Financial Goals for Your 30s | Milestone Financial Planning | Ent Credit Union (2024)

• Copied link to Clipboard!

Adding money to your savings account will give you something to fall back on in hard times. Work on saving the equivalent of at least 3-6 months of expenses. After you've met that, you can work towards saving the equivalent of a year's worth of earnings in case things take a turn for the worst. Find out how much you make per year on average to get a rough estimate of how much you will need. You can use this money to make ends meet if you lose your job or can no longer earn a living due to illness or injury. This ensures that you can continue taking care of your loved ones even if you lose your primary source of income. You can live off the savings for several months while you look for another job. If you have a mortgage or outstanding debt, you won’t have to worry about falling behind on your monthly payments.

You might also decide to change careers in your 30s or start your own business. This nest egg will give you time to set up a new career while you develop your skills, look for new opportunities, or go back to school to get another degree. You may have to accept a lower salary or work part-time while you work toward your new career goals, but you can use this money to maintain your current lifestyle.

Not all debt is bad, but carrying around excess debt could hurt your finances in the long term. You might need to take on new debt in the years to come if you decide to buy a house or car, and excess debt may limit your borrowing options.

Do your best to get out of the debt that you’ve had, including student loans and credit card debt. Focus on paying off the debt with the highest interest rate by making the minimum monthly payment on all your other loans until the loan with the highest rate is paid off. Do the same with the loan with the next highest rate until you are out of debt. Avoid taking on new debt unless it will benefit you financially. Credit cards tend to be the hardest to pay off due to high interest rates, so avoid adding to your credit card debt unless absolutely necessary.

If you have a low interest rate on your student loans, mortgage or car payment, you don’t have to pay it off right away. Continue making the required monthly payment and consider refinancing the loan if you are able to get a lower interest rate and pay minimal to low fees.

Consider increasing your insurance coverage if you haven’t done so already. Invest in life insurance to help your loved ones if you pass away. Find the best health coverage for you and your family to avoid getting hit with large medical bills if someone gets sick. If you have acquired property, use insurance to protect your assets. Increase the size of your home insurance benefit if you have acquired valuables.

As a younger adult, you may have the option to lock in a lower monthly premium. The longer you wait to sign up for insurance, the more expensive it may be. Talk to a financial advisor or an insurance agent to see if you need additional protection. You don’t want to work hard to make a life for yourself only to have it thrown off course in an accident.

Now is the time to start saving for retirement if you haven’t already started. Do your best to make the full contribution to your employer-sponsored 401(k) or other retirement plan. You can also open an individual retirement account (IRA) to further increase your savings. If you are self-employed or work freelance, you can use an IRA or self-employed retirement account to start saving.

Fill in retirement plan details by thinking about how much you need to save to reach your goal. Talk to a financial advisor, your partner, and/or family to figure out how long you plan to continue working and how much money you will need to live comfortably in your golden years.

All the money you invest now will continue to mature in value over the next 30-plus years. Use this time to grow your savings while minimizing your income taxes.

You will likely need to apply for a mortgage or car loan in the years to come. Even if you already own property or a vehicle, you may consider upgrading in the future.

A good credit score will help you save money on interest when you need to take on new debt. Do your best to improve your score by paying your bills on time and utilizing no more than 30% of your available credit. Get in the habit of checking your score regularly to see if it is moving in the right direction. Identity theft is becoming more common, so be on the lookout for errors or instances of fraud that could damage your score.

This is sure to be one of the most productive times of your life. You should be on your way to a fulfilling career and a happy, comfortable life, even if you haven’t figured everything out yet. Use these financial milestones to make the most of the money you earn so you can reach your goals later on in life. Life is anything but predictable. You never know when you might lose a job, fall in love, have a baby or decide to buy a home. Get your money in order to create new opportunities for yourself.