Top 10 Money Rules Every 30-Year-Old Should Live By

Following the Top 10 Money Rules for a thirty-year-old is a great start to achieving a healthy financial future. When you are a thirty-year-old, you have many opportunities to build wealth through higher earnings potential and the time value of money. If you can consistently apply these money rules today, you will have a financially secure and prosperous future.

This guide contains the Top 10 Money Rules for a thirty-year-old, which will assist you in avoiding mistakes, building your Asset Base, and safeguarding your financial future
1.Pay Yourself First

One of the most important things you can do for your financial future is to establish the habit of paying yourself first. By saving at least 20% of your earnings before using them to cover your living expenses, you will have control of your money and will not let your money control you.

To help develop this habit, you can automate your savings by using an internet-based banking service, and every week, transfer 20% of your pay into savings.2

2. Establish An Emergency Savings Fund

Most financial experts agree that establishing an emergency savings fund covering a minimum of six months of living expenses is a must-have for every so-called thirty-something. The best way to determine how much to save for an Emergency Savings Fund is to utilize the budgeting tools provided by Investopedia and NerdWallet, both of which offer excellent resources for creating an Emergency Savings Fund.

3. Control Your Lifestyle Inflation

If you are fortunate enough to receive a pay increase, try to limit the amount you spend on luxury items as a result of the increase. By doing this, you will dramatically increase the amount of time it takes to achieve Wealth and Assets and, in turn, enhance your overall wealth. Instead of increasing your lifestyle, you should be increasing your wealth through investing.

4.Avoid High-Interest Debt

Your finances could be ruined by high-interest credit cards and personal loans. Before putting serious money into investing, pay off all high-interest debts.

Forbes Finance states high-interest debt is one of the leading causes of wealth destruction.

5. Begin Investing In Your 30’s

Start investing in your 30’s: invest early in life. The best way to invest early is through SIPs in mutual funds, index funds and stocks.

To learn more about beginner investing, visit either Morningstar or Vanguard.

6. Obtain Health And Term Insurance

Do not use insurance as an investment. Health insurance, protects your savings; term insurance, protects your loved ones.

Health and term Insurance is one of the critical money rules 30 year olds should adhere to.

7. Monitor Monthly Expenditures

You will lose control of your money if you do not have any idea of your spending habits. You can monitor your spending habits with an App or use a Monthly spending chart and track every rupee spent.

By not having any knowledge about your spending habits, you could save more without increasing your income.

8.Create Several Sources Of Income

Relying on your job for income is dangerous. If you want to reduce the risks associated with having only one source of income, start freelancing, establishing an online business or generating side income.

The Harvard Business Review clearly states having multiple sources of income improves financial security.

9. Focus on Skill Building, Not Just Gadgets

Through building skills you can earn more. Items such as phones or cars depreciate over time and lose their worth. In contrast, once you build a skill set, you can generate income for your entire lifetime.

Understanding this Money Rule helps differentiate the wealthy from the “broke”.

10. Plan For the Future, Not Just the Next Month

To make good financial decisions, always think about how your actions today will impact your future. Making financial decisions based on how much money you have the next month, will generally lead to loss or depletion of long-term assets.

When you follow the Top 10 Money Rules Every 30-Year-Old Should Live By, you will build wealth by:

• Creating wealth
• Eliminating financial worry
• Achieving financial independence earlier
• Protecting Your Family from Unforeseen Events/Hardships
  
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