There’s no question that hitting your 30’s is a significant 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 lives has a vital financial impact for the coming years. For the majority of folks, our financial responsibilities have likely grown and accommodating bills and responsibilities with saving money for the future is more challenging than ever before.
Most of us have dusted off the mistakes of our 20’s and discovered a thing or two, however this decade of our lives is the time when we really have to mature and genuinely contemplate our financial situation. We have to prioritise commitments, such as our kid’s education and retirement balance, and take the most appropriate steps to procure a prosperous financial future for you and your loved ones. Life can certainly get more complicated in your 30’s, however by focusing on a couple of vital aspects of your finances, your money doesn’t have to be nearly as complicated.
By making slight lifestyle adjustments, you can drastically improve your financial situation now and in the decades ahead, so here are some personal financial goals that everyone in their 30’s should look at.
Grow your emergency fund
Ideally you created an emergency fund in 20’s, saving enough funds for a couple of months’ worth of costs. This is a superb goal to achieve in your 20’s, but earning more money and having increased financial obligations in your 30’s means that your emergency fund becomes increasingly important. Financial advisors advise that folks in their 30’s should have at least 6 to 12 months of living costs saved in their emergency fund. Just remember, moving back in with your parents is far more problematic 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 car, or have started a family, so it’s important that you review your insurance policies so they’re up-to-date. It’s also a clever idea to have a look at income protection and life insurance along with your existing insurance plans. Even if your personal situation hasn’t changed in your 30’s, you should nevertheless evaluate your insurance plans several times a year to make sure that you’re receiving the best rates and premiums.
Strengthen your retirement savings.
Now is the time where you should begin growing your retirement contributions, especially if your employer offers a salary sacrifice plan. Making voluntary super contributions is an excellent way to grow your nest egg, so if you receive a pay rise, look at using the supplementary income towards your retirement savings. In addition to this, if you begin a new career or job, always make certain that use the same super account which will markedly decrease fees and maximise your retirement growth.
Live well below your means.
When you find yourself having more financial commitments, you should inspect your budget and make sure you’re living well below your means. The trick to improving your wealth is to expand the gap between what you earn and what you spend. You’ll likely need to cut back on some expenses like eating out or cable television subscriptions, but the more money you save, the quicker you’ll reach 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 figure out which expenses can be lowered 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 make mortgage repayments on time or you’re plunging deeper into debt, seek financial assistance as soon as possible. Typically, the sooner you do something about it, the more options will be available to you. Many people suffer financially for many years before 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 turmoil, so if you need any financial assistance, call Bankruptcy Experts Hobart on 1300 795 575, or visit our website for more information: www.bankruptcyexpertshobart.com.au