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21 November 2014

Personal Finance Tips for 30-somethings

For an average person, their 20s is about work hard and party harder. But when you are in your 30s, it is important to get serious about your finances. Here is how you can go about it.

1. Eliminate Debt
In your 20s, you might accumulate a lot of debt. When you are in your 30s, it is important to get rid of the debt as quickly as you can.

Debt is the opposite of wealth. The money that you are spending paying off your debt, could instead be spent on long-term financial goals.

So get rid of debt as soon as possible. Live frugally for a few months to make extra debt payments and be financially independent.

2. Stay within Budget
Set a budget for your monthly expenses and stick to it no matter what.

Review your budget 2-3 times a year to make sure they are aligned with your long-term priorities.

In the 20s your priorities were different from what they will be now. You might not care as much about eating out or spending so much on the latest technology. Keep your budget in control by being aware of your needs and wants and adjusting your budget accordingly.

3. Make saving goals
In your 20s you probably saved for short term goals like travelling or buying a car. In your 30s, you need to save for long-term goals that will be bigger than what you have saved for before.

These could include- getting married, buying a house, saving for retirement, saving for your children's education.

Long-term goals require long-term planning. Estimate how much money you will need for each long-term goal and how much time you have to achieve them. Take inflation into account. Then systematically start saving for these goals. If you can't save for these goals in your current budget, then you might need to re-align your priorities by cutting other budget areas, find other income sources or postpone the goal.

We hope that this article was helpful in getting you thinking about your personal finance in your 30s. If you would like us to write more articles about a specific topic, let us know the comments.

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