There’s no doubt that reaching your 30’s is a considerable landmark for us all. Although some of us may have started a family, a new career, or perhaps bought their first home, this decade of our life has a significant financial impact for the years to come. For the majority of people, our financial responsibilities have more than likely grown and juggling expenses and responsibilities with saving money for the future is harder than ever.
Most of us have dusted off the mistakes of our 20’s and learned a thing or two, however this decade of our lives is the time when we really need to mature and seriously consider our financial situation. We have to prioritise commitments, like our kid’s education and retirement savings, and take the most appropriate steps to procure a prosperous financial future for you and your loved ones. Life can most certainly get more complex in your 30’s, however by concentrating on a number of crucial aspects of your finances, your money doesn’t have to be nearly as complicated.
By making modest lifestyle alterations, you can noticeably enhance your financial situation now and in the decades to follow, so here are some personal financial goals that everybody in their 30’s should look into.
Broaden your emergency fund
Hopefully you created an emergency fund in 20’s, saving enough funds for a couple of months’ worth of expenditures. This is a fantastic goal to accomplish in your 20’s, but earning more money and having increased financial responsibilities in your 30’s means that your emergency fund becomes increasingly important. Financial experts highly recommend that individuals in their 30’s should have at least six to 12 months of living expenses saved in their emergency fund. Keep in mind, moving back in with your parents is much more challenging in your 30’s, especially if you’re a parent yourself.
Review your insurance coverage
Often, people’s circumstances change dramatically in their 30’s. You may have purchased a new house, a new vehicle, or have started a family, so it’s necessary that you assess your insurance policies so they’re up-to-date. It’s additionally a good idea to have a look at income protection and life insurance along with your current insurance policies. Even when your personal situation hasn’t changed in your 30’s, you should still assess your insurance coverage a couple of times a year to ensure you’re getting the best rates and premiums.
Grow your retirement savings.
Now is the time where you should start developing your retirement contributions, specifically if your workplace features a salary sacrifice plan. Making voluntary super contributions is a great way to grow your nest egg, so if you receive a pay increase, look into using the extra income towards your retirement savings. As well as this, if you begin a new career or job, always see to it that use the same super account which will substantially reduce fees and maximise your retirement growth.
Live well below your means.
When you find yourself having more financial responsibilities, you should examine your budget and make sure you’re living well below your means. The trick to boosting your wealth is to increase the gap between what you earn and what you spend. You’ll most likely have to reduce some expenses such as eating out or cable television subscriptions, but the more money you save, the quicker you’ll achieve your financial objectives. It’s also advisable to look at percentage of income saved as opposed to dollar amounts, as this makes it much easier to find out which expenses can be reduced to ensure you’re always saving more than you earn.
Seek financial help sooner rather than later.
If you’re finding it tough to make mortgage repayments on time or you’re plunging deeper into debt, seek financial assistance immediately. Commonly, the sooner you act, the more possibilities will be available to you. Many individuals suffer financially for several years before seeking help, and not only are they in a far worse position, but it is also completely unnecessary! There are many possibilities available for those in financial hardship, so if you require any financial support, reach out to Bankruptcy Experts Mackay on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsmackay.com.au