Introduction

Turning 35 is a significant milestone in life, and it’s a time when many people start to take their financial future more seriously. By this age, you may have established a career, started a family, or even purchased a home. It’s important to make smart money moves to set yourself up for long-term financial success. In this article, we will discuss some key financial steps you should consider taking before turning 35.

Create a Budget and Stick to It

One of the most important money moves you can make is to create a budget and stick to it. A budget helps you track your income and expenses, allowing you to see where your money is going and make necessary adjustments. Start by listing all your sources of income and then categorize your expenses, such as housing, transportation, groceries, and entertainment. Set realistic spending limits for each category and make sure to prioritize saving and investing.

Build an Emergency Fund

Life is full of unexpected events, and having an emergency fund can provide you with a safety net. Aim to save at least three to six months’ worth of living expenses in a separate savings account. This fund can help cover unexpected medical expenses, car repairs, or job loss. By having an emergency fund, you won’t have to rely on credit cards or loans, which can lead to unnecessary debt.

Pay Off High-Interest Debt

If you have any high-interest debt, such as credit card debt or personal loans, it’s crucial to prioritize paying it off. High-interest debt can quickly accumulate and become a burden on your financial well-being. Consider using the debt snowball or debt avalanche method to pay off your debts strategically. By eliminating high-interest debt, you’ll free up more money to save and invest for your future.

Invest in Your Retirement

While retirement may seem far away, it’s never too early to start investing in your future. Take advantage of your employer’s retirement plan, such as a 401(k) or a pension plan. Contribute as much as you can afford, especially if your employer offers a matching contribution. If you don’t have access to an employer-sponsored plan, consider opening an individual retirement account (IRA) and contribute regularly. The power of compound interest will work in your favor, allowing your investments to grow over time.

Review and Adjust Your Insurance Coverage

As you enter your mid-thirties, it’s important to review your insurance coverage to ensure you have adequate protection. Consider getting life insurance, especially if you have dependents who rely on your income. Life insurance can provide financial security for your loved ones in the event of your untimely death. Additionally, review your health insurance, auto insurance, and homeowner’s or renter’s insurance policies to make sure they still meet your needs.

Invest in Yourself

Investing in yourself is one of the best money moves you can make. This can include furthering your education, attending professional development courses, or acquiring new skills. By continuously improving yourself, you increase your earning potential and open up opportunities for career advancement. Additionally, investing in your physical and mental well-being is equally important. Prioritize self-care activities, such as exercise, meditation, and hobbies that bring you joy.

Revisit Your Financial Goals

As you approach your mid-thirties, it’s a good time to revisit your financial goals and make any necessary adjustments. Evaluate your short-term and long-term goals, such as buying a house, starting a family, or saving for your children’s education. Determine if you’re on track to achieve these goals and make any necessary changes to your financial plan. It’s important to regularly review and adjust your goals as your life circumstances evolve.

Conclusion

Turning 35 is an opportune time to reassess your financial situation and make smart money moves. By creating a budget, building an emergency fund, paying off high-interest debt, investing in your retirement, reviewing your insurance coverage, investing in yourself, and revisiting your financial goals, you can set yourself up for long-term financial success. Remember, it’s never too late to start making positive changes and taking control of your financial future.