The BIG 30. Have you wondered why people make such a huge deal about turning 30? Entering your 30s is as good as accomplishing a major milestone in life and indicates that you are officially a full-fledged responsible adult. This also means that you are now competent enough to manage wealth resourcefully.
As you know, when it comes to saving money, the earlier you start, the better. People often tend to save less in their 20s due to liabilities such as debts or student loans. Typically, most people in their 30s meet personal milestones like buying a house, getting married, purchasing a car and so on. However, with the growth & financial stability that your 30s bring, it is also the perfect time to strike a balance between sorting out liabilities & exploring assets that can help you enhance your financial growth and offer stability in the long run.
A good investment strategy along with a well structured budget will surely help you gain control over finances in your 30s.
Not having clear financial goals can lead to lack of funds when you need it the most. Do you want to buy a home in your 30s? Or perhaps purchase a car? Well, you need to align your current expenses with your financial goals in order to achieve them when you plan to. You could also get in touch with a certified wealth manager to help you devise an effective financial plan.
Be it buying a home or investing in a car, the lack of a dedicated budget is a pathway to temptation. Even in terms of daily expenses and utility costs, if there is a lack of financial boundaries, you will end up splurging your hard-earned money carelessly. Therefore, it is wise to be frugal with funds in your 30s and stick to a budget that accounts for all your expenses categorically.
Purchasing a home that you cannot really afford can be a huge drawback in your 30s. The reason being, you will also have to bear costs like utilities, furniture & maintenance, which can lead to debt or perhaps taking out another loan, which is not ideal if you are looking to increase your return on investment over time.
At this age, if you do not set aside a fixed percentage of money towards post-retirement or savings funds, think again. If you start now, compounding will yield exponential returns in the long run & help you live a smooth post-retirement life.
Racking up interest on your payments from pending loans, credit card bills, etc can lead to high interest rates, which can be detrimental to your financial health. Tend to high interest payments and tick them off first to reduce any unnecessary expenditure.
Not exploring financial instruments will keep you from growing your investment portfolio. You can explore stocks, high return mutual funds, or consult with wealth management companies to help you further diversify your finances.
Not having an emergency funds account can lead to a lack of money for rainy days. It can also save you from a debt or high interest situation in the future. This is why the best investment plan is one that also includes an emergency fund.
If you do not have life insurance or health insurance in place, it is essential that you do so immediately. It is likely for most people to start a family in their 30s, which is why investing in insurance is critical for you & your family's financial security.
Who wouldn’t love to splurge on an exotic trip overseas ever so often? While it is perfectly alright to do so occasionally, overspending & not having budget control will make it harder to save money. This can keep you from meeting your financial goals in the long term.
If you are utilizing your credit card to support this extravagant lifestyle, it will accumulate payments with a considerably high interest in the near future. You want to steer away from using your hard earned money to tend to high-interest amounts and repay more than you have spent. This can be incredibly draining for both your short-term & long-term finances.
Watch out for these money mistakes and you should be able to tackle financial matters swiftly. This is also the time when you will observe a shift in your mindset regarding wealth & the immense benefits of saving. The transition from overcoming liabilities to conquering assets is what your 30s should be all about.
For queries regarding investments, Dezerv is here to help you maximize your wealth under expert guidance and help you gain long-term returns. Besides that, the best you can do at any given point is to continue to enhance your knowledge of financial literacy & make investment choices wisely.