Are you looking to reach financial freedom? Imagine a world where you’ve saved enough money that you can never go back to work. It sounds too good to be true, doesn’t it?
It may be possible, but it’s not impossible. This feat is not impossible, as many others have done it before you.
Let’s look at seven financial strategies that you can use to get closer to financial freedom in your 30s. Have a look.
1. What is the right money?
This is not a question that I will answer for you. It’s your question. Ask yourself: How much would you be able to retire comfortably on this amount? This might seem like an easy question to answer. If you are in your 30s and expect to live until at least 80 years, then you will need to budget for fifty years.
For argument’s sake, $50,000 per year is enough to support you. This would be approximately $2.5 million. This amount of money might not be enough. Inflation, unexpected costs, failure to invest, and other factors must be considered. It can be difficult to plan ahead due to the volatility of financial markets around the world. Take the $2.5 million estimate and multiply it by at least three. This is how much you are likely to need.
2. Earn more and spend less
It’s pretty obvious, right? It’s obvious but still important. Financial independence is possible by reducing your expenses and increasing your income. You can reduce your expenses by looking for more affordable housing, decreasing your car costs, or eating at home.
What about your income? Maximizing your income may not be easy, but it is the only way to achieve financial freedom in your 30s. This can be done by learning new skills, applying for higher-paying jobs within your company, and even asking for a raise.
A company that values your abilities and you enough will pay you to stay. Don’t be afraid of leaving if you don’t feel valued by the company.
3. Self-control is a must
It is not easy to cut back on certain luxuries of life. To truly attain financial freedom, you will likely have to give up some of your favorite guilty pleasures. You’ll be prone to spending too much or worse, taking on unnecessary debt without self-control
You will only prolong your work hours and delay your retirement. If you learn financial self-control you will be able to save a lot of money and put yourself in a position to retire sooner.
4. Save more
Average people save less than 5% of their disposable income. Many financial advisors warn that this is not enough to allow you to retire comfortably.
And those financial advisors are talking about the average retirement age, not financially independent 30-something-year-olds that have worked 20 or 30 years less than their senior retiree counterparts.
Therefore, it’s a smart idea to add up how much of your disposable income you could save. You can save it, no matter how small, whether it is 10, 15, or 20% of your income. It’s never too early to predict when this money will come in handy. It is money that you can save for retirement, and it is also very useful to have in case a lucrative investment comes along.
5. Put your money to work
While it is helpful to learn how to save money, it is not the same as learning to put your money to use. Always ask yourself, “How can I make my money generate more money?” This mindset can lead to great success. If you invest wisely, property and shares can make a huge difference in your life.
You can also invest your money in mutual funds and bonds. These investments can provide a healthy return if you have the right knowledge. Another option for investment is high-yield savings accounts. There are many choices. You can shop around and lock in a predetermined amount of cash to make your investments work.
6. Side hustles
Side hustles can help you improve your financial situation. This extra cash can make a huge difference in your financial life.
You may also be able, depending on your side hustle, to create a financial asset that you can sell later. Check out our latest article on side hustles that you can do at home.
7. Increase your financial knowledge
You will need to increase your financial knowledge if you want financial independence in your 30s. You are establishing strategies to make money strategically by doing this. You don’t have to be a prodigy when it comes to investing. With a little knowledge and financial strategies, you can make the most of investment opportunities that arise.
If you don’t know the basics, it’s impossible to expect to make any money. Read as much as possible, listen to podcasts and follow the real estate and stock markets. You’ll soon be able to make informed decisions about where and when to invest your money, which will bring you a healthy return.
