As an adult in your thirties, you’re more likely to have a lot of work to do – at this point, you’ve been in the workforce for a while, finally starting to feel like you’re not living on a paycheck and realize that, ugh, you’re getting older.
So, friends, it’s time to start thinking about your money seriously. Here are the things you should prepare/act on in your thirties:
1. Evaluate your retirement savings portfolio.
If you’re contributing to your retirement savings account, that’s great! If you don’t have one yet, get started right away. Plan to maximize your contributions and consider other ways to invest other than your retirement account so you can save even more. Now is a great time to take an in-depth assessment of your portfolio. You should work with a financial advisor to review your investments if you are unsure of the best way to do it yourself.
2. Pay off the debt.
Do you have student loans, credit cards, or other unpaid consumer loans? Planning repayments now will allow you to be debt-free to focus on building long-term wealth and pursuing your other goals.
3. Start saving for college, if you want to have children/are planning for your child.
Certainly not at the cost of your savings and pensions, but saving for your children’s education is a great goal. College isn’t affordable anytime soon. If you can ease the burden of debt on your children then you should absolutely do. State-funded account 529 is a great means of saving for higher education.
4. Increase a large number of your emergency funds.
If you don’t have one yet, you need to work to fully fund your emergency account with three months of your basic living expenses. Six to 12 months would be even better. In the event of job loss or an uns insurer emergency, you will have the opportunity to return without incurring tons of additional debt.
5. Get life insurance.
As your financial obligations increase, having life insurance is essential to ensure your expenses are covered in the event of a tragedy. Life insurance is really not something everyone wants to think about, but it is important to have.
Consider life benefit insurance. It gives you insurance when you are alive in addition to having death benefits. This type of insurance can be very useful if you are terminally, critically, or chronically ill and need ongoing income to cover costs.
In summary: In your thirties, your main goal must be to establish and maintain healthy financial habits. Even small changes to improve your finance will have a significant impact on increasing your assets in the long term.