5 Things To Do in Your 30s for a Better Future

Are you soon to be turning 30? It might be safe to assume that by now perhaps you might have crossed a couple of milestones in your career, reached mid-management level or senior management, or perhaps have left everything to start your venture and are now seeing it reap in rewards. You might have the expertise of many things but the question would be do you know about your own money? Are you in control of it yet? If not, here are five must-dos for financial planning and wealth management in your 30s.

Accelerate your Debt Repayment Process

If you have an education loan or any other kind of personal loan, it is a good idea to repay it as early as possible. Personal or consumer loans are expensive. Financial professionals do not recommend taking loans for spending on products that give you instant gratification. The saying goes if you cannot afford it, you should not buy it and this advice holds up most of the time. Your repayment of current loans heavily determines future loans and a good credit score may help you in the future also you paying more than your premium will lessen the amount of interest incurred on the borrowed money.

Increase your Savings Account

In your 30s, you are more likely to be earning more than in your 20s. When you have more disposable income, do not end up spending more extravagantly. You should start increasing your savings amount in your savings account. You also get to take the benefit of compounding interest. Hence, the sooner you start saving, the faster your set of money will grow. In your 30s you need to start allocating funds for long-term goals such as buying a house, children’s education, retirement, and any other long-term goals that you may have.

Insurance Products

Life insurance is an essential part of any individual’s financial portfolio. Especially if you are in your 30s, your responsibilities increase or will increase further. The best age to buy a life insurance policy is 35 because you pay lesser premiums and get a larger sum insured. It is cheaper to purchase life insurance when you are in your 30s with each year that goes by your life insurance premiums increase. Besides, it's hard to predict when your health condition would be in the future. Purchasing life insurance now in good health can save you quite some money.

 If you have already purchased a life insurance policy, take a relook at your insurance policy. Understand the returns on each of the policies you have in force. See if you are adequately insured. If you are not then you will have to adjust your insurance policies. As a rule, your sum assured should be at least 10 times your annual income. Next, you should check your medical insurance policy. If you do not have one, it is highly advised you buy one even if your employer has provided you with an insurance cover.

You should also do the same if you have critical illness insurance. If you do not have critical illness cover, it is often advised that you buy a critical illness plan at a young age. Buying at an early stage (the 30s) helps as health risks are less and so are the premiums.

Structure Your Investment Portfolio

When your insurance products are in a structure and you have adequate protection, do the same with your investment portfolio. Diversify and rebalance your investments. Once in your 30s, you can take more risks overall. We recommend sticking with mutual funds and exchange-traded funds. They offer much-needed diversification at a relatively less cost. Index funds are simple and relatively stable, making them a good choice for the core of your portfolio. Depending on your risk tolerance and comfort level, choose the products that best suit you. If you are not able to do that on your own, we provide consultation or you can seek assistance from other sources. You can also check with financial professionals, who will help structure your portfolio for a fee. At this age, you should invest most, if not entirely, in stocks because of their greater potential long-term gains.

Spend on Good Things

Wealth management does not mean that you only save and do not spend. The purpose of building savings and investments is to ensure that you can do things that you love. For instance, if you plan to travel every year to an international destination, you should be able to finance that trip without any financial stress. You can set short-term funds to fulfill your short-term goals. Know the difference when to spend and when to not. Moreover, you must explore different savings and investment plans to help you with better money management in the future.