8 Money Tips to Follow in Your 30s
Apr 06, 2024Read time - 3 minutes / Disclaimer
Today let's review 8 money tips to follow in your 30s.
Having a plan helps you:
• Increase your income.
• Decrease your debts.
• Avoid big mistakes.
Unfortunately, having a plan for your money isn't common.
Schools Don't Teach Money
Most colleges and public schools don't teach:
• Making money.
• Managing money.
• Multiplying money.
These are things you must figure out on your own.
By 36 I built a $1M net worth from scratch.
I wasn't the sharpest guy, mostly a B- student.
And I didn't come from a wealthy family, raised by a single mom.
But these 8 money tips helped me along the way (I hope they help you too):
Tip 1: Learn About Money
The more you learn about money, the more you'll make.
A great way to learn is to spend 30 minutes a day listening to audiobooks.
Download an app called Audible.
Some great books to start with are:
• The Millionaire Next Door.
• Simple Path to Wealth.
• Rich Dad Poor Dad.
Listen while at the gym, driving, or making dinner.
Just 30 minutes a day = 182 hours of learning in 1 year.
Tip 2: Keep a Fully Paid Car
Keeping a fully paid car will save you thousands of dollars.
The average monthly car payment is $738 according to Nerdwallet.
Instead of trading in your used car for a new one.
Keep it and invest the money you're saving.
If you invested the $738 a month for 3 years, then forgot about it.
You'd have over $450,000 thirty years later if your money averaged 9.90% per year.
Keeping a car longer gives you more money for other goals.
Tip 3: Avoid Credit Card Debt
$789 is the average monthly payment for credit cards and personal loans per Lending Tree.
Paying off and avoiding debt frees up money for other things like:
• A downpayment on a home.
• A 2nd retirement account.
• A family vacation.
Avoiding credit card debt helps you build wealth faster.
Tip 4: Make More $ Each Year
Since 2020 the cost of living has increased 20%+.
It's important to make more money each year.
And to save for your future.
Different ways to make more money include:
• Job hopping.
• Getting a promotion.
• Negotiating a good raise.
Being a good employee is a great way to earn more.
Tip 5: Have an Emergency Fund
An emergency fund helps provide peace of mind.
When unexpected things come up like:
• Losing a job.
• Large medical bills.
• A car that won't start.
You're ready for it.
A good way to build an emergency fund is to split your direct deposit.
When you're paid, have your employer put part of your money in a checking account and part in a savings account.
For example:
• 90% in checking.
• 10% in savings.
This helps build up your savings automatically.
Emergency funds help lower money stress.
Tip 6: Learn to Invest Your Income
Learning to invest is the road to financial freedom.
The more you learn, the more comfortable you'll feel investing.
Learn how to invest by:
• Reading books.
• Taking online courses.
• Studying great investors.
Making money with money is the best way to build wealth.
Tip 7: Start Your Own Side Business
Turn your knowledge into income with a side business.
Profit from skills you learned as an employee.
For example:
• Sales skills.
• Management skills.
• Customer service skills.
Use these to start your own small business.
Setting one up online has never been easier or cheaper.
Create your own thing and build a 2nd income.
Tip 8: Plan to be Financially Free by 50
Most people retire at 65.
Most people live to be 77.
That's 45 years of work and a few years of freedom.
It doesn't have to be that way.
Imagine retiring or working for yourself part-time in your 40s or 50s.
You'd likely:
• Travel more.
• See family more.
• Have more experiences.
The more you save and invest in your 30s and 40s.
The more options you have later on.
That's all for today.
See you next week.
