As we transition from our 20s to our 30s, our lifestyles, priorities and obligations often start to shift. While this shift doesn’t necessarily happen overnight or at the same pace for everyone, it’s only natural that our lives change over time.
Although everyone’s lived experience is different, typically our 20s is the time to start figuring things out, whilst in our 30s priorities may start to shift towards settling down, starting a family and making other crucial life decisions. However, balancing all these life changes alongside everyday life can lead to problems with personal finance.
If you’re in the process of this transition, or struggling with it, take comfort that you are not alone. Millions of people face similar challenges in their lives when it comes to their personal finances.
However, with the right strategy, you can make the most of your 30s and get your personal finances looking better than ever.
While it may seem like your 30s are the ideal time to establish strong financial foundations, it’s difficult to know where to start. That’s why we’ve put together our top personal finance tips and tricks to help you get started on your financial journey.
Let’s dive in!
1) Knowledge Is Power
Understanding your money is one of the best places to start in taking control of your personal finances. Becoming informed will help you feel more confident and allow you to grow and manage your money more effectively.
One of our favourite personal finance tips is that it’s never too late to start learning and making positive changes.
During your 30s, increase your knowledge of key financial concepts such as savings, credit scores, insurance and taxes. Start with the areas that are most relevant or interesting to you and build up your knowledge base from there.
By having a better understanding of your finances and money in general, you’ll be able to make smarter and better informed decisions throughout your life. Taking a proactive approach to learning will also prepare you for your financial future and help you face any challenges you encounter along the way.
2) Stick to a Budget
If you want to get better at managing your money and saving for your future, you’ll need to have a tight leash on the money going in and out of your account.
Budgeting probably isn’t a new concept (particularly if you follow our content); perhaps you came across it in an article, used a few budgeting apps, or have even created a budget yourself. However, after creating a budget, sticking to it is the real challenge.
Once you reach your 30s, tracking your income and expenses more closely becomes crucial. Having a budget makes all your financial transactions less of a juggle and much easier to monitor. However, having a budget is one thing - but you need to stick to it.
The purpose of budgeting is to help you understand where your money is going so that you can make sensible spending decisions. It’s perfectly normal to treat yourself, as long as your purchases fit into your budget.
Knowing about your spending habits will help you discover ways to reduce expenses and save more money.
3) Figure Out Your Debt Situation
Entering your 30s, many of us are typically carrying some form of debt. Whether it’s car loans, credit cards, mortgages or student loans it’s easy to consider debt just another part of your life.
However, the truth is that you don’t actually need to live your whole life paying off debt. We understand that tackling debt may appear daunting, but with the right strategy, you can significantly reduce or pay off your debt entirely.
Moreover, paying off all your debts can also have a positive impact on not only your finances, but your mental wellbeing. It can provide more breathing room in your budget and free up more money to put towards your savings and financial goals. When it comes to debt management, one of the best personal finance tips is to get ahead of it.
Apart from setting up an ‘emergency’ or ‘rainy day’ fund, proactively think about how to manage your debt. Once you have a plan, put it into action and start reaping the rewards. It won’t happen overnight, but ‘future you’ will thank you.
4) Plan for Your Next Big Life Milestones
As the saying goes, by failing to prepare, you are preparing to fail. When it comes to big milestones in your life, you might be considering weddings, babies, a home or family holidays. You want to make sure you’re prepared and plan well in advance.
Dedicate sufficient time to researching the costs involved, and don’t be afraid to scale back if needed. Don’t forget to keep the costs realistic and in keeping with your financial situation.
It’ll be much better for you and your finances if you’re able to achieve your milestones on your terms and within your budget.
5) Think About Your Pension
Your pension is a very tax-efficient way to save for your future. It might seem a million miles off in your 30s, but it’s incredibly important to plan for. If you can afford to contribute more towards it now, it’s one of the best personal finance tips you can follow, as it could make a massive difference in the future and will only grow with time.
Beginning to save now for your retirement may feel overwhelming at first, but it’s not as hard as you think. While retirement may feel like a faraway dream, you need to make time now to focus on it as an essential part of your future plans.
With most pensions now managed by your workplace, if you chose to opt out, it might be worth reconsidering. It’s a great way to build a financial nest egg for the future!
6) Get Real About Your Financial Goals
What are your financial goals? Take some time to sit down and really think about what you want from life. What does that look like and how old are you? Next, write down your goals and start figuring out how to make them a reality.
You’ll likely have a mix of short and long term goals and will need to consider the best ways to achieve each of them. A common goal for many individuals in their 30s revolves around escaping debt or ‘generation rent’ and climbing onto the property ladder. Some other goals revolve around building an emergency fund, but they can be whatever is most important to you.
By keeping your goals realistic, you can give yourself a target to work towards and motivate yourself to better manage your finances.
Choose Salad Money for Fair and Affordable Personal Loans
When it comes to personal finance, it can be challenging to know when and where to start and how to keep up. However, no matter your age or financial situation, our personal finance tips will help you along your financial journey.
At Salad Money, we understand that managing your personal finances is not always simple or easy for everyone. Despite putting in your best efforts to handle personal finance matters, there are times when you may require emergency money.
That’s why we’re here to assure you that we’re here to help, at Salad Money, we provide the financial support you need, whenever you need it.
As a leading online lender in the UK, we believe that your credit score is not a fair assessment of your ability to repay loans. That’s why we use an open banking system to accurately assess your loan affordability.
What’s more, we are authorised and regulated by the Financial Conduct Authority, allowing you to be rest assured that your data is safe and protected.
To learn more about our personal loans, click here and to read more blogs like this one, visit our blog page now!
