An empowering financial checklist for in your 30s

July 15, 2016

Once you hit 30, chances are that you’ll have a little less flexibility with your money than you did while you were festival-hopping and watching Pop Idol. You probably have more responsibilities. Possibly a spouse or *gulp* the financial black hole known simply as ‘children’.

It’s time for a financial MOT. Our handy check-list will help you tune up your money engines and get you revved up for the next leg of your journey:

Meet with your Independent Financial Advisor. Hopefully you’ve been in regular contact with your IFA but if you’ve been putting it off (why? We don’t bite!), schedule a financial review.

Get a new job/negotiate a higher salary. With a decade of work under your belt, chances are you’ve acquired some valuable skills. But if you’ve been with your company a while, it’s possible that you could be undervalued or passed over in favour of people coming from outside the company. Get yourself on the fast-track to higher earnings by shaking yourself out of your comfort zone. Either negotiate a better salary in your current job or look around for other opportunities.

Make a will. Particularly if you have a family, make sure that your assets will go where you want them to if the worst should happen. Consider life insurance too if your employer doesn’t provide it.

Start saving for your children’s future. Your child hasn’t even started school yet, and is mostly concerned with whether Mr Tumble gets his spotty bag back. But if you’d like them to go to university one day, you should probably start saving now. It’s estimated that university costs about £24,000 for a student living away from home. So if you have more than one child…well, just pick your favourite!

Make saving for them a habit. Set up a direct debit and forget about it for a while. When the little pickles reach 18, you will have a great nest egg to give them.

Max out your pension contributions. For many people, your thirties are the time when you reach your full earning potential. Make the most of this by contributing the maximum amount you’re allowed so you can benefit from any matching scheme your employer offers.

Diversify. Check that your investments are spread across different areas. Having a diversified portfolio of stocks, bonds and international investments that match up with your risk profile will help you reach your goals but minimise your risk.

Top up your emergency fund. By now, unless you’ve been very lucky, you’ve probably had to dip into your emergency find. Whether it was unexpected dental treatment or dropping your iPhone in the bath, your rainy day fund might be looking a bit soggy. Get it back to 3 months’ salary and once you’re there, aim for 6 months. If you lose your job, it will give you more breathing space.

Treat yourself. You’ve been working hard and we’ve convinced you that saving is crucial to your bright future. But don’t forget to reward yourself every now and again. Whether it’s a family holiday or a Game of Thrones box set, life is for living and you’re more likely to stay on the right financial track if you spoil yourself once in a while.

 

This article is for general use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be or constitute advice. The value of your investments can go down as well as up, so you could get back less than you invested.  

GreenSky Wealth Limited is authorised and regulated by the Financial Conduct Authority. FCA No. 629624. Registered Office as above. Registered in England and Wales, Company No. 07103441. Wills and estate planning are not regulated by the Financial Conduct Authority.