Turning the big 3-0 is a big deal. Not only are you entering a new decade but you’re also about to go through a financial crossroad. In one hand, you might already build some assets in your twenties that may help you in the future. On the other, you might still be struggling to pay off student loans and other mortgages.
Fortunately, every small step can make a difference. You still have time to invest, change habits, and reclaim your financial control. This is the time to take your finances to the next level and make mature decisions about money.
Have no idea on what you should be investing on during your thirties? Below is a quick list of financial resolutions that you should focus on, brought to you by Think Pesos and Dot Property Philippines.
#1 Grow your income
You already have an idea on where your career is going when you reach your thirties. This is the time to use your skills to its maximum level and get the cash flowing.
Ask your boss for a raise and promotion or start a business. Figure out which of your skills with give you the best leverage for a better paycheck.
#2 Re-evaluate your budget
We cannot live forever on that happy go lucky budget of a young twenty-year-old. Your budget will need to adjust to your new needs as a thirty-year-old individual. You may never know, you might want a new condominium for sale in Makati or a brand new car during this time.
You might also want to save for your future family or for your future business. Readjusting your budget can help you make room for more investments that you will need in the future.
#3 Pay off debt
Doesn’t it feel nice to pay your debt? Paying those debts that you acquired during your twenties will not only improve your credit score but will also help you move forward when it comes to your finances.
Having debt can put a drag on your cash flow. Yes, having loan can be good for your taxes and improving credit, but the cash that you put on these loans might have been put to better and more fruitful investments.
#4 Continue to improve your credit
Checking your credit report every year is a must for a thirty-something adult. Knowing your annual credit report can help you fix errors right away and identify a potentially dangerous account.
This can also help you learn how you can further enhance your credit. Paying off an unpaid mortgage or settling a payment earlier than schedule improves your credit score.
#5 Save some of your income for retirement
Experts recommend saving 15% of your gross income for your retirement fund. Every time you get a promotion or a raise you have to increase your contribution to your retirement fund.
When you get a bonus or a cash gift consider on putting it for your retirement especially when you have nothing else to use it for.
#6 Create an estate plan
If you already have a certain level of assets or you already started having a family, then you should consider creating your estate plan.Where will your money go if there’s an accident? Who will take care of the children? Who are the beneficiaries?
Building an estate plan is like creating a safety net just in case an accident or an emergency happens.
#7 Make insurance adjustments
As your assets grow, the more insurance you need to cover them. These assets may be the house and lot that you need to buy or the brand new car that you just purchased.
Having insurance for the things that matter may save your life in the future. Re-shop your insurance policies once in a while to make sure that you are getting the best deal.
#8 Don’t get jealous of what others have
Comparing your finances to others and getting envious of what they have may lead to more debt and agitation on your current financial situation.
Remember that each and every one of us has their own pace. Focus on your own financial goals, stay on your budget, and enjoy your thirties the fun and responsible way.
Follow the steps above and you’ll surely face financial ease throughout your whole thirties!