financial goals to hit before 30

9 Financial Goals To Hit Before 30

financial goals to hit

Setting goals is  the best way to ensure a successful life. 

We set goals for everything from everything from grade-point averages to relationships.

In high school, they don’t stress that importance of setting financial goals, which is why so many people have no idea what’s going on when it comes to personal finance.

Full disclosure some of you will discover this list after 30...Don’t panic, it’s never too late to start achieving financial goals.

Here is a list of financial goals to hit before 30

1. Get a job or consistent side hustle – There’s no short cut here. The only way to achieve your financial goals is by having a source of income. 

I honestly believe that when you start out young, it doesn’t matter what kind of job you have. With a clear financial plan it’s possible to achieve your financial goals. This is much easier to do when your young but anyone can do it. Don’t let the inability to find a job stop you, here are 26 side hustles that you can start today.

2. Learn financial discipline – This is a difficult task for some people. Growing up we didn’t have a lot of money so it wasn’t hard for me to live frugal. This is one of those things that can be hard depending on what your used to. Make a list of your expenses go over them and see what you can weed out to save you money where you can. It can suck to get store brand potato chips, but over the course of a year savings can really add up. I have friends that always need all the newest clothes, the newest shoes, designer everything. Don’t get me wrong I like fancy shit too, but as an outsider looking in I see it’s causing slow financial death for them.

To clarify, there is nothing wrong with having nice things, I like them too, but there is a time when you can afford it.

Instead of buying the newest pair of $200 designer jeans every month, consider spending half the amount and putting the remainder into a savings amount.

You will have accumulated enough to start making investments sooner than later.

It’s a cruel irony that most of the crap that you want to blow money on when you’re young matters less when you’re older.

3. Pay off debts – I know people that went to high school with me that’s are constantly dodging Sally Mae. Pay off your student loans. Don’t be the person who’s still dodging creditor calls in their mid-30s. Be proactive in your 20s so that you aren’t paying off student debt into your thirties. Pay more than the minimum monthly payment and look into consolidating and refinancing to better terms. But only consolidate if you don’t need income-based repayment or if you are working towards forgiveness. Know what delinquencies are on your credit report. Dispute negative remarks first and see what you can get to fall off, then pay off the rest!

4. Pay off credit cardsPay off your credit cards, and stop maxing them out.  Your credit to debt ratio is a high impact factor on your credit score so it’s a good practice to keep this ratio under 30%.

5. Buy an affordable house – This is one is crucial. I don’t know what about human nature causes this, but when people start making decent money, they feel compelled to go out and get the most expensive house they can afford. It actually makes me cringe when people do this. Unfortunately when people budget for their homes, they don’t factor investment savings into the mix. If possible, duplexes make great first investments.

6. Pay off your first house – Because you have exercised financial responsibility and you lived frugally, bought an affordable house that allowed you to save weekly, you have probably built up a nice little savings. Once you have enough pay off your house. The average person will be paying off their first house for 30 years.

Paying off your house is the first small but powerful step to financial freedom.

Your living arrangements are usually your biggest expense, and aside from your insurance and taxes you have completely relinquished that burden from your financial responsibilities.

Paying off your home unlocks approximately another 30% of your income that you have access to, but before you get to too excited and head off to the Louis Vuitton store, Consider that extra cash as part of your new savings for our next financial goal.

7. Purchase rental property – You’ve paid off your first home, you have extra savings rolling in now what? Now it’s time to start making some additional income. Your not worried about trying to figure out which activities you will have to eliminate to cram in a second job because you’re ready to start building passive income with rental properties.

If your saving is good sometimes you can find a home that you can pay cash for. If not most investment loans only require a 20% down payment. A good way to quickly calculate the down payment cost is to expect approximately 20k toward the down payment for every 100k. 

Since your first home is paid off and you don’t have to worry about rent payments, you will find it gets easier and easier to save up for down payments.

Duplexes make great first investments.

8. Actively raise credit score – After you have repaired your credit. It’s time to start actively making it better. Use your credit cards frequently but rather than using it as a clutch, think of using your credit card as a credit-boosting tool. 

By creating a credit card spending plan, and making sure you never exceed a 30% debt to credit ratio, your credit will begin to steadily rise.

Also be responsible and don’t get subscriptions from to services you can’t afford, and when you do make sure that you are paying on or before your due date.

9. Know your credit score – Get an account at Credit Karma. The best thing about Credit Karma is that it constantly keeps up with your credit score without adding harmful inquiries to your credit report. Download the app. Get into the habit of checking your credit score at least once a month.

Don’t be the type of person that never knows what’s going on with their credit. 

Hint::
When someone runs your credit you shouldn’t be as surprised with your results. And try to avoid 

 

These goals are not easy to hit but if you focus, and you can hit most of these goals by the time you turn 30, you will be on the fast track towards an early retirement.

How many of these goals have you hit? Let me know in the comments section below and don’t forget to subscribe 🙂

How the Millionaire Next Door pursues Income

How the Millionaire Next Door Pursues Income

Today’s guest post comes from Matt, who is a licensed CPA and founder of Distilled Dollar where he shares how he and his fiancée went from living paycheck-to-paycheck to building wealth. With his fiancée’s help, he’s distilling down $$$ topics in pursuit of financial independence by the age of 35.

Take it away Matt…

The Millionaire Next Door, by Thomas J. Stanley and William D. Danko, is a classic personal finance book that goes in depth on a few major topics.

The overall premise is many millionaires don’t act or even look like millionaires. The specific topic I’ll pull out of the book today is the importance of financial offense AND defense. In other words, how the millionaire next door pursues income.

When it comes to accumulating financial resources and building wealth, I prefer to learn from people who have, “been there, done that.” That’s why I picked up the book many years ago.

About 1 in 15 households in America are millionaires when you include household equity. Compare that statistic with less than half of Americans having just $100,000, again, including household equity.

Many people we presume to be millionaires are, in reality, worth less, much less. In fact, one in ten drivers of an imported luxury vehicle are actual millionaires. The most common cars driven by most millionaires today include Toyotas, Hondas & Fords.




Don’t confuse rich with wealthy.


If we want to become financially wealthy then we should model the wealthy, not the rich. That’s why the book described financial defense as being critical. If we overspend our income, we will never become millionaires.


“A fat kitchen makes a lean will,” as Ben Franklin phrased it.

How Millionaires Pursue Income

 

Stanley and Danko interviewed thousands of millionaires. My main takeaway was that millionaires are willing to work harder because they understand their financial defense is in place.

Meaning, they know for every dollar they earn, they will be placing a large amount of that dollar into their investments and into their businesses.

Many affluent people know they need a strong positive cash flow going directly back into their assets as opposed to paying off liabilities.


If our income is earmarked for future purchases, then is it really our income to begin with?

Financial offense becomes more meaningful when we have a strong defense.

There are enough obstacles as it is when it comes to making additional income. The one barrier I, myself, have removed is having a lifestyle where the money’s gone before I realize it was there.

I’m always working on plugging holes in my budget to optimize my lifestyle.

Since I am young, at the age of 27, I know I’ll have plenty of time for luxury down the road. Right now, I’m focused on enjoying a lifestyle I can afford while simultaneously building wealth and resources for the next chapter of my life.

Is your financial defense supporting your financial offense? What helps you in having a winning combination?

-Matt
Distilled Dollar


To read more articles from Matt, check out Distilled Dollar.