As you make your way into your 30s, you'll most likely be out of school and living on your own with a full-time job. This means that it's time for you to start thinking about your future and looking out for your older self. Do you want to have kids, start your own business, retire early, or just live comfortably? If so, there's no better way to ensure a bright future than to start building your wealth as soon as possible.
The good news: it's not too late to course-correct anything. The window is still wide open. But the moves you make in your 30s will determine a significant amount of your financial freedom in your 40s and beyond, and the checklist looks different here than it did in your 20s.
If you haven't already worked through the four financial foundations from your 20s — budget, debt, credit, retirement basics — start there first. This article assumes those are in motion and focuses on what comes next.
Here's what we're covering:
- Why you need to build wealth in your 30s
- How to budget
- How to invest your money
- How to pay off debt
- How to build your emergency fund (and where to keep it)
- Where your credit score should be
- How to increase your income
- Estate planning basics
- Your health as a financial asset
- When to hire an accountant
Why Do You Need to Build Wealth in Your 30s?
Up until our thirties, it’s easy to fall into the mindset that “growing up” and “getting old” are distant futures that we don’t need to worry about. But now, those futures are becoming a reality. This can be alarming but don’t panic, there’s still time to make sure that you’re ready for what’s ahead.
As much as it would be nice to always live in the moment, we need to look out for who we will be tomorrow. If you don't ensure that you'll have enough money to make it when times get tough, you may be stuck living paycheck to paycheck at a dead-end job. None of us want that.
Having wealth also just makes you a more high-value person to employers as well as potential friends and partners. Handling your finances well means that you're responsible and reliable — and then there's the obvious benefit: you'll have more money. Though money can't buy happiness, it can get you close. The more you have, the more opportunities open up.
So how do you start to build your wealth in your 30s? Here's where to focus.
How To Budget Your Money
Budgeting your money should be your first step in gaining wealth. You can't accumulate wealth without first properly managing the money that you're already making.
Typically, as you get older and gain more work experience, you start making more. This is great — but a problem many people in their 30s face when their income increases is that they start spending to match that new income. If you're making more and spending more at the same time, your financial situation isn't really any better. This brings us to the #1 rule for budgeting: spend less than you make.
If you tend not to keep track of your spending, you may very easily be spending a lot more than you need to. The first step to spending less is identifying what you really don't need to be buying:
- Eating out frequently
- Buying luxury items like fancy cars or the newest iPhone
- Indulging in expensive hobbies like golfing or skiing
- Buying designer clothes when more affordable options do the same job
- Signing up for a bunch of online subscriptions you've forgotten about
Instead, consider these alternatives:
- Meal-prepping to save money on food
- Buying what works well, not the latest version
- Sticking to less expensive hobbies or getting equipment second-hand
- Buying dupes or going thrifting
- Canceling subscriptions you aren't currently using
It can feel like deprivation to cut back on little luxuries — but saving your money is a game of moderation. You can still treat yourself, just not so much that you're overspending. In fact, rewards help you work harder, so be careful not to cut everything fun.
A good framework: the 50-30-20 rule. 50% of your income goes to needs, 30% to wants, and 20% to investments and savings. The 20% is the number most people compress when life gets expensive, but it's also the number that determines your future.
How To Invest Your Money
Another way to actively increase the amount of money you'll have in the future is to invest. You work hard for your money — so why not have your money work for you?
There are tons of ways to invest: stocks, bonds, cryptocurrency, and more. But two types of investments are far more important than the rest:
Investing in a retirement account.
Whether it's a 401(k), an individual retirement account (IRA), or a Roth IRA, putting money into a retirement account regularly will ensure you'll be set for retirement. When you put your money into one of these accounts, it gains interest over time — allowing your investment to vastly increase by the time you need it.
It might be hard to face the fact that it's time to start preparing for retirement, but when the time comes you will be thankful. The target in your 30s: 15% of your income going toward retirement, ideally 20% if you can get there. If your employer offers matching on a 401k, contribute at least enough to capture the full match — that's an immediate 50-100% return on that portion. Beyond the match, index funds remain the default recommendation for most people: low fees, broad diversification, historically strong long-term returns.
Paying off debts and loans.
Perhaps even more important than a retirement plan is paying off your debts and loans. Big debts gain interest over time, increasing the amount you'll need to pay. If you're looking to accumulate wealth, you'll need to be paying off your debts first. Not only is this good for your future — paying off debt also reflects well on your credit score. A good credit score will ensure you can get more loans in the future if you need them.
A note on riskier investments: stocks, NFTs, and cryptocurrency are volatile because you're never sure if you'll increase your money or lose it. These should be a small portion of your portfolio, not the cornerstone of your retirement strategy.
Pay Off Non-Mortgage Debt
Now that you're in your 30s, finishing paying off your debt is one of the most important financial goals to keep at the forefront of your mind.
Think about all the debts you have — aside from mortgage payments — and whittle them away. Student loans, car loans, credit card balances: make a list, order by interest rate, and direct extra payments to the highest rate first. The mortgage is the exception to aggressive payoff — mortgage debt at a reasonable rate on a property that holds value is a different calculation.
It may seem difficult to pay off debt while also building savings, but it is possible. It takes dedication and focus, and your hard work will pay off — both in your finances and in your credit score. A good credit score will ensure you can get better rates on future loans, including a mortgage.
Build Your Emergency Fund + Put It in a High-Yield Savings Account
If the goal in your 20s was to make sure you had $1,000 of savings, now is the time to ramp up significantly. Six months of living expenses is the target, and that includes enough to cover rent, bills, food, and minimum debt payments for six months if your income disappeared tomorrow.
Studies show that six months is the average time it takes to find comparable employment after a layoff. With the responsibilities you have in your 30s — a mortgage or rent, potentially a family, ongoing debt payments -- running out of runway during a job search has much steeper consequences than it did at 24.
Where you keep your emergency fund matters just as much as building it. If it's sitting in a traditional savings account earning 0.01% interest, you're leaving real money on the table. High-yield savings accounts (HYSAs) at online banks currently pay 4–5% APY, meaning a $15,000 emergency fund earns $600–750 per year just sitting there, versus about $1.50 in a traditional bank account.
That's probably not enough to absolve you of the responsibility of funding the account yourself, but it provides a much better buffer against inflation. Meaning your money won't just silently lose value as it sits there waiting to be needed.
It works exactly like a regular savings account: FDIC insured, transfer money freely, which means it's not more complicated or risky than any other bank account. So why are the rates better? Usually these banks don't have physical branch locations, which means they pay lower overhead to run their operations, which means they can offer better rates to appeal to customers. Just make sure you look for accounts with no minimum balance and no monthly fees.
NerdWallet maintains a running list of the best HYSA options out there. We personally use Marcus -- if you open an account using our link, we both get a temporary rate boost. But all of the options below are worth considering.
Remember: HYSA rates are variable and move with the federal funds rate — what's 4.5% today may shift in a different rate environment. That's fine for an emergency fund. The rate advantage over a traditional bank persists regardless of where rates are.
Know Where Your Credit Score Stands
In your 20s your credit score determined whether you could get a basic credit card. In your 30s it determines your mortgage rate, your car loan rate, and in some states your homeowner's insurance premium. The stakes are higher, and the score you're carrying now will follow you into the largest financial decisions of your life.
If you haven't checked recently, pull your free report at annualcreditreport.com — all three bureaus, because errors on one won't always show on another. Dispute anything inaccurate immediately.
The 30s credit moves that matter most:
- Keep old accounts open. The length of your credit history is 15% of your score. The card you got at 21 that you never use is quietly helping you just by existing. Don't close it unless it has an annual fee you can't justify.
- Get utilization below 30% on every card. Not just overall — per card. Above 30% on any individual card is actively dragging your score.
- Don't apply for new credit in the 12 months before a major purchase. Hard inquiries stay on your report for two years. If a mortgage is in the next year, hold off on new cards.
The number to aim for: 740+. That's where you unlock the best rates on mortgages and major loans. For the full breakdown on how to raise a low credit score, here's our complete credit score guide.
How to Increase Your Income
When you think about increasing your wealth, the first thing you probably think of is earning more money in the first place. This part of the process is much easier said than done. More money usually means more work. But it also means no ceiling on what's possible, unlike the limits on how much you can cut.
Here are some of the most accessible ways to increase your income:
- Get a side gig. Pick up another source of income on the side of your full-time job — freelance work, a side hustle, consulting in your area of expertise.
- Switch jobs. It may seem risky, but the data is consistent: job switchers consistently outpace the salary growth of those who stay. If you haven't tested the market in the last two years, you may be leaving money on the table. You miss 100% of the shots you don't take.
- Pick up extra shifts or freelance work. If you're able, overtime or extra projects add up faster than you might expect.
- Ask for a raise. Easier said than done, but if you've been consistently delivering for more than 18 months without a meaningful compensation review, you have standing to ask. Come in with market rate data from Glassdoor or Levels.fyi — not just tenure.
Increasing your income allows you to cut back on spending less while building wealth faster. Of course, if you want the best results you can increase your income and cut back on spending simultaneously -- resulting in faster accumulation of wealth.
Get Your Estate Planning Started
This is the one most people in their 30s put off because it requires contemplating things nobody wants to think about. Do it anyway.
Estate planning doesn't require having significant assets. It requires having clarity about what happens if something goes wrong.
- A will specifies who gets what and — critically if you have children — who takes care of them. Without one, those decisions are made by a court according to state law, which may not reflect your wishes at all.
- A healthcare directive (also called a living will or advance directive) specifies what medical interventions you do and don't want if you're incapacitated. It removes an impossible burden from your family.
- A durable power of attorney designates someone to make financial and legal decisions on your behalf if you're unable to.
Not saying you're dying anytime soon — but it is better to be safe than sorry, especially if you have children or significant assets. Basic documents can be created affordably through services like Trust & Will or Fabric, or with an estate planning attorney for more complex situations. The cost of not having them is much higher than the cost of getting them done.
Prioritize Your Health -- It Has a Real Financial ROI
Your early 20s may have been the last years of college and staying up late. Now that you're in your 30s, it's time to prioritize your health not only for your wellbeing, but for your personal financial goals.
Having good health will save you significant costs in the future as well as the present. Chronic illness is expensive. Preventable conditions that develop from neglect in your 30s become costly to manage in your 40s and 50s. Even though you may be busier than ever with career and family life, it is not the time to neglect your health.
The basics compound over time exactly the way financial habits do:
- Get proper sleep. The research on chronic sleep deprivation and health outcomes is clear
- Get regular movement. A daily walk after dinner counts, it doesn't have to be a gym
- Stay hydrated, eat reasonably well
- Use your preventive care benefits. If your employer offers health insurance, annual check-ups are included and most people underutilize them
These may seem like small and simple steps, and that's good. They should be easy enough to put into action, but they will make a real difference in your financial life over the long run.
Consider Hiring an Accountant
As opposed to the simple finances you probably had in your 20s, finances in your 30s may start to become rather complex. While in your 20s you may have just had a checking and savings account and some bills here and there, your 30s may include mortgages, homeowners insurance, retirement accounts, investment income, and savings plans.
If this is the case, it is in your best interest to find an accountant you can work with. The more complex your finances, the more complicated your taxes will be. You may think you can handle it with software — and that's an option for straightforward returns — but a good CPA doesn't just file your taxes. They do proactive planning throughout the year to minimize what you owe.
The cost (typically $300–800 for a personal return depending on complexity) is often recouped in tax savings alone. When to make the call: if your return took you more than a few hours last year, if you own property or have significant investment income, if you have any self-employment income, or if you've had a major financial event like an inheritance, business sale, or divorce.
Your 30s is the perfect time to get serious about building wealth and securing your financial future.
From paying off your debts and building your emergency fund to ramping up retirement and getting your estate planning in order, your 30s are when all of these pieces start working together. It's easy to get caught up in worrying about money, but don't let it take over your every waking moment. Right now, laying and starting to build on a good foundation is enough.
Your 30s are a unique point in your life. You're still young, but established enough to finally do the things you wanted to do in your 20s but didn't have the time or money for. There are opportunities everywhere. The goal is to strike the balance between building for the future and actually living your life right now. And if you make a few smart moves, you can have both.
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