How to plan your finances in your 30s

Published on: October 8th, 2021

There is often a misconception that financial planning is most useful for those nearing retirement or people who have assets, but the reality couldn’t be more different.  In fact, studies show that those who start planning for the future earlier in life achieve better outcomes in both the short and long term.

In your 30s, you are likely starting to think more about the future and what you want out of life – a house in your desired neighbourhood, starting a family, etc. Your goals and values may have shifted in the last few years, as the focus moves away from yourself and onto family or building the lifestyle you want long term.  Here are some areas you should be thinking about.

Living for today…

Values: Responding to changing life priorities – As your life responsibilities and priorities change, so will your values. This might come in the form of a marriage or serious relationship, children and/or a mortgage, and for many, the 30s is a time of new financial and life goals.

Career: Working your way up the ladder– In your 30s, you are likely looking to move up the career ladder and increase your salary to align with your changing financial needs.  Keeping across the skills you need for the next level job and investing the time to build them is a good way to keep your career on track.

Financial goal: Getting on the property ladder – Many Australians in their 30s are making their first home purchase, and this is a life milestone and a financial one, as most of us will take on the largest single debt we will ever have at this point.  You can read our guide to getting on the property ladder here.

Philanthropy: Giving back to the community – As your responsibilities increase, the time you have to commit to social causes may be reduced, and as a result, your philanthropic focus might shift from giving time to giving small amounts to causes that are close to your heart.

Doing what you love – With so much of your life shifting, it’s also important that you are able to set aside some resources to continue a hobby, follow a passion or take a holiday – life should be fun too.  If you have the financial resources to make it work, outsourcing in those areas you don’t enjoy and/or don’t make you happy, makes a lot of sense. At Apt, we call it buying happier time.

We do this across many things in our lives, from cleaning to childcare, and for good reason – it can save significant time, tends to lead to more quality time with our loved ones and in many cases, makes financial sense too.  It’s something more and more Australians are considering when it comes to their finances too.

The right financial planner will support your family’s long and short-term goals and apply expert knowledge and experience, so you can continue protecting and growing your assets, while spending more time doing what you love.

…planning for tomorrow

Financial goal: Building your emergency funds – As your responsibilities begin to increase, it’s important that you are able to quickly access at least 6 months’ worth of your basic living expenses. If you don’t have access to this cash, it’s important to think about how you can build it into your savings plan.

Financial goal: Saving to support the future – Your saving goals may be less about experience and enjoyment, and more about setting up the future you want for yourself and your family. Goals such as saving for your children’s future and education, preparing for career breaks and planning to reduce your mortgage.

Investing: Getting serious – Your investments will play an important role in securing future income streams and now is the time to develop and apply a well-thought-out investment strategy.

Protecting your future:  Personal insurances – From your income to life insurance, it’s time to get serious about protecting your future and making sure you have the right insurances in place that will continue to support you, even if you take a career break.

Read Next:  How to plan your finances in your 40s

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.