Four New Year Goals You Must Adopt For Financial Success - Thirties

Four New Year Goals You Must Adopt For Financial Success - Thirties

Beware of little expenses. A small leak will sink a great ship.
— Benjamin Franklin

Those in their thirties look back at their twenties with nostalgia and would say that it was the most wonderful period in their lives.

Guess what? Those in their forties think the same about their thirties so it’s always best to make the most of now.

Thirties is probably the decade where most couples settle down to have kids and as such must think beyond themselves. Financial matters for kids will introduce a whole new layer of complexity into your finances. Therefore, it’s important to factor this into your goals if you are planning to or already have kids.

Before I set out the goals, if you’ve arrived here out of curiosity but you are in your twenties you may want to read financial goals for your twenties first.

Let’s kick off with the goals for your thirties then.

Goal #1 - Investing for retirement

If you started investing in your twenties then that’s fantastic as you would have had almost 10 years of tax-exempt contributions, employer contribution and what Einstein called the eighth wonder of the world, compound interest.

Starting retirement planning as earlier as possible is always a great idea. For example, a 23-year-old that started contributing to their pension as follows:

  • Salary, £25,000

  • Your contribution is 3% of salary and your employer’s contribution is 2% of salary

  • Allowing for salary increase and investment returns of the period from age 23 to age 30 (7 years)

  • You should expect to have a pension pot of about £20,000

That should give you an idea of how far behind you are if you are just starting in your thirties so waste no further time and get going now. Make it your number one goal for your thirties. If you don’t know where to start, then get in touch.

Goal #2 - Get tighter with your Budgeting

You’ve probably been working for seven to ten years now and there are little lifestyle creeps that have invaded your watertight, airtight budgeting routine.

You’re still finding out that at the end of the month you’ve running out of cash even though you’ve meticulously planned your budget.

I suggest you revisit it and be extremely thorough with your expenses.

Things you may not have factored in include;

  • Those mates’ stag/hen do you never factor in which easily cost hundreds of pounds and of course the wedding presents and accommodations

  • Getting your shirts dry-cleaned frequently

  • All those birthday and christmas presents for new nieces, nephews etc

You get the point. Be as comprehensive as possible.

Apart from these, also cultivate the habit of reviewing your household bills and see if you can get cheaper elsewhere.

I almost fell afoul of not reviewing my bills last week. I had purchased an antivirus software for my laptop and had selected automatic renewal of my subscription.

Thankfully I get an alert when money leaves my account and I noticed that this year’s cost of renewing the software was £89.99. A software I paid £31.99 for last year!

I quickly picked up the phone to get my money back and discovered that the same software had a 53% discount if you renewed manually. This proactiveness saved me over £50!

I wonder how many people out there whose service providers are quietly increasing cost of providing services on an annual basis and customers are not challenging these. Our loyalty to these providers is costing us over £4bn a year as a nation.

Therefore, it’s important to get tighter on budgeting, keep an eye on expenses .

Financial Goals - Thirties

Goal #3 - Build the right financial toolkit for your family

As I mentioned earlier, if you now have a family then make sure you have the right framework in place to ensure that in the case of a financial shock or death that financial stability can be maintained. The toolkits I recommend are set out below and these must be incorporated into your goals.

  • Emergency Fund

  • Family Investment Fund

  • Investing for kids

  • Life Insurance

I talk about these toolkits in a bit more detail here

Goal #4 – Reduce your debt burden

The final goal for your thirties is to rein in your debt. Especially those with a high cost of repayment.

You may have spent your twenties partying hard, travelling, shopping and maybe not managing your finances in the appropriate manner. All these have led to a debt burden that you are struggling to reduce. Couple this with new expenses such as childcare cost amongst other things if you have kids.

The first thing I would say is that debt strain has far reaching consequences beyond the debt itself. It could lead to stress and potentially impacting your mental health. Therefore, you should not despair as there are practical ways to approach debt reduction and if it’s really weighing you down, there are debt charities that could help and some are listed below.

One of our MoneyNoters shares their journey from the depths of debt and I hope it will inspire you to take actions on reducing your debt.

Bringing it all together

The financial goals I have set out above and summarised below seem all too familiar however, they have the possibility to change your live towards a stress free one and better living if adopted.

  • Goal #1 - Investing for retirement

  • Goal #2 - Get tighter with your Budgeting

  • Goal #3 - Build the right financial toolkit for your family

  • Goal #4 – Reduce your debt burden

These goals can also be automated into your finances so that you can get on with the more important things in life.

Want to have a chat about setting your financial goals for this year or in general? Then get in touch as the best time to start is now.

Further Reading

1. Money Therapy: Using the Eight Money Types to Create Wealth and Prosperity

2. Rich Dad's CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom

3. Money: Know More, Make More, Give More

Debt Charities

National Debt Helpline

Christians Against Poverty

Step Change

The Money Charity

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