Entering into your 30s is an important time in a person’s life. By this time, hopefully you have acquired plenty of experience in the job market. That should translate into more money and better investment strategies. As you reach age 30, if you have already purchased your first home and have started to make more money, then you are in a good position to learn about more sophisticated investment strategies. Here are some good tips for you to focus on as you enter the next stage of your life.
First off it is extremely important that you start to pay down any debt that you have occurred as a 20-something. If you have credit card debt, start their first since the interest rate on your credit card is probably higher than what you would receive if you were investing in the stock market. It’s best to just use that money to pay off that credit card debt. The same thing applies to student loan debt. Look to eliminate those two things first before investing.
Stabilize Your Investments
As you age, look to reduce your risks by holding fewer stock and more bonds. When you are in your 20s, it is easier to have a risky portfolio because you have more time to recover. Once you get into your 30s, you need to have a safety net established. For instance, look to set up an emergency reserve account, as well as disability insurance.
As you enter into your 30s, you may start to look at the future and retirement to ensure that you are setting your future up. This is when you need to look at things such as life insurance and a 401 K. See if you can get a full match from your company’s 401 K. Just remember that if you plan on working for a long time, then you do not have to save as much. However, if you retire early, then you should look to save more money for a longer period of time. If you have not already gotten a life insurance policy, you should get one now. The older you get the more expensive policies can get. Make sure you shop around and compare life insurance quotes before settling to ensure you get the best possible rate.
College Funds for Children
Another major issue to look at as you enter into your 30s is children. If you want to have children and haven’t had any children yet, you will likely have them in your 30s. This will shift your saving and investment strategy, and you may start saving less for your own retirement and start putting more money toward child related expenses and a college fund. Remember that you do not want to go overboard at the expense of your own long term planning, which can be a delicate issue.
The most important tip for you as you invest in your 30s is just to determine what your priorities are. It may be helpful to make out a list of goals that you want to accomplish.