If you’re 30-ish years old and just starting to think about investing, give yourself a pat on the back. Thirty years old gives you plenty of time to save for retirement. Along with nailing down an affordable, long-term care plan that will protect your wages if you become injured or disabled, investing at 30 is a smart way to set yourself up for financial success later.
Why People Put Off Investing
Suppose you’re like many people your age. In that case, you probably have legitimate reasons why you could not even consider investing in your 20s. For example, some people bounce around low-paying jobs in their twenties until they figure out a long-term career. Others put off working full-time until they are out of college, trade school, or the fire academy. Of course, some probably were making enough money in their twenties but spent instead of saving.
Whether you fit one of those three profiles, you’re ready to invest and do the right thing. Anyone who tells you it’s too soon to start saving for retirement or planning for unexpected situations like needing long-term care, especially in careers with inherent risks, such as firefighting, is not giving you good information. So read on for some pointers on what to do now that you’ve decided to start investing.
3 Easy Steps to Start Investing at 30
1. First and foremost, get yourself some goals. What do you want to work toward? For example, if you plan to stay single for a long time (a person can dream, right?), the short-term goal might be to buy a couple of ATVs and a trailer. On the other hand, if travel is your passion, it could be a yearly vacation to destination paradise.
In terms of longer-range goals, you need to protect your most valuable asset: the ability to earn a paycheck. Look into long-term care options through NPFBA, which are economical and tailored to an individual’s needs.
2. Get educated about your options.
Almost anyone can become a mini-expert in investing basics, and most financial planners also offer free, no-obligation consultations. Get a few names from older friends or relatives who’ve been in the investing game a little longer and start making appointments with the professionals they use. Be sure to know the basics before your meeting to take full advantage of your free time: Find out what diversification, ROI, and risk tolerance mean, and be prepared to ask questions.
3. Build an emergency fund.
Take an honest look at your household budget, whether you are a household of one or four. Where can you trim your discretionary spending (things you can do without but often buy anyway)? Then, consider what you must spend each month (fixed costs). Can you reduce some of your fixed monthly expenses, such as lower-priced streaming, cable, or cell phone plan?
Once you’ve figured out how to create a nest egg, you should have an accurate picture of what you have to work with in terms of investment strategies. Creating a savings account that works as a primary emergency fund will protect your investment portfolio and allow you to reach long-term goals (a.k.a. retirement).
These three tips are straightforward, and anyone who has been in your industry for any length of time will likely agree. Chances are excellent that they will also recommend following in their footsteps with a solid long-term care plan like what NPFBA offers.