Invest instead of saving: Financial experts give tips for 30-year-olds

Some people have been working almost half their life by the time they’re 30, others have just that Studies completed and just start their professional life. But at this age the financial future is decided.

Money expert Michael Kuhn from the comparison service Comparis and financial advisor Rexha Hasani from the Zurich financial service provider SMZH say what 30-year-olds should consider if they want to have a million as soon as possible, buy a house or live well in old age. They also tell you how much money you should have for emergencies.

The median net worth for 30-year-olds is around 32,000 francs (excluding pillar 3a). That means half have more, half have less.

If you start investing at your 30s, you should…

…first ensure an overview and order, says Rexha Hasani. “Know your own budget, understand fixed costs, build up an emergency fund, avoid high consumer debt.”

With just 100 to 500 francs per month, your assets can grow significantly over the years, says Michael Kuhn – if you start early and, for example, on one ETF savings plan sets. He recommends:

Net worth at 30 so you can be a millionaire as soon as possible

According to Hasani, anyone who invests 50,000 francs as starting capital and then invests another 1,000 francs a month will get close to a million with a 5 percent return after around 30 years, says Hasani. Without starting capital, it takes around 37 years to make a million with 1,000 francs per month and a 4 percent return.

He advises against aggressive investments: “Speculative investments in hype stocks, crypto bets and short-term trading are not suitable for long-term wealth creation.”

Have wealth at 30 so you can buy a house at 40

To buy a home you need at least 20 percent of your own funds. With a purchase price of one million francs, that’s 200,000 francs. A maximum of 10 percent can come from the pension fund, i.e. 100,000 francs from savings. “If you want to buy at 40, you have to count backwards at 30,” says Hasani. With 200,000 target capital over ten years, that’s around 20,000 francs per year or around 1,650 francs per month without returns. With half from the pension fund, it comes to 825 francs per month

Assets at 30 to be able to live well in old age:

According to Kuhn, anyone who makes maximum use of Pillar 3a from the age of 30 with a return of 2 percent can save around 300,000 francs by the time they retire. With an average income, normal pension fund, AHV and 300,000 francs in pillar 3a, that corresponds to around 4,500 to 6,000 francs per month.

Money at 30 for emergencies

When it comes to reserves for job changes, moving, illness, car repairs or other things, the following applies: depending on your personal lifestyle, three to six monthly expenses – not monthly wages, says Hasani. If you need 4,000 francs a month, you should keep around 12,000 to 24,000 francs in reserve. If you are self-employed, have an uncertain income, have a family or have high fixed costs, more likely.

Whatever is left should be invested, says Kuhn, ideally via a standing order in a savings account. He recommends the principle 50, 30, 20 – 50 percent are for fixed costs such as rent, food, insurance, 30 percent for personal things such as leisure, shopping and vacations, 20 percent for saving and investing.

Fabian Pöschl (fpo) has been working for 20 minutes since 2020. He is responsible for business news in the economics department