How to Successfully Manage Money in Your 30s

November 22nd, 2024

5 min read

Financial Freedom: Expert Tips on How to Manage Money in Your 30s

Discover effective strategies for managing your finances in your 30s to attain financial freedom. Take control of your financial situation and secure your future.

Financial Freedom: Expert Tips on How to Manage Money in Your 30s

They say being in your 30s makes a person more emotionally and financially stable than in their 20s because this is when someone figures out what they will do in life and has already saved up enough money to buy the essential things and start investing across different areas of their life. However, since it is different for everyone, that is not the case for some people who still need guidance when managing their finances.

That is why this article lists some advice that a person can follow to gain guidance while managing life in their 30s to achieve that much-desired financial freedom.

Do not spend your entire paycheque

One of the best ways to start your better financial journey while in your 30s is to live off of 90% of your income and put the other 10% in your savings, which you can always use for later when you need it the most. You can have that percentage of your money automatically deducted from your wage every month, and you may opt to place that into a retirement savings account, which you will notice and feel.

Through time, you can slowly add more to the amount you usually save while decreasing your spending when you can. Preferably, you can start learning to live off 60% to 80% of your paycheck while, on the other hand, investing or saving the remaining 20% to 40%.

Reassess your budget

Regardless of your age, budgeting is always a part of managing your finances responsibly. This is why you should frequently modify your budget to align with your needs, financial goals, and wants. Rethink your budget regularly; if you haven't rechecked it for a while, it is important to factor in some new adjustments.

No matter your reason or motivation for setting aside money, whether for retirement, college, or other big purchases, always prioritise your savings. Consider adjusting your regular contributions toward your responsibilities and goals before thoroughly looking at your expenses and spending patterns. When it is necessary, ask yourself if you should change the budget based on the changes in your priorities.

Prioritise your smallest debts

Individuals who prioritise their smallest debts before paying for their bigger or higher-rate responsibilities succeed more at getting rid of them. Removing a loan motivates a person to keep paying down debt by giving a psychological boost. The rewarding experience of slowly eliminating these obstacles towards the ultimate goal of being debt-free offers incredible gratification.

Circumvent from ‘lifestyle inflation’

It is natural for an individual to increase his wants and needs as his income improves. The urge to expand one’s lifestyle when receiving a bigger paycheque is part of the desire to move up in society and is part of human nature. It is safe to say that this is not a good thing and can pose a potential problem and source of stress.

Hence, one must always remember to view the goal of saving and setting money aside for the future as a necessity that should always be given colossal importance. As mentioned, automating your contribution to your savings can help you be reminded of your budget and stop you from spending beyond your means. Keep in mind that you are not in competition with the people around you who can afford the latest luxurious things but with your past self. What’s important is your growth and that you are moving up one step at a time.

Never stop learning

Acquiring knowledge should be one of your priorities when living life responsibly, especially with your finances. Knowing about the latest trends in the realm of investment can be very helpful in improving your financial capabilities. It's essential to grow your money and manage it effectively.

Learn the habit of reading about topics like how credit cards work, credit scores, the right things to invest in, insurance, taxes, and retirement. Understanding these topics will enable you to make smarter decisions, better prepare for your financial future, and manage any unexpected challenges.

To avoid being overwhelmed, focus on one topic and then the others. Begin with the option that interests you the most and develop it from that point onward.

Manage your money in your 30s

It is common knowledge and is inevitable that trying to win in life and achieve financial freedom in your 30s is a difficult feat. You might feel hopeless at some points but giving up should not be in your mantra. Due to that, it is essential to remember some of these beneficial tips that can help you be the best version of your adult self. Be mindful of your paycheque, pay attention to your budget, pay off your smallest debts first, avoid the inflation of your lifestyle, and finally, always be knowledgeable about the important things.

Nevertheless, when there comes a time that you need help and wish to access your pay early in the most trying moments, you can lean on Australia’s leading wage advance app, Wagetap, which can lend you your hard-earned paycheque whenever you need it. Access up to AUD 2,000 and take advantage of its bill split feature. Download the app on the App Store or Google Play.