Have you set financial goals for your future? Many people spend their 20s having fun, starting their careers and moving out of home. However, your late 20s are a great time to make sure you become truly independent by sorting out your finances and making sure you can support yourself financially.
It is an amazing feeling to be on track with your money – check out 6 important financial goals you should reach before you hit 30.
1. Start To Pay Off All Of Your Debt
Try to pay off all of your debt, including student loans, credit card debt, auto debts and overdrafts. It is important to work on clearing all of your debt; it is more difficult to save up money while making loan and interest repayments. Start with the high-interest debt and once you have your debt paid off, you can focus on saving for a better future.
Ask yourself these questions; which debt should I pay off first? Which debt has the highest interest rates? How long will it take me to pay off my debts?
2. Create A Monthly Budget Plan And Stick To It
Both paying off debt and saving up money are much easier when you have a budget plan. Sit down and write down your earnings and all of your expenses. Then set aside some of your income for the essentials; rent, bills, food and paying off debt or saving money. Whatever you have left is yours for fun! If you’re still unsure, check out this handy website to help you create a monthly budget plan.
Ask yourself these questions; How much debt can I afford to pay off a month? How long will it be until my debt is cleared? Can I start saving money now?
3. Cut The Impulse Spending
Impulse spending is a big issue for many people in their 20s. Earning your own money can be exhilarating, and many people enjoy getting to treat themselves to a pair of designer shoes or a new smartphone.
However, impulse spending makes it harder to save money, and often impulse purchases are a waste of your money.
Before you impulse spend, ask yourself these questions; Am I paying for this with my savings? Do I need it or want it? Can I wait a week to make sure I still want it before I buy it?
4. Lose A Luxury
Most people have a few luxuries that they regularly treat themselves to, from a coffee every morning to clothes every month. A good way to save more money without realizing is to pick a luxury you can lose. Keeping your other treats is important; life is for enjoying! Consider them a reward for dropping the other luxury.
If you can’t decide which luxury to lose, ask yourself these questions; Which luxury do I spend the most on? Which one is makes me the happiest? Which is the one I use most regularly?
5. Save Up 6 Months Of Living Expenses
Any amount of money you save will be useful, but setting a target often helps motivate people to stick to their savings plans. Six months of living expenses gives you a safety net for emergencies, or it could even be used to put down a deposit on a house.
If you are unsure if you can save such a large amount of money, ask yourself; How much money can I afford to save a week? If I do that every week for a year, how much money will I have? What could I use these savings for later in life?
What do you think of these tips? Do you already do them? Share this with other people you know and see what they think!
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