Your twenties were all about trial and error. It was about figuring out the world around you and how you fit into it. Along the way you’ve made some mistakes, but it’s a part of growing up. Now, as you sit in your 30s, you realize the importance of getting things in order. Chances are you’ve got a job, a home, and maybe even a family to support and getting your finances in future has become a top priority. As the saying goes, with age comes maturity, and there’s no time like the present to turn things around. Here are a few suggestions on how to set yourself up for a great financial future in your thirties.
Start Living on a Budget
If you haven’t done so already, now is a good time to develop a household budget and live by it. Your budget should clearly identify what income you have compared to your expenses. Keeping a record of your spending each month does several things. It allows you to make informed financial decisions, keeps your bills paid timely, helps to boost savings, and assists you with eliminating wasteful spending.
Maybe in your 20’s you avoiding using items like coupons, coupon codes, and other discounts. I personally suffered from neglecting these items as well. Fast forward to my 30’s and I wish I had the money saving from utilizing these items. Whenever I go to Macy’s or the shopping mall, I make sure to print out and take my coupons with me. This includes searching out sites like Groupon for additional savings and deals as well. It takes a bit more of an effort of course, but it all pays off in the end.
Increase Your Emergency Savings
Financial emergencies pop up all the time. Failure to prepare leads to unnecessary stress and wasted money. The best way to prepare for things like the need for a new car, an unexpected bill, a home improvement repair, or another financial mishap would be to create an emergency savings account. Saving as much as 2-3 months of your monthly income would help to cover most crises.
You can review both checking and savings accounts to see who offers the best interest rates. You may find that some accounts like Kasasa checking offer more interest on balances than a savings account would. Determine which account is best to open and begin putting a weekly, bi-weekly, or monthly deposit into the account. Whether it’s $5 a week or $50, you could have several hundred dollars by the end of the year.
Start Saving for Retirement
In your 20s, you may not have been worried about how you’ll survive financially when you’re 65, but now is the time to think about it. Most Americans either don’t have a retirement account or don’t have enough saved for retirement ultimately forcing them to have to work well after they’ve left their full-time jobs. Ask your employer about your 401K or pension retirement account as some of them will match your deposit helping you to reach your savings goals faster. If you’re self-employed, or they don’t offer one, you can open a retirement account of your own.
Consider Other Streams of Income
Though you may have a great job that pays well, it can never hurt to have another stream of income. You never know when you might need additional funds and the less you must borrow, the better it is for you. There are ways to earn income from home that won’t disrupt your ability to do your regular job. A side hustle that is scalable, can easily be turned into a business later should you decide you want to leave your 9 to 5. It can also be a great way to boost your retirement and emergency savings funds.
Purchase Insurance Policies
Insurance is a necessity that is often overlooked when you’re younger, but it is a financial protection that everyone should have. Failing to have insurance could result in the need for you and/or your loved ones to pay thousands of dollars out of pocket to cover an array of complications. There are several types of insurance you should review in your thirties and this includes health, car, property, and life insurance. Compare companies and policies to determine which are the best solutions for your circumstances.
Adopt Better Spending Habits
Now that you’re in your 30s, being financially responsible should be a top priority. Recovering from financial setbacks later in life can prove a lot more difficult. Determine where your weaknesses lie and research ways to deal with it. For instance, if you have a habit of eating out, you should get creative with learning how to cook at home, so you don’t want to eat out as often. If you need help identifying your financial shortcomings, an advisor is recommended.
Your thirties are all about building your financial future. Now is the time to clean up any financial mistakes you may have made and move forward with a better plan of action. Each of the above-mentioned tips will help secure your finances and prepare you for a more promising future.
Join the Thousandaire newsletter
Subscribe to get our latest content by email.