Here’s a letter to all the soon-to-be and new 30-year-olds!

It’s time to talk about money goals and taking charge of your financial future. 

Your thirties are a crucial period when it comes to building a solid foundation for long-term financial success. 

So, in this blog post, we’ll explore some important financial goals for your 30s.

I’ll also explain how you can keep to these goals to retire without worries.

The thirties are a crucial stage of anyone’s life, and although there’s no pressure, you need to take your finances more seriously than ever!

What are financial goals?

Financial goals are specific objectives you set to help you achieve your desired financial status. These financial goals include earning, spending, saving, or investing money.

Financial goals are usually set to guide your decisions and help with planning. It is also time-specific, which is the case for any goal. 

Your financial goals can be short, medium, or long-term. It can also be personal or related to your business. You can have saving, retirement, investment, or education funding goals.

Setting financial goals is almost the same as setting other types of goals. You must make it specific, measurable, achievable, relevant, and time-bound (SMART).

You need financial goals at all levels of life, but they become more necessary in your 30s because your 30s will probably be the most unpredictable time of your life.

Without specific financial goals, living through your 30s without making significant achievements can become easy.

There are many financial goals for your 30s, and although they should continue the practices you started in your 20s, you can still kick off your journey to financial literacy with them.

The Goal is the focus
The Goal is the focus

Important financial goals for your 30s

As you read through these goals, remember that they are subject to consideration because we all have unique circumstances. You can take these suggestions and refine them to fit your reality.

Here are some important financial goals for your 30s:

1. Increase your income

The uncertainty that comes with your 30s is unavoidable, no matter how prepared you are. Your 30s is when you are either just kicking off your plans or making new ones, like getting married or having kids.

It means you will lose money, and the best way to prepare for money loss is to earn more.

Increasing your income can bridge the gap that will occur because of the increased money output.

2. Build your emergency savings

In your 30s, your emergency savings goal is more than things for leisure. The rule of thumb is that you build your emergency savings to be sufficient to cater to your and your family’s needs for at least six months.

It gets a bit sketchy when you are trying to imagine what can happen, and it’s not like you can predict a medical emergency or how much it will cost. Hence, using your monthly expenses as a yardstick for emergency savings is safer.

Having a worthy investment also affords you enough flexibility to take some risks. You can pay that major expense or invest in your business knowing that you have something you can fall back on if you don’t get the profit back on time.

Build your emergency savings to handle a year’s worth of needs if possible.

Build your emergency savings to handle a year’s worth of needs if possible.
Build your emergency savings to handle a year’s worth of needs if possible.

A year’s worth of needs for you and your family should be enough to cater to any emergency. 

This does not mean that you stop saving once you hit that milestone. You can create other forms of emergency funds, like medical emergencies, car emergencies, and so on.

3. Pay off All your debt

If you are in your 30s and haven’t paid off all your debt or have a solid plan, you are setting yourself up for a major disaster.

Your 30s are not a period for cash leaks. You need to build up your financial status and maintain significant financial security.

After your 30s, you are already 40; in less than three decades, you are considering retirement. 

Ensure that one of your financial goals for your 30s includes paying off all debts, whether major, minor, high-interest, or low-interest.

When you do this, it gets easier to plan with the money that comes in and ensure that every dime is put to work for you and not others.

4. Increase your retirement savings

Of course, saving toward retirement is crucial in your 30s—this is something you should’ve started in your 20s. The goal is to increase your retirement savings by at least 10%.

I know that it might look impossible with living expenses and the kids’ education.

However, there are ways you can increase your retirement savings without affecting your living conditions.

For example, you can divert the money you usually use to pay off debt into retirement savings.

If you also have extra money for miscellaneous monthly expenses, add it to your retirement savings. Y

ou can also put the profit from your investments into your retirement savings instead of spending it.

Regarding retirement savings, don’t forget to regularly contribute to your employer’s 401(k) or 403(b).

5. Start term life insurance

It is common knowledge that the average 30-year-old today is married. Even if you are not married, when you are 30, you are already thinking of your family’s comfort. It starts with making sure you give to your parents, helping your friends, and providing comfort for your family.

However, one of the unplanned events in life is death. What happens if you kick the bucket? How will your family cater to themselves efficiently with the loss of a parent/spouse?

Hence, you must plan for this event as you advance and secure your family’s financial status even when you are gone by taking out term life insurance.

There are different types of life insurance, like cash value or whole life policies; however, term life insurance is the best coverage for your family.

With term life insurance, you pay a monthly premium for a stipulated time. It could be $1,000,000 for 40 years.

What happens with term life insurance is that if you pay your monthly premium every month without default, even if you don’t complete the 40 years, say in the event of death, your beneficiary still gets paid the full price of the term life insurance ($1,000,000) by the company.

If you are still alive by the end of the term, you can extend the period and continue payment.

6. Start college savings for your kids

One of the best financial goals for your 30s is to make sure you save for when the kids start college. College tuition costs are high unless you opt for a free online degree somewhere.

Once the kids start coming, consider setting up a college fund account for them, like the 529 college savings plan. With this account, you can save money and watch the interest grow.

Although you have to pay tax on the amount you put into the 529 plan, you don’t have to pay tax on the interest it generates.

So, let’s say you put $50,000 in total into the account, and the interest grows to $70,000. You pay tax on the $50,000, but you don’t pay tax on the interest of the additional $20,000.

7. Get a financial advisor

In your 30s, there are many financial decisions to make. With so many options and factors to consider, it’s easy to make mistakes.

A financial mistake made in your 30s can be fatal because you might not have time to get back up and recover what you’ve lost.

However, getting a financial advisor can help you reduce the risk and save you time. 

You can also get a financial advisor if you have complex finances, including mortgages, insurance, retirement accounts, college savings, and maybe a side business. Don’t forget that you also need to pay taxes. 

Engaging the help of a financial expert or advisor can make the process a breeze.

Depending on your availability, you can also engage a financial advisor to mentor you and help improve your financial literacy.

This way, you can make sound financial decisions even when your advisor is unavailable. Remember, your current choices can greatly impact your future financial stability.

8. Focus on investing

Another important financial goal for your 30s is to focus more on investing than saving.

When you save—which is good and necessary because it is without risks—the money is stagnant.

You receive your money the exact way you left it or with a slight increase, depending on the financial institution you use.

However, when you invest your money, you free the money to get more money.

Investments are a profitable, legal, and professional way to increase money. 

Due to the number of financial plans you need to make in your 30s, you might need more than your earnings to cover them all because you still need to provide for your family’s immediate needs.

A good investment can help you save more for college, retirement, and building your emergency fund without affecting your take-home.

9. Track your credit score

Your credit score showcases the possibility of you repaying the money you borrow. It is a measure of your creditworthiness.

The widely used standard score is the FICO score, which is on a scale of 300-850.

You must track your credit score and ensure it is high.

A high credit score can save you thousands of dollars on mortgage fees because your credit score determines the mortgage rate.

Even if you don’t plan to buy a house, your credit score can determine if a landlord will rent a place to you (some rentals have a minimum credit score requirement).

Some insurance companies in some states also use the credit card scores of customers to determine their premiums.

California, Hawaii, and Massachusetts are the US states that have banned using credit scores in setting insurance rates.

Other benefits of having a high credit score include not paying deposits for utilities, improved chances of employment, and other services that require a credit check.

acquire skills to improve your financial literacy

Final Thoughts

Congratulations on learning about these crucial financial goals for your 30s!

Setting these milestones and taking steps toward achieving them lays the groundwork for a financially secure future. 

Remember, it’s never too late to start; small steps can yield significant results. 

Embrace the power of compound interest, automate your savings, and make informed decisions about investing. 

With determination and smart money moves, you’ll be on your way to financial freedom.

So, let’s embark on this exciting journey together and make your 30s a decade of financial empowerment!

Share your progress and experiences, or ask me any questions in the comments below.

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