Detox Outstanding Loan

Keeping fighting fit requires a little extra work in your 30s. Similarly, so does enhancing your financial fitness. As the carefree 20s pass them by, the 30-somethings will have to start addressing the financial demands of the years ahead. The 30s are crucial years that build the necessary foundation for the marathon that is retirement planning. And, as they say, well begun is half done. Here is a simple warm-up checklist before you begin your financial fitness regime:

Detox outstanding debt
A first step to building up your savings for your 30s is to get rid of existing debt. Where possible, pay off any student loans, credit lines or outstanding credit card debts. This will pave the way for you to start saving for retirement and minimise debt as you undertake new liabilities such as a home or car loan during this phase of your life.

Build endurance
The 30s are a good time to start planning for retirement, when time is still on your side. Retirement planning and investing remain a vague concept to most. However, it is important to familiarise yourself with the principles of investing, such as diversification and dollar-cost averaging.

There are many advantages to being able to actively manage your own investment portfolio. However, that requires access to information, significant investment knowledge and keeping up with the markets constantly. We have found, through focus groups, that people do not mind taking risks for higher returns. However, they lack the confidence, information and skills. That leads us to the next point.

Get a trainer, a regime
There is nothing like an expert to help you achieve your financial fitness goals. An investment adviser or relationship manager can help you with an investment strategy to set up your portfolio, or to begin planning for the needs of your young family.

He can advise on working towards significant early financial goals, and your retirement objectives subsequently. In an uncertain economic environment such as now, having a reliable financial partner is also useful.
 Prevent pain
Even the best of plans can be derailed by the unexpected, so it pays to be prepared. For savings, the general rule of thumb is that you should have at least six months’ income as an emergency fund to see you through sudden expenses or unforeseen events such as temporary unemployment.

If you have yet to be covered by insurance, get on the bandwagon. In your 30s, the need to be insured increases significantly once you have dependents, such as a spouse, children and elderly parents.
Also, insurance premiums tend to increase steeply from about the age of 40. Plans to consider include life insurance if someone depends on your income or livelihood, disability insurance, mortgage insurance and accident and critical illness insurance

an excellent article from Jeffrey Ong