Top 5 money mistakes to avoid in your 30s and 40s
Your 30s and 40s are critical years for building financial security.
1. Common pitfalls include lifestyle inflation or lifestyle creep – Spending more as you earn more.
2. Neglecting retirement savings – Thinking you have loads of time.
3. Overspending on homes and cars and taking on high interest debt.
4. Not having insurance to cover yourself and your family if you pass away.
5. Skipping estate planning is another mistake, leaving family unprepared.
By steering clear of these traps, you’ll build a solid financial foundation and ensure long-term peace of mind.
Interest rates and your money
We are currently in a downward interest rate cycle with the US driving the cycle and South Africa also following the trend.
So what does this mean for you?
1. Cheaper Loans and Mortgages/Bonds
2. Less returns on savings and bank account interest
3. Lower interest usually benefits equities and property
4. Reactivate economic activity but can lead to higher inflation
5. Debt repayment – consolidation of high interest debt into new lower interest options.
The last thing to remember is when the interest rates are low you should be wary of over leveraging yourself, because if interest rates increase again you might find yourself in a position where you are not able to repay the debt.
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