After a decade of experimenting, failing, learning from those failures, and "figuring things out," you might find yourself in a more secure financial position once you hit your 30s.
What do you do with excess money when you're no longer living paycheck to paycheck? And how do you prepare for big expenses you're bound to face in your 30s?
We spoke to Michael Solari, a certified financial planner at Solari Financial Planning, about the smartest things 30-somethings can do with their money to set themselves up for a prosperous future.
Here are eight smart places to start:
SEE ALSO: The 11 worst money mistakes to make in your 30s
1. Increase your 401(k) contributions.
"In your 30s, the most important thing that you have is time, and the more money you can save now is going to pay huge dividends down the road," says Solari.
You should already be contributing towards your employer's 401(k) retirement account, but if you get a pay raise, increase that contribution, Solari says.
Also, get in the habit of upping your contribution at the end of each year, even if it's just 0.5%, he advises. Check online to see if you can set up "auto-increase," which will automatically increase your contributions every year.
2. Make a contribution to a Roth IRA.
If you're maxing out your 401(k) plan, the next step is to put money towards a Roth IRA, a retirement savings vehicle that offers tax benefits and is particularly well-suited to younger people who earn less than the income cap ($116,000 a year or less for individuals; $183,000 or less for married couples filing jointly).
Contributions to this type of fund are taxed when they're made, so you can withdraw the contributions and earnings tax-free once you reach age 59 1/2.
Solari recommends directing your tax refund, bonuses, or any other extra money to a Roth IRA.
3. Contribute to a dependent care flexible spending account.
This applies to those with younger children looking to save on child care. Typically, larger companies will offer a slew of benefits, one of them being dependent care flexible spending accounts (also known as FSAs) into which you can put pre-tax money. In some cases, you'll receive a debit card from the company to use towards services such as daycare and summer camp. If you're paying a nanny or babysitter, you can pay them with cash and then apply for reimbursement from the FSA.
"If you have children in daycare and your company offers a flexible spending account, contribute to it," Solari says. "The tax deduction will give you a 15 to 30% discount on your daycare. It's a great way to save money."
Check with your human resources department to see if you're offered this benefit.
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