Are you worried about what your financial status will be like in your 30s? Feeling unsure about how to save, invest, or plan for retirement? The good news is that you’re not alone.
Many people struggle with managing their money effectively. Without a solid strategy, it’s easy to make poor financial decisions that can haunt you for years.
But don’t worry, that’s where this article comes in. We’ll provide you with practical steps you can take to get your finances in order and secure your future.
This article will guide you through essential money moves like creating a budget, paying off debt, building an emergency fund, and investing for long-term growth.
Keep reading to learn the key strategies for achieving financial security.
READ MORE:Secrets of a Self-Made Millionaire: How to Build Wealth Through Passive Income
Simple Things to Do in Your 30s to Safeguard Your Future
- Keep Getting Rid of Debt
- Think About Starting a 529 Account
- Increase Your Retirement Savings
- Build an Emergency Fund
- Create a Budget and Stick to it
- Multiple Investment Plans
Read on to learn how to apply this in your life.
Keep Getting Rid of Debt
Now you are in your 30s and hopefully, you’ve been getting rid of some debt you had from your 20s.
But, if you still have some lingering credit card balances, student loans, or other debts, now’s the time to really start getting rid of them.
Now think about this – you’re likely earning more income at this stage compared to your 20s.
So, instead of that salary increase going towards fancy clothes or cars, put it into your debt.
For instance, you’ve got a nice raise at work paying $500 more per month. Rather than increasing your spending, have that extra $500 automatically go towards your remaining debts each month.
With this, you can actually pay off those student loans that seemed like they could never get paid.
Moreover, getting rid of these debts will allow you to channel that money toward building wealth through investing and the like.
Stay focused and start making payments, soon you can kick out debts for good.
Starting a 529 Account
Have you noticed how expensive going to college is these days? The average 4-year degree now tops $36,000 per year including tuition, housing, meals, and all the other expenses.
So, unless you want your future children drowning in student loans for decades after graduation, you’ve got to get proactive about saving early. That’s where 529 plans come in.
Basically, a 529 plan is a special account that helps you save money for your kid’s education.
You just have to put money and rest while the money grows. The sweet part of this is that you don’t have to pay any taxes as long as you use the money for college expenses.
Further, you can start contributing to a 529 literally the day your child is born. So, if you open one up in your early 30s when your first kid arrives, that money then has like 18 years to grow before they go to university.
On top of the tax benefits, many states also give you a nice tax deduction just for contributing to a 529 plan. It’s like getting free money to help pay for college.
The annual limits on contributions are also extremely high, typically over $300,000 per child. So, if you’re able to save aggressively, you can actually boost your savings.
Just think how much stress you’d avoid by knowing you’ve already built up a solid college fund by doing this in your 30s.
While other parents are panicking about loans, you can breathe easy. It’s such a smart long-term move for your family’s future.
Increase Your Retirement Savings
Getting your retirement savings properly on track is one of the most crucial money moves in your 30s.
This is the decade to really start saving a lot for when you’re older and can’t work anymore. Here’s how you can apply some smart strategies:
Firstly, if your job offers a 401(k) plan, you need to be taking full advantage of it. Especially if they provide any kind of employer match. That’s essentially free money just for saving for your future.
Let’s say your company will put in 50 cents for every $1 you contribute, up to 6% of your salary.
By contributing at least 6%, you’re automatically getting a 50% return on those dollars. It’s an automatic boost to your retirement savings.
But don’t just stick at that match level. Financial pros recommend increasing your 401(k) contributions by 1% each year, if possible.
So, this year put in 7%, next year increase it to 8%, and so on. It’s an easy way to steadily raise how much you’re socking away without shocking your paycheck too much.
If no 401(k) is available through work, no worries. You can absolutely open an IRA account on your own.
This function is similar to a 401(k) with tax-advantaged investing for retirement. The key is just getting started and making regular monthly contributions.
The earlier you begin prioritizing retirement savings in your 30s, the longer that money has to grow from compound returns.
By your late 30s, you could potentially be sitting on a very healthy balance already.
Use your 30s to build momentum so your future self can reap the rewards of getting an early start.
Conclusion
Getting your finances in order is crucial for long-term security and peace of mind. The money moves you make in your 30s can truly set you up for success down the road.
From eliminating debt to boosting retirement savings to investing in your kids’ education, every positive step adds up over time.
Take control of your money today to build the bright future you deserve.
FAQs
When should I start saving for retirement?
The sooner the better! Ideally, you want to start saving for retirement as early as possible, even in your 20s.
The longer your money has to grow from compound interest, the better off you’ll be.
How much should I contribute to my 401(k)?
At the very minimum, you’ll want to contribute enough to get your full employer match if one is offered.
But experts recommend contributing 10-15% of your income to a 401(k) or IRA for a comfortable retirement.
Why is it important to pay off debt?
Debt like credit cards, student loans, etc. accrues interest that basically throws away your money.
Paying off debt frees up extra cash flow that you can instead use to build wealth through saving and investing.
Should I open a 529 college savings plan for my kids?
Absolutely! A 529 plan allows you to save money for future education costs in a tax-advantaged way. Starting one when your child is born gives you 18 years for that money to grow.
What if I can’t afford to make big money moves right now?
Start small! Even saving a few dollars per week and putting it on debt payments helps build positive money habits.
The key is getting started, then you can increase your contributions over time.
