September 22, 2017

4 Important Financial Steps You Should Take in Your 30s

If you’ve spent your twenties enjoying life and placed your finances on the back burner, now’s the time to make headway towards your future wealth. Your thirties are a great time to get started setting up a future wealth plan, to ensure you have enough money to do everything you ever dreamed of doing in the future.

4 Important Financial Steps

If you’ve spent your twenties enjoying life and placed your finances on the back burner, now’s the time to make headway towards your future wealth. Your thirties are a great time to get started setting up a future wealth plan, to ensure you have enough money to do everything you ever dreamed of doing in the future.

With some  financial planning in your thirties, you can make these your best years yet. These 4 things to do in your thirties will help you get on the right track with your finances.

1. Build an Emergency Fund

One of the first things to do is set up your emergency fund. Don’t let the term scare you. An emergency fund is the simplest way of covering yourself in case of an unexpected expense or loss of income. Having an emergency fund means you don’t need to rack up credit card debt when your car needs repairs or the washing machine breaks down.

2. Clear Your Credit Card Balance

If you pay your balance in full each month, pat yourself on the back and move to the next step. If not, keep reading. Credit card debt is dangerous. Especially if you’re not self-disciplined enough to clear your balance each month. It’s time to draw a line in the sand. Place yourself on a cash (or debit card) budget and stick to it. You now have an emergency fund, so you shouldn’t need to use your credit card at all.

3. To Buy or Not To Buy

If buying a house is part of your life plan, you need a strategy. The Australian dream of a house with a backyard is becoming more expensive by the day, so you either need a large deposit and income to match or you could downsize your expectations. A unit in an up-and-coming suburb might not be the perfect pad for dinner parties, but if it gets you on the property ladder, it’s worth considering.

If you decide not to buy, take steps to invest the money you aren’t spending on a deposit and mortgage payments.

4. Reunite Your Super

If you’ve worked in more than 1 job during your twenties (and who hasn’t?) you’ve likely got more than one super fund in your name. That means you’re paying multiple sets of fees and insurances. By combining your super into one fund, you’ll reduce fees and increase the amount of money working for you. Which ultimately means a more comfortable retirement. You can find your lost super here: https://www.ato.gov.au/Individuals/Super/Keeping-track-of-your-super/

By pulling together some funds to help you out in an emergency and clearing lingering debt from your twenties you’ll be on a strong footing. Higher salaries and reduced debt mean you can take strides towards financial freedom, either by buying a property, or investing in the share market. Whatever your preference, these 4 steps will get you there sooner.

With some careful planning, you can make your thirties your best years yet

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