Hi everyone, today I wanted to talk to you about what to do in your 30s. Now I’m using this phase or I’m calling this phase the ‘keeping up with the Joneses’ phase. I think we come out of our 20’s really cash-heavy or not, we may have started investing or not, we may have family or not. So there’s plenty of variables floating around, but I think through this time, there’s a lot of ‘what’s next door doing’ ‘what’s my friends doing’ and we can be often caught up in all that stuff and I’m sure you’re listening thinking well it might even be me or I definitely know someone who has. So I want to talk about what to avoid more so than what to actually go and do. Number one is to avoid anything with water and wheels, so don’t go and buy your boat don’t go on take out a massive loan to get to keep up with the Joneses with our car, we need a car from A to B but that necessarily doesn’t mean a $50,000 loan. Avoid any bad debt, I said that in my 20s and we continued through our 30s, we just need to avoid it in any way shape or form and have some good habits around that. If you are buying your principal place of residence, aim to have your repayments under 30 percent of your net income so if we’re getting a household income on a weekly or fortnightly basis, calculate that your rent payments are going to be under that 30 percent of the total income received into your bank account, not the gross amount, okay. Be firm with that one.
And if you’ve got kids, I recommend that you do go and put some money away, no matter how small it is, the discipline to do it on an on a weekly basis, $5.00 a week over the next 20 years, set and forget, you won’t miss it go and do it if you haven’t started already.
If you haven’t got kids maybe you might look to start investing so you could be rentvesting, which means renting and then going and investing elsewhere, or if you’ve got your principal place of residence you may have some equity in there you can go and take that to to create more wealth magnets in your life.
So there it is, that’s a wrap for your 30s. If you’re doing a lot of those things already, or avoiding the the traps well done. If you need to refine a few things, get out there and do it because again the 20’s go fast, the 30’s go even faster.