six money traps to avoid in your 30s you
see from a financial standpoint that
your 30s is your most important decade
of your financial life why is that now
you are past the 20s figure yourself out
because in your 20s you're trying to
find out okay what is the ideal career
for you well what should you focus on
what is your purpose you just probably
graduate from school now what's next so
you trying to figure yourself out in the
20s but in your 30s now you are a little
bit more mature right now you have a
little bit more experience but you're
still young enough to apply some of
these financial strategies that will
make a huge difference in your financial
life now assuming what I'm sharing with
you that like most people you have a
stable job meaning that you do not have
the ability to dramatically increase
your income unlike a high income skill
so I am sharing these lessons with you
assuming that you don't have a high
income skill that you have a stable job
like everybody else because with a high
income skill it means that you could
actually dramatically increase your
income so assuming you do not have the
ability to increase your income by ten
twenty thirty fifty or even a hundred
percent a year that's who this video is
for which is like most people and most
people it's not that they don't have the
ability to do so
to devour high income skill it's just
they don't know how right they don't
know that a height comes to exist and
they don't even understand the
possibilities and if you could avoid
some of these money traps in your 30s or
even in your 40s you would put yourself
in the position of financial success and
be able to provide a better future for
your family money trap number one buy a
house that you can't afford you see a
lot of times in your 30s most people
they are thinking about marriage they're
thinking about settling down they're
thinking about having kids or maybe you
already have kids and you're already
married and one of the mistakes that a
lot of people make is they want to keep
up with the Joneses right because their
friends own a certain house now they
want at least in the same neighborhood
or the same house and they want to
compare with other people so
they end up buying a house that they
actually can't afford now you have to
understand this that when it comes to
buying your primary residence your home
your house it is an expense that affects
your other expenses what do I mean by
that it means that if you move to a
certain neighborhood their house their
home affects your other expenses meaning
the more expensive your home is it comes
with your homeowner insurance your
utilities where you shop where your kids
go to school what kind of car do you
drive
it affects your other expenses so it's
not just the house itself but everything
else that goes with it
now that's very very important to
understand and that's why most people
when they buy a house they can't afford
suddenly now all the others of expenses
they go up dramatically and now they're
in debt I don't want that to happen to
you a while ago I made a video call
should you rent or should you only can
click here and check it out now in the
video I teach a rule called the 20% rule
what is the 20% rule so when it comes to
owning your home let's say you have a
net worth net worth of a million dollars
I believe you shouldn't spend more than
20% of our net worth on your primary
residence so your net worth it's a
million dollars you shouldn't spend more
than $200,000 on your primary residence
you may be thinking well yeah what if I
don't have a net worth I just have
income I don't I haven't built my net
worth yet what do I do the same twenty
rule applies so let's say you and your
husband or you or your wife together as
a household income you make ten thousand
dollars per month
ten thousand dollars per month then the
same twenty rule applies you shouldn't
spend more than two thousand dollars a
month on your house your primary
residence and I know that number is low
I know that number is low the reason is
low is because you want to be able to
live little bit more frugally with your
house so that you have more money to put
aside so it could save and invest for
long-term wealth versus if you make ten
thousand a month as a household and
you're spending forty percent four
thousand dollars a month on your primary
residence with all the other expenses
you do the numbers it's very difficult
to have anything left by the end of the
month does that make sense
comment below so that's the money trap
number one money trap number two and
that is to buy a car you can't afford
this kind of highs hand-in-hand with
money trap number one so buying a house
you can't afford buying a car that you
cannot afford I get it in your 30s now
you're making a little bit more money
chances are if you are in the corporate
world and you are stable and you want to
buy that car I like a new conscience as
everybody else right we know my 20s I
was getting a new car every year so I
understand where you are coming from but
financially speaking is not a very smart
decision it's not a very smart move
because by spending too much money on a
car you cannot afford anything else I
remember when I was making minimum wage
in a supermarket at a time I had a
co-worker he was driving a BMW and he
was paying $1,000 a month for the lease
for his BMW and he was only making
around $2,200 a month and I thought to
myself how could someone making $2,200 a
month spending thousand bucks a month on
a cop even on a BMW well it turns out he
can't afford it that's all he's got
right good but he wants to look cool
right you must look good right driving
the BMW around but actually it was very
very difficult I remember he was I was
sitting his car and he was thinking oh
my goodness am I gonna have enough money
to pay for the gas for the BMW now
that's not being smart again your car
payment your car expense is expensive
controls that affects other expenses the
more expensive your car the more
expensive your insurance the nicer your
car the more expensive gas that you have
to get they're more expensive your
maintenance just like my Bentley right
it costs a couple of thousand bucks just
to for oil change right that's what it
is when you drive a luxury car sports
car everything becomes more expensive so
that's money trap number two buying a
car that you can't afford money trap
number three not investing or
not investing enough now in your 30s you
still think you have a lot of time right
you still have 35 years before even
worry and think about retirement well
the truth is yes you have time but you
don't have a lot of time and most people
they wait too long and they think oh
I'll wait till I make more money than I
will invest no you want to take
advantage of the power of compound
interest you want to use it to
accumulate your wealth even if you put
aside a little bit of money every month
invest for the long term let's say for
example let's say you invest $10,000
right ten thousand dollars since 30
years old and let's say you invest your
investment produces 7% annual return
year in a year so seven percent every
year ten thousand dollars a year by the
time you get to 65 years old guess what
you would have one point four million
dollars one point four million dollars
however if you're wait till you are 40
years old so instead of thirty years old
forty years old by the time you retire
you would just have a little bit over
six hundred and fifty thousand dollars
so one point four million six hundred
fifty because you waited a decade
nothing else changes so time is your
friend if you use it wisely so don't
wait to invest invest and then wait
money trap number four not having a high
income skill see why do you need a high
income skill why do you need to actively
every year increase your income you have
to understand that with inflation and
cost of living going up wouldn't you
agree
every single year things are getting
more expensive right the dollar that
used to buy certain amount of things and
items that doll is getting thinner and
thinner every year so let's say the cost
of living is going up by let's say 3%
every single year so it means that if
your income stays the same year after
year it's the same amount you are
getting 3% poor every single year when
you take that out every 5-10 years 15
years you look at that this is why most
people struggle because their earning
abilities
right the way the the rate that the
income is growing is not as fast as
inflation so even though if you're
staying the same you're actually getting
behind so every single year in your 30s
you just strive to increase your income
every single year actively your active
income every single year you want to
strive to earn more now the challenge is
depends on your profession depends on
your job or the company you work for
that may may not be the case in fact
comment below if you haven't gotten a
pay raise or you haven't earned more
money for a number of years comment
below
right so that other people could see
that's just a fact in most industries
now am I talking about a side hustle
like what most people talk about I'm not
talking about a sigh hustle a
high-income skew is different from a
side hustle what is a high income skill
high income skill simply means income on
your own terms meaning you could
generate income where you want where you
want with whom you want it is not
industry dependent it is not location
dependent and it's not company dependent
so it doesn't matter if you work for
this in company or their company or this
industry or that industry with a high
income skill you can work in different
industry it is transferable this is why
it's not a job it is a skill set that
you offer to the marketplace in exchange
of money now what are some of those
skill sets I'm talking about could be
blogging it could be YouTube it could be
closing it could be digital marketing it
could be copywriting it could be
consulting whatever skills that you
could offer from the comfort of your own
home yeah it's beyond then your current
occupation I define that as high income
skill not having a high income skill
puts you in a huge disadvantage why
because now you're restrictive right
your earning potential there's a cap to
how much you could earn so if you want
to develop your high income SKU and you
just want to find out more about it
click the link below I'm gonna teach you
a couple of skill sets that I believe
are extremely powerful that also has
helped my students from all over the
to be able to earn more money in a
meaningful way right earn more money
than they could ever imagine and be able
to provide a better future for their
family so make sure you check it out
check out my masterclass money trap
number five not having financial goals I
am shocked
how many people I talked to actually
don't have financial goals when I asked
them ok so what are some of the
financial goals in the next twelve
months one like two years three years
five years from now most people is like
I don't know I guess I want to be more
successful I said do you want to be
making more money I said yeah I guess I
want to be making more money but it's
not very clearly defined so the first
thing you want to do in your 30s is make
sure that you have financial goals so
how much cash you want to save up in
your bank account how much savings do
you want to have what kind of
investments do you want to own how big
of a portfolio you want to have how much
money you want to be earning on a
monthly basis those should be clearly
defined see the problem is this most
people we are taught to climb that
ladder right a lot of success and they
say you know what I'm gonna go to school
I'm gonna get a certificate I'm gonna
get diploma I'm gonna get a degree and
that's great nothing wrong with going
back to school right for some maybe they
get a degree and then they go back they
want to get a an MBA a PhD and that's
fine but most people do would do that
because they are living up to other
people's expectations so the first
degree didn't get the the results that
they want didn't bring them to success
that they want but then they thought
well I guess the logical thing is I go
back and get a second one now if that's
what you want to do and that's your
vocational goals they want to be a
doctor lawyer accountant engineer that's
perfectly fine but what I notice is
people try to climb this ladder and they
realize actually the ladder is leaning
against the wrong wall yeah by the time
they get up to the letter and they look
down it's like this is not what I want
this is how did I end up here and now
they need to climb down back the ladder
right climb down and then they got to
find a different wall to lean against
and that waste is a lot of time versus
if you're clear of that's my goal my
financial goals is this and this and
this and you ask yourself is this the
right letter and
I'm leaning against the right wall isn't
that a smarter way of doing it so having
clarity of your financial goals I think
are extremely critical you want to avoid
that money trap of not having financial
goals because clarity is power and what
is power power is the ability to act
when your idea when your vision is clear
the path is easy it's only when it's
vacant and when you're not so sure when
your goals are then you're all over the
place right instead of being focused so
money travel number five not having
financial goals money trap number six
not being financially literate now it's
interesting in a school system we are
taught how to read how to listen how to
write write how to be literate in the
language of English but we were never
taught how to be financially literate
and this is why we have so many problems
financially out in the world in our
society because we're never taught some
of these things when I say financial
literacy I'm not talking about that you
need to be an accountant you need crunch
all the numbers but I am talking about
knowing some of the basics such as
budgeting being able to read your own
basic financial statements understanding
credit cards and and credit scores being
able to understand some of these basic
terms in terms of loans and interest
rates right 401k or some basic
investment if it's real estate if it's
index fund having an basic understanding
of how that works that's on talking
about I'm not asking you to be a
sophisticated investor unless that's
what you want to do but for most people
that's probably not doable for most but
at the very least you want to be able to
like it's like in English you don't need
to learn how to write a poetry write how
to write like a beautiful essay but it's
nice to know at least you know ABC to
zip right be able to understand the
basics you can use those words to to
combine it into a sentence that's all
I'm talking about when it comes to
financial literacy we just don't know an
ignorance cost us money right what you
don't know will hurt you
the books that you don't read will cost
you money so spend a little bit of time
even read a couple books on this topic
go to some blog posts read on it and
teach your kids don't be afraid to talk
about money
the dinner table don't be afraid to talk
about money with a spouse don't be
afraid to talk about money with your
kids educate them educate yourself right
give them that advantage give them a
heads up right compared to everybody
else so comment below out of these six
money traps which one you are going to
avoid in your doesn't matter if it's in
your 20s in your 30s or even in your 40s
and 50s which one you are going to avoid
comment below and don't forget to hit
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