Getting Serious about Investing in Your 30s

Financial planning is a good idea no matter how old youwould take to keep you afloat for three to six months
are, but your 30s are a great time to really focus (orand put that money in a hard to get to bank account.
get started) on a plan for the future. By now, you areDon't touch that money unless absolutely necessary
probably more established in your life than you were afor a real emergency such as unforeseen medical
decade ago. You have had some time to build yourexpenses.
career, ideally with a company-furnished 401(k) forDo not forget to budget for adequate insurance to
retirement or some other long-term plan. Whether youhelp protect yourself and your possessions. While
have a family and a mortgage or are still renting andmost people receive health insurance through work
building wealth in other ways, you can always benefitand are required to have auto insurance, don't neglect
from a sound financial plan for the years to come.other things like homeowners/renter's insurance, life
Here are some common planning concerns for peopleinsurance, and even disability insurance. If the
in their 30s and how to address them:unexpected occurs, not having insurance can undo all
Deal with debt - The average American family carriesof your years of savings.
over $8,000 in credit card debt over multiple creditReally focus on retirement - If you have an
cards. As many people know, paying only theemployer-sponsored 401(k), you are lucky, and have
minimums on a credit card does virtually nothing tohopefully been contributing to it regularly since your
lower the principle as the minimum payment barelycareer began. If so, keep up the good work.
covers the compounding interest.If you do not have an employer-sponsored 401(k) or
If you find yourself drowning in credit card debt orindependently opened an IRA for yourself, the time to
unable to make a dent in the principle, make a plan tostart is now. While you many not be able to save as
get yourself out of debt as quickly as possible. Createmuch money as you would have if you had begun
a budget and allocate as much money as possible tosaving in your 20s, any money saved is a good start
paying off your credit cards, starting with the highestto a more secure retirement. You can also look at
interest rate card first.other options, including investment portfolios with
If you find you still have student loan debt hanginglong-term options, since you still have a few decades
around from your 20s, it is time to get rid of those, asbefore you'll need to tap into those funds.
well. As with the credit cards, come up with aOne of the best things about being in your 30s is
long-term solution for getting the debt paid off, even ifhaving a better idea of what you want out of life. Use
it takes you the next five years to do it.that drive to make wise financial decisions, and don't
Pay attention to savings and insurance - Anworry too much if you haven't made a plan just yet.
emergency fund for unexpected expenses is alwaysAs long as you start soon, you should be able to tuck
a good thing to have. Estimate how much money itaway a nice little nest egg for the future.