By We say it all the time: You want to start thinking about your financial future as early as possible. But it can be difficult in your 20s, as you’re getting out of school, finding a job, and transitioning to being out on your own. It’s easy to set aside those early years when it comes to saving and investing, and, if that describes you, I completely understand.
However, once we get into our 30s, we should have started to establish ourselves in a career field we want to be in. We should be making a dent in our student loans. This is also a time when people typically make big decisions like who they’re going to marry, what house they’re going to buy, etc. These are big personal and financial decisions that should be made thoughtfully, with an eye to your future.
Your 30s are your last time for “easy wins.” If you push it off to your 40s and haven’t made progress on student loans, overextended yourself on a mortgage payment, or haven’t even started saving yet, you lose time for the compounding effect of investing to really take hold. We now face an uphill battle. Getting it right in your 30s is critical.
If you’re at the point where you’re making those big financial decisions, it’s important to have a professional to help guide you along the way. Financial advisors make recommendations that align with your goals and financial needs. For example, maybe you’re approved for a $500,000 house, but it would make more sense for your budget to look in the $350,000 range. A financial advisor can look at your entire financial picture to help you make an informed decision.
If you’ve spent your 20s or early 30s trying to get established and you’re in a career now where your income is starting to pick up, this is a logical time to consider investing and building your retirement savings. Let a financial advisor — whether it’s us at Family Financial Partners or somebody else — help make a plan to establish how much to save, where to invest, and how that might look in your retirement.
And if you’ve already missed out on investing in your 30s, don’t fret. The second-best time to start is today. We can help you there, too.
Contact me or anyone else on our team today with any questions or for a free sit-down to go over your finances and your goals.
Article by Kyrk Davis, Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.