Financial Red Flags Before Turning 30
Ahhh our 30s, meant for growing up and turning into a full-fledged adult. You’re probably more settled in your career, perhaps even in your personal life. You’re thinking of things that definitely weren’t on your mind in your 20s. Marriage? Buying a house? Life insurance? As we enter our 30s, we tend to want to establish better habits including our financial health.
Not switching credit cards and eliminating high interest rates
Now that you you’re most likely to have a career and not just a job, it’s important to take inventory of your credit cards. Back in your 20s, you probably took what you can get and your interest rate across the board is probably higher than it should be. Credit cards in general can have an interest higher than 20%, making them harder to pay off and consistently keeping you in a loop of debt. The credit card companies are there to make money of course, but that doesn’t mean you have to be the one funding them. Start researching various credit card offerings online and choose ones with low interest rate.
Miami accountants MOA Accounting suggest you to look for some that offer cash back, as well as a reward points system or travel and insurance benefits. Many of them will grand you thousands of points to get you on board. Think about whether you want to transfer debt from a previous card to this new one and consider your payment habits too. Do you prefer to carry a balance or pay off the entire thing every month? Just do a search for ‘best credit card for me’ online and read through the details.
One of the Financial Red Flags is not verifying your insurance
You probably already have all the insurance policies you need, from car to home to renter’s to life insurance. But do you routinely check rates? People tend to stay with the same insurance carrier for years and years, not comparing their rates and coverage with other providers that are coming onto the market or perhaps even competitors.
The big insurance companies such as Geico and Progressive tend to put out the most advertising so they’re top of mind with Americans. But there are plenty of smaller insurance companies out there, providing you same top notch coverage at a better price. It just takes a bit of research, phone calls, and maybe even getting a referral from a friend. The Miami accountant remind you that savings are definitely worth it.
Not having a retirement plan
You may just be in your early 30s and think 65 years old is so far away, but the truth is that if you don’t start saving now, you can be in trouble later. Most employers offer 401k plans as part of their benefits packages, which is not only a great way to ensure you’re putting money away, but also getting free money in a way. Many employers will match your contribution, which is a great motivator for your retirement plan. And if you’re self-employed, the Miami accountants suggest not using that as an excuse. You can still stash some savings in a tax-free IRA account. Contribute to it regularly for maximum savings.
It’s important to address these financial red flags in your 30s to ensure your financial health. For more assistance, call the Miami accountants at 305.868.7620