How to Accumulate Wealth in Your 30s
You are ready to enter the workforce after finishing school and post-secondary education. Unfortunately, it is also a time to start incurring big debts like vehicles and homes. Your 20s are for finding the right career and putting down roots so when you hit the next decade, and you are ready to make good money and save and invest it.
Are you approaching your 30s and are ready to make serious financial gains? It may seem daunting, but with the right plan and discipline, you can build a financial fortress to fund your lifestyle and family.
This is how to accumulate wealth in your 30s.
Determine your financial goals
You may have the hardest shot, but if there is no net, you aren’t going to score. You need to figure out what you want your money to do for you because that dictates how you use it.
Put together a list of short-term, medium-term and long-term goals. These can be for purchases, retirement, charity, or anything else that requires money. Once you have that set, you can establish the steps.
Family office
Earning a large income and building wealth are not the same thing. While you may have lots of money coming in, it must still be managed effectively to become wealthy because if you spend all you make, your salary doesn’t matter.
For those high-net-worth individuals looking to secure their financial future, a family office is a smart move. This dedicated investment firm works with individuals and families to manage their income and investments with a wide selection of services beyond standard financial advice.
They are there to secure the person’s financial future and preserve your growing fortune. A family office also takes care of other aspects of your life, including:
- Travel planning
- Educating the next generation on family finances
- Charitable giving
- Legacy planning
They are professionals who know the needs of high-net-worth individuals, and because you are in your 30s, there is lots of time to build your wealth and create a secure financial future for your children.
Reset your budget
When we move away from our parent’s homes, it can be free for all about spending. This is when you get to decide what to buy, and often, you make mistakes along the way. In your 30s, it’s time to be more disciplined and track where your money is going.
You are going to have more fixed costs like:
- Car payment
- Mortgage
- Child care
- Utilities
- Groceries
All of this adds up, and if you spend beyond your means, you will incur debt instead of building wealth.
Constructing a realistic budget based on your earnings and writing down your fixed costs is better. In that order, whatever is left over should be split up for savings, investing and fun money. This is your playbook and road map to success, so follow it and make adjustments as needed.
Invest
Now you know what you’ve got to work with as far as monthly income. and the only way to increase your net worth is to make that money work for you. There are many ways to invest your hard-earned cash, but you need to look for the best return on your investments, both short and long-term.
Real estate is among the best as it is inflation-protected and typically increases in value over time. Depending on the property, it can also provide income. When you have a tangible asset like property, you can also leverage it to purchase more.
Stocks are also a good investment, provided you know what you are doing. It is best to use the services of a financial advisor who knows the market and can guide you toward the best investments available.
In your 30s, you can take more risks because you have time to recover if something goes sideways. Make sure to have various investments to weather the storms that hit.
Get rid of debt
Debt is like an anchor around your neck, pulling you below the water line. It usually is at a high interest rate, and while you are making gains with your investments, the debt still lurks over you.
Attack your debt, one at a time and pay them out fully. This way, you eliminate a payment that can go directly towards the next bill, speeding up its recovery. Once you have paid off all consumer debt, direct that money into savings and investments so you pay yourself instead of a credit card company.
This is how to accumulate wealth in your 30s. You are still young and have lots of earning potential, so keep your foot on the gas and surround yourself with the right people to help you attain a fortune to serve you, your family and beyond.
