Life moves fast. You think you have all the time in the world -- then suddenly your 20s are over and you're, like, a real adult.
Welcome to your 30s. The past decade was all about life's changes and getting to know yourself and your finances (see "10 financial commandments for your 20s"). You know the basics for managing your money. Now it's time to build on that foundation and secure your financial future.
Here are 10 principles that should be carved in stone for every 30-something:
1. Pay off your nonmortgage debt. Your 30s bring financial responsibilities you may not have had in your 20s, such as a mortgage or a family. Nothing frees up cash to meet those obligations like getting rid of your debt. We hope you paid off your credit cards in your 20s (if you didn't, make it a priority, and see "Your 5-minute guide to managing debt"). Next, focus on getting rid of student loans and other nonmortgage debt, such as auto loans.
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2. Kick the debt cycle altogether. What good is it to pay off your loans only to take out another one and rack up more debt? An easy way to save for big-ticket items -- and avoid going back into debt -- is to put money you would have used for monthly debt payments and interest charges into a savings account. For instance, after you make that final $300-a-month student-loan payment, keep making an equal payment to yourself. After one year, you'll have $3,600 saved. (See "Your 5-minute guide to budgeting" for help allocating your money.)
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3. Get serious about retirement. Your 20s were the time to start investing. No matter how little money you had to spare, it gave you a great head start. Now it's time to look at your goals and set a plan in motion to reach them. (MSN Money's retirement calculator will help you crunch the numbers.)
Basically, you need to figure out when you want to retire, how much money you want to have by then and how much money you'll need to sock away now to reach that goal. Time is still on your side -- use it! Get serious now so you can have a comfortable retirement without sacrificing too much in the meantime. Wait until your 40s or 50s and saving could become downright painful. (If you're not ready to dive in to the full calculator, at least get a quick figure with "Your magic number for retirement.")
Don't be tempted to save for your kids' college expenses instead of saving for retirement. Make sure your own plans are on track first. After all, there are loans to pay for college, but not for retirement.
4. Diversify your investments. You want to make sure your money is spread among different types of investments to protect yourself in case one sector of the market tanks.
Generally, you should aim to allocate 50% to 55% of your portfolio to large companies, evenly split between growth and value; 20% to 25% to small companies, evenly split between growth and value; and 25% to foreign companies. (Check out MSN Money's New Investor Center to get started. Then you can use MSN Money's Mutual Funds Research or Kiplinger's Fund Finder to zero in on funds in each category that meet your performance criteria.)
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5. Continue to learn. Don't stop investing in yourself once you land a job. "Keep your earning power growing through continuous education, training and personal development," advises Knight Kiplinger, the editor-in-chief of Kiplinger.com.
6. Protect your assets. Even the best-laid financial plans can be derailed by an unexpected cost. So it pays to be prepared for the "what ifs" in life. For most 30-somethings, that means having adequate homeowners (or renters) insurance, health insurance and disability insurance.
It also means having an ample emergency fund. You started stocking your fund in your 20s, but by your 30s, you should have the full stash of money to cover three to six months' worth of expenses in case of a job loss, medical emergency or other surprise. (If that seems impossible right now, start with $500.)
Continued: Don't try to keep up with the Joneses
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