As you enter your mid-30s, life begins to change. You might not be as carefree as you once were, but you’re also not yet burdened by all the responsibilities of later adulthood. During this time, your financial decisions start to have long-term consequences. It’s the perfect moment to take charge of your financial future and lay the foundation for long-term security. Managing your finances now can help you build a solid base for the years ahead. Here are five key financial priorities to focus on in your mid-30s.
1. Enjoy Your Lifestyle Without Major Changes
To enhance your financial situation, you do not need to make drastic changes to your lifestyle. Cutting back on wasteful expenditures like eating out and impulsive buying is a small but potentially significant change. The goal is to balance enjoying life now while still making progress toward your financial goals. By making small but thoughtful changes, you can save money without feeling like you’re giving up too much.
2. Audit Your Spending Habits
In order to prevent overspending or financial waste, it's critical to keep a close eye on your expenditures. Consider where your money is going is made easier when you routinely evaluate your costs. By keeping a spending log, you can find areas where you can make savings, such as subscriptions that aren't being used or tiny purchases that mount up over time. You can keep your finances under control, make deliberate financial decisions, and avoid needless expenses by continuously analyzing your behaviours.
3. Set Financial Milestones
Setting clear, achievable financial goals is key to staying on track. For example, you could aim to save a certain amount for an emergency fund, pay off a specific debt, or reach a retirement savings goal. Breaking your financial journey into smaller, more manageable milestones makes it easier to stay motivated and focused. As you reach each milestone, you gain a sense of accomplishment and can assess your progress toward bigger, long-term financial goals.
4. Maximize Employer Benefits
While it’s important not to rely solely on your employer’s benefits, make sure you take full advantage of them. Many employers offer perks like retirement plans with matching contributions, employee stock purchase programs, or health savings accounts (HSAs). By using these benefits, you can increase your savings and reduce out-of-pocket expenses. However, it’s crucial to have your own financial plan in place, separate from what your employer offers, to ensure long-term financial stability.
5. Prepare for Emergencies
Keeping money aside for unexpected expenses is essential for both your financial and emotional well-being. Saving three to six months' worth of living expenses will help you deal with life's unexpected costs, such as car repairs, medical bills, or job changes. With this buffer in place, you can manage unforeseen difficulties without turning to loans or credit cards and yet maintain your long-term financial objectives.
