Your 30s are a great time to finally find your footing and come into your own. Youth is a wonderful thing – and I’d still call your 30s fairly youthful. In your 20s you hopefully had fun and explored, but also laid the foundation for your personal finances. Your 30s is where you really start to see the fruits of your labor pay off, which should only help encourage you to keep going. Without further ado, let’s dive into 10 financial tips for your 30s that can have a major impact on your future!
1. Review Your 20s And Fix Whatever You Failed To Do Back Then
Your 20s are a great time to have fun and enjoy life. At the same time, it should also be when you’re laying the foundation for your future. Some extra work, and some extra investing, can save you a lot in the future. Things that seem small now have a way of spiraling into something much bigger in the coming decades – and that has perks as well as negatives.
You can see my tips for your 20s in this article. If you didn’t spend your 20s in the best way, it’s not too late. Check out the tips for your 20s and look at what you can fix or work on improving!
2. Review Your Long-Term Financial Goals And Adjust As Needed
This is the point where it’s normal to start thinking about how you need to plan for your retirement, or prepare for any other long-term financial goal. Now, you may still have a long way to go before you get there, but you can start checking off basic things. Think about going above your employer’s 401(k) match or maxing out a Roth IRA, for example.
Do some research and think about your long-term plans. Again, it’s okay for it to be a ways off. If retirement is your main goal, that’s fine. However, many people have other financial goals, and it’s crucial to specify them if you have them and stay on track. The important thing in this stage is to set goals and not forget what they are going forward. Remember to focus on where you want to end up in the coming years.
3. Put Down Roots
It’s time to put down roots. When you were younger, it may’ve been a good idea to travel or be flexible for job openings. Now you’re cemented in your career, and you probably have a family to take care of. That means it is time to settle down a bit. This isn’t a bad thing – buying instead of renting can save a lot of money if you plan on being in the same location for several years.
Get Serious About Insurance
Since you’re settling down, it’s also important to take care of your insurance needs. Insurance can be expensive, painful to deal with, and hard to understand – but it’s necessary. At the end of the day, insurance agencies will charge you more if they think you’re a higher risk, and less if you’re at a lower risk. Shop around for the best prices, and make sure you get the coverage you need for unexpected events and disasters.
4. Update Your Budget After Getting Married And Having Kids
As I mentioned in my tips for your 20s, a lot of people like to increase their spending whenever they get pay raises. Of course, it’s important not to fall into that trap. Once you have made your initial budget – and tweaked it until it’s perfect for you – you shouldn’t change it unless there are major life events. Obviously getting married and having kids are major life changes, so make sure you update your budget accordingly when that happens.
5. All High-Interest Debt Should Be Gone
Eliminating high-interest debt is one of the best uses of your money. Think of it this way, eliminating debt is a guaranteed return. As a general rule of thumb, I consider anything with an interest rate over 5% too high and an absolute emergency to take care of. Some people may disagree with that, but that’s my personal line. Tackle your existing debt with the best method that works for you.
You should’ve started in your 20s, so hopefully you’ll be free of debt in your 30s. Well, free of consumer debt and most any other – it’s okay to not pay your mortgage off early if you don’t want to.
6. Max Out Retirement Accounts
Taking advantage of your tax-advantaged retirement accounts is a must in any plan for your future retirement. If you’re reading this blog, I’m sure you’re aware of how much I stress the value of investing. Retirement accounts take this up a notch – because they help alleviate some of your tax burden.
In your 20s, you should’ve met your company’s 401(k) match and put anything extra into a Roth IRA. In your 30s, you should do your best to max our both of these retirement accounts.
7. Work Towards Reaching The Best Stage Of Your Career
Now is the time to crank your career up a notch. This may be a time of turbulence. You may change positions, get large raises, see promotions, and so on. There are multiple stages of your career, but you should be hitting your stride by now.
It’s okay to choose an abnormal route, or one that leaves you with less money. Not everything is black and white, so be sure you consider your options carefully. Do what will make you the happiest and most secure with your decision in the long run. Try not to live a life of regret. Blindly following passion isn’t good, but neither is ignoring your mental and emotional needs.
8. Understand Your Cash Flow Strategy
Cash flow is a simple term, and sounds like exactly what it is. It’s just how the money is flowing in or out of your household. There couldn’t be anything simpler, right? So, your cash flow strategy is specifically how you’re planning what is coming in and what is going out. Again, it’s definitely a simple concept, but the details can be rough for those not used to managing their finances. For example, in retirement you may have to be liquidating investments routinely to pay bills, and the goal will likely be to keep those bills as static as possible so that there are no curve balls.
9. Monitor Your Net Worth
An individual’s net worth is a great indicator of their financial health. It’s a way to see their current “value” as it strictly relates to money. In other words, it takes everything you own and sums it all up, subtracting any debt you may have as well. This includes your savings accounts, investments, properties, and just about anything else you can think of. If you’ve struggled with the concept in the past, don’t overcomplicate it for yourself. It’s just a way of putting a value to your total belongings. It’s an abstract concept, but overall straightforward.
10. Get Serious About Estate Planning
At the end of the day, estate planning is an absolute must! Making an estate plan sets up your family and is a good way to get your finances in order. On top of that, it gives you a clear insight into the current state of your finances and can give you a good idea about where you need to end up. Therefore, I consider this a must in your 30s – especially if you have a family.
Conclusion
Hopefully this gave you some ideas about how you need to keep yourself on the right track. If you have any thoughts or tips of your own, be sure to let us know in the comments. For more content like this, and a free budgeting template and financial goals worksheet, be sure to sign up for the Bitter to Richer newsletter!
