“Freedom and wealth is an outcome of “Time”; the most precious asset that we all possess. Time however is a variable to each individual as our actions from our choices determine the longevity and returns from this asset. To maximize the return on this asset is determined by the energy that we put forth in developing our financial education, relationships and health.”
In your twenties your future is too far away to think about and what is important is the “here and now”.
Your financial habits are not great, as you will have probably maxed out your credit card, delayed any savings and focused mainly on pleasure spending.
Your twenties are the time to have fun and its ok to make financial mistakes. However, the bad financial habits that you have accumulated in your twenties need to be gone before you head into your thirties.
Being in your thirties is different, you become more responsible and yes a little more serious about life.
Living in a cold damp house where it was party central every weekend doesn’t seem so appealing. The comforts of a warm centrally located apartment with your partner or a flatmate is the place you really want to be. You start to drink wine and your parties go from 100’s to dinner parties of 6! No police get called to your dinner parties!
You will find that children, family, marriage, buying houses are the main topics of discussion amongst your friends.
Shopping. Bills. More bills. Your health. Appointments. Money. Credit cards. Rent. Mortgages. Tax returns. Work. Some of these things were present in your twenties, and if you really wanted to ignore them you could but now you can’t.
If you make the right financial choices in your twenties, many of the thirty something life events become not so stressful and far more pleasurable. The reason why,is because you have a good financial base!
However, if you don’t make the right financial choices in your twenties, your life will be one of financial struggle – not only in your thirties but for ever.
“Money is only a tool. It will take you where you wish, but it will not replace you as the driver” Ayn Rand
By pursing these 10 Financial Goals before you reach 30, you will have set the foundation for you to enjoy financial security and independence for the rest of your life.
1. Know Your Personal Financial Profile
“When it comes to money and so many other things in life, understanding your weaknesses and strengths can help you with your future plans.” Tagene Brown-McBean
I know that this doesn’t look like a financial goal however it is the key to your success in achieving your financial goals. You need to know what your values and beliefs are around money.
What is your risk profile? Does spending money give you pleasure? Have you got good saving habits? When you see something you really want, do you justify to yourself how much you deserve it even though you cant afford it. Do you like credit cards? Are you ever able to pay your credit cards off in full every month?
Do you bury you head in the sand when it comes to dealing with money?
There are lots of financial personality profiles assessments on the internet and many of them are free. Here is a link to a great article on personalities and money. How Your Personality Affects Your Finances
Go and find out what your relationship is like with money. Then decide if you have the commitment, desire and motivation to pursue these financial goals before you turn thirty.
2. Write Down Your Financial Goals.
“By failing to prepare you are planning to fail” Benjamin Franklin
Once you have an understanding of your financial personality, you can then start to plan your financial future.
Write down your financial goals – short, medium and long term goals.
The timeframes you set for these goals need to be aligned to your financial personality.
Use the KISS and SMART metrics to write your goals. (Keep It Simple Smart) and (Specific, Measurable, Action, Realistic, and Time Bound).
This financial goal needs you to be disciplined and focused. If you struggle with these personality traits – thats ok. Find someone who can help you or go on the internet and look for templates that you can use to guide you to writing your goals.
Find out how to write your financial goals that are aligned to you and your current priorities in life.
If you don’t take the time to put a financial plan in place by the time you reach your thirties, you increase your chances of failing to achieve those financial outcomes that will enable you to live your dream life.
3. Stop Impulse Spending
“Remember, buying something is not the problem
Give up your bad habits around spending. The sooner you give up the habit of impulse spending, the better off you will be financially.
Try to understand why this behaviour is important to you as it does not serve you well. This behaviour does not support wealth creation. If you continue to spend impulsively your financial future going into your thirties and beyond, will be a struggle.
Don’t stop enjoying your life and spending money all together. You should be spending money on things that make you feel good. Just be realistic about your spending habits. If your spending is reckless and impulsive, then do something about it.
4. Get an App To Track Your Expenses
“There are plenty of ways to get ahead. The first is so basic I’m almost embarrassed to say it: spend less than you earn” Paul Clitheroe
If you are in your twenties and you have a negative perception or no motivation to budget or track your expenses you need to change right now.
Holding on to these beliefs will hold you back from having any financial security in your thirties and later in life. Keeping a track of of your expenses is one of the key financial habits that will enable you to have financial wealth and independence in your life.
There are some amazing budgeting apps that you can download. Go search for these apps as they enable you to budget and monitor your expenses with ease and no stress.
When you reach thirty it is essential that you are able to live within your means otherwise you will find yourself drowning in debt.
Remember your thirties will bring more expense and cost to your life. Good budgeting habits will ensure you are prepared to manage these extra costs and live within your means.
5. Learn About Investing
“Formal education will make you a living; self-education will make you a fortune”. Jim Rohn
To create long term wealth you need to become educated about investment.
The best time to start getting the basics sorted around investment and start building your wealth is now – as you head into your thirties.
With sound investment planning in your twenties you should have an investment portfolio up and running by the time you are thirty.
Investing in your future now, before you turn thirty, ensures that you will reap the financial rewards of security and independence for the rest of your life.Advertising
6. Learn How To Manage Your Debt
“Debt is like any other trap, easy enough to get into, but hard enough to get out of.” Henry Wheeler Shaw
Don’t borrow money to buy depreciating assets is a key rule to managing debt.
Debt can work in your favour, but only when you use it for things that tend to rise in value over a reasonable period of time.
Using borrowed money to invest in a house, a business or an investment (which includes your education) is the sensible use of debt. However you still have to pay the debt of and if you don have a plan to manage your debt, then interest will compound and your debt will triple.
Borrowing to buy a new phone, pair of shoes, TV, or car is not a smart use of debt.
Get rid of your BAD DEBT – credit cards, higher purchase or car payments. Avoid credit card debt like the plague.
There is a very simple rule to follow when you spending, if you have to borrow money for it, then you simply can’t afford it – that includes using credit cards.
7. Get Insurance And Start Saving For Emergencies
“The habit of savings is itself and education; it fosters every virtue, teaches self denial, cultivates the sense of order, trains to forethought and so broadens the mind” T.T Mauger
In your twenties the concept of an “personal emergency” is never thought about because it just doesn’t happen in your twenties. If an emergency occurs usually your parents will sort it out.
However that it all changes in your thirties and things like Life Insurance, Income Protection Insurance and Mortgage Payments start to appear in your lives.
You need to protect your future. Setting up a fund and getting insurance for you to call on in an emergency is a great financial goal to have underway as you enter into your thirties.
8.Stop Relying On Your Parents For Money
“You cannot help people permanently by doing for them, what they could and should do for themselves.” Abraham Lincoln
If you are still relying on your parents to financially support you when you are thirty, you should be worried.
I get that you may have a student loan and in your twenties your parents were your ATM machine however this is a bad habit to maintain as you go into your thirties.Advertising
It is pretty much guaranteed that if you have bad debt and still rely on a monthly allowance from your parents then your chances of having financial independence and creating wealth in your life will not happen.
That is your reality.
9. Start A Retirement Account
There is no way you would have missed all the hype that has been promoted about how important it is to start saving for your retirement in your twenties.
The book Get A Financial Life by Beth Kobliner focuses on helping people in their twenties and thirties get their personal finances sorted. In her book Beth Kobliner outlines an example to show how the power of time on your investments works.
“Suppose you set aside $1,000 a year from age 25 to age 64 in a retirement account that earns 5% a year (historically, stocks return about 8%, but we’ll be conservative). That’s $39,000 total you invest. By the time you turn 65, you’ll have $126,840. If you don’t get started with saving until you’re 35, you’ll only have $69,760. Starting just ten years earlier would have doubled your total. Yes, doubled.”
When you are investing in your future with the goal to achieving financial freedom, then time is your biggest ally. Start saving and investing now before you reach thirty.
10. Develop A Financial Abundant Mindset
“When we do what we love to do; when we are generous and seek to help others; when we live within our means and save money; when we always seek a more specialized knowledge…we then have an abundant mindset, and are bound to realize financial abundance”.
How you handle your relationship with money in your twenties will influence how you live the rest of your life.
Starting to develop a mindset that supports financial abundance, will help you to prosper in the future both financially and personally.
A person who has a financially abundant mindset is one who has developed knowledge and skills to acquire financial wealth however balances that with philanthropy and generous giving.
Pursing these 10 financial goals before you reach thirty will guarantee you financial security and independence for the rest of your life.
You have the power and the choice as you head into your thirties to create the life you desire.
I hope you choose well.Advertising
‘Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery” Charles Dickens
Last Updated on June 1, 2020
10 Reasons Why Following Your Passion Is More Important Than Money
Elite Daily have got some great points as to why you should chase down your dream job, regardless of how much the wage is. If you’re feeling unfulfilled in your career, maybe it’s because you’re on a path that doesn’t connect with your passion? Maybe it’s time to steer right off that road and take a different route:
Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.
However, this is inherently problematic as this mindset leads many people to stray down a path that doesn’t best suit them. When people choose their careers, they are sometimes blinded by money and so choose to follow the paper trail. Although money is great and can buy us all the things that will temporarily make us happy, no amount of money can buy time. Time is our most valuable asset and it is something, that while on this earth, we should spend most wisely. You shouldn’t feel like you’re mindlessly wasting your life away
This generation is particularly in trouble because jobs are scarce and many of us will be stuck doing jobs we hate just because we need money. Although this may be the right move for our careers now, this shouldn’t be something we do for the rest of our lives. it is best we search for something we are passionate about. Here are the 10 reasons why you should follow your passion and not the money.
1. Working for money may seem like good enough motivation for one to keep at their career.
Every morning Monday through Friday you go to work 9 to 5 sitting their punching away the hours stressing about the work at hand. This is not a way to enjoy your life. Working for 8 hours a day 5 times a week at something that makes you miserable is not the way you live life to the fullest.
Many people who choose careers that don’t make them happy will tell you that they would all do it differently if they had the chance. You only have one life, so don’t waste it working somewhere you hate just because of the money.
2. You’re more passionate about the work you are doing.
There is nothing worse than having to wake up every morning during the week to mindlessly go do work you don’t even care about. However, this is never really an issue when you are passionate about the work you do. If you are not forced to work somewhere because of monetary constraint, you truly enjoy what you do and you never really work a day in your life.
3. You can relate more to the work and come up with better ideas.
Being forced to do work is one of the most draining experiences. While there are times at every job where you may feel the work may be draining and dull, you have to realize that not every day is going to be an enjoyable one. There are highs and lows, but when you are passionate about the work you you look past the dull days. Your creative process is also different. You are more inclined to come up with creative ideas when you like what you do.
4. Work doesn’t feel like it’s forced upon you.
When you value money over your overall health and your passion, you will find yourself in an endless cycle of misery. Work no longer becomes a career or a journey, but more of a taxing nuisance on your mind and body that has to get done.
Every day that you go to work with this mindset you begin to hate your job more and more. While many people feel that they must work hard to retire and have money to enjoy themselves, what’s the point of enjoying yourself in your later years when you spent your life being miserable?
5. No matter how much money you make, nothing will help you overcome the feeling of doing something you hate.
Many accountants come into corporate America, put in reckless hours during the week and make a great paycheck on pay day. Many of them have all this money piled up, but they never really get to enjoy the fruits of their labor because their labor takes up most of their lives.
Many of them hate their jobs because they aren’t really passionate about what they do. Is there a worse feeling than doing something you hate? Eventually this hatred will cause stress and in the long run, it will have lasting effects on your health.
6. You are more inclined to work later hours.
When you work somewhere that you are passionate about, putting in later hours isn’t as much of a burden as it is when you don’t like what you are doing. To you, putting in the extra hours doesn’t hurt as much because you don’t feel like you are forced to do it, which makes the experience that much more enjoyable.
Every industry has a busy season and without a doubt there will come a time when you will need to put in the extra hours. Will it be easier for you to work longer on something you can relate to or something you can’t stand doing?
7.You are willing to go above and beyond the call of duty.
Certain obligations at your work will require you to go above and beyond the call of duty. In certain times during the busy seasons, you may be asked to do certain tasks that are not part of your everyday schedule. It is much easier for you to put in the extra work if it’s something you actually care about. Because you are passionate about your job, you will be willing to put in the extra effort to go beyond what is required of you.
8. No obstacle will stop you from achieving success.
When you really enjoy what you do, nothing will stop you from getting your work done. Because you are passionate about what you do, you feel unstoppable and nothing can obstruct you from achieving greatness. Your passion ignites your work, and like a rocket, it accelerates you past road blocks that may come about. Any obstacle that comes your way is accepted and fought off with a creative solution.
9. Our working careers will consume most of our lives, so we might as well do something we enjoy.
You will spend a majority of your life working and there is no other way around this fact unless you are born into a wealthy family or marry rich. For the rest of us who weren’t fortunate enough, we will be spending a good portion of our lives working in order to make ends meet.
There is no way around this, so we might as well accept the cards we are dealt. Many people go about this the wrong way because they feel like work is something they have to do rather then something they can enjoy. Once you realize that your career should be something you enjoy, then you will lead a more happy and fulfilling life.
10. You will get more fulfillment when you finally make it.
There are few feelings better than achieving a level of success you set out for yourself. Nothing like crossing off your bucket list of goals you set out for yourself to achieve. When you finally reach the pinnacle, it is that much more enjoyable knowing you got there doing something you love. Remember work doesn’t have to be something that you hate doing, stay true to yourself and always do what makes you happy.
Featured photo credit: Randalyn Hill via unsplash.com