5 Money Mistakes Pinoys Had in Their 30’s

Most people, by the time they hit their thirties, want their lives to be stable in all aspects—relationships, profession, finances—because this is the time when they are most likely getting married and starting their own families. 

However, financial stability is sometimes difficult to accomplish and many people still commit major money mistakes at this point of their lives.

In this article, you will learn about five big money mistakes that Filipinos make during their thirties so you can avoid them when the time comes.

1. Sticking with short-term financial goals
Even before you turn thirty, your financial goals must already be focused on long-term needs like car and housing. You should start thinking about these things when you are still in your twenties to give you more time to save. 

You should also begin to save for your kids’ education, especially their college funds, even if you’re not married yet. Saving for your retirement is also a must when you reach your thirties. Thinking ahead will prevent future financial problems and will allow you to save less annually if you start as early as possible.

2. Getting excited over pre-approved credit card
A pre-approved credit card sounds exciting but it isn’t. It only means that the credit card company has done a basic credit check and found that your credit score has met their requirement. You still have to file for an application and can still be denied.

Also, though the issuer approves your application, you may be qualified under a shorter promo period or a higher interest rate. Because of these reasons, you should never readily accept a pre-approved credit card. Look around for better offers (even if you are not pre-approved) before you make a decision.

 
3. Unorganized savings
It is better if you create multiple savings accounts for different savings goals. You can have one account for emergencies, another for your dream vacation and another for a car or a house. By dividing your savings into different categories and accounts, it will be easier to keep track of your savings goals.

 
4. Competing with peers.
Thirty is a very important milestone in a person’s life. This is the time when you and your peers are buying houses, getting married, having kids and starting families of your own. 

This is also the time when the competition on whether who has the bigger house or the latest car model emerges. Never get yourself into this kind of competition because it will only drive you to spend more than what you actually need.

 
5. Acquiring too many personal loans 
Many people are enticed with the idea of personal loans because they are unsecured. This means that the lender cannot repossess a person’s property if he is unable to pay the debt.  

However, getting a personal loan may also be very impractical in some cases because they have varying interest rates and monthly installments depending on your age, income and the amount of money you want to borrow from the bank. (In addition, personal loans are usually for immediate monetary needs like paying debts and tuition fees. This only adds to the first money mistake discussed in this article: sticking with short-term financial goals.)

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