When you hit your 30s, everything seems to become real all of a sudden. You’re suddenly a grown up with more responsibilities than you might feel ready for. You realize that everyone around you is settling down and becoming more aware and serious about their future, and you need to do the same. The choices you make during this time period, will affect you throughout your life. Try avoiding certain mistakes to ensure financial stability.
Talk About Finances with your Fiancé
Be open and honest with your partner about your finances. Make sure you know everything about their finances as well. If either of you is hiding any sort of debt from the other, it is going to come back to haunt your relationship sooner or later. It can be awkward to discuss finances. For these kinds of situations it might make sense to get someone to help you out. It could be a relative or a financial counsellor. Just be certain to have an open and honest dialogue with your partner and come up with a solution together. The longer you wait to have this conversation, the worse it can be for your relationship.
Home buying before you are ready
Buying a home is expensive and pretty much a life-long commitment. Do not buy a home unless you are absolutely ready to do so. If you have poor credit, consider waiting until your credit improves and then buying a home. If you’re buying a home, make sure you assume you will be living there for about 7 to 10 years. Figure out if continuing to rent is a better option for you or if you should consider buying.
Do not Neglect your Children’s Education
You might think that saving for your children’s education early on, is too much of a commitment. However, this is the best time to form the habit. From the time your child is born, consider opening an account where you can save money for it. Because of compound interest, the amount will keep increasing and by the time your child is ready to go to college, you could have saved a considerable amount of money.
Take Care of your Student Debts
When you graduate, you are given a 6 month grace period before you have to begin paying off your student loans. That 6 month grace period passes by really quickly and all of a sudden you are stuck spending hundreds of dollars a month on your student loan. The longer you wait to pay these loans, the more you will be paying for it eventually. Because of high interest rates, it is better to pay these loans off as fast as you possibly can. Your credit history can also be hit very hard because of this issue.