5 Best Financial Rules to Secure Your Future
1. Create Spending Priorities
By now, you should have a good idea of what you value in life, and what kind of lifestyle you want to lead.
This means that it’s time to stop spending on stuff that isn’t important to you. Do you know how much crap I bought in my 20’s that was a complete waste of money? Too much.
Sit down, think about what you want to accomplish with your money, and then create a list of spending priorities that work for you. Then, spend according to those priorities.
Your spending will be more in line with your values, and you’ll be happier as a result.
If you have a spouse, this involves them, too. My wife and I are constantly talking about what are the important things we want to spend our money on.
In our 30’s the constant topics revolved around upgrades to our home, travel, investing in our businesses, and our kids – three growing boys add up!
2. Buy Health Insurance
Now that you’re getting older, you need to think about health insurance. Even if you live a healthy lifestyle, there are reasons to have health insurance.
If you have kids, you need health insurance. If you can afford a high deductible plan, it can make sense (if you have relatively few health care needs and costs) to purchase one.
You can then put money into a Health Savings Account, earning you a tax deduction and allowing the money to grow tax-free as long as you use it for qualified expenses.
3. Create a Retirement Plan
Many people in their 30s have yet to perform a retirement calculation. Now is the time for you to perform that calculation.
Use one of the many online calculators to figure out what you need in retirement, and what you need to do now to meet your goals later.
Get serious about what you want to do in retirement and make a plan.
4. Diversify Your Income
Now that you’re in your 30s and things have settled down a bit, it’s a good time to consider income diversity.
Don’t rely on your day job for your entire financial well-being. That’s just asking for trouble.
I’ve been able to diversify my income by starting this blog and other online ventures to complement my revenue from my financial planning practice.
Try to cultivate income diversity with side gigs, investments, and other endeavors. That way, your entire family’s financial future isn’t at risk if you’re fired from your job.
5. Get Financial Planning Help
As your finances become more complex, there is a good chance that you will need help working through the ins and outs.
Whether you need help with tax planning (I love my accountant), plotting a retirement course, or figuring out what insurance policy is best for you, consider working with a financial planner that has no conflicts of interest.
Unfortunately, most people assume financial planning services are reserved for individuals with very high net-worths. For a long time, that has been the case.
But, a relatively new company that is bridging the gap between this very helpful financial service and the younger generation (who typically don’t have millions of dollars of assets) is Facet Wealth.