Mistakes to avoid in your 30s

Having survived the budget-tight 20s, your 30s could present another set of exciting, but financially-challenging lifestyle changes.

Tumisang Ndlovu spoke to CrueInvest CEO Craig Torr about money mistakes to avoid in your 30s, on Money Talk on Mix 93.8 FM.

One of the most common money mistakes is having an unaffordable wedding.

“All too often we see young couples really overdoing it on that wedding, possibly where the parents are not in a financial position to assist to the extent that they would like to.”

He suggests being open and honest and having the relevant discussions in advance, involving whoever is paying for the wedding. “Communication and affordability: those would be the two important issues to take into consideration.”

Buying cars and property are also often on the agenda – two very different decisions, according to Torr.

“Property is very much a lifestyle decision: there’s a lot of emotion attached to it.

“We’d be more comfortable to stretch the budget on that one as opposed to the cars,” he says, explaining that cars are depreciating assets, that cost a considerable amount.

Then there are the smaller expenses. For many, eating out, grabbing a regular coffee, or buying cigarettes, adds up.

Be cognisant of those little dayto-day expenses that could be reduced by proper planning, for example, by making your own food, he says.

“Have a plan and save first: pay your future-self first.

“Make sure that you are saving enough and then there’s less stress on what you do with what is left over.”

This is easier if you have a compulsory pension fund, for instance.

Delaying paying yourself first and saving for your future compounds the problem.

“Financial literacy is about trying to ensure that people make [fewer] mistakes. Those mistakes are mostly made because of instant gratification.

“If you have your savings taken care of, if you have your risk taken care of and your life and disability cover in place, then the negative implication of [ununwise] spend is to a large degree mitigated,” says Torr. – Moneyweb

Make sure that you are saving enough and then there’s less stress on what you do with what is left over. Craig Torr CrueInvest CEO