In this article we will talk about ten effective strategies to build wealth in your 30s.
Hitting your 30s is exciting. It’s the time when you shift from being a young adult towards being an adult with more responsibilities. You might already have a successful career or be on your way to it.
Along with all this, other duties may come, such as paying off your debts, saving to buy your own house, childcare, etc.
Building wealth while taking care of these responsibilities might take time and effort.
In the following section, we’ll take you through ten practical and effective ways to build wealth in your 30s.
How to Build Wealth in Your 30s
1. Surround Yourself with People Who Have Your Same Mindset
The unofficial rule to a healthy, happy and wealthy life is to surround yourself with the right people.
That is, people who support your goals, who have a success mindset, and who can help you become a better version of yourself.
If you’re willing to save money and build wealth in your 30s, you need to surround yourself with like-minded people.
By that, I mean to be in touch with people willing to save in their 30s and slowly build their empire.
A good way to do that is to join mastermind groups to share and discuss ideas.
It will positively influence your journey to success, and many new doors will open — which will probably lead to wealth-building as a side effect.
My father always suggests this: networking and staying in touch with like-minded people is key.
He thinks that networking in our times is more accessible than it was when he was my age, and that I should use this to my advantage.
2. Reassess Your Goals
You will probably have different goals in your 30s compared to the ones you had in your 20s.
For example, you might be interested in starting a family, while before you were more interested in traveling. Or you might want to buy your own house, while in your 20s you shared an apartments with other people.
It’s important to reexamine your goals and make sure you take the path you really want to be on.
If you’re married or in a long-term relationship, it’s also important that your goals align with the ones of your partner.
3. Keep Reducing Debts
Paying off your debts is an important step towards building wealth.
Focus on clearing your debts and past student loans, and stick to your budgeting plan.
Reducing the expenses on one card while increasing them on another one is never a smart move if your goal is to build wealth.
So, make sure you pay off debt with your own money, not with a new loan or a new credit card.
Suchet, one of my friends, has been a high earner since his 20s. He’d always spend on credit cards when he was younger.
Even though he made timely payments, he’d keep using another credit card. And he was paying high interests.
This way, he could not save, and more than 50% of his income would go into debt payments every single month. Thank God he realized his mistake before it was too late, and he started saving.
He used his savings to pay his debts. Once he got out of debt, he started to save 50% of his income. He built an emergency fund and invested part of his savings in his own business.
He now lives in a beautiful home — that he bought without mortgage — with his family.
4. Have a Budget Plan
A clear budget plan helps you keep track of your income and expenses.
If you have a budget plan, you avoid to spend money on what you don’t really need.
And this is directly connected to one of the most important rules of wealth building: live below your means. That’s key to increasing your net worth.
Make sure not to increase your expenses too much every time you get a pay raise or your monthly income increases. Try to save or invest that money instead.
5. Keep an Emergency Fund Ready
The last thing you’d want is running out of money during an emergency, be it a medical situation, paying off car expenses, or anything else that needs immediate attention in case of job termination.
This is why it’s essential to have an emergency fund, and if you haven’t started it yet, it’s time to begin saving.
Experts suggest building an emergency fund that covers at least 3 to 6 months expenses in case you lose your job. It’s one of the most important steps you should keep in mind while building wealth in your 30s.
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6. Plan for Financial Security in Post Retirement
Several studies showed that over half of adults who are 55 or more have retired. Stepping onto your 30s means you’re just two decades away from joining the retirement club.
So, it’s time to consider your financial security after retirement.
If not, consider creating an private retirement plan to upgrade your retirement savings.
7. Avoid Tempting, High-Risk Investments
Going for low-risk investments in your 30s is worth it because you still have recovery time before joining the retirement club in case things go south.
And if everything goes well, you can generate wealth in the long-term.
Rather than choosing high-risk investments, it’s better to focus on long-term, low-risk ones. Real-estate investments are usually a great move.
8. Continue Investing in Yourself
Investing in yourself is one of the best things you can ever do, especially when it comes to build multiple sources of income. Investing in yourself primarily means to learn new things and acquire new profitable skills.
This is a great choice if you want to have one or more side-hustles and generate multiple sources of income.
Also, having an additional income channel (or more) will automatically help you build wealth in your 30s. And if youi lose your job, you won’t have to worry.
This is what financial freedom is all about.
One of my friends, Sheetal, is 32, and she completed her digital marketing course just a few months ago.
Now, she provides digital marketing services to small businesses and earns a great amount of money through her side hustle.
9. Educate Yourself About Finance and Money
Once you’re ready to build wealth, it’s essential to have a good knowledge of personal finance.
Try to dedicate some of your time to read books about entrepreneurship, personal finance and money, listen to podcasts, and watch interviews online.
The more you learn about this world, the more you’ll learn to think and plan.
Recommended read: How to Really Make $5,000 a Month from Home
10. Reduce Expenses and Save More
Once you’re willing to work hard to build wealth, you must take every action needed to make it happen.
And the first step is to reduce your “unwanted” expenses from your budget plan. You will realize there are many expenses and subscriptions you can actually cut.
In front of each expense or subscription, ask yourself this question:
“Do I really need it?”
That’s the question that will help you get rid of unnecessary expenses, save more, and eventually build more wealth.
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Building wealth in your 30s is an exciting and hardworking process. You can make it happen if you’re following the right strategies. Here’s what we saw in the article about building substantial wealth in your 30s:
- Create or Join Mastermind Groups: If you want to build wealth in your 30s, you need to surround yourself with like-minded people, who have your same goals and who are willing to support you. Form mastermind groups to discuss and share ideas.
- Reexamine Your Goals: Reassess your goals at least once and try to be specific about the expenses you will make. Your financial plan must align with your goals.
- Keep Reducing the Loans: Once you have a steady flow of income, keep reducing your debt.
- Have an Updated Budget Plan: Always have an updated budget plan and look for ways to increase your income and reduce your expenses.
- Keep an Emergency Fund Ready: Always have an emergency fund ready that can help in case you lose your job, have unexpected medical expenses, etc.
- Retirement Plan: Have a solid retirement plan and plan for financial security for your retirement.
- No High-Risk Investments: Don’t go for high-risk investments. Low-risk, calculated investments are what you should focus on because you have time to recover before retirement — in case things don’t go as expected.
- Continue Investing in Yourself: Investing in yourself is always a good idea. Become a learning-machine. You can always use your skills to earn additional income.
- Educate Yourself About Money: Educating yourself about personal finance and money is essential to avoid potential risks. Read books about money and listen to podcasts to expand your knowledge.
- Reduce Unwanted Expenses: Reduce unnecessary expenses. This will help save significantly.
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