Without a doubt, the 30s can be safely called the ‘debt decade’. That said, the two major reasons why this happens is because this is the age when people have children as well as become homeowners.
Hence it bodes well that you take steps to work on reducing your debt during this decade. So, here are 4 ways that will help you do so:
#1: Watch your spending
There’s no other way but to watch your spending if you want to get ahead financially. No doubt that this will require one to make some tough choices about what they will have to spend on and what they won’t have to.
#2: Pay off credit card debt
There are a number of reasons why carrying a credit card balance is a bad idea. For one, you cut yourself off from a source of funds during an emergency but you also will have to pay unnecessary interest. Finally, you’ll be left exposed to a number of credit card company schemes that you can do without.
#3: Create an emergency fund
Building a reserve of cash just for that emergency that awaits you is, without a doubt, very necessary. Whether it is the loss of a job, illness, an accident or any other mishap, this fund will help you cope better than without one at all. Start with one week’s earnings for a start.
#4: Continue saving for retirement
With the pressure on your income in your 30s, you might want to stop saving money for retirement. Avoid this mistake at all costs if you place importance on a comfortable retirement.