Before reaching your 30th birthday, you know you need to be on top of your personal finances, but there may be some things getting in the way of that. Don’t worry, you’re not alone! I work with so many millennials who feel the same way. There are a few financial milestones to aim for by the time you turn 30. Part of the reason you may not be achieving these milestones is that you never learned about money, or you just don’t know where to start! If you feel overwhelmed, and need help getting out of your own way, start by learning how to navigate your personal financial landscape. A financial coach may be able to help you in the following areas.
Be On Your Own Financially
The first financial goal by the age of 30 is to be financially standing on your own. That means, free from your parents or other financial influences in your life. By 30 you want to have settled into your career and be in a position to support yourself financially. Being financially independent entails seeking to advance a solid career that will help you establish yourself.
Have a Good Credit History
Part of building a good credit history is living within your means, being able to pay bills on time and not depending on credit for survival. It is important to establish good financial habits, such as managing your credit well and fixing any mistakes like late payments, in your 20s in order to have a good credit history. By 30, you want to actively be working to pay down debt, including building a strategy to pay down your student loan balances. Credit card debt is a monster. Prioritize paying down high interest credit card debt first.
Kickstart Your Retirement Savings
A retirement savings plan is one of the most important financial elements to have in place before you turn 30. A good rule of thumb is learn how to save 5% of your income. Once you learn how to consistently save, you can work on moving the 5% up. Most importantly, you need a plan. It’s much more fun to save for a goal when you understand how you’ll get there. A financial mentor and coach can teach you how to get on track and stay on track for all of the financial goals and dreams you have.
Become an Investor
The first best place to get started with investing is by learning how to make wise choices with your time, and with the people you are spending your time with! You may not realize this, but you don’t invest simply with money. Your relationship with time, and others will impact your ability to reach your life goals greatly. Learn how to invest in yourself, and make sure your money is being spent wisely. Aligning your life with the right people and in healthy ways will ensure you have laid the groundwork to invest wisely in your future.
Get Adequately Insured
Financially protecting yourself through insurance is part of being a responsible adult. By the time you turn 30, you should make sure you have suitable insurance coverage, including medical and health insurance, life insurance and personal accident coverage. Not everyone needs the same amount of insurance coverage and it’s dependent upon the amount of financial responsibilities you have (kids, cars, boats, homes etc…). Start by educating yourself about life insurance and find a trusted financial professional to guide you in making the right decisions for YOU.
Establish Your Emergency Fund
In my world, I call this the “Oh $hit Fund” – my clients love it because it makes them laugh. I hope it made you giggle a bit too. The focus of an emergency fund is to allow for you to not worry about money when those “Oh $hit” moments pop up in your life. The last thing you want to have to worry about when your car breaks down or when you have an unexpected trip to the ER is money, right?!? Having money set aside in a separate account for life’s accidents will give you some peace in a stressful moment.
Ditch the Budget, Have a Plan!
Having a spending plan will help you create a strategy to achieve your life goals without the chaos month to month of not knowing where you money is going. By the time you’re 30, you want to aim to have a clear plan that guides you on spending. My clients who have clarity of their spending achieve other goals much faster. The gold in managing your finances is being able to control your spending and know what you make, spend and keep every month. I teach my clients how to track their money – and how to KEEP IT SIMPLE. Money doesn’t have to be complicated and you don’t have to have a sophisticated budget to make your life work.
Hire Financial Planning Coach, Lisa Chastain
If 30 is staring you in the face and you’re feeling stressed about all of the pressures of adulting, I get it! I work with young adults every day who are ready to take on their future and 30 tends to be that wake up call. It’s important that you don’t beat yourself up and that you learn how to take baby steps each day that will help you gain the confidence and clarity you’ll need to learn how to love adulting. If you are in credit card debt, lack insurance or haven’t begun saving for retirement, considering joining Academy PREP – my community to gain access to my unique and simply designed system for getting your finances on track, today!
Lisa is an expert financial planning coach with years of success helping Millennial women get their finances in order and start living the lives they want. Schedule a call with Lisa today to learn more.