Key Takeaways
- In your 30s, there are three important things to do with your money that will help you in the long term.
- Paying down debt and building your retirement savings are key goals.
- Set some time aside every March to see where you are with these goals.
“If you find yourself in a hole, the first thing to do is stop digging.” That’s a quote attributed to Will Rogers, and it’s some sage advice. It’s also related to three things to do in your 30s – in the third month of the year, for three years in a row.
So for year one, stop digging! Start small in the first year. Get rid of the worst debt – stop the bleeding, so to speak, and get yourself going in the right direction.
In year two, front load your retirement. Take a look at your retirement plan and put away as much money as your company will match. Most companies offer a match, so take advantage of it to help get that compound effect working for you into the future. At some point, you may have a family and a mortgage, and you’ll find money is tight, so it will be nice to have this in place.
For the third year, balance paying off that big debt against saving for retirement. Front load the savings as much as possible, but then pay off the debt more quickly. And as you get out of debt, you can put more money toward retirement, or toward buying a home, or toward the expenses of having a family.
So every March, come back to this and look at these three things: the debt, the retirement front loading, and the debt and retirement together, and this will help you get to where you want to go in the future. Until next time, enjoy.