3 Ways To Start Planning For Your Future In Your 30S
When you reach your 30s, you should no longer just be planning for the present, you should be planning for the future. Planning for the future means that you are making financial decisions that will benefit you down the road, and not just in the present. It is time to let go of instant gratification and start planning for the long-term.
#1 Start That Savings Account
It can be hard to talk about investing in your future when you do not even have a savings account. All that talk about having three or six months worth of emergency funding saved up can be overwhelming as well, so start small.
First, make a goal of opening up a savings account. In order to save, you need somewhere to put the savings. Try to open a savings account that will not charge you any fees so that your money can grow, not shrink.
Then, set a goal of saving up a $1,000 dollars and give yourself a reasonable amount of time to get there. Maybe you give yourself ten months and set aside $100 every month. Make it small and achievable.
Once you reach your goal of $1,000 dollars, set your next goal. Maybe you want to increase the amount you contribute to your savings by $10 each month. Keep setting small goals until you reach that big goal of having a few months worth of income saved up. It is okay if it takes you a few years to get there; the point is to build on your savings.
#2 Start Investing
The next thing you need to do is start investing. There are lots of ways that you can start investing nowadays. There are apps that you can use that will take the "change" left over from each transaction and invest it for you. There are apps and companies that will help you start investing with as little as $3 a month. There are apps that allow you to trade penny stocks.
You don't have to have loads of money to start investing. You just need to start contributing some money to growth and you need to start understanding and learning about the different ways that you can invest your money so as your income grows over the coming decades, you are able to invest more.
#3 Set Up a Retirement Account
Finally, by your 30s, you need to have a retirement account. If your employer doesn't offer a retirement account, you can set up a sole 401(k) account where you contribute pre-taxed income. You can set up an IRA account and contribute after-tax income that you will not be taxed on in the future. The key is to make sure that you have some sort of retirement account that you are contributing towards.
Contact a financial planning service for more help.