Investing During a Cost-of-Living Crisis: My Strategy to Stay on Course

How to Start Investing in Your 30s and Still Build Wealth

Listen, I won’t sugarcoat this — if you’re in your 30s and haven’t yet started investing, you’re not alone… but you’re also not doing your future self any favors. The good news? It’s not too late to build substantial wealth. In fact, with the right strategies, discipline, and mindset, your 30s can be a powerful launching pad for financial independence.

I’m Rachel Simmons, and I’m here to help you kick off your investing journey with no cringe-worthy jargon (okay, maybe a little), no shame, and lots of actionable advice. So let’s break it down. Deep breaths — your financial glow-up starts now.

Why Your 30s Are Actually Prime Time to Start Investing

You know that feeling when you show up to the party fashionably late, but still steal the show? That’s what starting to invest in your 30s can be like — if you come in with purpose and a plan.

Here’s why your 30s are the ideal time to begin:

• More stable income: You’ve probably advanced a bit in your career and, hopefully, your student loans are starting to fade into the background.
• You still have time on your side: Compound interest is your bestie — even starting now gives you decades to let your money grow.
• Clearer life goals: Whether it’s buying a home, taking a sabbatical, or retiring early, knowing your “why” makes your “how” sharper.

Step 1: Get Your Financial House in Order

Tame the Debt Beast

If high-interest debt (looking at you, credit card balances) is eating away at your budget, make this your first priority. While some debt (like mortgages or low-interest student loans) can be manageable, toxic debt will crush your investing power.

Action tip: Use a combo of the debt avalanche (paying off high-interest accounts first) and the snowball method (tackling the smallest balances for quick wins) to stay motivated and strategic.

Build Your Emergency Fund

No one wants to sell stocks in a downturn just to fix a leaky roof. That’s what your emergency fund is for — keep 3 to 6 months’ worth of expenses in a high-yield savings account.

Step 2: Understand the Basics of Investing

You Don’t Need a Finance Degree

Forget the Wall Street lingo for a sec — investing, at its core, is simply putting your money to work with the goal of growing it over time. Here are the main avenues you’ll want to get familiar with:

• Stocks: Ownership in individual companies. High potential, higher risk.
• Bonds: Loans to governments or corporations. Lower risk and lower returns.
• ETFs & Index Funds: Baskets of stocks or bonds. Great for diversification and lower fees.
• Retirement Accounts: 401(k)s, IRAs, and their Roth counterparts offer tax advantages that can seriously boost your gains.

Time Is Your Secret Weapon

The earlier you start, the more you leverage the magic of compound returns. That means you earn returns not just on your investments, but on your returns’ returns. It’s exponential growth — and it’s glorious.

Step 3: Open the Right Investment Accounts

Start with Your Retirement Plan

If your employer offers a 401(k) and matches contributions, do not walk — RUN to it. That’s free money. Aim to contribute at least up to the match. Over time, strive to hit the annual max, if you’re able ($23,000 in 2024 if you’re under 50).

Add a Roth IRA

The Roth IRA is a millennial and Gen Z favorite, and for good reason — you contribute after-tax money and your investments grow tax-free. In retirement, your withdrawals are tax-free too. Cue the confetti.

In 2024, you can contribute up to $6,500 (or $7,500 if you’re 50 or older), subject to income limits.

Step 4: Pick an Investment Strategy That Works for You

The Lazy Genius Method (aka Index Investing)

If picking stocks sounds overwhelming, don’t sweat it. You don’t need to outsmart the market — you can own the whole market with low-cost total stock market or S&P 500 index funds.

This hands-off style is my go-to recommendation for new investors. It’s low-risk (relatively), low-maintenance, and it works.

Target-Date Funds: Set It and Forget It

Imagine an investment that reallocates itself based on your expected retirement year. That’s what target-date funds do. Choose your retirement year, and the fund does the rest — more aggressive early on, more conservative as you approach retirement.

Step 5: Automate & Chill

Don’t trust your future to vibes alone. Automate your monthly contributions so you’re regularly investing, rain or shine. This method — called dollar-cost averaging — helps smooth out market bumps and build discipline.

Whether it’s $200 or $2,000 a month, consistency trumps perfection. Every. Single. Time.

Step 6: Protect What You’re Building

Get Insured Like a Pro

As your wealth grows, so should your protection. Consider:

• Health insurance: Non-negotiable.
• Disability insurance: Covers income loss if you can’t work. Under-discussed, but crucial.
• Life insurance: Especially important if someone financially depends on you.

Keep Learning (But Filter the Noise)

Stay curious, but don’t let analysis paralysis stop you. The internet is a treasure trove — just be wary of viral TikTok advice with no credentials.

Stick to content from credible sources, or better yet, browse our About Us page to see the finance nerds and numbers-lovers behind Financeone!

Step 7: Monitor and Adjust — But Don’t Obsess

You don’t need to check your portfolio daily (in fact, I’d advise against it). Revisit your investments quarterly or semiannually to:

1. Rebalance your asset allocation if needed
2. Increase contributions when you get a raise
3. Make sure your plan still aligns with your long-term goals

This isn’t a diet. It’s a long-term relationship with your money — and like any good relationship, it needs trust, occasional check-ins, and a little forgiveness when things go sideways.

You’re Not Behind — You’re Right on Time

Stop letting regret be your financial strategy. You’re in your 30s, poised perfectly between “I wish I had started younger” and “thank goodness I didn’t wait another decade.”

Starting now isn’t failure — it’s freedom. So take the leap, build your emergency fund, open that investment account, and start building wealth one dollar at a time. Your 60-year-old self will someday raise a glass to you — and maybe even buy the first round.

Questions or want to reach out? Visit our Contact Page — I’d love to hear from you.