Being in your 30s is certainly an interesting time. You are likely old enough to be financially independent, yet, at the same time, you are still in the midst of figuring everything out.
Most people in their 30s are looking to find ways to help increase their income, increase their wealth, and begin planning for the future. Your 30s is a time that can be both exciting and intimidating. Though you may not know what the future has in store, Freedom Debt Relief and these wise words of advice can help you begin preparing.
Think in percentages, not specific dollar amounts
Over time, Freedom Debt Relief has come to realize that one of the reasons many people end up going into debt is their inability to be flexible. People will often create budgets that are based on dollar amounts—while doing so may sound good in theory, it can lead to a lot of complications in practice.
Instead of saying “I am going to spend x number of dollars” for a particular month, you should be saying, “I am going to spend x% of my net income.” Focusing on percentages not only enables you to get a better understanding of how your money is spent, it can also prevent you from accidentally overspending on something you cannot afford.
Continue living well below your means
Another pattern that those who work for Freedom Debt Relief have recognized is that your 30s is a decade that is full of temptation. When you are young and in your 20s, you were likely able to be comfortable with being relatively poor. As time has gone on, you may be making more money, but that doesn’t mean you can ignore the need to establish a firm spending limit.
For example, if your income increases by 10% and your spending increases by 15%, you will begin to be losing money over time. Though this may sound rather intuitive, Freedom Debt Relief has come to recognize that this is something that many people in the 30s continuously ignore.
If you can continue spending the same way as you did when you were in your 20s, however, any additional income you might be making can be dedicated to savings. If you aspire to be a homeowner, a parent, or even just someone with a nicer car, then being able to save—and not just immediately spend surplus income on yourself—is going to be vitally important.
Stick to what has been proven to work
As many individuals in their 30s begin to have a little bit of extra income, they become eager to turn that little bit into a lot. As the folks at Freedom Debt Relief have come to recognize, there are a lot of investing opportunities out there that really are too good to be true.
If making money were really so easy, then everyone would be rich by now. Financial security is not something that can generally be achieved overnight—rather, it is something that requires a patient and disciplined approach over time. Being careful with your spending, avoiding get-rich-quick schemes, and diversifying your portfolio are all ways you can easily become a more disciplined investor.
If you do run into a situation where your credit card debt is too much to handle, the folks at Freedom Debt Relief may be able to help. Your 30s are a decade that seem to present an unprecedented amount of risk and responsibility. But it is also the time in your life when your fate is truly in your own hands. Use these simple pieces of advice to assure these years go the way you need them to.
Freedom Debt Relief co-founder, Andrew Housser, is a Canadian-born, award-winning entrepreneur and financial expert that has made an enterprise out of using his expertise to help people get out of debt and better manage their finances.