When you’re in your 30s, retirement feels like it’s a long way off and the thought of a pension is often low on the list of priorities.
Subsequently, being in your 30s seems to make you feel a bit more like an adult and the realisation that you’re already halfway to pension age can be quite daunting.
However, there is no need to panic just yet. You still have plenty of time to get your finances in order if you start saving today.
Below we have listed 4 money milestones that you should try to aim for in your 30s:
You may have started saving during your 20s, but perhaps you still have very little to show for it in the bank. All those holidays and traveling the world was worth it at the time, but in your 30s, you start to have more financial responsibilities. Some of you may have kids and a mortgage, while others may lead a lavish lifestyle that needs to be catered for in the future. The exact size of your savings fund will vary based on your individual circumstances.
For example, someone with irregular income may need a bigger fund saved than someone with more predictable income. Likewise, someone with a mortgage might need to save more than a person with fewer financial commitments. The point we are trying to make is that moving back in with your parents if you have kids etc may not always be an option when finances run low. Saving early helps prepare for the future.
If you weren’t saving much in your 20s, you may need to think about saving more than 15 percent. If you are unsure about how much you should be saving, talk to a financial advisor to steer you in the right direction. Making comparisons between how much money you have now and estimating how your expenses might change in the future may give you a better understanding of whether you’re on the right savings path or not.
At this stage, you have probably cleared most of your student loans and paid any outstanding credit card bills which is a good start to your savings journey. But if you haven’t, then it is seriously time to tackle these debts.
It is important to keep your credit score up and your card balances low. This helps you to qualify for attractive rates on other loans, such as mortgages and car loans. Again, if you have any concerns you can talk to a financial advisor who can help you manage your finances in a more productive way.
It’s also time to start thinking about life insurance, which would cover the people — be it a spouse, a child or a parent who rely on your financial support.
In addition to helping to support dependents, life insurance proceeds are a helpful source of income to pay the deceased’s debts, funeral expenses, or any other important miscellaneous outgoings.
Murray & Spelman (Financial Services) Ltd will happily discuss your financial planning options to help you plan for your retirement.
We specialise in areas such as Life & Serious Illness Cover, Mortgages, Mortgage Protection, Income Protection, Inheritance Planning, Pension & Retirement Planning, and Investments & Savings.
To talk to us about your financial requirements, you can Request a CallBack today and we will contact you at a time that is convenient for you.