10 Financial Milestones to Hit before 40
I turned 30 a month ago and I felt like it was my official admittance into adulthood. I didn’t experience any kind of “lost youth” meltdown that I was expecting, but I have been doing some reflecting on my financial situation. Where do I want to be in ten years? I’ve done some research and compiled a list of ten financial milestones to hit before age 40.
1) Have debt (mostly) paid off. Start getting serious about tackling those student loans and credit card debts. Ideally, in ten years it would be great to be paying credit cards off each month and using them solely for cash rewards and discounts.
2) Have an emergency fund. Get into a routine of funding it with every paycheck. This can be crucial in helping get out of those short-term jams that always seem to pop up.
3) Establish good credit history. Everyone needs solid credit for big purchase such as a home. By 40, it would be great to be well beyond of any past financial mistakes.
4) Contribute (regularly) to a retirement savings plan. Take that first step and keep walking! When retirement seems so far down the line, it can be hard to start saving. You don’t have to start with a lot, but routinely putting money away for retirement definitely pays off in the long run.
5) Begin investing outside of retirement savings. Whether it’s mutual funds or common stocks, investing will help build long term wealth.
6) Be properly insured. Take care of yourself. If you’re married or have kids, purchase life insurance.
7) Track your money. Diligently track all your bills and expenses and make sure you’re spending less than you earn.
8) Buy a home. If you’d like to own a house, buying in your thirties is a perfect time. You’ll have at least 30 years to pay off the mortgage before you retire.
9) Cut out the impulse buys.
10) BUT, splurge every once in awhile. Whether it’s a Eurotrip or a new car, save some money and live a little. You can take care of your money and have fun with it at the same time.
Do you have any other financial tips for those of us in our thirties? Let us know!