5 Money Management Practices You Need In Your 30s
If you are someone who has just entered the 30s club, give yourself a pat on the back for making it out of your 20s & into what is said to be the most pivotal decade of one’s life. This is the age where a lot of people are likely to engage in family planning, buy a new house, experiment with career changes, relocate to a new place, and so on.
Moreover, your 30s are a major financial crossroad that will map out the blueprint for your future finances. This is the best time to take complete control of money matters & start establishing a strong foundation for wealth creation. Check out our blog on how to make money in your 30s to get an insight into boosting your finances at this age.
Do you want to use this decade of your life to grow your wealth & make accurate investment choices that will be beneficial in the long run? If so, we have got just the right financial commandments you need to help you financially thrive in your 30s & beyond.
Here are 5 important money management tips to help you handle finances efficiently in your 30s:
1. Restructure your budget
You have probably heard of this many times through college or even in your late 20s. But in reality, how many people do you know that actually maintain & stick to a budget? Having a monthly or weekly budget to go by is incredibly helpful especially when you are looking to get your finances in order.
At this age, you should have a monthly investment plan in place that will help to boost your savings. Ensure to set aside at least 10% of your income as savings once you receive your salary for the month. Track your expenses & cut down on unnecessary splurging sprees. This will help you prioritize your goals and start building towards a financially abundant future.
2. Get rid of pending debt
Once you analyze your expenses & track your monthly costs, you will get a clear picture of your financial liabilities like pending loan repayments, debts, credit card dues, etc. It is a good idea to pay off high-interest payments like credit card bills as first priority.
It is best that you create a financial plan to help you clear all your pending loans and debt amount as soon as possible. This will give you the financial freedom to pursue other monetary goals like high-return investments or other suitable investment tools.
3. Diversify your investments
Maintaining a savings fund alone is not going to generate wealth. Irrespective of your income, aim to invest a part of your savings using financial tools that will help your money grow exponentially over time. It is an ideal time to tap into long-term investments like Public Provident Funds (PPF), shares, mutual funds, etc.
Diversifying your investments accurately can lead to profitable returns from multiple sources that could benefit you in both the short & long term. Spreading out your investments largely reduces the risk appetite, which is ultimately the goal when investing across a range of financial instruments.
4. Contribute to your retirement funds
This is another financial tip that you must have probably heard from your elders or finance experts & there is a reason for it. Creating a retirement fund & consistently contributing to it is one of the most helpful moves you can make to secure your finances post-retirement. The earlier you start building your retirement funds, the more secure your future will be.
Gold bonds, ULIPs, mutual funds, etc are some good financial tools to invest in to build a significantly large retirement fund. Additionally, you should also direct some money towards an emergency fund, something you can use in times of need without having to dip into your savings or retirement money.
5. Improve your credit score
It is important to do a yearly credit report check in order to identify any errors & get in touch with the credit bureau to rectify them on time. This is an important move to make in your 30s since buying a new house or refinancing a mortgage is perhaps one of your goals at this age. You may have to take out a loan to cover such costs, for which a good credit score is a must.
Your credit score will have a direct impact on the terms of your loan & the interest rate. In fact, a low credit score could also lead to loan rejections, which is why it is essential to rectify any mistakes & tidy up financially.
Managing your home finances while simultaneously exploring good investment options to boost your finances can be quite taxing. A misinformed decision or a small mistake could lead to you paying a heavy price in the future. Read this blog on 10 money mistakes you must avoid in your 30s to start building a financially secure future the right way.
The key is to spend less than you make & align your money requirements with returns in order to stay at the top of your financial game in your 30s.