Your life usually starts at 30, therefore, there are financial milestones to reach by the time you reach 30, especially if you want to live a successful life. For some, it may come naturally as life sometimes runs its course, for others, it may take a little more work.
Here are 10 milestones to reach before 30.
1. Financially Independent
Depending on mom and dad for finances is great, but not when you’re about to be 30. The top milestone to reach before 30 is to be financially independent. This milestone should be reached in your early 20’s but if not make sure to drag yourself out by the latest 30. You should have a steady job, whether it’s your career or your own business, be able to support yourself financially and have started to establish yourself.
2. Start your retirement savings
Experts say having 25,000+ in savings for retirement by the time you’re 30 is recommended. If this surprises you or you’re not even close to that number then you better get to saving. As an easy rule, you should have at least one year’s worth of your salary by the time you’re 30. If you’re not able to make that number, then start saving whatever you can now and gradually increase when you are making a higher income and make sure you’re 401k is set up as well.
3. Having a budget
Creating a budget should be done way before you hit 30. Depending on your goals, of course, is how your budget should be set up. It’s important to set goals for yourself, whether it’s buying a house, getting a car, etc, it will not be possible without a budget.
For budget tips, click the highlighted link.
4. Become an investor (side income)
Besides just a savings account and your job or business, it is important to invest your money into something that can make you more money. You can start by investing in the stock market with just a few thousand or buy a property if you have more capital to play with. If you own a property you know you will always be financially steady whether the economy is low or high.
5. Have an emergency fund
Life has its ups and downs, therefore, having an emergency fund is mandatory. You never know when your money will run out or when you will desperately be in need of funds. Whether it’s to pay the debt off, a hospital bill, buy an important product, etc, an emergency fund is always needed just in case of- well you guessed it- emergencies.
6. Done with impulse spending
The sooner you give up on shopping for things you don’t need the better. A budget can definitely help with this especially if you have set goals for yourself. However, most people don’t realize that buying things such as snacks at the check-out, eating out, buying materialistic things you don’t need at the moment start to add up. A budget can’t fix this problem- only you can. If you’re not done with impulse shopping by the time you’re 30, then you most likely will continue that bad habit for a while. Of course, you can splurge a little here and there, but if you can’t control this habit and do it all the time then its best to stop for good and start splurging on things when you can control yourself.
Although this is probably one of the hardest milestones for anyone at any age to reach, it is definitely possible and should be done by the time you hit 30. Even if you are not completely debt-free by the time you hit 30, the debt number should still not be anywhere near what it was in your early 20’s.
8. In the habit of checking your credit score and report
You can check your credit report and score for free. It’s always a good way of protecting yourself from credit card theft and simply just making sure you’re in healthy finances. You have no excuse not to do this since it’s free and it’s beneficial for you in every way.
For tips on building your credit score , click the highlighted link.
For information on protecting yourself from credit card theft , click the highlighted link.
9. On top of your monthly bills
This is excusable when you’re in your early 20’s but before you hit 30 you should make sure you get into the habit of being ahead or on top of your monthly bills. Set up an automatic account that pays your monthly bills automatically as this way you won’t have to worry about your bills and paying them.
10. A clear direction of your future
Whether this has to with your career and goals, everything comes into one. By 30 you should have an idea of the direction you want to take for your future. You should have an idea of what you want your future to look like, and the type of life you want to live. This will help you set goals for yourself which links to help you save money to achieve that goal.