Crucial financial lessons for women in 30s to have a strong nest egg

For many, life in the 30s is the best they could ask for. It is such a decade where people took risks unabashed, achieve exemplary feats and rose like a phoenix from the ashes of failure and a couple of life changing tragedies. And yet, they have seen and done it all and not without any reason, as they have the results to show while others of their age could only dream of. The results here pertain only to their personal financial lives and the corresponding lessons they learnt during the process.

1. Better managed 401(k) can strengthen financial backbone for retirement

One of the most pressing issues for a woman in her 30s is to start learning the ropes of compounding benefits and the effective ways to utilize them. First, you’ve to avoid making pre-retirement blunders that can ruin your nest egg.

Secondly, you need to put away a certain amountof your monthly income in a 401(k) or Individual Retirement Account or IRA. The fund accumulated in these retirement accounts could serve as your financial backbone once you decide to retire. Based on the contributions you make, you’ll be able to enjoy two-pronged benefits – first, contributing to a retirement account will lower your present tax liabilitysince that will be deducted from your paycheck pre-tax, whereas, using target-date funds will empower youto choose from a range of investment options on the basis of your chosen target year in which you want to retire as well as your risk tolerance. In this case, you may max out your own contributions and make your employer match a percentage of the amount you have contributed in your nest egg.

2. Take professional risks to build your retirement savings

Anyone can build retirement savings. In fact, even the broke can save for the golden years of their life. So, if they can take risks and meet challenges, then why not you? Remember, you’re just 30 and it’s the best time to take professional risks. This is because you’ll have a lot of time to undo the damage, if any and rebuild your savings, in case your risks tank. Moreover, during the 30s you are still young and vibrant, and have the necessary experience under your belt to confidently build something of your own through a calculated professional risk. You’ll be surprised to know, how people in the past have shun their corporate jobs and took something as offbeat as an independent writer and consultant. The projects they received during these times made them all more precious for larger organizations which in turn helped them to build a rare, but hugely attractive professional portfolio.

3. Better cash reserves

Cash has always been the King and will remain so in the days to come. When a crucial tool like cash is at your disposal, then you have your back covered for you to explore newer avenues – places where ordinary men and women usually avoid. However, before you take any professional risk, make sure you’ve got at three to six months’ of savings in your kitty. This kind of cash reservoir is known as emergency fund and the larger it is, the better you’ll be financially, should a monetary disaster strike you later in your life. Apart from that, it is good to have some savings to be used as your floating cash. Proper financial cushion will take the stress off your mind and instead, help you to deliver the best possible results to your clients.

4. Better 1099 Gig

Regardless of whether you work full-time or have floated a side venture, there’s still ample opportunity for to lower your tax burden and that is through a gig on a 1099. Based on your 1099 gig, a portion of your cell phone bills, utility bills, mortgage payments, house rents, entertainment and travel costs could become tax deductibles. To make the most of this money-saving tool, you may consult your accountant. Doing so is necessary, as it’ll help in to determine whether or not your moves are practical and the documents that you must keep safe, should you go ahead with a 1099 gig.

Lastly, by the time you are in your 30s, you begin to realize the real worth of investing in a good insurance package. At this age, you may even qualify for some of the most lucrative premiums on offer from the carriers. Interestingly, whether its health/medical insurance, homeowner’s or renter’s insurance, car insurance or pet insurance, its for sure that you know emergencies do happen and being properly insured will only go a long in ensuring that you are debt free and retire with a handsome nest egg. So, being insured against the unknown calamities will give you the peace of mind and monetary helpthat it’ll provide in case of emergencies will actually be far more precious than the premiums you’d pay over the term of the policy. Though life is unpredictable, yet having your defenses ready against the challenges thrown by it isn’t.

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