financial freedom

7 Ways to Achieve Financial Freedom in Your 30’s

Looking to achieve financial freedom?

Imagine a world in which you have saved enough money to never work again…

…sounds too good to be true, right?

Perhaps it is, but it isn’t impossible.

In fact, many people before you have achieved this somewhat insurmountable feat.

Let’s take a look at 7 financial strategies you can implement to help you move closer to your goal of achieving financial freedom in your 30’s.

Take a look.

1. How Much Money Is Enough?

This isn’t a question I’m going to answer for you, it’s a question for you to answer…

…ask yourself, how much money would you be comfortable to retire on?

This may seem like a fairly easy question to answer. You’re in your 30’s and you expect to live to at least 80, that’s fifty years you’ll need to budget for. 

And for argument’s sake, you are happy to live on $50,000 a year, equates to around $2.5 million.

The thing is, this amount of money may not be enough.

You must factor in inflation, unexpected costs, investment failure, and so on. The world’s financial markets being inherently volatile can make it tough to plan ahead, no matter how many calculations you do.

Therefore, take that estimated $2.5 million and double it or triple it.

Seriously, that’s really how much you’re likely to need. Just factoring in inflation alone, let’s say a 3 per cent annual rate 50 years, that means that something you buy for $50,000 today could well cost you above $200,000.

That’s a huge difference and something that you’ll definitely have to factor in when coming up with a sum of money you are happy to live on for the rest of your life.

2. Earn More And Spend Less

Pretty obvious, right?

Sure, it’s obvious, but it’s still very important. 

A big factor in achieving financial independence in your 30’s is cutting back your expenses and increasing your overall income. 

Minimising your expenses could involve seeking more affordable housing, reducing your car expenses, eating from home, you get the idea.

And what about income?

Maximising your income isn’t always the easiest, however, it’s definitely the only way you are going to be able to reach financial freedom in your 30’s. You can do this by upskilling, finding better-paying jobs, applying for better-paying positions within your current company, or even asking for a raise.

If a company values you and your skills enough they will pay to keep you. If not, don’t be afraid to walk away and find a company that does.

3. Self-control Is A Must

Cutting back on some of life’s luxuries certainly isn’t easy. Unfortunately, though, it is likely you’re going to have to sacrifice a couple of guilty pleasures in order to truly achieve financial freedom.

Without self-control, you’re sure to overspend, or worse, take on unnecessary debt.

In doing so you will only prolong your need to work and put off your ability to retire early. However, if you can master financial self-control, you are sure to save a tonne of money and get yourself into a position where you can retire much faster.

4. Increase Your Saving Rate

The average person saves less than 5 per cent of their disposable income. Which many financial advisors warn isn’t enough to retire on. 

And those financial advisors are talking about the average retirement age, not financially independent 30-something-year-olds that have worked 20 or 30 years less than their senior retiree counterparts.

It is, therefore, a good idea to add up what it is of your disposable income you could be saving. Whatever that amount is, it maybe 10, 15, or 20 per cent of your wage, tuck it away in a savings account.

You never know when that money may come in handy.

Not only is it money you can retire on, but that money is also very handy to have if a lucrative investment ever raises its beautiful head. 

5. Make Your Money Work For You

Learning to save your money is definitely helpful to retiring early, however, you must also be willing to put your money to work.

You should always be thinking, how can I get my money to generate more money?

Thinking in this way can open up some big doors to success. For example, property or shares bought at the right time can mean a lifetime of difference if invested in wisely.

Mutual funds or investments in bonds are also ways to invest your money. With a little bit of know-how, these investments can bring a healthy return.

High-yield savings accounts are another investment option you should consider. There are many options out there. Simply shop around, lock-in a predetermined amount of money, and watch your investments work for you.

6. Side Hustles

A good side hustle can really help boost your financial position. This extra injection of cash into your savings account or investments can make a lifetime of difference. 

Also, depending on what your side hustle is, you may be able to build yourself a financial asset that can be sold for a nice sum of money later on down the track.

You can check out this recent article we published about side hustles you can do from home.

7. Expand Your Financial Knowledge

If you are really serious about reaching financial independence in your 30’s, you’ll need to expand your financial knowledge.

In doing so, you are cementing in your mind ways to strategically make money. Investments may not seem as daunting as they once were and with a little bit of know-how and good financial strategies you can take advantage of investment opportunities when they arise.

You can’t expect to make money if you don’t understand the basics. 

Get out there and read as much as you possibly can, listen to podcasts, and watch the stock and real estate markets. Before you know it, you’ll start getting a good feel on where to put your money and when to sell off any assets, bringing in a healthy return.

Conclusion

Now you’re equipped with some principles that will help you achieve financial freedom.

Another great way to ensure you are on track with your goals is to employ the help of Emma.

Emma is a money management app that will help you keep on top of any overspending. She will split your expenses by category, help you identify wasteful fees & subscriptions and highlight any areas of your finances that need addressing.

Here at Emma, we believe that everybody deserves a financial advocate. That’s why we strive to provide you with the best experience we can while taking care of your financial well being.

Emma is available for download on both the App Store and Google Play Store

Edouard Daunizeau

I look after all things Growth here at Emma. I come from France and have spent the last few years scaling consumer tech startups in the UK and beyond. 🚀