175: 30s Wisdom: Life & Financial Lessons You Wish You Knew Sooner

Welcome to The Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.

Austin Wilson:

All right. Hey, hey, hey. Welcome back to The Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. I am Austin Wilson, Research Analyst at Hixon Zuercher Capital Management.

Josh Robb:

And I’m Josh Robb, Director of Wealth Management at Hixon Zuercher Capital Management. Austin, how can people help us with our podcast?

Austin Wilson:

Well, first of all, we would love it if you’d subscribe, if you’re not subscribed already. So hit that subscribe, plus follow, whatever button’s on your podcast player. Hit that right now so that you get new episodes each and every Thursday when we drop them. And if you’d like a little synopsis, summary of what we’re going to be talking about each week, go to our website and subscribe to our weekly newsletter, and you’ll get notified with those episode drops. So today, Josh.

Josh Robb:

Yep.

Austin Wilson:

You recently had a birthday.

Josh Robb:

I had a birthday.

Austin Wilson:

And you celebrated and had a good time, going to Jamaica.

Josh Robb:

We did.

Austin Wilson:

Bunch of friends. I mean, you actually have friends, so kudos to you.

Josh Robb:

Yep. Well, they were a lot of my wife’s friends.

Austin Wilson:

They’re paid friends.

Josh Robb:

They’re my wife’s friends.

Austin Wilson:

They were bribed, obviously, to go hang out with you for a handful of days. But we’re glad you’re back. Safe.

Josh Robb:

Yep.

Austin Wilson:

Celebrated a pretty big one. 4-0. Josh has just recently turned 40. So we thought, let’s make a couple episodes really talking about this pivotal point in your life, looking at your finances, and things you wish you knew in your 30s, is what we’re going to be talking about today. And then next week, we’re going to be talking about 40s.

Josh Robb:

Things to prepare.

 

[1:34] – Job Changes Within Your 30s

Austin Wilson:

Yep. So let’s start with things Josh wishes he knew when he was 30.

Josh Robb:

Yeah. Just thinking back 10 years ago, you’re going back a decade. 2013.

Austin Wilson:

2013.

Josh Robb:

Actually, that was the year I started here at Hixon Zuercher Capital Management. So I had made a job change.

Austin Wilson:

True.

Josh Robb:

30-year-old, switching to a career I was passionate about and it’s been great. But as I think back, okay, what do I wish I knew as a 30-year-old for that next decade that was coming? And then also, we’ll look at some of the things, from averages in our country, where do people stand at that point. So, that’s what drew all this.

Man, I tell you what, here’s some of the things. I’m just going to list them off. I made a list.

Austin Wilson:

All right.

Josh Robb:

As I was kind of reminiscing about that last time.

Austin Wilson:

The good old days?

Josh Robb:

Yeah. In your 30s, you experience life changes.

Austin Wilson:

Yeah.

Josh Robb:

So, job changes.

Austin Wilson:

Yep.

Josh Robb:

Doesn’t mean you quit or move, but you’re going to see movement in your career.

Austin Wilson:

Mm-hmm.

Josh Robb:

And really, your 20s, you’re exiting college, getting an entry level position somewhere, learning the ropes, finding out if you like what you’re doing.

Austin Wilson:

Right.

Josh Robb:

But that 30s, that’s the decade where you really settle in, I think, to finding what you like. You may still transition and change jobs down the road. I’m not saying as a 40-year-old you don’t. 30s, that decade, there is really where you fine tune what do I like to do, and then start looking for that career.

Austin Wilson:

What am I going to do for a long time?

Josh Robb:

Yes.

Austin Wilson:

Yeah.

 

[3:01] – The Decade of Having Kids & Seeing Them Age

Josh Robb:

Kids.

Austin Wilson:

Kids.

Josh Robb:

Yeah.

Austin Wilson:

You had a bunch of them in your 30s.

Josh Robb:

I did. Doubled the number of kids I have.

Austin Wilson:

Yeah.

Josh Robb:

Yeah. Kids show up.

Austin Wilson:

Yep.

Josh Robb:

Whether they’re your first, second, third, or fourth, somewhere in that range. But that’s when you start to experience that, and the kids start aging through that 10-year time period.

So you go from no kids potentially to kids, to kids that are heading into middle school-ish age, fourth, fifth.

Austin Wilson:

They’re smart.

Josh Robb:

Yeah. Fourth, fifth grade. And we’ll talk about that. And some of the things to plan with that.

Austin Wilson:

Mm-hmm.

 

[3:32] – New Costs Are Coming In

Josh Robb:

I mentioned the job change, but in general, your income, you see a pretty big change in your income going out of your 20s and then through your 30s. And again, you’re settling into your career, promotions, you get experience at that point. And so, some of these you got to watch. I get more income, but there’s a lot of expenses that show up too.

Austin Wilson:

Mm-hmm.

Josh Robb:

And that’s the next thing is there’s new costs.

Austin Wilson:

There are-

Josh Robb:

A lot of new costs. Kids, I already mentioned that, kids are not cheap. Kids cost money.

Austin Wilson:

They cost money to have them. They cost money to feed them. They cost money to keep them.

Josh Robb:

Yep. Keep them happy.

Austin Wilson:

That’s true.

Josh Robb:

Insurance. So again, in your 20s, there’s not a lot to insure.

Austin Wilson:

No.

Josh Robb:

Yep. You have a car, maybe you get a first home purchase. But 30s is really where you see a lot more home purchases showing up.

Austin Wilson:

You know what’s more important in your 30s? Health insurance, than it was in your 20s.

Josh Robb:

Mm-hmm.

Austin Wilson:

Because you know what, you’re probably doing okay.

Josh Robb:

About 26, you could be at your parents’.

Austin Wilson:

Yeah. Exactly. But you’re also probably a little bit more rubbery, flexible, things don’t phase you as much in your 20s.

Josh Robb:

Yep.

Austin Wilson:

And then you hit that 30 wall, and then it’s like, “Oh.”

Josh Robb:

Yep.

Austin Wilson:

“I need to go to the doctor. My back hurts.”

Josh Robb:

Mm-hmm. Yep. And then on top of that, the other piece of the insurance is life insurance.

Austin Wilson:

Mm-hmm.

Josh Robb:

Again, until you have responsibilities, so marriage, kids, those things, life insurance isn’t as essential. But once there are people depending on you, that type of insurance shows up.

So you have life insurance, disability insurance, all the things that, when you need somebody else to rely on your income, you have to protect it.

And then, umbrella insurance. If there’s something that happens and your sued, or there’s a big payout that’s needed above and beyond what your car insurance or home insurance would cover, umbrella picks up that. And so, as your net worth grows, that concept of having some sort of protection piece shows up as well.

So, 30s is when you at least start thinking about some of that stuff.

Austin Wilson:

Yep.

 

[5:22] – Maintenance in Your 30s

Josh Robb:

And then you said maintenance, I wrote this down. Maintenance. There’s more costs to it.

Austin Wilson:

There’s more costs.

Josh Robb:

And your body is part of it.

Austin Wilson:

Yeah.

Josh Robb:

In your 20s, it took a lot to knock you down.

Austin Wilson:

Oh, yeah.

Josh Robb:

And keep you.

Austin Wilson:

Well, you know-

Josh Robb:

Or you just made dumb decisions.

Austin Wilson:

You know what you could eat? Whatever you wanted. And it’s cheap food too.

Josh Robb:

Yeah.

Austin Wilson:

And then when you start getting in your 30s, you got to start eating right and that’s more expensive.

Josh Robb:

Yeah.

Austin Wilson:

That’s one thing. But also, maintenance goes beyond you.

Josh Robb:

Yes.

Austin Wilson:

Maintenance goes to things like, hey, you bought that first house. Houses are freaking expensive to maintain.

Josh Robb:

Houses are expensive.

Austin Wilson:

Not just buying them.

Josh Robb:

Yep.

Austin Wilson:

Always something needed there. Your vehicles.

Josh Robb:

Mm-hmm.

Austin Wilson:

Maybe you were okay with not fixing that rattling, whatever, when you’re in your 20s. But in your 30s, that’s probably going to drive you crazy and you’re going to need to take care of it.

Josh Robb:

Yep. Yep.

Austin Wilson:

Especially if you have more than one.

Josh Robb:

Yeah. You see a lot more people purchasing it, their first home, in the 30s. And so you’re right, there’s just a lot of cost and upkeep. There’s a lot there.

 

[6:16] – The Time of Family & Friend Changes

Josh Robb:

Here’s one that I learned, family and friends. So in your 20s, coming out of college or being in college and then starting your career, the longer you go out, the more people get established in what they’re going to do and where they’re going to be.

So you see friends move around, leave. You may move or leave. But then, as you add kids and add career and jobs, friends and family is important.

Austin Wilson:

It is.

Josh Robb:

To keep your sanity. It’s right there. But the overarching is just there’s a lot of life changes that happen, not just to you, but to the people around you.

Austin Wilson:

Oh, yeah.

Josh Robb:

So, 30s is a lot in transition.

Austin Wilson:

Yep.

Josh Robb:

That’s really the word, transition is where it’s at.

Austin Wilson:

One thing that we’ve found is that the circle gets smaller.

Josh Robb:

Mm-hmm.

Austin Wilson:

It is, when you’re in your 20s, I feel like you can be friends with everyone and do everything all the time. And it’s no big deal, because you have time and availability to do that. Maybe you don’t have kids, maybe you have less responsibilities, whatever that is.

As you get into your 30s, it’s like, hm, well, there’s like three or four people that I’m really tight with because I have to focus on my kids. I have to focus on things I need to get done. So I only have a little bit of bandwidth to actually hang out and keep up with people. So your friends kind of get shook out.

Josh Robb:

Yes.

Austin Wilson:

You can be friends with a lot of people, but you can only be really close with a handful of people or whatever.

Josh Robb:

And they tend to be in your same life stage too.

Austin Wilson:

Exactly.

Josh Robb:

Right?

Austin Wilson:

Yeah.

Josh Robb:

Your single friends, when you’re married, it’s not as fun for everybody to hang out.

Austin Wilson:

Yeah.

Josh Robb:

It’s just as weird. And then, you have kids and you have friends who don’t.

Austin Wilson:

Yep.

Josh Robb:

Again, for them it’s like, “Oh, man. This crying baby all the time, while we hanging out.”

Austin Wilson:

Yep.

Josh Robb:

Can’t play Halo or whatever. So, you’re right. The family and friends, there’s transition through there. And it does narrow for sure.

Austin Wilson:

And I feel like your friends become the people that you spend the most time with.

Josh Robb:

Mm-hmm.

Austin Wilson:

And that sometimes is by force, and sometimes is by choice. But you really become, hopefully if you’re in a great work environment like we are, some of your best friends are the people you spend a lot of time with at work.

Josh Robb:

Yeah.

Austin Wilson:

And then, maybe you’ve got a lot of friends you see at church. And you see those very frequently and those are the people you become close with. And then outside of that, that’s where it’s just really gets really hard, because you have to be very intentional after that.

Josh Robb:

Yeah.

Austin Wilson:

Family and friends, very important. And changing.

 

[8:25] – The Value of Time is Growing Stronger

Josh Robb:

The last one, and this is probably later 30s, but time means more.

Austin Wilson:

Mm-hmm.

Josh Robb:

In your 20s, time is really a commodity you don’t put much value on. You have a lot of it. And the future you’re looking forward to is bigger than what you’re currently experiencing.

Austin Wilson:

Yep.

Josh Robb:

You’re always looking forward. But at some point, I tried, I couldn’t really pinpoint what that was in my 30s, but at some point in my 30s, you look around and you’re like, “Man, I got to really value this.”

Austin Wilson:

Yep.

Josh Robb:

It changes. So there’s more commitments, there’s more time usage. You don’t have as much flexibility or free time. But I think, two is, I’m 40 now. As you look at your kids and they’re aging, time with them is getting shorter and shorter. Just time becomes more valuable.

Austin Wilson:

One thing that I’ve found is that you start seeing time as a commodity, like you said. You can put a value on time.

Josh Robb:

Yes.

Austin Wilson:

Time is money. And you get more and more willing to spend a little bit of extra money to have more time.

Josh Robb:

Yes.

Austin Wilson:

So whether that be a convenience thing, getting things delivered instead of going and getting them, or vice versa. Hiring someone to do something instead of you doing it yourself.

Josh Robb:

Changing your oil.

Austin Wilson:

Yeah. This is something you helped me with.

Josh Robb:

In your 20s.

Austin Wilson:

It’s no problem.

Josh Robb:

Change your oil.

Austin Wilson:

Now, it’s twice as much money probably to have someone else do it. But that’s money well spent.

Josh Robb:

Yeah.

Austin Wilson:

Because you’re not spending a half an hour climbing under a car, and you can have your family time.

Josh Robb:

That’s right.

Austin Wilson:

So yes, things like that I think are definitely worth considering.

Now you’re in your 30s, and that’s where I’m at, Josh.

Josh Robb:

Yes.

 

[9:54] – Dad Joke of the Week

Austin Wilson:

But I have a dad joke.

Josh Robb:

I’m ready.

Austin Wilson:

Waiting for you.

Josh Robb:

I’m ready.

Austin Wilson:

It’s more of a thought.

Josh Robb:

Okay.

Austin Wilson:

So this is really where you’re at right now in life. I’m not calling you fat.

Josh Robb:

Go for it.

Austin Wilson:

But it’s saying, a doctor says to his patient, “You have the body of a 20-year-old, but you should return it. You’re stretching it all out of shape.”

Josh Robb:

I like it.

Austin Wilson:

It’s so funny.

Josh Robb:

I like it.

Austin Wilson:

And your metabolism.

Josh Robb:

That’s how I feel sometimes.

Austin Wilson:

I feel like it hits-

Josh Robb:

Oh, man.

Austin Wilson:

It hits a wall at 30, if not before. But for me, it was 30 on the dot.

Josh Robb:

Yeah.

Austin Wilson:

Cliff, cliff.

Josh Robb:

You definitely have to work harder to maintain where you’re at.

Austin Wilson:

Yep. A lot more intentional. So, you know, Josh.

Josh Robb:

Those are some thoughts, just about-

Austin Wilson:

Those are thoughts.

Josh Robb:

… that decade.

Austin Wilson:

But we got to turn this into a finance podcast.

 

[10:36] – Are You Financially On-Track in Your 30s?

Josh Robb:

Yes. So the first question, this is a question a lot of people ask is, am I on track? And so-

Austin Wilson:

Can I answer that for you?

Josh Robb:

Yes.

Austin Wilson:

It depends.

Josh Robb:

It depends. You’re right. It’s hard to answer that question based on goals and spending and all that stuff. But Fidelity, who’s a very large custodian, you see all the commercials, they had kind of put out a rule of thumb for different age groups.

And so, this is how it works is, they say, by age 30, so this would be entering your 30s, you should have the equivalent of one times your annual salary saved.

So if you’re earning $55,000 of salary, you should have saved, by your 30th birthday, $55,000 or whatever your salary is.

Austin Wilson:

Now that’s in investments, probably, or cash.

Josh Robb:

So the way this works is it counts retirement. It counts Roth IRAs, IRAs. It counts taxable accounts. I don’t think, at least in my own mind, that counts emergency fund. I think they’re looking at savings for retirement, right?

Austin Wilson:

Yep. Yep.

Josh Robb:

So anything that’s retirement-oriented, this is where this fall in.

So then, we go to the other end. So that was entering your 30s. Exiting your 30s, so getting to age 40, you should have three times your salary saved.

Austin Wilson:

Mm-hmm.

Josh Robb:

So you go from one to three times, during that 10-year period.

Austin Wilson:

So in that same number wise, if you’re making $55,000, hypothetically you don’t get any raises, you probably will, that would be $165,000.

Josh Robb:

Yeah.

Austin Wilson:

Right.

Josh Robb:

Mm-hmm.

Austin Wilson:

Gotcha.

Josh Robb:

Yep. And halfway through, at 35, is two times your salary. Just kind of works its way up.

Austin Wilson:

Mm-hmm.

Josh Robb:

So the goal is, though, and this is where their math is, you should have 10 times your salary when you retire at age 67.

Austin Wilson:

Yeah.

Josh Robb:

And that’s kind of what is working towards. And at that point, with a 4% withdrawal idea, then you’re able to sustain it. So that’s what Fidelity says you should do.

Rule of thumb, again, varies for everybody. Fidelity is actually based on looking at some of these other ones. They have a heavier savings upfront, and then slow it down over time. Which again, when you look at time of investing and compounding, that’s actually a better concept.

Austin Wilson:

Mm-hmm.

Josh Robb:

So they have you saving more sooner then slowing it down. But the goal will be, again, to get 10 times your salary when you retire.

Now, if you were able to do that and you had one times your salary at age 30, you are ahead. The Federal Reserve, they do a survey in 2019, the last time, I could get the data, of consumer finances, the median retirement account balance for young people, 35 and under, so 30 to 35, so that beginning part, $13,000.

Austin Wilson:

Holy moly.

Josh Robb:

I’m going to guarantee you-

Austin Wilson:

That’s not good.

Josh Robb:

… the average salary was not $13,000.

Austin Wilson:

No.

Josh Robb:

So they’re not saving one times their salary.

Austin Wilson:

No.

Josh Robb:

All right? Now, when you look at the median net worth, so that takes all their assets minus all their liabilities, it was 14,000.

Austin Wilson:

The same.

Josh Robb:

So a thousand dollars of net worth somewhere hanging out outside their retirement cuts. But that just tells you how far behind people are for the savings target, what Fidelity’s using as that benchmark.

Austin Wilson:

Yep.

Josh Robb:

And now that’s the median. And so, there could be some outliers that pull that different directions.

Austin Wilson:

Mm-hmm.

Josh Robb:

But, in general, that is telling us that most 30-year-olds are behind, and they’re going to have to play catch.

Austin Wilson:

Right.

Josh Robb:

I just told you, in your 30s, you experience a lot more costs and makes it harder.

Austin Wilson:

And again, you have to make catch up now.

Josh Robb:

Yeah. It makes it harder to do that.

Austin Wilson:

Yeah.

Josh Robb:

In fact, we see that trend continue.

Austin Wilson:

Exactly.

Josh Robb:

People in their 40s and 50s, 50s being your peak earning years, by the way, you’re still playing catch up.

Austin Wilson:

And it’s like everyone’s behind all the way.

Josh Robb:

Oh, yeah. The whole way through.

Austin Wilson:

Because most people assume, A, I’m going to live on social security and it’s going to be fine.

Josh Robb:

Yep.

Austin Wilson:

Which, yeah, you’re not always going to get an 8% cost of living increase every year. And that’s never meant to be-

Josh Robb:

Yep.

Austin Wilson:

… all you live on. But people think it is.

Josh Robb:

Yep.

Austin Wilson:

So I feel like people just under prepare for the whole time. And they don’t really know what it costs to retire.

Josh Robb:

Yep. Now part of that assets minus liability, that net worth, 40% of people younger than 35 have student loan debt.

Austin Wilson:

Right.

Josh Robb:

With a median debt balance of $22,000. So there’s actually more assets there somewhere, but they’re being offset by that liability.

Austin Wilson:

Right.

Josh Robb:

And then, nearly half of people surveyed, same thing in 2019, carried credit card debt of average or median balance of $1,900.

Austin Wilson:

And that was in 2019, probably?

Josh Robb:

Yeah.

Austin Wilson:

So I would imagine, COVID changed what that was. Credit card balances actually looked pretty good, because everyone was flushed with cash during 2020. During 2021, 2022, credit card balances start going up. And here in 2023, actually, things are looking worse.

 

[15:01] – 3 Things a 30-Year-Old Should Do Right Now?

Josh Robb:

Yeah. Catching back up to where they were.

Austin Wilson:

Yep. Yep.

Josh Robb:

So I thought, okay, if I was talking to a 30-year-old, and I’m talking to a 30-ish year old right here across from me.

Austin Wilson:

Yeah. 30 something.

Josh Robb:

30 something. What are things you need to do?

Austin Wilson:

Yeah.

Josh Robb:

So I got some key takeaways for somebody in their 30s.

Austin Wilson:

Bring it.

Josh Robb:

So here it is. The first one, get rid of debt.

Austin Wilson:

Get rid of it.

Josh Robb:

Yes. So we just mentioned the average student loan debt of people 30 to 35 is $22,000, right? Yes. $22,000. So, focus on that. Look at that as a guaranteed rate of return. So, if you’re paying 8% on your student loan debt, and you pay that off-

Austin Wilson:

A dollar you put towards it.

Josh Robb:

… you’re saving 8%, or gaining, earning 8% on that investment of dollars you’re putting away. So student loan debt, knock that out.

Credit card debt, highest interest rate you’re going to find on just about anything.

Austin Wilson:

That should be first.

Josh Robb:

That should be first.

Austin Wilson:

Yeah.

Josh Robb:

Knock that out. Do not carry a balance on that.

Car loans, if you have anything coming out. Because again, in your 20s, you don’t have a lot of cash. You don’t have a lot of net worth.

Austin Wilson:

Right.

Josh Robb:

You don’t have a lot of income, really. You probably got some debt.

Austin Wilson:

Yep.

Josh Robb:

Look at the average person. So knock all that debt out.

Notice I didn’t say home debt, because there’s an asset tied to that that usually appreciates overtime. So great to pay that off. But 30s, you may be making a dent in it, but not a lot of people pay off their home loans in their 30s.

But all other debt, get rid of it.

Austin Wilson:

And there’s a couple ways to do that. We’ve talked about many times on this show.

Josh Robb:

Yep.

Austin Wilson:

Is whether that be the avalanche method or the snowball method. We’ve got a specific episode where we talk about this.

Josh Robb:

You can only talk about it in the winter.

Austin Wilson:

And we’re exiting that right now.

Josh Robb:

Yeah.

Austin Wilson:

So we’re just going to say, we’re going to link that episode to the show notes here.

Josh Robb:

Yes.

Austin Wilson:

And you can check that out. But there are multiple ways to get rid of that. Couple different approaches. So, that’s number one. Get rid of debt. Good idea.

Josh Robb:

Yep. So that frees up cash flow.

Austin Wilson:

Frees up cash flow.

Josh Robb:

Got extra cash because I’m not paying those debts. Start saving for large, one-time expenses. In your 30s-

Austin Wilson:

Yep.

Josh Robb:

… there’s a chance you get married.

Austin Wilson:

Mail-order brides are expensive.

Josh Robb:

Yeah. But if you’re not getting married, there’s a good chance you’re going to be attending weddings.

Austin Wilson:

Or in weddings.

Josh Robb:

Yeah.

Austin Wilson:

That’s expensive.

Josh Robb:

Yeah, not cheap. So, start saving for those things that are going to happen. A home purchase.

Austin Wilson:

That’s very-

Josh Robb:

Your down payment. So make sure you’re saving for that.

New car. By the time you’re in your 30s, your car you bought, that was probably a junker in your 20s, is probably on its last leg. You got to get a new one for safety. Some kind of car showing up.

Austin Wilson:

Pro tip.

Josh Robb:

Yes.

Austin Wilson:

Don’t buy a new car if you don’t have to.

Josh Robb:

Because it depreciates.

Austin Wilson:

Depreciation, right away. You can buy a couple year old one.

Josh Robb:

Yep.

Austin Wilson:

You knock off a huge chunk of depreciation. Ideally paying cash for it, because interest rates on a depreciating asset are not good.

Josh Robb:

Nope. College costs. So we talk about paying off your student debt.

Austin Wilson:

Now we’re planning ahead.

Josh Robb:

But guess what? Kids are showing up. So start thinking for college.

Austin Wilson:

Yeah.

Josh Robb:

College is not cheap.

Austin Wilson:

No.

Josh Robb:

And if you are planning on helping your kids, which there’s all different philosophies on what you do with that.

Austin Wilson:

Yep.

Josh Robb:

Start saving early, because like anything else, the longer you wait, the more you’re going to have to save.

And then, speaking of savings, start saving or-

Austin Wilson:

Or increase your savings.

Josh Robb:

… increase your savings.

Austin Wilson:

Absolutely.

Josh Robb:

Because again, for the average, the median, you’re way behind. We got to play catch up. And so get a plan. 401(k)s, your company retirement plans, 403(b)s, wherever you’re working, they probably have a match. Free money, helps you increase your savings rate without you having to put anything more in.

Austin Wilson:

We typically recommend, at least, just go get your match.

Josh Robb:

Yes.

Austin Wilson:

We can do a lot of things afterwards, but get your match.

Josh Robb:

It’s free money that you leave on the table, if you don’t do that.

Austin Wilson:

My dad always told me that if you do not get your 401(k) match, you are making three, 5% less than your coworker.

Josh Robb:

Yep.

Austin Wilson:

For the same work.

Josh Robb:

Yep.

Austin Wilson:

So, go get your match.

Josh Robb:

Yes. And then look through Roth IRAs, or depending on your job and where you’re at income-wise, you may still be eligible to put money in there.

Austin Wilson:

Mm-hmm.

Josh Robb:

In your 30s, so max that out if you can as well. But start saving. So we got two savings things I just talked about, short term, one-time expenses, and then long-term retirement.

In your 30s, when I was a 30-year-old thinking of retiring at, they use 67 as a full term retirement age, that’s 37 years from that point.

Austin Wilson:

Right.

Josh Robb:

That’s a long time ahead. It’s hard to think about it, but the dollars you can save in your 30s will help you get closer to that goal, because they have more time to grow.

Austin Wilson:

Yes.

Josh Robb:

And then, the last one is monitor your spending. And this is very important. And so, as you’re exiting your 20s and going into your 30s, you will get some promotions, you may see a job change, those type of things, where your salary’s going to be moving up.

If you get married, you may go from a single income household to a double income household. Those are the things where, all of a sudden, boy, look at all this cash. If you let all that go into your budget and start spending it, that also makes it a lot harder for retirement, because now your lifestyle, your living expenses are up higher.

Austin Wilson:

Right.

Josh Robb:

And so, just be very mindful of your spending, and say, “Okay, what do we need to do now to keep us growing at a pace that’s reasonable, and gives us that flexibility of some extra cash?”

Austin Wilson:

Well, you know one way to do that, and we’ve talked about this before too. It’s one of our favorite rules.

Josh Robb:

Yes.

Austin Wilson:

It’s called the 50/50 rule.

Josh Robb:

Yep.

Austin Wilson:

So as you’re in your 30s, you’re probably going to be getting, hopefully, some raises every year or so. And say, you get a 4% raise, wonderful. That traditionally would beat inflation.

Josh Robb:

Great.

Austin Wilson:

You should take half of that and have some fun with it.

Josh Robb:

Yeah.

Austin Wilson:

Let your-

Josh Robb:

Increase it.

Austin Wilson:

… budget increase a couple percent. Take half of that, another couple percent, and just increase your savings.

Josh Robb:

Yep.

Austin Wilson:

What this does is it helps your cost of living not to creep up as fast as your income creeps up, and juices your savings at the same time, so you’re doubly prepared for retirement.

Josh Robb:

Yep. And then, as you do pay off debt and do those things, that money that frees up, do something with it. Don’t just let it sink into your budget and disappear at different places. So, be mindful of your spending. Get rid of debt and save for one-time expenses and for retirement. Those are your 30s. If I was told that, as a 29-year-old heading in, it was like, “Hey, these things you need to do,” it would be very helpful.

Austin Wilson:

Yeah.

Josh Robb:

And so, the key is flexibility. Because in your 30s, things in your life will change.

Austin Wilson:

Yes.

Josh Robb:

For the better, most of them.

Austin Wilson:

Mm-hmm.

Josh Robb:

But there’ll be ups and downs. Adjust your plan accordingly, but have a plan and stick with that plan.

Your goals may adjust, your timeframe may adjust, all those things. But you need to know the why to keep you sticking with your plan. All right?

Austin Wilson:

And those are tips from my favorite 40-year-old.

Josh Robb:

That’s right.

Austin Wilson:

For the 30-something year old in me.

Josh Robb:

There you go.

Austin Wilson:

But thank you for sharing those, Josh. Please stay tuned again next week, where we’re going to be looking at things you need to be looking at in your 40s, looking ahead for the next decade that Josh is now in.

And thank you, Josh, for preparing this and thank you for listening.

Josh Robb:

Yep.

Austin Wilson:

Please always remember, if you have any thoughts or questions about your financial situation, you can visit our website at theinvesteddads.com, and check the Invest With Us tab. You can set up a call and we’ll be able to see, hey, can we help you in any way? We would love to be able to chat with you, and maybe we’re a good fit for each other in that way.

And always remember, maybe you got someone in your 30s in your life, and you want to send this episode to them because it could help them.

Josh Robb:

Yep.

Austin Wilson:

Share this episode with friends and family.

Josh Robb:

Or late 20s, getting them ready.

Austin Wilson:

Ooh, getting ready for the 30s. That’s a great idea.

And as a reminder, we’d love it if you to describe or leave us a review on Apple Podcast or Spotify. So until next week, have a good one.

Josh Robb:

Talk to you later.

Austin Wilson:

Bye.

 

Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review. Click subscribe, and don’t miss the next episode.

Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin or any podcast guest are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast.

There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.