5 Financial Goals You Should Reach Before Turning 30
Early in your career, it’s easy to get caught up in frivolous and luxurious spending habits – having fun spending your first taste of full-time income. Many 20-somethings miss the opportunity to take a solid step toward properly preparing for the future.
Here are five examples of financial goals you should achieve before you reach 30 years old.
1. Focus on Paying Off Debt
Your 20s are a great time to focus on and pay off your debt. Debt is easily accumulated as a young adult from education, travel, material investments, etc.
According to the Nerd Wallet, the average US household pays $6,658 in interest per year, spending 9% of their income just on interest. That same $6,658 could buy you 6.3 ounces of gold, which has shown itself to grow in value rather than eat away at your earnings like credit card debt.
2. Create a Monthly Budget Plan
Paying off your debt is much easier said than done, but is still very attainable with the right budget. Clearly outline your monthly expenses and set a comfortable budget to cover these without dipping further into debt. Even early in your adult life, when your budget is small and expenses minimal, it’s important to have a clear understanding of what you want to save and how you will save it. Set a goal for yourself to set aside a certain percentage of your income each month in savings. A clear budget will help you achieve this financial goal.
3. Reduce a Single Luxury
Is your budget insufficient to reach your financial goals? Consider giving up one luxury you enjoy on a regular basis.
Going cold turkey on several luxuries rarely works and often leads to even more impulse spending. Instead, choose a single luxury like your daily latte from Starbucks or one take out meal a week and remove them from your expenses. Swapping a coffee machine for that latte will save you $1,077.50 a year.
4. Build Up 6 Months of Emergency Savings
It’s good to put money into investments or long term savings, but don’t neglect saving for expenses that might pop up unexpectedly. With the GoldMoney Prepaid Card, you can easily access your savings when life throws you a curve ball. Effective long term savings will be inaccessible for some time, so once you have determined your monthly expenses, make sure you have enough funds set aside to cover 6 months of your regular expenses in case of emergency. This will cover a lost job, illness, injury, or other unexpected event.
5. Start Investing – Small but Steady
Choose a relatively diverse range of initial investments and start setting money aside from your income. A 5% savings rate is a good starting point, with a goal of 15-20% by the time you reach 30.
Make sure at least some portion of that money is set aside in hard assets, such as gold, that are not only more accessible but better protected against volatile shifts in currency.
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