3M at 30 years old: Is it necessary?

A person who is 30 years old can no longer be considered a young person. This three-headed age will be reached by many people and will bring new responsibilities and challenges in life. Well, of course having abundant and stable financial resources, for example 3M, will make your life easier at the age of 30. However, do you really need to have 3M money at the age of 30?

3M at 30 Required No?

Who doesn't want that kind of money, at any age? Almost all of your financial affairs will be smooth if you have this amount of money. However, do you really need 3M money to have stable and smooth financial health? 

Of course not. There are other ways you can achieve stable personal and family finances. There is no need to drop that much money from the sky to achieve good financial condition.

So, what should the ideal financial condition be like at the age of 30? Check out the explanation below!

Ideal Financial Condition at 30 years old

You don't need to have as much money as 3M to have an ideal financial condition at the age of 30. However, there are steps and goals which you should have taken before reaching the age of 30. What are these steps?

1. No longer dependent on parents

At the age of 30, you generally have worked for at least 5 years. However, some people out there are still partially or even completely dependent on their parents for their finances.

Parents will certainly be happy to help their children as much as possible. However, is this a good thing for a child to do?

So, preferably at the age of three, you are independent in your personal finances, already have your own budget, savings, and other dependents that you can bear alone, or with a partner.

2. Free Consumptive Debt

At this age, a person already has much greater financial responsibilities than in previous ages. Especially if you are married or have children.

Therefore, as much as possible all consumer debt installments such as gadgets, non-essential debt, and other items are completed as soon as possible. Resist the temptation to add to your debt list. You should be aware not to behave consumptively and stay away from unnecessary debts.

Read also: The Importance of Preparing Family Insurance

3. Have Sufficient Emergency Fund

An emergency fund is one of the important aspects that you must have in order to achieve financial health, especially if you are over the age of 30.

At the very least, the emergency fund you have should have reached the amount of your salary for 6 months. With an emergency fund of at least 6 months, you will have safety net that you and your family can rely on when something unexpected happens.

4. Have Valuable Assets

Valuable assets owned can be in the form of houses, apartments, or private vehicles that have been paid off. Try to have valuable assets even before you reach your 30s. Another example is taking a mortgage or home mortgage.

Because, if you don't do it right away, you may not be able to pay it off when you retire and may lose your place of residence.

5. Have a Savings of 1 Year Salary

Ideally, at the age of three, you already have savings equal to your salary in one year. So, if in a year you have an income of 150 million, then your savings should be that much too.

6. Have Insurance

In this modern era, having insurance is a very important aspect for a person to have. The reason is, by having insurance you don't have to worry when something unwanted happens to you. At the age of 30 years, a person's body has begun to be far from young. You will start to feel your body age sooner than you think. Therefore, having insurance will be very helpful in maintaining your financial health if something unexpected happens.

7. Already Prepared Retirement Fund

Have you prepared a retirement fund? You better prepare as soon as possible. The sooner you start saving for retirement, the more funds you will get when you retire and the burden you will feel will be much less when you retire.

Here are some steps or tips you can take to achieve good financial health without 3M money. If there are some steps or tips that you haven't done at the age of 30, don't despair. You can still start doing it from now on!

Managing finances properly should be taught by parents from an early age. Well, Whiz can help you and your child in the financial education you teach them!