Solid Financial Targets for People in Their 30s

When you reach your 30s, your economic situation usually begins to improve. You may find yourself making more money than you did when you were younger, becoming more recognized in your work, and able to increase your savings.

As your situation has altered, so should your ambitions. If your twenties were all about establishing the groundwork, the next decade is all about expansion and placing yourself in a good position for the future. To that end, here are five individual financial goals for 30-year-olds.

1. Boost your earnings

As you become older, your earning potential should improve. You get more experience and learn new skills. That is why, in your 30s, your first objective should be to enhance your income. Set attainable but ambitious objectives, such as earning $5,000 to $10,000 more next year.

The best technique to do this will be determined by your skill set and present job status. Here are some alternatives to take into account:

Inform your manager that you would like to get a raise and inquire about opportunities for advancement.

- Try job seeking to see if some other employer might offer you a higher wage.

- Begin a small business or work for yourself as a freelancer.

- Explore potential side jobs if your schedule allows that.

2. Compensate high-interest loans

Financial planning while carrying high-interest debt is like running a marathon with ankle weights on. You can accomplish it, but it will be lot more difficult. Monthly debt payments reduce the amount you may put towards savings and retirement.

Many individuals struggle with credit card debt because it is so simple to overspend using credit cards. If that is a concern for you, concentrate on getting out of credit card debt and avoiding it in the future. Also, if you have any other high-interest debts, such as payday loans, be sure you address those as well.

Low-interest debt isn't usually a significant concern. If you have a decent car loan or a mortgage, you don't have to hurry up with them if opportunities are not yet apparent.

3. Set aside a year's income

Many personal financial gurus recommend that you save at least one year's pay by the age of 30. If you earn $50,000 per year, your target is $50,000.

To be clear, this does not imply that you must keep all of your money in your savings account. You can put the money in all of your bank accounts, retirement plans, and brokerage accounts.

This can be a difficult aim to achieve, as many 30-year-olds do not have a year's income saved. If you haven't already, make it one of your financial objectives for your 30s. To live comfortably in retirement, you'll need multiple times your annual pay. A year's pay is a solid starting point for further development.

4. Strive for a credit score of at least 760.

Your credit score is a gauge of your creditworthiness, or the likelihood that you will return money borrowed. Your FICO® Score, which ranges from 300 to 850, is the most often used score by lenders.

A good credit score has several advantages. The benefit that may be especially relevant to you at this time of life is that your mortgage rate is determined by your credit score. If you want to buy a house, raising your credit score might save you $10,000 or more over the life of the loan.

Mortgage rates are lowest for consumers with a FICO® Score of at least 760, so that's a solid objective to strive for. Even if you don't intend to purchase a home, your credit score may help you get approved for an apartment and open one of the best credit cards, among other financial benefits.