So, you’re in your thirties and you suddenly realise that your savings account and overall financial situation are looking less than impressive.
You may even be wondering if it’s possible or even worth it to try and start building wealth at the ripe old age of 30-something.
More importantly, you may be wondering how you will achieve wealth at this stage of your life.
However, the answer is quite simple; knowing how to build wealth in your thirties depends largely on your ability to manage your money efficiently, and this is why budgeting is important.
Our financial planners have seen it happen over and over again – people start settling into adulthood in their early thirties as their carefree, fun-loving approach to life begins to dwindle.
It’s at this stage when you start to make big decisions about your future, whether you are planning to get married and start a family or to buy your first home.
What these big milestones have in common is that they require capital to start and financial stability to maintain.
With our experience as financial advisors, the only way to reach any financial goal is to formulate and stick to a monthly budget.
Furthermore, we believe that it is never too late to start. In fact, there really is no time like right now to change the way you manage your money, so that you can secure a stable future for yourself.
Establish Where You are and Where You Want to be
When it comes to achieving your goals, your budget is your best ally. It is there to help you stick to the plan so that you don’t lose focus and deviate.
However, you first have to know what your goals are and where you currently stand from a financial point of view.
Always remember that you cannot eat an elephant in one bite. Set short-term, medium-term and long-term goals. The short- and medium-term goals are your stepping stones to the final stage.
Don’t make the mistake of “budgeting backwards”. This is when you budget based on your expenses and then save whatever you have left at the end of the month.
Saving your money as a priority is how you build wealth in your thirties. Saving should be one of the first things you do every month.
If you have a specific goal to achieve, such as putting a deposit down on your first home, you can follow the following steps:
This formula can be applied to any financial goal that you have, whether it’s retirement, going on your dream holiday or starting a family.
We know it’s fun to spend your money with reckless abandon and spontaneity. Some like to overhaul their wardrobes every few months, some like to upgrade their car every year and others like to buy expensive gadgets.
However, this is a sure way to make saving your money even more difficult. So, take a minute to assess your situation and establish what you need versus what you want.
Then, cut down on what you want and focus on what you need. Spending money prevents you from saving it, and saving money is the only way to build wealth.
Furthermore, you can find additional ways to minimise the costs of your necessities. Here are some examples:
Adulthood comes with many, inevitable financial challenges – many of which appear out of the blue. Maybe your car needs a service or repairs, or your tyres suddenly need replacing or you need to fly across country to attend to a family emergency.
Whatever the case is, it’s important that you are financially prepared for big costs so that you don’t have to dip into your savings to cover them.
We know that not everyone has relentless determination to save money – we are all unique individuals with unique characteristics.
This is where our financial advisors come in. We work closely with you to understand your current situation as well as what your goals are before we develop a sound financial plan to help you achieve your biggest dreams.
We also understand that in order to achieve anything big, we must take small, consistent steps every single day and we will help you do that.
If you would like to find out more about how to build wealth in your thirties, or for more information about our comprehensive financial services, please contact us.
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