If you are in your 30s life is now beginning to take shape. If you started investing in the 20s well and good; at least you have something to build. Truth be told though, most people zoom through their 20s in a blur trying to figure out their lives. Most likely you are wondering how to build wealth in your 30’s and you should not worry because you are not alone.
After some trial and error you are now making money but remember, the goal should be wealth creation. This is the only way to gain financial freedom in your life and guarantee you have a solid foundation for the future.
It doesn’t matter whether you are still grappling with student loans and credit card debt. You must take time to rethink your finances. Below are key highlights that should guide your financial life in the 30s. Using these ideas, you will be able to look back satisfactorily at the 30s as the phase in your life when you made the right moves.
Start with Major Goals
You are now mapping out a long financial journey which will take several years and for you to get this right, you must start with a plan. This means sitting down alone or with your spouse and setting goals which you need to achieve. Among the crucial goals that can guide you are:
1. Create an Emergency Fund
Things don’t always work out the way you would like. Even the best set plans can go awry and this is a good reason to build an emergency fund. This in some quarter is also called a safety net fund and should cover your expenses for 3 to 6 months if anything happens. If you had already started an emergency fund in your 20s it is time to kick your emergency fund savings into high gear.
2. Start A Retirement Plan
It’s never too late to save for your retirement and this is why you should set up a retirement fund. You might feel all lively today but remember there will be a time when you will not have the same energy. If you already have a retirement fund, then increase your savings by around 15% preferably in in a Roth 401(k).
3. Plan For Major Purchases
At this point in life, you need a goal-driven plan for major purchases including weddings, a family trip or a home. Buying a home should be at the top of your mind because this is one of the most important investments you can make in life.
4. Advance Your Career
Now that you have developed a marketable skill in your 20s, it is time to up the game and grow your net worth automatically by going back to school. Do your research about ways to advance your career as this will increase your value in the job market. This is a big way to build your wealth.
5. Adjust your Insurance
As a rule of thumb when goring wealth, it is important to keep adjusting your insurance. As your assets continue growing, make sure you have the right cover to protect them. Think about renters insurance, home insurance, life insurance and other types of policies that will protect your family and your assets.
Of course there are many other considerations including paying off non-mortgage debt, diversifying and rebalancing investments, monitoring credit among others.
These are just a few of the tips you get from the life changing eBook entitled How to Build Wealth From Nothing or the wealth Bible by Carael Knight The Internet CEO. This revolutionary book covers topics such as understanding wealth, financial literacy and wealth, the difference between being wealthy verses being rich, investing verses saving, real estate investing and so much more. It is a must read for anyone in their 30s and indeed everyone who wants to build wealth.