As an investment firm, we spend a lot of time talking to clients about their future and how we can help them achieve their financial goals. From these discussions, we’ve learned that many people in their 30s tend to share similar investment goals. Many dream of owning their homes, living comfortable lifestyles, and seeing the world. They also dream of giving up work and retiring as early as 40. During these discussions, we’ve also talked to clients about what they need to do to achieve their financial goals.
In this article, we’re going to share some of those ideas with you. As you might have figured it out, it isn’t going to be your typical article about what goals to set, and what to strive for in your 30s. It’s going to be about practical, realistic changes you can make to improve your financial outlook.
Step One: Start Planning Your Future
Most people have some kind of financial goal in mind. These goals are usually based on each person’s individual situation and where they find themselves in life. For instance, at this age, you probably have friends that have started a family and bought their first house. You probably also have friends that are single and working on building a business empire. There are lots of paths to choose from.
My point is that, at this age, you’re probably thinking about your future and what you want to achieve in life. It’s great to set goals. It’s also great to keep in mind that these goals may also change as your situation changes. After all, the older we get, the wiser we get, and it’s the same with our goals. Either way, it’s good to have a plan.
Step Two: Make Small Practical Changes
Get Smart With Your Debt
If you have taken out loans, then that’s the best place to start. First, take a look at each of your loans and ask yourself why you needed them in the first place. Even though this might be a boring task, do it anyway and make sure you write down the exact reason for each loan. You see, many financial gurus advise you to pay off all your debt, but there is actually a difference between good and bad debt.
If you have been taking out loans to enjoy life and explore new places, then this is probably the kind of debt you could probably look at paying off first. If you have been taking out loans to start or grow your business, then this is an example of the type of debt you could probably look at paying those off more gradually. After all, it’s never been cheaper to borrow money, and this means it’s actually a good time to invest in your company and take out business loans.
Set Up An Emergency Plan
It helps to have an emergency fund. That way when you have financial difficulties, you will be able to manage them. Many financial experts recommend having enough money to live off for 3 – 6 months. However, we recommend having enough for at least 9 – 12 months. This is because of inflation which, depending on where you live, could be anything from 5.5% to 12%. You need to take into account that prices are going up and save accordingly. That said, you don’t have to put all your money into your savings – you just need to be smart with your money and how you spend it.
Step Three: Start Investing Money
Take as much risk as you can stomach
Now, this probably contradicts everything you’ve read elsewhere. When it comes to your 30s, most people say that the best thing you can do is save money and pay off your debts. I agree, to an extent. But saving money won’t help you achieve your long-term financial goals. If you want to make more money, then you also need to start investing. And If you think of all the rich people you know, you’ll probably find that they got rich by taking risks and investing too.
Make the most out of your money
As I’ve said, the important thing here is investing. Keeping your money in a bank won’t make you rich – it will just make the banks rich. And keeping your money in savings accounts certainly won’t make you happy – it will just stop you making more money in the long-term. That said, if you plan on keeping your funds with your favourite bank, then there are a few things you need to know. At the moment, inflation rates are higher than interest rates. That means even though you will make a small amount of money from your savings account, it won’t be enough to cover your increased living costs. That’s the harsh reality folks. Whether we like it or not, these are the times we live in. So, realistically you need to find a better way to put your money to work.
Now, you’re probably thinking that putting your money in a bank is safer than investing it. But if your money is in a bank, then in real terms, you’re actually losing around 10% per year because of inflation. You’re essentially paying money to feel safe. On the other hand, with investing, you’re giving yourself the chance to make money. You have the opportunity to build a successful business, one that you can pass onto the next generation. Or you have the opportunity to live the lifestyle that you’ve always wanted. For example, investing in a crypto portfolio can give you up to 10X the return. These are just some of the many possibilities you’re missing out on when you decide to keep your money in a bank.
Get Help From An Investment Firm
Having help can significantly improve your long-term financial outlook. It can also help you produce an extra 5% – 7% in additional income. Getting that help can be as easy as hiring a qualified individual or purchasing services from a licensed firm. One of the most rewarding things about working with a professional company is that they do everything for you – freeing up your time so that you can concentrate on other things. At Mayfair Markets we specialise in helping individuals, families and institutions to increase their income , whilst providing them with solid capital protection levels. We also specialise in tailored investment solutions, so at the very least, you can explore investment options that are tailored to your goals and to your risk tolerance.
We all dream of a better financial future. By planning ahead and investing money in your 30s, you can improve your financial wellbeing and work towards achieving your long-term financial goals. For more information about investing, feel free to check out our other blog articles. For more information about our services, feel free to contact us anytime.