Top 4 Financial Tips for People in Their 30’s
If you’re in your 30’s, you’re probably aware that most people your age have a variety of different things to deal with and different responsibilities. You’re probably well into your career and have an idea of what you want to do with the rest of your life, and with that comes a lot of hardships; most notably financial ones.
In your 30’s it is important to think about where your money is going, where you want it to be going, and what your financial goals are. For some, these thoughts can be intimidating and daunting, turning people off from planning their finances. However, if you are in your 30’s, considering your finances is more important now than it ever has been before.
How to Budget and Plan Your Finances in Your 30’s
It’s important to begin budgeting and planning your finances in your 30’s. Here are some of the top financial tips to keep in mind in your 30’s.
Prioritize Student Debt
If you graduated college with any sort of student debt, it’s important that you prioritize paying this off as soon as possible. Student debt can and will prevent you from doing things in life. Whether you want to buy a house, travel, or get a new car, student debt will prevent you from doing these things. If you don’t prioritize paying off student debt now, you will end up paying interest for many more years to come, further limiting what you can do.
Additionally, if you are still paying off student debt in your 30’s, consider refinancing them. You may be eligible for refinancing and this may allow you to pay back your debt in a manner that is more appropriate to your lifestyle. If paying back your student loans is not an option for you right now, make sure to at least pay the minimum requirement every month.
Think About What Your Priorities Are Right Now
At this point in your life, you should have a clear understanding of what your priorities are in life. Do you prioritize traveling over going out on the weekends? Are you saving to buy a home, or are you content living in an apartment? Do you spend frivolously or do you make it a point to budget?
Prioritizing your life will help you spend money on the things that are important to you, rather than the things that are simply wastes of money. A solution to finding out what you prioritize in life is to keep track of what you spend money on during the week. Once you see your weekly expenses written out, you will see where your priorities are at.
Make Some Future Plans
Though you don’t need to act on them the very second you make them, making future plans is an important financial tip for people in their 30’s. Future plans will not only give you goals, but they will also allow you to clearly see what you want in life and will prompt you to make them happen. Some common questions to ask yourself as you make these future plans include:
- Do you want kids?
- If you want kids, it’s worth your while to consider the expenses of becoming a parent and begin planning accordingly.
- Are you hoping to be a homeowner?
- It’s crucial to start saving now, even if its only a fraction of your paycheck.
- Do you want to stay in the line of work you’re in for the rest of your working career?
- If you aren’t thrilled in your current line of work, it’s important to recognize and change this now. If you wait too long, you will have a harder time starting a completely new career than if you make the change while you are still young.
Begin to Think About Your Retirement Years
Retirement may seem far out, and though it is in fact, many years away, it’s something to consider now and to start saving for. Saving for retirement now will allow you to not have to depend on social security and will allow you to invest more money into a fund now that will grow in the years to come. Often, people don’t start saving for retirement until they are well into their career; however, it’s important to start as soon as possible; even if it’s only a small amount every month.
Additionally, it’s important to think about life insurance, especially if you have children or are planning to have children in the future. A life insurance attorney pointed out that most people don’t think about life insurance policies until they are in their late forties and early fifties, and though purchasing a life insurance plan is always beneficial, the optimal age to purchase life insurance is around 35. This is because the premiums are low and most people in their 30’s have little to no health issues.
Making the Most of Your Money and Your 30’s
Though your 30’s can be a stressful time, they are also some of the most exciting years of your life. In order to get the most out of your 30’s, it’s important to stay on top of your finances and make smart money choices. Making the most out of your money in your 30’s will not only benefit you now but also and in the long run; all the while still allowing you to enjoy your adult life.
Bio: Veronica Baxter is a writer, blogger and legal assistant operating out of the greater Philadelphia area.