A year like 2020 in which everything was affected by the economic and health crisis that the pandemic brought with it, has taught us that you are never ready enough to face the future. What 6 financial moves can you do in your 30’s that will ensure a better future?
Despite the fact that when you are 30 years old, retiring seems a long way off, the truth is that everything that happened this last year has shown us how important it is to take measures to have economic security in a world that has proven to be fickle and unreliable.
If when you were 20 it was ok to spend your first salaries and savings on things you enjoyed doing, when you turn 30 it’s time to start planning your future. Although it may seem that retirement is far away, time flies and it’ll be here before you notice it.
Here are some financial tips on the steps that should be taken at 30 to be happier later on.
1. Focus on a career, not a job
When you’re 20 having a job that pays for your expenses and the place where you live seems to be enough. When you turn 30 it’s important to understand it isn’t.
At this point in your life, you need to start concentrating on a career that will grow with you as time goes by. It is important to choose a career at something you are good at, but also something you enjoy doing. Being challenged by your job is what will keep you happy and motivated until retirement arrives.
2. Start budgeting differently
Your wants and desires are going to change from your 20’s to your 30’s so you’re going to want to start balancing your budget with those factors in mind. These new things could be getting married, starting a family, or opening up your own business: things that in your 20’s were not important. Luckily, you’re theoretically going to be making more money, so putting your new income toward the things that matter most for your life now and in the future should only be a matter of organizing your budget in a different way.
3. Get Insured
Under the current federal laws, everyone is required to have health insurance to hold proper coverage in the event of illness or injury, so this should be the very first step you take now that you’re in your 30’s.
After that, there are all kinds of ways to get insured that will depend on your personal needs, like homeowners' insurance, life insurance, car insurance, or renter’s insurance.
4. Fix Your Credit
Turning 30 means being responsible for your credit. Your credit score is something you need to take care of in order to be eligible for mortgages, loans, or credit cards. That’s why it makes sense to get your credit under control now. You should take the steps to start raising your score to a level that will make lenders want to extend your credit and other advantages.
5. Pay Off Your Debt
One look at your credit report can give you a pretty good idea of your current debt. That can include credit card balances or outstanding student loans that you need to start paying off before it becomes a problem.
Loans and mortgages represent an impact on the health of your finances, so you must talk to your lender and see what options you have to close those accounts as soon as possible.
6. Research ways to save
There are a lot of different ways of saving for the future, this is why it is important to start researching how you can put away enough money for the things you want to do in life and retirement.
The 401(k) is the first and most common method relied upon for accumulating wealth but, in addition, there are other types of saving accounts called Individual Retirement Accounts (IRAs) and Roth IRAs. They can be very beneficial in helping you reach your financial goals through saving.
Besides putting up these savings accounts for the future, having an emergency fund will help you deal with unexpected events and expenses that can appear in the short term.