For most people, turning 30 is a big deal. A milestone. We mostly live carefree in our 20s right after finishing our tertiary education and getting our first job, to mid-twenties when you start taking things a little bit seriously. If by any chance you have a family already, then you have more responsibilities.
This means that you have to start contemplating how you spend your money to secure your goals and your future. It’s great if you already embarked on this but if you have not yet started, no need to worry. You can start now.
Here are some things you could do before you turn 30.
- Bulk Up Emergency Savings
Having an emergency fund is probably the first thing you may want to have. We all know how unpredictable life can be. Wake up one morning and your employer decides to downsize meaning you are out of a job. You need to prepare for these kinds of eventualities.
Aim to have an all-expenses saving worth for 3 months. If you can, consider 6 or even 9 months especially if you have life-changing plans for the near future like quitting your day-time job.
It is important to remember not to touch these funds for any other financial requirements other than emergencies. So then, it’s best if it isn’t kept in your everyday account.
- Spend on yourself
Approaching 30 may come with a bit more financial flexibility. This is a good period to start making investments outside a bank. Call these non-financial investments. These investments could be anything; maybe you wanted to go for a once-in-a-lifetime vacation.
You could decide that it’s an appropriate time to go back to school, looking for professional certification or a degree that may bring in some returns down the road in terms of your earnings.
You could also reward yourself for an important milestone accomplished by getting yourself an expensive piece of jewellery. Whatever it is you will decide to do, start accumulating memories, lasting experiences or life needs during this stage.
- Get Your Retirement Game in Order
The best time to start saving for your retirement is RIGHT NOW. Retirement might have seemed far off while in your early 20s with so many things engaging your money, and it may be challenging to convince ourselves to prioritize a thing that is over 40 years in the future.
Starting to take care of retirement today by putting something, however small, aside is actually taking major control of your finances. You could take advantage of accounts that have an interest on the money saved and put your money in it.
- Give It Away
One of the things that make me feel like I am “adulting” is sharing my resources with causes that I care about. You don’t have to wait till you are a tycoon or a big mogul for you to start sharing with the less fortunate or advance a bit more on the social issues that you are passionate about.
Money donated not only does some good but for me, it makes me feel a lot more in control of my finances if I can create some space for these causes.
- Get health insurance
The current pandemic has shown everyone that we are unable to take the cost of health lightly. People who had no or insufficient cover during these moments must have been drained of all savings in case of the admission of a family member in a hospital. Hence, having a health insurance plan in place is vital to living a stress-free and secure life.
A lot of employers provide health cover; however, relying on it solely isn’t enough since the insurance cover is valid only until you stop working with the employer. So, an individual should get a personal health insurance policy for themselves and all their dependent family members.
- Set up a way to start tracking your expenses
As you get to 30, you probably should be having an idea of how much you get as income and how much you spend.
In addition to making sure that you are spending less than you are earning, you’ll want to get a picture of whether or not you are still on track with your budget and savings and retirement goals. You may also desire to know if there is more room to cut down spending and in turn, increasing your savings.
- Experiment with a side hustle
It is good to build wealth through less spending and saving, but the wealthiest and most successful people create multiple sources of income.
Earning more money is, a lot of the time, easier said than done but there are so many options out there to help us get more money. It is good to try being your own boss, rather than working so hard for your money.
- Pay down your debts
Debts like student loans can bog you down as you age. In fact, the monthly payments you make like interest or fines can pile up so much that it could prevent you from buying a new car or paying for mortgage.
Take down these debts as soon as possible before taking on more responsibilities. Go into 30 without that financial baggage. Get rid of that debt. This will help you to start things later in life
- Negotiate your salary
Companies try to operate at minimal expenses. So even if your employer notices your efficiency and hard work, they will not necessarily increase your salary. For you to get a raise, you have to ask for it.
There is a right way to go about this delicate issue. Make sure to sharpen your negotiation skills before you take on your boss.
Approaching 30 shouldn’t seem as scary as the world makes it sound. Once you have everything planned out, financially, then you can step into your 30s with confidence; like a boss.
You might get overwhelmed trying to figure out how to best manage your finances before getting to 30. After all, we aren’t taught this anywhere; neither at school nor college; not even at our workplace. However, if you try embarking on some if not all of these ideas, now, your journey might just get smoother.