We don’t know about you, but in our twenties we spent our time trying to figure ourselves out within our career decisions and our finances (not even saying we were 100% successful at it). We focused on developing our skills, trying to figure out what we wanted and do not want in a career. College degrees, certifications, and getting some good experience was just the beginning for us to help increase our earning potential. Now we know it’s time to get a little more serious about the direction we are going with our finances with all the skills we have acquired over the years. Here are 10 financial tips in your 30’s that we would like to share with you:
1. Increase your savings goals
Whether you are on track for retirement or you have nothing saved at all, it doesn’t hurt to decide to give yourself more of a financial cushion or to start saving money. If you haven’t saved as much as you have liked, your thirties is the best time to turn it around because we can still recover by retirement age. This goes for your emergency fund as well. Start building your savings worth of 3-6 months worth of monthly expenses today.
2. Advance your career
You may have dabbled in many different career fields or stayed true to one path before your thirties, but this is the time to start thinking about buckling down. Use all of the experience you’ve gained over the years and look towards advancement in the field that best excites you. Get additional certifications, designations, or anything that will put you a step above the rest of the competition. Your career is a huge dictator of your finances so it only makes sense.
3. Get serious about your credit score
If you got yourself in loads of unnecessary debt that has caused your credit score to decrease in your twenties, do all you can to turn your situation around. Try methods like the debt snowball or debt avalanche to get you out of debt faster so you could make steps to improve your credit score.
4. Take a serious look at your budget
If you never had a budget in your twenties, get serious about your money now. Start telling your money where to go by creating a budget instead of your money controlling you. Analyze every month where your money is going and find ways to do better with your spending so you could save more.
5. Pay off debt
Unsecured debt, auto loans, student loans, or any other kind of debt. Start getting more serious about a plan to eliminate all of this baggage. Imagine how much more we could save for our future if we didn’t have to continue to pay for yesterday. Owning a home free and clear doesn’t sound like a bad idea either and is possible before retirement age.
6. Prepare for home ownership
We believe in 15-year fixed mortgages, but in the event you get a 30-year fixed mortgage, getting a house in your thirties still places you on track to have it paid off before retirement age.
7. Get insured
Have a plan to financially protect your assets and your family for an untimely event. This could mean getting term life insurance if you don’t have any already. In addition, consider getting more coverage other than your state’s minimum requirements for auto insurance. Getting personally sued because you do not have enough coverage is real.
8. Get legal documents in order
Put together your Last Will in Testament and get it notarized, decide if a Trust is best for your situation, and/or have a Power of Attorney document in place just in case you become incapacitated, or mentally or physically incompetent. Life can happen.
9. Speak to a financial advisor
Having a retirement account that is on track is awesome at any age. Make sure you stay on track by having a financial advisor guide you. Consider as well, diversifying your investments other than your retirement needs if you haven’t already. 529 plans for your children and mutual funds for long-term savings goals are two great topics to speak to a financial advisor about at your appointment.
10. Understand it’s not too late
Your twenties may have been a trial and error phase in your life, so now it’s time to learn from those past decisions and build positively from them. If you made great financial decisions in your twenties, great. You’re ahead of the curve and keep going in the right direction. Whatever the case, stay positive with your finances and in your thirties let’s make it happen. If you consider these “10 Financial Tips In Your 30’s” listed above, you will be back on track in no time.