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Fusion of Life & Money

Fusion of Life & Money

30's the New 20...Don't fall for that

There are a few things that are certain in ones life; taxes, politics, and popular trends. Pop trends are everywhere and do a lot to drive consumer spending in this great country. For example, remember when pink became the new red and grown men were wearing pink socks, hats and gym shoes (not cool)? Or how about SUV’s, you’re last ride was so blah, but when you signed the note for that big shiny gas guzzling Hummer H2 you joined the “IN” crowd, look at you now. I’m a bit worried about this new trend that’s telling the world that 30 is the new 20. The campaign is suggesting that people should continue to live like their in their 20’s, even though their 30+. Now, on the positive side of things it makes me feel good to know that my sexy will be in tact until I reach my 40’s. I’m also excited that I can still rock the latest in fashion without being the old guy who’s trying to look young (you can too, see my article of Frugal & Fly). The other side of the trend is really what’s bothering me. The idea that you should maintain the same lifestyle that you had in your early 20’s when you reach your 30’s. I don’t know about you guys, but that is a bit scary to me. Do you remember what you were doing in your 20’s? Let me remind you; charging worthless items to your credit card and spending a lot of money at the bars. You probably bought your first grown up car and paid way too much for it. Chances are you weren’t saving any money, but you were having the time of your life. In my opinion your late 20’s, 30’s and early 40’s serve as the pallet for your financial future. The habits that you gain and decisions you make could help you, or haunt you well into you 50’s, 60’s and dare I say 70’s. I can understand the draw of popular culture so I’m not going to act like your Dad right now. But I am going to give you some tips on what you need to be focusing on in your in your late 20’s-early 30’s.

Money moves that will stand the test of time

· Fatten up that Emergency Fund: Don’t build your financial future on a house of cards. If you’ve ever wondered how people go from living the good life to foreclosure, it’s usually because they didn’t have emergency funds. Having money available gives you time to react to the unforeseen perils in life such as car accidents, unemployment, taxes, unexpected children and another Bush in the White House. Remember, ideally you should have between 3-6 months worth of monthly expenses on hand for emergencies.

· Debt is inevitable, but be smart about it: Hopefully you’ve purchased a home by now, if not that should be your first step. At this point in your life debt is pretty much inevitable unless you’re an heir to a fortune, and still there are no guarantees (Paris & Nicky Hilton). Be smart; try to refrain from using debt on worthless items such as jewelry, clothes, and entertaining the opposite sex. It’s STILL tricking if you got it. Why not sponsor a hungry child in Africa vs. that cutie at the club.

· Fatten up that IRA: Juicing up your IRA contributions will just make your retirement fund bigger and better with age. Kinda like Roger Clemens.

· Become a personal income tax expert: Knowing about personal taxes can help you to reduce your taxable income and keep more cash in your pockets.

· Collect appreciating assets: Education, 401K’s, IRA’s, investment property, stocks, mutual funds, and bonds are all appreciable assets and the expenses/contributions associated to some can reduce your taxable income. This is a bonus for you, because not only are you gaining appreciating assets, you’re also paying less of your money to Uncle S(c)am.

· Stick it to the MAN: Make yourself as marketable as possible. This is when you want to lay the ground work for multiple sources of income. While it’s good to have an emergency fund, you never want to be in a situation where you have to use it.

· Stop overpaying: For the majority of you, you’ve probably had the same credit cards, car insurance and bank since you were in college. It’s time to shop around, remember; no one is going to give you a good deal unless you ask for it. I know some of you are thinking that 50, 60 even 70 are a long time away, but if it helps you to put the future into perspective, look how quickly you got to 30. Follow these steps and I can guarantee that you’ll still be fly well into the twilight of your existence. In addition to looking like a million bucks, you may actually have the cash to back up your appearance.The rhetorical question of the day is, when you retire do want to eat Steak or Cat Food?…….Time is a ticking—tick, tock, tick, tick. I’d like to get some feed back from you guys, let me know what you’re doing to build a secure future.

If you have any questions please feel free to contact me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

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D.Elise said:

	30 is not the new 20...that's what's up! I love this article. One can still look young, but there is definitely a set of responsibilites that come along with age. I agree with you completely on this one.
	report abuse vote down vote up

May 06, 2008
Votes: +1

IzzyB said:

	Good information. However, I don’t agree that purchasing a home should be the first step. So many “young” people are out there purchasing homes when in fact they are living outside their means. The first step should be to save and then save some more (beyond the emergency fund prior to purchasing a home).
	report abuse vote down vote up

June 10, 2008
Votes: +0

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