You Should Know Whether to Rent or Buy<\/h4>\n
Deciding whether to rent or buy a home is a critical decision every 30-year-old should consider. The choice between renting or buying<\/strong> a home is complex, with no universal answer, despite common advice like Uncle Bob\u2019s pro-property buying stance.<\/p>\n Both<\/em> renting and buying have their financial merits, depending on individual circumstances.<\/p>\n When thinking about buying, you need to assess everything from the housing market conditions<\/strong> (are prices in your area inflated?) to your long-term commitments<\/strong> in that location (are you planning to stay put?). You can explore more factors affecting this decision here<\/a>.<\/p>\n If you decide to buy, ensure you can manage the additional costs<\/strong> of homeownership, such as insurance, maintenance, renovations, and taxes.<\/p>\n Prepare an emergency fund<\/strong> to cover unexpected expenses, like sudden repairs or emergencies.<\/p>\n For renting, ensure that your rent and potential increases do not surpass 30%<\/a> of your net income<\/strong>, a widely accepted guideline for rental affordability.<\/p>\n While renting saves on many homeownership costs, it does not result in owning an asset<\/strong>.<\/p>\n Which is better?<\/strong><\/em> To understand which option might be more economically viable in the long term, consider using a rent vs buy calculator<\/a>.<\/p>\n Living paycheck to paycheck is a common scenario for many, often depicted in popular media as a normal part of young adult life \u2013 think Lena Dunham\u2019s Girls<\/em>.<\/p>\n However, existing from one paycheck to the next is far from ideal as you approach 30. It\u2019s all too easy to fall into the trap of using credit cards and payday loans for quick financial relief<\/strong>.<\/p>\n Emergency funds are essential because, as the saying goes, the only constant in life is change<\/em>. Life\u2019s unpredictability means that despite your best plans, things can go wrong and they often involve unexpected expenses.<\/p>\n Imagine your car breaking down at the worst possible time, suddenly developing allergies, or your dog needing urgent care after eating your hidden chocolate (poor Fido).<\/p>\n Start saving now. It\u2019s crucial to have your emergency funds in liquid form<\/strong> (easily accessible cash). If you haven\u2019t started an emergency fund yet, aim to save at least $1000 initially.<\/p>\n Debt, particularly student loans, is a common burden, with 7 out of 10 graduates carrying some form of debt post-graduation<\/a>. Credit card debt and the need for payday loans are also prevalent, both of which come with high interest rates.<\/p>\n The average credit card interest rate is around 15% according to Creditcards.com, while payday loans can have annual interest rates as high as 582% in some states like Idaho according to USA Today<\/a>.<\/p>\n The current financial system unfortunately makes it very costly for those less affluent to escape debt.<\/p>\n Finance expert Dave Ramsey<\/strong> recommends the debt snowball method<\/a>: start by clearing the smallest debt<\/strong> first and then move on to the next smallest, creating momentum as each balance is cleared.<\/p>\n For those actively working on their savings or debt repayment plans, it\u2019s wise to consider multiple sources of income. Welcome to the world of side hustles<\/em>, a vibrant part of the freelancer economy<\/a> that is currently thriving<\/a>.<\/p>\n The options for earning extra money are vast. You might need to take some time to focus on just one or two<\/strong> that fit your skills and interests. Opportunities vary from freelance writing to design, and even unique gigs like dog-walking or house-sitting.<\/p>\n Explore lists of side hustles that are easy and affordable to start (here\u2019s one list<\/a>). Identify a few that might work for you, then begin offering those services to people you know<\/strong>.<\/p>\n After a few months, evaluate and discontinue any side hustles that aren\u2019t profitable enough<\/strong>; concentrate on the ones that are successful. Improve your skills in these areas to potentially increase your rates.<\/p>\n Food is a basic necessity, yet the economics of preparing versus buying meals can vary. While the common advice is to cook at home, there are times when buying meals might be more economical<\/strong>.<\/p>\n Perform a cost analysis to see what\u2019s best for you. For example, if your side hustle earns $100 an hour and cooking takes 2 hours, it may be more sensible financially to earn $200 instead of saving on a meal<\/strong>.<\/p>\n However, for most people, cooking at home is generally more cost-effective. Buying pre-prepared meals can also include hidden health costs<\/strong> \u2013 such as increased risks of diabetes and heart disease due to unhealthy ingredients.<\/p>\n Adopt frugal cooking techniques<\/strong> like slow cooking, meal prepping, and a mainly vegetarian diet, which are easy to learn. BudgetBytes<\/a> offers great resources for starting.<\/p>\n Cooking in bulk can save significant time. Preparing multiple meals in a few hours and storing them for the week can free up more time for earning additional income, while still ensuring high-quality meals<\/strong>.<\/p>\n Is choosing a life partner also a financial decision? Absolutely. Money issues are a top reason for disputes among couples<\/strong> \u2013 a survey revealed that 70% of couples argue about money<\/a> more than other topics.<\/p>\n It\u2019s not advisable to end a relationship over financial issues like student loans or poor credit scores, but these are not factors to overlook. They can significantly influence your ability to achieve financial stability, start a family, or buy a home.<\/p>\n If you are in a relationship, it\u2019s essential to engage in a sincere and thorough discussion about finances<\/strong>, covering topics such as:<\/p>\n For advice on how to approach financial discussions<\/strong> with your partner, check out this resource: Handling Money Talks with Your Significant Other<\/a>.<\/p>\n As contributing members of society, we all have the duty to pay taxes. Avoiding taxes is not only illegal, but also ethically questionable as it impacts the nation\u2019s development.<\/p>\n While no one enjoys paying taxes<\/strong>, especially those critical of the tax system, we\u2019ve all benefited from previous generations\u2019 tax contributions. Whether it was attending public school, enjoying public parks, or driving on highways, these are all funded by taxes.<\/p>\n Paying taxes helps support future generations, but if you need further convincing on the importance of tax contributions, you can find more information here<\/a>. Additionally, here are some tips to simplify the tax filing process<\/a>.<\/p>\n .no-js #ref-block-post-22775 .ref-block__thumbnail { background-image: url(“https:\/\/assets.hongkiat.com\/uploads\/thumbs\/250×160\/freelancers-tax-tips.jpg”); }<\/p><\/div>\n \n\t\t\t\t\t\tWe’re not sure how it happened, but it’s already the end of the year. If you’re like most…\t\t\t\t\t\tRead more<\/span><\/p>\n<\/div>\n<\/div>\n Becoming an adult means realizing that following financial advice<\/a> is up to you; no one else will do it for you. There are no punishments or stern warnings to coerce you into making wiser financial decisions.<\/p>\n It may be a challenging path for some, especially those in environments that do not promote financial success. This is why it\u2019s called self<\/em>-improvement.<\/p>\n Remember: Money is a tool<\/strong>. Some may feel they are naturally not good with money, but this is a misconception. As humans, we excel at using tools. You can learn to manage your finances effectively. Now, it\u2019s time to take control and master your financial destiny.<\/p>\n .no-js #ref-block-post-26655 .ref-block__thumbnail { background-image: url(“https:\/\/assets.hongkiat.com\/uploads\/thumbs\/250×160\/advice-30s-to-younger-self.jpg”); }<\/p><\/div>\n \n\t\t\t\t\t\tI read an article that quoted Dropbox CEO Jeff Houston listing his 5 favorite job interview questions. One…\t\t\t\t\t\tRead more<\/span><\/p>\n<\/div>\n<\/div>\n The post Financial Tips: 8 Key Things to Know by Age 30<\/a> appeared first on Hongkiat<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" For many, the twenties are a time to enjoy life, often leading to adventurous but questionable financial choices. While the […]<\/p>\n","protected":false},"author":1,"featured_media":977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[],"_links":{"self":[{"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/posts\/1002"}],"collection":[{"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/comments?post=1002"}],"version-history":[{"count":3,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/posts\/1002\/revisions"}],"predecessor-version":[{"id":1009,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/posts\/1002\/revisions\/1009"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/media\/977"}],"wp:attachment":[{"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/media?parent=1002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/categories?post=1002"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/suimy.me\/index.php\/wp-json\/wp\/v2\/tags?post=1002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Considerations for Buying<\/h5>\n
![\"buying](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/buying-house.jpg\")
<\/span><\/span><\/figure>\nConsiderations for Renting<\/h5>\n
Breaking the Paycheck to Paycheck Cycle<\/h4>\n
What Can You Do About It?<\/strong><\/h5>\n
\n
Building an Emergency Fund<\/h4>\n
![\"emergency](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/emergency-saving.jpg\")
<\/span><\/span><\/figure>\nWhat Should You Do?<\/h5>\n
Managing Your Debt<\/h4>\n
![\"paying](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/paying-debt.jpg\")
<\/span><\/span><\/figure>\nWhat Should You Do?<\/h5>\n
Expanding Your Income Streams<\/h4>\n
![\"barista\"](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/barista.jpg\")
<\/span><\/span><\/figure>\nWhat Should You Do?<\/h5>\n
Preparing vs. Buying Meals<\/h4>\n
![\"cooking](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/cooking-at-home.jpg\")
<\/span><\/span><\/figure>\nWhat Should You Do?<\/h5>\n
Financial Considerations<\/h4>\n
What Should You Do?<\/h5>\n
![\"couple](\"http:\/\/suimy.me\/wp-content\/uploads\/2024\/05\/couple-managing-budget.jpg\")
<\/span><\/span><\/figure>\n\n
The Importance of Paying Taxes<\/h4>\n
What Should You Do?<\/h5>\n
5 End-of-Year Tax Tips for Freelancers<\/h4>\n
Conclusion<\/h4>\n
What Advice Would You Give Your Younger Self?<\/h4>\n