One of the more important things you need to really get serious about by the time you’re in your 30s is securing your financial future. You can do that by making wise financial and investment decisions. What you do now will affect your future.
For those who’ve never made any investments at all, the thought of putting your hard-earned money in something that doesn’t guarantee a win could be terrifying. But this fear shouldn’t stop you from trying, because as they say: The higher the risk, the bigger the rewards. Besides, there are more to gain than to lose (and no, it’s not just experience) in making an investment, just as long as you do your homework and research the pros and cons.
But alongside making investments is protecting the future you’re building. Make sure you insure yourself and your family from unexpected costs of getting sick, accidents, or even death.
Here are some smart investment decisions you should make while in your 30s that’ll financially set up your retirement years.
1. Plan your retirement.
Why would you start planning for your retirement when you haven’t even peaked in your career, yet? That’s a question of most thirtysomethings. The answer: Why not? Now, at your 30s, is actually the perfect time for you to think about your plans for the future and make investment decisions. After all, you’re still young (yes, you are!), in the pink of health, and with a lucrative or, at least, a stable career.
You can start with putting together your emergency fund, one that can tide you over should emergencies happen. Then, look into long-term investments with small, but guaranteed returns. Remember, the trick is long-term.
2. Get an insurance plan.
Most people in their 30s make the mistake of saving up and investing, only to see their entire retirement fund siphoned by medical bills. Don’t make that mistake. Protect yourself and your family from future expenses by getting insurance plans that will cover unexpected events like critical illness, accidents, and death.
There are insurance plans like FWD Set for Life that’ll give you both protection and investment. Plus, you can get add-ons that’ll cover accidents, critical illness, and even hospitalization.
3. Build your investment portfolio.
Stocks and bonds are usually the first things that come to mind when you think of a major investment, and for very good reason. People that are able to handle and manage investments like stocks and bonds can enjoy a huge payoff. The biggest advantage of investing in your 30s is you still have time to recover successfully from market setback. So think long-term.
Still, it wouldn’t be advisable for you to just jump on the bandwagon without truly understanding what options are available for you. Set up a session with a financial advisor who can take a look at your risk tolerance, check your needs, and advise you on the investments that’ll be good for you. Set up a financial planning session now: Sign up here.
4. Invest in things that will appreciate in value.
Saving up for the future does not necessarily mean buying cheaper so you can save more. Investment is not just about stocks and bonds—it’s also about making purchases that can appreciate in value over time.
Take for instance real estate. It’s something that not only gives you the security of having your own home, but also gives you the option to convert it to cash later on should you decide to sell or lease it out.
Believe it or not, jewelry is another good piece of investment. Gold and diamonds have real value that you can pawn or sell should you need to. Items like watches, designer bags, and artworks can also appreciate in value, over time. But they are trickier to buy since not all brands and artists will increase in value.
Just remember, though, that this shouldn’t be license for you to splurge. They are meant to be investments, so approach and treat them as such. Do not make the purchase if it will only burden you with debt, and don’t use them indiscriminately coz their overall condition will affect their future value.
5. Think about the long-term.
Always be smart with your purchases and always think of the long-term. When buying think of future uses. A cheap item that you will only use for a short time or just once or twice is just a waste of money compared to a more expensive item like a top quality coffee maker or a good piece of suit for formal occasions that you’ll be able to use for a lifetime. It’s savings in the long-run.
They say you’re most likely to feel like you’re at a crossroads when you get to your 30s. You’re at the tail end of your happy-go-lucky 20s and at the cusp of #adulting. While this can cause much confusion and uncertainty, it’s also the most important time to set the wheels and build the foundation for your future.