Top Money Tips For Your Age Part 2: Money in Your 30s
Top Money Tips in Your 30s
1) Make a Money Calendar. You’ve likely increased your bills again. Recently, people buying their first home in their 30s has surged while people in their 20s are returning home for a few years. So you’ve likely added a mortgage, water bill, lawn care bills etc. In order to keep track of all your bills make a money calendar where you write down on which bills are due when and how much they are. Even if you’ve automated most of your bills, add all your bills to this calendar and keep overall track of your bills.
2) Start an investment account for your child. If you plan to or you’ve added to your family, prepare for the large expenses coming down the road. Start saving and planning for child care costs. Start a 529 plan for your child. This will allow you to save and grow money for the large tuition and other college expenses that will come up.
3) Analyze your insurance. There have been major changes in your life. Do you have enough insurance and the proper insurance? Consider disability insurance to cover you in case there is a period of time where you can’t work. If you have dependents then you need to get life insurance. Life insurance will be a big piece in establishing your financial security. You’re working on doing better with your money and building wealth, so you want to make sure you’re protecting your assets and your family.
4) Conquer debt. It’s easy to rack up credit card debt, but much harder to pay it down. Maybe you needed furniture for the new home. Maybe items were purchased for a wedding using a credit card or that trip you just had to take. Whatever the reason, if you have credit card debt now is the time to create a debt reduction strategy and get rid of all consumer debt. Then you can focus on your mortgage and/or student loans.
5) Increase savings. In your 20s you start where you can. Maybe you were saving 1-5% of your income. Well now it’s time to increase that to as close to 20% as you can. At least start saving 10% of your income. This will help you complete your emergency fund, contribute to retirement accounts, contribute to 529 plans, other investing and other financial goals.
Leave your comments below and reach us on Facebook and Twitter.
Photo Credit: Tomas Carrillo
