Hello ladies, it’s a new financial era for women, and managing your money is one of the most important things you can do for yourself.
All financial goals will be deeply personal to you and your family. There are, however, a set of goals that we’ve organized here to offer some guidance of the sorts of goals you may want to be working toward once you’re in your thirties.
By this age, you are likely earning a higher salary and able to put more toward your future. You are also very likely dealing with a few life changes and perhaps even one or two additions to your family. Securing your finances for today and tomorrow can suddenly become very important, seemingly overnight.
1. Live Debt Free
It’s best if you have already paid off your credit cards. But if you haven’t, now is the time to tackle what remains of youthful indulgences with plastic. Once that is done, your early 30s should be devoted to getting rid of debt that isn’t mortgage related. When your non-mortgage debt is paid off, you can start thinking of paying down your mortgage.
2. Get a Financial Plan that Maps Out Your Life
A financial plan can help you in all of these areas of your life and can work with you to establish specific financial goals for you and your family. Start making your financial dreams come true.
3. Focus to pay off your mortgage
A down payment for a home makes it easier to qualify for a mortgage. It also gives you more purchasing power to find the right home in the neighbourhood that you want. Depending on your life choices, you may purchase your first home in your 20s, or you may wait until you are about 30. It depends on your situation, single or married, and career choices. However, saving this money will help you be ready when the time comes.
4. Protect what you have and review your insurance policies
Make sure your home, auto and health are adequately covered. Look for ways to save money on insurance, yes, but make sure that you aren’t sacrificing the coverage you need. Consider the possible catastrophes that could occur, and plan for disability, accident and other unexpected expenses.
5. Check your life insurance
Now that you are more established, and possibly have a family, you need to make sure your dependents will be cared for should the unthinkable happen. Get coverage for your life. The younger you are when you buy a life insurance policy, the less you’ll pay. You can get good term life insurance coverage with cheaper cost while in your 30s. It is vital to draft a will, and to make provisions for what happens if you become incapacitated in some way. Make sure that your family know where this information can be found, and that a couple of trusted people have copies.
6. Max out your retirement contributions
Hopefully, you began saving for retirement in your 20s. If you didn’t, review your financial goal for retirement plan. It is an important goal you should be striving for in your thirties. Ideally 15% of your income is going into retirement savings. Look at what you have been investing in your retirement, and then figure out how much more you can put in. Get serious about the future.
7. Continue to maintain strong Financial Habits
You need to live within your means. It means managing your credit well and fixing any mistakes like late payments that you have made in your 20s. It also means creating and following your budget every month. Fully funded emergency fund. It also means establishing a good emergency fund that can handle things like a surprise layoff or sudden illness. You maintain good credit. It is important so that you can borrow at a lower interest rate. You can use credit cards just fine and enjoy the perks of their rewards programs by paying off your balance every month. Having good credit will enable you to secure a mortgage at a lower interest rate, which can wind up saving your money. If you have these habits established, it will be easier to keep moving forward as life gets more complicated with kids, relationships or other career moves.
What are your concrete strategies to achieve your financial goals?
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