Exiting your 20s soon? Learn what you need to have in hand by age 30 for better personal finances. 

Milestones like turning 30, cause people to reflect on their life and appreciate the changes they’ve experienced. You may have progressed from student to established worker over the last decade. Your lifestyle has probably become a little more restrained, and your waistline has become a little less youthful. There are certain benefits to growing older, and one of them could be a better financial status through better personal money management practices. The beginning of a new decade is a good time to assess if your money has kept pace with your life changes.

Your next decade is going to pass by swiftly. Before you know it, you’ll be touching 40.

Before that happens, let’s see what are goals you should have achieved by age 30.

#1. Have a Retirement Plan

In your early 20s, income was tighter and retirement seemed a long way off. By the time you hit 30, the situation is different and a retirement fund you are consistently contributing to monthly is necessary.

Your 30s will pass fairly quickly and before you know it you’d have hit 40.

Retirement planning basics for young malaysian adults is something you should have in hand. If you have not yet familiarized yourself with the basics, quickly do so immediately.

Be serious about your retirement. Remember, financial institutions may offer loans for all sorts of things such as education and housing, but nobody offers a retirement loan. There’s no fall back plan if you only realize too late that you don’t have enough money. Get started today.

#2. Pay Your Bills

By 30, you should be able to pay your bills in full and on time. This applies to utility bills and also any debt you owe.

Why should you? Because it will affect your credit score. Your credit score is important as it is what banks use to determine whether to lend you money in the future or not. It is worthwhile to work on improving your credit score while you can.

Start your debt management by paying off any outstanding high-interest debts starting with your credit card debt. After you’ve paid off all of your credit card debt, you may focus on paying off your auto loan debt, student loan debt, personal bills, and so on.

#3. Create An Emergency Fund

You must maintain an emergency reserve that can cover unexpected bills. It’s preferable to have an emergency fund that covers three months’ worth of living expenses, but this varies depending on circumstances.

It’s easy to put off an emergency fund because it’s not a payment you have to pay. It’s a good idea to set up automatic installments to an emergency fund savings account so that you can make regular contributions.

To begin, set aside a tiny portion of each paycheck. Create a weekly savings goal of RM40, which equates to RM160 per month, and gradually increase your weekly savings target as you gain confidence.

And, no, it is not a good idea to use your credit card as your emergency fund.

#4. Have or Plan for Multiple Income Streams

Having multiple money streams, no matter how tiny, is critical. This might be a tiny part-time job or as simple as receiving dividends from stocks you own. In any event, you should by now at the very least have a secondary source of income in addition to your primary job.

There are 4 different types of income you should strive to have. Even if you don’t have them yet, start your 30s by laying out realistic plans on making them happen for you.

#5. A Working Knowledge Of Personal Income Taxes And How To Reduce Your Taxes

By now you should already filed your income tax a few times. To level-up as a savvy tax-payer, understanding your tax bracket and the credits available to you will result in more money in your pocket each year. Understand the rules you have to go through in terms of personal finance in Malaysia. Make sure you’re paying money to LHDN and taking advantage of all other applicable deductions to pay the least amount of taxes possible!

#6. Consider Upskilling

Maintain your education and marketability by continuing to learn!

Figure out what fields you’d like to upskill. Then, consider returning to Community College, online schooling, part-time classes, or online learning repositories. There are numerous possibilities available, and it never hurts to broaden your horizons.

#7. Protect Your Life

Getting a life insurance policy when you’re in your 20s, when you’re in good health, might be a lot less expensive than waiting until you have health concerns.

On top of that, be sure you have sufficient insurance coverage for yourself and your family for other aspects as well.

If the thought of health crisis worries you, take time to make time to make healthier lifestyle choices. Park far away from your destination and squeeze in more steps. Drink more water. Choose healthier food. Get enough rest. Every little bit you do now may have long term consequences.

#8. Make A Will

Life is unpredictably unpredictable. Being ready for the unexpected is always a smart idea. Take the time to write a will so that it will help guide any critical decisions that will need to be made if you pass away.

You can start with a simple DIY will if you are reluctant to engage the professionals.

#9. Have Regular Money Conversations

Money conversations can be utilized as a moment to reflect and bring clarity about your priorities and your choices. Talk to a few trusted individuals. Listen and evaluate their points. Work out your ideals with words. Maybe after you’ve finally described your goals, you may realize it’s not quite what you want or need right now.

If you’re in a committed relationship, it’s critical to develop a clear understanding of your and your partner’s financial objectives too. Having a discussion might also help you organize your finances.

#10. Consult A Financial Planner

It can be daunting to deal with financial difficulties, correctly budget, account for unforeseen expenses, pay off debt, and plan for the future. But you don’t have to go it alone.

Speaking with a licensed financial advisor can be beneficial at any stage of your life. Financial planners can assist you in setting realistic goals, determining what it will take to achieve them, and laying out a plan of action. This is a pivotal decade that has the potential to completely change your financial trajectory; gaining an outside, expert perspective can help you achieve your objectives.

Conclusion

Reaching 30 is an exciting milestone. Things are no longer scary or shiny new to you. It’s time to take control of your life. Own your choices and own your decisions. No longer should you say “because someone else does it too” or “because my parents said so”. You’re very much the full-grown adult, far beyond the age of maturity (21).

If you want a good life without being struck by money woes, take charge of your personal finances today. You can do it.

 

What other important lessons should a 30 year old know? Share your thoughts with us in the comments. 

 

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