Your 30s is a fantastic time in your life. The uncertainty and insecurities of your 20s slowly start to ebb away, your career is beginning to progress and you’re starting to think about taking those key milestones decisions of your life.
In your 30s you can no longer neglect your personal finances. If you didn’t start saving in your 20s, you have already lost 10 years of compound gains, to put off investing any further could be detrimental to your financial health.
But what investment opportunities are available to you in your 30s? Take a look at some of the following options and make some sensible decisions about your future wealth.
Invest in property
Investing in property is one of the simplest ways of investing. It’s not easy, you’ll need to save a lot of money first and be ready for the ongoing financial responsibility, but over time, investing in a property can provide you with a solid investment for your future. Buying your investment property is not something to be entered into lightly, and there will be several steps you need to take to insure your purchase is successful.
After your initial investment, if you wish to expand your portfolio, you will require assistance from financiers and tax experts to determine the optimal leverage mix and ensure you can avoid unnecessary tax payments. One such way you might look to do this is by swapping your current investment property for another under the 1031 exchange. This helps when it comes to capital gains tax on the profit made during the sale. If this is something you might be interested in, you may wish to seek out a qualified intermediary to assist you with this and ensure that you are remaining IRS compliant. You might consider investing in multiple properties throughout the years to bolster your portfolio and secure a comfortable retirement.
If buying a property of your own isn’t something you’re in a position to do at the moment, you could look at other options for investing in property, including investing with family or friends. You could also buy property somewhere away from where you live, like your hometown, if buying in a big city isn’t affordable at the moment. You could also consider investing in property abroad if that’s something you’ve always thought about doing.
Clear debts to maximize savings
It’s difficult to save and invest money when you’re still faced with debts. Trying to clear your debt should be a priority, and depending on the volume of debt, this could take years. Paying off your debts can be done by stopping taking on any more debt, paying off your highest interest debts first, and cutting your spending to be able to maximize repayments. If you’re struggling with your debts, then you should seek help from either family or from a debt management charity that can help you get back on your feet and pay your debts quicker.
Try micro-investing
If you’re keen to begin investing but haven’t got a clue where to start, micro-investing could be the right solution for you. Micro-investing involves making small investments, usually by rounding up your spending, to put towards investments. You can start micro-investing via different applications on your phone that can get you started in minutes. It’s a great way to learn about investments as it is low risk and everything is done for you. As you grow confident with investing, you can then move on to larger investments.
Build a stocks and shares portfolio
If you’ve got savings or want to use regular savings towards a larger investment, then building a stocks and shares portfolio could be a fantastic way of growing your assets and providing you with a way of making additional income. Investing in stocks can be daunting at first, but there are guides and experts who can help make it possible.
It’s important to remember that the stock market changes constantly, and while you could make a lot of money through careful investments, there’s also a risk of losing money. If it’s a low-risk investment you’re looking for, you might want to explore other kinds of investments.
Choose the right pension plan
Do you have a pension plan? It could be something to consider post-retirement. While your employer might still invest in a pension on your behalf, more and more businesses are moving towards 401Ks, helping you to personally save towards your retirement. Understanding the difference between a 401K and a pension can help you decide which investment is best for you. Even if you have a 401K, you could save into a private pension plan to help boost your post-retirement income even further.
Invest in yourself
Your 30s is a good time to invest in yourself. Whether you want to take on a postgraduate degree, change your career or go traveling, you can also use your 30s as a good time to invest in yourself. Instead of living a life with regrets, use your 30s as an opportunity to do the things you want to do.
Investing in yourself doesn’t just have to be a financial investment, it can mean an investment in time too. If you find that you’re often rushing around without much time for yourself, then now is a good time to change those habits for the better. Making the time for self-care, by eating well, exercising, and making sure that you get enough sleep, will all help you to live healthier, easing stress and boosting your overall happiness.
Seek professional advice
There are a lot of options available when it comes to investing, which is why it can be very difficult to decide which method is right for you. Meeting with an expert can help outline all of your options and put a decision in place that suits you and your individual circumstances. Even if you’ve only got a small amount to invest right now, you could find that there are some fantastic options to help you grow your income ready for your future. When it comes to personal finance, it’s always better to seek professional advice to help you make the right decision.
Making sensible financial decisions in your 30s can benefit you in the future. Settling down and thinking of savings and investments can help make sure you’re comfortable financially and can make a plan for your retirement. Many people are retiring as young as 30, so if you play your cards right, it could be you that’s walking away from the world of full-time work soon. Explore the different investment opportunities available to you and choose the one that’s the most appealing to you.