People say 30 is the new 20. Certain life events seem to be shifting later, like building careers and starting families. Even though some milestones are being delayed, that’s no reason to procrastinate when it comes to your finances.

The truth is, your 30s are a critical time to expand your smart financial habits. You’ve got life experiences you didn’t have at 20, and you’ve still got time on your side. When you think about it, you’re in a pretty powerful position. Your next money moves matter. A lot. Here are 5 financial habits to start in your 30s that will set you up for success. 

1. Get Out of Debt 

If you’re a 30-something with debt, you’re not alone. You might be paying off student loans, financing a car, and/or carrying a balance on a credit card. Maybe more than one. Womp womp. 

You’re not 25 anymore — it’s time to get serious about getting out of debt. While debt has been normalized in our instant gratification culture, the reality is that interest is costing you. Not just the dollars it eats up every month, but the opportunity cost. What else could you do with that money? 

If debt prevents you from saving for your future or spending your money on an incredible experience, it’s too expensive.

Easy Strategy to Eliminate Debt

Debt can feel like a never-ending avalanche. If you’re feeling overwhelmed, the snowball method is an effective way to attack your debt. The steps are easy: 

  • Make a list of all your debts.
  • Identify the smallest one and pay it off completely.
  • Once that one is paid off, focus on adding any money that would’ve gone to paying off the first debt (plus any new income) to the next smallest balance.
  • You will be out of debt much sooner than you would imagine.
  • Related: 9 Essential Dave Ramsey Tips for 2022

2. Save More 

Once you tackle your debt, you’ll free up extra money for saving. While it’s probably the least exciting goal, you need an emergency fund as a buffer against the unexpected. Especially if you want to avoid going back into debt. You also might want to start saving intentionally for something fun, like an epic vacation. 

Either way, it’s not happening without a plan. Without a plan, your saving will not be intentional, it will be sporadic and chaotic. And, not having money to cover your basic needs leads to stress. Be more mindful when it comes to saving money, especially an emergency fund.

3. Invest More 

Your 30s is a crucial time to get serious about investing. I know, retirement seems like a lifetime away. But right now, you have something powerful on your side: Time. When you get serious about eliminating debt, that frees up money to invest.

If you start investing regularly now, you can set yourself up to enjoy a comfortable nest egg in the future without having to invest huge amounts down the road. That’s because there’s plenty of time on the calendar for compound interest to work its magic. 

4. Review Insurance Coverage  

Although you might have dismissed insurance in your 20s for anything other than your car, your 30s are a prime time to review your coverage. At this stage of life, you have acquired assets you’d like to protect, and you might have started or are thinking about starting a family. If that’s the case, you need to make sure your needs are covered. When dependents are in the picture, it’s especially important to consider life insurance. 

5. Forget the Joneses 

One of the biggest mistakes people in their 30s make is comparing themselves to “the Joneses”. You know who I’m talking about: Your colleagues, neighbors, and even random people on social media who seem to have everything. 

A bigger house. A newer car. A fancier vacation. And it makes you feel inadequate. Next thing, you’re sacrificing your investment goals for an expensive car payment. Or worse, maxing your credit card to book vacations you can’t afford. 

Listen up: The Joneses are BS, and comparing yourself to them is senseless. That’s right, I said it. First of all, you don’t know their financial stories. Maybe they saved for everything they have, but maybe they’re drowning in debt. Hard pass. 

Secondly, it doesn’t matter what anyone else is doing. What will bring you satisfaction? If it’s spending every cent you earn and borrowing more besides accumulating more stuff, then have at it. But if you want less stress, more time, and more options, that isn’t the way. 

Check Your Social Media Use

You already know what I’m about to say: Social media feeds aren’t real life. They’re highlight reels. But that doesn’t stop the insidious comparison game we’re always playing. 

To curb toxic comparison, be selective with how you use social media: 

  • Try deleting apps from your phone for a while;
  • If that feels too hard, make them less accessible by moving them off the home screen or putting them in subfolders;
  • Schedule social-free times in your day;
  • Unfollow accounts that make you feel jealous/inadequate; and 
  • Follow like-minded people and groups that inspire you. 

Your 30s are a golden opportunity to tackle your finances. Implement these five tips and you’ll be off to a good start. 

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