Money

Financial Goals by Age 30

Joshua Cox-Steib | Apr 7, 2022

Financially, the early 30s are often a turning point. It's the era of life where people begin to settle into long-term careers and often find themselves with a higher income than they'd previously experienced. Of course, sizable costs can come with this age, like mortgages and children.

Whatever your situation, determining financial goals for your 30s will involve taking these variables into account and planning for how you want your future to look. Even if you find yourself entering your 30s without having adequately planned, don't panic; it's not too late to start by taking a few simple steps.

How to build wealth in your 30s

Now is an excellent time to begin building wealth so that when you're ready to retire, you have options. For many people, social security on its own isn't enough to live on. That's one reason people begin prioritizing wealth-building and retirement planning in their 30s.

With most retirement ages averaging in the mid-60s or older, getting into finance at 30 can significantly impact how comfortable you'll be in your post-retirement life.

Don't worry, this step is more about beginning a long-term plan than becoming wealthy in your 30s.

How Ethos works

Our mission is to protect the next million families and we intend to do just that with an honest and transparent process. Take a look at how it works.

How much money should a 30-year-old have?

There's no magic number for the optimal amount of savings by 30, but the more you've saved by this point, the better positioned you are for the next chapter of your life.

No matter how much you've saved or haven't saved, the critical part is making a financial plan now and following it moving forward.

With a solid financial strategy and the dedication to stick to it, it's never too late to start investing in your future.

Financial planning in your 30s

Pay off debt
Paying off debt quickly but sustainably is an essential part of financial health. The goal is to pay down your debt as soon as possible without taking more money from other areas than you can afford. Meeting your minimum monthly payments is essential, but anything extra you can add will end up saving you money in the long term. Clearing debt could be one of the best financial decisions in your 30s.
Make and stick with a budget
A reasonable budget is one of the most recommended ways to manage your regular income. Consider the 50/30/20 rule for budgeting. This strategy allocates 50% of your income to necessities, 30% to disposable income, and 20% to savings and debt payment. Whatever your budget, it's critical to take care of these categories. Being honest with your finances in your 30s will form the foundation for other wealth-building strategies.
Build an emergency fund (and only use it for emergencies)
If you haven't already started an emergency savings fund, it's important to begin one soon. This fund is simply a stash of money that you save and keep accessible to you and your family in case of an emergency. These could be accidents, injuries, unexpected home costs, or anything else that meets your family's definition of an emergency. The core idea is that it's reserved for unforeseen expenses that you don't want to put on credit.
Increase your credit rating
Working towards a higher credit rating can smooth financial efforts in the future and increase your access to low-interest-rate credit. A high credit rating can also save you money on numerous types of insurance, depending on the state and insurer.
Start investing
Maintaining an investment portfolio is essential to financial planning, regardless of age. Investing in your 30s is an excellent time to start. Don't worry if you're new to it; there are many guides and tips out there on investing for beginners. Following these guides is one of the best ways to build wealth in your 30s.
Life insurance
Life insurance can form an integral part of your financial security, especially if you're at the stage in your life when you're starting a family or raising young children. While it's unpleasant to think about, these policies can ensure their financial well-being if you were to pass away. Life insurance can also be used in debt management. Check out our guide for life insurance 101 to gain a deeper understanding of how these policies can help your financial security.

Life insurance in your 30s

If you don't have a life insurance policy in place already, your early 30s may be a wise time to begin considering one. Family planning is often underway at this age, perhaps with at least one child already present. Retirement planning and strategizing should also start at this point. Getting life insurance in your 30s can provide much-needed financial security to aid family and retirement goals.

Whether you're designating the payout for your children's education, as income replacement, or even as an inheritance, these policies can provide a robust addition to your family's financial strategies.

Life insurance with Ethos

Ethos offers term and whole life insurance policies. However, if you're in your 30s, it's the term policies that'll interest you.

Not only do term policies offer higher coverage at a lower rate, but they're the only type of policy Ethos offers to applicants below 66 years of age.

No medical exam is necessary for getting coverage – simply answer a health questionnaire. You can calculate coverage today with our online life insurance calculator to see what rates and plans could work for you.

The information and content provided herein is for informational purposes only, and it is not to be considered legal, tax, investment, or financial advice, recommendation, or endorsement. You should consult with an attorney or other professional to determine what may be best for your individual needs.