Financial Advice: 7 Things You Should Know by 30

Written by Henry Young. Posted in Business Finances

Your personal finances are either masterfully dealt with, either completely ignored, until you hit the magic age of 30. Heterosexual households where women are in charge of financial decisions tend to accumulate 91% more savings. Those households where men are in charge of these decisions only register by 82% more savings. However, statistics can be changed and everybody in a household can become better at financial decisions. Below are some tips that will help you on this journey.

#1. Anticipate your expenses

Backup funds are mandatory for everybody, regardless of their age. These can be an incredible financial aid in case of a job loss or medical emergency. Nonetheless, there are expenses that can be anticipated, and you should get better at this. Besides the monthly bills and expenses, think about the general condition of your house and the appliances or systems in it. For old houses, you should plan for a roof replacement in a few years, or an old washer replacement, some plumbing improvements and so on. These are all things that can be carefully planned and foreseen. A big mistake many individuals do is letting such issues and expenses surprise them. Well, if you want to master your bank accounts better and more carefully, don’t let those surprise you.

#2. Become financially literate

After you it 30, it’s important to master your finances. Learn about your financial responsibilities and wise up just enough to be able to see the opportunities that there are. Start your journey by reading personal finance books, attend personal finance courses and get to know better where you stand financially. Get a financial advisor, if this helps, but no matter what you do, don’t remain ignorant and illiterate to financial matters as this might endanger your financial well-being and future in the long run.

#3. Get an IVA if you are deep in debts

An IVA or an individual voluntary arrangement is an interesting formal debt solution through which all the debts that one has, are consolidated. A monthly payment is set for all of those and truth be told, the monthly payment is set at highly affordable rates. The monthly payments are paid to an Insolvency Practitioner. During your IVA, no creditors are allowed to contact you regarding your debts, but you have to meet some conditions to qualify for such agreements. 

  • You have accumulated £5000 or more in debt;
  • You have 2 or more creditors;
  • You have a regular income;
  • You will have to pay £70 or more monthly, to your unsecured debt.

Keep in mind that an IVA is not a bankruptcy statement and you have to discuss with an IVA specialised expert to get one and guide you through the process.

#4. Protect your assets

While many people already have a health insurance by the time they hit 30, what about other types of insurance policies? What about protecting your assets? Natural disasters or unfortunate events that don’t depend on you might happen. A fire, a flood, and in this case, if not insured, you will lose everything. By the time you hit 30, you should already start thinking about getting an insurance for everything of value that you own. Home insurance, car insurance, etc. As you start winning more money at your job or auxiliary activities, you will also start to accumulate more valuables. Ensure those as well. Everything matters, if you want to be covered in such cases.

#5. Children involve costs. Think of those

You may not be planning to have a child this year, but you may end up having one in the next decade or so. Well, children involve plenty of expenses. Now it’s time to start thinking of those expenses and start saving money for this purpose. Save up for potential prenatal screenings if you are a woman, if you are a man, start thinking about tuition costs and diapers. They surely add up and you want to be prepared, when the time comes. For many, it seems futile to have savings for this purpose, but if you carefully think of the costs involved by having children, the reasons become clearer.

#6. Dich your credit card

You may receive tempting credit card offers in your mail, but is it really worth it? Even if you decide to get another credit card, do your research well. There may be hidden interests and yearly fees that you haven’t planned for at the moment of opening that particular card. So, regardless of the apparent benefits, carefully think about it. Shop around, do your research and decide on the best solution for your particular case.

#7. Stop that frivolously spending habit

Until you hit 30, you will most likely be tempted to spend in your left and right on things that that you don’t need. After that age, plan ahead and spend money on the things you need. You can still spend on some personal pleasures but be wise about this.

These are our seven pieces of advice every adult over 30 should follow when it comes to their finances.