Your 30’s & your Finances

Life, they say, begins at 40 (or is it 30?). Typically, many people spend their 20s figuring out what to make out of life, experimenting, and trying to find out what makes their heart smile and their life more fulfilling. Most people begin making more permanent life decisions like having children, settling down on a place to live and nurture a family among other things in their 30s. As such it is important to make great decisions with your money. Whether life begins at 30 or 40, you want spend it making wise money decisions and living your life comfortably overall.

To achieve a great life, being in a great place financially is important. The world is rife with a get-rich-quick schemes – invest X and earn Y in 10days. The path to financial freedom however lies in your ability to properly appropriate your funds and invest in the right channels. You don’t want to be that adult who still doesn’t have a grip on their finances in their 30’s.

Below are a few tips to put you in a better place financially in your 30s and beyond:

Spend with “sense” - Now that you have reached your 30’s and have a good idea of what the value of life is and what kind of lifestyle you would like to lead, you should now begin to avoid reckless spending as much as you can. Prioritize your spending. What are your wants, and what are your needs? What is important and what is not? Create a priority list and spend accordingly.

Consider increasing your earning power – How much do you earn and is it sufficient to sustain your lifestyle? If the amount you earn now does not sustain your lifestyle, then you may need to supplement with other source(s) of income. You can level up your income by learning in-demand soft skills, taking courses, starting an online business, investing, etc. Today’s world offers a lot of opportunities to create value and earn money in return. In your 30’s you have to do more to earn more.

Avoid debts – This is not saying that taking loans are bad. Loans can be taken to invest in a business, fund your studies, buy tangible assets, and more. However, loans taken to sponsor expensive lifestyles, latest gadgets, lavish weddings, etc should be avoided at all costs. You need to make sure that you are not living above your means. The best rule of thumb is that if you cannot afford anything then do not buy it.

Prepare for the future – Yes, in your 30s you’re young and old age looks like a long road ahead. But it does go by really fast! As you grow older, your ability to work may decrease, along with productivity and consequently your earning power. This is why you need to take tomorrow seriously today! Set up a retirement goal and have a target retirement savings amount that you can fund monthly, quarterly or yearly.

Invest/Save – Invest your money and diversify your portfolio. Learn about bonds, stocks, mutual funds, etc. You can begin by investing in our Money Market Fund, use our SaveIt to set up saving goals for yourself. Also, get a health plan to avoid paying hospital bills out of pocket.

Whatever your dreams are, to live your best life in your 30s is possible. Whether these are the years you have want to buy a house, go on vacations, or get married, be sure that with the right planning you can achieve all of your desires. Now that you know all this, it is time to get to work.