People in their 20s tend to spend a lot of money on fun and pleasure activities, but turning 30 is a big crossroad for most people especially when it comes to financial planning. The focus switches from having fun to other activities that require more careful planning. Some people want to start a family, others want to start a business or to make investments and other people want to buy a house, no matter the plans, turning 30 is an important milestone that can dictate the way a person will handle the finances for the rest of their life.
There are a lot of tips and ideas that can ensure an easy and less stressful transition so here are our financial tips for people in their 30s:
When turning 30 most people tend to spend a lot of money to solidify their status in the society. The purchases can include luxury cars, a house or other expensive goods. To avoid accumulating liabilities that will cause a lot of stress, it is recommended to avoid impulse buying until you are extremely sure you need what you want.
Switch To A Healthy Lifestyle
Most people consider a healthy lifestyle is expensive but, when you put things into perspective, you will realize that in your 20s you had a lot of vices that swallowed most of your money. Try to cook at home and avoid fast foods, quit smoking and plan your activities to make sure you don’t go overboard with your fun budget.
Since we mentioned the fun budget, we also have to talk a little bit about budgeting your income. Make sure you have a budget for your weekly activities, for food, for monthly expenses and be sure you’ll also be able to save some money at the end of the month. The idea of budgeting is not to exclude the fun activities that we all need in our lives, but to make sure that you are aware of all of your expenses and that you will be able to realistically budget all your activities.
Don’t Hurry To Buy A House
A house is not only an asset, a house is a place where you live and where you make memories and that place shouldn’t feel like a burden. Most people buy a house because of the pressure they feel from their friends and families, but for some paying a mortgage might not be the best idea so, before buying a house, make sure you are the one that wants it and you are not influenced by other people. A house can easily be a liability instead of an asset if the whole purchasing process is not carefully thought through.
Have An Emergency Fund
We mentioned earlier that you should be able to save money monthly. That money should be held in a special account that will only be used in emergency situations. Even though you might think you don’t need an emergency fund, you cannot know what the future holds and how the economy will change. Better safe than sorry is something that always applies when it comes to financial planning. You don’t have to save a lot of money each month, 10% is a reasonable amount that will help you to save enough money that will be crucial in case of emergency situations.