| Eve & Elle Admin
By featured writer: Angela Ward
#1 Think About Your Financial Goals and Make a Plan
The first thing you need to do is figure out what you value most, and prioritize what matters;
- Is it investing in your children’s education?
- Saving for a retirement fund?
- Curbing your spending?
- Paying for your mortgage?
Asking yourself what is important will help you define your short and long-term goals, which will help you focus on what areas are most crucial.
With this knowledge, make a financial plan that’s realistic and effective. Consider factors such as:
- income (especially if one spouse is on maternity or paternity leave)
- stocks, bonds and/or mutual funds
- personal residence
- any debt
- personal loans
- mortgage loan balance
- student loans
#2 Consider Buying Insurance
Another thing you should do is consider investing in insurance to cover the bigger things you would not be able to pay for out of your savings, life insurance or legal aid insurance. Investing in insurance in your 30's is a smart move. You’ll rest assured with the knowledge that your loved ones and assets are protected, no matter what happens.
Plans have term and permanent options, and some plans allow you the option of converting a term plan to permanent (without asking for medical information or a medical examination). Your 30's are a prime time to invest in critical illness insurance while you’re healthy and if your health or occupation change down the road, many plans still guarantee coverage up until you’re 75 or 100.
#3 Set up An Emergency Fund
Set aside three to six months of available funds, in case of events like job loss or sickness. This will give you peace of mind and if anything does happen, you lessen stress and worry by having funds to cover costs. You can also use a line of credit and set that aside just for emergencies.
If you decide to use a line of credit though, resist the urge to draw money from it for short-term goals, such as vacations. If you look at your emergency fund with a long-term focus instead of a short-term one, then you’ll be able to use the funds for things like your child’s education or your business.
#4 Create a Will
When you settle the future with a will, you have one less thing to worry about and leave room for other priorities.
Wills name the inheritor(s) of your property, assign an executor to handle your estate, name guardian(s) for your children, manage debt and distribute possessions to your spouse. By doing this, you’re taking control of your life and your assets by deciding who gets your property and how it’s managed. Your legacy can also live on.
A will also allows you to make gifts and donations, investing in causes and groups that matter most to you.
You also have the freedom to change your will at any time.
#5 Become Financially Savvy
Now is the perfect time to up your game and learn more about financial planning. The more you know, the better prepared you are and the more confident you’ll feel about the decisions you make with your money. Here are some ways to brush up on your financial know-how:
- Read articles, books and blogs on financial planning and advice.
- Talk to a financial adviser about your questions and concerns.
- Take a financial literacy class.
- Listen to talk radio or financial podcasts.
Your 30's can be a delicate balancing act. You’re paying for a wedding, focusing on your career acceleration, monitoring your expenses, or saving for that far-flung vacation …Your financial plan should also be balanced.
It’s about taking risks, but also about minimizing others. Investing where it counts, but also saving where it matters.
What About you?
Have you made a financial plan yet? What do you value most when it comes to short-term and long-term financial goals? Share your thoughts with us, we’d love to hear from you!