Our 30’s tend to be a time when we experience some of our most life-changing events.
We get married, have children, buy property and often move ahead in our careers.
But certified financial planner at Core Wealth Kirsty Scully says quite often it's in our thirties that we make financial mistakes that can eventually lead to difficulties.
The first mistake I see is the way many people have excessive spending. It is important to remember that huge fortunes are lost R1 at a time. So, it might not sound like a big deal to you when you spend R25 on a cup of coffee, but when I say to you that a cup of coffee 5 days a week is costing you R34 000 over 5 years, you realise that it is quite a lot of money.— Kirsty Scully, Certified Financial Planner, Core Wealth
The other concern is when I see people continually accessing their access bonds just for normal monthly expenses. If you are continually refinancing or taking cash out, it means that you are giving away ownership to the bank. It also costs you thousands in extra interest and fees.— Kirsty Scully, Certified Financial Planner, Core Wealth
Scully adds that one of the biggest mistakes people make is not planning for retirement.
The earlier you start to put money away for your retirement, the better. Even a little bit is better than nothing. You need to benefit from compound interest.— Kirsty Scully, Certified Financial Planner, Core Wealth
Scully also encourages people to have a stash of cash for emergencies.
An emergency fund is important to have for those unplanned expenses which we all have from time to time. Whether it is an unexpected medical expense in the family, or a repair to your home, or your fridge breaks down or your car needs a new tyre, it is important that you have money that you can easily access.— Kirsty Scully, Certified Financial Planner, Core Wealth
Listen to Kirsty's top tips on avoiding financial trouble in your 30's:
Join Kirsty Scully on Late Nights with Sara-Jayne King every Tuesday at 11:30pm on Cape Talk