There’s no question that reaching your 30’s is a big milestone for everybody. Although some of us may have bought their first home, started a career, or even a family, this decade of our lives has a vital financial impact for the coming years. For many people, our financial commitments have probably grown and juggling expenses and responsibilities with saving money for the future is tougher than ever before.
A lot 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 should mature and seriously look into our financial situation. We need to prioritise commitments, like our children’s education and retirement savings, and take the most appropriate steps to procure a promising financial future for you and your family. Life can undeniably get more complicated in your 30’s, however by focusing on a few vital aspects of your finances, your money doesn’t have to be nearly as complicated.
By making small lifestyle changes, you can significantly improve your financial situation now and in the years to come, so here are some personal financial goals that everyone in their 30’s should take into consideration.
Increase your emergency fund
Hopefully you created an emergency fund in 20’s, saving enough cash for a couple of months’ worth of costs. This is a superb goal to reach in your 20’s, but earning more money and having increased financial obligations in your 30’s signifies that your emergency fund becomes significantly more important. Finance specialists stongly advise that people in their 30’s should have at least six to 12 months of living costs saved in their emergency fund. Just remember, moving back in with your parents is much more problematic in your 30’s, especially if you’re a parent yourself.
Examine your insurance policies
Normally, people’s circumstances change dramatically in their 30’s. You may have bought your first home, a new car, or have started a family, so it’s crucial that you review your insurance plans so they’re up-to-date. It’s likewise a clever idea to take a look at income protection and life insurance together with your existing insurance coverage. Even if your personal situation hasn’t changed in your 30’s, you should still review your insurance policies a couple of times a year to make sure you’re receiving the best rates and premiums.
Develop your retirement savings.
Now is the time where you should start strengthening your retirement contributions, especially if your employer offers a salary sacrifice plan. Making voluntary super contributions is a terrific way to grow your nest egg, so if you receive a pay increase, consider using the supplementary income towards your retirement savings. Along with this, if you begin a new job or career, always see to it that use the same super account which will substantially minimise costs and maximise your retirement growth.
Live well below your means.
When you find yourself having more financial commitments, you should assess your budget and make sure you’re living well below your means. The secret to improving your wealth is to increase the gap between what you earn and what you spend. You’ll quite likely need to reduce some expenses like eating out or cable TV subscriptions, but the more money you save, the faster you’ll accomplish your financial goals. It’s also recommended to look at percentage of income saved in lieu of dollar amounts, as this makes it a lot easier to identify 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 a challenge to meet mortgage repayments on time or you’re falling deeper into debt, seek financial assistance as soon as possible. Commonly, the sooner you act, the more possibilities will be available to you. Lots of folks suffer financially for years prior to seeking help, and not only are they in a far worse position, but it is also completely unnecessary! There are many choices available for those in financial distress, so if you need any financial assistance, talk with Bankruptcy Advice Perth on 1300 879 867, or visit our website for more information: Bankruptcy Perth