Hitting the big 3-0 is one of those things, which everyone has something to comment about. When I was 16, turning 30 was equivalent to an instant death of youth, recklessness and sharp plunge in metabolism. As I embarked on my 20s, 30 seems to be the magic number that everyone has got it all figured out with the house, the car and the responsibility. Gone were the days of chanting YOLO as their mantra, instead it’s replaced by accountability, housing loans and financial planning for the family. With that in mind, here are 3 potential financial pitfalls that we should avoid in our 30s. 1. Holding an extravagant wedding without proper financial planning Getting married in a grand ballroom with chandelier is like a dream come true for many girls. However, discussing about personal finances, the budget and working out a plan to save up for that dream wedding of yours is crucial before taking the next step. Back in 2012, a Singaporean couple spent $110k for the glamorous wedding as if right out of the glitzy wedding magazines which led to countless of fights and put a strain on their marriage. In the end, they had to put off their plans to start a family and focused on repaying their debts for 4 years before paying off that hefty wedding bill. Setting up a budget and checklist will help to reduce the likelihood of landing yourself in debt right from the first day of marriage life. 2. Inadequate critical illness cover Most people in the 30s would still have the mentality that they are young and healthy. No doubt that this is usually true but it is worrying that statistics has shown that Singaporeans only meet 20% of their needs if critical illness occurs. While hopitalisation and outpatient treatment can be covered by health insurance, we still have to fret over our regular expenses during the recovery period. Critical illness plans can help relief our financial burden as the insurer will give out a lump sum of money in the event of the unexpected illness to cover for daily expenses. Just like any other insurance plans, you can expect cheaper premiums when you get covered young! 3. Not planning for retirement Retirement seems like far far away but planning for this day is never too early and should never be neglected. It takes time for money to grow and starting to build retirement funds young will make it easier to accumulate sufficient funds for early retirement. There is no hard and fast rule to build up on your retirement funds. Some people are more risk taking preferring to invest while others prefer savings plans with lower returns but comes with less risk. If you are not familiar with savings plans or investments, consider speaking to financial consultants that are expertise in financial planning. They will be able to help you review your portfolio, recommend sound advice and bringing you one step closer to the pot of gold that will last through your golden years.
Turning 30 is like a turning point for many of us. It is a time to accept our new responsibilities, learn from our past while being hopeful for what the future has in store for us.