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5 strategies to implement in your 30s that will pay off in your 60s

clock icon April 5, 2017
tag iconInsurance & Income Protection Superannuation Wealth Strategies

A generation ago, most 30-year-olds were mature adults with houses, jobs, and even a couple of kids but today’s 30-somethings take a little longer to grow up. They are delaying marriage, babies and are also slower to settle into their careers. Unfortunately this means their finances often bloom later, too.

To ensure you have enough money to actually enjoy your retirement, follow these 5 simple strategies in your 30s that’ll pay off in your 60s.

Pay attention to your spending

Tracking expenses to see where your money is going and identifying blind spots can help you save more and spend less. When you track expenses, you have a heightened awareness of your money and subsequently are more reluctant to part with your dollars. You’ll be able to easily identify areas for cost savings and put those savings toward your financial goals.

Get life insurance

While you may think life insurance is for oldies, the truth is, the older you get, the more expensive life insurance becomes. This is due to several factors but mostly because you’re more likely to develop health problems as you age. Your remaining life expectancy also goes down, which means your policy is that much more likely to pay out. Taking out a policy in your 20s or 30s will land you a low rate for years to come.

Salary sacrifice

Your employer contributions of 9.5% might sound pretty generous, but they are probably not going to come close to funding the retirement lifestyle you would like.

Salary sacrifice means you pay a portion of your pre-tax salary into your super account to boost your super. As well as boosting your super savings, it effectively reduces your gross salary and can mean a reduction in the income tax you pay. Your super balance will also grow faster due to benefits from compound interest.

Look at your superannuation returns

With superannuation being your second largest asset (after a house), it’s extremely important that you understand how it all works and what you can do to maximise it.

You don’t have to stay with the same fund throughout your life. It’s your money, and if you’re not happy with your returns, you can (and should) change funds.

When it comes time to choosing the right fund for you, make sure you consider the medium and long-term performance figures, not just their short-term gains or losses.

Check out the Successful Ways Super Calculator and compare how your fund stacks up to the rest.

Buy a house the right way

If you waited to buy a house until your 30s, make sure you do it right. First time buyers often face confusion over different finance options, how to get their loan approved, government grant eligibility and all the hidden costs involved in home ownership. On top of that, the home buying process can be filled with steps you never knew existed and jargon you’ve never heard before. Attend a First Home Buyers Course to ensure you’re educated to make the right decisions.

Don’t be scared to get advice

As your finances become more complex, there is a good chance that you will need help working through them. Whether you need help with tax planning, investment strategies, or figuring out what insurance policy is best for you, consider working with a financial planner.

 

If you to learn more about finances, wealth, superannuation and insurance, attend a Successful Ways Wealth Creation Course, held in the Sydney CBD or speak with one of our Financial Advisors.

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