Are you in your 30s? We’ve put together some easy tips to help you prepare for the future. Here are things you should start and stop doing at this stage.

The dos:

  • Take advantage of ‘free money’. Does your employer match retirement contributions, offer a pension or an employee share ownership plan? If so, take full advantage of any free money, as you continue to grow your nest egg.
  • Turn to tax-advantaged plans. Saving money can be hard when you’re still starting out but the government has designed RRSPs, TFSAs and RESPs to help you save for all your family’s financial goals, while offering tax advantages. Each program works differently, but a financial advisor can help determine which plan (or combination of plans) can best suit your needs.
  • Invest for growth. With many years ahead of you, time is still on your side. Tilting your investments towards more growth-oriented investments, such as equities, can help grow your savings over time. With increased reward potential comes increased risk, so you’ll need to be prepared to tough out some volatility in the value of your portfolio to enjoy the potential rewards. Talk to your financial advisor about what risk you are comfortable with to find the right mix of investments for you.

The don’ts:

  • Become overwhelmed. This decade can be marked by major milestones such as marriage, buying a home, the birth of a child or starting a business. While these are exciting and memorable, they can also be a source of financial stress. Determining what’s the most important to you and mapping out a budget can help you breathe easier and alleviate anxiety.
  • Try to have it all right now. You don’t need to have reached all your goals yet. Many people in their thirties find themselves wanting to live the dream, but find it at odds with their paycheque. Living beyond your means can set you back for years. Delaying the ‘dream’ lifestyle may mean renting for a few additional years rather than buying a home to give you time to save for a larger down payment. It might also mean purchasing a fixer-upper and renovating it gradually to get the home you were searching for.
  • Overlook your insurance needs. Insurance is an important part of your financial future, and may help protect your property from your car to your home as well as your life. Although it might seem strange to consider about at this age, thinking about health and life insurance can help you in those unforeseen situations that may occur down the road.

Ready to get your finances on track for your future? Come in and speak to a Scotia advisor today