Money Tips: How I Manage My Money in my 30s

Are you in your 30s and want to learn how to manage your money better? This blog post is here to help! We’ll explore practical strategies to handle your income, expenses, savings, retirement planning, investing, and still have some fun along the way. Whether you’re just starting out or looking to improve your financial habits, this beginner’s guide will provide you with simple tips to take control of your finances and secure a brighter financial future. Let’s get started on your journey to financial success in your 30s!

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1. How I Manage Income

Knowing your income provides a solid foundation for financial planning. At the beginning of the year, I go through all of my paycheck stubs from last year and use the paycheck with the least amount as my budgeted income. This ensures that I will at least have that amount in my banking account every time I’m paid. Next, I time that amount by the number of times I’m paid that month and that creates a monthly income.

2. How I Manage Expenses

To maintain a healthy financial lifestyle, I categorize my expenses and prioritize essentials. Food expenses are carefully managed through meal planning, budget grocery shopping, and cooking at home. I also set aside a specific amount for gas, keeping in mind my commuting needs and any additional travel requirements. With summer camps, I evaluate their costs against my overall budget and adjust accordingly, ensuring my child enjoys enriching experiences while staying within financial boundaries.

3. How I Manage Savings

Building an emergency fund and planning for the future is essential. I make it a priority to save $500 each month, which accumulates over time and provides a safety net for unexpected expenses or financial setbacks. I automate savings through direct deposits into a dedicated savings account helps me stay consistent with this goal. I budget $250 per paycheck that goes into my savings account every time I’m paid.

4. How I Manage Retirement

Retirement planning is crucial in our 30s. I contribute $190.64 each month towards my retirement account. It is automatically taken out of my paycheck, even before taxes. Once I became a Regular City Carrier, my company automatically takes this amount from my paychecks and put it away for retirement for me. On my paycheck stubs, it shows up as a deduction for retirement.

5. How I Manage Investing

Investing allows me to grow my wealth and potentially generate passive income. I allocate 5% of my income each pay period to various investments while also getting the company match at 5%. I prioritize diversified investments and regularly review my portfolio to ensure it aligns with my risk tolerance and long-term goals. Outside of my job, I use Fidelity and Acorns.

6. How I Manage Fun

While managing finances is essential, it’s equally important to enjoy the present and have fun. I allocate a portion of my income for leisure activities, hobbies, and experiences that bring joy to my life. After separating my bills and expenses, savings, retirement and investing, whatever is left from my paycheck, goes into a separate checking account for fun. By setting aside a reasonable budget for entertainment, I can indulge in occasional outings or treat myself without compromising my financial goals.