THE ULTIMATE

GUIDE TO FINANCES
IN YOUR 30s
HOW TO MAKE YOUR MONEY
WORK FOR YOU
TABLE OF CONTENTS
Five Things People Do With Their Money ................ 2

Build Your Career ................................................................ 3

Save & Invest for Today.................................................... 7

Save for Retirement ........................................................10

Pay Off Debt .......................................................................14

Manage Love & Money .................................................. 17

Buy a Home .......................................................................20

Take Care of Your Family............................................... 23

Give to Others.................................................................... 27

What's Next....................................................................... 29

Checklist ............................................................................. 30

About Northwestern Mutual........................................ 31

If you were to road trip from Chicago to
Austin, youd use navigation, right? The
same holds true for your finances. When
you have a road map to get from where
you are today to where you want to be
in the future, youre much more likely to
reach your destinationand, likely, with
more confidence.

A lot can happen in your 30s. You may

be building your career, moving in with
someone, starting a family or buying
a home. Whatever you're focused on,
now's the time to get serious about
financial planning.
This guide will show you how.
FIVE THINGS PEOPLE DO WITH THEIR MONEY 2

Heres something that you, a famous A-lister, professional athlete or a founder of a

startup have in common: There are only five things you can do with your money: HAVING BALANCE HELPS
YOU JUGGLE MULTIPLE
Build up savings to cover lifes goals and surprises today and to afford a FINANCIAL GOALS
SAVE comfortable life tomorrow.
When youre in your 30s, youve got lots of
Manage what you have, what you owe and what you want. priorities competing for every dollar you
SPEND bring in.

Invest in ways that match your goals, your timeline and your tolerance for risk.
This guide outlines the common financial
GROW priorities that people like you face in their 30s.
For each priority, youll find advice and tips to
Safeguard your most important financial assets: the money youve already
help you make the most informed decisions
PROTECT saved and the future paychecks you need to support your lifestyle.
about your finances.
Where would you like to make a difference? When you have time or money to share
GIVE with causes that matter to you, what people and purposes will you support?

So as you think about what you do with the money you have nowand the money
youll earn in the futurelook to strike a balance across these five actions.
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
BUILD YOUR CAREER 3

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

As you make advancements in your
careerlike landing that job you wanted
Manage Love & Money or getting a certificationits a great time
Buy a Home to check in on your finances. Putting the
right strategies in place will help you
Take Care of Your Family
make the most of what lies ahead.
Give to Others

What's Next

Checklist

About Northwestern
Mutual
BUILD YOUR CAREER 4

UNDERSTAND THE VALUE OF YOUR PAYCHECK How Important Are Benefits?

Your greatest financial asset is not your car, home or even bank account; its your paycheck. Salary typically accounts for 70 percent of
Think about it this way, if youre making $75,000 today and have 30 years until retirement, total compensation, with benefits making
thats over $3.5M of income potential. Factor in promotions and that number up the remaining 30 percent.1
climbs exponentially.

$75K + 3% Each Year

Compounded = $3.5M Worth
of

Income Potential 30%

BENEFITS

70%
$75K SALARY
A year
Salary

30 years later
1 Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/ecec.nr0.htm
BUILD YOUR CAREER 5

PROTECT YOUR LIFESTYLE Disabilities Are More

Most of us know someone who has had to take some time off work because of injury or illness.
Common Than You Think

1 IN 5
When youre unable to work, your lifestyle can be jeopardized. Disability income insurance
provides replacement of a portion of your income in those situations.

And if others rely on your income, life insurance will help ensure your loved ones can maintain Americans live with a disability.2
their lifestyle should you no longer be here to provide for them.

QUICK TIP:

Disability income insurance plans offered by your employer

are a good start, but consider this:

They might offer only a fraction of the benefit you need

to protect your lifestyle.

They dont move with you when you change employers.

Be sure to review and understand what your benefits offer

to help you make informed decisions.

2 U.S. Social Security Administration, October 2015

BUILD YOUR CAREER 6

MAKE EVERY DOLLAR EARNED COUNT

What is your monthly budget?
You work hard for your paycheck; make sure your money is working just as hard for you. Begin by
tracking your savings and expenses for a few months to see where your money is going. At the Download the budget
same time, build out an ideal budget based on the 20/60/20 rule, meaning that no more than ... worksheet now.

of your income should be spent on saving and investing MONTHLY BUDGET

20%
(emergency fund, down payment on a house, wedding). To complete your current financial profile, it is important to review your monthly expenses.

ESSENTIAL EXPENSES (60%) SAVINGS AND INVESTING (20%)

Housing Health Care/Insurance Emergency Fund $ 525

of your income should be spent on essential expenses Mortgage/Rent $ 1,100 Health Insurance $ 250 College Savings $ 0

60% Property Taxes $ 0 Life Insurance $ 160 Short/Mid-Term Needs $ 500

(food, transportation, children, health care, etc.)

Home Maintenance $ 50 Disability Income $ 50
Insurance Subtotal
$ 1,025
Renters/ $ 20
Homeowners Ins. Long-term Care $ 0
Insurance
Utilities (Electric, Gas, $ 120
Water, etc.) Medical/Dental/Drugs $ 50
$ $

of your income should be spent on discretionary expenses

DISCRETIONARY EXPENSES (20%)
Household/Personal Transportation

20%
Cable/Phone/Internet $ 210
Groceries $ 360 Auto Payment(s) $ 210 300

(entertainment, clothing, dining out, etc.)

Dining Out $
Personal Care $ 215 Gas $ 170 Recreation/Club Dues $ 110
Clothing/Dry Cleaning $ 115 Maintenance/License $ 25 Movies/Sporting Events $ 30
Professional Dues $ 50 Parking/Tolls/Bus/Train $ 80 Hobbies $ 75
$ Auto Insurance $ 110 Vacation/Travel $ 200
$
Gifts/Contributions $ 150

Once you have a good idea of your expenses, compare the budget to what you're actually
Children
Credit Card Debt $ 0
Student Loans
Dependent/Child Care $ Repayment

Education/School $ Loan A ( ) $ 150 $

spending and adjust accordingly. Cash/Allowances $

$
Loan B (
Loan C (
) $
) $
$

Subtotal $ 3,285 Subtotal $ 1,075

TOTAL MONTHLY EXPENSES $ 5,385

Revisit your budget. NET MONTHLY INCOME

LESS EXPENSES
$

$
5,415
5,385

TOTAL SURPLUS/DEFICIT $ 30

For most people, the more you make, the more you spend. So as your income grows, dont lose
sight of where your money is going. Revisit your budget from time to time to help keep your
spending in check, so you can remain focused on funding the things that mean the most to you.
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
SAVE & INVEST FOR TODAY 7

Build Your Career

Save & Invest for Today

Making smart money decisions is all about
Save for Retirement setting yourself up to enjoy today, next year
and even years down the road. Follow these
Pay Off Debt
"rules of the road" when you consider your
Manage Love & Money strategy for saving and investing.
Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern
Mutual
SAVE & INVEST FOR TODAY 8

HAVE AN EMERGENCY FUND Could you cover a $400

Things will come up that you didnt plan for, like car repairs or an unexpected vet bill. Save
emergency expense?3
enough to cover one month of net household income, and work your way up to a longer-term
goal of six months. Put this money in places you can access anytime and in a vehicle that
generally won't go down in value (like a savings account).
Nearly Half

50%
Saving for other shorter-term goals like a friends wedding or vacation? The rule of the road
is that if you need to use it in less than a year, use a savings account.

of Americans would have to borrow money,

sell something or use their credit cards to
cover a $400 unexpected expense.
EMERGENCY
FUND

3 Federal Reserve Report on Economic Well-Being of U.S. Households in 2015, May 2016.
SAVE & INVEST FOR TODAY 9

DONT SHY AWAY FROM INVESTING

Ready To Get Started?
Investing can help accelerate your wealth. Most people dont get involved in investing because
they saw the impact of the Great Recession on their families or they simply dont understand it. The Guide to Investing will help
you get started.
The first thing to focus on is what you want your money to do. Investing isnt about whether
you should buy Apple or Google, its about selecting the right vehicles for your goals. For some INVESTING FOR YOU:
5 CRITICAL QUESTIONS
FOR EVERY INVESTOR

it's a mutual fund, for others it might be stocks. Learn more about the options and the goals 50%
People spend a lot of time worrying about finding the best investment. More
They pick a bond, mutual fund or stock and then second-guess themselves than
on whether they should have picked something different.

Yet the most important part of investing isnt deciding whether to buy of Americans dont own any stocks
Apple or Google; its about having a strategy to grow your moneyin other or stock-based investments;
words, taking time to identify what you want your lifestyle to look like and ...........................

21%
they address in The Guide to Investing.
then creating an investment strategy to help get you there. of those
people
Whether you have a little or a lot, managing money brings a lifetime
of choices. The most important thing is educating yourself on the
opportunities available so you can be ready for whatever presents itself. said they dont know enough
Thats what planning is all about. Learning how to strategically approach about stocks to take the plunge.*
investing will help you make the most of your money for your short- and
long-term objectives.

Inside youll find information to help you answer five critical questions:

1. What are your reasons for investing?

2. What are your investment options?

3. What do you need your money to do?

4. How do you feel about risk?

How much do I need to get started investing?

5. How involved do you want to be?

*Source: Bankrate.com, April 2015

You could get started for as little as $25 or $100 per month with standard investment
accounts. You can buy investments like mutual funds each month or have your money
accumulate over time and buy more investments at one time. Want a professional to help you?
Well have a licensed financial
You can invest with a financial professional or through a do-it-yourself online account. professional reach out to help you
align your financial goals with the
right investment vehicles.

* All investments carry some level of risk including the potential loss of principal invested
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
SAVE FOR RETIREMENT 10

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family Although retirement is a long way

Give to Others
off, nows the time to act. By being
serious about it now, youll be setting
What's Next yourself up with options and flexibility
Checklist
in retirement that will help you live the
life you imagine.
About Northwestern
Mutual
SAVE FOR RETIREMENT 11

MAXIMIZE YOUR SAVINGS

SHOULD I MAX OUT MY 401(k)
If your employer offers a 401(k) or Roth 401(k), take advantage of it and contribute at least enough OR JUST CONTRIBUTE UP TO
to earn the company matchits free money. If you dont have a company match, minimally save at THE EMPLOYER MATCH?
least 1 percent of your salary toward retirement and increase each year when you get a raise.
Always begin by contributing to your 401(k) at
least up to the employer match. For instance,
The earlier you start investing, the easier it is to reach your goals. if your employer offers a 100 percent match
up to 6 percent of your gross income, its
MONTHLY SAVINGS NEEDED TO ACCUMULATE $1 MILLION BY AGE 65 advisable to take full advantage of that benefit
and contribute at least 6 percent of your gross
$5,778 income to your 401(k).
$6,000

$5,000 Above and beyond that

level, the decision to
$4,000 increase contributions Personal Employer
Contribution Match
$3,000 to your 401(k) depends 6% 6%
$1,920
on your financial plan
$2,000 and the other options
$820 available to you for
$1,000
$381 achieving your goals.
$0 12%
25-YEAR-OLD 35-YEAR-OLD 45-YEAR-OLD 55-YEAR-OLD 401(k)
.
Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment.
Source: 2013 Morningstar. All Rights Reserved. Assumed 7% return compounded.
SAVE FOR RETIREMENT 12

BANK YOUR INCREASES

Give Yourself Options
Every little bit can add up to a lot over time, so increase your IRA, Roth or 401(k) contributions in Retirement
each year, even if by just 1 percent. You wont even miss the money, especially if you bump up
your contributions after getting a raise. Where you save is as important as
how much you save. Learn why.
1 percent adds up!
If you make $75,000 a year, have 30 years till retirement and save 5 percent of your salary, PAY TAXES NOW OR
IN RETIREMENT?
youll have $439,700 at retirement. Add just 1 percent each year (till you reach 15 percent), THE PROS AND CONS OF DEFERRED TAX
and youll have nearly $1.1 million. You probably know the phrase Dont put all your eggs in one basket.
Its often used to describe the strategy of diversifying your investments
across a variety of stocks and bonds so you can minimize your overall
I am currently very involved
losses if one particular segment youve invested in takes a downturn.1 in monitoring and managing
$1,100,000 In much the same way, Dont put all your eggs in one basket also
applies to the types of retirement assets you own. my retirement savings.
By spreading your retirement savings across a variety of savings vehicles
$1,000,000 (like 401(k)s, IRAs, annuities and nonqualified investments), youll be
giving yourself added flexibility in retirement that will help you
Percentage of workers
who agree with the 33%
accomplish two things: above statement:2
$900,000 1 Minimize taxes
Millennials
2 Maximize income 40%
$800,000 Of course, to take full advantage of the benefits of asset diversification
42%
you have to think about retirement now so you can plan accordingly
Gen-Xers
$700,000
during your working years.

Leading-Edge

$1.1 Million
Baby Boomers
46%
$600,000
Adding 1% each year Trailing-Edge
$500,000 Baby Boomers

$400,000
$300,000
1
No investment strategy can guarantee a profit or protect against a loss in down market.
2
LIMRA Secure Retirement Institute 2014

$200,000 $439,700
Saving just 5% of
$100,000 your salary
$0
10 years 20 years 30 years

This is for illustrative purposes only. Assumed 6% ROR, compounded monthly and 3% increase in salary each year.
SAVE FOR RETIREMENT 13

DONT CASH OUT YOUR 401(k)

Have an Old 401(k)?
When you're thinking about how to get ahead financially, you might be tempted to cash out your
401(k), even if the balance is just $5,000. You can make up the ground some other time, right? Learn about the options available to
But if you cash out now, your $5,000 will be reduced to about $3,600 after taxes and penalties. you for an old employer retirement
If you leave it in your 401(k) or roll it over into an IRA, it could grow to as much as $40,000 by the plan in the Changing Jobs guide.
time you retire.4 Learn about additional options for an old 401(k) in this short video.

Are you on track?

CHANGING JOBS?
TOP FINANCIAL CONSIDERATIONS
BEYOND SALARY
Across the industry, experts recommend you have the following amount saved to replace How many jobs do you expect to hold by the age of 50? Five? Eight?
If history is any indication, plan for about a dozen. The last wave of Baby DID YOU KNOW?
about 80-85 percent of your income in retirement.5
Boomers, people who are today in their early to mid 50s, have held an
...............................
average of 11.7 jobs1 throughout their adult lives, with nearly half of them Salary typically accounts for just
by the age of 25.
70 percent of an employees total
So whether youre just starting to put out feelers or have already made compensation. Benefits make up
the decision to take on a new challenge, take the time to think beyond just
your salary. Youll want to carefully evaluate the value of benefits such as the remaining 30 percent.2
retirement savings plans, insurance and tuition reimbursement that are
often overlooked and are equally important. And once youve taken a new
position, youll need to plan strategically for the retirement assets youve
accumulated and for any increase in salary you expect to receive.
30%
By taking a broader view of the financial picture for each opportunity, youll BENEFITS
be better prepared to make informed choices today that will help lead you
to the financial future you desire. This white paper points the way, with five 70%
key considerations to help ensure your next move is financially sound. SALARY
Consideration 1: Evaluate the major insurance benefits.

Consideration 2: Understand your new employer-sponsored

retirement plan.

Consideration 3: Factor in additional perks, which can add up quickly.

1x 2x 5x
Consideration 4: Decide what to do with your previous companys
retirement plans and company stock.

Consideration 5: Bank your salary increase.

Annual Annual Annual 1

2
Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/nlsoy.nr0.htm
Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/ecec.nr0.htm

By age 35
Salary By age 40
Salary By age 50
Salary

4 Hypothetical example: Assume $5,000 taxed at 20% with a 10% penalty. Assume $5,000 invested with no additions at 6% annual return
(compounded monthly) after 35 years.
5 Time, What You Should Save by 35, 45, and 55 to Be on Target
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
PAY OFF DEBT 14

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next When you think about your finances,

paying off debt is probably top of mind.
Checklist
Striking the right balance of paying off
About Northwestern debt and funding other priorities will help
Mutual you reach your vision for the future.
PAY OFF DEBT 15

PAY OFF CREDIT CARD DEBT

Resource
You have to pay at least the minimum on each of your credit cards each month; thats obvious.
But if you have extra cash, make additional payments on the card that has the highest interest Learn more about budgeting, debt
rate. Once that gets paid off, move onto the next highest interest rate card. Set a goal to pay off management and starting your
all credit card debt within five years. financial plan with this guide.
YOUR GUIDE TO
MONEY MANAGEMENT:
Whats the average credit card debt in the U.S.? BUDGETING, DEBT MANAGEMENT
AND STARTING YOUR FINANCIAL PLAN
In some ways, building a financial plan is a lot like building a house; you

$9,000 $9,000
need to start with a solid foundation. No matter what you build on top,
it has to rest on solid footing in order to last.

Regardless of your age, being strategic with money

management starts with four steps:

$8,000 $8,000
1. Understand your cash flow, the ins and outs of

$8,235 $8,300
your money each month.

SAVINGS

SAVINGS
2. Develop a saving and investing plan for your goals.

DEBT

DEBT
3. Be strategic about debt management.

$7,000 AVERAGE BY INCOME $7,000 4. Protect your assets and income. Two-thirds of Americans
consider themselves savers,
AVERAGE BY AGE

In this paper, well address each of the four steps while also answering
common questions such as: How do I build a budget that gives me
money today but also allows me to save for the future? How much but over half have equal or
$6,000 $6,000 should I spend on things like housing or entertainment?

This guide is here to help you feel more financially empowered by

more debt than savings.
Planning and Progress Study, 2015 Northwestern Mutual

giving you the information and tools that you need in order to take

$5,808
action toward your financial goals.

$5,000 $5,000
$4,900
$4,000 $4,000

$3,000 $3,000

$2,000 $2,000

$1,000 $1,000

$0 $0
Watch this short video to learn
Up to age 35 Age 35 - 44 From $45k - $70k From $70k - $115k more about paying off debt.

Average Debt in America, ValuePenguin 2016

PAY OFF DEBT 16

PAY OFF STUDENT LOAN DEBT

Learn More About Debt
If you are still paying off student loans, consider looking into alternative repayment plans. You
might be able to lower your payments, shorten the time you need to pay on loans or possibly Understand the details of your loans
have your debt forgiven. and the payment options for them by
downloading our Guide to Student
Loan Debt.
Have student debt? Youre not alone.
HOW TO TAKE CONTROL OF
YOUR STUDENT DEBT
You put in the work, earned your degree and nowif you're like most college
gradsyou've joined the ranks of millions of young professionals with one
thing in common: student loan debt. Nearly 70 percent of students attending
a four-year bachelor's program graduate with some amount of student loan

57%
debt1, so you'd probably be in good company if you found yourself wondering,
"Was it worth it?"

Here's one way to answer that question: By getting your degree, you'll earn an

70%
average of $800,000 more by the time you reach retirement than someone
who graduated from high school without a degree.2 So, look on the bright side.
You may actually be in a better financial position than you think, at least in the
long term.

And in the short term, there may be things you can do to ease the burden More than half of people
of paying back your student loans. That's critical, because more than half
(57 percent) of people with student loans worry about being able to with student loans worry
repay the debt.3
about being able to repay
What can you do? You may be able to switch to an alternate repayment
plan and pay less each month. You may be able to defer your payments,
the debt.3
consolidate or refinance them, or even qualify to have your loan balance
forgiven. And the best news is this: By exploring your options, you may be
able to free up money you can use for other priorities, such as buying a
car or home, starting a business and saving for your future retirement.

IN THIS GUIDE YOU'LL FIND:

Resources to help you understand what you have and what you owe.

The options available to you for managing or lowering your student

loan debt payments.

Key considerations to evaluate before changing your repayment plan.

of four-year bachelors program grads

rack up on average $35,000 in
student loan debt. Get tips on how to pay off your debt
in this two-minute video.

Source: Life Delayed, American Student Assistance, 2015

THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
MANAGE LOVE & MONEY 17

Build Your Career

Save & Invest for Today

Save for Retirement

The fun part of a relationship is
Pay Off Debt thinking about what you can do
together: go on vacation, move
Manage Love & Money
in together, talk about what the
Buy a Home future holds. But you will also
need to talk about finances,
Take Care of Your Family
which may be not as fun.
Give to Others Here's how to do both.
What's Next

Checklist

About Northwestern
Mutual
MANAGE LOVE & MONEY 18

START OFF STRONG Fast Facts on Marriage Today

Talk Money. Be candid about what you have, what you owe and Age:
your approach to saving/spending. Get it all on the table. In 2015, the median age for a first marriage was
29 for men and 27 for womenan all-time high.6
Decide how youll manage money. Agree on whether youll
commingle funds, who will be responsible for bill paying and Cost:
what you want to achieve financially. Doing a budget The average cost of a wedding today is $32,600.7
together is also recommended. Who's Paying?
79% of couples had some help from parents.7
Develop a financial plan. A financial plan gives you
both a road map as your guide to managing your Not getting married but in a wedding? 7
finances. It also helps you prioritize where your Expect to spend about $1,000 per wedding.
money will go.

Checklist

5 Financial Decisions You Need to

Make as Couple
6 US Census
7 http://money.cnn.com/ 2016/04/05/pf/average-wedding-costs/ and KNOT Survey
MANAGE LOVE & MONEY 19

SOMETIMES IT DOESNT WORK OUT

Average Cost of Divorce Legal Fees8
If you find yourself in a marriage that isnt working, get help from financial professionals to make
sure you understand all of your financial options. One of the common mistakes people make is
underestimating the future value of assets, such as: $12,800
401(k)s Pension plans

Permanent life insurance Stock options

Homes

Impacted by Divorce?

Learn how to help minimize the

financial impact.

8 Martindale-Nolo, national divorce survey 2016

THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
BUY A HOME 20

Build Your Career

Save & Invest for Today Buying a home is typically

one of the biggest financial
Save for Retirement
decisions you'll make.
Pay Off Debt Make sure you're ready.
Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern
Mutual
BUY A HOME 21

SOME HOME BUYING BASICS What the First-Time Home Buyer

When youre in the market to buy a house or condo: Looks Like
Aim to spend no more than 30 percent of your take-home pay on mortgage and related
Average age: 31 9
expenses (taxes and insurance).
Status: Single (60%) 9
Put at least 20 percent down, so you can avoid having to pay private mortgage insurance.
Make sure you include all costs, such as taxes, homeowners association dues and Median income: $69,400 9
insurance, as you determine how much you can afford.
Spent: 2.6 times their
Revisit your disability income and life insurance policies to make sure youre annual income 10
adequately covered in case something happens to you and you're not able to pay the bills.

How's your credit?

Most mortgage lenders require a credit score of at least 620. Beyond qualifying for a mortgage,
credit scores also impact the interest rate youll pay. Resource
Learn more with our Guide to
Credit Scores.
9
http://www.realtor.org/news-releases/2015/11/first-time-buyers-fall-again-in-nar-annual-buyer-and-seller-survey
10
http://zillow.mediaroom.com/2015-08-17-Todays-First-Time-Homebuyers-Older-More-Often-Single
BUY A HOME 22

BUYING, BUT NOT MARRIED? Moving in Together?

If youre living with your partner, there are unique things to consider. Make sure you know Unmarried couples living together
who is legally responsible for paying for the house or apartment or what youre entitled has increased by 30 percent
to if you split up. in the last decade.11

Learn More

The top four financial planning

challenges faced by unmarried couples

Should you share bank accounts?

The pros and cons of shared finances

11 http://www.cdc.gov/nchs/data/nhsr/nhsr049.pdf
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
TAKE CARE OF YOUR FAMILY 23

Build Your Career

Save & Invest for Today Families take on many shapes

Save for Retirement
and sizes. When there are
people who care for you and
Pay Off Debt vice versa, its important to
Manage Love & Money be strategic about how you
care for and protect them.
Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern
Mutual
TAKE CARE OF YOUR FAMILY 24

KNOW WHAT TO EXPECT WITH KIDS

Resource
Kids are expensiveyep, we said it. Now, instead of feeling overwhelmed or simply confused
about where to start, put yourself in the drivers seat. Just like most things in life, with kids there Get the Financial Boot Camp for New
are MUST HAVES and NICE TO HAVES. The key is knowing what to expect and creating a Parents, which highlights critical financial
plan to budget for it. Our Financial Boot Camp for New Parents can help you make sense of it needs if your family is growing.
all and know what to tackle first. DAY CARE DIAPERS FORMULA

Be aware of the costs in the early years.

Once you bring your new baby home, here are theAverage top five new expenses
$11,666
($3,500$18,000)
youre likely
$800 $1,260
to have during the first few years of his or her life.12, 13
DAY CARE DIAPERS FORMULA CLOTHES MEDICAL COSTS

$11,600 $800 $1,260 $720 $1,297

CLOTHES MEDICAL COSTS

The total? About $15,500 for each of the first few years.
12
BMO Harris Bank, Raising a Child Survey, February 2014.
13
United States Department of Agriculture, Expenditures on Children by Families, August 2014.

$720 $1,297
TAKE CARE OF YOUR FAMILY 25

PUT AN ESTATE PLAN IN PLACE

Resource
If youre over 18, you should have a basic estate plan in place, even if you don't have a spouse
or kids. These plans identify who will help take care of you if youre unable to make health or Want to understand more about
financial decisions. The same goes for your parents; now may be the time you want to start these important documents?
talking with them about the plans (if any) they have in place. Use our Estate Planning Guide
for help.
We recommend all adults have the following three documents:
YOUR ESTATE PLAN:
IS A TRUST RIGHT FOR YOU?
You take care of your family and work hard for the things youve
acquired. You take the necessary steps to ensure your familys
taken care of. Why wouldnt you put in the same effort to care
for your loved ones after death?

Estate planning isnt the first thing you wake up in the morning
thinking about. Often it requires us to discuss uncomfortable
questions and make tough decisions. A better way to view estate
planning is as a way to provide for your loved ones even after
your deathan objective well worth the effort.

But there are many people who havent taken the appropriate
steps to ensure their wishes are documented properly in an
estate plan should something happen to them. Whether youre
just getting started or want to ensure your estate plan has the
right pieces, this guide will help understand your options and ..............................
take the next important steps.
An estate plan is all about
IN THIS GUIDE, YOU WILL getting the right things to
the right people at the
Provides instructions to your Identifies who will make Identifies who will manage
LEARN ABOUT:
Common obstacles to estate planning and how to right time.

physician about how much health care decisions on your your personal financial affairs
overcome them.

The most important questions to consider when

estate planning.

or how little medical behalf if you cannot if you become unable to The key documents everyone should have in a plan
and when they need to be updated.

intervention youd want do so yourself Trusts: the various types and the goals they each address.

if you cant communicate

Once you begin to accumulate assets, get married or have children, youll want
to add a will to your plan that will also identify guardians for children.
TAKE CARE OF YOUR FAMILY 26

PROTECT YOUR LOVED ONES & THEIR LIFESTYLE

Resource
Youve worked hard to get where you and your family are today and for the resources
to build an even greater lifestyle. Life insurance helps you protect that lifestyle should Learn more about life insurance
something happen to you. in this short video.

There are two main types of life insurance: term life and permanent life, each offering
PERMANENT
many features. Its common that people in their 30s own a combination of both. LIFE INSURANCE

TERM LIFE INSURANCE PERMANENT LIFE INSURANCE

+ Short-term protection + Long-term protection

+ Affordable + Flexible financial security

Learn more about the options
+ Satisfies temporary need + Accumulates cash value available to you in the Term or
+ Tax-free death benefit + Tax-free death benefit Permanent Life Insurance guide.
THE ULTIMATE
GUIDE TO FINANCES
IN YOUR 30s
GIVE TO OTHERS 27

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt One of the most rewarding

Manage Love & Money
things you can do with your
money is to share it with
Buy a Home others, supporting people
Take Care of Your Family
or a cause you care about.

Give to Others

What's Next

Checklist

About Northwestern
Mutual
GIVE TO OTHERS 28

MAXIMIZE THE IMPACT OF YOUR GIFT

Support Causes You
A financial professional can help you take advantage of tax deductions, provide options on Believe In
the best financial vehicles to give through and help you grow your financial assets so you
can give even more. Socially responsible investing allows you
to make a positive impact on the world by
MINIMIZE THE IMPACT ON YOUR CASH FLOW investing in companies that mirror your
own values.
When you include giving as part of your personalized financial plan, you can strategically
save for your cause and still meet your other financial priorities.

Dont forget the paperwork.

If youre planning for income tax deductions on any charitable donation youve made, youll
need proof of your gift. Get a receipt or acknowledgment letter from the charity, and keep it
with your tax files. The record must show the name of the charity, the date of the donation
and amount of the contribution.
WHAT'S NEXT 29

PULL IT ALL TOGETHER

Don't wait. Get started now!
You may feel like every one of your hard-earned dollars is being stretched thin for life's priorities.
By focusing on five key actions of money management, you can find the right balance between Want a professional to help you?
living the life you want today and making smart decisions for the future. Well have a financial professional get
in touch to help you get started on
the right foot.
SAVE SPEND GROW PROTECT GIVE

What's next?

Dont feel like you have to do this on your own. A financial professional can help you clarify
your goals and develop a plan to reach themall of them.

If youre already working with a financial advisor, use this guide for reference as you
review and adjust your financial plan over time.

If you dont have a plan (or are not yet working with a financial professional), dont
worry. Well work with you to develop a personalized plan based on all of your goals,
hopes and dreams for the future.
CHECKLIST 30

SAVE: PROTECT:
Build your emergency fund. Purchase individual disability income insurance.
Set short-term and medium-term financial goals. Get life insurance to cover your growing financial needs.
Contribute to a retirement account. Get estate-planning documents in place.

SPEND: GIVE:
Put together your spending plan (budget). Think about the organizations you want to support and how.
Pay off high-interest credit card debt.
Understand your options on student debt repayment plans.
Build and maintain great credit.
Resource
GROW:
Invest early to take advantage of the power of compound interest. Download this checklist to keep on track with your goals.
Start to learn about investing.
ABOUT NORTHWESTERN MUTUAL 31

TAKE CHARGE OF YOUR FUTURESTART TODAY

Share With Others:
When you work with Northwestern Mutual, you'll have support throughout your entire
lifetime. Throughout our nearly 160-year history, we've been helping people find financial
securitywhether they are just starting out, planning for a family or preparing for retirement.
Share This Guide
Contact a financial professional today to get started!

Share This Guide

WE LEAD THE WAY WITH UNSURPASSED STRENGTH AND STABILITY
Northwestern Mutual has the highest financial strength ratings awarded to any life insurer, Share This Guide
helping ensure we'll be here when you need us most.

A.M. Best Fitch Moodys S&P

A++ AAA Aaa AA+ Connect with Us:

A.M. Best Company, A++ (highest), 5/2016; Fitch Ratings, AAA (highest), 5/2016; Moody's Investors Service, Aaa (highest), 1/2016; and Standard & Poor's,
AA+ (second highest), 6/2016. Third-party ratings are subject to change. Ratings are for The Northwestern Mutual Life Insurance Company and
Northwestern Long Term Care Insurance Company.
Please remember that all investments carry some level of risk, including the potential loss of principal invested.
They do not typically grow at an even rate of return and may experience negative growth. No investment strategy
can guarantee a profit or protect against a loss.

This white paper is not intended as legal or tax advice. Northwestern Mutual and its financial representatives do not
give legal or tax advice.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee,
WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries.
Northwestern Mutual Investment Services, LLC (NMIS) (securities), subsidiary of NM, registered investment adviser,
broker-dealer, member FINRA and SIPC.

05-4042 (0916)