appreciating residential real estate on a cheap price. Such houses can end up becoming the center of really good neighborhoods leading to them becoming great financial investments.
Spending too much on going out
This can be a major hit to a monthly income. When you have stepped into adult life, you leave the eating places you used to go to as a student.
“You would be shocked by the effect the little expenses can have dining out right restaurants.”
Now you decide to step up a little. However, you’re not liable to make that happen. While it’s good to spend on things you like and have a little entertainment every now and then, it’s always important to keep that in control and not let it take over what your budget can afford.