Get Out Of “Bad Debt
All debt is not bad. When you borrow money with the intention of earning more money later, you are in a positive form of debt. This might be a home mortgage or a college debt.
The bad type of debt is when you use your high-interest rate credit cards to buy things that lose value over time like clothes, cars, and phones. And that’s the sort of debt that is costing you money.
Upgrade your emergency fund
That is money saved aside in case of an unwanted life event, such as losing your job. You should have enough savings to cover three to six months of living expenditures.
Vacations, entertainment, and eating out do not have to be included in an emergency fund. You may earn income on your emergency money by putting it in an easy-access savings account.
Avoid Lifestyle Inflation
You're probably making more money than you did in your 20. However, wage increases do not result in more money in your bank account. This is due to lifestyle inflation.
Try to keep your living standard from your 20s as much as possible in your 30s. The last thing you want is to work hard in your 30s and not be financially better off.
Overcome your fear of investing
Investing in the stock market can be a scary and overwhelming thing for some people. Keeping your money in your bank account feels much safer.
If we look at the US, an item that would have cost $1 in 1932 would now cost over $20 – just because of inflation. So invest in asset classes that go up in value over the long term.
Establish the habit of paying yourself first
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