If you’re in your 30’s, many life transitions happen like moving up in your career to buying a home. So getting started in your 30’s and making smart moves with your money will help in to achieve your future financial success and will provide you with plenty of time to save for retirement and the future.
The first priority is to set your goals and diversified your investments i.e., don’t invest all your expenses in one kind of investment only. Invest in various type of investment plans based on your needs and for meeting your goals.
Below some of the advice for investing correctly when you are in your 30’s:
1. Taking care of the immediate needs by yourself: Ensure that you have at least 6 months of emergency funds already saved and be financially organized i.e., keeping accurate records of your finances and know where your money is. So spend time on tracking and reviewing your money. This will let you know if you are moving in the right direction or not. Keep on re-balancing your investment as per your current situation.
2. Ensuring in taking care of your family: Its to assure not leaving your family screwed when you die. So invest in Life Insurances which will replace your income and your family won’t become homeless. Investing in Disability Insurances, this can replace your income so your family can leave if you went disabled for unfortunate misfortune. Invest in Child Plans for securing the future of your children’s education and other purposes. Invest in good Health Insurance Policies for all family members which will save a lot of your hard-earned money during hospitalization and other medical expenses.
3. Saving for the future: Once you have the essential tools for your family protection, now you can go for your future savings. Start saving systematically. Embrace Stocks, invest in various pension plans available which are tax-free, etc. If you have any excess money invest in standard brokerage accounts. Investing in a set schedule will make you a better long-term investor. Focus on the percentage of income saved and not the amount of money. By saving based on a percentage of income will help you save more as you earn more. But don’t take risks that you cannot afford while investing.
4. Planning for big event expenses: Once the above items are taken care-off now you can look for balancing life events. Pay off all your debts that are still continuing like a student loan, credit card debts, etc. Then use the leftover money after saving for retirement and investments to plan for things like vacations or weddings as these expenses are flexible.
Wealth can be built by anyone if they willing to stick to some best practices for money management:
a) Focus on the habit of spending and saving intentionally.
b) The building of wealth needs time and doesn’t happen in days or months. To avoid get rich quick schemes.
c) Seeking guidance from experts or people who are successful in growing wealth.