You’ve likely moved beyond entry-level paychecks, you may be starting or growing a family, and financial decisions can begin to carry long-term impact. The choices you make now can set the foundation for decades to come.
1. Get Aggressive About Debt Reduction
If you’re still carrying high-interest debt—like credit card balances—it’s time to eliminate it. Every dollar you pay in interest is money you could be saving or investing. Focus on wiping out high-rate debt first, then tackle student loans and auto loans. This can create financial flexibility and could free up cash for your other goals.
2. Establish a Solid Emergency Fund
Unexpected expenses happen. Whether it's a job loss, medical bill, or car repair, having three to six months’ worth of expenses set aside in a high-yield savings account can provide a crucial safety net. An emergency fund also helps prevent going into debt during a crisis.
3. Prioritize Retirement Savings Early
In your 30s, time is on your side when it comes to compounding. If you aren’t already contributing to a 401(k), IRA, or both, start now. Aim to at least meet your employer’s match, but consider increasing your contributions annually. Roth accounts can be particularly useful if you expect your tax rate to rise over time.
4. Invest Beyond Retirement Accounts
If you’ve maxed out your retirement accounts or want more flexibility, consider investing in a taxable brokerage account. Low-cost index funds or ETFs can offer long-term growth potential. Starting early means you don’t have to invest aggressively to build wealth.
5. Protect What You’re Building
You may not think you need life insurance in your 30s, but if you have children or someone who depends on your income, now is the time. A term life policy is generally affordable and can provide more peace of mind. It’s also a good time to review your health, auto, renters, or homeowners insurance for adequate coverage.
6. Start Estate Planning (Yes, Really)
Even if you don’t have a large estate, having a basic will, power of attorney, and health care directive can help ensure your wishes are known. It’s one of the responsible financial moves you can make—and it can protect your loved ones from guesswork.
Read more articles by Laura Parker