How to manage money in your thirties

How to manage money in your thirties

Many people spend the beginning of their twenties trying to figure out how to make an income and the end of their twenties trying not to overspend. And that’s perfectly okay. Your twenties are all about learning how to handle your money. But then your thirties arrive and it becomes incredibly important that you have a handle on your finances.

When you hit the big three-oh, your career is finally starting to stabilise and you’ve probably become more used to managing your income and making sure all your bills are paid. Now is the time to take the state of your finances seriously.

So, how should you manage your money in your thirties?

Create debit orders for absolutely everything

Most people have regular monthly payments. Creating a debit order for each account you pay will make your life a whole lot easier. You simply choose a date after you get paid and have your debit orders come off your current account on that day. You don’t have to remember which accounts to pay or do any admin whatsoever. It makes your life simpler and you’ll find you need that extra time when your life seems to get busier by the day.

Have savings set aside for emergencies

It’s important to have a cash lump sum set aside in case of an emergency. This should be separate from your other savings, such as vacation savings and money you’re putting aside to purchase an expensive item. You need to be able to access this savings amount in case anything happens to you or a loved one. It’s important for families, whether one you have or one you want to form, to have a savings account you can access quickly.

Make a plan for retirement

Whether your employers contribute to a retirement annuity or not, you need to have a financial plan for when you can no longer work. As much as you might love your job right now, you probably won’t feel like going into an office every day when you’re over 65. Many young people think they’ll have time to make up the cash they need when they earn more in the future. But this isn’t always the case. You should have started saving in your twenties, but if you haven’t yet, don’t delay.

Invest in your future

You don’t just want to plan for your retirement. You should also think about your future and the things you want to do. Investing a relatively small amount a month into something like a unit trust investment could make all the difference when you want to purchase a house or upgrade the one you’re currently living in. And, once again, if you have a family, this is even more important. You want to be able to send your child to university or college one day.

You’re not in your twenties anymore and you need to be more involved in your financial future. So, think carefully about these things because it’s time to make some big decisions.

Authored by: Pete Anderson

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