Your 30s are the time to supercharge your wealth journey. Even if you made some kinda questionable money decisions in your 20s, it’s not too late to turn things RIGHT around. The key? Paying close attention to the long term financial implications of the major career and family decisions many women make in this decade.
Check out these 7 ways women can rock their 30s when it comes to money management and wealth building!
If you’re not already – start investing
Wealthy women invest. Broke women don’t.
Ahhh…you knew this was going to be my first tip in this list didn’t you?! If your 20s slipped by without getting onboard with investing, your 30s are definitely the time to begin. If you haven’t spent it already, you can even get started with your tax return this year.
Investing isn’t the big, complicated deal you might think it is…and it certainly isn’t just for people who already have money or went to uni to study finance. Anyone who wants to truly transform their financial future can learn how to invest.
Oh, and in case you missed my recent post – women actually make better investors than men. They don’t lose their cool, know when to cut their losses and build their portfolio for the long game.
Pay off high-interest debt
Dealing with a bit of a credit card hangover from flashing the plastic a little too frequently?
Your 30s is definitely the time to clean up your credit card(s) and any other high-interest debt you have hanging around.
Getting the debt monkey off your back as early as possible in your 30s will help you clear the slate and free up cash for investing and saving in the decades to come.
Being in debt doesn’t have to be a way of life; even if every other person you know is in debt, you can choose a different path!
Plan your career moves to maximise your earning potential
Let’s assume you’ve been in the workforce now for more than a decade – how’s your career tracking? Finding ways to increase your earnings means you’ll have more to invest and save.
Are there better-paying career opportunities? How can you invest in yourself – books, courses, etc – to take your earning potential to the next level?
If you’re serious about wealth building, you’ll want to build multiple income streams. Having various avenues for money to flow to you is one of the most powerful ways you can create more financial security. It could mean starting a side hustle or taking a part-time job.
Get clear on how a baby will impact your financial situation and… prepare!
Do not underestimate the huge impact having kids will have on your financial world. Especially in the early years when you might choose to stay home or return to work part-time. If your 30’s are the time you’ve decided to start a family make sure you sit down and crunch the numbers.
Consider how taking time off work will impact your household income and put together a new spending plan based on what your money life will look like in bub’s first year.
If stepping back from full-time work to start a family is in the plan you might consider getting a side hustle started. It can bring in an income but allows you the flexibility to be at home to take care of family priorities.
Investigate what government entitlements are available to you, including family tax benefits. Do some research into what you may qualify for, the limits, thresholds, and process for application. Even if it seems like a small amount, it can make a difference, and if you are eligible then you should claim your entitlement!
Don’t leave your superannuation account out in the cold
Following on from the earlier point, if you are planning to have a bub, don’t neglect your superannuation.
While you’re on paid maternity leave, your employer will continue to make contributions to your super but when you transition to unpaid leave, these contributions stop too. Take a look at your spending plan and figure out if there are any areas you can trim expenses to continue contributing to your super account.
One of the reasons for the superannuation gap between men and women when they hit retirement, is mums taking time out of the workforce to care for their families. According to a 2018 report by the Australian Bureau Of Statistics, women aged between 55 and 64 have an average of $196,000 in the bank, compared with $310,000 on average for men.
Don’t increase your spending with wage increases
In your 30s, you might find you have more discretionary income thanks to a higher wage than you did in your 20s. It can be tempting to up the spending ante to match. We all need to give ourselves a little room to spend on the things we enjoy but just because your income has bumped up, doesn’t mean your spending should too.
Don’t get confuse a high income with real wealth or let a YOLO mindset derail your finances in your 30s. It will keep you in a cycle of money stress because you’re making short term financial decisions that have long term consequences.
Communicate about money with your partner
Whether you’re married or in a relationship where living expenses, savings, and debts are shared, make your money expectations clear from the start.
The truth is, the life partner you choose can have a huge impact on your finances – for better or for worse. A spender and a saver can have a successful financial life together but only if chats about money and financial goals are a regular part of your life together.
It’s no secret that money problems are a major cause of relationship blow-ups and breakdowns.
Get clear with your partner on what the money situation is at home. Get the facts, understand any risks to your financial security – both now and in the future, and put plans in place to manage those risks.
Let us know in the comments how you are taking control of your money, and you don’t have to be in your 30s to be taking charge 🙂
You can now get on the waitlist for The Wealth Academy – COMING SOON! Just click on the image below and you will be one of the first to know when it is open for enrollment.