Building a strong financial foundation starts with paying off debt, creating an emergency fund and saving for the future.
Align your life goals with your savings goals to stay focused and make progress toward what matters most.
Use smart saving and budgeting strategies, like the 70/20/10 rule and cash stuffing, to make your money work harder.
When you’re in your 30s, it can often feel like you’re being pulled in two different directions: You want to enjoy the moment, but you also want to save for the future.
Between career goals, family obligations and unexpected financial burdens, it’s easy to get overwhelmed and think you can’t have both — living well and putting money aside.
But what if you didn’t have to choose one or the other? By making mindful choices, you can live your best life in the present without compromising your future. It’s just about adjusting your priorities and embracing simple, sustainable strategies that address your current needs and long-term goals.
“It’s important to understand that priorities can — and often will — change as time goes on,” says Tim Klecker, a goals coach at U.S. Bank. “People get into relationships, start families, make career changes. But the more we are aware of this, the more we can keep our focus on the future and be strategic.”
The first step to finding a good balance is acknowledging that times are tough and giving yourself some grace. The financial hurdles that millennials (now in their late 20s and early 40s) are facing today are very real, and they’re not disappearing anytime soon.
Let’s start with the cost of living: Over the past two decades, housing prices and rent have outpaced wage growth. Inflation also remains a concern (currently hovering around 2.8 percent), and nearly half of millennials report struggling to make ends meet.
“We have a tendency to set unrealistic expectations of what we think we should have.”
Tim Klecker, goals coach at U.S. Bank
On top of that, this generation is increasingly stepping into the role of caregivers for aging parents — nearly 40 percent already have this responsibility — which can affect their employment, ability to save and quality of life. For those with children of their own, the costs of child care, education and extracurricular activities add more pressure to an already tight budget.
And then there are student loan pressures. Millennials hold the largest share of student loan debt, and with recent changes to income-driven payment plans under the new administration, millions are facing steeper monthly payments.
It all may seem unmanageable, but the key to making things better is to concentrate on what’s within your control and create a plan that works for your unique situation.
“In our modern culture, we have a tendency to set unrealistic expectations of what we think we should have,” says Klecker. “This can cause us to feel disheartened, frustrated and unmotivated to even start saving. It’s important we don’t compare ourselves to others.”
To lay the groundwork for a financially secure future, focus on three areas: paying off debt, building an emergency fund and starting retirement savings.
To spend less and save more, you don’t need to cut out every nonessential expense. Just figure out the wants that are most important to you. Is it quality time with friends? Pursuing a hobby you’re passionate about? Maybe a weekend getaway feels more rewarding than buying a new pair of shoes.
Once you’ve identified the nonessential expenses that matter most, prioritize those. Redirect the rest of your discretionary spending toward your needs and your long-term savings goals. That way, you’re investing in the things that truly enhance your life while still building a secure financial future.
“Self-awareness and self-control are the epitome of true empowerment,” says Klecker. “Yes, you have the freedom to spend, but you also have the freedom not to spend. Financial freedom isn’t in what you can (or can’t) buy. It’s in how you choose what to (or not to) buy.”
Saving doesn’t have to be a chore — it can and should align with your biggest life aspirations. “Some of the most successful people in this world are goal oriented,” says Klecker. “Not only do they know what they want, but they also know why they want it. Goal setting allows us to consider beyond the present — it provides us with an objective, focus and purpose.”
Whether it’s buying a home, starting a family, taking that dream vacation or launching a business, your savings can fund these important milestones. By setting clear short- and long-term savings goals, you can make sure you have the money you need for the moments that matter most.
“Develop a vision of who you want to be in the future and let your money — including your spending decisions — serve your journey toward that eventual destination,” Klecker says.
Start by identifying a concrete goal that’s meaningful to you and estimate how much it will cost. Once you have a target in mind, establish a timeline — whether it’s six months, a year or several years — and figure out how much you need to save each month to make it happen.
There are several practical methods you can use to make your money work harder for you now and in the future.
One of the most effective ways is by taking advantage of savings products that help your funds grow. For example, at U.S. Bank, Bank Smartly Savings®, certificates of deposit and money market accounts offer competitive rates that can give your savings a helpful boost.
“Set up automatic transfers on paydays,” adds Klecker. “That way, the money is deducted from your main spending balance right away.”
If you’re more of a visual learner, try cash stuffing. This budgeting trend involves creating envelopes for different spending categories — groceries, utilities, dining out — and allocating a set amount of money to each category every month. Once the money in an envelope is gone, you can’t spend any more on that category.
Another great option is the 70/20/10 budgeting rule. For this method, 70 percent of your budget goes to monthly bills, daily expenses and periodic costs, while 20 percent is directed to savings and investments, and the remaining 10 percent is set aside for paying off debt. This strategy offers a simple way to divide your finances, ensuring you prioritize saving and debt reduction alongside living expenses.
“But don’t be afraid to personalize the ratios to fit your future projections,” Klecker advises. “Maybe the 60/30/10 rule is better for you, or 60/25/15.”
If your bank has online and mobile banking, it may offer tools to help you track your spending and savings. The U.S. Bank Mobile App and online banking offer digital tools that can track your spending and income, plus set and track toward any goal you choose.
The more money you make, the more money you’ll be able to save and spend on the things you love. That means part of your strategy for balancing living well and saving smart should involve advancing in your career.
One way to do this is by taking courses to expand your skill set and earning advanced certifications in your field. These not only help you perform better in your current role but can also make you more competitive when applying somewhere new.
“Self-awareness and self-control are the epitome of true empowerment.”
Tim Klecker, goals coach at U.S. Bank
If you’ve been at a job for a while or have built a solid track record, don’t be afraid to approach your boss to negotiate a higher salary. When doing so, just make sure you’re prepared. Gather data on the salary range for your role in your area, compile a list of your accomplishments, highlight how you’ve contributed to the company’s success and demonstrate your value.
By focusing on the fundamentals of personal finance and staying disciplined about your savings goals, you can find that sweet spot between living well and saving smart. “And remember, it’s not an ‘and/or’ situation,” says Klecker. “You don’t have to sacrifice joy of the present for joy of the future.”
Read more about how to increase your savings.
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