For most people, 20 is the age where you have the opportunity to enjoy the life of your youth.
At the age of 20, you can still have fun and spend your money on various desires that are actually not that important.
However, when you reach the age of 30, you already need to think about many things, especially about matters related to finances.
This is because there are more and more financial needs that you inevitably have to fulfill, such as house installments, vehicle installments, and even wedding savings.
Maybe you even no longer like home cooking and choose to eat lunch/dinner out.
Thus, you also need an extra budget to fulfill such things.
So, here are some financial tips that you can apply when you turn 30 years old. Come on, check it out!
Can Decide Between Buying or Renting
At the age of 30, especially if you are already married, it is very important for you to decide where you and your wife and children will live.
Is the decision to buy a residence better than renting it? Or vice versa?
Between buying and renting, both are the right decisions.
You just have to adjust it to your personal situation and conditions.
This statement applies to all types of goods/services that you will buy or borrow.
- If you choose to Buy
Let’s say you decide to buy a house as a place for you and your family to live.
There are several aspects that need to be considered beforehand, starting from short-term plans to long-term plans.
You should consider various questions such as; Will you stay for a long time? Is your income able to cover your home loan? Can you still pay for your other needs after buying a house? And other questions.
Make sure you can afford the additional costs, including renovation costs, insurance costs, and taxes that you shouldn’t forget.
- If you choose to Rent
Still about where to live. If you are more interested in renting, make sure the rental price and increase rate do not exceed 30% of your income.
Because, of course, you still have other needs that must be paid for.
As much as possible, you should calculate it first and find out what benefits you will get by renting, without buying.
Having trouble calculating? Try calculating using a rent vs buy calculator.
This will make it easier for you to decide.
Start Leaving the Paycheck-to-Paycheck Lifestyle
Payday is a day that is eagerly awaited.
Some of you must already have plans to spend the salary you get every month.
However, quite a few also forget to refrain from consumption.
So, don’t let yourself fulfill your wish list and forget to set aside 20% for savings or investment.
A Paycheck-to-Paycheck lifestyle does not reflect a good and healthy financial condition at all. Leave this wasteful habit before it mushrooms in your mind.
Then, what should you do?
Don’t be confused, from now on change your perspective on finances.
Try to always record the flow of funds coming in and out of your account.
Be honest with yourself and monitor your financial condition.
Apart from that, be strict with yourself.
Remove costs that are not important and do not need to be met from your budget list.
If you find it difficult to cut unnecessary costs, you can look for other solutions, namely increasing income.
The way to do this is by looking for a job with a higher salary or setting up a side job.
Have an Emergency Fund
Maybe you are tired of reading this title.
However, it cannot be denied that an emergency fund is the most important thing that you must remember anytime and anywhere.
There will always be funds that you can spend for future emergencies.
Because, life cannot be predicted by anyone.
You cannot predict the things that happen in this world, no matter how small.
Like when your favorite vehicle is suddenly damaged because it was hit by an irresponsible person, like it or not, you have to spend money to repair it.
Even though you never expected this to happen to you.
One solution you can do is create an emergency fund savings that can be withdrawn at any time when you need it.
If you currently have no emergency funds at all, let’s start targeting IDR 1 million every month.
You can increase the nominal amount if your income also increases.
Pay Off Debt
Currently, credit cards have become a daily staple for people in the world, including Nigeria.
When you decide to apply for a loan/credit using a credit card or other media, you have indirectly committed to paying it off, even if it has interest.
An American entrepreneur, Dave Ramsey, suggests using the snowball method. Where you start paying off the debt with the lowest amount, then move on to the debt with the next lowest amount, and so on.
As mentioned in the second point, at the age of 30, it would be better for you to have more than one source of income.
So you don’t get stuck in one job that makes you very stressed because the salary is not what you expected.
Start diversifying your income by adding other fields of work besides your main job. Look for other income activities that are more relaxed and can be done part-time at home, such as being a freelancer or part-time worker.
In this way, not only will your income increase, but your experience will also increase.
Try looking at the trends around you, create something that is unique, interesting, and has a lot of interest.
Then, market it to the people closest to you.
Only after that can you promote it to a wider reach.
Don’t forget to analyze your market conditions and start focusing on what you are doing right now.
The more known you and your product are, the easier it will be for you to make more money.
Choosing a Life Partner
The final financial tip is to choose the right partner at the age of 30.
So, what is the relationship between a partner and finances?
This tip emerged because so many studies have linked money as a source of problems in arguments that occur between you and your partner.
According to surveys, as many as 70% of couples fight because of money.
Financial expert from New York, Jacqueline Newman, also stated that 35% of the triggers for arguments in the household are money.
Many also say that finances are the main cause of stress in a marriage (research from SunTrust Bank).
Love cannot be forced.
However, you should also consider this issue more with your partner before you get married and have children.
Because, everything will change after you start a family.
Financial responsibility is not only yours, but also your partner’s.
Therefore, choose a life partner who is compatible with you and can compromise on financial problems like this.
Don’t forget to always be honest with your partner and promise to work together in managing your finances. Maintaining communication is also one of the most important things in a relationship, especially communication about finances.
These are the financial tips that you should do at least when you are 30 years old.
Don’t regret ignoring it.
The tips above are some of the many things you can do to achieve financial freedom in the future.
In essence, understand yourself, change the way you view everything related to ‘finance’, and do what you can as long as it is beneficial for you and the people around you.
- Ritesh Sharma is a seasoned professional in the field of finance and career development, bringing a wealth of experience spanning over a decade. Holding a Master's degree in Business Administration with a specialization in Finance, Ritesh has carved a niche for himself in the realm of content writing. His expertise is predominantly in areas related to finance and career growth, where he has consistently demonstrated his ability to deliver insightful and valuable content. Over the years, Ritesh has established himself as a knowledgeable and reliable source, offering his readers practical advice and information that is both relevant and up-to-date. His dedication to his craft is evident in the quality and depth of his work, making him a respected figure in his field of expertise.
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