If you’re in your twenties you’re probably living from payday to payday and maybe from one party to the next. We all choose different lifestyles and career paths but 30 will be here before you know it - and if you want to make sure you have a great future ahead of you, there are some financial milestones you should start thinking about now.
It does take a little discipline to become money-smart but when you hit the big 3-0 you’re almost halfway to retirement - so if you want to still be sipping on champagne in your 60’s it’s time to start getting financially fit. Here are some key goals to tick off before you hit 30:
1. Pay off your current debt
It’s difficult to start accumulating wealth if your starting point is debt, so becoming debt-free by the time you hit 30 is a must. We’re not talking about mortgage debt here – if you’ve managed to save enough for a deposit and have your own home, then well done you, you’re off to a great start!
But mortgage debt aside, if you owe money on credit cards or loans, try to get them paid off so you are debt-free by 30. Make a plan and develop a budget, then make sure that your priority each month is to pay off as much as you can afford on your credit card or loan. And if you’ve fallen into the trap of having multiple credit cards, all with balances owing and interest accruing, you can also look into consolidating all of your debts into a single loan - so you only have one debt to service each month rather than multiple cards.
2. Start saving
One thing that many financially successful people have in common is that they had their eyeballs firmly on their money from a young age. The recipe for success here is to follow the 50/30/20 rule:
3. Build a good credit score
One day you’re probably going to want to buy a new car or purchase your first home. The first thing any lender will do is check your credit rating so it’s important you start taking steps to develop a positive one. Paying off your credit card in full every month will help with this, but don’t despair if your credit score isn’t too flash – here’s how you can clean it up.
4. Build an emergency fund
Sometimes life doesn’t turn out exactly as we planned, especially in these COVID times. That’s why it’s important to build yourself an emergency fund that will help you out in the difficult phases. You should aim to accumulate enough to cover your living expenses for 6 months. That might seem like a big ask, but slow and steady wins the race and if you just start putting a little away each week it will soon add up. You’ll feel a lot less stressed if you know you have a cash safety net close by to keep you secure.
5. Save for your first home
The biggest investment we all make is the purchase of the home we live in and the sooner you invest in real estate the quicker you’ll start to establish equity – and with that equity comes the buying power to invest further. Taking your first step on to the property ladder isn’t always easy and it takes a lot of discipline to save for the deposit, but it will definitely be worth the sacrifice once you become a property owner.
How to get started
If you struggle to save because you spend pretty much everything you earn, it’s time to take stock. Create a budget and focus on 1 or 2 regular luxuries that you could cut out in order to save. If you’re already in debt, consolidation is key and we're here to give you a helping hand. Just check out our fast cash loans from $1,000 to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, we can usually deposit the cash into your bank account within a few hours - so you can pay off those multiple credit card balances and focus on a single loan repayment to help get your finances under control!