By the time that we are in our mid-to-late thirties, we should hopefully be starting to enjoy some of the rewards of over a decade of hard work in the form of wages that can do more than just sustain a lifestyle.
If not, that should be an aim. But if you are starting to make better money, what should you be doing with it? What goals should you be moving towards?
Pay off all high-interest debt
Even if you’re no in any kind of real trouble, now is the time to stop being quite as reliant on high-interest debts as you may have been. Going forward, you are going to want to put as much aside towards saving and investment goals as possible.
Needless to say, those high-interest rates can limit your potential to some degree. Make a plan to pay off your high-interest debts by the end of the year so that at the start of next year, you can plan a budget that allows you to put a lot more towards savings and investments.
Build an emergency fund
Now, this is a slightly controversial one, since there are some who believe that you shouldn’t save an emergency fund and that it can only serve as a distraction from other financial goals. However, they can be great for fighting off financial distress.
An emergency fund is effectively there to cover unexpected costs and real crises, such as losing your source of income, for three-to-six months. You may find it responsible to have one.
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Start investing your money
If you’re starting to make more than you necessarily need to spend on your lifestyle, what should you do with it? Purchase a better standard of living? Pump it into the savings? It might be time to start making your money work for you, and wealth management services might be able to help you do that.
If you’re a beginner to investing and you have enough money to start investing, then getting a little expert advice might be in your best interest. You can eventually learn enough to manage your own portfolio, but you don’t have to wait until you’re fully educated to start reaping your rewards from the market.
Get funding your retirement account
Of course, some of the extra money you’re making should go into your savings. All going well, your investments should pay off more than enough for you to enjoy your retirement and secure the future of your family.
However, it’s worth having a healthy retirement account that, even if you lose those investments, will still be able to sustain you (and possibly your spouse) for the foreseeable future. If you’re not already contributing to your retirement at age 30, then now is the time to start seriously putting in.
You may have your own goals and may disagree with those mentioned above. That’s entirely fine. What’s important is that you have a direction set and a destination in mind. Making conscious decisions with your money will ensure that you don’t simply fritter it away.
