After college I dipped my toe in all aspects of the financial industry trying to find my professional place in the world. Though, at the time it was frustrating for me trying to figure out what I wanted to do with my life, that vast experience gained makes me knowledgeable in many different and helpful areas. If you have been a long time reader than you know I love to share my skills, knowledge, and tips with you whenever they cross my mind. Lately, I have been thinking about and preparing for my financial future as I am now a mother, multiple business owner, and unfortunately over the age of 30. (shhhhh don't tell) Today I am going to share my top 10 tips for the financial moves you should be making before turning 30.
1.) Life Insurance- Trust me I know... Life insurance isn't something anyone wants to really think to hard about. In all reality it's a little creepy planning for your own demise. That's why there are registered and educated agents, like myself, to help you along in making the moves required to protect yourself, your investments, and most importantly your family. Anyone who has others that rely on them financially really needs to set up personal coverages, outside of anything that has the strings of an employment contract attached. I can't preach it enough how important private coverages are. Plus, if you are under 30 get them now!! Life insurance premiums go up as we get older so save and protect yourself now while the premium rates are low. I recommend locking in those rates with a modified or even a basic whole life policy.
2.) Car Insurance- If you've had the same policy since you started driving then you are probably paying too much! Car insurance rates lower with a good driving record and as we get older. Check with your car insurance agent and discuss any deals they may be able to offer you now that you have some time behind the wheel. Also, you can try switching insurance companies. Progressive and Allstate give good driver discounts if your current company isn't willing to reward your clean driving history.
3.) Know your Credit Score- I use Credit Karma for free to monitor my credit score, but if you are in need of some credit repair then you may want to consult a credit expert. Everything in today's world is based off of credit. From something as simple as a cell phone to buying a home it is all based on credit. So staying in the know when it comes to your credit standing is a financial must!
4.) Debt- Debt can be a real bummer. Trust me I've been there. If you have negative debts on your credit report hindering you from moving forward with your financial goals try disputing them to get them removed. You can do this once every thirty days directly through the creditors websites or through Credit Karma for Transunion. If they are valid debts you can consolidate them and pay them all at once with a small repayment plan. Look into your options with a debt counselor today.
5.) Increase Your Credit Score- If your score isn't up to par with buying a home quite yet try looking into rental properties that report to the credit bureaus. I have done just that since moving to Utah and settling into Salt Lake City. This helpful feature has increased my score by over 200 points in the first three months just by paying my rent! Something I would have had to do anyways, why shouldn't I benefit from it?
Another way you can increase your credit score is by using less than 30% of a revolving credit limit. If you don't already have a line of credit try looking into credit cards that have customer benefits such as reward points and cash back and keep your usage under 30%. Use your card for recurring bills such as cell phone or utilities and pay off your balance at the end of every month.
6.) Stop Overspending- That new Michael Kors bag, though you may want it, do you really need it? Look at your monthly bank statement and see where you are splurging on unnecessary items you can do without. Even little habits such as brewing coffee at home or packing a lunch instead of getting a take away will add up to savings in no time! you can also monitor your subscriptions. Often times cell phone apps and streaming sites have monthly, if not weekly, charges. Unsubscribing from the services you don't need or want will add up in savings. This is also a good time to check for fraudulent subscriptions and bank charges.
7.) Start a Rainy Day Fund- Start a savings account for a rainy day, larger purchase, or unexpected financial burdens. An automatic savings account is ideal for beginner savers learning how to budget. Check with a local credit union for a dedicated savings account. These accounts differ from typical savings as they have a higher interest rate and a low monthly saving option. With a dedicated savings from Utah First Credit Union dedicate at least $25 a month to your 12-month CD/savings, and watch your cash add up. After 12 months your rainy day fund is released into a savings account with the interest it's incurred! Make your money, make money!
8.) Invest in Real Estate- Buying a home is one of the milestones we all hope to reach one day, I'm sure. Investing in a home can often times lower your monthly pay out in turn saving you money. It's not as scary as you may think either. There are so many programs out there to help first time buyers become homeowners simply ask your local mortgage officer about programs and deals in your area.
If you are already a homeowner see if refinancing can lower your interest rate and monthly payment. Rates are lower than they were a few years ago and they fluctuate all the time, a lower rate will save you big in the long run. Real Estate can also be a big income generator from rental income to a DIY home flip. The market may fluctuate, but people will always need a home. Maybe something to look into if you have a knack for binge watching HGTV.
9.) Passive Income- Come on now it's 2020, who doesn't have a side hustle. You're reading my side hustle right now. Passive income is defined as earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. This can be something as easy enough to set up as a blog or a brand partnership. For example a few of my passive income streams outside of this blog and my affiliate partnerships of course, is Melaleuca, a naturally focused wellness company supplying my clean home, pantry and beauty products, my weekly Mommy Wines Podcast, and without a doubt building my financial services practice. Curious about what I do? Feel free to check out the Home Bookkeeper Masterclass.
10.) Children Protection- If you are under 30 and have already settled down and started your family, along with looking into life insurance protection for yourself, like mentioned above, you should also consider looking into protection for your littles. Children's life insurance is so affordable it can be established for most times under $15 a month depending on the child's attained age. Also, planning for your child's future is another financial tip that will ease the stresses of continued education costs at a later date.
I suggest booking an appointment with your financial institutions financial advisor or even an independent broker to discuss options for a 529 education plan or other plans available. Establishing something now will reduce the financial burden on yourself and your children at the time they prepare to leave the nest and spread their wings. No one wants to be buried with student loans and/or hit with a large expensive university enrollment bill.
Leave in the comments your financial goals and any other suggestions for becoming more financially prepared in your 20's! If you are interested in enrolling in my Home Bookkeeper Masterclass to live a more flexible lifestyle while still earning a professional income remotely head on over to the resources page for more info.
Thank you for reading this article. I hope you enjoyed it. If you want to find more articles like this, follow along with the Emma Dawn Blog by subscribing to my email newsletter. If you are looking for Business Consulting services check out the consulting page above.