As you enter into your 30s, it is likely that your financial goals are going to change to match your personal lifestyle. Perhaps you are married now and even have children.
This will certainly change your perspective on your future, and will require a different set of investment goals than you had when you were in your 20s. Below is a look at some of things you should take into consideration when re-evaluating your financial strategies for your future.
Career – You have to invest in yourself!
Now, that you are in your 30s, it is likely that you have found the career that you like and will continue with throughout your working life. However, this may be the perfect time to think about ways to move up the ladder and elevate your career to the next level. Perhaps, this means some additional training or obtaining new skills. Evaluate your current position and determine if there is room to grow and set some developmental goals to enhance your overall career.
Know Your Finances – Be in control
Before you can make any adjustments to your current financial planning, you must first know exactly where you finances stand. List all the income that your household has coming in on a monthly basis, and also include any assets that you have. Now look at your current expenses and your debt level. Together, these two lists should give you a clear picture of where you currently stand financial and help you plan for your financial future.
Start to create diversity in your investment portfolio and try to supercharge payments into your super and paying down your mortgage.
One of the most important thing at this age is to make sure you have a three to six month emergency fund set up in a separate bank account. Since you are likely to have more than yourself to worry about now, you must make sure that your household will be financially secure in the event of an emergency. This fund should be set up before you start becoming to active with any type of investment plans. Having an emergency fund will keep you from falling into debt when unexpected financial issues arise. Minimising or eliminating debt is key in wealth creation and in staying financially ahead.
Now, you want to start setting some goals for you and your family’s future. These goals are probably going to be quite different then they were when you were in your 20s. Make a list of you different goals and separate them by short-term, mid-term and long-term goals. Having a clear picture of where you want your family to be in five, ten, or twenty years will help you create the right investments to meet your goals. In some cases this may just be updating past goals as circumstances change.
Purchasing a Home
If you have not already done so, one of the largest goals you may have in your 30s is to purchase your first home. This is a very large purchase that will take you about 20 to 30 years to repay depending on situation, so you want to take your time and select the home mortgage that is right for you. Hopefully, you adhered to all the warnings and maintained a good credit score so you can obtain a mortgage with a low interest rate. If not, you may need to take a few years to improve your credit rating and then look for a home mortgage with low interest rates. Remember, its not about keeping up with the Jones, its about putting yourself and family in the best financial situation.
Retirement – Little actions now make a huge difference later!
If you have not already starting planning for your retirement, now is the time. Check with your employer and see what options are available at your work. It may be time to increase your contribution to your superannuation fund. It is also a great time to schedule an appointment with a financial planner to discuss your investment options. A financial planner will look at your current financial status and match it with the future goals you set to help you develop an investment plan that will help you meet these goals.
Planning is the most important step at this stage in your life, because the decisions you make now may affect you for the rest of your life. Since your decisions will effect more than just yourself now, you want to make sure that you plan carefully. Understanding where you financially right now, and where you want to be in your future, will help you create the plans you need to meet all your future goals.
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