Money Milestones You Need To Hit Before You’re 30
Short:
Being in your 30s can be overwhelming at times with constantly trying to have a work-life balance and manage to pay bills on time. Monetary success is a very subjective term and it differs from person to person but there are a few money milestones that one should aim to achieve before they turn 30.
Blog:
When it comes to money milestones, keeping your money on the right track is essential. After all, now is the time to set the foundation for a bright future. People have different financial goals and ambitions depending on their own financial situations. There is no one-size-fits-all solution for everyone, but here are the milestones that can help you on your way to success as you grow older.
#1 YOU'RE FINANCIALLY INDEPENDENT OF YOUR FAMILY
Undoubtedly one of the biggest milestones to accomplish before you turn 30 is to be financially independent. You must be capable of supporting your own expenses without any financial support from family members. Your primary goal should be to be self-sufficient. Nothing feels greater than to lead your life on your own terms.
#2 YOU’RE PAYING YOUR CREDIT BILLS AND ARE DEBT-FREE
Promptly clearing your credit card bills and remaining debt-free can not only keep you worry-free, but also help improve your credit score. In their 30s, people often try out new things to expand their sources of income. In such a situation, a good credit score can come handy. Whether it's setting up a new business venture or taking home loans, a good credit score can stand you in good stead.
That is why paying off your debt should be given priority. Budgeting can help you manage your debt payments and other miscellaneous expenses and remain on top of your credit card bills.
#3 YOU HAVE A HEALTHY INVESTMENT PORTFOLIO
All the financial advice starts from “start investing early” and it is essential. Don’t let your money sit idle in your savings account, rather invest it and let it earn more money for you. Ideally, one should start investing as soon as they have income and by their 30s, they should have a healthy and well-managed investment portfolio.
A well-managed investment portfolio can be looked at as a security fund in the long term. Fairly liquid, with good returns on investment, your portfolio should grow as you grow older.
#4 YOU HAVE A STABLE SOURCE OF INCOME
Tired of having relatives asking you about your salary? Well, the concern is not about how much you earn but whether or not you have a stable source of income. Having job security and a stable inflow of money every month is gratifying and helps build confidence.
Along with this stable source of income, it is also essential that one strives to create sources of passive income. To fulfil not only your own but also your family’s needs, you should have multiple sources of income.
#5 YOU'VE ESTABLISHED AN EMERGENCY FUND
Emergencies are always uninvited and one should always be prepared for them. Be it a medical emergency, family crisis, or getting laid off, an emergency fund keeps you protected and safe.
You should always be prepared for the worst. You should keep aside at least three, ideally six months of your salary in a savings account as an emergency fund.
#6 YOU’VE SET FINANCIAL GOALS FOR THE NEXT 30 YEARS
If you have made it through here and hit all the previous milestones, it's time for you to take the next step. The next step is for you to set financial goals for the next 30 years. After being financially independent, one needs to know how to sustain at that level and move towards financial abundance.
Plan for your retirement, and start saving for it. Ideally, one should also plan for the expenses that might come as the family expands - education for your children, their marriage, health insurance, etc.
The most important lesson you should remember in the pursuit of the above milestones is that you’re competing against yourself. Your aim should be to do better each day. Earn better, save better, make wiser financial decisions and grab all the opportunities that come your way.
So, which of the milestones have you already achieved? Or what plans do you have to achieve them? Keep working towards these milestones and set foot on your journey towards a better financial future.
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