As you grow older, money mistakes can have bigger and bigger consequences. Financial mistakes can affect your ability to buy a home, put your kids through the university, advance your career or retire without worry. It can be hard to plan and know what you will want and need in the future. But, if you do map out a plan for your financial security, your future self will thank you. For your financial security, here are some common money mistakes you should avoid after you have turned 30. If you are younger than 30, good for you, if you are older, you can also still make adjustments.
Not having enough money saved
There’s an old saying: “If you make a lot, save a lot. If you make a little, still save a lot.” Whether you put your money in a savings account, an investment account that earns higher returns or you stash your cash under your mattress, it’s important to save. Do not make the mistake of saying, I earn so little, no matter what you earn, save, save and save.
Not buying insurance
Life happens! You just cannot wish it away! If you’re still in your 30s, life, health and property insurance may seem like unnecessary expenses. You’ll pay for those things when you get older, and when you need them. The truth is, while you’re statistically more likely to get seriously ill, develop a disability or die as you get older, misfortune can happen at any time in life. By the time you need insurance, it could be too late to get it. The younger you are when you purchase one of these policies, the lower your rates will be.
READ ALSO: Dominos’ dominance dwarfs Mr. Bigg’s, others
Not asking for a raise
Your boss may offer you a raise without prompting, but it’s not likely. If you think you’re not being paid your full value, the best way to get a raise is to ask for it. Don’t tell yourself the answer is no before you ask. Do take the time to do some research and prepare to improve your chances of getting the raise you deserve.
Relying on a single income source
The traditional career path with a 9-to-5 job is still the norm in most parts of the world, but having a second, third or even fourth stream of income could significantly bolster your savings. Whether you drive for Uber on the weekends, work as a program advisor for an online university, develop content for organisations or have plantations, your side hustle can help you save more money and increase your financial security if you get laid off from your full-time job or have an unexpected emergency expense.
READ ALSO: The politics, intrigues of Kogi APC guber primaries
Making emotional investment decisions
So, you’re saving and investing. Good for you. There’s still a huge money mistake that you can make: emotional investing. When the market goes down, you sell. When the market goes up, you buy. In the process, you lose out on potential gains. If you’re not about to retire, your best course is to leave your investments alone, even when stocks go down. In fact, buying when stock prices dip will give you more leverage when the market recovers, you may also take advantage of portfolios investment.
Refusal to use public transportation because you have a car
It is good to leave your house in the morning, get into your car and drive to the office. Yes, it is good. But, have you considered some disadvantages associated with this habit? I know of someone who despite having more than a car will come to the office via public transport. You might wonder if this is right. Hear his reasons; “if I drive, I end up spending more on buying fuel, wear and tear affect the car and it is not healthy for me in the long run, remember the several hours lost in the traffic jam. But when I take public transport, I trek some distance which is good for my health. When I am on the bus, I can be productive doing other things while the commercial bus driver worries about taking me to my destination, after all, I have paid him for his services! Also, it is cheaper for me,” he said. For me, it was an eye-opener. The car can be for family outings when taking a commercial bus is more expensive and tedious.