2021 is the year to build healthy habits
Your 30s to early 40s is a time where financial decisions have become more complex and costly as you may have travelled through some common rites of passage, like career changes, getting married, starting a family and buying your own home.
This is also a time where you may ramp up your career as you progress towards what could be your peak earning years, so you may also have greater financial responsibilities to consider.
1. Update your emergency fund
In your 20s, you may have created an emergency fund to cover yourself when your car registration comes in or an unexpected bill. Now that you’re earning more, you may also have greater expenses. If you save three to six months’ worth of living expenses, it could also save you if you ever find yourself in a position where your job becomes less stable.
Revisit your savings goal every few years to make sure it still suits your needs.
2. Avoid Lifestyle Inflation
One of the great things about being in your 30s and 40s is that you are mostly established. You are probably making a decent amount of money. You can afford many of your wants in addition to having your needs covered, so it’s important to avoid the trap of lifestyle inflation.
While you can increase your spending on certain things and can enjoy an occasional treat, it’s important not to let costs overcome you. Don’t spend all of your money increasing your lifestyle because it’s incredibly difficult to rein it back in.
3. Write your will
Now is a great time for you to consider who you’d like to pass on all of your money to if the worst was to happen. Not convinced of your mortality yet? Try waking up in your thirties after a night of heavy partying, the hangover alone will convince you that you are old!
You may be at a stage where you’re not planning any more children, so sorting out your finances is a lot simpler now than it was 10 years ago. While you’re writing out your will, make sure to log in to your Vision Super account and update your beneficiary. And, while you’re doing that, make sure your insurance is current too!
There are many ways you can make your money work harder for you, and you’re not expected to know them all. Let the experts handle that. If you’d like to have a chat with us about how to make your savings grow, call us on 1300 300 820 Monday to Friday 8:30am to 5pm.