A Guide to Investing in Your 30s
Being in your thirties is a wonderful but complicated decade of your life. With all the goals you want to attain such as saving for a house downpayment or starting a family while balancing your other financial responsibilities, it may feel like it’s impossible to invest.
Clark County Credit Union is here to guide you on investing in your thirties.
Your 401K should be the biggest investment priority
As most older adults would advise, the day that you become eligible to contribute on a 401(k) should be your first investment option. Investing in your retirement as early as possible will give you a better chance at attaining your retirement goals.
This 2023, the contribution limit for employees who participate in a 401(k) has increased to $22,500. That’s a big amount of money that can go towards your retirement.
CCCU also offers a wide range of retirement resources and tools that can help you make the wisest decision for your retirement.
Paying off your debt is saving
Maybe you made some credit card mistakes in your early twenties or even took out a personal loan because you were on a tight budget and that’s okay. The most important thing you should do now is to work on paying it off.
Snowball and avalanche methods are some of the common debt strategies that can help you pay off the debt. Getting rid of your debt will free up more money to invest and save for your long-term goals.
Build your emergency fund
This era of your life will have many plot twists and detours and it’s crucial that you are covered when they happen. The last thing you want is to take on another debt or take money out of your retirement account.
Financial experts recommend that you have enough emergency funds to cover three to six months’ worth of your living expenses. Once you have saved money for an emergency fund, you will have peace of mind, knowing that you have funds for unplanned expenses and are still able to save on your other goals.
Plan for major life events
Big life decisions can come in your thirties. This could be planning for a house, marriage, or a family. If you still have extra money after you contribute to your retirement, debt payment, and emergency fund, then you should put it towards your other goals. Even small amounts of money can be carefully balanced to help you work towards a little of everything at once.
Good financial health is an investment
Investing your money in a retirement account, debt payment, and emergency funds can go a long way. Knowing you can save for your retirement and juggle other financial responsibilities is something to be proud of in your thirties!
CCCU has great money saving-products that can help you invest for your future. Call us at 702-228-2228 or visit our website CCCULV.ORG for more information.