Just Hit 30? Here’s How to Plan Your Financial Future
Everyone has milestones in life.
For many people, reaching 30 is a milestone when they start thinking about their long-term goals and settling down. If you have been reckless with money in your 20s, it might be time to grow up and focus on your long-term goals in your 30s.
Whether you are thinking about saving up for your house, your dream car, building a solid credit score, or getting out of debt, you have to conduct a thorough assessment of your finances. Consider these tools for financial planning.
Homeowner?
If you haven’t yet bought your own house, it might be the right time to think about settling down. By the age of 30, most people have a solid career and a plan ahead, as well as a social circle.
Think about the money you are spending on rent each month, and consider whether or not you’d be better off owning your home. If you can be sure that you will stay in your job for the next few years and have your career planned out, you can think about getting a mortgage and investing in your property portfolio.
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Why a Retirement Plan Is Critical
Once you have a job that is stable and fulfills your career aspirations, you can start thinking about investing in a retirement plan. Your company might already have a plan that you can use to start saving for your retirement. The sooner you start, the better chance you will have to save enough money to earn a decent income in retirement.
A Tool For Emergencies
After age 30, your responsibilities may grow substantially. You will have to keep your own car running, do your own home improvements, and plan your vacations. Without a saving account, you are likely to face unexpected expenses that can make you end up in debt. Put some money aside regularly in a saving account, and make sure you are getting a reasonable interest rate, so you are motivated to save.
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Strategies For Managing Debt
By the time you hit 30, you might already have some outstanding credit. You need to act quickly to manage your debt, and to keep your total debt load from spiraling out of control. Your credit card payments are not likely to go down if you only make the minimum payments each month. Check out debtconsolidation.loans to find a more affordable way of paying off your credit card balance.
Make Smart Investments
It is also important that you make smart investments for the future. Whether you are planning on gaining a new qualification that will help you get a better paying job, or trying your hands at the stock market, you have to learn as much as you can from experts. Don’t gamble your hard earned money away, and always analyze the potential returns and investments.
It is never too early to start thinking about your financial future. In your 30s you should focus on the investments that will bring you the highest return over time. Try to invest in property, start a saving account for emergencies, and adopt a more responsible attitude towards money.
This post is for educational purposes only.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/
(you tube channel) kenboydstl
Image: Bullseye, Jeff Turner CC by 2.0