Today, there are over 43 million men and women between the ages of 30 and 40 in the United States. If you’re among them, now is the perfect time to start building wealth. While there’s a lot of ways you can do that, some are certainly better than others. We’re going to take a look at some of the best methods for investing in your 30s that will help set you up for success in the future. Keep reading to learn more about how you can start building wealth in your 30s.
1. Conquer Debt
Before you can start building wealth, you have to take care of any debt you have in your life. This will give you greater freedom in the future, especially if you’re dealing with high-interest consumer or student loan debts. Create a plan to get yourself out of debt and then make a budget that you can stick to that will prevent you from falling back into it.
2. Build Your Retirement Funds
It’s never too early to start investing heavily in retirement accounts. This is especially important if you have a 401k and an employer that matches contributions. Put as much into these funds as possible, at least to the amount your employer will match. Otherwise, you’re missing out on free money! Keep in mind that if the company goes out of business for any reason or files for bankruptcy, you will no longer have access to 401k funds. This is because 401k funds are typically an asset of the company. If they go belly up, it’s likely your money would go with it.
If you want a bigger return on investment as an employee or you’re an entrepreneur and don’t plan on relying on a 401k, you should consider Indexed Universal Life Insurance. It’s not just life insurance, it also builds cash value and you can use those funds to cover the cost of living after you retire. In addition, you’ll still have money left over to leave to your children in the event of your death.
For example, if I began investing a minimum of $500 per month starting at age 25, I could potentially build up to $1.5 million in cash value using an Indexed Universal Life Insurance Policy. I would need to invest this until the age of 65. At age 65 I would have $1.5 million and a death benefit of $500,000. Take a look at the video to learn more about this scenario. Fast forward to 2:24 to learn more.
3. Consider Investing in Real Estate
While this can require a large up-front investment, real estate is a market that will always grow in the long term. You can either buy properties to fix up and sell quickly for a profit or set up rental properties for monthly income. There are also different ways you can funding the start of your real estate investment with someone else’s money (without giving up equity). Go here to learn more about real estate line of credit funding.
4. Start a Business to Build Wealth
There’s never been an easier time to start your own business. You can set one up as a side hustle and keep your regular job, or consider leaving the rat race behind completely to be your own boss. You can find a ton of online resources that will help you do everything you need for your business, including websites like www.paystubs.net where you can quickly and easily create pay stubs for paying employees or contractors.
5. Invest in a Peer to Peer Lending Network
One of the easiest ways to get started in investing at any age is through peer to peer lending. It has a low entry point of investment so you can start with as little as $100. Just invest as much as you want in loans requested by others and collect interest as they pay you back. You have complete control over how much you lend out and what level of risk you’re willing to take on. Check out sites like Kiva or Prosper to get started.
Visit Us Often to Learn More About Investing in your 30s
Now you know a few ways that investing in your 30s will allow you to prepare for a happy retirement and help you live your best life now. As you can see, there are plenty of options so you can pick the one that works best for you. To learn more about building wealth, keep reading our blog. There, you’ll find a ton of information that will help you make wise financial decisions to help you and your family gain financial freedom.