There are hundreds, if not thousands, of stories on social media about people in their 20s becoming financially successful. Admittedly, this can be a bit intimidating, especially if you don’t have everything figured out financially. It might make you feel that you started too late and that you’re never going to have what those people do. But you’re not too late. In fact? You’re right on time–to read this article on how to build wealth in your 30s.
When you’re starting from nothing, the only way to go is up! You don’t need a stacked bank account to build wealth in your 30s. You only need to follow these steps:
You might think you’re starting from nothing, but that’s not necessarily true. What financial assets do you currently have? Assets could include investments in your name and anything valuable, like your car. This also includes all the money you have in your bank account. Ideally, you should have about 12 months’ worth of salary by age 30.
Additionally, you also need to figure out your liabilities. Liabilities in finance are anything that is currently owed to someone else. These include any debts that have yet to be fully paid off.
Get the total value of your assets minus your liabilities, and you get your net worth! Knowing this lets you understand where you are currently in your financial journey.
If you don’t know how to build wealth in your 30s, this is the best place to start. It costs absolutely nothing to set a financial goal for yourself. Having a financial goal will help motivate you to save and earn more money.
Need some help deciding on a financial goal? Check out my article on some short, medium, and long-term goals!
Once you have a financial goal, you need to set up a monthly budget so you can achieve it. Make sure every single penny you earn is allocated to a specific budget category. This ensures that all the money you earn is working for you. Check out my article on budget categories if you need some help building your budget.
Is your budget not big enough for you? Then it’s time to…
Have you been working the same job for the past few years? Many people in their 30s are. Maybe it’s time to ask for a raise or look for a better-paying job elsewhere. This might be uncomfortable, but it’s one of the only ways to increase your income. Another way is to…
If you have some free time on your hands, a side-hustle is a great way to earn some extra cash. You don’t need to go all-out and start a business, just find something to do that people will pay for. For example, if you’re good at math or playing guitar, you can earn some money by becoming a tutor.
Arguably the most important tip for building wealth in your 30s is building an emergency fund. This is a dedicated savings fund equivalent to a few months’ expenses. This will ensure that you can afford to shell out some funds in the event of an emergency. You need to build one ASAP if you don’t already have one. This is especially true if you don’t have insurance or healthcare benefits.
The earlier you invest, the better. This is because your funds will grow over time due to compounding interest. If you haven’t already started investing, you should begin as soon as possible–after you’ve built your emergency fund.
It is entirely possible to become a millionaire if you start at 30. To become one, you just have to have the right financial habits. Here are the habits you should have if you want to know how to build wealth in your 30s:
How quickly do you want to reach millionaire status? If you want to be a millionaire and still be young enough to enjoy it, you have to be aggressive. This means saving and investing a significantly larger portion of your income. This means allocating 30, 40, or 50 percent (or more) of your income purely to savings and investments.
You can buy perfectly usable items second-hand on places like eBay and Facebook Marketplace. This can be a great way to get brand-name items like phones and clothes at a fraction of the retail price!
You should definitely check out my article if you’re looking for a cheap way to get new clothes.
Everyone needs a hobby, so why not try ones that don’t cost much? There are plenty of hobbies you can do that don’t cost a fortune to get into. Here are three that are worth getting into:
Running isn’t just a simple way to stay fit and healthy, but also an affordable one. All you need is the proper running attire, and you’re good to go! Who knows? You might even end up being a marathon runner!
Technically, public libraries aren’t free because you pay for them with your taxes–which is why you should use them. Libraries have hundreds, if not thousands, of books you can read and learn from. If you want to spend an afternoon somewhere peaceful and quiet, head to your local library!
What better way to spend your free time than to give something back to the world? Volunteering in your community can be a fulfilling hobby. It’s a great way to connect with other people and do some good in the world.
It’s very easy to get peer-pressured into spending when surrounded by spenders. That’s why so many people spend their money when they’re young. By surrounding yourself with people with similar views, you’ll be less tempted to spend your hard-earned money.
There are resources everywhere online that can help you learn how to build wealth in your 30s. If you want the best tips, you should sign up for the money squad! As a member, you’ll have interesting money tips and insider information sent weekly! The best part? It’s completely free and takes just seconds to sign up–so join the money squad today!