You can be excused for making a few wrong turns with your finances during your twenties but by the time you reach your 30th birthday and beyond the rules of the game change and you are going to have to be ready to meet some serious future financial challenges.
Here is a look at some of the key financial rules of engagement that tend to apply in your thirties and how they set the tone for life beyond that important decade.
There is an overview of the sort of life events you will be facing, plus tips on giving yourself some important breathing space with your money, and why it pays to think about retirement in your thirties.
Your Financial Coming Of Age
There is no question that hitting your thirties is a real game changer in a number of different ways.
This is a time in your life where you are most likely to be starting family, buying a home, forging a successful career, all of which tells you that there is no time for any of the financial immaturity you might have displayed in your twenties.
Life has just got a bit more serious and you are going to have up your financial game and be prepared to face all of those exciting challenges ahead.
Talk of retirement probably seemed daft to you in your twenties even though in reality it wasn’t a bad idea to get working on that one if you had listened to the warnings about the clock ticking, but things like retirement planning and life insurance definitely seem a lot more real and imperative in your thirties.
The good news about this period in your life is you should be starting to earn what you can class as a decent salary in comparison to your earning power in your twenties, which means you are better placed to do some of the things required to set the tone for your financial future.
You might want to take a look at your personal debt levels, credit card balances, student loans and see what your options are for putting your finances in better shape.
This review of your finances is an essential part of your master plan to set some priorities and strategies in motion.
Get That Emergency Fund In Shape
There are less valid excuses for getting caught short with your finances in your thirties so make sure you concentrate on getting your emergency fund into better shape.
With a better level of annual income and with some financial prudence you should be able to develop a plan where you manage to put away enough savings in an emergency fund that is the equivalent of between three and six months of income.
This gives you decent breathing space for an unexpected financial emergency and ensures that if you suddenly find yourself between jobs, your finances won’t unravel in an instant.
Time To Think About Putting Your Feet Up
Retirement definitely has to be on your agenda in your thirties and if you want to ensure that you enjoy a comfortable senior living experience, it is one of your financial priorities, even at this point in your life.
The basic math is simple. The quicker you start saving for your retirement the less pressure you are going to put on your income.
Leave retirement plans until your forties and you are going to have to take more drastic steps with your income, so give yourself a better path to putting your feet up and aim to save at least 15% of your annual income towards this goal.
The more you look at it, your thirties is a real game changer for your finances.