Welcome to your 30s! You may be getting older, but you’re also getting wiser; in fact, you’ve probably begun to really establish yourself in your career.
This means a bigger paycheck, better clothes, and possibly a few down payments on a house or car. It also means that it’s time to put your finances in order so that your 30s (and beyond) can be the best years of your life.
Moving forward, what should your 30s look like in terms of money goals?
1. Prioritize investing over saving
Having a savings account is good, especially if you want to keep your money in a place that’s easily accessible. However, being in your 30s is the best time to supercharge your net worth and make your money grow exponentially—but this isn’t going to happen if you just keep your money in a saving account.
It mostly comes down to how much interest your savings earn. A normal savings account only yields 0.25 percent annually, and this is provided that your account has the minimum amount to accrue interest.
If you want better gains, time to start investing! Take some of your savings and move it somewhere else like stocks, bonds, high-earning funds, and other investment areas.
2. Refine your money-saving strategy
Back in your 20s, it was okay to make a few hits and a ton of mistakes; after all, the early years are the perfect time for learning curves and experimentation.
Unfortunately, fun is almost over and it’s time to put your game face on when it comes to handling your money.
While most saving tips are geared toward setting a huge chunk of your salary aside, it’s time to trim your expenses by skimming off some regular purchases.
3. Upgrade your spending skills
Money goals aren’t always about savings; sometimes, becoming more adept in the art of spending can bring you one step closer to becoming a savings expert. This means wising up and comparing items not just based on price ,but also on the benefits that come with the purchase.
To begin your journey toward savvier shopping, use the wide array of tools available to you. Thinking of buying an item? Canvas prices on online shopping sites. Want the best protection for your vehicle? Compare prices on a car insurance comparison portal. Use technology to your advantage.
4. Use rewards-only credit cards
Credit cards are packed with loyalty programs like rewards and cash-backs, now is the perfect time to use their full potential. Once you’ve turned your card from a borrowing tool to a reward instrument, you’ll prevent unnecessary spending.
To use your credit card mostly for accumulating rewards, swipe all your purchases like bills and groceries to your card, just make sure that you pay them back in full month. Be mindful of your budget.
5. Have a fully liquid emergency fund
If you don’t have an emergency fund by now, then you definitely need one. They are useful in trying times like retrenchment, sudden hospitalizations, or other, well, emergencies. They also give you some financial freedom by hedging your risk.
“Having six months of cash in the bank gives you a bit of freedom to take some risks. Maybe you finally want to start that business you’ve been dreaming about or perhaps an opportunity comes up to travel for three months,” wrote Brett and Kate McKay on the Art of Manliness.
Your 30s may feel like a marathon that will never end. However, if you’ve set your goals and keep your head in the game, you’ll achieve them in no time—setting yourself up for success in your 40s, and beyond.