5 Smart Financial Moves to Make in Your 30s

Your 30s are often a time of significant milestones, from career advancements to starting a family or buying your first home. It’s also the perfect decade to build a strong financial foundation for the future.

Here are five smart financial moves to build that future:

Build an Emergency Fund

Life is unpredictable, and having an emergency fund can give you peace of mind during tough times.

Aim to save at least three to six months’ worth of living expenses. Keep this money in a high-interest savings account.

If you don’t have much annual leave and/or are under-insured consider leaning towards six months of expenses.

Having an emergency fund ensures you don’t need to rely on credit cards or personal loans when unexpected expenses arise.

Prioritise Paying Off Debt

Whether it’s HELP (HECS) loans, credit card debt, or a car loan, tackling debt in your 30s can free up more money for saving and investing.

Focus on high-interest debt first, like credit cards, while making minimum payments on other debts.

Consider consolidating debts or refinancing to lower your interest rates and reduce your monthly repayments.

Start Investing for the Long Term

Your 30s are the ideal time to start growing your wealth through investments.

Explore options like:

• Superannuation: Consider making additional contributions to boost your retirement savings.
• Exchange-Traded Funds (ETFs): These offer a diversified and low-cost way to invest in the stock market.
• Property: If you’re ready, buying an investment property can be a solid way to build wealth.

The key is to start early and let the power of compounding work in your favour.

Note that just because an investment is good for someone else, that doesn’t meant that it is right for you.

Working with a financial advisor to build your investment strategy and philosophy is essential to balance your risk and returns.

Review Your Insurance Coverage

As your responsibilities (and debts) grow, so does the need to protect your family and assets.

Consider these types of insurance:

• Life Insurance: To provide for your family if you pass away.
• Income Protection Insurance: To replace your income if you’re unable to work due to illness or injury.
• Trauma Insurance: To provide a lump sum payment if you’re diagnosed with a serious illness, such as cancer or a heart attack.
• Total Permanent Disability (TPD) Insurance: To help cover costs if you’re permanently unable to work due to injury or illness.
• Private Health Insurance: To cover medical costs and avoid the Medicare Levy Surcharge.

A financial adviser can help you determine the right level of coverage for your needs.

Set Clear Financial Goals

It’s easier to stay on track financially when you have clear goals to work towards.

Whether it’s saving for a home deposit, funding your child’s education, or retiring early, define your goals and create a plan to achieve them.

Break down each goal into actionable steps, like setting up automatic transfers to a savings or investment account.

Why Your 30s Matter

Your 30s are a critical time for setting up a secure financial future. Decisions made now will have a long-lasting impact, so it’s important to be proactive and intentional about your finances.

Ready to Make Your 30s Count?

A financial adviser can guide you through these steps and help you build a personalised plan for success.

Get in touch with us today to start building your financial future with confidence!