Money Lessons: 6 money traps to avoid in your 30’s.

When you are fed up with the feeling of your bank account being in the red you realized it is time for you to learn about money and understand how capital really works. And let me tell you, what money lessons I discovered…

Your 30’s is the most important decade of financial life.

Why is that?

Because in your 20’s you try to figure yourself out.

You’re trying to find out what’s the ideal career for you? What is your purpose in life? What should you focus on? When you are in your 20’s you probably just graduate from school and wondering now, what’s next. key driver booster 5.1

Now in you 30’s you are a little bit more mature. license key data recovery pro

By now, you have a little bit more experienced, but you’re still young filehippo idm 6.28 enough to apply some of these financial strategies that will make a huge difference in the future of your finance.

Now, I’m sharing this with you pretending that like most people, you have a stable job. It means that you don’t have the ability to increase your income drastically unlike any other high-income skill.

So I presume you have zero high income skills.

It’s not that most people don’t have the ability to do it, it’s just that they just don’t know that high-income skill exists so they do not understand their possibilities.

If you could avoid some of sony vegas 10.0 serial number these money traps in your 30’s, or even in your 40’s, you’ll put yourself in a position of financial success. Let’s see what traps to avoid.

Money Lessons #1: Buy a house you can’t afford.

This is a very common trap that a lot of people fall into. I see a lot of my friends or people around me thinking about marriage, having kids and settle down somewhere. Maybe you’re already married and have kids as well.

The mistake that a lot of people make, is that they try to keep up with the joneses, right! They want to keep up appearances.

Maybe their friends own a certain house, now they want a lease in the same area or the same house. They want to compare with other people.

They end up buying a house that they simply can’t afford.

You must understand that when it comes to your primary residence, your house: It is an expense that affects your other expenses.

It means that if you move to a certain place the house will affect other expenses as well.

The home insurance, your tier lease, where you shop or where you kids go to school, or what kind of car do you drive, all of these expenses should be taken into consideration. It does not seem obvious, I know. adobe illustrator cs6 crack

This point is essential to understand.

That’s what happens when most people who buy a house they can’t afford, suddenly all the other expenses increase significantly, and now they are in debt.

I don’t want that happen to you.

Now, to avoid that, you can use the 20% rule. When it comes to owning a home, if you have a net worth of $1 million, you shouldn’t spend more than 20% of net worth on your primary residence. I learned these tricks from Dan Lok.

In this case, you shouldn’t spend more than $200 000 on your residence.

If you don’t have a net worth yet? The same 20% rule applies.

Let’s say you are making $10 000/month.

You should only spend $2 000/month on your residence. Yeah, it’s a small amount, I agree. And the reason is that you want to be able to be a little bit more prudent with your house to allow you to save and invest in LONG-TERM-WEALTH.

Does that make sense? Let me know your thoughts in the comment section below.

Money Lessons #2: Buy a car you can’t afford.

This trap is very similar to #1.

Chance are, you have a stable situation in the corporate world, you’re making a little bit more money and you want to buy that car.

But financially, it is not a smart move. By spending too much money on a car, you can’t afford anything else.

It’s okay! You want to look cool, I get it.

You want to be attractive with your BMW around right? But it turns out to be that you find it difficult to pay for your gas. That’s not being smart.

Again, your car expenses have control over other expenses.

The more expensive your car, the more expensive your insurance, the nicer your car is, the more expenses you’ll have to get on gas. Leave alone the maintenance.

So in the future, buy a car you can afford.

Money Lessons #3: Not Investing or Not Investing enough

In your 30’s you still think we have a lot of time. Yes, but not a lot.

Unfortunately, most people wait too long or wait until they have more money to invest. And it never happened.

You want to take advantage of the power of compounding Interest. Use it to accumulate your wealth. Even if you put aside money every month, invest for the long term.

Take this example:

Let’s say you’ve decided to invest $10 000 at 30 years old. Your investment turns out to produce a 7% annual return year in/year out. You will be seating on $1.4 Millions at 65 years old

Now if you wait ten more years before investing. You invest the same $10 000 but at 40 years old this time.

By the time you retire, you’ll just have a little over $650 000. Just because you wait a decade. Nothing else is different.

Listen, your time is your friend if you use it wisely.

Don’t wait to invest. Invest and then wait.

Money Lessons #4: Not Having A High Income Skill

Why do you need a high income skill?

Why do you need to actually increase your income every year?

Well, it’s because of the inflation. Cost of living are going up by 3% every year. It means if your income stay the same year after year, you are getting 3% poorer every single year.

That’s why most people are struggling. Their earning abilities, the rate that their income is growing is not as fast as inflation. Every single year in your 30’s you should strive to increase your income actively. Every single year.

It depends on your profession and who you work for, it may not be the case.

Now a high income skill is different from a side hustle.

What is a high income skill? High income skill only means income in your terms. You can generate income when you want, where you want and with who you want.

It is not industry dependent; not location dependent; not company dependent

With a high-income skill, you can work in different industries. It is transferable. This is why it is not a job, it is a skill set that you offer to the market place in exchange of money:

Some of those skill set could be, blogging, Video marketing, closing, digital marketing, copy-writing, consulting and many more. Whatever skills that you could offer from the comfort on your home, that is beyond your current occupation. I define that as High Income Skill.

Listen Not having a high income skill put you in a huge disadvantage, why?

Because now you’re restricted on your earning potential.

There is a cap to how much you could earn.

Want to develop your high-income skill? Learn more here.

Money Lessons #5: Not Having Financial Goals

Image by Alexander Stein from Pixabay

I’m still surprise how many people I talk to, don’t have financial goals.

When you ask them what are the financial goals in the next 12 months, 3 years, 5 or even 10 years from now, most people reply: “I don’t know, I guess wanna make a lot of money and be successful.” The problem here is a lack of clarity. Make sure to have your financial goals clearly define.

How much cash do you want to save up? What kind of investment do you want to own? How much money you wanna be making / months?

Your goals need to be clearly defined. Most people were taught how to climb the ladder of success. Yes, they go to school, they get their diploma, their degrees. That’s great nothing wrong with that.

The problem is most people are living up to other people expectation.

If that’s a vocation you choose, you want to be a doctor, a lawyer or a registered nurse that’s totally find.

What we can notice is people climbing the ladder on the wrong wall. By the time they get up in the ladder and they look down and say: “This is not what I want”.

Look, having clarity in your financial goals is extremely an extreme fundamental.


When you vision is clear, the path is easy.

Money Lessons #6: Not Being Financially Literate

In our system, we are taught how to read, how to write, how to be literate in your own language. However, we were never taught how to be financially literate.

This is why we have so many problem financially.

When I refer to financial literacy, it has nothing to do with accounting. I’m talking about the basics that you need to know about the numbers.

Such as budgeting, being able to read your own financial statement, understand the basics about credit cards and credit scores, terms like loans and interest rates, 401k, some basics of investment, if it’s real estate, index fund. We simply need to have a little understanding of these basic words.

That’s all I’m talking about. It’s like in English, you don’t need to be able to write poetry or a beautiful essay. But it’s nice to ABC to Z, being able to understand and combine them to make a sentence.

Look financial literacy, if you just don’t know about and ignore it, it cost you money. Just spend a little bit of time, read books on the topic, some Blogspot.

Read on it and teach your kids, don’t be afraid to talk about money at dinner. Educate yourself the people around you.

Now that you know the common mistakes people do when it comes to managing their finances, which one are you going to avoid?

#7 Not keeping track of your spending

Image by Steve Buissinne from Pixabay

By your 30s, you should be keeping notes on where your money is going.

“Mindless spending on a day-to-day basis adds up and can be the biggest destroyer of wealth over time,” says Kristin O’Keeffe Merrick, a financial advisor of O’Keeffe Financial Partners. “

Spending less than you make is the key to accumulating wealth.

It’s not easy, but it sure is simple.”

To avoid overspending, you first need to master your cash flow.

You can start by monitoring your spending habits over a 30-day period. Then, write down every purchase you made and the dollar you spent in a month. You’ll begin to notice where your money is going and where it’s possible to cut the losses.

You must understand how money comes in and out of your life.


It can be a little intimidating to start your own education about money and how it works. There’s certain traps that you must avoid if you want to create more wealth, like stop overspending on home, cars and lifestyle creeps.

Remember, you’ll need a high-income skill to increase your income over the years. Especially after the last crisis.
The reason so many people are building wealth today is because there are ordinary people learning high income skills and creating online businesses each and every day.

So I bet your next big burning question is “how do I create a high-income skill the right way?”

Follow a proven online marketing system that has all you need to get started, so go check it out here if you haven’t already.
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