Sep 6, 2024
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Your 30s are pivotal to setting the stage for long-term financial health. Investing and savings habits started in your 20s have (hopefully) become ingrained, and you’re well positioned to achieve critical milestones ahead of your prime earning years, and your eventual retirement.
Unfortunately, too many Americans aren’t saving enough to set themselves up for long-term prosperity. As of June, personal savings rates were only 3.4%, according to the Bureau of Economic Analysis.
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If you’re in your 30s, what steps should you take to ensure you’re financially prepared for your golden years? And if you’re older, how can you catch up?
The good news is that it’s almost never too late. There’s still time to position your portfolio for success, whether you’re 30 or 50. Let’s explore.
Build an emergency fund
An emergency fund is a financial safety net used to cover unexpected expenses, such as medical emergencies, car repairs, or job loss.
According to a survey commissioned by LendingTree, 58% of Americans don’t have an emergency fund, 49% wouldn’t have the ability to cover a $1,000 emergency from cash resources, and 40% would have to resort to covering an unexpected expense with their credit card.
By saving three to six months of living expenses, you can avoid debt when unforeseen circumstances arise. Start by setting a realistic savings goal, then automate your savings by setting up a direct deposit from your paycheck into a high-yield savings account. Aim to save at least 10-15% of your income until you reach your target.
You can explore our list of the Best High-Yield Savings Accounts of 2024 to find the account that best suits your savings needs.
One option to explore for better interest on both your savings and checking accounts is SoFi.
SoFi offers 4.60% APY on savings balances – which is up to 10x the national average — and 0.50% APY on checking balances.
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With SoFi, you can also enjoy no-fee overdraft protection, early paycheck deposits and access to over 55,000 ATMs within the Allpoint network.
Speaking of deposits, sign up now and you can get a bonus up to $300 for setting up direct deposit.
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Start or maximize retirement contributions
An April 2024 AARP survey found that one in five Americans 50 and over have nothing saved for retirement. Don’t be caught shortflat-footed: The earlier you start saving for retirement, the more compound interest kicks in, allowing your investments to grow exponentially.
Combat that trend by taking advantage of your employer’s 401(k) match and contributing at least enough to get the full match. Then, work toward contributing to retirement accounts, and consider increasing contributions whenever you receive a raise or bonus.
If you’re looking for something outside of what’s offered by your employer, gold IRAs can be a worthy option for a secure retirement.
A gold IRA is different from a traditional IRA as it combines the tax advantages of a traditional IRA with the inflation-hedging properties of investing directly in gold. This allows you to diversify your portfolio while also safeguarding your retirement savings against economic volatility.
American Hartford Gold is one of the premier precious metal IRA with an A+ rating from the Better Business Bureau. With their assistance, you can open a gold IRA and begin to secure your financial future.
If you’re unsure whether this is the right investment opportunity, you can learn more by requesting their complimentary 2024 guide on gold and silver.
Consider real estate and your portfolio
Spreading your risk across different investment types — stocks, mutual funds, or real estate — can improve your long-term performance and protect against dips in any single market. Regularly review your portfolio to maintain your desired asset allocation, and consider low-cost index mutual funds or exchange-traded funds (ETFs) to diversify across sectors. A financial advisor can help you develop a personalized investment strategy.
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Take real estate as an example. Homeownership is a wealth-builder for many. The National Association of Realtors reported in June the median home price in 2024 was $419,300, with home equity representing a substantial portion of net worth for many Americans.
When buying a home, save for a down payment of at least 20% to avoid private mortgage insurance (PMI) and secure a better mortgage rate. Improve your credit score to qualify for lower interest rates, and consider first-time homebuyer programs and grants that can assist with down payment and closing costs.
If you don’t have access to the funds for a downpayment, you can still take advantage of the hot real estate market with an investing platform like Arrived.
Backed by world-class investors like Jeff Bezos, [Arrived] allows you to invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management or homeownership. To get started, simply browse a curated selection of homes , each vetted for their appreciation and income potential.
Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with just $100 .
If you’re looking to make a larger investment, you aren’t just limited to residential real estate.
You can further diversify your portfolio with First National Realty Partners (FNRP).
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FNRP gives accredited investors access to necessity-based real estate — such as grocery stores or health-care facilities. That means the properties are essential to the local community, often leased by national brands like Walmart or Kroger, and likely to remain desirable.
Once a deal is closed, FNRP’s team of experts manages the property, so you can focus on finding your next deal.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Don’t overlook high-interest debt
The Federal Reserve reports that as of May 2024, the average credit card interest rate was around 21.5%, making it one of the most expensive types of debt. High-interest debt can accumulate quickly, making it harder to pay off your principal and jeopardizing your credit score.
If you’re struggling with debt, consider consolidating your debt with a personal loan from Credible.
Credible makes it easy to streamline your debt repayment at an affordable rate with an online marketplace of vetted lenders that provides personalized debt consolidation loan offers based on your needs. This can empower you to pay off your debt more efficiently at a fixed rate without juggling multiple bills.
If you have multiple credit accounts, focus on paying off your highest-interest debts first. This is known as the avalanche method, which involves making minimum payments on all debts except the one with the highest interest rate, which you pay off aggressively. Once that debt is settled, shift your efforts to the one with the next highest interest rate.
Another option is the snowball method, which focuses on paying off the smallest debts first. The idea is that by getting those early wins, you’ll gain the motivation you need to keep going.
Catch up on missed milestones
Are your 30s in the rearview mirror? It’s not too late to catch up.
Start by creating a detailed budget to identify areas where you can cut back and reallocate funds toward savings and debt repayment. A second job or side hustle can provide some extra income to help put you back on track. Also, consider making catch-up contributions in retirement accounts. Individuals over 50 can contribute an additional $7,500 to their 401(k) and an additional $1,000 to their IRA in 2024.
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