What are your financial goals before April 30?
Investing In Your 30s: How To Optimize Your Finances
The 30s are a decade of life that has a say in the rest of life for many people. The average age at marriage in Germany in 2019 was 32.1 years for women and 34.6 years for men. Many then quickly start to found a family: When their children are born, most women are in their early to mid-30s. As a thirtysomething (English: describes a person between 30 and 39), many Germans make life-changing decisions.
But not only in private life, but also in work, between 30 and 39 important points are set. After training and studying, the young people have now fully arrived at work. You have already gained a few years of experience and start on the career ladder. Of course, this also has an impact on finances - for both women and men. This decade saw the biggest leaps in salary. From the age of 40, the salary does not rise as much as before.
The 30s are not only groundbreaking for family and work, fundamental decisions should also be made now for finances. Especially because so much happens at once - because a clever financial strategy means one less worry and thus more energy for the many other questions in life. Plan your finances based on the following three financial goals - and benefit from the good feeling of having all-round provisions.
Financial goal 1: The nest egg
You built something up in your 20s - so it's all the more important that you protect your lifestyle! The nest egg forms your safety net in which you contribute Unemployment, illness or unexpected expenses can fall. Think of this financial goal as as necessary as health insurance: Every adult needs a nest egg because this is your basic financial support. The amount should keep you and your family afloat for three to six months in case you have to waive your salary.
How do you calculate that Amount that you should invest as a nest egg? Fortunately, the formula is very simple:
- Nest egg = monthly expenses x bridging period
First, estimate your average monthly expenses (or even better: keep a household book regularly - this can also be done easily via the app). Then multiply this sum by the months that you want to cover with the nest egg. Whether you are more likely three or more like six months should aim for depends on several factors:
- Your family situation: Do you only finance yourself or does a family of several depend on your income?
- Your work situation: do you work independently or employed? How crisis-proof is your income situation? Would you find a new source of income quickly?
- Your financial obligations: Do you have high monthly payments, e.g. B. for a loan? Or do you spend a lot of money on things that you could do without in an emergency?
It is better to plan your nest egg too generously than too tightly. Every month “buffer” makes your safety net even more stable. Make sure you invest this sum profitably instead of parking it in your savings account. This means that your nest egg can work for you even when you are not actually using it. A more conservative investment strategy such as grow20 is suitable for this. With this, your money is invested in ETFs with a mix of 20% stocks and 80% bonds. You benefit from a good return with low volatility.
Financial objective 2: Retirement provision
Do you feel young and fit and retirement still seems a long way off? While both are true, you should still be targeting your 30s right now invest in your retirement savings. Because so that you can maintain your standard of living in old age, you need more than the statutory pension. You can read in detail how you can optimize your retirement provision in our article "Saving for retirement".
The reason your 30s are critical to your life situation in old age is this Compound interest effect. Your salary will likely plateau this decade and not rise as steeply as it has before. So you can now estimate how much money you can regularly invest each month for your old-age provision or private pension. It takes time for this money to grow properly by the time you retire. With an ETF savings plan, the interest is paid out every year. growney reinvests this in your financial investments and in the next year you will receive interest on your assets - including this interest. As a result, your money grows steeper with each year of investment. And the longer you invest, the greater the compound interest effect.
To calculate how big your supplementary pension can be with growney, use ourPension calculator.
Financial objective 3: plans, goals, dreams
Of course, life is not just made up of the immediate future and distant retirement for which you have planned with nest egg and retirement plans. You are sure to have other plans and dreams for your life. Would you like to build a house or provide for your children's education? Are you planning a career change or are you dreaming of a big trip? For all big and small goals you need the appropriate financial basis. And the right investment plans should be as different as these life plans can be. That is why growney offers you five different investment strategies that you can combine individually. It is best to set up a separate plan for each savings goal - this gives you the best overview and optimally adjusts your investment to the duration of the investment and the desired return. Of course, setting up a savings plan at growney is free of charge for you - the low fees only apply to the assets invested.
Your life, your goals, your wealth
Love, family, career - your 30s are a turbulent decade. Get more peace of mind by putting your money to work for you. With an individual investment strategy you provide for all goals - and save your energy for the other tasks that life has in store for you.
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