Top Tips for those in their 30s

Your 30s bring a whole set of new responsibilities – there are weddings, houses, kids, families… not to mention career progression. But it also brings a chance to get a firm financial foothold and establish good patterns for the future, setting yourself on the path to financial security.

Here are some tips to get you going:

1. Becoming debt free

Oftentimes, those who hit the big 3-0 still have student debt and unfortunately there’s not much you can do about that apart from paying it off month-by-month. Credit cards, on the other hand, there’s lots you can do about them. For example, do a balance transfer to a zero-interest card. You won’t get stung by monthly interest – and you won’t be giving banks free money! Always make sure you’re paying the lowest possible interest rate on any debts. Shop around for the best rates.

2. Account shake up

The savings account you had when you were a teenager probably doesn’t suit you now you’re in the workforce. Compare banks, compare savings interest rates, and find a better fit for your situation – sadly, with banks, loyalty doesn’t really count for much. Make your money work for you! Little things like ATM and account keeping fees all add up, so make sure you’re getting the best deal.

3. Start upping your pension contribution

Or, if you haven’t automatically (or proactively) enrolled in a pension – do it! Once you’re enrolled, your 30s are a good time to increase your contribution. Unless you make changes yourself, it’s likely you’re only contributing one percent of your salary into the pot; and even with your employer matching it, that’s not going to be enough to retire on. If you have money left over at the end of the month, transfer it into your pension, or an equivalent savings plan: every little bit counts.

4. Sort your budget

When you turn 30, chances are it’s the first time in your life when you have lots of spare money – but do you really need that complete cable television package? How much food are you wasting each month? Did you really need those shoes in every colour? Look at your bank statements and credit card receipts for the last six months, and add up any unnecessary expenditure. Set a goal for yourself to trim back unnecessary costs over the next six months, and see how much you can save.

5. Your salary – it’s okay to ask for more

If you haven’t had a pay rise in the last few years, now’s the time to ask. You’ll need to come to the meeting (on a Friday, when people are happiest!) with a compelling list of your skills and achievements and why you deserve to be compensated accordingly. Don’t be embarrassed. They worst they can do is say no.

6. Get on the property ladder

With mortgage rates at historic lows, it is worth looking at buying a property – but only if it suits your lifestyle. On a 200,000GBP property, the deposit is a confronting 20,000GBP on a 90 per cent load-to-value mortgage. And then there’s the stamp duty and solicitor fees on top of that, and lots of other costs. Make sure you have enough cash to accommodate any interest rises, too. You don’t want to get caught out by your repayments increasing beyond your means.

7. Love and money

Nobody likes talking about money – but talking about your financial circumstances (including your spending patterns, late night online shopping habits, your tendency to shout a round at the bar on a whim) is crucial with your partner. Couples quite often wait too late to talk about it, and discover huge financial differences very late in the game. And they might be a game-changer. Do you want separate finances if you’re both working? If you’re combining your accounts, how will you spend the joint money? Just a few of the questions you need to ask.

8. Wedding extravaganza

Today, an average (average!) wedding costs 20,000GBP. That’s an absurd amount of money and could definitely be spent elsewhere. Having a smaller wedding, and putting the extra money towards a house payment is far more sensible. Or if a big wedding is really important to you, make sure that you start saving for it early on.

9. Kids are expensive

Start putting money aside for any future school fees. And – don’t overspend on your first child. There’s no need to buy everything top-of-the-line and brand new. If you drain your savings on a crème-de-la-crème push-chair, your kid probably won’t know the difference. Instead, put that extra money away for their education. It’s the best thing you can buy them.

10. Get some solid advice

So, you’re earning more, you’re saving for your future, you’re spending on kids, and you’re saving for their education: how do you manage it all? Speaking to a financial advisor who takes a holistic approach will allow you to align your finances to your circumstances and to get the best outcome. All of this will set you up for the future.

About Expat Financial

Expat Financial is a team of highly experienced Hong Kong based Financial Advisors. As Expats ourselves we understand the challenges of living and working in a foreign country. We use our Expat experience along with our extensive financial expertise to help you maximise the benefits of working and living offshore.

Regardless of whether you’re a financial novice or a seasoned investor we specialise in helping you to achieve your goals.

Additional Information Resources

Additional information resources are available by clicking on the links below:

• Financial Planning
• Investments 
• Insurance 
• Pensions
• Tools & Calculators
• News