Are you ready for the dirty thirties? See if you’ve mastered the below.
1.Set up an emergency fund
Living week to week should be a thing of the past by the time you reach your thirties. We recommending trying to build up a 3 month emergency fund for emergencies to stop you resorting to credit or worse still, your parents to help with unforseen expenses. This can be hard but start small and build up. You will get there, and you will be thankful you did.
2. Automate your bills and banking
I am a big lover of automated bill payments. Sit down and work out how much each bill costs you yearly, average that cost out to match your pay period. For example, you get paid fortnightly, you spend $1,500 a year on gas. So you would set up automatic payments of $57.70f/n to cover this. The relief you will feel when you don’t get blown away by large bills turning up when you are not expecting them is great, plus it helps preserve number one, your emergency fund.
3. Pay yourself first
To follow on from automation, anyone thats financially successful will tell you that you need to pay yourself first. Put a percentage of your pay away every payment, at least 10% but preferably 20% of your net income. This you can use to save for your future, either put this towards your first home or investment property, or even look at setting up a share account. This money is what will make you rich.
4. Start Salary Sacrificing into your superfund
First of all, if you haven’t got all of your super funds into one, you are behind the 8 ball, contact us now and we’ll help you get this sorted out. The next thing is looking at Salary Sacrificing. Even $20 a week now will add up to a lot of extra contributions by the time you retire. Speak to us to find out how.
5. You should have prepared a will
In your 20’s this isn’t something you want to consider, but its smart to do so. Do you have a certain person you would like to leave your money to? well it might not go to them if you don’t have a will. A lot of younger people say they don’t have any money to need a will, but you might be surprised, superannuation can come with insurance and you may not even know you have it. Its worth looking into.
6. Pay off any bad credit
I view bad credit as anything that depreciates in value, so cars, personal loans, credit cards. Home loans also do fall under this category, but if you have your house loan paid off before you are 30 I would love to meet you and shake your hand to congratulate you because that would be quite an achievement. So we will leave home loans out of this for the point of this exercise. Are you trying to reduce debt and not sure how or what to do, come speak to us and we’ll map out a plan forward with you.
7. You should have read a few personal finance books
My all time favourites and the first finance books I read, which got me into Finance are a great place to start. Rich Dad, Poor Dad by Robert Kiyosaki or The Barefoot Investor by Scott Pope. I can’t recommend these books enough and believe they should be a part of the high school curriculum along with the beloved algebra. Finance is exciting once you start learning more about it, and what you do in your 20’s could set you up for the rest of your life.
8. Set some goals!
Sit down and map out a bit of a plan.It doesn’t have to be exact, but by now you should know what you want to achieve and what sort of life you want for yourself. Write down these goals. Then come see us and we’ll work on a plan with you to help you get there.Share