If you have already reached your 30s — Congratulations! Probably your 20s were all about changes like graduating college and starting to work. You may have spent your 20s relentlessly building your own career. As a result of the hard work in our 20s, many of us would experience income increases in our careers.
Now your 30s are about to take you to the next level of life. You may start to consider accelerating your career, exploring the world or making a difference from life in your 20s. When your income grows, there are chances that you would indulge more than you may need and spend money on things that would not hold value. In order not to spend all of your hard-earned money for nothing, you should consider the ways how to manage your money. Good money management will definitely help to build up a more comfortable future for yourself.
It is always not too late to start. If you are doing it well from now on, in the future you will thank yourself for sure! Let’s learn more about how you should be spending your money in your 30s!
How to Use Money Smartly in Your 30s
1. Re-allocate Your Budget and Spend Strategically
It’s time to re-think your budget allocations. You may have spent as much as you want at present. However, when we grow older there is a need to keep in mind future expenses such as buying a property, accumulating a fund for starting a business, or marriage.
If the word “budget” makes you cringe a little, that’s OK. But by the time we reach our 30s, it’s important to master the financial basics — income and expenses. It is to know exactly where and how much our earnings are coming from, and exactly where they’re spent on. Strategic Spending means reviewing and aligning our money habits with our long and short-term priorities.
Actually, it is rather simple. First of all, you should review how you spend your money and the proportion you usually spend on each category. We do understand there are some necessary expenses for the ladies like skincare products and makeup products. Reconsidering your spending on consumer goods like expensive clothes, the latest gadgets or home decor products will help your money management. Instead, minimize part of these expenses and channel it to spare money to fulfill your financial goals.
2. Keep Track of Your Financial Progress
When we start our money management in our 30s, it sometimes means that we’re working toward bigger goals. Before we tackle those goals, the first thing we should do is to understand our situation in detail. After that, we evaluate the goals and break them down into smaller steps. The most important thing is to measure that progress regularly. If you’re in a relationship and aim for marriage, you may consider a monthly finance review with your significant half.
There are actually many tools that can help to make it much easier. Spending or investing app can help you to keep track of your spending. Periodically reviewing can make sure you are on the way to moving toward the goals.
3. Invest in Valuables
In the life stage of your 30s, it is a good time for you to start investing part of your money. Be it gold, luxury watches, stocks, or foreign currency that would hold values.
Of course, the most understandable one is to purchase financial products such as stocks. But if you are not studying enough, there are high chances of loss. There are some things with less risk. You may consider buying foreign currency. We may not consider it as a way of earning money but a way to eliminate risks. Besides, it will be very convenient for you if you like traveling around. You can purchase the currency in advance whenever the exchange rate is favorable. It is now very easy to do the current trading online. You can get the unique Forex automatic trading MT4 EA for free from this site.
If you really need to purchase material products no matter what to satisfy your desire of shopping, consider the products that hold value. For example, if you want a handbag, look for some brands that will still, to some extent, hold value in the secondary market.
4. Understand Your Insurance
As we age, there are possibilities of running in with some health issues, car trouble, or house-related issues that require using your insurance. That’s why it is important to know exactly how much you’re spending on insurance and what your plans cover, especially the compensation rates.
Especially if you are thinking of having children, it is a great time to review your available plans and understand it well for both you and your children’s future.
5. Grow your income
There are two main ways to build wealth: reducing expenses and increasing your income indeed. In your 30s, you have already built up years of experiences and accomplishments, it is time for a plan to grow your income.
For your job at present, try to build your negotiation skills to prepare for asking for a raise or promotion. You may build a specific plan or presentation about what you need to demonstrate to secure a raise in the future.
On the other hand, you may consider searching for a way for extra income. There are plenty of freelancing opportunities available that you may find online. For example, if you are good at designing or programming, you can easily find clients through some freelancer platforms.
6. Establish an Emergency Fund
When we come to our 30s, it is important to create assets instead of liabilities.
With years of working experience, it is very easy to secure credit. Try not to create liabilities for yourself that you would end up paying high interest for.
Savings is the next step after debt pay-down. In this rapidly changing world, you never know what will happen next. An emergency fund is now growingly important to deal with any unexpected life challenges you may face. If you are planning a major future purchase or unfortunately get laid off all of a sudden, a few thousand dollars of a spared fund can make you feel more secure and will be able to go a long way. It is said that up to six months of living expenses saved will be the best.