Financial Success in Your 30s
Now is the time to ramp up savings and safety nets.
We talked a couple of weeks ago about what financial success in your 20s might look like. Today I want to address success in your 30s, and a few strategies for continuing to work towards a solid financial future.
This decade is the time to get laser-focused on building the walls of your financial house. It can be a hectic time, as many folks are buying homes, getting married, starting families, etc. So, with that in mind, try to keep things simple.
Make sure to begin by building a financial safety net. Start with adequate life insurance that will provide for the family in case something happens. We can help you determine the amount of coverage that’s right for your family. You’ll also want to buy disability insurance. You may think accidents aren’t going to happen to you, but statistics indicate that nearly half of people under age 35 will become unable to work for 90 days prior to age 65. Keep in mind this includes surgeries, etc., as well as accidents. Be sure to build up an emergency fund of at least three months’ worth of expenses as well.
Next, it’s time to ramp up your savings to 20-25 percent of your income. Your 30s is a unique time when you likely have the cash to save a good bit, and time on your side to take advantage of early investing. Don’t waste this opportunity!
Finally, the 30s can also be the decade when you see a lot of your friends find “success” with bigger homes, fancier cars, and more lavish vacations. Remember: what you don’t see is how much debt these folks might be in, or how lacking their savings accounts may be. Use the discipline you built in your 20s to say no to yourself and delay gratification. Avoid the death by 1,000 cuts that can come from trying to keep up with the Joneses.
What questions do you have about building financial success, no matter what life stage you’re in? Give us a call. We’re always here to help.