Building Your Wealth in Your 30s

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Although you should start thinking about your finances the second you reach adulthood and head out into the big wide world, it is often your 30s when you start to think more seriously about building your wealth and increasing your financial stability.

 

If you’ve reached that stage in your life and you’re desperately trying to get your financial house in order now, here are some tips to help you build wealth in your 30s:

 

Start Paying into a Pension

 

If you don’t already pay into a pension, now is the time to start. If you’re 30, then you still have at least 36 more years of work ahead of you, and you can build up quite a lot of money in that time.

 

If you already have a pension, chances are you’re only paying a small percentage of your salary into the pot each month. If that’s the case, you need to really step up your game and start to save at least half of your age as a percentage of your salary each month, So, if you’re 30 now, aim to save 15 percent of your salary towards your pension. It might seem like a lot now, but you’ll be glad of the sacrifice when you can retire comfortably and enjoy the rest of your life when you hit your mid-60s.

Buy a Property

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Investing in real estate, if you can afford to do so, is rarely a bad idea, not least because any money you spend on rent is lost for you forever – it will only ever enrich other people – whereas, the money you spend paying off a home loan is money invested in your future. You’ll either have a fully-paid-for place to live when you do eventually retire, or a property that’s worth a significant sum, which you can convert into cash by downsizing, to boost your wealth as you get older. Just make sure you can actually afford the repayments first!

 

Pay Down Your Debts

 

In modern society, if you’ve gotten to your 30s without accruing any debts at all then you’re very lucky, and you’re efforts are to be applauded. If you haven’t been so lucky and you have credit card debts, personal loans and student debts to deal with, like most people your age do, now is the time to start seriously making efforts to pay them off. Pay more than the minimum, consolidate your debts and, if necessary, work harder to pay down those debts as fast as you can because, as long as you’re paying interest (not including mortgages), you can’t focus on building wealth.

 

Live Simply

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In your 20s, chances are you were out at bars and restaurants all the time, having great fun. Going on shopping sprees and generally enjoying life. There’s nothing wrong with that, but now that you’re in your 30s, it’s time to dial things down a little. Start by eating in occasionally and curbing the impulse to buy a new pair of shoes when you have several perfectly functional pairs in your wardrobe already and progress to trimming the excess out of other areas of your live as you get wiser and realize that money in the bank is more important than flashy cars, fa ncy gadgets and designer goods.

 

If you do these things, and you start saving a minimum of $50-100 each month, you will start to build some solid wealth as you leave your 30s and head into your 40s and beyond!

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