One of the biggest milestones in a person’s life is turning 30 years old. That’s the time when you’re slowly saying your goodbyes to being a young adult and start coming into your own. They say that with age comes great responsibilities, and on top of that pile of responsibilities is taking charge of your own finances. Money plays a big role in the lives of people—it is considered as one of the top stressors in life and could be one of the primary reasons why couples fight. So to help you get your finances on track, here’s what you should ideally be accomplishing before you hit your 30s.
1. You should already have your own emergency fund. Financial experts normally recommend having around 6-months’ worth of living expenses saved at the bank, but of course, the more you save up, the better it is for you as it can be used to buffer any financial concerns such as loss of job and/or medical emergencies.
2. You should already be anticipating and saving up for big expenditures like a house, a wedding, children, pets, cars and other similar major expenses. By factoring in these events, you can adjust your own lifestyle to cater to your future expenses and avoid going into huge debts when you decide to purchase those high ticket items.
3. You should already have mastered the art of automatic saving; meaning you automatically send a certain portion of your income straight to your bank account. In other words, it’s like paying yourself first before anything or anyone else.
4. You should already know how to live within your means without sacrificing your own enjoyment and/or happiness. This just goes into how good your prioritizing skills are. You should know which items are worth spending on and which ones are okay to fore go. Its okay to indulge yourself every once in a while, just make sure that you know how to control your spending habits.
5. You should know how to max out your 401k.
6. You should know how to invest in Roth IRA.
7. You should already have prepared a will.
8. You should have prioritized paying all your debts that are generating the highest interests.
9. During your 20s, you should have attempted to raise your credit scores.
10. You should already know how to negotiate—with proposed salaries, service providers, and the likes.
11. You should already set-up a retirement plan.
12. You should have owned, read or at least browsed through a couple of personal finance books.