6 Essential Financial Tips for 30-Somethings
Here’s how to set your course for financial stability in this important time of life.
Many people in their 30s might have a lot of excuses for not maximizing financial planning, such as “I don’t have enough money right now to pay someone to manage it” or “my money is tied up taking care of my day to day debts and expenses, what’s to manage?”
But no matter your income or assets, your 30s are an ideal time to partner with a planner and get ahead of some long term goals and create strategies that will lead to financial security and building wealth.
Here are some key steps you can take while in your 30s to make sure you are managing your finances to help create the life of your dreams.
Re-evaluate your insurance.
As you add a spouse or children to your family, your insurance needs will change. You may need to budget for adding dependents to your health insurance, for example. Another issue to address is adding life insurance that will protect your dependents and cover the loss of your income should anything happen to you. The earlier you find and purchase a policy, the better, as premiums go up each year you delay purchase.
Grow your career.
The 20s are for establishing a career, and the 30s are for nurturing and reaching career goals. According to Forbes Magazine, the 30s are an ideal time to be constantly watching for opportunities—to take on new responsibility, learn marketable skills, feel out new positions. This way you’re growing and in touch with your market value and able to best ensure you’re earning what you’re worth.
Fatten your emergency fund.
In our thirties, our financial responsibility grows. Perhaps you’ve added a home mortgage or are now caring for children or aging parents. Your emergency fund should grow too. Emergencies such as medical expenses, job loss, or economic upheaval can and do happen, so make sure you have a savings of 3-6 months income set aside. To grow it, add an automatic deduction from your paycheck or checking account straight into a special savings account.
Find a budgeting system that works for you.
Whether it’s the good old cash/envelope system where you set aside cash each month for food, rent, fun, etc., a simple spreadsheet, or a sophisticated app like You Need a Budget, find a way to track what’s coming in and going out.
Commit to saving for retirement.
Most experts recommend 15% of your annual income going into a 401k or IRA, but this number depends on your situation. For example, a pension, employer match, or other potential forms of retirement income can lower the amount you need to contribute. However, the sooner you start saving, the more your money will grow through the power of compounded interest.
Find a fiduciary financial planning partner.
Fiduciary financial advisors are independent of large investment companies and manage client assets with the clients’ best financial interests in mind. Working with a planner lets you bring any questions that have a dollar amount attached to the table so you can budget, prioritize, plan, and build wealth. They’re there for you if you fall off your path and need help getting back on the road to financial abundance.
At Aspen Wealth we create lasting relationships and form lifelong partnerships to help you. Get in touch to see how we can help with your financial goals and dreams today.