5 Crucial Financial Milestones You Must Achieve Before You Turn 30
For every working individual, your 20’s are the years when you are carefree. You live your life on the go, make mistakes, and you learn from them, but when you hit 30, suddenly you start feeling more serious and also develop a different perspective towards various aspects of your life. It is at this age that you start to think about turning your dreams into reality by buying your own home, having a nice car, starting your own family, and so forth.
It is the perfect age to ensure a stable financial growth as you have minimal liabilities at this age. As you will age, your responsibilities will only increase with time,and it means that you need to be financially independent and strong to be able to enjoy a burden-free future with your family. As such it becomes necessary for you to ensure that you have laid a strong financial foundation in your 20’s to be able to enjoy your life to the fullest in your 30’s.
Here are 5 crucial financial goals that you must achieve before you turn 30:
1. Be Debt Free: During your 20’s you might have taken an education loan for your studies,or you might have built up Credit Card debt. Whatever the case may be, you need to prepare a debt payment plan and work towards clearing off all your loans and debts by the time you are 30.
As you hit the age of 30, your responsibilities are only going to increase, and a man pressed under the burden of debt can not enjoy his life to the fullest. So, it should be your top-most priority to ensure that you clear of all your debts as soon as possible so that can you start planning towards your future with an open mind.
2. Create a Good Credit History: In the present times, a good credit score and good credit history are two of the most important factors considered by every banker and financer for approving loan applications. If you are planning to buy a home after you are 30 years old, you would need to apply for a Home Loan.
Without a good credit score and decent credit history, your dream of owning your own home might always remain a dream. Plus, when you have a good credit history, you also get concessions on current Home Loan interest rates. As such it is mandatory for you to exercise strong financial discipline and manage a good credit profile.
3. Save for Home Loan Down Payment: You would be planning to start your family by the age of 30 and would also be planning to buy a home. So, you should start saving towards the down payment as it would make it easier for you to get the required Home Loan for buying your dream home. It also enables you to negotiate better with the lender and get preferential Current Home Loan interest Rates, which will save you a significant amount of money.
A Home Loan usually is to be paid over 20 years,and if you make a significant down payment, your EMI (Equated Monthly Instalment) burden would be less. So it would be wise for you to start early to make sure that you are still working by the time your Home Loan is paid off and you can thus live your retired life peacefully in your own home.
4. Start Your Retirement Fund: You should start contributing towards your retirement fund from the age of 25. If you haven’t done it till now, it’s the perfect time to start. If you cannot spare a lot of money and have many other expenses to take care of, you should contribute at least 5% of your monthly salary towards the retirement fund.
This way when you retire by the age of 60, you would have a considerable amount in your retirement fund, so that you can spend your retired life peacefully. You do not want to be dependent on anybody in your old age and a retirement fund exactly helps you with it.
5. Start Investing: Savings only will not suffice for your future needs, you need to invest the savings. By investing the idle lying money, you get to make it work for you and earn interest on the same. If you make it a habit of investing from an early age, you will have a sufficient amount with you when you retire. You will be able to live a more enjoyable life if you have enough money with you. You have multiple options to invest your money in such as fixed deposits, mutual funds, shares, and so on. Select the ones you prefer and start creating your investment portfolio today.
If you are able to realise these financial goals before you hit the age of 30, you will be able to enjoy your life in a better way and turn your dreams into a reality.
Also Read: Tips for Tackling Financial Issues for Women
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