The Money Saving Fifty (50)

If you are in your thirties, you’ll most likely retire when you’re quite a few years older and you may not really be thinking about retirement at all. But even at this age it’s important to think about your financial future.

Many people in their thirties are beginning to realize how reckless they may have been in their twenties when they thought they had the world by its tail. They are beginning to see how spending like there was no tomorrow was wrong; tomorrow is now here. They may also be thinking about buying their first home, and retirement is in the not-too-distant future.

Beginning to think about your financial future while in your thirties is a great idea. It really is a time when you can create your financial foundation and then build upon it as you age. Here are some financial things you may want to begin working on now rather than waiting until later.

Pay off your credit card debt rather than continuing to add to it. If you’ve been able to keep your payments up, call the credit card company and ask for a better interest rate. Having a good credit score may encourage them to reduce the rate so you can begin paying down principal instead of just interest.

Create a budget so you can work on paying off the remaining credit card debt you have. If you can get your monthly spending down to necessities, you can take the remaining income and use it to pay down debt. Start paying off the card with the lowest balance. Double up that payment and pay the minimum payment on any other debt. When you have paid off that card or loan, use that money to pay toward the next lowest balance. Before you know it, you’ll have your credit cards paid off. Pat yourself on the back; that’s a huge accomplishment.

Fund your retirement account. Don’t be like over one-third of employees in their thirties who don’t have a 401 (k) or other form of retirement account. Gone is the time you can expect to draw from Social Security when you retire, so it’s important to invest whatever you can in your own retirement while you’re young. Take some risks rather than being too conservative. You can’t expect a large payout if you’re afraid to take any risks.

If you can, buy your first home while you’re in this age bracket. Most mortgages are for at least 30 years. If you continually pay your mortgage payments, you should have your home paid off about the time you retire, which means you won’t have that payment to worry about come retirement time.

Along with paying off your debt, funding your retirement account, and buying your first home, you’ll also want to create an emergency fund. As much as you’d like to think you can stay at the same company until you retire, that simply isn’t how things work any longer. You also may have unexpected medical bills. Having an emergency fund of at least three to six months’ worth of expenses will give you enough to live on until you can return to work.

Speak with a professional financial advisor or planner to help you make decisions about retirement. This money advice won’t provide the information that speaking with a professional can. Remember to start thinking about retirement now and you’ll be prepared when you reach that age and can retire, knowing your financial future is taken care of.