Managing and Saving Money in Your 30s
Plan for your future with money advice for 30-somethings from Citizens Bank
If you’re in your 30s, your financial priorities are likely evolving. You might be wondering how you should be saving money to plan for common milestones such as getting married, having children or purchasing a home. In this guide, we’ll provide you with money advice that is tailored to 30-somethings and the expenses they often face. Read the tips below to find out what you can do to prepare for your financial future and how Citizens Bank can help.
Prepare for financial milestones by anticipating upcoming expenses
Though anticipated life events such as retirement or a child’s college education are still years away, it’s wise to prepare for them now. Here are a few examples of common expenses that people face in their 30s and tips to help you manage them:
- Getting married – With the average cost of a wedding totaling around $31,000 (not including a honeymoon), it makes sense to begin planning for the cost sooner than later if marriage is on the horizon. A helpful bit of money advice for 30-something couples: The earlier you start planning, the more you can take advantage of banking options such as interest checking, which allows you to grow your funds with a competitive interest rate while retaining easy access to your money.
- Buying a house – Homeownership is one of the most common savings goals in your 30s. Even if you’re not purchasing a home in the near future, the cost is considerable enough that you’ll want to begin saving now. You might want to use a designated account, like Homebuyer Savings® from Citizens Bank, to help incentivize your savings.
- Having children – If you have or are planning to have children, contributing to a college savings account is important. The Citizens Bank CollegeSaver® savings account may be just what you need to get started.1 If you make the minimum monthly contributions to your child’s account, we’ll give you a bonus of $1,000 (plus interest) on his or her 18th birthday.
- Retiring – If you’re unsure how to save for retirement in your 30s, a good first step is to contribute to a retirement fund at the highest percentage you can afford per paycheck, and then increase the amount annually or upon earning a higher salary. Though it might seem far off, saving for retirement in your 30s can greatly increase your investment. Meeting retirement goals is easier when you have time on your side, as every year makes a significant difference with compound interest.
Reassess your overall financial strategies
Beyond preparing for short- and long-term goals, your 30s are a time to reevaluate your overall financial strategies. Budgeting money in your 30s will focus on managing increased daily expenses while planning for the future. Here are a few examples of new strategies to keep in mind when budgeting and saving in your 30s:
- Build cash reserves – If you don’t have a significant amount of money in a savings account, start by building up those reserves. Open a savings account online that’s separate from your primary account to plan for a long-term purchase or emergency expenses. This way, your funds can grow separately from the money you have allocated for other goals. If you’re not completely satisfied with your banking situation, now is a good time to explore your options and learn more about switching banks, if necessary.
- Make a plan for paying off debt – Another valuable piece of money advice for 30-somethings is to make a plan for paying down any lingering credit card, car or student loan debt. As your finances are stretched in different directions, persistent credit card balances can put an increasingly significant dent in your money. If you’re accruing additional debt, it might be time to seek professional assistance to break the credit card debt cycle.
- Reevaluate your finances – An easy way to start evaluating your finances is to check your monthly bank statements and credit card bills for recurring charges you can eliminate. You’ll also want to keep an eye out for inflated areas of expense that can be reduced. At some point in your 30s, you’ll likely get a raise or a job with higher pay. While it may be tempting to spend those funds on luxury items, consider first auditing your budget, making adjustments where necessary and saving or investing any extra money. This will help reduce the risk of overextending your finances should your life situation change unexpectedly.
Consider the Circle Gold Banking® package from Citizens Bank to meet your financial planning needs
As you decide where to invest money in your 30s, consider the Circle Gold Banking package from Citizens Bank. With Circle Gold, you’ll receive an interest checking account, a savings account and an optional money market account. You can easily open a bank account online or in person to refine your banking strategy in your 30s. Reach out to a Citizens Bank customer service representative if you’re not a Citizens Bank customer and would like to learn more about switching banks and the benefits of the Circle Gold Banking package.