How to Enter Your 30s with a Clean Financial Slate

Friday 11 April, 2014

 

Many people in their 20s often say things like “life is short”, “YOLO”, and many other made up juvenile phrases to excuse themselves from the responsibility of saving money and making wise investments.

 

According to a 2013 study by Barclays and charity pfeg (Personal Finance Education Group), people under 25 are showing worrying gaps in their financial knowledge relating to bank statements, overdrafts and interest on loans. So it’s no wonder that young people make some stupid mistakes during their early-mid twenties. Avoid these common issues by considering the following tips:

 

Be tight fisted with your money

Don't easily part with your money. Coffee, sodas, smoothies, fast food and vending machine treats can easily add up to $400 a month.

 

Think economically

When the going gets tough, the tough get frugal. Grab a ride to work, bring lunch, take the bus and do whatever you can to avoid breaking out your wallet.

 

Obtain and keep a good credit rating

The better your credit history, the more likely you are to be granted a loan with a competitive interest rate.

 

Choose the right flatmate

Sharing an apartment with a roommate saves thousands of dollars a year. But make sure you choose one who will pay the rent on time and be a helping hand, not a liability.

 

Keep your overheads low

Are you paying $25 per week on a gym membership you don't use? Or maybe you still have that subscription to that magazine you read 5 years ago. Many people waste money on subscriptions they rarely use and never cancel.

 

Lock money away

Set up a high interest savings account that rewards you if you don’t withdraw. Use a different bank for it and don't get a debit card.

 

Learn to cook

You don’t need to be Nigella to know your way around the kitchen. All you have to do is learn a few very basic cooking skills to make some simple meals that that can save you hundreds of dollars each week.

 

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