If you’re approaching your 30s or already in it, achieving financial security should be one of your goals. On a gist, financial security means you have the money to cover your current and future expenses without stressing about it. Achieving this phase doesn’t just allow you to make ends meet but take complete control of your money like budgeting.
The best part is, financial security gives you a debt-free life. You don’t have to worry about paying high dues every month and stressing up not saving money for emergencies and future plans. To help you reach this feeling of financial safety, here are some money moves that you can take.
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Live below your means
The first thing that you need to learn is not to spend more than you make. Your income is your ultimate tool to build your wealth. It’s always crucial that you start checking your paycheck first before planning any financial goal, whether it’s paying off debt or establishing your emergency fund. Spending less than your income is the best way to maximize it. Avoid instant gratification and take control of your finances. You cannot be financially secured if you’re constantly chasing expenses you can’t actually afford. Such minor sacrifices can pay off in the future.
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Purchase a house
Homeownership isn’t just a personal goal but also a significant investment. It can help you build equity, which can potentially grow when the property’s market value increases. It also provides you with stability as you no longer have to worry about monthly rent or expensive moving costs. The good news is, there are now several mortgage options available today. You can choose the one based on your income, lifestyle, and retirement goals. Only talk to a reputable mortgage provider to ensure you get a home loan that best suits your needs and prevents problems with repayments. Aside from mortgage companies, it’s also best to speak with a financial advisor for further assistance.
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Treat savings as expenses
Let’s admit it, saving can be tricky, especially with tons of advertised things we see every day. Brands and businesses use innovative marketing techniques to tempt consumers to spend their disposable cash. And the result? People end up without savings. Treat your saving goals like they are a recurring expense. Look at them as if they’re your car loan, mortgage, or rent. You can set up automatic transfers to your savings accounts, so they can be credited the same day your salary is. The fewer times you see your savings, the better. For long-term goals, it’s best to keep your money in a high-yield savings account, which offers a higher interest rate compared to traditional ones. Plus, you’re less likely to pay monthly bank fees with high yield savings account. Some basic savings goals are down payment for a house, emergency fund, big purchases, retirement, vacation, home renovations and repairs, college expenses, and different sinking funds.
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Plan for retirement
Investing for retirement should be kind of a given when working towards financial security. Regardless if you’re approaching your 30s or already in it, it’s time to take retirement planning seriously. Think about the days when you’re not earning money anymore and what exactly do you want to do. Do you want to move to the countryside and live off the grid? Do you want to travel around the globe? Focus on your retirement as early as you can and begin saving for it. You’d be surprised with the power of compound interest. Check if your employer offers a matching option for retirement plans like 401(k) or 403(k). This matching option is like free money, so don’t miss out on that!
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Don’t forget to have fun
Keep in mind that working towards financial security isn’t about restricting yourself with things that make you happy. Working, paying off debt, and saving can be more challenging if you cut off the things that make you happy. You’re likely to be more stressed and exhausted. Prioritize your health and happiness. Live your life! What you can do is to create a budget for fun or personal expenses too. You can set aside money for a game night or hike with friends, a massage session with your family, or tickets to your favorite events. And most of all, remember that financial successes should be celebrated too, whether you just pay off your student loan or credit card debts.
No one wants to spend their 30s constantly stressing about money, from paying monthly expenses to saving enough for retirement. Use these money strategies to create your own financial security plan. If it still seems like a lot of work to you, don’t hesitate to seek the help of a financial expert.