build wealth in 30s

11 Ways to Build Wealth In Your 30s

The 30s can be a deceptively dynamic time. Though you may not be as carefree as you once were, you’re now faced with a whole new world of responsibilities and life changes.

You’re also at that stage in life when things get a little bit more ‘real’. Perhaps you’re thinking of buying a house and starting a family, maybe you see a life of jet-setting and high-powered business deals in your future, and for some, you’ll always have lounging on the beach with friends in mind.

Whatever your goals, wealth will always make the journey easier and the destination all the sweeter. Coincidentally, your 30s are also the perfect time to gain a wealth-focused mindset. You’re young enough to amass wealth slowly, mature enough to stick to your principles, and you still have time to make mistakes. Furthermore, wealth tends to attract opportunities and open up doors that you can use to full avail – eventually making gaining more wealth.

So, pat yourself on the back for taking an interest in money matters, you’re on the right track. But you might be asking “how do I actually gain wealth?”. Luckily for you, there are a number of guidelines and helpful tips that’ll lead you to success. Let’s dive right into them.

Managing your money

It’s necessary to first do some housekeeping before setting your sights on bigger goals. Here’s just a few things you’re going to need to get straight before even thinking about investing.

Update your budget

It’s easy to lose track of your budget as you move from your 20s into your 30s. If you now have a mortgage, college fund, and car payments to make – your budget should reflect that.

By creating a well-structured budget that reflects your financial reality, you set stable foundations from which more money can be gained.

Wipeout your debt

Any amount of debt is an obstacle on the path to becoming wealthy. Consider completely paying off any credit cards or lingering college debt before making any other decisions about money. The benefits of not having to pay interest and having a good credit score are invaluable assets for any 30-something-year-old.

Think frugally

Pinching pennies isn’t something we associate with the wealthy or well-off. However, it is the way that many of them reached their current financial status. You see, it’s like playing the long-game. Though it may not be as glamourous or thrilling as shooting to the top, you still achieve the same goal.

By making small sacrifices such as not going out for dinner on the weekends or passing up those jimmy choo jeans, you make big monetary gains eventually.

Boost your emergency fund

If you’re going to be cutting back on spending, having to fork out a chunk of the money saved on an unforeseen circumstance is painful. Unfortunately, it’s a reality of life and can happen to anyone. So, be sure to safeguard your wealth by setting aside a percentage of your income for an emergency fund. Even just 2-4% of your monthly income can suffice for a satisfactory emergency fund.

Take advantage of any financial plans your employer might offer

 Most employers offer a 401(k) retirement plan that you can invest part of your income into. By setting aside a small percentage of your income every month, you guarantee yourself wealth for the future. Better yet is that the money you contribute is not taxed!

Hire a financial advisor

 If you find yourself struggling with any of the aforementioned guidelines, it might be time to hire a financial advisor. Not only will a financial advisor point you in the right direction, but they’ll also provide you with a plan that’s tailored for your needs.

A financial advisor can even be a worthwhile investment if you think you’ve got everything sorted out. Sometimes it takes a professional to see any holes in your budget or plans where you could be leaking money from.

 

Going forward with your plan

Once you’ve got your base set and stable, it’s time to put your plan into action!

Take risks

In your 30s, it can seem like every decision you make is a bigger risk than the last. Fortunately, you still have time to fix any missteps or failed ventures. You can use this to your advantage by picking high-risk over low-risk investment or financial decisions. And why would you do that? Because high-risk also means high-gains, and that’s what you want.

“What risks should I be taking?” you may be asking.

Robert Kiyosaki states in his book “Rich Dad Poor Dad” that most workers are working for less than they’re worth. This means that if you’re earning $5,000 a month, your work could be earning your boss $7,000 a month. It’s this profit that keeps you in a job and also keeps the rich getting richer.

Consider taking this point to heard and selling your skills on a business-to-business basis if you can. Cut through the middle man and you’ll see your income soar as every last penny goes in your pocket (minus taxes, of course!)

Increase your income

Many people become stuck in the humdrum routine of their day to day lives that they forget to look for the many opportunities that present themselves. Your 30s are a perfect time to create multiple income streams to fast-track your journey to wealth. Here are just some things you can do to quickly increase your income:

  •       Ask for a raise (high-risk = high-gains!)
  •       Turn a hobby into a freelance opportunity.
  •       Dividend-paying investments e.g. Real Estate Investment Trusts (REIT).
  •       Get into the Airbnb market or rent.

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Don’t fall for the asset trap

In the 30th decade of our lives, we have a habit of settling down and putting huge mortgages under our names. We might even buy a car or two and spend a few months or years leveling off their payments. These are all things to be celebrated, the only problem is that they are not wealth-generating assets. In fact, they’re wealth-decreasing assets.

The majority of millionaires spend their 20s or 30s investing in stock, real estate, bonds, and businesses that will gradually generate wealth, helping them to amass their fortunes.

Invest smartly

Investing cannot be overlooked when it comes to building wealth in your 30s. Though it’s not strictly necessary, it certainly helps, and it’s somewhat faster than other methods.

Stocks & index funds

Many people in their 30s are hesitant to invest in stock figuring that it’s too unreliable and volatile. As long as you diversify your portfolio and keep track of index trends, you’ll enjoy a growth rate.

Bonds

 Bond investments are considerably safer than stock investments. Investing in bonds consists of lending money to businesses and corporations. Your bonds won’t make you as much money as other investments but they should be part of your investment strategy as they are considered “safe”

Think rich

And most importantly, adopt a lifestyle that attracts money into your life. You need to get into the right mindset, routine, and environment to become wealthy. It takes years of dedication, passion, hard work, and perseverance. So, consider confining your goals to paper, and look at it every morning where you can be reminded of why you do what you do and where you’re going.

Becoming wealthy isn’t always straightforward and it isn’t a short journey either. Keep thinking of the benefits that you and your family will reap for years to come all because you made some smart lifestyle changes in your 30s!

 

 

 

 

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