Fixing Your Financial Future in Your 30s
Are your thirties fast approaching? It’s time to tone down the partying and start planning your financial future.
So many people sadly reach their 30s without having given their future finances a second thought. Many of you will have been too busy having fun or starting families, to really give it much thought, which is understandable, but it can’t continue if you want to be financially secure as you get older. So, here are some tips that will help you increase your wealth now and in the long-term:
Start Contributing to a Pension
If you aren’t already, now is really the time to start thinking about paying into a pension plan, like the 401(k). This will ensure that you will have more than the minimum to scrape by on when you reach retirement age. Ideally, you should pay half of your current age as a percentage of your wage into a private pension fund, but you may want to pay more or less depending on your circumstances.
If you are already contributing to a plan, you may want to think about upping your monthly contribution to help you build a bigger retirement fund while you can.
Purchase a Home
If it’s something that’s possible for you right now, and you haven’t already, it could be the perfect time to visit Homesmart International and purchase your very first home. If you’re renting, you’re throwing away hundreds of dollars every month, but if you can get a mortgage, the payments you’ll make will be an investment in your future, whether you live in your first home forever, or you sell up to make a profit. Property is one of the safest ways to invest your cash if you choose wisely, and it will mean that you don’t have to keep moving around all the time, which isn’t ideal in your thirties.
Pay Off Debts
If you’ve spent your twenties as a shopaholic, and you’ve run up a few debts. As a result, you should start to think about seriously paying them off. Instead of just paying the minimum so that you don’t get into trouble with the credit card company, start paying as much as you can, targeting the most expensive debt first, until you are completely debt free (apart from your mortgage). It’ll give you a sense of peace and security that money really can’t buy!
Once you’ve got your debts under control, it’s time to work on your savings. If you haven’t already picked up the habit of saving, start small by paying $50 directly into a savings account each month. You can increase this amount slowly as you get used to saving and as your salary grows, and eventually, you will have a nice nest egg to see you through any rough patches you face in the future.
Cut the Excess
Now you’re in your thirties; it’s time to take a serious look at your finances, draw up a budget and get rid of the unnecessary. By giving up on pointless purchases, you’ll have more money to save, pay off debts and increase your future security. Of course, you can still treat yourself, just don’t throw vast sums away on designer bags or big beer tabs every week.
Do these five things, and you’ll be well on your way to a richer future.