The Five Key Steps to Financial Planning in Your 30′s

To ensure a solid and successful financial future, it’s crucial to begin forming certain habits and saving once you’re in your 30s to ensure you can retire at a good age and have extra savings for emergencies. It will not only reduce stress, but will prevent accumulating more debt in the long-run.

1. Create an Emergency Fund

A bankruptcy attorney in Columbus Ohio will tell you that it’s important to have an emergency fund established for unexpected emergencies. These struggles are a part of life and it is important to be prepared. Instead of resorting to credit cards that have high interest rates and will cost you more in the long run, save $1,000 for those times when the car breaks down or there’s an emergency dentist trip.
2. Build a Job Loss Savings Fund

Unfortunately, job losses are a part of life and are difficult to avoid between frequent layoffs in a struggling economy to getting fired for a mistake. Instead of getting behind on the mortgage or paying for groceries on credit cards while job searching, it’s important to have three to six months in savings of your income to ensure that you can stay afloat until landing a new position.

3. Eliminate Debt

Eliminating debt will not only provide you with financial freedom, but will also increase your credit score for a great way to stop overspending with interest rates and contribute more money to 401k funds or different savings accounts. Pay more than the minimum amount each month and pay off the smallest credit cards first to gain momentum in your goal.

Consider bankruptcy if your debt is impossible to calculate and you’re living on credit cards by contacting the Law Offices of Richard D. Palmer. It can be easy to consider different types of bankruptcy and which one fits your financial situation with.

4. Save for Retirement

Saving for retirement is essential to establish security in your future without working until you die, especially since there’s a high possibility that social security won’t be available in the future. Put money into 401k funds and invest in mutual funds to ensure that your money will grow instead of just sitting for several decades.

5. Save for College Funds

Avoid resorting to hefty loans that can be impossible to pay off. Starting a savings fund for your children’s future as soon as  they’re born. This will make it easier to save long-term simply by putting a certain amount aside each month.

Whether eliminating debt or considering new investment options, it can be easy to establish a strong financial future even on a small income with a few frugal habits and by avoiding debt. It will not only provide peace of mind, but will make it easier to retire at an early age.

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