As you enter your 30s, you must make wise financial decisions that will benefit you long-term. This decade marks a critical period of growth and development for many individuals in terms of career progression, family planning, and overall financial stability. Therefore, making the best financial decisions in your 30s is crucial to secure your future.
In this article, we will discuss some of the most important financial decisions, like saving in your 30s and where to invest in this critical period of your life.
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How to Save Money in Your 30s
- Start Investing
Your 30s is the best time to begin investing. Generally, people at this age have higher-paying jobs with stable incomes and usually focus less on changing companies for growth. With a kind of financial security available, starting to invest is one of the best financial decisions to make in your 30s.
It’s time to diversify your portfolio with several options on where to invest in your 30s. You can think of investing in low-risk options like fixed deposits or recurring deposits or go for a more volatile market like equities, stock markets, or bonds.
- Revise Your Budget
Budget is a reflection of your lifestyle at a particular stage in life. With major changes in your finances, you’ll have to make sure you are changing your budget accordingly.
In your 30s, you’ll have significant financial responsibilities, like loan or mortgage payments and child education and care expenses. And with so many obligations, you must alter your budget accordingly, limit unnecessary costs, and start saving in your 30s. This list may include reducing eating out, searching for cheaper alternatives for groceries and other necessities, and more.
- Close Your Debts
If you are considering saving in your 30s, a great way to consider it is by closing all your debts before the interest rates build up. As an adult in your 30s, a major chunk of your income will go towards paying credit card bills, loan EMIs, mortgages, and more. So, to save in your 30s, paying these debts off as soon as possible is essential.
The first step to getting debt-free is to analyse your existing loans. See which loans are taken for what reasons, their payment plans, and the parameters to pay them off. If you think a certain loan will add more interest rates, pay it off regularly.
- Advance in Your Career
One of the best financial decisions to make in your 30s is working on moving ahead in your career. This is the right time to revisit what you want from your career and move ahead to achieve your career goals for job satisfaction. You now likely have a ten-year experience in your resume. So, you can use this decade of exposure to your advantage and take the risk to either work on going for that managerial position or open your own business.
Although it’s ideal to be comfortable in your current work, your 30s is the best time to experiment and take risks for greater job fulfilment. This way, you can also expect a significant income increase, thus saving more in your 30s.
- Get a Health Insurance
Even though you live the healthiest lifestyle, you never know what can happen next. Here’s where health insurance can help you provide a financial safety net and help you save in your 30s, as it can save you from hefty medical expenses and even allow tax deductions on your health savings.
- Give Priority to Emergency Savings
A financial emergency can arise anytime, and you must be sure you are backed up to face it in case of any income loss. So, another best financial decision to make in your 30s is to have a pot of emergency funds you can use if you face a financial hiccup.
The goal is to have at least four to six months’ worth of your monthly income in your emergency savings account to face a financial problem or unfortunate loss of permanent income.
Start Planning for Your Retirement
Saving in your 30s is all about focusing on investing and creating emergency fund pots in case of a financial hiccup. And if you’re wondering how to save money in your 30s, one more ideal way is to start building your retirement funds. You may feel like thinking about retirement in the 30s is a bit too early, but it’s never too early to build a safety net after reaching the end of your income age!
Author Bio: Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been moneywise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo Save, a digital savings account that offers up to 7% interest rate on savings along with benefits such as insurance on balance, safe & secure banking, and so on. Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.