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Best Financial Practices for Men in Their 30s

How many of us actually started thinking about retirement or investing in our twenties? Statistics show that most young people don’t start saving or investing until they’re well into their thirties, and even then, it’s not very much. If you want to get your finances in a healthy place, it’s totally doable – and it’s not as hard as the current statistics make it seem…

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We spoke to a handful of financial experts to get an idea of how to take hold of your finances so that by the time you’re in your forties – and even later on – you won’t have to scramble to fix your money mindset or savings account. Here, eight practical steps you should get into in your thirties if you really want your financial habits to pay off.

Create an Emergency Fund

“One habit that can cause you a lot of financial problems is the lack of emergency funds,” says Igor Mitic, Co-Founder of Fortunly.com. “You never know what can happen and as you grow older, the number of unpredictable situations only grows, especially if you have a family of your own.” In order to avoid cutting back on your salary to cover sudden costs, invest time in making an emergency fund. “If you’re not familiar with organizing finances, consider hiring a professional to help you. In the long-run, you can save a lot of money if you organize it properly and on time,” says Mitic.

Invest in a Diversified Portfolio

If you’ve handed your investment portfolio over to the advisors at your company, or you haven't started investing yet, take control and start making your own decisions. “Simply invest in a diversified portfolio of common stocks via a passively managed fund that mirrors a broad stock index. They are low cost and put more of your hard earned investment dollars to work for you. And people should utilize dollar cost averaging — that is, consistently investing whether the market is going up, down or sideways,” says Robert R. Johnson, PhD, CFA, CAIA.

Time is the key to successfully building wealth because of the effect of compound interest. Albert Einstein was rumored to have said that “compound interest is the greatest mathematical discovery of all time.” Time is the greatest ally of the investor because of the "magic" of compound interest.

Flex Your Skills

“Get really good at something and learn how to sell it! This is the time in life when you have to realize that valuable skills earn money,” says Dave Lowell, CFP, Millennial Money Coach and Founder of Up Your Money Game. “The more valuable the skill, the more money you can make. Get really, really good at a valuable skill, then learn to leverage it.” Lowell suggests leveraging your skills by starting your own online business, consulting, or even just by getting promotions or better job offers.

Don’t Try to Look Cooler than You Are

“You want to look like you have an awesome life to impress other people because your ego needs it… but don't!” says Lowell. “You buy the BMW now and get the penthouse, and vacation exotically, at the expense of saving 20% early on, and you are a fool. You aren't going to feel cool when you are 65 and still working 50-60 hours a week in a job you don't like. What will make you feel cool is retiring at 45 or 50 and being able to do whatever you want. That feels very cool!”

Help Out Your Parents

Nobody wants to think about losing their parents, but unfortunately it’s a reality that can hit when you least expect it. “Get your parents' and your estate planning in order while everyone is healthy,” says Renee Fry, CEO at Gentreo. “That means a will, health care proxy and more. If your parents don't have this, you will pay thousands and thousands to lawyers and maybe not get what you thought. Now that it is easy, fast and affordable and can be done online, you have no excuse, just expensive costs and lots of headaches to avoid!”

Know Where Your Money is Going

Anna Keisler, a financial planning associate in Metro Atlanta, says guys in their thirties should really know exactly where their money is going. “While it may be acceptable in your early twenties to have zero idea how much money you make and where it goes during the month, it’s not cool when you hit your thirties,” Keisler says. “Whether you keep a meticulous budget or just glance at your account a few times a month, you should know how much you’re making and about how much you’re spending. Otherwise, you’re probably spending too much and not saving enough. To know how much you have available to save, you have to know how much you spend.”

Get Life Insurance

Sure, you’re in your thirties, it’s not like you’re midlife … but getting life insurance goes beyond just thinking about when you’re not around anymore; it can actually be a great investment strategy. “My suggestion would be to get life insurance while they are still young!” says Robb Hill, LFP and Founder of R Hill Enterprises, Inc. “In my practice, I come into contact with people all the time that have waited and waited to buy life insurance, but life insurance favors the young and healthy!”

Think Strategically About Your Career

This one might sound obvious, but in your thirties you should focus on advancing your career. “If you’re thinking of doing quick gig-like work for the same amount of money as a steady, career-progressing job, think twice. It’s not the right time for taking shortcuts – those times were your twenties!” says Tony Arevalo, Insurance Agent and Financial Advisor at Carsurance.

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Kaitlyn McInnis, Khareem Sudlow