As you enter your thirties, life can start to feel a lot more real. You are no longer a young adult but also not quite middle-aged. So, what financial milestones should you be aiming for in your thirties? Let’s discuss it!
Many people are looking to start a family and take on more responsibility at this age. But without proper planning, you may find yourself in a difficult situation.
Thus, it’s inevitable to start working towards financial independence early on so that life’s changes don’t catch you off guard.
Financial Milestones to Hit by Your 30s
It’s never too early to start forming good habits! As you approach 30, use these 11 milestones as a guide to gauge your financial development and get on the right track.
The earlier you hit these benchmarks, the more you stand to benefit.
1. A Stable Source of Income
Having a steady source of income is essential for achieving financial success.
Job security is the key here, so if you haven’t already, start to invest in yourself and your career. If you’re already in a secure job, consider ways to increase your income.
Whether it’s taking on additional responsibilities or going back to school for a higher-paying job, take steps to ensure you have a reliable and steady income.
2. Paid Off Credit Card Debt
Credit card debt can be a major burden, so try to pay it off as soon as possible.
It’s common to overspend through credit cards in your 20s. But it would help to clear all the accumulated debt once you reach your 30s. It’s time to start with a clean slate!
Make a budget and focus on repaying the debt with the highest interest rates first.
If you’re having difficulty paying it off, consider transferring the debt to a credit card with a lower interest rate or taking out a personal loan.
3. A Substantial Emergency Fund
“Hope for the best but prepare for the worst.” A medical emergency, unexpected vehicle breakdown, or a job loss can happen to the best of us.
So you should always be prepared for such financial emergencies.
Having a sizable emergency fund is very important for the unexpected. Aim to save at least 3-6 months of your salary in a separate account.
This will help you if you experience a job loss or are hit with a significant expense.
4. A Side Income
Generating a side income can help you reach your financial goals faster.
Take advantage of the resources available and start making money on the side.
You can use this income to make an emergency fund or pay for your loans.
You can also use this extra money to invest in the best savings plans for wealth building.
5. A Good Credit Score
A good credit score is critical for many reasons. It can help you secure a loan or a mortgage and can even affect your ability to get a job.
To maintain a good credit score, make sure you make all payments on time and keep your credit utilization ratio low.
Ideally, your outstanding credits should be under 30% of the credit limit provided by the credit card company.
6. Own a House
Homeownership is one of the most significant financial milestones.
When you own a house, you can build equity and enjoy the tax benefits that come with it. It also helps to establish your financial stability.
Moreover, you need extra space if your family is growing to provide everyone with a suitable standard of living.
Consider how much you can afford and start looking at houses in your price range.
7. Diversified Investment Portfolio
Investing is a great way to build wealth and diversify your assets.
Stocks, bonds, mutual funds, and exchange-traded funds are all good investment options.
You can pick and choose any of them according to your financial goal.
If you feel daunted by all those options, speak with a financial advisor to diversify your investment portfolio tailored to your needs.
8. Insurance of Your Life, Health, & house
Having the right insurance is crucial for your financial security. Make sure you have insurance for your life, health, and house.
This will protect your interest in case of an accident or illness. And insurance can also help cover the costs of major repairs on your home.
Choose insurance that best suits your needs.
To guarantee that you and your family are always insured, keep in mind to pay the premiums on time.
9. Thought Process for Multiple Income Sources
You should think about your regular income. But you also know that your side income will not enough to survive in this era.
10. Side Skills
The age of 30s is very important for every person.
So in the future, you should learn different things for skill building.
If you have a skill in a different field then you can use these skills to generate extra income and improve your professional life.
11. Build Support for Your Partner
I know many peoples are getting married in this age group. So it’s also important you should think about your partner too.
You should support her/him in a good career scope and teach them some new ways to survive in life. This will create more trust between you both.
If you want to lead a happy and worry-free life, it’s vital to achieve these financial milestones for yourself and practice sound money management.
Start saving early, invest smartly and be ready to handle tricky times without letting them affect your finances.