How to Save Money in Your 30s

Is it too late to save money in your 30s? As the great cliche always say, “It’s better late than never“. And that quote was personally applicable to me (and probably you too).

Surprised to actually be writing this kind of finance-related story. I was never the type to handle my finances wisely. I got my first job at 20, reached a 6-digit salary by 25, but ironically drowning in debt with zero savings. How come? It was the mentality of knowing I had a regular salary to look forward to every payday. A blanket of security. So I went YOLO and spent money on useless things without even saving or even investing.

I expected to have retirement courtesy of my company once I hit 50. But all came crashing down when unexpected circumstances resulted in me losing my job. Well, I sorta quit but that’s a different story.

But hey just like I said earlier. It’s never too late. I learned my lessons and here I am sharing them with you. 

How to Save Money in Your 30s

Save first spend later

Before, I used to prioritize what I need to spend first. Like my bills, clothing, food, etc. Even other necessities. Yes, they’re important, but what’s even more important is to take a chunk of money and put it away for savings or investment. For safekeeping first. Then, you can spend what’s remaining on expenses and miscellaneous. How much to put away you may ask? Well, that would depend on a lot of factors. How much you earn, your regular expenses, and such.  You can use a savings calculator to help. 

It doesn’t matter how you split up your funds. It can be 30/30/10 or 50/30/20 or whatever. What we’re trying to change here is our mentality. We have to condition our minds that saving > spending. 

Avoid unnecessary debt

Did you know that having debt affects your decision making? The more unnecessary debt you have. the poorer life choices you make. There is good debt and bad debt. Good debt is using your credit card to spend on your groceries and pay for your bills because you earn points or even avail discounts (this is just an example). Bad debt is using your credit card to pay for a bag you can’t really afford to pay for in cash, and is beyond your means. 

It takes tremendous discipline to own a credit card. I for one didn’t have one and is the best example for the one who had bad debt. It took me a few years with the help of my relatives to pay off my debt. 

Do I still have a credit card? No. I am not planning to have one, even if it’s for “good” because I do not trust myself yet. If you don’t have the discipline, don’t get a credit card.

Do I really need life insurance?

I was a non-believer. Who would ever trust insurance companies when their agents are annoying and pushy as hell. But auto-debiting life insurance immediately on a regular basis gives you a sense of comfort that your money is going somewhere useful. Life insurance or even health insurance is crucial, especially in emergencies. You never know what may happen, and you don’t want to use your savings account or deplete your investment in case any unfortunate scenarios happen like grave illness or worse, death. 

Diversification

Never put all your eggs in one basket! Inflation is crazy, so just putting all your money in the bank won’t do. Diverse your funds by placing them into a variety of investments depending on your risk appetite. 

It’s never too late to start saving

As of writing this article. I have active life insurance, a few stock investments, a time deposit, and an emergency fund. Most of all, I still don’t feel secure enough. There’s that helpful feeling of fear that allows me to think twice before splurging the money I have. I prioritize putting my income in saving and investing, before spending. Still hoping to triple, or even quadruple my money even at this late in the game. 

I hope my tips help you save money even if you’re in your 30s, 40s, 50s or even beyond! But you know what, the earlier the better, but it will never be too late 🙂