Once a person hits their 30s, their approach toward financial planning needs to change a bit, based on the stage of life they find themselves in. As per Kavan Choksi, by their 30s, women are likely to earn a good income, with plans to climb the corporate ladder or expand their business. They might also want to focus more on their home and family. Hence, on the basis of their future goals, women need to tweak their financial strategies.
Kavan Choksi lists a few simple yet effective financial tips that women in their 30s should try to follow
Entering the 30s is undoubtedly an important milestone in life, both financially and personally. It is a time when a lot of women settle down in their career, start families, and make significant financial decisions. Here are a few financial tips for women in their 30s that can help them to navigate this important phase of life:
- List financial goals and spend strategically: No matter whether one has plans to buy a house, start a family or save for retirement, having well-defined goals would provide them a sense of direction and purpose. By the time one hits their 30s; they should have mastered the financial basics. They must have a proper understanding of how to spend their income in a strategic manner. This basically means aligning daily habits with both long- and short-term priorities.
- Invest in the career: The 30s are likely to be a pivotal time for career growth and earning potential. During this time, people should try to invest in professional development opportunities and advanced degrees that can improve their skills and boost their overall employability. Women must not hesitate to negotiate for fair compensation and promotions on the basis of their achievements and contributions.
- Plan for parenthood: If a woman wants to start a family in the near future, they should also consider the financial implications of this. It is vital to assess the expenses associated with prenatal care, childbirth, childcare, and education, and start saving for these expenses in advance. Women should try to research family-friendly benefits offered by employers like flexible work arrangements and maternity leave beforehand, to save troubles down the line.
- Understand the insurance: It is common to have car troubles, apartment repairs, or health issues, for which one might need to use insurance. By the time one is in their 30s, they should have important insurance coverage in place. Knowing how much coverage one would need for each plan is also critical.
- Pay down debt first: High interest debts may hinder people from making the most of disciplined savings efforts. As one hits their 30s, they should consider creating a structured plan to pay off their debt, especially the high interest ones like credit cards and personal loans. One may even consider consolidating or refinancing loans to potentially lower interest rates
As per Kavan Choksi, money management in the 30s often means that one is working toward some big goals. The best way to make sure that one can tackle those goals is to break them down into smaller steps and measure that progress often.