The Guide to Investing in Your 30s (2024)

By Kia Jackson • July 22, 2022

Your 30s are a great time to correct any financial hiccups of your younger years, prioritize retirement and focus on building wealth. With a bit more stability in your career and home life, you can make key investment decisions now that will pay off in your retirement years. What are the best investments in your 30s? Use this guide to help you discover how investing at 30 can set a solid foundation for the future.

Is 30 too old to start investing?

It’s ok if you’re just starting to invest in your 30s. Statistically, you enter your peak earning years around age 35.¹ So now is just the right time to get serious about putting money aside for the future.

How can I start building wealth in my 30s?

Building wealth in your 30s requires a steady commitment to responsible spending, keeping debt under control and saving. You should always keep a close eye on your credit, especially now, since it impacts your ability to secure a mortgage on the purchase of a home and finance other large purchases that often come with this stage of life. This is especially important if you’re starting a family, growing a business or trying to reach the next level of your financial goals.

What should I invest in my 30s?

At this age, you’re still investing for the long term. A financial professional can advise you on the kind of investments that match your tolerance for risk with your goals for the future. But wherever you decide to invest your money, be diligent about it.

Consider this: At age 35, if you begin putting away $300 each month in an investment with an average return rate of 6%, that investment will be worth $293,776 when you reach age 65.² But keep in mind, you will have only contributed $108,000 of that amount yourself. That $300 you diligently saved each month grew by over $185,000. Not too shabby, right?

How to start investing in your 30s in 8 quick steps

Ready to get started? Here’s how our quick guide to investing at 30.

1. Get control of debt. It’s harder to build wealth in your 30s if you’re starting with too much debt. So take the proper steps to keep debt under control. Keeping a close eye on your spending, payment due dates and balances — and adjusting your credit card usage accordingly — can help you maintain a healthy credit lifestyle now as you build toward a stronger financial future.

2. Keep emergency funds on hand. Having money earmarked only for emergencies is the best way to prepare yourself for any unexpected surprises that come your way. And it prevents you from tapping into your investments when money gets tight. So if you don’t already have one, start building an emergency fund right away to ensure you stay on track with your investment goals.

3. Find a financial professional to help. A licensed financial advisor can help map out a game plan and guide you to the best investments to make in your 30s, but it’s important to find someone you trust and feel comfortable with. Ask a family member or trusted friend to recommend a financial advisor or follow these tips for finding one.

4. Make the most of your 401(k). Retirement may seem far away but the reality is you’re now halfway to retirement age. That’s why it’s crucial you participate in any employer-sponsored retirement plan available to you like a 401(k). If your employer offers one, especially one that matches your contributions up to a certain percentage, take advantage of it by contributing as much as you can. And since most companies automatically deduct the amount you choose from your paycheck and deposit it into your retirement plan, it ensures you’re sticking to your investment goals. Remember: your contribution limit for 2022 is $20,500.

5. Open or increase contributions to an individual retirement account. Individual Retirement Accounts (IRAs) allow you to invest in stocks, bonds, exchange traded funds (ETFs) and mutual funds. They can play a significant role in building wealth in your 30s, because you can contribute a maximum of $6,000 each year. So if you have room in your budget to contribute the maximum amount, do it. Here’s why: If you invested $6,000 every year starting at age 30, your account could be worth about $400,000 when you turn 60.³ When you set up your IRA, arrange to have your contributions made automatically on a consistent schedule to make sure it remains a priority.

6. Invest for the long term. At this age, you have plenty of time to take on the ups and downs that come with risk. A financial advisor can recommend investments that may involve a bit of risk now, but can lead to higher average returns over the long term. But don’t put all your eggs in the “risk” basket. It’s typically recommended for someone investing at 30 to put about 70%-80% of long-term savings in stocks, and 20%-30% in bonds, for some safety.⁴

   See Also

   How to Invest in Your 30s

7. Purchase a home. If you’re currently renting your place, you should consider buying a home an important asset to buy in your 30s. The sooner you do, the sooner you’ll build equity in your home and increase your assets. Of course, owning a home comes with its share of costs, so be sure you’re prepared for any unexpected expenses by keeping an emergency fund on hand.

8. Get life insurance. Life insurance protects the wealth you’re working hard to build for your family should you pass away. It can also be used as an investment vehicle now. Whole, universal and guaranteed life insurance are three types of permanent life insurance that accrue cash value in an account that acts like a savings account.⁵ A portion of your insurance premiums goes into your cash value account, and you can withdraw money or take a loan from that account for almost any purpose. Just remember that taking the cash value of a life insurance policy for other investments could reduce your policy's death benefit.

1. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/wkyeng.t03.htm
2,3. https://www.calculator.net/investment-calculator.html#
4. https://money.cnn.com/retirement/guide/investing_basics.moneymag/index7.htm
5. https://www.businessinsider.com/personal-finance/whole-life-insurance-vs-universal-life-insurance-vs-guaranteed-life-insurance