As you enter your thirties, you likely have some real-world career experience on your resume, and you’re probably ready to conquer new financial goals, such as buying a home or saving money to afford other life dreams that are important to you.
This decade of life requires some planning to make sure you take advantage of every opportunity to set yourself up for long-term financial success. Here are six financial strategies for your 30s that can help you reach financial success.
1. Focus on earnings growth.
Typically, your twenties is the period of your life when you build up experience and gain valuable skills that will serve you throughout your career.
During your thirties, you can hopefully cash in that experience for better earnings—and potentially better job opportunities. Experts note that the biggest increases in income earnings come during your thirties, so be on the lookout for opportunities to increase your income and put the extra money into savings and investments.
2. Review your retirement savings plan.
Are you on track to hit your retirement goals? When you’re in your thirties, you will ideally have made some progress toward building up savings for retirement.
Even if you haven’t, or if you haven’t saved as much as you’d like, there’s still time to adjust your saving strategy to hit those end-of-life goals and reach the financial success you've been dreaming of.
Make sure you’re utilizing your employer’s 401(k) plan to take advantage of any employee matching opportunities they offer. If you need to catch up to your savings goals, review your budget for spending areas where you could cut back and allocate more money to retirement savings. Use our Retirement Calculator to see whether you’re on pace to hit your savings goals.
3. Create a savings plan for your children, if you have any (or plan to).
Whether you currently have children or plan to start a family down the road, it helps to create a savings plan for general expenses as well as longer-term goals such as their college tuition.
Consider using a 529 College Savings Plan to create a dedicated savings account for college costs, or work with a financial advisor to build a plan to reach other financial success goals associated with your kids.
4. Diversify your investments.
If you don’t have any investments and retirement savings, getting started should be your top priority. But if you’ve already made contributions to your retirement savings and an emergency fund, continue diversifying your investments to create an even more stable financial situation.
Additional investments can include a Roth IRA and/or Roth 401(k), as well as investments into different funds with risk profiles that align with your age and target retirement date.
You could even consider making investments in real estate if your income and savings permit. This could include home ownership as well as the purchase of investment properties.
5. Invest in life insurance.
If you’re single without any dependents, you may not feel a strong need to invest in life insurance. But if you’re at risk of leaving other people behind in the event of your passing, life insurance is an important way to help bridge financial gaps and reduce money-related stress in the aftermath of a loss of life.
For people in their thirties, life insurance premiums tend to be very affordable. You can determine specific dollar amounts your loved ones would receive upon your passing, providing peace of mind that they will be taken care of should something happen.
6. Create a will.
As you accumulate assets and wealth, you need to have a plan for what would happen if you pass away unexpectedly. This is true even if you’re married; your assets would typically transfer to your spouse in the event of your passing, but it’s important to plan for scenarios in which both of you pass away unexpectedly.
Though these are never fun conversations to have, you should determine who will receive your assets upon your death, and in what amounts. Also, consider things such as the custody of your children and even your pet. You can work with a lawyer to make sure this document covers all of these necessary bases.
As your financial situation evolves and matures, it’s important to keep your financial strategies up to date. Don’t just float through your thirties—make a plan that will use this decade to help you thrive in the years to come!
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