Suppose you are looking forward to improving the quality of your life in your later years. In that case, you will want to aim at becoming financially wise in your younger years – especially – once you have reached your 30s. In your 30s, solid financial goals are mandatory, requiring you to integrate smart financial management strategies.
Ideally, you will want to start managing your finances as soon as you start earning – even – if you are in your early 20s working a part-time job. However, if you have never become serious about your financial goals in your 20s, you will want to start setting up your financial goals in your 30s.
Here is the list of essential financial goals that you will want to have in your 30s.
Keep reading!
Table of Contents
Stick to a Budget
You cannot reach your financial goals without budgeting, and the key to successful budgeting is to have every dollar planned before the start of each month. Ideally, you will want to use the rule of the 50-30-20 ratio for effective budgeting.
According to this rule, you will want to spend 50% of your monthly income on your needs, including all mandatory monthly payments you must make at all costs, such as debt payments, utility bills, mortgage payments, etc.
Also, according to this rule, you will want to put at least 20% of your income into a savings account. The remaining 30% can go towards the accounts that you have established for your wants, such as car payments and holiday plans.
Now, you can also use the 30% on making investments to generate passive income, such as investing in cryptocurrency; speaking of which, you might want to explore the best cryptocurrency exchanges in Australia to use cryptocurrency for passive revenue through lending your cryptocurrency to others.
Build an Emergency Fund
When it comes to building a stronger financial future, you will also want to focus on establishing an emergency fund. If the pandemic has taught us one thing, then it is about the uncertainty of life and that nothing is in our control – except our reactions to the outer things.
With that said, you will want to work dedicatedly on establishing an emergency fund, basically the backup plan to save you from debt. Suppose your car breaks down or you find yourself suddenly unemployed, your emergency fund will help you get through tough times without having to rely on anyone else for money.
Ideally, you should aim at collecting 12 months’ worth of money in your emergency fund, enabling you to live off the money for at least a year until you find a job or things get better. So, calculate your living expenses for each month and multiply it by 12. The sum is the amount you need in your emergency fund.
Plan for Retirement
Of course, you will want to plan for your retirement for a secure future. And if you succeed at mastering your financial goals in your 30s, you can maintain a good standard of living even after your retirement. You will want to assess your current financial situation and set goals while keeping in mind to put aside money in your retirement account as well.
