Financial Milestones – For Those in Their 30s

By Mitchell J. Smilowitz, CPA

In your 30s, you have the advantage of time to build long-term financial security, but it is critical to use this decade effectively. Most people in their 30s are at the beginning of their career and probably have competing priorities for limited financial resources. This article identifies important financial decisions and actions you should consider taking during your 30s. Request a Complimentary Financial Consultation from the JRB to discuss how you can manage your current financial goals with the long-term in mind.

  • Establish a budget: Create a budget to track your income and expenses. This allows you to gain control over your finances, identify areas where you can save and prioritize your spending.
  • Pay off high-interest debt: Prioritize paying off high-interest debt such as credit card debt or personal loans. Allocate extra funds towards these debts to reduce interest payments and improve your credit score and financial standing.
  • Save for retirement: Many people in their 30s have not yet shouldered family financial responsibilities such as children and home ownership. This makes it a great time to establish a solid pattern of retirement savings. Participation in a tax-favored savings plan such as The JRB 403(b)(9) Retirement Plan also allows you to reduce the taxes you pay. Aim to save at least 10-15% of your income for retirement. Take advantage of any employer match if offered.
  • Invest for the long term: Begin investing in a diversified portfolio that aligns with your risk tolerance and financial goals. The JRB offers a wide range of investment options, including Target Date Funds, a Stable Value Interest Fund and Israel Bonds, that offer long-term growth potential. Time is on your side, so begin investing now to take maximum advantage of compounding.
  • Automate your savings and investments: Set up automatic contributions to your retirement accounts and other savings or investment vehicles. Ask your employer about setting up an automatic payroll contribution to your JRB retirement account. This habit will ensure consistency and discipline in saving and investing, making it easier to reach your financial goals.
  • Build an emergency fund: Save for emergencies by setting aside three- to six-months worth of living expenses in a separate savings account. This fund will provide a safety net in case of unexpected events like job loss or medical expenses.
  • Review and optimize insurance coverage: Assess your insurance needs and ensure you have adequate coverage. This includes health insurance, life insurance (if you have dependents), disability insurance and property insurance. The JRB Complimentary Insurance Program offers basic term-life insurance, disability insurance and pension continuation insurance. You can discuss the adequacy of your insurance coverage with the JRB during your Complimentary Financial Consultation.
  • Plan for major life events: If you're considering major life events such as marriage, buying a home or starting a family, carefully plan and save for these milestones. Factor in associated costs, such as down payments, closing costs and childcare expenses.
  • Focus on career development: Invest in your professional development to enhance your skills and increase your earning potential. Consider pursuing additional education, certifications or training programs that can open doors for promotions or higher-paying opportunities.
  • Review and update your financial goals: Take time to assess your financial goals and make necessary adjustments. Whether it's saving for a down payment, starting a family or traveling, align your actions with your goals to stay motivated and focused.

These suggestions are general guidelines; it's crucial to tailor them to your specific circumstances. Request a Complimentary Financial Consultation with the JRB or call 888-JRB-FREE (572-3733) to evaluate your financial situation and adjust your strategies as needed. We will provide personalized guidance based on your goals and financial situation.

August 2023