30 things before 30 to build your finances

When we approach our 30s, the importance of financial planning starts becoming evident. This is a time when most of us begin to establish ourselves in our careers and experience significant life events.

Setting yourself on the right financial path early on can ease this long journey and secure your future. To get you started, here are 30 essential financial steps you should take before turning 30 to achieve financial stability and growth.

• Start long-term investments early to maximise compounding and grow wealth steadily.
• Clear outstanding debts before 30 to reduce financial burdens and increase savings.
• Health and life insurance are crucial safeguards for unexpected expenses and risks.
• Creating an emergency fund ensures you’re prepared for life’s unpredictable moments.

1. Start investing long-term

Starting investment early on is essential to build wealth and successfully achieve long-term financial goals. In your 20s, time is on your side, which means that your investments can grow for a long time through compounding.

So, prioritise investing in long-term instruments like stocks or mutual funds to grow your wealth steadily.

2. Pay off debt

Student loans, credit cards, and other debts start becoming a burden as you progress in life. 30 is a high time to pay off these debts. This frees you from financial strain and helps you focus on saving and investing for the future.

3. Get life insurance

When you turn 30, your loved ones start looking up to you and they depend on you. Life is unpredictable, which is why securing a term policy ensures that your loved ones are financially protected in case of any unforeseen events. Start early to lock in lower premiums.

4. Buy health insurance

Healthcare costs are going up. But having health insurance safeguards you against unexpected medical expenses and these rising costs. It’s better to secure coverage while you’re young and healthy to make premiums more affordable.

5. Put together an emergency fund

Unexpected situations like job loss or sudden repairs can strain our finances. Setting aside three to six months of living expenses in an emergency fund is therefore a good idea to cover these unexpected costs.

6. Negotiate your salary

Don't hesitate to ask for what you deserve. By 30, you should learn to negotiate your salary to ensure that you are paid fairly for your skills and contributions. This makes a significant difference to your earning potential in the long haul.

7. Start contributing to a retirement account

Retirement may seem far off, but the earlier you start, the better off you will be. Starting to invest in your pension in your 20s allows your savings to grow for a long time and gives you much-needed peace of mind in the later years.

8. Save for big-ticket purchases

By the time you turn 30, you will be planning significant purchases like a home or a car. Start saving early so that when the time comes, you are financially prepared to make these large purchases easily.

9. Start tracking your expenses

It is easy to lose track of where your money is going, especially in a fast-moving world. By using apps or a notebook to monitor your spends, you can spot unnecessary expenses and identify places where you can save more.

10. Consider a side hustle

Supplementing your income with a side hustle can bolster your financial security. Whether it is freelancing, selling products online, offering services, or writing a blog, a side job can help you make some extra money on the side.

11. Start monitoring your credit score

A good credit score is essential for securing loans and getting good interest rates. Regularly checking your credit score is therefore a good idea. Take steps to improve it by paying bills on time and reducing outstanding debt.

12. Automate your payments

As life starts getting busier, set up automatic payments for bills to avoid late fees. You can also automate your investments to ensure that you are consistently contributing to your financial goals without missing deadlines.

13. Invest in yourself

Continuous learning and self-improvement are the biggest investments that will pay off in the long run. Whether it is further education or learning new skills, investing in yourself will up your earning potential and unlock new career opportunities.

14. Build a professional reputation

Have no doubt – a strong personal brand will take you far in your career. Cultivate a professional image through networking, improving your skills, and building trust with colleagues and employers to find better opportunities.

15. Master personal finance

By the time you reach 30, it is important to have a solid understanding of personal finance. From knowing interest rates to filing taxes, these skills will serve you throughout your life.

16. Pay attention to work-life balance

While it’s important to work hard in your 20s, maintaining a work-life balance is just as crucial. As you turn 30, start focusing on your mental and physical health to make sure that your life remains productive and sustainable in the long run.

17. Become financially independent

Move out of your parents' home if you haven’t already, and start managing your own expenses. Financial independence forces you to budget wisely and makes you a more responsible person when it comes to important financial decisions.

18. Take calculated risks

At 30, you are in a prime position to take calculated risks as you are still young. Now is the time to start a new business, move abroad, or switch careers, if you want higher rewards and long-term success.

19. Build a budget

Having a budget helps you allocate funds for necessities, savings, and discretionary spends. This ensures that you are living within your means and setting enough aside for the future.

20. Compare prices before buying

Before making a purchase for significant expenses, do not hesitate to look around for the best deals. Comparing prices saves you a significant amount of money and ensures that you are paying the right price on your purchase.

21. Use cashback offers

Many apps and websites offer great cashback deals on purchases. Take advantage of these offers to save money on everyday expenses.

22. Avoid impulse spending

By 30, you should learn to resist the urge to make unplanned purchases. Impulse spending can hurt your savings plan and lead to financial regret. Stick to your budget and evaluate if a purchase is truly necessary.

23. Understand inflation

Inflation can erode the value of your savings. Make sure your investments are secured against inflation by using instruments such as stocks, bonds, or real estate in your portfolio, as they have the potential for higher returns.

24. Learn to file your taxes

Knowing how to file your own taxes saves you money on professional services and allows you to take control of your financial responsibilities. You can also get refunds if you are eligible, and maximise your tax savings.

25. Use the right accounts

Make use of high-interest savings accounts, money market accounts, and certificates of deposit to ensure your money grows. Keep the right amount accessible for short-term needs.

26. Start diversifying your investments

Don’t put all your savings in one asset. Diversify across stocks, bonds, real estate, and other investment vehicles to balance risk and reward in your portfolio.

27. Monitor your investment returns

While saving and investing is a great habit, it is equally important to know if your efforts are paying off. Keep an eye on the performance of your investments to ensure they are meeting your financial goals.

28. Reassess your risk tolerance

As people enter their 30s, their risk appetite shifts. Not everyone is comfortable with high-risk investments. Know your risk appetite and choose investments that align with your comfort level to avoid unnecessary stress.

29. Be aware of fees

Financial products may come with hidden fees. From brokerage to account maintenance charges, ensure you are aware of the costs associated with your investments to avoid eroding your returns.

30. Maintain liquidity

Make sure you have some liquid assets like cash or savings accounts. These can be quickly accessed in case of an emergency, which ensures that you are prepared for unexpected expenses without disrupting your finances.

Taking these 30 steps before you turn 30 can set you on the path to financial success. With careful planning, calculated decisions, and some discipline, you will be financially stable and on the path of growth for the years ahead.