Financial obstacles to face before turning 30

December 13, 2013

You don't need to have your entire future planned, but you can make some wise decisions to set the foundation before you turn 30.

 

By Michelle Brohier
Entering the working world and handling the salary you receive can be overwhelming, and when you’re new to the concept of a wage; the salary looks like a bigger allowance for you to spend with.
But if you continue to have that mindset throughout the years, you may face serious money problems in future. While the way you handle your money is your prerogative, it still pays to deal with it properly while you’re young. You don’t need to have your entire future planned, but you can make some wise decisions to set the foundation before you turn 30.

Find yourself while finding money
Not everyone knows who they want to be, not even til their dying days sometimes. Being in your 20s often gives you the perfect time and circumstances to grow and learn about yourself no matter the path you take, as long as you are conscious of the decisions you’re making. But just because you’re keen on discovering who you are, that doesn’t mean money should take a back seat. You can still find yourself by taking on a job of your interest, or even a side job as you pursue your own passions. You should earn enough to let you live comfortably without struggling to pay for necessities.

Work on your student loans
Student loans are the bane of most young graduates’ existence as not everyone can pay them off in time to make way for home and car loans, but that doesn’t mean you should feel discouraged. Try to get ahead by paying more than the monthly minimum amount necessary as this helps stave off more interest from accumulating. Keep a tab on your loans and be sure that you are paying enough to cover more than the interest, or else you’ll be paying for your loan the rest of your life.

Maintain your EPF
When you get a job, make sure that the company you are working for is contributing a part of your salary to the Employment Provident Fund (EPF). There are a few young employees who do not see the importance of this fund as it eats into their full salary and they need all the money for their current needs. But with more people living to a ripe old age without a sufficient retirement pot, even a small contribution to this fund could be the security net you need for your future, so keep contributing as much as you can. Also ensure your employer is fulfilling his responsibility in contributing the requisite amount as well.

Work on your credit score
If you were a little credit happy in the past and you’re still trying to sort through your debt, now’s the time to fix those mistakes. It’s important to get your credit score in order as you’re going to need it for most financial plans you may have in the future.

Making an investment without your parents’ aid
Whether it’s a car or a house, if you have enough money to invest in something, go for it. The journey and process of making such large purchases on your own will be a good experience that teaches you to commit to your money and how to deal with necessary payments accordingly, and it’s an experience you can carry throughout your years. Do your research before making any investment to ensure the investment is legitimate; that the car you’re purchasing is in good shape or that the deal on the house really is a good one. Of course, it’s also vital that you are sure you can afford the mortgage, loan or any continuous payments you will be saddled with henceforth.

You may have made some financial mistakes along the way, but keep learning and keep growing. There may be a number of obstacles to face when you’re young and you may feel unprepared for them all, but tackling them head on will teach you what you need to know. So that when you turn 30, you can at least say you’ve gained enough experience to face the next phase of your life.

This was brought you by MICHELLE BROHIER from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.