10 Financial Rules Over 30s Should Follow

When it comes to your finances, do you take a head on head in the sand approach? The new data suggests that when it comes to managing money, women are not as independent as you`d expect. Around 91 % women do not participate in financial decisions. As women now are doing all the things, they are working in offices and doing labor work then why should they lack behind in managing financial plans. To help you become a master of your own finances, we are presenting a new series called The Paper Files, where you will be guided with the tricks and tips that will help you manage your money and your future. So have you started saving for your retirement? Most families have little or no retirement savings. Savings are very important because you don’t know what could happen to you in future. The median retirement savings of families between 32 and 37 is around $31,644. But if you have plans of retiring by the age of 67, then you should have 10 times your final salary savings. I am sure that you don’t want to retire by the age 30, you won’t have enough financial plans to help you in future and this is the right age for you to plan for your financial fitness. Providing you the considerable measures you should do in order to plan your finances.

Be Prepared For Emergencies

In addition to retirement, you should also have a savings fund for emergencies by 30 such as getting sick or losing your job. What financial advisers generally recommend is that you should have six to 12 months of living expenses saved in your emergency funds, covering your rents, bills, and other necessary living expenses. You should assume that you don’t have other incomes coming in.

Anticipate Your Expenses

When you have a backup plan for unexpected events such as losing your job, you should also consider the extra expenses like if you are an owner of a midcentury house, your house must be needing some attention like the roof may need to be repaired or perhaps the washer/dryer set of yours is on its last legs. You should be prepared for such issues way before and don’t let these things come as a surprise. You should have a large purchase reserve in your savings to cover the anticipated costs.

Avoid Debt

No matter how much you earn, living within your means should be your first priority when you`re budgeting and spending.  Avoid buying products that you can’t afford and you have to sign a lease in order to get those products. You won’t be able to save money as all the savings would spend it on debts. Credit card is very useful these days; you don’t need to carry a large amount of cash in your pocket as credit cards have a limit that is enough for you to purchase the products. Avoid making credit charges you can’t pay off within the month, unless they are important and big investments such as refrigerator that you can use for years.

Don’t Spend Frivolously

Create a budget plan for yourself, and know how much you are allotted to spend with in each category. You might want to buy expensive things such as a handbag that you have dreamed of or getting a loan for a house that is out of your budget. These things aren’t wise financial decisions. Spend money according to the budget; don’t cross the budget which can cause difficulties. If you have a beer budget, don’t go for champagne. Your frivolously spending will cause trouble for you in future so avoid doing it and save your money for emergencies.

Pay Off Your Debt

Whether you have student loans, credit card debt, or personal or business loans, it should be your first priority to pay off your debt so you don’t bog yourself down in interest and other fess and so on, start putting your hard earned cash towards retirement and personal goals like buying a house or traveling the world.

Become Financially Literate

At this age you should have all the knowledge regarding financial planning. Visit financial advisers to get advice on how to save money for future emergencies and you will also be guided to new policies that will definitely help you in future. There are various policies that you can avail like health policies and policies for your precious products. Go out and become financially literate.

Protect Your Assets

Keeping your health insured is important, but health is not the only factor that requires attention. Your personal assets also require some attention. You can get affected by such catastrophes at any time, so you should be prepared before such occurrences. Think about the assets you own, and how much they could cost you if not protected.

Manage your Credit Score

Maintain a strong credit score as it is very important for your financial health. You credit score can benefit you in many ways including getting a mortgage, business loan, car loan and you could even rent an apartment. To maintain your credit score make sure you have your debts paid on time and that you are not carrying a large balance on your shoulders.

Wise Up About Your Credit Card

You might receiving mails from credit card Company in which they might be offering you tempting deals, but you should make sure that the deals present are really tempting. Getting a low-interest rate and no annual fee, regardless of anything else, is really the best thing we can do for our finances.

Consider The Cost of Children

If you are planning to have children this time you should consider things related to children. Diapers aren’t the only expenses; as your child grows expenses grow as well. Tuition fees and other costs are too high and you can expect them to rise in future. Consider all the things before you plan to have kids.