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Many say your 30s bring a greater sense of confidence and clarity. They’re also a great time to focus on building wealth and creating a successful long-term financial future. You’ve probably got some experience under your belt, and now it’s about taking the right steps to grow what you’ve planted. This is a decade where you can balance saving, investing, tackling debt, and enjoying life without feeling like you’re falling behind. Here are some tips on what to do and what not to do once you hit your 30s.
Take advantage of employer benefits
Does your employer match retirement contributions? Offer a pension, employee share ownership plan, or an employee stock plan? If so, take full advantage of these benefits to help grow your long-term savings.
Turn to tax-advantaged plans
Saving money can be hard when you’re still starting out, but the government has designed RRSPs, TFSAs, FHSAs and RESPs to help you save for all your family’s financial goals while offering tax advantages. Each program works differently, but a Scotia advisor can help determine which plan (or combination) best suits your needs.
Invest for growth
With time on your side, you can lean more towards growth-oriented investments, such as High Interest Savings Accounts, Guaranteed Investment Certificates (GICs) and mutual funds, which grow your savings over time. Remember, with greater reward potential comes greater risk, so be ready for the value of your portfolio to go up and down to fully enjoy the potential rewards.
Setting financial goals
Whether you’re saving for a house, building an emergency fund, paying down your debts, or just aiming for more stability, a clear financial plan can really help. Budgeting and monitoring your expenses will keep your goals on track without sacrificing your lifestyle. If you are a Scotiabank client, you can access Scotia Smart Money by Advice+ in the Scotia app1, which offers a variety of money management features including the ability to build a budget. It’s about getting organized so that you can continue to enjoy life with ease.
Pay off debt
Managing debt can feel overwhelming, but now is the time to get serious about paying it off. Whether it’s student loans, credit card balances or a car loan, start by listing everything you owe. Then you can build a strategy for paying off the highest-interest debts first or tackling smaller debts to build momentum. The key is to find a plan that fits your budget and keeps you moving forward.
Become overwhelmed
Your 30s may be full of big life events like getting married, buying a house, having a family, or even starting a business. These are exciting milestones, but they can also bring on some financial stress. Figuring out what matters most to you, setting some goals and sticking to a budget can go a long way in easing anxiety and helping you feel more in control. With time on your side, you can lean more towards growth-oriented investments, such as High Interest Savings Accounts, Guaranteed Investment Certificates (GICs) and mutual funds, which grow your savings over time. Remember, with greater reward potential comes greater risk, so be ready for the value of your portfolio to go up and down to fully enjoy the potential rewards.
Try to have it all right now
It’s normal not to have achieved all of your goals yet. Many thirty-somethings are chasing their dream lifestyle, but it doesn’t always fit with what they’re earning. Spending more than you can afford now will set you back later, so sometimes patience is the key to building your way up. Maybe that means renting a little longer or buying a place that needs some work. Renovate when you can until you’ve turned it into your dream home.
Overlook your insurance needs
Insurance is a crucial part of your financial future, and it can help protect everything from your car and home to your health and life. It might feel early to think about it, but having health and life insurance in place now can give you peace of mind for those unexpected things that could pop up down the road.
Don’t worry – it’s definitely not too late to start investing in your future. The most important thing is just to get started. Setting up regular contributions through a Pre-Authorized Contribution plan to a savings or investment account can really add up over time, thanks to the power of growth on your returns. Even if you feel behind— small, steady contributions can make a big difference in the long run. Again, if your workplace offers programs like a group savings plan or pension, definitely take advantage of them.
And if you’re unsure of where to begin, talking to an advisor can help you create a plan to catch up and move toward your financial goals.
This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. References to any third party product or service, opinion or statement, or the use of any trade, firm or corporation name does not constitute endorsement, recommendation, or approval by The Bank of Nova Scotia of any of the products, services or opinions of the third party. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
