by Cortney Meng
Milford and Stratford residents: do you have a 30th birthday coming up? If so, take a moment to reflect on where you were and what you were doing just 10 years ago. A lot has changed, no? In fact, your twenties can be one of the most transformative decades of your life. By the time you reach 30, you may be entrenched in a career, thinking about getting married, buying a home or even having children. Maybe you’ve already done all of the above!
As such, it is important that you reevaluate your savings strategy to reflect your changing lifestyle as you approach your 30th birthday.
If you’re looking to overhaul your savings strategy, here are a few good places to start.
Start a retirement account: If you haven’t started saving for retirement, you’re not alone. In fact, 57 percent of millennials have yet to start saving for retirement. But the fact remains that the sooner you start, the easier time you’ll have reaching your goals. If your company offers a 401(k), start taking advantage of the benefit if you are financially able to do so. You might also want to diversify by establishing an IRA or investing in a mutual fund too.
Buy life insurance: At 20, you might not have had anyone depending on you. But the game often changes at 30. You might be responsible for your business, your partner, a child, a mortgage or other loans. A big part of that responsibility is making sure your loved ones are taken care of if the worst should happen to you. At 30, you’re still likely young and healthy enough to qualify for an inexpensive life insurance policy. Some forms of insurance, like permanent life and annuities, double as investment vehicles, making them an important part of your savings strategy as you enter your 30’s.
Improve your credit score: A great credit score will open up many doors to you in your 30’s. You’ll be able to secure a larger line of credit with lower interest rates if you can demonstrate that you’ve been historically responsible with your spending. Speak with a credit agency or financial expert to see how you might be able to boost your score, so that you’ll be in a position of strength when you’re ready for the big financial decisions that many of us make in our 30’s.
Take a calculated risk: It is generally considered a best practice to be conservative with your savings when you’re young. Many years of safe, steady earnings can leave you poised to have a great retirement in a few decades. But another benefit of youth is that you have more time to bounce back if an investment doesn’t pan out. Consider taking a small, discretionary sum of money and check out a company or product that you’re passionate about. It might not pan out, but you never know—you might invest in the next Amazon or Apple, too.
If you’re ready to take a serious look at your savings strategy as you approach your 30’s, stop by any office of The Milford Bank branch near you to speak with an experienced financial advisor today. You can also learn more by checking out our Online Learning Center.