There’s a lot of advice about getting your finances in order during your 20s, but unless you want to retire by the time you’re 45, isn’t it better to spend this decade doing everything you want to do? Instead, you’ll find your 30s are the best time to settle down and start to think about the future more seriously, which includes your retirement plan. But, if you’ve spent the past 10 years enjoying yourself, you may not know where to start, so here are four ways to establish a retirement plan in your 30s.
Make The Most of Company Contributions
Many companies will offer to match your 401K, meaning that they will put in as much as you do. This can provide a stable and hassle-free base for you to build your retirement fund, enabling you to enjoy a more profitable plan that will help you feel more comfortable later in life. However, you also need to make sure you make the most of it. Some people will only contribute a little as they feel they cannot afford to put more away. While this can be true, it also means you will struggle to prepare yourself (and your family) for a more secure financial future.
Combine Your Pensions
If you have worked numerous jobs over the past 10 to 15 years, you may have pensions that you have forgotten about. It’s always worth looking back at what you’ve been gifted as part of previous company pension policies and combining them. You may not get a lot, especially for jobs where you only spent a few months, but even small amounts can help if you enjoy more profitable savings.
Keep Up With Salary Increases
Even if you like your current job, it still pays to search for other roles in other companies. At the very least, you can feel confident you’re being paid above the average rate. If not, you can bring this information to your employer. The secret behind knowing how to get a pay rise is to always keep up with pay increases, so don’t be afraid to talk to your coworkers to see how much they earn and use it to ensure everyone in the office receives a fair wage.
Make Smart Investments
There are many investments you can make as you get older. These could be stocks, new companies, or even investing in yourself and your well-being. These investments can help you get to a comfortable stage in life where you enjoy financial independence. This means you can do whatever you want after you retire, whether you travel the world, move to retirement communities, or follow creative dreams that have always eluded you because you’ve been too busy to do anything else.
Very few people know how to take better care of their money overnight and the first few years can feel like you aren’t getting anywhere. But, with a little perseverance and careful saving, spending, and investing, you can set yourself and your family up for a comfortable future.