You would probably agree with us that your teen years are the best time of your lives. This is the time of your life when you don’t have to worry about anything important in your life except for your studies. But as you grow older and enter the job world, the responsibility to manage your finances are put on your shoulder.
In your 20s when you have just joined your job, you can still get the chance to swing around. But as you hit the 30s, it’s time that you get serious with your finances. This is the age when you have to start thinking about your future. In other words, you need to start saving up for an easy retirement plan. No matter how much you hate it but at the end of the day, it is for your benefit only.
Some people are blessed with the skills to save money or manage their finances right. While most of them are reckless and have no sense of financial management. If you are about to hit your 30s, you are in the right place. In this article, we will suggest you with some golden rules of managing your finances in your 30s.
Ways to manage your finances in your 30s
By following the guidelines given below you can easily learn to manage your finances in the 30s. Taking control over your expenses and savings at the right time is very important and 30s seem to be the perfect age to get started. Here are some tips or guidelines for you to follow.
Set your spending priorities straight
Now that you are in your 30s you already know the things that are important and the things that are not. Also, you must have figured out the kind of lifestyle you want to lead. This basically means that should now stop spending on unnecessary stuff and start investing in the more important stuff. Setting your priorities doesn’t mean that you will stop spending money on fun things. What we mean is that you should not spend recklessly. You should spend on the things you absolutely need and save the rest for your future. When you see your savings growing you can then spend a bit on other unimportant stuff that you really like or want. Well, that’s how an adult manages their money. This way you will be able to save and also get things you desire.
Evaluate your financial progress
It’s been almost 7 to 8 years that you are working. The 30s seems to be the perfect time to evaluate your finances in order to know how far you have come. This will also help you figure out ways to rise further in the future. Also, you will be able to realize your mistakes as well.
This is the right time to get your insurance done. Buying health insurance and insurance for your family are the two most important tasks you should fulfill at this age. You may not realize the importance of it now but in the future, you will surely be benefitted from it.
No matter whether you are leading a healthy lifestyle or not, getting health insurance done is really important. This is mainly more important when you have a family to look after. You can get different plans to choose from.
Even providing your family with life insurance should be a part of your financial management plan. You need life insurance as long as your kids don’t grow up. You never know what may happen in the future and therefore, you should always stay prepared. When you have the options, why not avail them.
Get your will ready
You may think that 30s is a bit too early to make your will but it’s not. Future is never certain and therefore, it’s better to stay prepared. According to statistics, it has been found that majority of the people don’t draft their will while they are alive. This creates a lot of problems later on between the family members. If you want to avoid any such chaos in your family after you are gone, it is better to get your will ready at the earliest.
Maintain emergency funds
Saving is good but at the same time, you should also have an emergency fund. Every month you should save a bit from your salary in the emergency account. This fund is not only important for you but even for your family. For example, in case of any major health issue, you can rely on emergency funds at the time of your need. After all, you cannot be sure of your health. Today, you are fine but tomorrow you may fall ill.
Plan for the costs of children
If you are married and have kids to take care of then this is actually very important for you. But for the ones who are yet to get married are saved from this for the time being. Your kids are your biggest investment. From their studies to their well-being, you have to support everything. You need huge sums of money to invest in the bright future of your kids. Therefore, you need to be prepared for it. It is better for you to set a budget aside for your kids rather than facing troubles in the future.
Use credit cards wisely
Don’t forget that credit cards are not debit cards. Credit cards are a kind of short-term loan. The more you scratch your card, the more loan you will have to pay. Therefore, you should use your card very wisely. It is advised for you to use your credit card only when it is absolutely necessary.
So these are some of the tips you can follow in order to manage your finances in the 30s. If you don’t get serious with your finances by this age, it’s you who is going to suffer later on. Therefore, you should take it seriously so that you can enjoy your life after retirement.