Getting started in your 30s seems a little too late for many people but actually, it should be the period where you have more financial freedom. Some people may have kids that they need to pay for and other people may be child-free. For most people, they likely have money to spare because they are 5+ years into their careers and usually, their careers would be paying well at this point.
There are several people who have started investing at this point in their careers however, there are a select few who have invested in a single penny.
Investing is a great way to build wealth for your retirement fund. For other people, they use their investments to earn an additional income on top of their wages. Whatever the reason for investing, it is a good way to build wealth and if you are starting in your 30s, you are not too late.
How To Balance Life and Investing In Your 30s
One of the issues with your 30s is that everything seems to happen during this period. This means you start to have children, you have a mortgage to pay and you enjoy more expensive holidays because of your kids. Other people may consider getting married during their 30s as well so they have more money to spend on their wedding. It is safe to say your 30s can be the most expensive years of your life.
These life events that seem to be never-ending on your finances can leave little room for you to invest. Nevertheless, you are also likely to have more money during this period, allowing you to invest your money.
This is where you master the art of financial balance. Investing allows you to not only save for your short-term future but also your long-term. The only difficulty with this is that you must be more cautious with where you put your money.
Understand Your Financial Goals
This is a big part of your 30s. Understanding your financial goals is one of the most important parts of your 30s, especially when you start to invest. There are a few things you need to establish with your financial future.
First, you need to take care of those initial financial priorities which include your bills and mortgage. You also need to make sure your family are taken care of, both for the future and short-term. You must save for the future while preparing for big life events.
One of your main priorities should be to have an emergency fund. Emergency funds prepare you for the worst and everybody should have a 6 month emergency fund.
The next step is to make sure you are financially organised. The only way you can ensure financial stability for your future is to ensure you have your current finances secure. Keep records of those things you are paying for, especially for those expensive payments that you need to pay out each month.
Once you have your finances in check, you should invest your money.
Is A Financial Advisor Required In Your 30s
Financial advisors are great for those who can’t get their finances under control. They will help you make your money manageable and they can direct your money down the right path. One of those paths is investing and there is a lot to know about investing which is what your financial advisor will know.
As you are behind with investing then you should consider a financial advisor to create a plan for your finances. Ensure you pay for this service because you will get a premium plan together.
If you don’t have the money for a financial advisor then you should consider a robo-advisor. Robo-advisors are great for doing all of the hard work for you with your investment. All you need to do is put your money into a fund and your robo-advisory app will do the rest. This means it will provide automated investments that require.
How Much Money Should You Invest In Your 30s
When you are in your 30s, you have more money to spend and usually, that goes on expensive holidays or your children’s clothes. However, with the spare cash you have left over, you should consider investing more. It all depends on your current financial situation but some people in their 30s aim to invest around 10-15% of their wage. That doesn’t sound like a lot but if you aim to invest that much each month and stay consistent, you will soon see this increase over time.
To motivate you to invest more money, the money you invest in your 30s will be worth more than the cash you invest in your 40s/50s. That is why it is important to invest as much money as possible when you start investing.
Summary
There are many people who start investing in their 30s so don’t feel like you have started late. There is nothing wrong with investing in your 30s and if anything, it allows you to enjoy your younger years. Remember, you should also aim to invest consistently as this is much better than investing in bits and pieces. Remain vigilant of crypto scams and other types of online scams and never invest with unregulated brokers to avoid this from happening.
