6 Smart Financial Moves to Make in Your 30s

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When you are in your 30s, you are on the most crucial financial crossroad of your life. At this juncture, you may be in the middle of various transitions – advancing your career, getting married, buying a home, starting your business, or growing your family. How you handle money at this crucial time will lay out the blueprint for how stable your financial life would be in the future. 

These 6 tips will give you a different perspective on how to manage money in your 30s and beyond. 

1. Avoid lifestyle inflation

As you approach your 30s, it is safe to assume that you are probably better off financially than you were in your 20s. Now that you are earning better, it’s easy to be tempted to upgrade your lifestyle, which may include investing in a new house or buying a new car. In your 30s, you need to be careful not to accumulate liabilities that you cannot pay for. 

2. Set financial goals

Ideally, your 20s is the perfect time to set financial goals. But, if you haven’t done it, then the 30s is better late than never. Set short-term and long-term goals. While deciding on your short-term goals like vacations, buying a car, etc. consider your budget and decide how much you need to save and how much you can afford to pay for a loan. While setting long-term goals, such as buying a home or planning for retirement, have a disciplined saving and investing strategy. Don’t forget to rank your short-term and long-term financial goals as per your priority.

3. Have an emergency fund

In your 20s, your financial emergencies and mishaps might have been covered by your parents. But, the 30s is the time when you begin to stop taking their help. Build your emergency fund to create your own safety net and resist the urge to dip into this fund for everyday use. A good goal for an emergency fund would be six months of living expenses. 

4. Revisit your budget

You may have created a budget in your 20s. But now that you are in your 30s, your income, your expenses, your wants, and your needs may have changed. So, it’s vital that you revisit your budget and make adjustments according to your life changes. 

You may have to cut back on some expenses to reallocate your funds elsewhere (short-term or long-term goals). If you have got a salary hike, you may consider putting it aside in the emergency fund.

5. Pay off debts

Paying off your debt offers you financial relief; it also boosts your credit score and gives you the financial freedom you need. By completely paying off your debt in your 30s, you’ll enter your 40s with a strong focus on building your retirement fund and not paying your bills from the past. Know more about how you can plan to repay your debt here

6. Consider the cost of marrying and having kids

If you are considering marrying or adding to your family in your 30s, understand that the associated expenses can make your budget go topsy-turvy, unless you have planned for it. If you are married and cannot afford to bring another life in this world, be a responsible adult, and plan for the right time to add to your family.


Shiv Nanda is a financial analyst who works with MoneyTap. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.

Website: moneytap.com


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