If you’re like most people, your finances were likely in dire straits while you were in your 20s. Now that you’re in your 30s, your financial standing might be a lot better than what it was before, but still not near where you want it to be. As you begin a new decade in your life, your knowledgeable Naples, FL financial consultant shows you four crucial financial moves that you need to make ASAP:
Establish an emergency fund
An emergency fund helps give you financial security, so if you don’t have one yet, then the time to start is now. Your goal is to have at least six months’ worth of salary in your emergency fund. As your income grows, so should the amount you put into your fund.
Save in a Roth 401(k) and maximize your retirement savings
Four out of 10 large employer plans now come with a Roth option. If your workplace has a Roth 401(k) retirement program, you need to take advantage of it. You can save after-tax dollars on a Roth, and you won’t have to pay income taxes on withdrawals, as is the case with a regular 401(k). For better financial standing, split your contributions between the two 401(k) types.
Stick to a spending budget
Seeking immediate gratification is human nature. However, you need to delay gratification if you want to achieve true financial security. You may need to adjust your budget along with life changes such as getting married or having kids. Practice self-control in your spending now, and your future will be much more enjoyable.
Adjust your insurance coverage
As your assets grow, you may need to adjust your insurance coverage and obtain additional protection. A bigger house, a bigger family—such significant changes can require better coverage. Even if your financial standing hasn’t improved, you should re-evaluate your insurance policies to confirm that you still have the best deal.
Your finances may have been a huge burden on your shoulders when you were younger, but now that you’re in your 30s, it’s time to take control and better care of it. Consider meeting with a Naples, FL bookkeeper who can help you take charge of your money habits as you enter a new decade in your life.
(10 Financial Commandments for Your 30s, Kiplinger.com)
(6 Easy Moves to Make in Your 30s That Will Pay Off Huge Later On, Time.com)