Turning 30 can feel like a significant milestone in one’s life. You’re saying goodbye to the carefree years of your twenties and stepping into a new decade filled with fresh challenges and opportunities. Along with this transition, it’s also time to seriously contemplate your financial future. After all, ‘a penny saved is a penny earned,’ as our British friends say.
For those in the beautiful country of South Africa, your thirties may be the perfect time to take a step back and consider your financial wellbeing. Here are some smart money moves you can make right now to build a solid financial foundation for your future.
1. Start with a Budget
First thing’s first, you need a budget. You’ve probably heard this before, but it’s such a crucial step it bears repeating. A budget provides you with a clear picture of your income, expenses, and where your money goes each month. So, take out your laptop, pour yourself a cup of rooibos tea, and start jotting down your income and expenses. There are various apps and tools available to help you with this if Excel is not your thing.
2. Bulk Up Your Emergency Fund
Life is unpredictable – cars break down, illnesses happen, jobs can be lost. It’s advisable to have between three to six months of living expenses saved up for emergencies. This fund acts as a financial safety net that can provide you peace of mind when unexpected costs arise. If you haven’t started yet, now is the time. Even small contributions can add up over time.
3. Clear Your Debt
Debt can be a major obstacle to achieving your financial goals. Whether it’s student loans, credit cards, or car finance, high-interest debts can feel like a weight around your neck. Make a plan to clear your debts as quickly as possible. It might seem like a daunting task, but once you’re debt-free, you can channel that money into savings or investments.
4. Consider Property Investment
They say your home is your castle, and in South Africa, property can be a solid investment. If you haven’t already done so, your 30s could be the ideal time to consider buying a property. Even if you’re not ready to settle down, an investment property can provide you with a steady stream of rental income and potential capital growth.
5. Start Saving for Retirement
You’re never too young to start saving for retirement. The earlier you start, the more time your money has to grow. Consider contributing to a retirement annuity or your employer’s pension fund. Make sure you understand the tax benefits available to you – in South Africa, you can claim up to 27.5% of your taxable income or R350,000 per annum (whichever is lower) as a deduction from your taxable income.
6. Get Financial Advice
While managing your own finances can be empowering, it can also be a bit overwhelming. Seeking advice from a financial advisor can provide you with a road map to reach your financial goals. They can offer advice on investments, insurance, tax, and retirement planning tailored to your specific needs.
Turning 30 doesn’t have to be a cause for financial panic. It’s a chance to take control of your money and set yourself up for a prosperous future. Make the smart money moves now, and you’ll thank yourself later.
Here’s to your thirties – a time of growth, maturity, and financial wisdom. Let’s embrace this new chapter with a positive attitude and a healthy bank account. As the South African proverb says, “Little by little, grow the bananas.”
