hr: Money

This is the time for you to make the big bucks if you were very prudent in your finances back then. At this time, probably you are earning as much as 5 times more than when you first began working. This trend would continue to grow exponentially over the next several years.

Along with marriage and kids, here come long-term financial commitments like mortgage on a house and car/s, insurance for your estate and family, and educational plans for your kids.

In this case, you should already start building a large emergency fund. It should be liquid and easy to access in cases of emergencies. Manage to keep 6 month’s worth of salary to 1 year depending on your preferences.

This time is where your disposable income was a lot bigger than before. But with kids, be prudent and a bit more conservative in your portfolio. You should be drifting very slowly from aggressive positions to stable and sound ones. Try to slowly accumulate your fixed income as you go nearer to retirement.

This period of time is also the period where you should be boosting your monthly contributions to your IRA or 401k. The name of the game in your 30s is wise and prudent savings. Make sure you visit and clear things up with your financial advisor or banker about what you like and expect.