top money tips for your 30s
Many people say that their 30s are the best years of their life, and we hope that’s 100% true in regards to your money too! Your 30s are a great time to get your financial foundations sorted and start investing for your future.
Check out the episode where Glen and John shared their top money tips for your 30s, but remember to consider your own personal circumstance with these tips – adapt these to suit your situation:
#1 give yourself grace for past mistakes
When you hit your 30s it’s not uncommon to reflect on what happened with money in your 20s and feel some sense of regret. Hindsight is a beautiful and frustrating thing. Are you looking back on mistakes you made with money? You are definitely in the majority. Money mistakes are a common denominator that tie us all together. Your 20s are a time to have fun, start using a money system and mistakes are a part of the process. Success is full of failure, as they say.
But these “failures” are also where we learn the most. What did your mistakes teach you about your behaviour with money? How can you set up guardrails for the future to prevent those mistakes from happening again? Give yourself grace, and know that basically everyone has made some kind of error with finances. Good news is, you have time to recover!
Keep these things in mind:
focus on moving onward from whatever mistakes you made. Success is when you find a way to move up and out!
remember that you don’t know what you don’t know. If you didn’t receive any instruction in how to manage money, how can you expect yourself to know what to do with money every time you were paid? Give yourself some grace. We all start somewhere. How much do you wish personal finance stuff was taught at school, right?
use your 30s to turn things around! Now is the time to acknowledge the mistakes of the past, know that you are human and mistakes are natural, AND there’s a bright future ahead. You can do this! You are not defined by your mistakes, you’re defined by your courage in turning them around.
#2 know thyself
Make sure you’re doing what you want to be doing;
Are you happy with where you are at in life?
Do you love your career/business?
What are you loving about life, and what is hard?
Are you confident in who you are and where you want to be?
The rest of your money strategy will sail so much smoother if you’ve figured out who you are and where you’re going (it’s especially helpful if you can figure this out pre-kids! Life gets a LOT busier lol).
Set aside a day to dream – have a brainstorm and reflection day where you word-vomit your life aspirations and goals onto paper. Don’t be embarrassed – own it! It’s your life, so live it.
If you’re struggling with mental health issues chat with your GP and see what support is available to you. It’s totally ok to be facing some mental health challenges – many people do – don’t be ashamed, seek support and chat with your GP.
#3 keep refining your life strategy, and prioritise accordingly
What do you want - truly?
What do you value?
How can your money be contributing to living out your values?
Ten years is a long time and so much can change. What you wanted at age 21 could be completely different now that you’re 31. Entering your 30s is a great opportunity to re-evaluate your goals, where you’ve been heading, and ensuring that still rings true for you. Think through your overarching goals, and brainstorm the strategies you can use with you money to start achieving those things, one week at a time. Try this exercise to get things moving: identify a goal and then think of one regular habit that can help you achieve it.
#4 get your money under control & get out of debt
So what were your 20s like financially – a little loose maybe? Don’t stress. Start simply – step back and check that your money management system is working. Don’t feel embarrassed, don’t feel stupid – just bring it all out and use this to learn. Check out the Glen James Spending Plan if you’re looking for somewhere to start.
Ask yourself these questions as you audit your expenses:
What’s my income every week/fortnight/month?
What are my expenses compared to this income? How does this compare to my income?
Am I overspending?
Can I either increase my income, or decrease my expenses?
Which expenses can be cut?
Where do I WANT to be spending my money, and how can I prioritise those things?
Can I free up money for saving, investing or giving?
Also take stock of your consumer debts – credit cards, personal loans, buy-now-pay-later schemes. This debt impacts you in a few ways – it soaks up a bunch of money you could be saving or investing, it chokes your cash flow every time you get paid, and it impacts how much you can borrow if you’re looking at buying a first home. Not worth it right? Once the debt is gone reassess your spending plan and check out how much cash has been freed up to direct to things you value.
#5 get your foundations sorted
Glen James has made a sound financial house diagram which shows you how you can set up your financial life from the ground up.
Start at the bottom and work your way up. But remember that everyone’s story and priorities are different so don’t worry if things have happened slightly out of order for you. This is a handy guide for what areas to tick off your checklist when getting your financial foundations sorted.
Click below to read a break down of each of the areas included in the sound financial house diagram:
#6 invest for your future
Do the you of tomorrow a sweet favour – invest, somewhere that grows and in something you want to invest in. Before you hit go on that first investment though think critically about why you are investing. What’s the purpose? Do you have a specific goal in mind? You’ll select the right kind of investment for that goal.
Choose investment areas that you like and will grow overtime so when you open them up in a few years they’re growing. Remember that investing is for the long term, think 5+ years! If you’re unsure about what options are available to you consider things like shares and property, and jump on the TIM Facebook community to ask what others are investing in and why they like it. Listen to podcasts, read blogs, read books, get informed and choose what you like. Also check out Glen and Nick’s book, The Quick Start Guide To Investing! This is an accessible and easy-to-understand guide that helps you determine your personal reasons for investing, and outlines some of the options available to you.
#7 knuckle in on your mortgage strategy
The average age of the Australian first home buyer is now 36. Such a shift from previous generations, right!?
Property in Australia is wild, it’s become so expensive in recent years. So if you didn’t buy a home in your 20s you are in good company! Most of us aren’t buying until well into our 30s. The barriers to entry are much higher than they’ve ever been.
If you do have a mortgage make sure you’re prioritising it in your spending plan, and that you’re getting the best interest rate possible. Chat with a mortgage broker to make sure your deal is the best it can be – a mortgage is pretty big so get it right!
If you need help with finding a mortgage broker, get in touch, and we can connect you to a professional on our trusted panel.
#8 factor in family stuff
Having kids is a decent financial responsibility. You might have kids already, you may be expecting a kiddo or you may hope to in future – incorporate family planning and needs into your spending plan. It’s not just things like buying a cot, toys and clothes – it’s long term things like daycare, education, after school activities, holidays, bigger housing, medical bills, cars and insurances. You might need time out of the workforce to care for newborns or sick kids, so be prepared with how you’ll tackle challenges like that.
Do your best to incorporate your goals into a broader goal plan for the whole family – write a list of what you’d like to achieve individually or as a family and set your course to those. These goals may shift but you’ll be giving yourself and each member of your family the opportunity to share what they’re passionate about, and work together to achieve those goals. It might be helpful to set up a bank account for kid related costs and every pay cycle you pop some cash in there to build a cash pile for whatever comes you way.
Here are some podcast episodes that might help:
#9 plan in fun stuff
When you start getting serious about sorting your money out, you can forget that life is for living! Don’t forget to have some fun! Just be money-smart with how you fund that fun. Remember that European backpacking holiday you paid for using a credit card?...yeah those days can be done. Even if you’re just keen to have a staycation or a weekend away somewhere nearby, save up your cash within your spending plan to pay for it with cash! Everyone needs a break to refresh your headspace and have some fun – don’t apologise for prioritising whatever fun you want and can afford.
The same can be said for hobbies. Think through what hobbies you love, and if you’ve chosen one that costs a bit more (cough horses cough) be clever in how you pay for it — cash first. Maybe you’re into painting, fishing, pottery, studying, reading, camping, collecting typewriters – whatever it is. It’s your life. You. Do. You. Just ensure your base costs for living are covered first, then prioritise your money however you want!
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