Whether we look forward to it or not, our 30s are coming. As we get mature in age, it’s vital that our finances mature too. By 30, or even our late 20s we should be in a good financial position so we live with a little more peace in the financial aspect of our lives. If you’re wondering what you can do to get ready for more financial bliss, here are 5 valuable ways to prepare for your 30s.
1. You Should Be Raising Your Credit Score
Creating a good credit score now will set you up for the future. Lenders want to be able to check out your credit history and if there is no history there then they have no idea how you may handle repayments. Whenever a potential employer does a background check on you, they usually want at least 5 years worth of employment history along with educational information. Lenders are a bit like employers, they want enough information to trust that you’re going to be able to afford a mortgage, business loan, etc.
2. You Should Have An Emergency Fund
As we get older, events out of our control take place whether it be involuntary redundancy, a pay cut or your car breaks down. Although we may not want to think about some of these situations, it’s life and it happens. The best thing we can do is prepare for whatever comes our way. It has been said that 3-6 months of your monthly income should be set aside as an emergency fund. If 6 months sounds too steep at the moment, aim for 3 months and work your way up from there.
3. You Should Have A Saving/Spending Balance
When we first start making money, it’s very easy to get carried away and spend all our money and not budget and save. However, as we continue to receive income, spending our money in an unorganised manner can cause problems in the long run. If you continue to budget, you will learn how to achieve a great balance between saving, spending and investing. With anything, it is hard in the beginning but continue to trust and believe that you’ll get better at managing your money.
4. You Should Be Saving For Retirement
5. You Should Be Preparing For Special Occasions
It’s been said by Dr. Meg Jay that 80% of life’s most significant events take place before 35. When you’re in your teens and early 20s it’s graduation, career starts and learning to drive. As you get closer to your 30s it’s your wedding, having your first child and getting a mortgage. Start to save for these events and be realistic about the amounts you put towards it. Better to save than to go into debt paying for your dream house or wedding.
This post was written by Bola
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