It is always very difficult to plan everything in life, and almost impossible for everything to go as planned. However, life without planning may seem relaxing but not the best way to live.
On the other hand, the age of 30 is the age, when something in life begins to reveal itself and present a more meaningful sense of the future. For this reason, it is plausible that a 30-year-old has reached some basic milestones. In social life, marriage, or having a serious relationship, or having a full-time decent job and good friend circles can be examples of this situation.
To this extend, in this article, we will try to emphasize on 5 financial milestones you should have achieved before you hit the age of 30.
Be debt free
The most important factor that will make you feel free in life is being a person without debt. Especially when you hit 30, and without debt you become a tiger! It is not always easy to eliminate all debts of course. However, especially if you try to be debt free in your 30s, it will be worth it.
Is there a best way to eliminate debts?
Experts are dividing debts into two: good debts and bad debts. “Good debts” are long term and low interest loans that may allow you to add value to your life like education, buying a place to live, etc. “Bad debts” are debts having high interest rates, generally spent for consumer goods. The most known bad debt is credit card debts.
According to the experts, to eliminate your debts, higher interest debts should be paid primarily. And it is good act to finish your credit card debts first.
Create an emergency fund
No matter how we try to avoid, troubles are always find a path to block us. Incase you have a medical problem, or lose your job, or had an accident, -to be prepared-, you should have an emergeny fund. It is advised to have Money enough for 6 months of your expenses.
Create a budget plan and track your spendings
Having a budget is an important fact to manage your Money. To achieve this goal, you should create a detailed budget, and follow it. By tracking your expenses you can easily know where your Money is going. And you can stop wasting your Money in meaningless spendings. And with budget, you can achive the golden rule: spend less than you earn.
Save Money For Retirement
The most delayed issue in life is, without a doubt saving Money. Especially, when you are young and recently start to earn, it is more difficult to save Money. However, to have a good time in your retirement it is better for you to start saving Money in your 20s. Experts claimed that in the age of 30, you should have at least 20 grands. It is advised that you have saved at least your annual income at the age of 30. Never forget that, if you start saving Money in younger age, you may retire early than expected.
Have a life insurance plan
Apart from your savings for retirement, you should also have an insurance plan for yourself. First of all, if the health and dental insurance provided by your employer does not cover all, you should have a health/ dental insurance. Additionally, having a disability insurance and life insurance could be a plus.