Don’t panic: A savings guide for turning 30

Turning 30 is a huge milestone that can run the gamut of emotions. Excitement, worry, confidence, intimidation and a sense of responsibility may all be swirling through your brain at the same time. But what about when it comes to your finances? As a group of 30-somethings (or at least almost 30-somethings) ourselves, we’ve learned a thing or two about managing money during this new, exciting, possibly overwhelming chapter. Don’t worry! Here are a few of our top tips for saving money in your 30s that don’t feel like homework.

Start with the foundation

Like a curated wardrobe or a new home, it’s best to always start with the foundation and go from there. The three biggest groundwork pieces that will help you in your financial future are managing your debt, building an emergency fund and saving for the future.

• Managing debt. At this point, you’re probably paying down student loans and may have a credit card or two. Debt is often cited as one of the biggest financial burdens for people in their 30s. But it doesn’t have to be! Firstly, debt can be paid down piece by piece with tried-and-true methods like the debt snowball or the debt avalanche. The snowball method focuses on the smallest debts first. The avalanche method tackles debts with the highest interest rates first. Either method is a good choice, but make sure to stay consistent to make the habit pay off.
• Build that emergency fund. When something unexpected comes up, having that extra cushion of cash gives major peace of mind. Though experts recommend having anywhere from three to nine months of expenses saved for such a time, that doesn’t mean you have to do it all at once, either. Start small, add a dedicated “emergency fund” section in your budget and contribute $50 each month. Soon, that little bit of peace of mind will start to grow. Future you will thank you!
• Save for the someday. Right now, retirement may seem like a lifetime away. But like most things with money, starting a measurable, attainable habit now will pay off in the years to come. Thanks to compounding interest, even the smallest contributions to a 401(k) or IRA can grow over time. Ask your employer about their retirement options to make sure you’re making the most of what they offer!

Know your type

What kind of spender are you? Do you prioritize wellness, education, travel, food or fun? Take a look at your spending habits over the next three months and note where your dollars are headed. If you’re noticing a trend in travel, start adding vacation money to a fund every time you’re paid. More of a foodie? Create (and stick to!) a restaurant budget each month that gives you a set amount to work with.

Opt for high-yield savings options

If you have anything left over after paying all of your living costs, save it! And if you’re saving, you might as well make it work even harder for you. A high-yield savings account, or HYSA for short, is a great option if you have a short-term savings goal in mind like a down payment for a home, a car or even a vacation! A HYSA helps your money grow faster, thanks to a higher interest rate. Plus, HYSAs are considered just as safe as traditional savings accounts and can even get you to your savings goal a little faster than you may have planned. What have you got to lose? Certainly not that compound interest.

Always remember your season, and that seasons change

Your 30s may look different than the 30s of your closest friends. That’s OK! You may be paying off student loans, saving for a wedding, moving across the country for a new job or even paying for daycare. This isn’t the decade to be comparing yourself to the friend maxing out every account. It’s the decade to align your money with your life! Keep this in mind: You aren’t behind; small habits add up over time and you’re already doing more than you think. By making a few mindful tweaks, you’ll start to see your savings (and financial confidence) grow in no time.