For many Aussies, their 30s is the decade when they can really hit their stride. Your 30s can also be a pivotal time financially, when you might begin to seek out your best investments.
The years between ages 30 and 39 often see people with a good start on their careers, confidence in their abilities, and a sure image of what they want from their futures. And while it can be a period when one can take exciting risks, there are some investments best made with the aim of stability.
Here are four investments I think Australians in their 30s would be wise to consider.
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The best investments for Aussies in their 30s
Financial security
Perhaps the most worthwhile investment one can make in their 30s is in their own security.
Indeed, there's not much point in boasting a substantial investment portfolio if you can't afford an unexpected bill.
For most people, financial security means having a nest egg large enough to support their lifestyle for a few months. That way, if their income stream suddenly dries up, they'll have the means to reroute without substantial suffering.
Financial security might also mean paying off high-interest debt.
Seeking financial security might also lead one to consider buying their own home, thereby increasing the security of their living situation.
ASX shares
Of course, as an avid stock market fan, I think investing in ASX shares is one of the best wealth-building opportunities available to Aussies in their 30s.
The market has historically always gone up. Thus, the earlier one begins investing in the ASX, the more likely they'll be rewarded in later years.
ASX shares can provide both capital gains and dividends. That means a strategic and consistent investor could realise a passive income from their stock portfolio. Or, they might simply sit back and watch their retirement savings grow over the years to come.
Not to mention, buying ASX shares doesn't demand the sort of upfront lump sum that other investments do – like property, for instance.
Insurance
Insurance isn't generally considered an investment, but the value it provides when it's needed can be priceless.
Just think about all the assets – small or large – you might own in your 30s. Now, think about how you could afford to replace them if disaster were to strike.
That's why I think insurance on one's most important assets – including home, car, and even health – is one of the best investments to make.
Themselves
Finally, I'd encourage Aussies in their 30s seeking a long-term investment opportunity to look inwards – they might find they are their best asset.
Your 30s, like any time in life, is the perfect time to invest in your family, friends, and passions. Ultimately, these are the things that bring us joy – and no amount of money can provide that.
Financially, however, Australians typically see their earnings from employment ramp up significantly between the ages of 35 and 44 and peaking between 45 and 54, according to Australian Bureau of Statistics (ABS) data.
Thus, your 30s might be the best time to invest in your career. That might mean shooting for your dream opportunity, polishing up your skill set, or adding to your resume.
