Are you wondering if you’re earning the same amount of money as other people your age, or if there are financial milestones you should be hitting in your thirties? Perhaps your planning to start a family or buy a home. Whatever questions you might have, we’ve compiled a quick guide to everything you need to know about finance in your thirties, plus links to other helpful in-depth finance topics.
What should you be doing with your superannuation in your 30s?
According to AMP, the average super balance for men aged 35-39 is $64,560, and for women $48,874.
“It’s important to continually weigh up the potential benefits of topping up your super against other things you might do with your money in your thirties,” says Mark O’Leary, of KRA Wealth Management and AMP financial adviser.
“Depending on your situation, you might want to consider salary sacrifice options or voluntary contributions to boost your super balance. Not only will this help you save cash for retirement, it could also help reduce your overall tax bill. And, if you’re eligible, unlocking a government co-contribution can also provide an extra kick to the amount in your super fund. People in their thirties often switch to part-time work or may even stop working to raise a family. Look into spouse contribution options if you have a partner who is still working, as this can unlock tax advantages for the whole family.”
Want to know more about superannuation? Read the guide HERE
What should your superannuation goals be in your 30s?
“It really depends on your job and what you want your retirement to look like, but research shows Australians will need $2-4million dollars to retire, so keep that in mind and work backwards with your personal situation in mind,” says Vanessa.
What should your money goals be in your 30s?
According to data by Finder, in your thirties you should be focusing on regularly tucking money away into your savings, ensure any unnecessary debt has been paid off, contribute regularly to your super and start considering other ways you can top up your finances when retirement rolls around, such as investing or side hustles.
Want to know how to make your savings work harder? Read the guide HERE
How much money should you be saving in your 30s?
According to the retirement experts at Boston-based investment firm Fidelity Investments, if you are 30 years old and earning $60,000 a year, you should already have $60,0000 in your savings account. By 35 years old you should have double your annual salary in savings.
A recent survey by ME Bank suggested more than half of Australians fail to put anything away in savings each month, with 25 per cent saying they were living paycheque-to-paycheque. Vanguard investor group suggests saving 12% to 15% of you salary each year, which might be a more feasible goal.
Vanessa recommends separating your pay into different segments the moment you get it and pay yourself first.
“Each month, put a percentage of your pay put into a high interest account that you can’t touch. An old rule of thumb is to save 10% of everything you earn, but depending on your circumstance, you may be able to save more. Also, start a financial plan with goals for every year, 5 years, 10 years, 20 years and so on.”
Want more advice on money in your thirties? Read the guide HERE
How much money should you be earning in your 30s?
According to data collected by the Australian Bureau of Statistics, people aged between 25 and 34 are earning $4774 before tax a month, while people aged between 35 and 44 earn $5912 a month before tax.
Want to know how much the average Australian is earning, saving and spending? See how your situation stacks up HERE
Money mistakes you should avoid making in your 30s
According to Qudos Bank, mistakes you should avoid making in your thirties include overspending on a wedding, not having a set budget in place, not saving for retirement, and falling victim to lifestyle inflation (where the costs of your lifestyle increase as your salary does). Not having a financial plan for your future Is another mistake, as is spending beyond your means and not having life or disability insurance.
Need to know how to pay off debt? Read our guide HERE
What is the biggest drain on your finances at this stage of life?
Milestone life events such as buying a house, starting a family and getting married often fall into this age group. ASIC’s Moneysmart website quotes $36,200 as the average cost of a wedding in Australia, and starting a family has also has a hefty price tag, with the Australian Institute of Family Studies reporting a first child can cost on between $3000 and $13,000 during their first year of life.
“Children are a significant financial stressor at this stage of life so it’s important to think about children early,” says finance expert and author Vanessa Stoykov. “Plan ahead.”
Want to know how much Christmas costs the average family? Read the guide HERE
What assets should you be developing at this stage of life?
According to Vanessa, once you are in your thirties developing or acquiring any assets is a good thing. “Stocks, shares, property, whatever you can get on the ladder with in terms of assets will help you ten-fold in the future,” says Vanessa.
Think you want to invest in property? Read about being a home owner HERE
Money habits to develop in your 30s
Vanessa says your thirties is the best time to start a side hustle and earn more money.
“It becomes harder – energetically- to hustle the older you get, so if you can get yourself a side hustle to help you grow your money, do it. Whether it be driving an Uber or signing up to Air-Tasker, the more money you can bring in, the more choices you ultimately have.”
Want to know how to turn your hobby into a side-hustle? Read the guide HERE
All the advice in this story is general in nature and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.
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