Turning 30 is a big deal for most people. It signals your thrust into serious adulthood and accepting the mundane responsibilities that go along with it.
At 30, the society expects you to have gotten your life together – married with kids, working your dream job and financial stability.
Yeah! Society could be pressurizing and expect lots of unrealistic demands, but society cannot always be wrong. 30 is actually a good time to take stock of your finances and get yourself on a responsible financial path. Here’s how.
1. Complete your emergency fund
An emergency fund is a stash of money set aside to cover the financial surprises life throws your way.
No matter your age, you need an emergency fund with enough cash to pay for three to six months worth of living expenses. This way, you’re covered if you find yourself out of work, faced with major medical emergencies or major home/ automobile repair.
If your cash reserves aren’t up to snuff, now’s the time to start making changes that allow you to fill that emergency account.
Review your budget and see if there are any current costs you can cut, trimming unnecessary expenses could free up enough cash to get you to your goal.
Another option for completing your emergency fund is to work a side hustle and bank the extra cash you bring in. So if cutting expenses doesn’t do the trick for you, then working more is a viable option.
2. Get out of unnecessary debt
It’s natural to carry some amount of debt during your 20’s. I mean we are all allowed to do more every once in a while especially in our 20’s. But as 30 approaches, you’d be wise to come up with a plan to knock out that unneeded debt.
This might mean using one of the above tactics (cutting expenses or working a side gig) to generate extra cash to pay off your loans.
