12 facts about money you should know by age 30

There are certain things you can do that will lead to financial success, but others will lead to financial disaster. If you want to sleep soundly at 50 because you practiced good money habits,

Saving money is an important part of any good financial strategy. Here are 12 facts about the money you should know by age 30.

 

Kids are expensive.

Whether it's coming from societal expectations, your overzealous parents, or somewhere deep within yourself, there's this nagging pressure to have kids by the time you're in your late 20s or early 30s, but frankly speaking, raising children is costly. It is costly and doesn't quite get the message across. How about this: raising Just one kid can drain your funds by up to a quarter of a million dollars. The Department of Agriculture has published a report revealing that a married couple with a middle-sized income will spend approximately two hundred thirty-three thousand six hundred ten dollars to raise just one child. That's about thirteen thousand dollars a year per kid. And this figure only covers expenditure from birth until they finish school, so if you want your young one to have a shot at a good future, plan on spending a whole lot more on a degree. That's why it's much better to have kids not only when you're emotionally ready, but also when you're financially ready. So don't give in to pressure from others and don't rush into it. Prepare a financial cushion with your partner before you decide to start a family. This way, your kid will have a happy, healthy life. instead of one full of financial instability and unpredictability. 

 

It's not embarrassing to ask for a promotion.

If you've been working in the same position for more than three years, the time has come to make your way up the career ladder. Asking for a promotion is the right step to improving your financial situation. That's why you shouldn't be shy about asking for a promotion or even just a raise. Just remember, if you ask for a promotion, expect more responsibilities and an increased workload.

If you've been refused a promotion several times, it's time to start thinking about changing your job or improving your professional skills. By the way, here are some mistakes people make when they ask for a promotion. You don't want to hurt your chances. Do you make these blunders? Don't ask for too much all at once. You might think that you've waited long enough and now you're entitled to everything. Too many or too high demands will most likely just annoy your boss and get you nowhere. Don't assume that a promotion is a magic pill that'll immediately fix everything. This type of thinking only leads to disappointment. One step up the career ladder won't equal instant happiness or tonnes of wealth. Don't overshoot your target if you try to prove yourself to your boss by taking on their responsibilities.

They can get offended. If you want to avoid this, try to make your boss see that there are some personal benefits for them in your promotion. Make it look like a win-win situation. Of course, one of the most common mistakes you can easily avoid is choosing the wrong time and the wrong place to ask for a promotion schedule. Avoid meetings at the end of the day or right before lunch; otherwise, you'll have to deal with a hungry or tired person, and the decision will become more difficult.

 

It's more profitable to rent than to own. 

We like to think that investing in real estate is a great decision and the ultimate stamp of official adulthood, but real estate itself is getting cheaper. While mortgage rates are going up, does that sound very profitable to you? Here's an illustrative example. Let's say a house costs a hundred thousand dollars and renting it is around five hundred fifty dollars per month, which is six thousand six hundred dollars a year.

We would deduct that six thousand six hundred dollars from the overall cost of the house and put the remaining amount into a savings account with a seven percent interest rate, which would bring us six thousand seven hundred fifty-two dollars a year just in interest. If you invest your money more wisely, let's say in funds, you'll get nine thousand seven hundred sixty-four dollars at the end of the year. That's a reasonable profit, plus when you rent, you don't have to spend money on maintenance taxes and sometimes even on furniture. That's why, before deciding on whether to rent or own, you should count out all the expenses and choose the more profitable option. 

 

Invest in your health and education.

It's really hard to achieve success when you're not in the best shape. That's why it's important to take care of yourself health-wise. Get enough sleep and eat healthy foods. Education, in turn, can open a lot of doors and eliminate borders. You can start a course that will develop and improve your current professional skills or master an entirely new occupation. The sky's the limit.

 

Don't invest in something you don't know well.

Even if you want to get rich as soon as possible, don't worry. When it comes to financial matters, all you need to be is calm and collected. Giving in to strong emotions or impulses to invest in indubious projects can strip you of a lot, if not all, of your money. It's always better to consult the experts beforehand to have a sensible assessment of the project and its chances of becoming successful.

 

Don't borrow to pay off old debts. 

There's an old saying For good reason, that phrase is popular and has been stuck around for centuries; it's great advice. Don't take out a new loan to pay off an old one, and don't borrow money from a friend so that you can pay back another. It's a vicious cycle. It's much better to just be debt-free, but if you happen to take out a loan, it's better to stop yourself from buying something and save the money to repay the loan without more borrowing.

 

Keep in touch with old friends

keeping in touch with old friends and making new ones. A friend in court is better than a penny in the purse. There's another old saying with a lot of truth in it: personal relationships are much more important than money. Have you ever been in a situation where friendship trumped money? So, tell us about it in the comments. We'd love to know if you can relate.

 

Buy good quality shoes and clothes.

It's more efficient to buy good quality shoes and clothes. Yes, they do cost more, but nice quality clothes will serve you much longer than cheap ones. Therefore, it's more cost-effective to spend more money on durable things because you're not buying them again and again. If you buy them during sales, it's twice as effective. Try to make a list of things you need and buy them if they're on sale. Then you can save your money for an upcoming vacation and take care of your health.

 

Avoid impulse purchases

much joy and heart-racing excitement. As they cause impulse purchases, they are enemy number one. If you're on a tight budget, impulse shopping will punch holes right through it. They are nothing but a need for happiness and instant gratification. Find joy in something else. Start saving for retirement now, number five. You're 20 and you'll be 30 before you know it. Time is merciless. You're young, and the next thing you know, you're picking up your grandkids from kindergarten. If you save at least twenty to fifty dollars a month, you'll have a decent amount in your account when you're elderly. You'll see in no time that cooking at home is much cheaper. 

 

Start saving money for old age now.

Put part of your salary into a savings account for a rainy day. Life is unpredictable; anything can happen, and some things demand a lot of money from you. 

 

Be on the same page as your significant other

when it comes to finances. It's perfectly normal to have different tastes in music, movies, books, or whatever, but partners should be unanimous when it comes to financial issues. If you try to save money while your partner is always blowing it, you'll never reach any kind of level of prosperity. Talk to your partner and come up with a family budget. Set common financial goals and decide how you'll achieve them. If you're having problems staying motivated, try saving up some money for a vacation. For example, you've got to take care of your health and give yourself a rest.

 

Find a passive source of income.

It's good if you have a job that keeps the bills paid, but in our unstable world, it's always better to have different sources of income. That's why it's worth exploring the world of investments. Study the best ways to invest money and choose the one that suits you the most. It can be real estate, stocks, or bonds depending on how much you're willing to risk, but whatever you choose, it will provide a nice passive source of income that will help you get a little more security in your future. Maybe we've missed something. If so, add your advice on how to manage money more reasonably in the comment section. 

 

Conclusion

There's this nagging pressure to have kids by the time you're in your late 20s or early 30s. Just one child can drain your funds by up to a quarter of a million dollars. Don't give in to pressure from others and don't rush into it. Too many or too high demands will most likely just annoy your boss and get you nowhere. Don't assume that a promotion is a magic pill that'll immediately fix everything. Avoid meetings at the end of the day or right before lunch to avoid upsetting your boss. Don't invest in something you don't know well.

Don't take out a new loan to pay off an old one, and don't borrow money from a friend so that you can pay back another. Buying good-quality shoes and clothes are more cost-effective than buying cheap ones.