Thirty is an important age. You’ve lived your life as a young adult and you have to make your way to becoming a real adult with responsibilities. If you aren’t married yet you might have pressures from your parents to get married. It’s an age where you’ve just become an adult, leaving behind your small insecurities of your 20’s and are ready to take on the world.
But if you’ve turned 30 or at the cusp of turning 30 then the tips we’ll give you in this article should give you some perspective. Your relationship with money might be confusing in your 20’s. Whatever you earn you might spend and don’t seem to be in control of your expenses. This happens. When you just start earning and are responsible for your money, you make some rash decisions in purchasing things that you don’t need. Understanding money will set you up really well for your future.
- Have two accounts
The number one problem that every one faces is saving. It’s difficult to save. This is why I suggest setting up two bank accounts. One is for your daily transactions and expenses. This is your primary account. Then create another one, a secondary account, just for the saved money. For the second bank account you shouldn’t hold any debit or credit cards, even if the bank gives it to you. Hide it inside your house somewhere. One is always a savings account and that you don’t touch.
- Save first, Spend Later
This is the most talked about tip in all finance articles, but this isn’t practiced. When you get paid you get super excited and spend crazily. When you are young, and you get paid money in the beginning of the month, you finish off 70% of your salary in the first 15 days. This is a bad way to live. Whenever you get paid money, make sure to save the money first and then keep money ready for your expenses.
- Know your expenses
Having a sub conscious awareness of how much you can spend does wonders. If you aren’t sure how much to be spending when you go out, or on a month, then you are going to splurge and you will be broke by the end of the month. You should at least be saving 20% at the minimum of the income you make and the rest of your expenses should be split between rent, electricity, gym, internet and you should have an awareness of how much you can spend for entertainment and partying. So have a mental idea of how much you are allowed to spend and then anything extra you have in your account, put it back in your savings account. Or if you are like me, the extra can go into a travel budget which I add money to travel the world.
- Live within your means
We are all too eager to grow up too quickly and want the big life very soon in our lives. Sometimes we have friends who are extremely wealthy and are able to afford rich meals and visit costly restaurants all the time. You need to know where you stand. Don’t stretch your lifestyle. If you cannot afford it, don’t do it. Don’t run behind branded bags just because your friends are carrying the same thing. This is a hard truth, but nobody is going to tell you this. If you are obsessed about branded products, then look out for clearance sales and discounts and jump when you get the opportunity. You should be able to do one or the other.
5. Invest like a boss
Money saved is money earned. Money invested can be wealth earned. Thanks to the world, the money you save can double or triple and make you wealthy. Investing in stocks, bonds and a variety of investments can set you up very well for the future. If you don’t know how to invest then contact a small brokerage firm whom you trust to get you to invest on your behalf. No point in wasting time. Look for long-term investments, where you can make dividends out of the stocks you invest in.
Thinking about money seriously can really make your life easier in the future. When you are young there is a feeling on invincibility. This world is unpredictable and it’s run with money. If you get it right, you can hope to have a comfortable future when your risk appetite is much lesser.