Your 30’s signify an important stage in your life. It is the point where you get to transition from the college lifestyle to one filled with hundreds of responsibilities. At this stage of life, one has already left behind the post collegiate lifestyle and now, he or she is faced with major milestones. For example buying a home, getting married, planning major life adventures, climbing up the career ladder and having children.
Regardless of the type of lifestyle one may lead, one thing that remains true is the making of significant money decisions and choices. These decisions will impact your present and future life positively or negatively. Today, there are people who are in their 30s and are yet to attain financial success. This is attributed to the tough job market, stagnant salaries and increased student loans. This does not mean that one should resign and accept that life is difficult. It is important to have an optimistic outlook not only for the next minute but for the next day and others to come.
To ensure that your future life is secure financially, there are key decisions and smart money moves you need to make when you are in your 30’s.
Buy a home or invest in real estate while interest rates are low
There are two major housing market shifts which encourage home buyers to pick up their phones and call their real estate agents. They include a drop in housing prices and low interest rates. As a young man or woman in their 30s, buying a home or investing in real estate when the interest rates are low is a great idea. When it comes to interest rates, its importance cannot be overstated pertaining to mortgage. For loan amounts that reach 6 figure sums, a small difference in the interest rate is a huge impact on the bottom line.
When it comes to buying a home, large sums of money are usually needed. Since not everyone has the purchasing power to buy a home fully in cash, many people end up seeking mortgages. When you buy a home or invest in real estate when the interest rates are low, you will get to save money on your mortgage payment. Furthermore, it will lower the amount of interest being charged on the loan over time. This is good news for you as you will get to build equity thanks to owning a home and secure yourself financially.
Making smart money moves regarding the above depends with your short term and long term planning. If you are planning to buy a home, you need to stay in it and not think about selling before the loan is up.
Increase your contribution to your retirement account
In your 30s, you are still young and planning can help you secure your future which includes your retirement. Today, young people have access to retirement accounts for example IRA, Roth IRA and 401K. If you consider opening an IRA, you have two options – traditional IRA and Roth IRAs. Traditional IRA depends with your income and whether you or your spouse has a workplace retirement plan. Traditional IRA is tax deductible but the investment earnings have the opportunity of growing tax deferred until withdrawals are made at retirement. Roth IRAs are a great choice and can be funded with after-tax contributions.
When it comes to a 401K, it allows you to contribute pre-tax money. This is a significant advantage. By engaging in a 401K, you get to invest more of your income without feeling a dent in your monthly budget. You can also consider a Roth 401k which uses income after taxes. This is why it is important to increase your contributions to the above accounts.
If your employer matches your 401K, you need to contribute enough to take full advantage of the match. If the employer matches 50% of employee contributions to 5% of your salary, you will get to benefit as this is free money. Take advantage and increase your contributions for the future.
Allocate a monthly budget to work on your health
Your 30s are the gate way to middle age and with this in mind, it is important to start attending gym. As you approach your 30s, your metabolic rate lowers. This results in poor digestion and increased rate of obesity. Obesity has been known to have several negative consequences – notably high blood pressure, diabetes, cardiovascular problems and sleep apnea among others. You can lower the above risks by allocating a monthly budget to work on your health.
At the gym, you can engage in various forms of exercises which are geared towards improving your health. You can work out on your upper body and lower body too. What does this mean? When it comes to improving your upper body, it’s all about toning your triceps, biceps, chest and stomach. Your lower body covers your thighs, hips and calves. There are several health benefits to attending a gym. They include
a. Decreased risk of diabetes, high blood pressure and high cholesterol
b. Improved mental health
c. Improved quality of sleep
D .Increased bone density
e. Improved muscle tone and body physique.
When you engage in an hour of cardio training followed by another hour or two of weight training, you will lower the risk of many health conditions. This is great for you as you approach the middle age and retirement because it eliminates the need of frequent hospital visits. What does this mean to you in terms of your finances? You don’t have to spend much of your money paying for medical bills instead you will spend it traveling around the world with your spouse.
Final Thoughts
In your 30s, you still have tons of opportunities to secure yourself financially in readiness for retirement. Okay you are juggling with married life, student loans, rent and other responsibilities. The tough job market and stagnant salaries are not encouraging either. You should not lose hope. Here is what you need to do – buy or invest in real estate when interest rates are low, increase contributions to your retirement account and finally, set up a monthly budget for the gym. Doing this, will secure your future, financially.
