Retirement Planning in Your 30s¹

Already thinking about retirement? That's great! It means you'll have plenty of chances to get ahead of the game.

Starting to save for retirement in your thirties can give you time to benefit from compounding growth, work toward other financial goals simultaneously, and give some thought to what kind of retirement you want (not just what you can afford).

Get a solid spending plan going.

Think budgeting sounds like a punishment? It doesn't have to. In fact, a spending plan is more likely to work out if it doesn't make you miserable, because that means it's a good fit for your lifestyle and priorities.

Chances are you've got more disposable income than ever before, but you've also got higher expenses. Be creative with how you pare down your spending, and try to stay positive. Before long, you could be stashing 10% of your income into savings and retirement accounts.

Think about what's most important to you.

If homeownership a high priority for you, then invest in a home. But if you're honestly happy renting, you could save a lot of money in the long run. Same goes for cars, clothing, weddings, education, luxuries, and every other expense you can think of. The key to meeting your goals and being happy with what you have is knowing exactly what you want and letting the rest go.

Take the plunge: Start investing.

Once you decide to start saving, don't just stick your money in any old account. With retirement so far off, your money needs to beat inflation and earn you more money. At this point, you can afford to invest in products like mutual funds, which have the potential for both more risk and higher earnings.

Avoid credit card debt like the plague.

Looking forward, it's easy to feel like you'll have plenty of time to pay off the meals out, shopping sprees, and vacations you're charging. But the real question is: Will you be able to pay off your debts and meet the rest of your financial goals?

During your thirties, there's a good chance you'll take on some serious financial responsibilities—like getting married, buying a home, and having kids. Don't let credit card debt get in the way of these huge, exciting life changes.