If you’re in or approaching your 30’s – now is the time to prepare for a financially fit future. Being 30 today is very different from what it was for our parents. While they were often married with children by 25, we are settling down later and later – taking time to establish our careers and explore the world in our 20s.
This makes financial security potentially both easier and harder to achieve, because we have more time to establish our career, we’re less likely to stay in the same job, or to be on the property ladder. With that in mind we’ve put together our 10 top tips for becoming – and staying – financially secure to help you out.
1. Get your super sorted
Your 30s is the time to get serious about your super. If you’re like the majority of people your age, you probably spent your 20s switching jobs, and your super is probably all over the place, accruing fees and getting lost. Consider finding it – but don’t move it until you’ve spoken to a financial adviser about your financial goals, the best options for your super and your future. Different Supers have different benefits, with some offering life insurance, permanent disability insurance or income protection insurance.
2. Advance your career
You’ve built the skills in your 20s, now put those skills into practice and start moving towards those career goals.
3. Boost your retirement savings – save save save
Put as much money as you can away. It’s boring but increasing your retirement savings will help you so much in the long run. Research the savings accounts available to you. If you’re planning a family and don’t have one yet, your disposable income is probably at its highest. Use this to your advantage and work out a plan for saving for retirement.
4. Invest for the future
If you haven’t already, start thinking about your medium to long-term goals. Do you want to buy a holiday house in a few years? Do you want to have a career break and spend time travelling? Do you want to swap careers or go back to studying? When do you want to stop working and how much money do you want to have? It might seem like a long way off but think about your parents and what they are doing now- what do you want to be doing at their age – still working or SKI?!
5. Start planning – make a budget
Once you have your goals more firmly set, you can figure out a budget that helps you live comfortably within your means and achieve the things you want to achieve. Be realistic about your living expenses, and be consistent.
6. Real estate – start climbing the property ladder
If buying property is important to you, then your 30s is a good time to do it. Be realistic about what you can afford to pay on a mortgage, do your research and consider taking advice from a financial adviser. Even if the property is purely for investment purposes in a place you never plan to live, taking the first step will get you started and may give you the equity and standing to buy your dream home further down the track.
7. Protect your most valuable assets
Life insurance and medical insurance might not seem the most fun way to spend your money, but it’s important. If you’re in a long-term relationship, it can take the burden off your significant other and children should something happen to you. If you’re single it can provide injury insurance in the event that serious illness prevents you from working and meeting your financial obligations. It’s a way that helps you and yours keep affording the life you want.
8. Pay down debt
It’s time to get serious and pay down that debt you accrued in your 20s. Whether it’s paying off your HECS debt, student loans or finally knocking that debt on the head from the gap year you took after university, your 30s are the perfect time to focus on getting out of debt. Also, watch out for credit card debt. Keep credit cards in check and try to pay them fully every month.
9. Learn to be your own advocate
Whether it’s with your accountant, your employer, business partners or bank manager, use the confidence and skills that come with having worked your way up in your 20s. Advocate for yourself and negotiate a raise, a good deal or a better rate – take matters into your own hands and see how empowering it can be. You’re not just earning for now, but saving for retirement.
10. Have a plan
It doesn’t have to be the plan you had when you graduated university, nor does it have to be the plan your family or society has for you – but it’s a good idea to have one in your own mind based on what you want. Financially, your 30s are your power years, but you need to be organised in order to make the most of them.
As always, Empire is on hand to assist, explain and set you on the right track to building strong foundations in these crucial years- if you want us to be. Just call us on 9323 3000 or email us at efg@efg.net.au
Article from insights.bt.com.au
