Although turning 20 marks the end of carefree teenage years, it’s turning 30 that actually makes most people feel that they’re bona fide adults. And with this comes the responsibility of taking care of money matters, especially saving up for the future. After all, personal finance is one of the keys to success and fulfillment. Even if you’ve conquered global fame but if you don’t know how to handle your finances, everything will come crumbling down on your feet. Or perhaps you think that money can’t buy finances, you can’t deny that you still need it for your daily needs.
To make sure you’re on the right track money-wise, here are some of the smartest money moves that you should make before you reach the 30 mark.
Smart Money Move # 1 – Save, save and save
It’s one of the world’s biggest mysteries-we all know it’s important to save and yet, very few of us do. Why is that? There are hundreds of alibis-from not having enough money to having too much expenditure and so on. According to financial experts, twenty somethings should start saving as soon as possible. This means benefiting from the compounding interest of a bank savings account. Apart from that, having a fat passbook boosts your confidence, helping you achieve long-term goals more easily. It’s advisable to save at least 20 percent of your income throughout your working years.
Smart Money Move # 2 – Get health insurance
The younger you are, the cheaper health insurance is. Even if you’re taking care of your health the best way you can (eating right, exercising regularly and sleeping 8 hours most nights), you should still be ready for unexpected ailments and injuries. This is why, you need a health insurance policy. Remember, your employer’s policy is usually not enough. Get adequate coverage that should include reimbursement for hospitalization, check up, and medical tests among others.
Smart Money Move # 3 – Start paying off your high-interest debt
Most people at this age are burdened with student loans (plus credit card debts if you’re a shopaholic). There’s no procrastinating for this one. Start resolving your debts today. Start with the one with the highest interest. Use your savings to pay your debts. If you must, consider debt consolidation to help you get back on your feet.
Smart Money Move # 4 – Live within your means
Living within your means doesn’t mean sacrificing the quality of your life. It’s just about lowering your standards, enjoying simple pleasures, and having enough of the keeping up with the joneses attitude. It’s all right to indulge once in a blue moon, but at 30, you should be smart enough to know how to scrimp when necessary.
Smart Money Move # 5 – Have a retirement fund
It’s never too early to start saving up for a retirement fund. In fact, the earlier the better. The younger you start, the lower the amount that you need to put away every month.
Smart Money Move # 6 – Prepare for a huge expenditure
It is around this age that people buy a house or a car, get married or have children. It’s important that before you make any of these moves, you already have enough money to back you up. If you need to adjust your lifestyle, go ahead. Refer to smart money move # 1 to prepare for a huge expenditure in your life.
Smart Money Move # 7 – Take care of your credit score
No more late payments or making useless debts buying things you don’t need or can’t afford. It’s time that you start taking care of your credit score. It’s going to matter sooner or later.
Just remember that these are merely guidelines, don’t shoot yourself if you’ve skipped a couple of these, instead let it be an inspiration for you to work harder to achieve your goals.
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Sources:
12 Personal Finance Goals that You Should Make by Age 30
Financial Moves to Make Before Turning 30
5 Smart Money Moves Before You Hit 30