Money Management Strategies That Every 30-Something Should Know

There’s a lot going on in your 30s – you may be entering a new career, planning on starting a family, buying your first house, and so much more. It is the age you’ve left the confusion of your 20s and are convinced that you are indeed an adult! That also means that your decisions can greatly impact your future, especially financially.

You may have spent your 20s trying to figure it all out, which means you made some questionable financial choices. That’s okay! Your 30s give you a second chance at getting it right and taking the right steps to financial freedom and a secure financial future. So, are you ready to make smarter financial moves for a better future? Here are some tips to put you on the right path.

1. Diversify Your Investments

Perhaps your parents created an investment account for you in your 20s, or you took advantage of some investment opportunities that came your way. These are great, but you can do more for more financial success, freedom, and security! You can take advantage of several investment opportunities, and contrary to what you may think, the more investments you have, the more money you can make. Diversifying your investments lowers your risks as your money is spread across various assets and classes. It also allows you to enjoy the benefits of numerous industries. Moreover, investments serve as a way to store money safely for peace of mind and give you a solid foundation for achieving your financial goals. 

However, be sure that you make investment decisions. You should conduct thorough research about an asset or industry before you go ahead to invest. If necessary, speak to your financial advisor for professional advice before investing to avoid losing a substantial amount of money or falling into investment scams.

2. Implement a Retirement Plan

Retirement can be a time to enjoy the fruits of your labor as you relax in your dream house in your desired location, with no worries about your finances. Or, it could never exist as you continue to work to make ends meet. Truthfully, no one wants the latter. This is why retirement planning is an important financial move to make in your 30s. Your retirement may seem quite far off, but it is vital to start making plans now to ensure that you have a source of money to turn to when you eventually do— an investment in your future after work. Fortunately, several esteemed financial advisors can help you with your retirement planning, giving you valuable advice and guidance.

3. Create and Review Your Financial Goals

You can’t make smart financial moves if you do not have a plan in the first place. After all, what are you trying to achieve? This is where financial goals come in. Your financial goals are the short and long-term financial objectives you would want to achieve. By setting financial goals, you can take steps to put you on the right track to achieving them. For example, you may want to retire when you are 50. With this financial goal, you want to start a retirement fund to secure your financial future. So, whatever your goals are, it is vital that you create plans to fulfill them. You must review your goals occasionally to ensure that you are on track and implement new strategies, when needed, to achieve them.

It is also important that your financial goals are realistic and achievable, so keep this in mind. If not, you may have a hard time achieving them or risk making detrimental financial decisions. You can turn to an advisor or financial expert to help you set your goals and implement plans to bring you positive results.

4. Find Channels for Extra Sources of Income

The more money you have, the more comfortable your financial future is! Your job may be paying you a decent wage but finding an extra source of income would help you make more. One effective way of doing this is getting a side hustle. It may seem time-consuming, but one in three Americans have reported that their side hustles have helped them stay afloat and save money. There are many side hustle options to choose from, such as blogging, running a small business, or being an Uber or Lyft driver. The great thing about these jobs is that they offer flexibility, so you wouldn’t be too overwhelmed with balancing your gigs with your main job.

Another effective way of making extra income is by creating passive income channels, so keep this in mind. These income streams are similar to side hustles, except you would need minimal labor with passive income. A popular choice of passive income for many is investing in rental property. This is a great choice if you own a property you aren’t using right away. All you need are tenants and to manage the property. The rent you receive is your passive income. 

With extra money coming in, you generate more wealth, allowing you to easily fulfill your financial objectives. It also helps you stay afloat in your monthly expenses and serves as a source of emergency funds.

5. Stick to a Budget

A budget is truly the starting point of financial bliss and success. Every month, you are faced with several financial obligations such as rent, groceries, and bills. In addition to these payments, there are other ways you spend your money. At the end of it all, it seems your money’s all gone! Creating a budget helps you manage your money better as it gives you an overview of how you spend money. This knowledge can help you make further financial decisions, such as reducing costs to save more. For example, you may realize after budgeting that you spend too much on your grocery shopping. Therefore, you could consider shopping at a cheaper store or developing a more frugal lifestyle to save more money.

When creating a budget, you must be honest about your income and various expenses. This would help you better evaluate your financial situation and take the right steps. Sticking to your budget can be challenging, but it is a great way to stay on top of your financial affairs and get the best out of it.

6. Manage Your Debts

One of the problems many Americans face is debt. In 2021, financial experts found that about 80% of Americans dealt with huge sums of debt. Although a survey conducted in February 2022 showed that 41% of people plan on settling their debts, the question is; how? Debt can be problematic to your decision to be smarter about your finances. In your 30s, you may not be dealing with catastrophic debt as the average 30-something-year-old usually tries to pay off student loans or credit card debts. However, if these debts are mismanaged, they could prove detrimental to your financial future.

The best way to tackle and manage your debts is to acknowledge them. Do not put them off as they would only grow as the interest in them accumulates. While it is a great thing you are excited and eager to pay your debts, you would need a plan. Without a plan, you may pay off your debts but not have enough money for other obligations— putting you in a crisis that could incur debt. Therefore, it is advisable to strategize your payments, starting with the smaller payments. For larger amounts, you should break them down into smaller payable sums. It is also advisable to avoid further debt when you are in debt. Therefore, avoid making purchases on credit and set a lower limit on your credit card to avoid unnecessary spending. You should also make timely payments to avoid additional costs such as defaulters fees.

7. Take Advantage of Insurance Policies

Life is full of uncertainties, and as you go on trying to build a life for yourself in your 30s, it is vital that you find ways to keep your assets secure. This is why you need insurance, so keep this in mind. No matter the aspect of your life, insurance coverages aim to protect your interests and your money. For example, car insurance policies protect financial interests when your car is involved in an accident or experiences some faults. The same goes for health insurance which allows you to enjoy various health services at a discounted price, or home insurance which protects your home against theft or natural disasters. 

Therefore, while in your 30s, you should consider taking advantage of insurance policies to leverage the security of your assets, protect yourself and your family, and enjoy its financial benefits. However, be sure to find a reputable insurance company with affordable insurance policies with coverage suitable to your needs.

The financial decisions you make today can significantly impact your financial future. Therefore, you should consider following these seven tips to avoid barriers to your financial security and freedom. You should also explore additional tips to gain even more benefits, so keep this in mind.

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