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Hit the Dirty 30? Three Reasons Your Financial Plan Needs to Grow Up, Too

Hit the Dirty 30? Three Reasons Your Financial Plan Needs to Grow Up, Too

You may have partied, traveled and danced your way through your 20s, but when you hit that “Dirty 30,” it’s time to start playing like an adult. Adults manage money conscientiously, spending and saving in ways that reflect their lifestyle, goals, and responsibilities.

Everything changes as we mature and our financial plans should, too. In case you require convincing, consider the following truisms that apply in your 30s:

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It’s not about you anymore.

At least, not entirely. Whether that special someone is a significant other, family member, or pet, chances are good that you will acquire some financial responsibility for another living, breathing organism as you mature. Giving to those you care about is a magnificent feeling. Keep it a blessing, not a burden, by putting aside small sums each month to help you give in the manner you desire.

Financial planning includes more than investments. Be sure you are aware of the location and contents of important papers, such as wills, of those you may find in your charge. While you’re at it, check that your own documents are up to date and stored in a safe location.

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If someone or something is dependent upon you financially, it is also a good idea to look into types of insurance that may protect you and them in the event of an accident. Can you afford the bill for a medical or veterinary emergency? If something happened to you, would those you leave behind be left without a home, vehicle, or income? Talk to your financial institution about property, medical, vehicle, and life insurance; remember to ask about bundled rates or discounts for multiple services.

Still staggering under student loans, or taking a hard look at your credit cards and panicking at debt? Meet with a financial planner to discuss how to get back on track, and commit to your plan. Minor lifestyle changes can add up to big progress in paying off debt.

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Studio apartments eventually lose their charm.

Cramming the best Ikea has to offer into 600 square feet is utilitarian when all you need is a crash pad. As you develop personally and professionally, however, you will at some point want to live somewhere with enough space to welcome family and friends. Perhaps your profession will require you to see clients at home from time to time, or your boss may stop by. Forget what you want; if you have kids, you’re flat out going to need more space!

Space, of course, takes money. So does the security that comes with good neighborhoods, and furniture that doesn’t break if you lean on it too hard. Even if you are rolling your eyes while you read this and thinking that kids sound like a party-ending curse, start setting aside money for a living upgrade, now. When something perfect comes on the market, or you suddenly meet the man or woman who makes you want to build a life together, you will regret not being ready. If it helps ease the transition, think of it as the fund for a bigger and better bachelor or bachelorette pad. However you label it, start saving!

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One day, it might be nice not to work.

Retirement, that siren song reserved for your parents and “old” people. Right? Wrong. Retirement is a goal that should be on your mind now, along with an awareness that as Social Security and other benefits slowly disappear, retirement is a goal an increasing number will never reach.

If you have any aspiration of reaching retirement comfortably, you must start planning now. Look into 401(k) options at your job, or open a traditional or ROTH IRA and do your best to maximize your investment each year.

Ready to get going?  Check out the 14 Important Steps You Should Take To Free Yourself From Debt.

Featured photo credit: seniorliving.org via flickr.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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