In the twenties it is easy to rack up and spend money more worry-free, but in the thirties you may find that it is time to get your money in order. What mistakes does the thirties make in managing their finances and finances?
Too expensive a car
They get tired of cars at a fairly fast pace, and usually the purchase of a new car will tickle every few years. It’s a good idea to watch used cars instead of new ones, cars are known to lose dramatically every year.
The most affordable option would be to buy the car with cash in hand. However, a car is a costly purchase and few have enough savings to do so. Therefore, a car is often taken for a loan or leasing contract, for example. The car may not need to be the newest and finest, but sometimes a used car is enough.
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Understatement of insurance
In the thirties, life’s difficulties, such as serious illness or congestion, may not have hit the face, but awareness has certainly arisen. Many, therefore, have life, health and home insurance, which is a great way to get your finances in order. However, insurance coverage is another story, so it is worth reading through the insurance contract carefully and getting to know coverage.
Keep in mind that many credit cards include travel insurance, which can even be free. Premium credit cards may include, for example, cancer insurance. So don’t pay twice for insurance! Find the most suitable credit card from our comparison.
No talking about money before getting married
For most people talking about money seems awkward, and the subject is rarely featured on the first date. Some may even get married without having a serious discussion about what money is used for and what is not. Usually when a topic is brought up, both are already so far apart that it is harder to retreat when unexpected differences emerge.
In order to avoid a long-winded or guilty conversation, you might want to ask your partner what they would do with a million euros. An answer can reveal what he values in monetary matters and consider it an acceptable use of money. It is also up to each couple to decide how to manage their joint household in a relationship.
Too expensive a wedding
You do not necessarily have to pay a cent for actually getting married; the wedding party is the most expensive part. Finns spend an average of 10,000 euros on their wedding. However, you can arrange a wedding for half the price if you plan carefully and most of the preparation yourself.
Money is a choice, and money spent in one place is away from anything else. If looking like a wedding is an important personal step, you should start saving early. Some also take wedding loans to finance a wedding, but it is worth considering carefully.
First-child supplies in the wild
It is very common for new parents to get wild in the world of strollers, pacifiers, cradles and baby clothes when their first child arrives. It is good to raise a child in a stable and safe environment, but that does not mean putting hundreds of euros on the stroller. The noticeably expensive purchases are not really made for the child, but made for themselves by the parents.
The unexpected expenses with the child cannot be avoided. For example, baby insurance, life insurance for parents, or saving a child is a more profitable investment to provide a safe environment than most modern buggies.
Belief in the sufficiency of money later
People tend to postpone the dull things for the future, and most people find monetary matters quite dull. Optimism is a good attitude to life, but a bad principle in monetary matters. Indeed, many assume that they will make more in the future than they do now, which often justifies spending money today.
It is a good principle to save yourself first: after saving you can spend the rest without worrying. The most common mistake is spending money first and then saving if there is even anything left.