What I Learn as I’m Approaching 30

What I Learn as I’m Approaching 30

Read time: 4 mins

Lately I find myself watching and reading more and more contents on personal finances. I don’t know if it’s because I’m turning 30 in 2 years that I start paying attention. Obviously, I have always been interested in personal finances. I mean I wrote and made Notion templates about it. But, I have been automating some financial transactions so I ignore about mine for a while. Couple weeks earlier was when I finally start reviewing and reflecting on my financial situation. So, if you are turning 30 soon (or just want to read about my experiences), here are few things I found useful.

What are your financial milestones?

One of the first steps in financial planning is setting clear and achievable milestones. Whether it’s saving for a down payment on a house, starting a family, or retiring early, having specific goals in mind can help you stay motivated and focused on your financial journey. By breaking down these larger goals into smaller, actionable steps, you can make steady progress towards your dreams. As a challenge for you readers, try to get to $100k as fast as possible as your first big milestone.

You know, I never really give it much thought but Charlie Munger is right. The first $100k really is a b$%ch! After that hurdle, things will snowball and you can accumulate wealth faster. In the last 5 months, I finally get to 6 figs. And funnily enough, I’m on track to surpassing my saving goal for this year. All thanks to I increase my income while keep my spending the same, some months even less! So let’s observe how much faster things will snow ball for me.

Debts are bad (most of the time)

Another key aspect of financial planning is getting rid of debts. While it may be tempting to put off paying off loans or credit card balances, the truth is that debt can quickly spiral out of control if left unchecked. By creating a plan to pay off debts systematically, you can free up more money to put towards your other financial goals, such as saving for retirement or investing in your future.

The goal here is to pay off debts as quickly as possible. Plus, debts also affect your credit scores. And the higher your credit scores, the better for the future. As a rule of thumbs, interest rates are always lower for people who have good credits vs people who have bad credits.

Focusing on the future

Finally, financial planning is essential for accumulating wealth, especially in your 30s. This is a crucial time in your life when you have the opportunity to lay the foundation for a secure financial future. By making smart investment decisions, building up emergency savings, and maximizing your earning potential, you can set yourself up for long-term financial success.

Personally as a person who will be 30 in 2 years. I want to be able to take care of my parents without worrying. So here I am, laying out foundation first. Do I still have debt? Yes. Do I invest? Yes. To make things easier, I follow the 50/30/20 rule. 50% of my earning goes to needs bucket, 30% goes toward wants and 20% goes toward saving. Remember when I said I increase income, but not my spending? So I have even more going toward my saving. 50/30/20 is actually 40/20/40 for my case.

So those are few things I think are very beneficial to think about. Financial planning is not just about budgeting and saving money. It’s about taking control of your future and making strategic decisions that will benefit you and your loved ones for years to come. So why wait? Start planning for your financial future today and take the first step towards achieving your dreams. Time can be the best ally, or the worst enemy. Whether you’re approaching 30, or in your 30s or whatever age you are, thinking about your financial situation now can only help!