Saving in Your 30s: Financial Tips for the ‘Titos and Titas of Manila’

If you’re among older Millennials, chances are, your social media feed has been flooded by nostalgic photos and 90s throwback posts. People your age reminisce about the past on Facebook, whether or not it’s a Thursday. You miss your youth but you embrace your age. You now welcome being called tito or tita. And you learn to acknowledge your responsibilities, especially in securing your and your family’s future.

by Stephen Go, 07 December 2017

Rethink your financial game plan now that you’re in your 30’s.

In the past, being called a tito or tita made you feel old. But now that you’re in your 30s, you start to embrace the merits of adulthood. You no longer feel uneasy when a kid calls you “tito” or “tita.” You no longer panic when you need to do something grown up like doing your taxes, but that doesn’t mean you have everything figured out. We’ve compiled some tips on how to make it through financially during this stage in your life.

Rethink Your Budget

Priorities might change now that you are in your 30s. You no longer feel the need to be seen in the trendiest clubs or have the latest gadgets. You may now be thinking of starting your own family, or having more kids. You may be thinking of purchasing your own house or getting that second car. Your new goals are now bigger, more substantial, and fulfilling. So, you need to go back to the drawing board and assess if your current financial habits will allow you reach those new goals. Think about whether you will need to cut down on your spending so you can purchase those big-ticket items or provide for your own family.

Pay Off Debts

Now that you’re starting to earn more, make sure that you have paid off, or have been paying off, all your debts. No matter how much your salary increases over the years, debt interests can still eat up a huge chunk of your income. Reevaluate your budget so you can set aside more toward paying off your debts. This will not just make your credit rating better, but it will also lessen stress on your end once you are debt-free.

Build Your Rainy Day Fund

Although having high yielding investments is really the way to grow your wealth, it’s important to have a rainy day fund, too. A rainy day fund is not a long-term savings fund or retirement fund. It’s a contingency fund that you can use as cushion in case of an emergency, like if you lose your job or get sick. Experts say that a good rainy day fund must be around three to five months-worth of your living expenses. 

Save for Retirement

Let’s face it, your SSS or GSIS fund will not be enough once you stop working. You should consider other ways to earn enough money for your retirement. This is going to be a long-term effort so it’s better to invest in a low-risk, relatively high performing asset (better than a savings deposit account) like a peso stable fund. Financial planners recommend setting aside 10-15% of your income towards your retirement.

Don’t Forget to Diversify

In your 20s, you may have started building your savings on a deposit account and an insurance policy. Now that you’re in your 30s, it’s time to diversify your investments. There is no such thing as a risk-free investment. So, it’s important to spread your assets in different things to lessen the risks of losing it all when one of your investments fails.