Creating a Financial Plan
Your 30s can be a critical crossroads. Just when your career takes off and your paycheck increases, you may be facing some major financial challenges — like buying a home or starting a family.
Here are three ways to focus on your priorities:
1. Build a foundation for homeownership.
Today’s typical first-time homebuyer is 32 years old with a household income of $75,000.* If you plan to purchase a home, start with these principles:
2. Review your insurance.
If you’re among the growing number of people becoming parents in their 30s, you’ll want to provide some financial protection for your family. Research the benefits offered by your employer. If you feel you need more, consider purchasing individual policies to fill the gap.
3. Expand your investing.
By now, you should be making a solid effort to save for retirement, probably by contributing to a 401(k), IRA or both. A good rule of thumb is to aim to have saved double your income by age 35. As your income rises, try to earmark a portion of that increase for savings and investing, and look beyond retirement accounts.
In your 30s, you may be ready to focus on financial security for yourself and your family. Making financial choices now that can help provide a comfortable future is a good way to keep your eye on the prize.
*National Association of Realtors, “Quick Real Estate Statistics,” May 11, 2018.
What's next: 3 Smart Money Moves in Your 40s
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