Here are 11 financial milestones you should reach by the time you turn 30!
The big three-oh is coming sooner than you think. Ever since I was little I always imagined that by 30 my life would be put together and I would be happy and successful. With it being just 4 short years away, I find it more and more imperative that I put in the work now so I can achieve my goals.
While it is important to enjoy the journey and not set a “timer” on your life where you constantly chase milestones, I do believe setting goals provides proper direction.
I am proud to say that I have already achieved some of these 11 financial goals, but I have a long way to go for the rest!
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LIVE WITHIN YOUR MEANS
One of the most stressful things financially is to live paycheck to paycheck. This can be boiled down to either not earning enough to support your lifestyle, or overspending your income. Whether you need to curb your online shopping or find a side hustle, you can climb your way out of this.
Have a fully funded 6 month emergency fund
This is extremely important for me as I am self-employed. I earn commissions irregularly throughout the year and I have to be financially prepared for months where I might not earn commissions.
Even if you are on a salary, the job market is unpredictable and an emergency fund will provide peace of mind. I would recommend saving anywhere from 3-6 months right now, but aim to save at least 6 months of essential expenses by the time you’re 30.
Pay off all consumer debt
Credit cards can be extremely difficult to pay off due to their insurmountably high interest rates. Your credit card debt can be a huge detriment to your financial health, credit score and ability to obtain any future financial goals you set for yourself. Prioritize paying off your consumer debt as one of your financial goals!
Max out your retirement
One of my new financial goals is to max out my Roth IRA and 401k every single year until I’m 30.
This is quite a hefty goal but at the very least I urge you to reach your employee match benefit (if you have one) or max out your Roth IRA account. If you match your employee contribution you are literally getting free money from your employer! Take advantage of this perk as soon as you can!
There are numerous different retirement accounts and they each have their own designated contribution limit so be sure to research what their limit is.
Buy or invest in a house
I bought my first house at 25! My goal is to buy at least one other property by the time I’m 30. In the future I’d like to focus more on real estate investing in income properties. If you live in an area with astronomical home prices I urge you to consider purchasing an investment property in a more affordable location. I am a huge believer in real estate investing and educating yourself on it as early as possible.
If your area offers affordable home prices compared to the rental costs then I encourage you to get your foot in the door by purchasing a starter home that you can rent out in your future. When home shopping make sure you’re considering areas with great rental opportunities and staying aware of all of the hidden costs involved in buying a home.
My next financial goal regarding real estate would be to purchase a duplex and rent out both units for maximum cash flow. A good way to househack would be to live in one unit and rent out the other, I just don’t think I would enjoy living in such close proximity to my tenants!
Be in a career with endless growth
If you feel like you have peaked at your career by 30 then you need to find somewhere new to go. I find jobs to be the most rewarding when they’re challenging me and there is room for growth both financially and intellectually.
Perhaps you need to pivot your career path or you need to obtain a new certification and chase an opportunity you have been eyeing. It is important to be working somewhere that rewards and values you for your efforts.
Credit score in the 700s
Your credit score matters more than you think. It is checked for purchasing a home, car, or cellphone. Be mindful of paying your credit cards off every month and focusing on maintaining a high score.
Donate to charity or volunteer
Donating your time or money is highly important. Not only are you helping the community, but you would also be helping yourself. There’s a lot you can learn from volunteering at your local soup kitchen, or donating to an organization you’re passionate about. I encourage you to make this a more regularly scheduled habit by the time you are 30.
Also, if you choose to donate money, take some time to read about each cause and charity and pick one that truly resonates with you.
Discuss money with your friends
Talking about money and investing can be labeled as taboo but it is very important to have open discussions about it. Since we are not taught about personal finance in school, most of us have had to self-teach by consuming books and online content.
If you are struggling to have discussions with your friends, find a supportive community online who will openly talk about money with you. There are tons of Facebook groups and Instagram communities where people collaborate and help each other work through their financial dilemmas.
Have a way to make passive income
Real estate investing is one way I am hoping to achieve this, as well as this blog and other side hustles I’m dedicating my time to. I want to get to a place where I can comfortably cover most of my bills with passive income.
Find a way you can showcase your skills and monetize them for another income stream. If you’re having trouble thinking of a passive income idea, check out these from Making Sense of Cents.
Set Financial Goals
Always continue to set financial goals. Do not be afraid to tweak them as you go along so they are constantly in alignment with your lifestyle and vision. Your next financial goal can be to buy a house, or maybe it’s to buy a boat to take your family fishing! Whatever your dreams are, you’ll have a much easier time getting there with a clear cut plan and direction.
Whether you adopt these 11 financial goals for yourself or have completely different ones, make sure you encourage yourself to stick to them. This guide will help you set better financial goals.
