5 Ways to Get Financial Planning Right in Your Early 30s
If you’ve done everything else right, you may have put yourself in a good financial position. That means you have a steady and rewarding career. You’re not living with two or three roommates, and that you have more than five hundred dollars or so in your bank account. You might not be living large, but you can definitely work toward doing so eventually in the future — especially in your retirement age.
When you’re in your 30s, waiting around and spending like there’s no tomorrow should no longer be on your agenda. This is the right time for you to start thinking about how your money can work for you. And to make the right decisions about your financial future.
Here are five ways to do it:
1. Plan for a goal.
What do you envision for your retirement? Do you plan to travel far and wide? Do you want to own a cottage in some obscure village? Do you want to maintain a small store in some small community? Your goal will drive the financial plans you need to make. Start with one and you’ll pull the right resources.
2. Approach investments in a slow and steady manner.
One of the best investment options is to buy property. It’s tangible. It can increase in value. Also, you can live in it and build equity. But here’s the thing you need to remember when buying property: Buy what you can afford to pay off. You may be able to get a staggering amount to buy a sizeable property, but if the monthly payments are going to affect your monthly expenses, think twice.
What happens when you suddenly need to have your car fixed? What if you need to take a long trip to visit a sick parent? What if the company you’re working for suddenly folds? Think possible situations that may affect your mortgage payments, and then decide if it’s the right time to invest and apply for a loan.
3. Make it a habit.
Your savings should be automatic. If you allow a certain percent of your salary to go toward an investment, you’ll create an easier process. And prevent expenses you really do not need.
4. Always save for those rainy days.
Keep a separate fund for emergencies. From car repairs to redundancy, your emergency fund will prevent you from dipping into your savings.
5. Get insurance.
Another kind of emergency fund is your insurance. It could be whole life insurance, life annuity plan, critical illness insurance, or general insurance. The bottom line is things will happen while you try to prepare for your future. Insurance products allow you to minimize the damage of an unfortunate event.
And lastly, get some credible advice and strategies from a professional financial planner. You could start the small, less complex approaches to saving up but you may need an expert’s skill to truly make your money work for you.