You’re busy climbing the corporate ladder, exploring ways to expand your own startup business, getting married, starting a family or thinking whether you need to go back to school and pursue another career path.
Saving money might seem difficult, but it’s not impossible. If you take the right steps, you can knock out debt, grow your wealth and look forward to a bright future.
Here are a few steps in how to start saving money in your 30s.
1. Fix your budget
If you haven’t adjusted your budget since college, it probably needs a makeover. Chances are a lot has changed in your life since then. You have more responsibilities and bigger expenses, like a monthly bond payment and child – care expenses.
For most people, it probably means less eating out, fewer concert tickets and more on things like housing and insurance. It will be different for everyone, but you have to define your top priorities and remove expenditures that just aren’t as important as they used to be.
2. Move past basic budgeting and set big goals
If you’re a newlywed, you have joint financial decisions and goals to set. If you’re a parent, you have to set goals with your children in mind.
Set savings goals that reflect your long-term plans and priorities. Figure out what needs to be done to save for a bigger home or a big move to a city with a better quality of life.
Write down what you intend to do specifically to turn your dreams into a reality, whether that’s creating a stricter budget or finally paying off your student loans so you can save more than 5 or 10 percent of every paycheck.
3. Grow your emergency fund
Months after buying a new home, you could find a hole in your roof. And a year after you tie the knot, your spouse could come down with a serious illness.
Being financially prepared is key. Aim to have an adequate savings cushion that will allow you to cover your daily livings expenses for at least six months. In the best-case scenario, this is something you establish before you take on a mortgage or purchase a new car.
4. Shop smart
If you have kids, buying what you need for your household in bulk can be helpful. Consider comparison shopping in advance so that you’re visiting the store with the best deals. Time the purchase of certain items so that you’re purchasing them when they’re most likely to go on sale.
In addition, you can chop up your own fruits and veggies instead of buying the pricier pre-cut varieties, check out thrift stores and consignment shops instead of hitting the mall, opt for the cheaper, off-brand items at the grocery store or limiting how much money you have at your disposal when you go shopping.
5. Open an investment account
There’s more than one way to invest. A good way to easily get started is to invest in your future by enrolling in a retirement plan.
If you’re interested in investing in other kinds of vehicles, keep in mind that there’s no one-size-fits-all approach. Your investment options should depend on the kind of risk you would be most comfortable taking on.
