When financial disaster strikes, we blame debt for it but never spare a thought towards the fact that it could have been easily averted if we had been careful with our financial planning earlier. Finance management or rather smart money management at every stage of life is the only way to avoid the hassles of debt and debt management later on.
Credit cards have become an important aspect of our lives but it is vital to use them wisely to avoid unnecessary debt. People often lack knowledge related to credit card and do not understand that every procurement made with a credit card is made with money but there are moneylenders who can assist you to avoid any money issues.
When managing money with expertise, two very important things to consider in life are financial freedom and savings. But these two points are not enough to manage debt in the 30s. But these two points do not provide a comprehensive solution regarding how to manage your money.
Let’s take a look at some of the best financial advice for 30 year olds,
Erase Credit Indiscretions
Your credit score and credit history are likely to reflect the mistakes made in managing debt early in your career. But you have time on your side to rectify the errors and rebuild your credit score in preparation for the responsible financial planning in your 30s. This is the time when you may be considering large loans such as home mortgages. A poor credit score will affect the terms on which you will be able to borrow and this has a long term negative impact on your finances. Build a responsible credit behavior pattern by using credit with discipline and meet obligations on time. Rebuilding credit and building a credit history is not something that you can do quickly.
Low – Interest Rate
Borrowers who look for money management tips to manage debts without damaging a monthly budget can look for the debt management program. Data consolidation is a significant tool of the debt management program. But the major question which arises is that are these loans available at a lower interest rate. If a person wants to merge his / her debts in a secured form then the lender will provide him with the loan at a lower interest rate as the availability of his / her property covers the risk of lending money.
Save Money
One of the best ways to manage debt is to get rid of personal loans, credit cards, payday loans, etc. An effective debt management program can help you with save money in the future and build wealth. Plan your monthly budget by keeping the finances in mind and also the extra expenses to be spent in the complete month.
A good rule of thumb for any young professional is to try to save 10 percent of their income in accounts designed to build wealth for the long run. The idea of retirement may seem like a far thought but accumulating money in a retirement account will be very effective. Those who begin saving for retirement in their early 30s can most effectively leverage the power of compounding interest. At this age, you have time on your side and the ability for your investments to grow over the decades to come.
Along with saving amount as part of retirement plans, it is prudent to consider your short and medium-term goals as you experience an influx of major life milestones in your 30s. This ensures that any unexpected expenses can be met easily without borrowing from elsewhere. By developing different types of financial objectives, you will be able to stick to a savings plan and you can live the kind of lifestyle you aspire to live.