When you’re in your twenties, saving might not be top of mind for everyone. It’s likely that you are just starting out in your career and trying to make it in the world, so there may be other priorities for you. This could lead to growing credit card debt and poor budgeting habits. However, once you reach your thirties you may be coming into a new stage of life and considering some lifestyle changes. If you need to get your finances in order, for wherever life takes you next, here are some tips to help get you on the right track.
Streamline Your Savings
Automatically set aside some money each week and build your savings without thinking about it. See what your financial institution offers to help you automate this process. Even if you start small, with $10 or $20 per week, getting in the saving habit will help you get ahead. You can then increase this amount as your budget allows to really begin seeing a savings difference, and soon you'll be able to make larger financial commitments.
Start Keeping Score
Your credit score may seem intimidating, but it's an important part of your financial life. Your credit runs your finances, from applying for loans to getting a job, so you need to stay on top of it. Credit scores are determined by five different factors:
- payment history
.JPG)
- credit utilization
- credit history
- credit mix
- new credit
Start by learning about your credit score and checking your credit report regularly. Utilize Credit Union of Denver’s Credit Score & More feature to view your credit score, simulate how certain actions could impact your score, and more!
Pay Off Your Credit Cards
Credit cards aren't free money and the charges you put on them in your twenties can follow you well into your thirties. Start this decade on the right foot by working to pay off your bills. Each month, commit to putting a fixed amount toward your credit card bill and make sure it's equivalent to or higher than the amount due.
Budget For the Future
Your thirties will likely contain major milestones, and whatever your plans are for the future, its important to budget for them as best as you can. You'll probably find that many expenses will catch you by surprise. When you're preparing for your next big purchase, try to address all likely contingencies within your budget.
Once you reach your thirties, it's time to start preparing for whatever the future may hold. Once you've paid off your credit cards, improved your credit, and built a rainy-day fund, you'll be better financially prepared for some of life's biggest moments.