Financial Investments in Your 30s!
WHEN IT'S TIME TO START LOOKING AHEAD.
In your 30s, it’s safe to say most people have found their grove when it comes to money and focusing on a career. You may need to think about what’s next and giving yourself opportunities now and in the future.
It’s important to gain control of your Financial Future, if you have not already begun too. You may need to think of:
Commencing a budget and considering how you will deal with excess cash flow
Reducing debt (particularly high interest debt like credit cards)
Taking notice and planning your Superannuation better
Paying more off your mortgage or considering investing
Protecting yourself against financial loss
Commencing or increasing an emergency fund and drafting a Will
These years are where you can make a lot of financial impact. You may have a young family or are planning one and feel that you have a huge amount of responsibilities. You may be thinking of how to cover the costs that arise as you experience these significant life changes or prepare for the decades to follow. Taking the time to make a plan will help you through and also set you up for the future.
HERE ARE SOME THINGS TO CONSIDER:
1. NOT HAVING THE RIGHT PROTECTION PLAN IN PLACE
Very few thirty-somethings consider or review the right amount of Income Protection or Life Insurance and also rarely have taken the time to consider their Will if they were to die. These things are all key considerations as you plan to grow your wealth and a family (even the furry kind!).
2. DEALING CORRECTLY WITH INTEREST
You may need to prioritise which debt you want to pay down faster. You may have a home or investment loan, car loan or credit card that needs attention. Most people will focus on paying down high interest rate or non-tax deductible debt to establish a strong financial base for themselves.
3. NOT USING A “REAL” BUDGET
Often a budget may only be in your head, rather than being written down or tracked. As a result, money can be wasted or not used correctly now and for the future.
4. SUPERANNUATION MAY NEED A REVAMP
This is going to be one of your biggest assets, and it’s tax effective. Either not contributing, considering the fees or how the money is invested are commonly ignored. Consider using an online super calculator you can input your age, income and add pre-tax super contributions and calculate the benefits over time.
5. NOT PREPARING FOR THE NEXT GENERATION
This may seem too soon, but very few consider their current or future children’s financial needs. Schooling costs, medical needs and assisting your children into property someday could all be considered.
Please note these are just ideas and not financial advice, please seek specific guidance from a licensed financial planner like our friends over at Astute Brisbane Central.