Deciding On A Budget

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Deciding On A Budget

Have you ever stopped to think about how much money you spend on different things? Although it can be easy to overlook your expenses, a little misguided spending can run your finances into the ground. I used to struggle a lot with financial concerns, until one day when I decided to take my finances a little more seriously. My blog is all about deciding to budget, and how to take those first steps towards a healthier financial future. This blog is designed to help each user by offering helpful, motivating tips. Check out these articles for more information that might help you!

3 Steps You Should Be Taking To Protect Your Future In Your 30's

As you enter your 30s, you are hit by the revelation that you are really an adult now. Part of really being an adult means that you need to start saving for your retirement and making plans for your financial future if you are not doing that already. Here are a few pieces of retirement planning you should take care of. 

Invest in Disability Insurance

Your 30's and 40's are prime earning years. However, life is unpredictable and you never know what could happen, which is why it is a good time to invest in personal disability insurance. Disability will replace a portion of your income if you become injured or hurt for some reason and can't work. Some employers offer you access to long-term disabilities plans. If your employer doesn't offer a policy like this, consider investing one. It is one way to ensure that you protect your earning potential during these important years is by making sure that you are covered by a disability policy in case anything happens that prevents you from working.

Start Investing in Your 401(k)

If your job has a 401(k) plan, you need to start making sure that you are contributing to it, especially if your employer will match your contribution at all. You don't want to rush to save money in your 40's and 50's. Your money will have more value the longer it has time to gain value.

It may be difficult to start saving if you are not use to it. Start by contributing the minimum amount to your retirement account, and every few months, increase the percentage of your paycheck that you are saving.

Ideally, you want to put aside at least ten percent of your salary towards your 401(k) fund.

Create an IRA

In addition to a 401(k), it is a good idea to also invest in an IRA. Open up a Roth IRA, and aim to make the maximum contributions to your Roth IRA every year. With a Roth IRA, all the money you make on your retirement account will come out tax-free. You are earning tax-free money for your future with a Roth IRA. Talk to a financial advisor and get some help setting up one this year.

In your 30's, you need to make sure that you are protecting your earning potential and building up your future nest egg. The longer you save, the more money you will have when it is time to retire. Start contributing to your 401(k) fund, and create a Roth IRA outside of work as well. Taking these two steps will allow you to begin the journey of planning for your financial future.

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