Last Updated on August 12, 2022 by HodgePodgeDays
Throughout life it is important that we have a good understanding of our finances so that we can save for our future. While you should always be financially aware, turning 30 is a real landmark and many people consider it to be the age when you finally reach adulthood. There are so many articles online that list certain things you need to do before you turn 30, but often these articles fail to give out any financial advice. If reaching 30 is truly the mark of becoming a ‘proper adult’ then you need to start learning more about finance and what things, you can do to improve your chance of a successful future. In this article, we will go over five different financial lessons you should know before you turn 30, so keep on reading if you want to find out more.
Learn How To Make Budget
One super important financial lesson you need to learn in life is how to properly budget. Being able to make a proper budget and then being able to stick to it is an extremely valuable lesson that you should learn before you turn 30. While the concept of making a budget may seem like an easy task, when it comes to factoring all of your outgoings and putting money into savings, it can get a bit trickier. When creating a budget, the first thing you need to do is write down a full list of all of your incoming and outgoing. Then you should jot down how much money you want to put in your savings account and start working out your fun money for the month. Your fun money will count all things like going out to eat, drinks, clothing etc. Although you are making a budget, you should still allow yourself some fun money for a month as you still want to have fun.
Be Aware Of Your Options
Another thing you need to be aware of before you turn 30 are the financial options available to you. Many people assume that unless they have the best credit and lots of savings, they will not be able to save and buy something like a house. Buying a house is a dream for a lot of people, and a lot of people want to buy one before they turn 30. The idea that you have a good credit score can put people off, but you can still get a mortgage even if you have bad credit. Bad credit mortgages from Money Nest make it super easy for people who have poor credit to apply and get accepted for a mortgage. This could be a great option for people who want to buy a house but are worried about their credit score.
Don’t Spend Your Whole Paycheck
When payday comes around, and you see that money in your bank account, it can be very tempting to spend it all at once. However, a good financial lesson to learn is to spend about 90% of your paycheck and then save the 10%. This is a super easy tip that can help you save a lot of money each month, so it could be worth trying and seeing if it works for you. Of course, not everyone is privileged enough to be able to save some of their paychecks, but if you think you could live off of the 90%, then why not give it a go for one month and see if you can manage.
Create Some Financial Goals To Aim For
Having some financial goals is a great way to manage your money and start putting money away. If you are just spending aimlessly, then it can be tricky to start to save as you have no real goal to aim for. So, if this is the case for you, then it would be a good idea to sit down and work out your financial goals. It could be that you want to buy a house, or you want to purchase a new car Whatever your goals are for saving, make sure you have them clearly in place as this will give you something to work towards.
Split Your Savings Into Categories
Often, when people put money into savings, they pile it into one melting pot and then dip it into it whenever they need it. While this may work for some people, it could be more useful for you to split your savings into different categories instead. Having the different categories will help you manage your money better as you can clearly see how much money you have saved for each category. If you find that you struggle with saving in general, then it could be helpful to use an app instead, as it will do all the heavy lifting for you. Apps can be very helpful as they can sort out everything for you, so if you aren’t great with finances, then this is a good option for you.
This is a contributed post.