The 30s are a decade of settling into both your personal life and career. It is a time of challenge and responsibility, but you can handle it well if you manage your money properly:
#1 Pay off expensive debt as soon as you can. As a 30-something person, you most likely have some debt in the form of a car or home loan. Some people have credit card loans, too. This is the decade that you reconcile your savings and spends judiciously, and the first area to pare money spending is in the area of expensive debt. Make a plan to restructure your debt, and look for ways to pay off the debt as soon as you can. Being debt-free saves up a substantial portion of your income that you can use for your family’s goals. #2 Use credit cards responsibly. Almost every person in the UAE uses credit cards, but only a few are responsible with them. It is not enough to get the best platinum credit card in the UAE if you are unaware of how to use the card to your advantage. Do remember to use the bank’s credit in a way that you remain well within your monthly credit limit and pay the balance/bill before due date. Your credit utilisation ratio should be as low as possible to avoid paying interest on the card. When used correctly and responsibly, your platinum credit card can gift you a spate of rewards and experiences. Not only do the best platinum credit cards in the UAE offer a range of travel benefits, they also give reward points for shopping, insurance for travel, shopping and car rentals, concierge services and add-on cards for family members. #3 Save money every month, and even in between. It is never too early to inculcate the savings habit. A savings fund helps you on a rainy day, or pay for unexpected emergencies, or to simply plan for the future. But there is a trick to saving money that most people are unaware of: instead of waiting to save at the end of the month, set aside a portion of your income the moment you get paid. This way, you are certain of saving money instead of scraping together some money (or none at all) at the end of the month. It keeps you on course to create a sizeable savings fund for the future. Make sure you never withdraw from the account but only deposit money in it. #4 Start planning for your retirement. Your 30s are the best time to plan for your retirement. By now, you are clear about your financial goals and the age at which you can realistically retire. Set a retirement age, say 45 or 55 years, and work backwards from there. Invest in a pension scheme, buy term insurance that can be renewed or extended at maturity, and create a separate retirement savings fund. You might even consider investing in a second property to serve as your retirement house instead of maintaining your current large house post-retirement. By the time you retire, you should have a sizeable corpus waiting for you. #5 Curtail expenditure wherever possible. One of the most enduring ways to save money and create wealth is to curtail unnecessary expenditure. Take stock of your monthly expenses and cut out all the areas that you can do without. This includes curtailing shopping binges, driving more than necessary, eating out frequently, investing in expensive health memberships instead of running at the park, etc. As a greater portion of your income is now retained with these curbs, you can increase your savings allocation.
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August 2022
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