When the 30s are about to hit - and you’re financially fit! 💸💪
They say, your 30s can be a lot like your 20s, but with greater financial security! Well, we’re here to tell you, whatever age you may be — financial independence is a BIG must-.have. And honestly, it’s never too late to start. When you’re younger, straight out of college, earning well, and wading through the roaring 20s, financial stability might not be at the top of your to-do list. But at some point, most of us have unavoidable responsibilities, loans to pay off, and the looming fear of retirement (we’re kinda, of almost halfway there, aren’t we?!) 🤔
1️⃣ The 20s are for taking risks! 🤗
Ah, the gift of time we’re blessed with in our 20s! *Typically, you can afford to take some risks with your money (without getting carried away)! Diversification is always a good idea for your portfolio — look at a slight skew towards equities/equity mutual funds. Your risk-appetite depends on a variety of other factors of course. So first, understand the risk you are willing to take at that particular point of time and invest accordingly! Talk to other women about how, why, and when they invest. It will give you tons of insight into what your journey could look like. The Basis community is a great place to start. Plus, you get to have some fun while you’re at it!
2️⃣ Save, save, save some more! 🚀
Have your money work for you and you won’t ever have to worry about it! We say, try to save and invest at least 20% of your monthly income, and up that number as time progresses. Yes, challenge yourself! The golden rule to remember — save before you spend. Savings to dip into without worrying about your financial health taking a hit, makes everything seem better and brighter. Including your future! If you’re up for it, here are some cool methods/rules to refer to. The Jar Budgeting method - https://getbasis.page.link/fNbDzhrPodVyZfKy6 The Kakeibo method - https://getbasis.page.link/sTKuwxT2ZLSuwe2GA
The 50-30-20 rule - https://www.instagram.com/p/Cf3vT8QPaZr/
*Don’t forget - identify which, if any of these, work best for you.
3️⃣ Ensure you insure! 🏥
There isn’t a better investment than investing in oneself. Insurance - health or life, is a brilliant way to do so. Sometimes we think that saving enough and investing smart is a safe enough bet for the future, but without insurance, it doesn’t hold too much value. Let’s break it down:
An insurance plan makes sure that you/your family are taken care of in the event of unprecedented occurrences.
Things like theft, damage, illness, death, disaster, etc. do happen. Yes, they do!
Life insurance not only ensures that your investments and savings are protected in dire situations, but also your current/future dependents.
The right health insurance cover is a MUST must-have. We as women have higher healthcare costs over our lifetime, and may have aging parents and children to care for.
If you need help deciding which one’s right for you, ask an expert. In the meanwhile, check out this post on how to go about choosing a policy. <link>
4️⃣ Have a peace-of-mind/emergency fund: 💰
Don't have an emergency fund yet? Well, you’ll find yourself dipping into your hard-earned savings or relying on credit cards one time too many. Which sucks, because not having money makes us feel helpless sometimes. Credit is a blessing when used tactfully. And a high credit score makes life much easier (700+ is a good goal to have). But too much dependence on credit will get you into a hard-hitting cycle of debt. Which is kinda worse than being broke! Once you save enough, try putting this money into a high-yield savings account or a liquid mutual fund. That way, your money grows and is always accessible.
5️⃣ Create a retirement plan: 👵
Some would say — retirement is a looongg way off! But putting a small amount of money aside each month can make a HUGE difference. A full-fledged retirement plan should definitely be a top priority on your to-do list of financial moves before hitting 30, after hitting 30, at 40, at 50…you get the idea (y'all know time flies when you’re having fun). Start small, and go big! You’ll find some interesting opinions from women like you on the Basis community, on our app. And of course, we’re to help out with any question you may have. So feel free to slide into our DMs fam.
The best time to make peace and change whatever habits or pre-conceptions you may have about money, is NOW - right now!!! In your 20s, cultivating a positive relationship with money helps you become more conscious of how you spend, what you spend on, and what you want to be spending on. But no worries if you didn’t get to set the foundation in your early 20s — it’s never too early or too late to kick-start your personal finance game and ace it. 💁🏽♀️💪 Plus, we’re with you all the way!