Finance Matters in your 30’s

You have developed a mature career. You are working hard and also enjoying the fruits of your hard work. You have settled into the routine of your pay cycle and paying bills, however, you probably haven’t started that clear routine of saving for the future. Do you want to become a first home buyer? Get your first homeloan?

Here are the top 6 tips to managing your finances and plan for the future.

1. Create a budget
   Quantify your income and keep track of your spending.
   There are plenty of great budgeting tools available online, you probably already have one downloaded onto your phone or tablet or your current bank has one linked to your bank account. Initially track your spending, notice where you are spending your money. Adjust your spending habits and get rid of any excessive or unnecessary expensesIt might seem excruciating or near impossible, but the only way to start paying debt off quicker, or start to save, is to halt the cycle of spending.
2. Pay off debt
   Easy to say, harder to do?
   One trick is start smallest to largest and focus on confidence. Another trick is to begin with the loan that has the highest interest rate. More often than not this is a credit card. Making the minimum repayments doesn’t do assist. Lenders ask for approximately 3% of the balance of the card, this means you are only paying off some of the interest. Pay off more than the minimum, you will start to see a difference. Stick to it. If you have multiple cards, deal with one at a time. It’s important to ensure you are paying the minimum on each card, but stick to one paying the extra, smash it, then move to the next. Start with the one with the highest interest, or the smallest balance. When it’s paid off, remove it from your wallet – or cancel it all together. If you have some savings in a bank account, consider using some or all of this to pay off your debt.
   The earlier you start, the sooner you will nail it.
3. Have an emergency fund
   You should have a fund for emergencies or unfortunate events
   For example a sickness. Keep it simple, say three months worth of day to day expenses. Break your leg? Then dip into the account, however, if you just want to upgrade your phone – don’t.
   Find the money somewhere else.
4. Reduce the costs at the supermarket
   Reduce your waste by meal planning. Aussie households waste 30% of what we spend at the supermarket. If you spend say $200/week, that’s $3,120pa straight in the bin.
   Maybe even consider buying specials of things like toilet paper and other shelf items in bulk.
5. A side hustle
   Have other ways of diversifying your income. A share portfolio could be an option. Consider pursuing that hobby, interest or skill that would have the potential of making you money on the side. Your side hustle.
6. Protect your assets
   The assets you buy or acquire have value. There is significant cost in replacing them, so insure they are protected. A house must be insured, ensure that this is budgeted for.

These tips and tricks will help you plan for the future and set you up for the right loan amount. You will nail your goal of purchasing a home or investment property.

What next?  If you haven’t already, Download our free book which will simplify the home loan process and give you a better understanding of the right loan terms right you without the home loan jargon. The great news, it doesn’t have to be read cover to cover. Jump to your point in the home loan journey. The First Home Buyers eBook explains monthly repayments, principal and interest, loan terms, fees and everything else you need to start your journey.