Keeping track of your finances helps to take control of your situation. While in the 30s it feels more adult and this is the time to manage your finances efficiently. If you are making more money, and you have your whole life ahead of you, you can do everything you have ever wanted in life. It’s the right time to set your personal financial milestones preparing you for your future life. In this article, we look at some of the personal finance milestones you should meet in your 30s. Read below for more information:
Live without student debts
By the time you hit 30, you probably have been out of university or college for about ten years or so. That duration is too long to still carry a debt on your student loans. At your 30s, you need to be making a future for your children by investing, enjoying your life and not paying loans. It is important you come up with a $3500 annual plus interest channeled to your loans so that by the time you reach 30, you can begin to accumulate wealth instead of finding your way out of old debts.
Keep a good credit score
It’s important to know that not all debts are bad. During your 30s, you might want to get a loan so you can make the life you always wanted, maybe to buy a house. A difference of 0.5% on a 25-year mortgage can bring about more dollar in interest. For that reason, build your credit history as best as possible so that you find it easy to borrow money whenever there is a need. Good credit history builds a good report and credit score.
Contribute to the retirement plans
Saving money for your children’s college fees is a good idea, but you can opt out because there are loans, part-time jobs, and scholarships for them, focus on contributing to your retirement plans because none will do this for you. You can save without much strain by maxing out your retirement account yearly with your paycheck money. Make your contributions automatic so that you never get your hands or eyes on the money and you will surely hit it.
Understand basic investing
Investing becomes what you make it, either simple or complex. Returns will be linked to risks, equities, highly leveraged real estate and safe CDs; it is important to identify and understand what you want to do to be a successful investor. Start a good investment plan with as low as $1000. Be saving money and put it into the low-fee index funds then give it a few decades as you watch it grow. Expand your portfolio and stabilize your risks as you acquire more knowledge on investing.
Start an investment portfolio
Once you set your emergency fund, don’t let any extra cash mass up in your account. Alternatively, make an investment with that money so that it grows rapidly to give you better chances of meeting your target in the 30s. Maybe you are not sure of where to invest the money, but creating a portfolio gives your savings more room to grow until you are prepared to use the funds. However, having goals and milestones in your plan helps you to decide how the funds are supposed to be invested. The 30s is the best time to begin creating your wealth outside your house and save up for your retirement. It is better to set yourself up for financial stability at a young age, so you don’t struggle in the future.
Write your will and prepare all your legal documents
Most people only find writing their will a serious thing after they have got children. However, when you are building your wealth, savings, and assets, a will is equally important. It’s being said that if people so not clarify who their wealth go to when they die, the money may not go to the intended person or the person entitled to it legally. Financial advisers say that it is important to write a health care proxy explaining all your medical wishes and also mention who you want to make such decisions on your behalf. Everything you want to get done or achieve must be documented, and the paperwork reviewed after every five years.
The 30s is a time to grow up, think differently and enjoy life without any hindrance regarding money. Therefore, if you manage your money consciously, this time could be the decade to proclaim true financial independence
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.