6 Ways to Build Wealth in Your 30s

You’re in your 30s. Maybe you’re feeling like you’re finally getting your life together after you’ve spent you’re 20s leveling up your career.

And by your 30s, you’re likely more settled, which makes it easier to establish consistent budgeting and savings habits. This is also the time when most people typically experience significant career advancement and higher earning potential.

Your life direction is moving along — maybe you’ll be starting a family and are now starting to get serious about your future and long-term wealth management.

Starting to save and invest in your 30s gives you a longer time horizon to benefit from the power of compounding returns over decades.

1. Get Smart About Your Money

Maybe you’re no longer spending a lot of your income on social activities and dating like you were in your 20s. This is the time to take a hard look at your finances and develop a more comprehensive financial planning approach.

Know where your money is coming from and where it’s going. Look at your income, expenses, and how much you’ve been able to save so far.

In terms of budgeting, look to see if there are areas where you can cut back and use the money for more productive uses such as paying down debt and savings. Great financial planning often starts with understanding your complete financial picture and identifying opportunities for improvement.

2. Build a Strong Financial Base

First things first, you need a solid safety net. Would you be able to handle an unexpected medical bill or a job loss tomorrow without financial panic?

Target to save up enough cash to cover 3–6 months of your living expenses.

Next, get rid of your debt, especially those high-interest credit cards and loans.

Your 30s is an excellent time to start planning for your retirement savings. It might seem like its far away, but the earlier you start contributing to your 401(k) or IRA, the more time your money has to grow.

Maximize your employer match: If your employer offers a 401k plan with a match, take full advantage of it — this is essentially free money.
Contribute to an IRA: If your employer doesn’t offer a 401k, open an Individual Retirement Account (IRA) or Roth IRA.

3. Learn How to Invest

As an investor with a long time horizon, stocks have historically provided the best returns over the long term compared to other asset classes like bonds, and real estate.

Over the past century, stocks have delivered an average annual return of around 10%, significantly outperforming bonds and other asset classes.

The higher risk associated with stocks is compensated by higher potential returns, making them ideal for you when you have a long investment horizon and can ride out short-term volatility. A registered investment advisor can help you navigate these markets and build a portfolio aligned with your risk tolerance and financial goals.

Also, the power of compounding returns amplifies the benefits of stocks over longer periods. Even modest investments in stocks can grow substantially over decades as returns are reinvested and compound upon themselves.

This wealth-building potential is unmatched by other asset classes and forms the foundation of effective wealth management strategies.

4. Build More Income Streams

Diversifying your income sources is another way to build up wealth. Your primary job provides a steady paycheck, but additional income streams can boost your earnings and savings potential.

For example, consider investing in real estate, such as rental properties or a home that will appreciate over time — this allows you to build equity and generate passive income.

In today’s gig economy, there are different ways to earn extra income through side hustles or freelancing. Think about your skills and experience and offering services like writing, design, or consulting.

Or start an online business selling products or services.

Invest in yourself by constantly learning new skills and gaining knowledge. Stay up-to-date with industry trends, acquire new certifications, or even go get some additional education. A fiduciary financial advisor can help you integrate these additional income streams into your overall wealth management strategy while ensuring all recommendations serve your best interests.

5. Automate Your Savings

One of the most effective ways to make sure you’re consistently saving is to automate the process. Automating your savings takes the effort out of the equation and makes it a seamless part of your routine.

Set up automatic transfers from your checking account to your savings and investment accounts. This way, you’ll be paying yourself first before you have a chance to spend that money elsewhere.

When setting up automatic transfers, start with a manageable amount, even if it’s just a small percentage of your income, and gradually increase it as your finances improve.

Monitor your investments and overall financial progress. Set aside time each month or quarter to review your portfolio performance, asset allocation, and progress toward your financial goals. A registered investment advisor can provide valuable guidance on optimizing your investment strategy and ensuring it remains aligned with your wealth management objectives.

Pro tip: Investing in the stock market can feel like a rollercoaster ride with ups and downs. Stay focused on your long-term goals and don’t get emotional from short-term market drops or swings. Sometimes the best strategy is not to watch the market or financial news and just let your investments do their job.

6. Have the Right Mindset

Lastly, building wealth is not just about strategies and tactics; it’s also about having the right mindset.

One of the best ways to develop the right mindset is to learn from those who have already achieved financial success. Read biographies, books, and articles about successful investors, entrepreneurs, and millionaires.

By studying the lives and philosophies of successful individuals, you’ll gain inspiration and motivation. You may also uncover valuable lessons and principles you can apply to your own wealth-building strategies.

The more knowledge you acquire, the more confident you’ll feel in making big financial decisions.

Building wealth is a marathon. And the beauty about building your wealth in your 30s is that time is still on your side. With proper financial planning and the right guidance from a qualified financial advisor, you can create a strong foundation for long-term financial success.

Are you ready to retire with confidence?

Book a no-obligation initial call to see how we’ve helped hundreds of clients like you craft a personalized retirement plan that’s uniquely you.