Banker's View : Dirty Thirty's Personal Finance

"The right time to start is START NOW."

So you are in your dirty 30s, what can you do regarding your personal finances...

When you are in your 30s the biggest asset that you have is years ahead of you till you stop working and claim retirement.

TIME is MONEY 

Lets assume the following:

You are age 35

You will work till age 65

Have loads of debt, lets say $60000

When you have to look at your personal finances you have to think of your self as a Company a Corporation. So as a CEO of your company you will have decision to make. Need to make sure that your company is running at a surplus not a shortage/loss. You have to make sure that your company is running on all cylinders at their max. You need to make  sure that the workers (all you) in the company are happy as well. You need to make sure that company has a good status in the world around you. 

"Most of all make sure this company is growing."

Your company will have different departments that need to be looked after. 

Here is break down of your company: 

All these departments need to be taken care of other wise your company can run into crises.

Step # 1

Get the Audit Department fired up and ready up pull up them sleeves. You need to become an investigator. Print out 3 to 6 months statements from all your bank accounts and credit cards and loans. 

Step # 2

Categorize how ever you want to categorize these transactions that your company has been performing for last three or six months. Here is an example. But make your own, because it will be more fitting to your circumstances!

This is the key step, if you mess up here while collecting data your company is defiantly going to hit rock bottom. When you have done an analysis and categorized your transactions. Compare the three or six months and see if these expenses are pretty much the same amount through out the months. 

Now that you have the numbers, calculate an average amount you spend per month. Take the total sum of three or 6 months and divide it by three or six to get an average. 

Step #3 

Now you know how much you spend on each month. You might be surprised to see some of the expenses are out of control, or you are pretty much spending the same amount of money every month on particular expenses. 

Take this monthly average expense and subtract it from your average monthly income for those 3 or 6 months. 

Income - Expenses = Surples or <Deficit> 

If you have a deficit that means you have a short fall in your income you earn or you are spending way too much on a particular expense. 

The steps you can take here are the following:

1. Reduce your expenses 

2. Get another job

I hate both of these options!

*The only one you can consider is reducing your excessive expenses that are just a bad habit. 

Here is my recommendation!

Get a raise at your current work place or upgrade to a new job! 

Simply spend money on your education, educate your self. Take courses that you need to take that can get you that raise. HOWEVER, you should also have interest in the work you do and workplace. Just taking courses to get a raise is not a good idea because you need to make sure that you have intentions to follow up further and advance in your career.  

Here your education department will come in to play. Surly you will have higher expenses and will take time, but once you are done it stays with you. 

This way your company is growing.

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