In this article, we will take a look at a few personal finance tips which should be taken to heart by anyone in their 30's. The time between the ages of 30 and 40 are of the utmost importance, as this is the time when decisions will affect your long term financial goals, including retirement.
1. Pension Plan
If you are in your thirties and still haven't implemented a pension savings plan, you are asking for trouble. Failing to do this before the age of forty will leave you with an insufficient amount of time to build to an acceptable level before retirement. Attempt to join a government or business related plan as they are most likely to contribute a percentage into your plan as well, or even match it.
These plans are sometimes called a final salary scheme. This is where the provider agrees to pay out a pension to you that is determined by the last salary you had before leaving the company, as well as the individual contribution you were making to the pension plan. That means that the quicker you get started, and the higher your contribution, the larger your pension payout will be.
2. Property Investment
Another personal finance tip is if you have hit your thirties and have yet to purchase property, now is the time. You may not have been able to purchase while you were in your twenties, but this is ten years later now, and you should have plenty of savings to go towards a down payment. A larger down payment will mean a lower down payment and usually a lower initial interest rate. If something sounds too good to be true, you can always do free people search and background checking on the person promising the deal.
As you get older you will find the need to downsize. At that point, you will probably have built up quite a bit of equity that can be used to live comfortably. If you decide to wait until you hit 40 before purchasing you will be making mortgage payments until you are 70 or so and not be able to retire early and enjoy the profits. Additionally, mortgage insurance that protects against disability or health issues will be far cheaper at 30 than it will be at 40.
3. Life Insurance
The cost of life insurance increases with every passing day due to the fact that your risk of serious illness or death increases each day. If you haven't looked into life insurance yet there is no better time, as it will never be cheaper for you than it is right now. No one wants to consciously think about death, but you can't ignore it.
If you do, and something unforeseen happens, you will leave your family with a huge financial burden. The difference between the cost of life insurance at age 30 as compared to the cost at age 40 is about $600 per year, on average.
There you have three personal finance tips for those of you in your 30's. Please take them to heart and take action now and not wait until you are in your forties. If you do, these tips will be a LOT more expensive!