ou have reached the point in your life where your career is taking off, you are settling into your first home, and starting a family. Or maybe you haven’t, but you are thinking about these milestones as goals to reach sometime in your thirties. Either way, it is a good time to start thinking about finance goals to keep in mind to better manage your money. This can range from thinking about paying off debt to saving money for retirement. In this article, you will find some of these goals that you should be thinking about and will possibly spark more ideas for you in the future. So let’s get started! Look in this article for the following goals:
- Paying off debt
- Saving money for retirement
- Looking for an accountant, and more!
Paying off your debt
Think about all the debts (aside from mortgage payments) you have and whittle them away
If you keep to your goals of paying off student debt with a plan and maintain your credit card payments staying debt free in that realm, then you will be well on your way to whittling away your debts and being able to maintain other important payments. To help cut your expenses, you can live in a thrifty way and make sure to divert much of your income and savings towards paying off debts such as student loans and the like.
It may seem difficult to pay off debt while raising a family and earning only an average income salary, but it is possible. It takes dedication and focus to maintain both a family life as well as the will to consistently pay off those debts that got you through your younger life. So stay strong and persevere, and your hard work will pay off.
Saving money for retirement
Think of it as a window into your future rather than something that is so far away and unimportant
If you have already started planning in your 20s for retirement, way to go! You are a step ahead of the rest, although this is more and more common and important in terms of getting a foot up on planning for your retirement. You will want to ideally increase your retirement savings to 15% of your income for the best outcome. Shift some of your salary and the money that is no longer going to paying off your debts into the fund that is for your retirement. This will give you a cushion that is important for making sure you are prepared and well taken care of once those days arrive.
To be on the safe side and make sure you have enough money in your retirement fund, shoot for 20% of your income. Also, go into it knowing what you want to invest in. Best of all are index funds, which is a type of mutual fund.
Looking for an accountant
This can make your life a lot easier, and shift your frame of mind and what you are spending your time on
As opposed to simple finances that you probably had in your 20s, finances in your 30s may start to become rather complex. While in your 20s you may have just had a checking and savings account and some bills here and there, your 30s may include many more aspects including mortgages, homeowners insurance, retirement accounts, and savings plans. If this is the case, it is in your best interest to find an accountant that you can work with to make your life all that more easy. The more complex your finances, the more complicated your taxes will be. You may think or even be somewhat successful using software to do your taxes, and that is an option. But to simplify your life, find a personal certified accountant. They will make sure you aren’t paying more taxes than you should be.
Other finance goals to have in your 30s
These range from more to do with your life in the future to staying healthy to reduce health costs
Saving six months of income in an emergency fund
Saving six months of income in an emergency fund will be enough cushion in case you ever lose your job. With the responsibilities you have in your 30s, such as a family to care for and other important payments to look after, it is important to make sure that you are on top of your savings. If the goal in your 20s was to make sure you had $1,000 of savings, now is the time to ramp up the amount to a good cushion.
Six months of income is a good cushion because studies show that that is the amount of time it takes to get a new job if you lose your job due to layoff or an injury. Then you will be sure that you will be able to take care of your family in the interim. In addition to having enough in case of emergency, this six months of income will give you wiggle room in case you want to travel or start that business you have always been dreaming of. But make sure you aren’t taking too much advantage of your savings! You want to have those savings when you truly need them.
Getting your estate planning in order
Getting your estate planning in order means making sure your wills and trusts are in order, which is especially important if you have children. To have your estate planning in order means that it will be easier to divvy up your assets when you are no longer around. Now that you are in your 30s, you have more assets and if you have children, survivors once you die. Not saying that you are dying anytime soon, but it is better to be safe than sorry in terms of saying who you want to take care of your children and who will get what of your belongings.
An advanced directive and durable power of attorney are also important documents to have when getting your estate planning in order. These will make sure that your family won’t have to make difficult decisions about when to pull the plug-- you’ll have already made them in a living will.
Prioritizing your health
Your early 20s may have been the last years of college and partying and staying up late into the wee hours of the night. Now that you are in your 30s, it is time to prioritize your health not only for your well being, but for your personal finance goals. Having good health will save you boatloads of costs in the future as well as the present. Even though you may be as busy as ever with your career life and family life, it is not the time to neglect your health. If you spent one too many late nights in your 20s, now is the time in your 30s to get the proper eight hours of sleep and make sure you drink plenty of water. Also focus on getting enough exercise, whether that is taking a walk with your family after dinner or getting a standup desk at work. It may seem like small and simple steps, but they will make all the difference in your financial life!
From paying off your debts and saving money for retirement to looking for an accountant along with an array of other financial goals, you will be well on your way to financial success in your 30s. By taking a look at all of these aspects of your life, you will not only be better prepared in many ways, but you will also be able to have more financial freedom once all of your ducks are in a row. Look to these goals and find others that are important to you for added success and freedom.
