In the same way our fitness and career goals continually evolve with our ever changing lifestyles, our financial goals are no exception and need to be adapted and tweaked accordingly. What might be high on your financial priority list in your 20’s is not necessarily going to be of serious significance in your 40’s so having goals that align with your current stage of life.
Here are five financial tips to consider when you hit your thirties and beyond.
More likely than not, you will have a mortgage in your thirties (which means owning a beautiful home of course!). Your priority should be to maximise your mortgage repayments while your career is at its peak, particularly if you have a dual-income household. The time it takes to pay down your mortgage can be significantly reduced if you make fortnightly instead of monthly repayments. It also helps to keep your repayments at the same level even if interest rates decrease. The interest savings can be massive!
Your lifestyle changes significantly in your thirties, particularly if you get married and have children. As your life changes, your budget needs to be updated to reflect these new priorities. Review your budget each year at a minimum to identify opportunities to save money. For example, are you utilising your monthly gym or yoga membership, or would it be cheaper to pay for a 10-class pass? Can you save some extra cash by cooking dinner one extra night a week?
Having a family creates additional financial responsibilities, especially during times of illness or injury. Be sure to evaluate your personal insurances, particularly private health insurance. You will also save on your tax bill if you sign up to private health insurance before you turn 31. Learn more about the Lifetime Health Cover surcharge here. If you are planning to have a family, make sure that you increase your cover for obstetrics in advance, as most funds have 12 month waiting periods. As serious and unlikely as it may sound, it may also be appropriate to consider insurance cover for death and total disability, which can be paid as part of your superannuation fund contributions so you don’t even notice.
In your twenties, the priority was to save money for general things like holidays and big-ticket items. In your thirties, you should have specific savings goals, whether that is a nest egg for taking time off while having a baby, investing in your children’s future education or buying a house or investment property. Set up different savings accounts for each goal and include a monthly contribution as part of your budget. You will be surprised how quickly the balance will grow!
By the time you reach your thirties, you may have been in your job for more than five years (or even ten!). Now is the time to make your employment conditions work for you. If you are planning to have a family, it doesn’t mean your career is over. Make sure you discuss the opportunity to work flexible hours with your employer so that you can return to work when you are ready. Also consider alternative sources of income if you have the available time. Can you utilise your skills to work casually out of your normal work hours, such as teaching others? Do you have a hobby that can be turned into a business? Now is the time to explore your passions and make them count!
Is there any financial advice you’d love to know? Let us know in the comments below.
Amanda is on a mission to inspire professional women to be their happiest and healthiest self. An accountant in the busy corporate world, Amanda knows first-hand the challenges women face to prioritise their wellbeing and she is passionate about changing this mindset. Amanda proudly admits that she is a Lorna Jane addict and is dedicated to the Move Nourish Believe philosophy. She loves homemade Kombucha, Bikram yoga and lifting weights at the gym.