Your twenties might have been a confusing time for you, financially. But as you enter your thirties, you will start to gain more control of your finances having observed your patterns. In your thirties, you might be raising a young family or thinking of having one, so financial responsibility becomes a huge priority. As you enter your thirties, you begin to form a clear picture of what you really want and how to get there. Here are a few goals you’ll want to work on in your thirties as you forge ahead on your path to financial liberation:
In your twenties, you began your professional journey. You should now leverage the knowledge and skills gained to enhance your earning potential. You should attend seminars, conferences, and other professional gatherings to expand your networks and enhance your knowledge. Research career paths as well as the best companies and geographical regions in which to practice your expertise. If you think an advanced degree could open up your career prospects, go ahead and pursue it. Take a few online courses or get relevant certifications to make you even more attractive to prospective employers in your industry. You could even consider a career change if you think it could improve your income.
Being in your 30s could also mean that you may be thinking about starting a family or a part of a growing family. You may need to revamp your budget to easily re-allocate and cut discretionary spending. Your budget should be adjusted for major life milestones including getting married, getting a master’s, having kids, funding family vacation or starting your own practice. Turn these major life milestones into financial goals, which give you something to save towards and help you stay motivated. Unless you have a clear reason for these sacrifices, you are less likely to be able to do the hard work it takes to achieve great things in the long run. With GuardianWealth, you can save for specific goals like having a baby, going on vacation, or buying a home. Specific financial goals ensure that upcoming major expenses do not derail your long-term financial aspirations. Learn how to set SMART financial goals.
Hopefully, in your twenties, you have started saving in an investment portfolio. If you’ve not. Don’t worry you have time to catch up. Now is the time to get serious about investing. If in your 20’s you saved 10% of your salary, now is the time to double that to 20% of your salary. If you find it difficult to save because of a heavy debt burden, explore debt-reduction strategies to reduce debt drag on your long-term financial security. Let’s put this in perspective, if you invest $1,000 per month consistently in a diversified portfolio, by retirement you should have $1.4M. However, if you have to pay that $1000 to the bank you are losing the future one million. If you want to achieve financial freedom or build wealth stocks are your best bet. They offer a higher potential for long-term gains and account for the majority of the wealth created by U.S. households. GuardianWealth wealth management is built by financial experts and automates your wealth building process. Their app helps you build personalized investment portfolios that reflect your risk profile and financial goals.
To help you bring in some extra cash, you could commercialize your skills. This strategy helps you create assets and helps you set up some passive income. A side hustle also creates a safety net, as it will give you a way to pay your bills whenever you are down financially. With a side hustle, you are the complete owner of your practice, which is empowering and motivating. Starting a side hustle also reduces the learning curve if you eventually want to start your own company. Augmenting your earnings helps give you a sense of purpose since you can focus on something that ignites your passion.
You should go through your annual credit report from all three Credit Reference Bureaus every year to understand all the information in your credit profile(link to video). Your thirties might mark some of the greatest financial milestones, including purchasing homes and buying cars. Since these milestones require large sums of investment, you will need some form of financing. This is where your credit rating comes in. Your credit rating determines how much you can be allowed to borrow, so it makes sense to improve your credit score. With a favorable credit score (link to credit score blog post), you’ll live in the best residences, have continuous access to utility services and even improve your chances of getting a coveted job. There are a number of ways to improve your credit score, worth exploring. You can also improve your credit score with a Saving Circle, sometimes known as a lending circle, with GuardianWealth.
While this is a helpful guide to creating financial goals, remember that you don’t have to pursue them at once. Most of us are already on the journey to wealth without knowing it. All the factors we’ve mentioned here should be useful for anyone looking to get started on their journey to financial freedom, and are a great start to building wealth.