30 Things Every 30-Something Should Know About Their Money

imtmphoto / Getty Images/iStockphoto Your 30s are often filled with major financial and personal milestones such as getting married, having kids and buying your first home. This is also a time when you may get aggressive about paying down student loans and other debts. And although retirement seems far away, the choices you make during this decade can affect you when that time rolls around.

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With all of that in mind, here are 30 things every 30-something should know about their money. 1. Get a Clear Picture of Your Finances

“Do a ‘financial 360’ in your 30s, meaning, take a look at your financial picture, your net worth and your retirement accounts, and see where you are so you can plan for your next 10 years and beyond,” said Ramona Ortega, founder and CEO at My Money My Future .

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“If you don’t have a financial plan, get one, and make sure you at least have a retirement account and a Roth IRA,” Ortega said. 3. Think Carefully About Every Dollar You Spend

“Before spending, realize that every $1 you spend today could be worth $10 in retirement,” said Barbara Friedberg, investing expert and owner of Robo-Advisor Pros . “Consider whether that $200 gadget is worth sacrificing an extra $2,000 in retirement.”

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“Contribute enough to your workplace retirement 401(k) or 403(b) to get the employer match,” Friedberg said. “Even better, contribute the maximum amount allowed by law if you can swing it, and your retirement will be covered.” 5. Buy Life and Disability Insurance

“If you have kids, get inexpensive term life insurance and disability insurance (if not covered at work),” Friedberg said. “This way, your family is covered for the unexpected.”

See: In the Battle for Houses Boomers Are Mercilessly Outbidding Millennials 6. Eliminate Credit Card Debt

“No credit card debt — no exceptions,” Friedberg said. “If you have it, pay it off. If you can’t afford to pay in full, you don’t need it. Debt is the best way to slow up or halt your wealth accumulation.”

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“People in their 30s should be doing absolutely everything they can to pay down all debt, including student loans,” said Chalmers Brown, former CTO at Due . “Start with unsecured debt, such as credit cards, and keep going until it’s all gone.” 8. Track Your Saving, Spending and Investing

“Use a money app like Stash or Acorns to keep track of your money, and add to your saving and investing funds,” Friedberg said.

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“You’ll never make life-changing money at your day job,” said Steve Chou, founder of the blog My Wife Quit Her Job , a resource for starting your own online store. “By starting a side hustle, you can make money on the side and work towards being your own boss. Plus, you can expense many of your purchases related to your business and save money on taxes.” 10. Invest Now To Be Ready for Retirement
“If you’re scared of investing, start with an S&P 500 index fund,” said Derek Sall, owner of LifeAndMyFinances.com . “It’s diversified and has historically earned 10% each year.” See: Gen X Saw Wealth Increase 50% During COVID — What’s Changed for Those Between Millennial and Boomer? Bob Lotich, certified educator in personal finance and founder of SeedTime.com , recommends setting up an automatic $300 monthly contribution to an S&P 500 index fund.“With an automatic $300/month contribution, you could cross the seven-figure mark in your 60s, assuming a 10% average return,” Lotich said. “But with each passing year as you get closer to retirement, far larger contributions are required to get you to a million-dollar nest egg. For example, if you wait another 10 years to get started (using the same calculations as the example above), you would only […]

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