How are your 30s financially different than your late 20s?

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notmyhand
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How are your 30s financially different than your late 20s?

Post by notmyhand » Sun Jun 09, 2019 9:00 am

I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!

Flyer24
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Re: How are your 30s financially different than your late 20s?

Post by Flyer24 » Sun Jun 09, 2019 9:14 am

Everything gets more expensive. Ha. Kids become more active (sports, camps, clothes, etc). You really can’t plan for everything. Things just happen. Sounds like you are on the right track. Just keep working to increase your income, budget, and cut unnecessary expenses.

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AerialWombat
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Re: How are your 30s financially different than your late 20s?

Post by AerialWombat » Sun Jun 09, 2019 9:25 am

Your 30’s could bring things you don’t want to think about, but should. What will you do if a parent needs placement in memory care? What would happen if you got divorced? What if there’s another 2008?

By 30, I was divorced, in chapter 7 bankruptcy, and homeless, during the height of the Great Recession. Doo-doo uccurs.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

HomeStretch
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Re: How are your 30s financially different than your late 20s?

Post by HomeStretch » Sun Jun 09, 2019 9:31 am

You are in good shape. Review your life insurance coverage. If you need more coverage, if your policy is for whole/universal life or if your coverage is solely through your employer, now is the time to secure your own term life policy. Life insurance gets more expensive as you get older and possibly unobtainable if medical conditions develop.

mbasherp
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Re: How are your 30s financially different than your late 20s?

Post by mbasherp » Sun Jun 09, 2019 9:34 am

Everyone is different. I only got my life in order by the end of my 20s. The early 30s were a time of huge progress; letting the efficiency I had added to my life do its good work. Big surprises will always occur. What I’ve noticed it that they are more and more manageable. The bar for what constitutes a major emergency is much higher than it used to be. At a certain point there’s only so much tweaking you can do, you just have to let things ride and trust you’ve done the best you can.

A key I keep in mind is that the more you save and invest now, the less you’ll have to later. Buy your future self some breathing room!

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Re: How are your 30s financially different than your late 20s?

Post by junior » Sun Jun 09, 2019 9:40 am

My personal medical expenses did not increase dramatically in my 30s. Of course results may vary by person.

BV3273
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Re: How are your 30s financially different than your late 20s?

Post by BV3273 » Sun Jun 09, 2019 9:43 am

I hate to turn this into a: “If I only knew then what I know now” post. So I’ll do my best not to.

A little bit of a bump in healthcare spending since my kids got sick a bunch of times. Definitely glad I didn’t go the HDHP at work. I would have paid even more out of pocket than I have this year.

Haven’t seen an increase in childcare costs which I’m thankful for. After my son finished Pre-K next year I’ll most likely be on the hook for private school.

I’m thinking about upsizing but the housing market is so nuts where I live that $1 million will only get you a fixer upper. Not worth the move IMHO.

I received my MBA at the age of 32. I went part time and worked full-time, had a small e-commerce type business, and worked a side hustle on Saturdays during the summer. I only had one child at the time and now I have two. There was no way I’d be able to juggle all this with two kids so I’m happy I completed my classes prior to my second child coming along. My main reason for going was I was bored in my primary job and they were willing to pay for it. I hoped it would open a management job there but it didn’t so I moved on after completing my degree.

My wife almost lost her job due to the business letting some licenses lapse. We were definitely on edge there for awhile but as someone else stated doo doo happens and I was ready to do whatever necessary to make sure we were ok.

I am definitely thinking more about retirement and college savings than I did in my 20s. That along with paying off all and any debt including the mortgage are a huge goal of mine before I turn 40. I have about 6.5 years to reach that goal and I think it is definitely doable. I just need to keep my head down and grind out.

Besides that I am going to start spending more time on myself. Personal development and physical fitness. I think at this stage of the game your realize that no one is going to take care of you except yourself. You need to make time for yourself and say no sometimes. Use your vacation time. Work life balance is key to a happy life at home and at work. Again, MAKE TIME FOR YOURSELF.

playtothebeat
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Re: How are your 30s financially different than your late 20s?

Post by playtothebeat » Sun Jun 09, 2019 10:41 am

BV3273 wrote:
Sun Jun 09, 2019 9:43 am

Besides that I am going to start spending more time on myself. Personal development and physical fitness. I think at this stage of the game your realize that no one is going to take care of you except yourself. You need to make time for yourself and say no sometimes. Use your vacation time. Work life balance is key to a happy life at home and at work. Again, MAKE TIME FOR YOURSELF.
I want to echo this more than anything else. I’m 33 with a wonderful wife and an awesome son, but this is very important to note. I see a lot of coworkers in their 30s who simply do not have or make time for themselves, and it shows. They have have multiple kids which keeps them very busy, so it’s understandable and I certainly can’t relate since I only have 1. But do anything you can to have some YOU time, whatever that means to you - to me, that means playing hockey or soccer, with an occasional round of golf (usually through work) - to you it might mean going to grab drinks with your buddies (social health is also important!). I am fortunate that my wife is very supportive of all my activities and respects my desire to have time to myself, and I think it sends a good message to our son who knows that health is important and is himself very active with sports so far

quantAndHold
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Re: How are your 30s financially different than your late 20s?

Post by quantAndHold » Sun Jun 09, 2019 11:06 am

The biggest change for most people in their 30’s is that they start thinking about the future. Their own mortality, financial planning, etc. For most people, not that much actually changes financially, especially if they’re already married and have kids, except that they become more interested in planning for the future.

The real changes start happening about mid 40’s. Parents start needing help, kids go to college, often at precisely the time when we realize that we won’t keep getting raises at work, and when we realize that we might want to retire at some point. So there becomes a lot of conflicting demands for our money and time.

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Re: How are your 30s financially different than your late 20s?

Post by livesoft » Sun Jun 09, 2019 11:27 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
No.

2. Did you find yourself spending more on your children as they got older?
No, but I may be an outlier because I am cheap. Two things: Didn't have kids until late 30s to start with and daycare costs go away when they enter public school.
3. If you upsized in house in your 30s, what led you to do so?
Rented in my 30's and didn't buy a home until late 30's.
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
No. Got advanced degree in my early 20s.
5. What financial surprises came about in your 30s?
Switched jobs, moved to LCOL area, and made more money.
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ClevrChico
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Re: How are your 30s financially different than your late 20s?

Post by ClevrChico » Sun Jun 09, 2019 11:35 am

1. Did you find your medical spending increased dramatically in your 30s?

Mine decreased. My 20's were fixing what was neglected before. Mainly dental. 30's also meant better career with better insurance too.

2. Did you find yourself spending more on your children as they got older?

The daycare phase is very expensive. Then you get a reprieve for a while. And then it ramps up for cars/college.

3. If you upsized in house in your 30s, what led you to do so?

No. We paid off our modest house in our 30's and have resisted up-sizing so far.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?

No. Little reward to do so in tech and no time with kids.

5. What financial surprises came about in your 30s?

The high cost of renovating a modest house. :-) But, we're still in the black if we sold, given the current crazy real estate market.
Last edited by ClevrChico on Sun Jun 09, 2019 11:37 am, edited 1 time in total.

FourWallsofFIRE
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Re: How are your 30s financially different than your late 20s?

Post by FourWallsofFIRE » Sun Jun 09, 2019 11:35 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am

1. Did you find your medical spending increased dramatically in your 30s?
Nope

2. Did you find yourself spending more on your children as they got older?
My son is 1 years old, but not yet!

3. If you upsized in house in your 30s, what led you to do so?
We haven't yet, but our soon to be growing family has led us to consider upsizing. However, I'd like to resist as we have such a low mortgage payment and we can make our current home work fine with one more child.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
No, but this may happen in my late 30s when we "retire". I'm in the military and the housing allowance that comes with the GI Bill may convince me to go for my graduate degree.

5. What financial surprises came about in your 30s?
No real surprises, but will be making more money as I look to transition out of the military to a contractor position. Should double my income.

Matt | | | -It doesn't matter how much money you make, it matters how much you save.

runner3081
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Re: How are your 30s financially different than your late 20s?

Post by runner3081 » Sun Jun 09, 2019 11:39 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
Roughly the same, a few hundred extra a year for "sick child" visits, but nothing too major, yet.
2. Did you find yourself spending more on your children as they got older?
N/A - Had child in early 30's
3. If you upsized in house in your 30s, what led you to do so?
We did, but not really on purpose. Moved from HCOL to MCOL area. Ended up with going with a 1,900 square foot house from 1,300 for $100k less. Honestly, the current house is too big for the three of us.
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
Yes. MBA in my early 30's. This was done to essentially "increase" the ceiling on my career. It has worked and I am now in a position that I would have not received, had I not completed the MBA.
5. What financial surprises came about in your 30s?
We spend significantly less now than in our 20's. We are past the stage of nice cars and buying crap. We have moved much closer to a minimalist approach and it has saved tons of money. Savings rate is > 50% of gross income. The big takeway is that buying stuff did absolutely nothing for our happiness

Thanks!
FYI, we are currently 38 and 35.

OnTrack2020
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Re: How are your 30s financially different than your late 20s?

Post by OnTrack2020 » Sun Jun 09, 2019 11:47 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!
Our medical spending increased in our 30s as we had young children, although not necessarily dramatically. And young children, once they enter daycare and then move into kindergarten, etc., are at the doctor a lot. More so, once they enter school as your child will pick up pretty much every "bug" from other kids. I was amazed by that aspect of having children in school.

Yes, as children begin to be involved in extra-curricular activities, it becomes expensive.

Yes, we upsized as we needed a little more room and moved closer to husband's place of employment.

Yes, worked on an MBA. I don't remember what prompted us to make the decision, but seemed like the next logical step.

My parents passed away when I was in my 30s.

Jags4186
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Re: How are your 30s financially different than your late 20s?

Post by Jags4186 » Sun Jun 09, 2019 12:25 pm

You seem to already have many of the things that people get in their 30s in your 20s.

You can still have additional children and the associated costs

Children get older and get involved in expensive things (although this is really a choice IMO, no kid needs to be in 10 activities)

Your parents may require financial assistance as they age

You may have a health issue--my doctor told me that most people's bodies can handle anything thrown at them up until 30 then poor decisions begin taking their toll (eat healthier, drink less, etc. etc.)

Lifestyle creep as your career hits it's stride and hopefully start making more money

BV3273
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Re: How are your 30s financially different than your late 20s?

Post by BV3273 » Sun Jun 09, 2019 12:36 pm

playtothebeat wrote:
Sun Jun 09, 2019 10:41 am
BV3273 wrote:
Sun Jun 09, 2019 9:43 am

Besides that I am going to start spending more time on myself. Personal development and physical fitness. I think at this stage of the game your realize that no one is going to take care of you except yourself. You need to make time for yourself and say no sometimes. Use your vacation time. Work life balance is key to a happy life at home and at work. Again, MAKE TIME FOR YOURSELF.
I want to echo this more than anything else. I’m 33 with a wonderful wife and an awesome son, but this is very important to note. I see a lot of coworkers in their 30s who simply do not have or make time for themselves, and it shows. They have have multiple kids which keeps them very busy, so it’s understandable and I certainly can’t relate since I only have 1. But do anything you can to have some YOU time, whatever that means to you - to me, that means playing hockey or soccer, with an occasional round of golf (usually through work) - to you it might mean going to grab drinks with your buddies (social health is also important!). I am fortunate that my wife is very supportive of all my activities and respects my desire to have time to myself, and I think it sends a good message to our son who knows that health is important and is himself very active with sports so far
I’m 33 as well lol

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Re: How are your 30s financially different than your late 20s?

Post by Grt2bOutdoors » Sun Jun 09, 2019 12:56 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
Not necessarily, but things could crop up that you not think about today.
2. Did you find yourself spending more on your children as they got older?
Did not have child until late 30's, so more time to plan and save accordingly. You can spend as little (within reason) or as much on children as you like, they will still pretty much turn out fine. Still, if you have the ability to do so, take those family vacations - you will never get that time back again!
3. If you upsized in house in your 30s, what led you to do so?
Bought house in late 30's, started family.
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
No. Advanced degree in 20's.
5. What financial surprises came about in your 30s?
2001 happened, 7 years later 2008 happened. To have two major economic events occur in the span of 8 years is mind-blowing.
Be prepared or get prepared if you can, it may never happen again, but if it does you definitely do not want to have just 3-6 months of expenses lying around in a taxable account. I saw tons of people out of work, in addition to them losing homes.


Thanks!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: How are your 30s financially different than your late 20s?

Post by KyleAAA » Sun Jun 09, 2019 1:04 pm

No surprises, I just have a lot more money due to much higher income and the ongoing bull market. We did buy a more expensive home but largely because we moved to a higher COL area and not due so much to wanting to upgrade. Things hurt more now that I’m in my late 30s but still no major health problems. I exercised quite a bit in my 20s so I’m sure that helped. Our absolute spending went up due to move to VHCOL city but no nearly as much as the COL calculators would suggest. We go out much, much less now with the kid. If we’d stayed in our former city our expenses would have dropped dramatically after child. We spend free time in the park or at the lake now. More fun and much cheaper.

rascott
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Re: How are your 30s financially different than your late 20s?

Post by rascott » Tue Jun 11, 2019 4:09 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!

1) None. Has always been basically zero.
2) didn't have them until mid 30s....so will see next decade....but can't imagine anything will cost as much as childcare (I could send them to college for less)
3) see kids above.
4) did that in my 20s. Employer paid for it, so took advantage.
5) none really, has been pretty dull compared to my 20s :-). Actually started to see wealth build - compounding taking off. The 2000s felt like I was stuck in the mud.

SaveStrong
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Re: How are your 30s financially different than your late 20s?

Post by SaveStrong » Tue Jun 11, 2019 4:45 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s? yes. Kid diagnosed with tree nut allergy. My own injury mishaps (knee injury from frisbee... sigh). Started IFV but got pregnant with second before getting too deep into process

2. Did you find yourself spending more on your children as they got older? yes. Kid turned 3 and many programs (nature center, sports camps, etc) started opening up. Not expensive but $20-50 here and there for these mini events
3. If you upsized in house in your 30s, what led you to do so? planning to upgrade as we live in a small townhouse (900sf 1ba). Likely will move in next 1-2 yrs
4. Did you go back to school for a graduate degree? If yes, what prompted the decision? yes. Work paid and wanted to redirect focus so didn’t become a dinosaur in my industry. Had led to many more job opps than I expected.
5. What financial surprises came about in your 30s? Magic of compounding from many years of early investing. Start getting used to daily 6-figure swings

Thanks!

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FelixTheCat
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Re: How are your 30s financially different than your late 20s?

Post by FelixTheCat » Tue Jun 11, 2019 5:20 pm

Here's the not so fun advice. Based on the baby comment, get a trust. What happens if something horrible happens to Mom and Dad? Who will take care of the child and who handles the estate? Get at least a million dollar term life insurance for you and a million dollar term life insurance for the spouse.

You probably haven't realized the power of compounding yet. I would max out investing (401K, Roth, Taxable) as much as you can. In my late 50's I wish I invested more in my 20's and 30's.

Budget a vacation each year into your plan to spoil your family.
Felix is a wonderful, wonderful cat.

tesuzuki2002
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Re: How are your 30s financially different than your late 20s?

Post by tesuzuki2002 » Tue Jun 11, 2019 7:40 pm

Yes, every things gets a little more expensive... kids, utilities, fun, food, housing, transportation...

I invested a lot in my 20s... so my investments make almost as much as I do.... It's like have 2 incomes now... Keep your savings rate as high as you can for as long as you can... you won't be upset later in life...

Stay healthy... stay active... Sports, running, triathlon, hiking, rock climbing, skiing / snow boarding, backpacking, cycling...

Starfish
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Re: How are your 30s financially different than your late 20s?

Post by Starfish » Tue Jun 11, 2019 7:55 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!
1. Yes, because we started having medical expenses. But insurance took care of it.
2. No kids in my 20s. We got a kid towards the end of our 30s.
3. We up sized to 2 bedrooms owned from 2 bedroom rented after having the kid. We figured was better for the kid but kids don't care.
4. We were still in school at 30. I came out shortly after, and my wife at 32.
5. I thought I was pretty poor but at the end of the decade enrolled in Mint I found out that we had 1 million in net worth.
Fortunately nothing negative.

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StormShadow
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Re: How are your 30s financially different than your late 20s?

Post by StormShadow » Tue Jun 11, 2019 8:07 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!
1. Kids get sick. A lot. Me and the wife have also ended up in the hospital for unexpected medical issues. I purchased the best health insurance I could afford and I don’t regret it one bit.
2. Yes.
3. N/A, see 5.
4. Yes, went to Med school/residency. DW got her MBA. Both was planned way ahead and essentially requirements for our careers. I often think about going for a JD, but DW won’t let me. :(
5. Cost of owning a larger house. Skipped the starter home and purchased a big house with the idea that we’d add on a few more kiddos... umm, yeah that hasn’t exactly panned out since we haven’t gotten pregnant yet.

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Watty
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Re: How are your 30s financially different than your late 20s?

Post by Watty » Tue Jun 11, 2019 11:26 pm

It has been a long time but in my 30's here are a few things that other people have not mentioned;

1) Had been working in the same career for over ten years and while it was still interesting it was not nearly as exciting as when I was right out of college. With a wife and kid the life side of the "work/life" balance became more important.

2) I worked in Silicon Valley right after college which was good experience but I moved to a much lower cost of living area to settle down and buy a house.

3) Started my retirement savings. Prior to that saving up a house downpayment was my first goal.

4) I worked in IT as a software developer. By my 30's I was pretty much at the top of the pay grade for what I was going and I never had any desire to go into management. Staying on the technical side was a conscious choice. I was OK with that and still made good money so I focused on being good at that and keeping myself employable. I was able to retire a few years ago after being a software developer with various job titles for 35 years.

FIREmeup
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Re: How are your 30s financially different than your late 20s?

Post by FIREmeup » Wed Jun 12, 2019 6:17 am

Wife and I, 35 and 34, 2 young kids. Life definitely changes with kids as you know. At 30 is where I definitely felt a change in physical well being. In your 30s you have to eat healthier. Stay ahead of the curve. I see it with my older friends and family, they carried their extra weight through their 30s just fine but they hit 40 and now the weight all of a sudden caused a ton of issues. So if not doing so, eat healthy, and get in regular exercise.

So far the two kids haven't increased our expenses. We spend more money on them but less on ourselves. I see some people said make sure you have you time. Do what works for you. If you need it, great then be sure to make time. I used to play a lot of golf. Probably 30 to 35 rounds a year. Since my kids have come along, I play twice a year. So that saved money that I happily spend on the kids. My me time is hanging with them, doing the yardwork myself, my rower, and small rock climbing, grip training from the rafters of my garage.

Continue to save. At this age, ever dollar you save assuming 7% return will quadruple by mid 50s and be 8x by mid 60s. Save but also do experiences with your family.

We bought a large house when we got married and see no reason to upsize. Moving seems unbearable at this point so just another reason for us not to.

Good luck, have fun, enjoy the ride.

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Re: How are your 30s financially different than your late 20s?

Post by Olemiss540 » Wed Jun 12, 2019 7:42 am

Late 20's and early 30's was lazer focused on cashflows/savings. Mid 30's with the kids out of the toddler stage, am in a position to maximize what I feel are going to be the most important 6 year span (prior to the teen years) and thus have greatly loosened up the "purse strings" and even went so far as to buy a 15 YO boat! Travel. Entertainment. Eating out. Budgets have all scaled up dramatically but am on target with my savings which allowed me to do so fairly stress free.

I guess it could be "lifestyle creep" but focused on experiences instead of goods in our case. Will hopefully be easy to scale back down if/when the numbers dictate we need to!
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

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Re: How are your 30s financially different than your late 20s?

Post by Watty » Wed Jun 12, 2019 8:39 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring.
One other thing that I thought of was that between my 20s and 30s the economy changed a lot so I also had to adapt to the economic changes. In my 20s I pretty much only saw one economic environment since I graduated college so I was not used to change.

If you graduated college and started your first job when you were 22 that would have been in 2011. There have been some minor ups and downs since then but generally inflation has been low, there has been a long bull market, in most areas house prices have been steadily increasing, and there were no recessions-much less a major recession. These may turn out to have be some of the best economic times that you will see in your life.

I am only 62 but there have also be huge technology changes since I was my 20s. For example back then PCs had just been introduced, cell phones much less smartphones did not exist, the internet did not exist, VHS videotapes were new and very expensive, cars did not have airbags, and lots more.

My general impression is that the pace of change is accelerating and not slowing down. For example it is easy to forget that the iPhone was only introduced 12 years ago in 2007 and android phones are only about 10 years old.

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Re: How are your 30s financially different than your late 20s?

Post by alfaspider » Wed Jun 12, 2019 8:58 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!
Only mid 30s, but:

1) Not so far (knock on wood), with the exception of childbirth costs. This really dependent on how healthy you stay.
2) Kids are still little, but daycare is a kick in the pants. It's more than our mortgage. It would be pretty difficult to spend as much on anything short of a full time nanny or college.
3) We are strongly considering doing so. Kids just have a lot of stuff (even if you don't buy stuff, people will give it to you), and a house that was uncluttered as a couple was a bit messy with one kid and a disaster zone with two. We aren't there yet, but also know that kids want more personal space as they age.
4) No, but we already both had them.
5) I've actually been surprised at the upside. In our 20s, our net worth was zero to negative, only starting to build in our late 30s. We've since joined the two comma club. Compounding really does work, though admittedly we've been helped by a great market over the last decade.

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Re: How are your 30s financially different than your late 20s?

Post by UpsetRaptor » Wed Jun 12, 2019 9:17 am

I have some money now

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Re: How are your 30s financially different than your late 20s?

Post by prncrakim » Wed Jun 12, 2019 9:32 am

1. Did you find your medical spending increased dramatically in your 30s?
Yes, three kids, doctor/dentist visits. My wife as an autoimmune disease that didn't pop up until post 30, requires ongoing care. I've had three surgeries in the last 18 months. Decent health insurance helps.
2. Did you find yourself spending more on your children as they got older?
Yes, activities increase. Discretionary spending increased but that's our choice. Travel is a big one with a big family.
3. If you upsized in house in your 30s, what led you to do so?
Built a house, "needed" more space for the family. Again, certainly a choice we didn't have to make. In fact, my boys continue to share a bedroom by choice after building six years ago.
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
No, self-employed.
5. What financial surprises came about in your 30s?
We make more money, we spend more money, we save more money. In my personal experience you start thinking ahead in your 30's. In my 20's retirement was some distant problem to be worried about later. Don't do that, lol.

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Re: How are your 30s financially different than your late 20s?

Post by willthrill81 » Wed Jun 12, 2019 9:37 am

Someone recently said that there's almost no such thing as risk when you're in your 20s. Apart from student loans, that seems mostly correct to me. But the situation changes for most in their 30s. Marriage, children, a mortgage, vehicle loans, etc. all come with financial obligations and, consequently, reduce one's flexibility.

But it's not all bad. Many who are financially savvy are able to hit big milestones in their 30s (e.g. net worth of $500k or even $1 million), and many are reaching financial independence during that period of their lives.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: How are your 30s financially different than your late 20s?

Post by stoptothink » Wed Jun 12, 2019 9:44 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!
I'm 38, wife is 33. Two kids, 7 and 4.
1. Our medical spending is almost non-existent even though I was diagnosed last year with an autoimmune disorder that will likely have me on medication the rest of my life. Outside of the cost of actually delivering our son, I don't think we've had a single year where our total medical/dental (out of pocket) costs exceeded $1k. Our HSA could pay off half our mortgage at this point.
2. Our spending on children is low, very low, compared to anybody's projections. It was low when they were infants/toddlers because almost everything you need is given to you and it remains low. Daycare is insane (far more than our 15yr mortgage), but that will be gone soon, otherwise kids are cheap for us. My daughter does gymnastics and jiu jitsu, and my son wrestles; to this point this has been ~$140/month total for us and we have no intentions of increasing that. They do have nearly enough in 529s to pay for 4yrs of the local U (at current rates); that hasn't been "cheap", but I hardly consider that a cost.
3. Our home will be paid off in <3yrs, and while I would be perfectly happy living here forever, the wife has out her foot down in that we will not be living here in 5yrs. We will have my in-laws moving in with us permanently, so that is a consideration. IMO, my wife's desire is primarily keeping-up-with-the-Jones's(we make 3x-4x most of our neighbors).
4. I finished my PhD at 31, my wife went back to school at 30 to finish (well, she had barely started) undergrad. She has 2 more semesters and is already talking grad school. I'm tired of kind of being a single dad because she also works full-time (and travels for work). I'm done, I don't think she is. I don't think it will actually benefit her career (tech sales), but I am pretty sure an MBA is in the near future.
5. At 31, when I met my wife, I was nearly broke despite having lived like a pauper my entire life and working full-time through 11yrs of school (divorce and putting ex through undergrad and dental school). My wife was a single mom with an infant, and recently had filed bankruptcy due to a drug addict ex-husband; she was less than broke and making ~$12/hr. Since then we've tripled our income and should hit 7-figures in net worth, have a paid off home, and have kid's college covered before I reach 40. It's been a good decade, never would have expected to be in such a good position.

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Re: How are your 30s financially different than your late 20s?

Post by Hockey10 » Wed Jun 12, 2019 10:11 am

Late 20s - married, no kids. Looking back, we had lots of free time and life was fairly easy.

30s - 3 kids were born and 3 parents passed away. The 4th parent had significant health issues that required a lot of our time over a period of 10+ years. Going from taking care of only ourselves in the 20s to taking care of 3 kids, and at various times 4 parents in our 30s was a huge shift. It felt like we had no free time.

Financially, kids expenses get higher as they get older. Also, the problems they cause are more complicated the older they get.

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Re: How are your 30s financially different than your late 20s?

Post by Chadnudj » Wed Jun 12, 2019 10:13 am

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

However, I still have a few financial questions about being in ones 30s versus late 20s:
1. Did you find your medical spending increased dramatically in your 30s?
2. Did you find yourself spending more on your children as they got older?
3. If you upsized in house in your 30s, what led you to do so?
4. Did you go back to school for a graduate degree? If yes, what prompted the decision?
5. What financial surprises came about in your 30s?

Thanks!

About to exit my 30s later this summer, but needless to say they were a busy decade:
- Got married
- Had 2 kids
- Lost 3 jobs (but found a great job in the end, and only was unemployed a total of about 14 months the whole decade)
- Found Bogleheads (although I was doing decently on the "max out 401k" thing on my own before then)
- Started tracking net worth
- Sold a condo, bought a different (larger) condo after we had kid 1, sold that condo, bought our (current, larger) house
- Sold a rental house I unwisely acquired in my late 20s
- Bought 2 cars
- Set up an estate plan/life insurance (already had disability in my 20s)
- Drastically increased my/our net worth

As for advice:
- Stay the course
- We upsized the house to be in the house we want to spend the rest of our life with and for our young kids to grow up in. We love it, it's great, but it's also daunting.
- We're spending arguably less on the kids now -- suburb daycare is cheaper, and getting cheaper still as they get older. Soon some of those expenses will be replaced with lessons/activities, though, I'm sure.
- Medical spending has been the same (with the exception of added pregnancy/delivery/kid costs)
- The biggest surprise is arguably how quickly the time flies by.
- You might start having demands to help out parents who didn't do things as wisely financially or otherwise. That's been a huge stress for us in regards to one parent. Or you might lose a parent (or both/multiple between you and your spouse) and have to deal with the fallout of that (helping a parent grieve/downsize, or funeral plans, or dealing with an inheritance). It's stressful, and something you should plan for as best you can.
- Financially, increase your emergency fund, just because it's a good idea, and because as you get more senior in your career it can take longer to find a new job that you like if you were to lose yours (it's easier to find a replacement position when you're still close to entry level than when you're more senior). Plus, with kids/spouse/house/aging parents, your emergencies just cost more.
- Make sure to keep your will and estate plan updated, with additional accounts/property/beneficiaries all listed. And make sure your beneficiaries on your 401k/life insurance/IRAs, etc. are all accurate.
- You'll find (or at least I did), you need to make more of an effort to schedule social gatherings with friends/family. Set up a good Google calendar with your spouse and plan events in advance. Our August is already getting booked up in early June.

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Re: How are your 30s financially different than your late 20s?

Post by Afty » Wed Jun 12, 2019 10:55 am

It's interesting how people are in such different places in their lives at the same age. At 30, we didn't have kids yet and were still in grad school. So our 30s were about becoming parents, starting to work "real jobs," and dealing with our parents' aging and declining health.

We have been very fortunate in our 30s. We and our kids have all been healthy (knock on wood) and our careers took off. I took a much greater interest in our finances, joined Bogleheads, and redid our investments into a Boglehead portfolio. We've tipped our balance away from from spending time to save money, as we did in our 20s, and toward spending money to save time.

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Re: How are your 30s financially different than your late 20s?

Post by brajalle » Wed Jun 12, 2019 5:07 pm

1. Absolutely medical went up. While we had some very unexpected events happen, even our spending absent that would have increased by a good %. There's just a ton more preventative stuff that you realize you should be doing, plus you're just aging. It's more likely this will happen the last half of your 30's. You'll also likely see the value in doing more elective stuff and addressing minor things (ie seeing an allergist for allergies = immunotherapy, etc).
2. No children.
3. We actually downsized - we found a 2000sq ft home required alot of time to keep it up plus just led to us filling up space. We're downsizing to 1100sq ft. Hoping this increases quality time and takes less energy.
4. No, but debating it. Minor improvement in career, but also personal interest. Not going to spend much though.
5. Medical of course as mentioned above. I wouldn't be surprised if a close friend or family member also has a financial crisis - you might feel pressure there to help. Parents are aging - this has some potential impacts, but more likely to hit after 30's for most people. At least one major catastrophe - auto, home, family - something will likely happen that could be a huge drain on funds, time, cause stress, interrupt work, etc. Small surprises come in the forms of the costs of all sorts of family & friends having life events. Marriages, births, graduations, more graduations, house warming, more kids in family = christmas, birthday expenses, etc. These things add up!

I think I'd add that all expenses be payable from the lowest income if possible - virtually eliminates a ton of potential crisis scenarios involving medical, accident, death, etc.

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Re: How are your 30s financially different than your late 20s?

Post by siriusblack » Wed Jun 12, 2019 6:14 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
2. Did you find yourself spending more on your children as they got older?
Yes, absolutely!

Babies are pretty much free. People throw you "showers", give you diapers and hand-me-down clothes, and your parents offer to baby-sit for free.

As they go from toddler to pre-school, they're still pretty inexpensive, but you might do pre-school which adds some cost. (My wife has been a stay-at-home mom so far, which means we haven't had any day-care costs. If that hadn't been the case, the baby and pre-school phase would certainly have been more expensive for us.)

In the elementary years, the summer camps and miscellaneous school activities start creeping up. As they start moving into middle school, the cost of groceries and eating out goes up (our food bill keeps on climbing), school-related and extracurricular activities get more frequent and more expensive, clothes get more expensive (and the hand-me-downs start trailing off), vacations become more important as you start counting the years left until college, the kids start expecting to get paid for chores, date nights require a baby-sitter, etc. ... it adds up.

I'm 40, and I currently have a rising 8th grader, 5th grader, and 1st grader. For our family, the expenses listed above have been on a very steady up-trend over the last 10 or so years ... probably to the tune of about ~$15k per year, not including the need to save for college.

I shudder to think what high school and college will bring :)
notmyhand wrote:
Sun Jun 09, 2019 9:00 am
3. If you upsized in house in your 30s, what led you to do so?
Oh yeah ... that too. Bigger kids = more bedrooms, good yard, plenty of space. Someone once told me, "A house is just another tool to help you raise your kids"-- I think there's some truth in that. For us it meant going from a 200k house to a 400k house, in a neighborhood where we feel comfortable enough letting the kids run around more freely outside. (Ya know, free range parenting and all that.)

One final thing I forgot to mention -- you'll probably need a swagger wagon at some point? (https://www.youtube.com/watch?v=pUG3Z8Hxa5I)

The good news in all this is that (most likely) your household income will increase accordingly as you move through your 30's (and maybe more than needed). For us it really hasn't impacted our lifestyle or our ability to save/invest, and give.

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Re: How are your 30s financially different than your late 20s?

Post by Write2staceyz » Wed Jun 12, 2019 6:45 pm

At late 30.
In 20th married.
In 30th divorced.

In 20th employed.
In 30th jobless.

In 20th no children
In 30th 1 marvelous 6 year boy who gives me his piggy bank money when I told him about job loss.

In 20th no saving.
In 30th, has enough saving to pay off the mortgage.

I think the biggest change is my vision of how to live a meaningful life. I started to read many books. I came to US when I was 17, major in EE so I can get an engineer job and a greencard. But now I am about to be a citizen and I am free to do anything. I am a day trader. But I spend more time listening to my friend's problem, pray for them, give support and help.

In next 5 years I set my goals to
1) set up my private hedge fund
2) increase my cash flow 5 times
3) buy another town house at a better school district. I choose townhouse over SFH because I feel it is safer for me and my child.
4) donate 10K to others.

In 20th I am a taker. I take my parents money. They paid for my school and graduate school.
In 30th I am a giver. I support my son's private school. My parents are in middle class and currently healthy which dont need my support. But I know 10 years later, they will need me take care of them.

I don't think I will go to graduate school. I am currently attending some workshop and go to community college to study about tax. I spend a lot of time reading books on investment strategies. Degree to me is not that important.

Despite that I am divorced and jobless, I am pleased with my current status. If I die tomorrow, I have no regrets. I have lived in a life that I want to live. I followed God. I helped people. I finished reading the Bible. These are the things that I want to do before I die, and I have done all of them.

I have two main long term goals, one is sharpen my investment skills which is my passion. The other is to help more people in honor of heavenly father.

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Re: How are your 30s financially different than your late 20s?

Post by scrabbler1 » Wed Jun 12, 2019 9:35 pm

1. Did you find your medical spending increased dramatically in your 30s?

Other than increases in my employer-sponsored HI premiums, only my dental OOP costs rose.

2. Did you find yourself spending more on your children as they got older?

I am childfree, so my spending on kids was zero the whole time, and continues at that level today.

3. If you upsized in house in your 30s, what led you to do so?

I moved to my co-op apartment at age 25 and remain here.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?

I had no interest in returning to school.

5. What financial surprises came about in your 30s?

My company introduced its ESOP (company stock) program when I was 33. The value of the stock price exploded by a factor of 300, enabling me to semi-retire at age 38 and fully retire 7 years after that.

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Re: How are your 30s financially different than your late 20s?

Post by FrugalProfessor » Thu Jun 13, 2019 12:08 am

Currently 37. Still desperately holding onto my 30s.

1. Did you find your medical spending increased dramatically in your 30s?

I've probably spent $100 on my own healthcare for the past decade. My spouse and 5 kids, on the other hand, have been heavy users of healthcare. We hit the OOP max of > $10k for the past two years in a row. Ouch.

2. Did you find yourself spending more on your children as they got older?

Not really, though my oldest is 12 so I'm unsure of how educated of an opinion this is.

3. If you upsized in house in your 30s, what led you to do so?

We had 4 kids in a 2 bedroom townhouse during my phd. When #5 came we upgraded to a small 3 bedroom house. When I took my first post-phd job, I suggested we rent a 3 bedroom apartment in our new area. My wife threatened to leave me. I reluctantly bought a 5 bedroom 3500 square foot house with annual property taxes of $9k/year.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?

Yes. Twice. MBA during late 20s. PhD during early-mid 30s. I got bored as an engineer and had accrued plenty of money to do play hooky from real life ($100k when started MBA, $250k when ended phd). I think my optimal existence is a perpetual college student. College professor is kind of a close second....and they pay me.

5. What financial surprises came about in your 30s?

My wife's unwillingness to live with 5 children in a 1000 square foot apartment in perpetuity. And the annual hemorrhaging of healthcare expenses up to the OOP max. And the $10k SALT cap in Jan 2018 really put the kibosh on the tax benefits of homeownership (goodbye mortgage interest & property tax deductions). With 5 kids, child activities can kind of add up (piano lessons, sports, etc), but we tend to go pretty cheapo on these.
I blog. Taxes are the lowest hanging source of alpha.

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Re: How are your 30s financially different than your late 20s?

Post by traveler901 » Thu Jun 13, 2019 5:24 am

siriusblack wrote:
Wed Jun 12, 2019 6:14 pm
notmyhand wrote:
Sun Jun 09, 2019 9:00 am
2. Did you find yourself spending more on your children as they got older?
Yes, absolutely!

Babies are pretty much free. People throw you "showers", give you diapers and hand-me-down clothes, and your parents offer to baby-sit for free.

As they go from toddler to pre-school, they're still pretty inexpensive, but you might do pre-school which adds some cost. (My wife has been a stay-at-home mom so far, which means we haven't had any day-care costs. If that hadn't been the case, the baby and pre-school phase would certainly have been more expensive for us.)

In the elementary years, the summer camps and miscellaneous school activities start creeping up. As they start moving into middle school, the cost of groceries and eating out goes up (our food bill keeps on climbing), school-related and extracurricular activities get more frequent and more expensive, clothes get more expensive (and the hand-me-downs start trailing off), vacations become more important as you start counting the years left until college, the kids start expecting to get paid for chores, date nights require a baby-sitter, etc. ... it adds up.
This seems to be the opposite of what everyone else has posted and what anyone I know says. General consensus seems to be that toddler years (daycare) are the most expensive and that ages 5-14 become a bit cheaper.

It's interesting to me that you are saying babies and toddler are "free" just because your wife was a stay-at-home mom. I guess you do not consider the lost income to be an expense? I have personally always viewed that as an expense either way - i.e. lost income is an expense of the income the spouse isn't making and the alternative of course is the cost of the daycare. Unless your spouse wasn't working before kids?

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Re: How are your 30s financially different than your late 20s?

Post by siriusblack » Thu Jun 13, 2019 10:28 am

traveler901 wrote:
Thu Jun 13, 2019 5:24 am
siriusblack wrote:
Wed Jun 12, 2019 6:14 pm
notmyhand wrote:
Sun Jun 09, 2019 9:00 am
2. Did you find yourself spending more on your children as they got older?
Yes, absolutely!

Babies are pretty much free. People throw you "showers", give you diapers and hand-me-down clothes, and your parents offer to baby-sit for free.

As they go from toddler to pre-school, they're still pretty inexpensive, but you might do pre-school which adds some cost. (My wife has been a stay-at-home mom so far, which means we haven't had any day-care costs. If that hadn't been the case, the baby and pre-school phase would certainly have been more expensive for us.)

In the elementary years, the summer camps and miscellaneous school activities start creeping up. As they start moving into middle school, the cost of groceries and eating out goes up (our food bill keeps on climbing), school-related and extracurricular activities get more frequent and more expensive, clothes get more expensive (and the hand-me-downs start trailing off), vacations become more important as you start counting the years left until college, the kids start expecting to get paid for chores, date nights require a baby-sitter, etc. ... it adds up.
This seems to be the opposite of what everyone else has posted and what anyone I know says. General consensus seems to be that toddler years (daycare) are the most expensive and that ages 5-14 become a bit cheaper.

It's interesting to me that you are saying babies and toddler are "free" just because your wife was a stay-at-home mom. I guess you do not consider the lost income to be an expense? I have personally always viewed that as an expense either way - i.e. lost income is an expense of the income the spouse isn't making and the alternative of course is the cost of the daycare. Unless your spouse wasn't working before kids?
You're right -- I wrote my response before reading the entire thread ... it is interesting to see the differences. We track our expenses in quicken (and have done so for 10+ years)-- it is true (for us) that our expenses have steadily gone up as the kids have grown-- but I also acknowledge that my wife's choice to be a stay-at-home mom (so far) has not been "free". Childcare expenses would have changed the picture substantially. Everyone's situation is a little different.

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Re: How are your 30s financially different than your late 20s?

Post by RobLyons » Thu Jun 13, 2019 1:48 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am
I'm about to turn 30 this year and am curious what this next decade will bring. I already have a young child, a marriage, home, and career so curious if it gets much different and if there is anything financially I should prepare for. I already have a will, life and disability insurance, and have started a 529.

Thanks!
Looks like you're on the right path.
Answers to your questions below

1. Did you find your medical spending increased dramatically in your 30s?
YES. Mostly the kids - daughter has had multiple health issues, son is the emergency room type of kid.

2. Did you find yourself spending more on your children as they got older?
YES. Being middle class, we have taken every step to avoid unnecessary spending and we don't typically spoil them. However, kids needs clothes, hand me downs are rare. Sports and other activities add up. Dance, gymnastics, baseball, football, etc.
Also sometimes I spoil them. Rented a travel petting zoo for daughter's 7th.

3. If you upsized in house in your 30s, what led you to do so?
N/a - never upsizing.

4. Did you go back to school for a graduate degree?
If yes, what prompted the decision? No. Went back to school for career change at age 28.

5. What financial surprises came about in your 30s?
Mostly home repairs. Pride in home ownership has put a dent in savings. Most recently a dental work surprise popped up. Discovered wife's school loans.
"Great parenting sets the foundation for a better world"

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Re: How are your 30s financially different than your late 20s?

Post by Jordan4FI » Thu Jun 13, 2019 2:11 pm

hopefully in your 30's you figure it out and can catch up and on what you missed and or at least improve your future to a better outcome... if you learn in your 20's even better and if you were taught or learned before 20 then that's the best, if you miss it and go past 40.. there is still time, but its going to take a lot of effort and sacrifice.

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Re: How are your 30s financially different than your late 20s?

Post by Meg77 » Thu Jun 13, 2019 2:47 pm

notmyhand wrote:
Sun Jun 09, 2019 9:00 am

1. Did you find your medical spending increased dramatically in your 30s?

No, but I've never had much in the way of medical expenses.

2. Did you find yourself spending more on your children as they got older?

NA (no kids)

3. If you upsized in house in your 30s, what led you to do so?

I upgraded from condo to townhome at age 30 when DH and I married (he was 35). Still there and bet we will be for another 5 years since we both like it. Even if we have a baby we wouldn't need more space unless we had 2. Would probably do private school anyway - or local public schools in elementary school - so school district wouldn't be an issue for us personally. We prefer short commutes and urban living.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?

I did not and don't plan to, though I got my CFP in my late 20s. I don't want the kind of job that would require a CFA, and I don't think my income would be impacted by an MBA enough to bother with getting one (partially because I'm pretty well paid already and also because moving into management at my small firm doesn't require an MBA like it sometimes does at bigger financial corporations).

DH did go get his MBA in his early 30s though, before we met. He wanted to switch fields entirely so needed the degree to facilitate that. He had an undergrad degree in Spanish so the MBA really broadened his options. I have an undergrad in finance already so the MBA would be more like window dressing versus actually adding skills I can't get otherwise.


5. What financial surprises came about in your 30s?

Our incomes both have risen more dramatically than we expected. So has our savings rate and net worth (the market has helped of course). We planned conservatively, and now we are a bit caught off guard without goals or a set investment plan for the cash flow. I'm really glad DH convinced me to "stretch" to get into our townhome because otherwise we'd definitely be upgrading right now and moving. Also wish we'd gone with a 15 year mortgage up front instead of refinancing multiple times and paying closing costs repeatedly (to get rid of PMI, then to slash rate, then to move to a 15 year amort since we were making double payments anyway).

Other "financial" surprises are mainly personal. I thought I'd have two kids by now but have zero and may not have any. This just adds to the unexpected cash flow and uncertainty of how to plan ahead. I thought we'd be married at least a decade or two before any real issues arise, but we narrowly averted divorce this year, 5 years in. I was genuinely shocked by the prospect and kind of feel silly now that never considered I might be in that situation.


Thanks!
"An investment in knowledge pays the best interest." - Benjamin Franklin

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Meg77
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Re: How are your 30s financially different than your late 20s?

Post by Meg77 » Thu Jun 13, 2019 3:09 pm

quantAndHold wrote:
Sun Jun 09, 2019 11:06 am
The biggest change for most people in their 30’s is that they start thinking about the future. Their own mortality, financial planning, etc. For most people, not that much actually changes financially, especially if they’re already married and have kids, except that they become more interested in planning for the future.
I know this is true for many, but I had the opposite experience. In my 20s I was obsessed with the future and with planning and projecting and saving and imagining all the options. I'm 35 now and have struggled the last few years since reaching a few major milestones (got married, bought great home, hit 6 figure income, hit 7 figure net worth). I've realized that there isn't really anything more to plan, or that planning is kind of a waste of time and energy, or maybe I've just run out of goals or didn't dream big enough. Or maybe I'm just content and don't know what to do with that! I'm very goal and progress oriented, so now I feel a bit unmoored. I like my job and colleagues so am not anxious to retire. I have the savings on autopilot and now there's nothing to do financially but wait and let compounding do its magic and watch the stack grow. In the meantime, how do I want to pass the time? What to do TODAY, rather than wondering about tomorrow? Those are more difficult things for me to focus on than projecting my net worth out for decades.
"An investment in knowledge pays the best interest." - Benjamin Franklin

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Elsebet
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Re: How are your 30s financially different than your late 20s?

Post by Elsebet » Thu Jun 13, 2019 4:48 pm

1. Did you find your medical spending increased dramatically in your 30s?

No, I'd say it remained relatively flat. I'm 42 now and have been taking a more active interest in my health including making time for exercise, watching what I eat, and getting my annual tests done.

2. Did you find yourself spending more on your children as they got older?

Not applicable, we're DINKS!

3. If you upsized in house in your 30s, what led you to do so?

Not sure if I'd call this upsizing per your definition but we moved from Ohio to the Seattle area in 2014. Our house in Cincinnati was $137k (cape cod on a tiny lot) and we lucked out to find a cheap fixer-upper here on 2.5 acres in the Seattle area for 300k in 2015. The cost of housing was upsized for sure and we also had new things like a well, septic, and acreage to learn to maintain.

4. Did you go back to school for a graduate degree? If yes, what prompted the decision?

Nope.

5. What financial surprises came about in your 30s?

Moving from a LCOL area to a HCOL was a shock!
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca

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