When they say that life begins at forty, the general assumption is that one is more likely to have the skills, means, and experiences necessary to enjoy life more. But it is also true that the lessons you learn and the life choices you make in your twenties and thirties actually pave your life on the fourth floor and above.
Undoubtedly, a big part of these lessons and choices actually involve financials – at least one way or another. And when it comes to money matters, being in your thirties can be advantageous in several ways.
Here are four advantages to being in your 30s compared to your 20s.
1. You Become Smarter about Money in Your 30’s
While in their 20s, one is more likely to spend money living on a paycheck-to-paycheck basis. You’re probably still fresh from college or earning an entry-level salary if you’re employed.
And with recent statistics pegging the median age for marriage at approximately 29 and 31 for women and men respectively (in the US), a person in their 30s is likely to be more financially disciplined than a person in their 20s.
With age comes more financial knowledge and understanding. Individuals in their 30s can use this knowledge to better manage their money and make informed financial decisions. This is especially when it comes to budgeting, managing debt, setting financial goals, and saving for a rainy day.
2. Your Car Insurance is Likely Cheaper
Car insurance is typically more expensive for drivers in their 20s because they are often considered to be a higher risk. This is due to a variety of factors, including a possible lack of driving experience and the fact that drivers in this age group are more likely to be involved in accidents or traffic violations.
Additionally, younger drivers are often seen as more likely to make risky decisions while behind the wheel, further increasing the chances of an accident. Insurance companies also factor in statistics that show that drivers in their 20s are more likely to file a claim than those in other age groups.
On the other hand, you’re more likely to be careful on the road in your 30s and less likely to get involved in traffic violations. With responsibilities, maturity, and financial goals in mind, you can even make more savings from car insurance by using a service like iselect.com.au to compare insurance quotes.
3. Potentially Higher Earnings
By the time a person reaches their 30s, their career is typically more established and their earning power is higher than when they were in their 20s. With increased earnings, individuals can save more money and start to build their financial security.
As they start (or plan to start) a family, this is also when most people come alive to the importance of starting to plan for retirement, and investing for their family’s future financial security.
4. Better Health and Well-Being
Needless to mention, healthcare costs have steadily increased over the years, with insurance claiming a huge portion of the average American’s income each month. But health insurance companies also know that a person in their 30s is more likely to put self-care at the top of their priority list.
Health insurance might not always be cheaper in your 30s than in your 20s, but the fact that you observe a better diet and a healthier lifestyle, in general, can make a huge difference when it comes to out-of-pocket medical costs. If you’re employed and earn a decent salary, your employment benefits package will likely have a more lucrative health insurance policy as well.
In general, your age can put you at an advantage or disadvantage when it comes to financial matters. If you are in your tertiary years in life, the above are just a few financial advantages you can leverage to better yourself and your loved ones.