Partly because they have underpaid writers like me, who are given specific instructions to imitate content that they think is “cool.” After a while it all becomes one giant echo chamber, where we all end up explaining why you need to save $100,000 by age 35 in slightly different tones of alarmism. But cynicism aside, there’s a solid reason why finance gurus and scaminar-sellers like to target the 30 to 35 age group; and if you’re in this demographic, you’re pretty much the low-hanging fruit for them. Here’s why:
What is the significance of the 30 to 35 age group?
Here’s why you’re such a juicy target demographic for financial content:
- Most major financial decisions are made at 30 to 35
- All the financial rules suddenly change
- They want to get you before your defence mechanisms mature
- Your wage level finally became sufficient to feed the sharks
1. Most major financial decisions are made at 30 to 35
For the big majority of people, 30 to 35 is when huge financial commitments come into play. This is when you first learn how much it costs to have a baby, the price of a flat or condo, the monthly loan amounts if you want to buy a car, etc. Some Singaporeans start having to look after their aging parents, at around this time.
The average Singaporean male gets married between 30 to 31 years old, while the average Singaporean woman gets married between 29 to 30 years old. For Singaporean singles, 35 is the youngest age at which you can buy an HDB flat, so even lifelong singles tend to experience home ownership in this age range.
It’s kind of a jarring shock; one day you were trying to figure out how to save $300 for a long weekend in JB, and suddenly, time whizzes by and now you’re trying to figure out how to raise $350,000 for your flat (before renovations).
Even if you’re in the high-income bracket, the kind of numbers you’re seeing – for the first time – can feel surreal; a sort of numbing shock. It sort of feels like a heart attack, minus the possibility of dying because you’re not escaping that easily.
2. All the financial rules suddenly change
The finance gurus know you’re panicking, because (1) they’ve been there when they were younger, and (2) they know how frustrating it is when there’s no more clear advice.
Suddenly, all the old financial beliefs of the past go out the window. You should save your money in the bank and not touch it? Yeah, that’s what we tell children in Primary School. Now that you’re 30+, you get to learn about inflation rate risk.
You should avoid ever using loans, and pay off debts fast? Welcome to home ownership 101, where we explain why paying off your home loan too soon is going to wreck your finances. I’ve lost count of the number of shocked 30-year-old faces, when I explain to them that trying to pay off their home loan early results in penalty fees (though not for HDB loans).
If you’re in the higher-income bracket, this is also when you might get told to invest in things you were specifically told to stay away from before; like EM high-yield bonds, or inverse ETFs. Out of the blue, someone is now telling you why it’s a bad idea not to have some high-risk, overly-complex products in your portfolio.
This is when you have to unlearn all the money principles that were drilled into you when you were younger; and finance gurus can’t wait to take advantage of your absolute confusion. When you’re lost in the mess of vague new concepts, it’s much easier to sell you on the latest stupid meme-coin, or whatever collective investment rug-pull they’re planning.
3. They want to get you before your defence mechanisms mature
I am going to sound like a Boomer when I say this, but the Singaporeans born in my great-grandparents’ generation were the last to have practical defence mechanisms. They were dodging Japanese swords and race riots, whereas our survival mechanisms are mostly geared toward detecting low Netflix ratings, and passive-aggressive Instagram comments.
The fact is, most 30 to 35-year olds who grew up in well-regulated Singapore are not used to cons. There’s a reason why scams now constitute the bulk of crimes, And because you haven’t yet developed the cynicism and done-with-life attitude of the 40+ year old investor, you’re much more susceptible to the finance guru’s nonsense.
There’s a reason why all the self-help books written for 30 to 35-year olds sound the same (WHYING THE HOWS OF YOUR BUSINESS IN 30 DAYS). The gurus know that you’re new to adulting, seeking clarity, and don’t have the experience to see through their over-simplified cliches and emotionally (not mathematically) driven drek.
Bonus Single Digit Millionaire tip:
Look out for the gurus who try to explain fractional reserve banking or fiat currencies as if it’s a big scam / conspiracy, as if they’re among an elite few to figure it out. There’s a 90% chance that they’re about to tell you to “invest” in something stupid.
4. Your wage level finally became sufficient to feed the sharks
When you were in your 20’s, odds are you were at “entry level wage” (i.e., overworked and underpaid). But when most people get into their 30’s, that’s when they tend to move into more supervisory or management related roles; or are at least seasoned enough that they earn more (i.e. can threaten to leave, and the boss cares because experienced staff are harder to replace)
This is why the gurus like to target 30+ year olds instead of 20+ year olds: while the latter are seen as equally naive prey, most don’t earn enough to fund the gurus’ payday. The gurus who are focused on the 20+ age group also tend to be more aspirational, showing off the high life with the cars, watches, and condos they pretend to own.
Another big factor is your newfound financial leverage.
At 30 to 35, you can take out loans at the maximum loan tenure. Take, for instance, private bank home loans. To get full financing, your age plus the loan tenure can’t exceed the retirement age of 65.
So a 45 year old can take a 20-year loan, tops, whereas a 35 year old can take the full 25 to 30 year loan tenure with no issues.
So you can take out sizeable loans that banks would hesitate to give a 20+ year old, and you can stretch out repayments for longer than an older borrower. All this makes you a juicy target for gurus, who will try to convince you to borrow so you can “start your own business” or “invest” in their collective ventures.
(Or even just sign up for all the credit cards they want to sell you).
All this aside, there is a valuable lesson to be learned here
The main message here is “brace for potential scams if you’re 30 to 35”. But beyond that, it is true that this is a vital age range when it comes to personal finance.
This really is the point at which many crucial financial decisions appear; and it is the best time to put together a balanced, well-diversified portfolio. What you don’t need to do, however, is pay through the nose for some exotic, grey-area collective investment scheme. And most qualified financial planners, wealth managers, etc. will give you the basics without charging you for a seminar.
If you have questions or need help, you can also reach out to us at Single Digit Millionaire, where the only payment I ever get is a Milo at the coffee shop anyway.
