While the societal expectation may be that we should be full-on adults by the time we hit our 30’s, the reality is that turning 30 won’t mean we magically have everything figured out, especially when it comes to finances.
No age truly does. However, there are ways to prevent these financial problems from happeningーstarting with awareness so that we may steer clear of them.
I’d also bet a good many of those who use credit cards in their 20’s maxed them out at least once, made minimum payments, and potentially got themselves into credit card debt.
Once you’ve gotten your debt under control, learn ways that you can make credit cards work for you. Make a plan for what to spend money on and limit your credit card use to only what you can afford to pay monthly to prevent further debt accumulation.
I understand that our 30’s is the perfect time to finally invest in a house or a car, especially as we start settling down. The question is, are you really prepared for that commitment?
A good rule of thumb to follow is the 28/36 rule. This means that your mortgage should only be 28% of your monthly income, and your total debt repayment should only be 36% of your monthly income, including your mortgage.
I get it. Life is too short to hold back on the things that make you happy. However, it is not so short that you should sacrifice your financial stability for the sake of YOLO.