For many people, their 20s is about having fun while their 30s is more about family and home. Make sure partying, travel and other fun stuff doesn’t take its toll on your finances and put you behind the eight ball when you decide it’s time to settle down.
But as you get older, the stakes get a little higher. Therefore you’ll want to make sure you can take care of these five financial milestones to reach before you hit 30 and give yourself a great chance of achieving the things you want to out of life.
1. Student debts paid out:
Owe money for study or getting a trade qualification? The sooner you can pay if off, the better. Student debt is unfortunately becoming one of the most crippling financial issues facing young people today and their future ahead. Once you’ve successfully paid off a debt, this enhances your credit rating and your ability to secure finance in the future. It will also free up more of your income to use and direct towards other goals you might be working towards.
2. Consolidate your debt:
Do you have a number of different debts, like credit cards, personal loans and interest-free deals? If so, you could be paying vast amounts of interest that make it hard to ever get on top of what you owe. Talk to an expert who can help you consolidate all these bills into one more manageable repayment and pay your overall debt out faster.
3. Super consolidation:
Have you held a number of different jobs all with different super funds? While retirement and super might be the furthest thing on your mind in your 20s and 30s, different funds have different fees and you could be losing out big time. Research and find a fund that best meets your needs and rollover all super balances into this.
4. Saving a deposit for your home:
Having your own place to call home will more than likely be something you want in your 30s, particularly if you want to start a family. To achieve this you’ll need a nice healthy deposit for a home loan. If you don’t have any savings, then you’re living beyond your means and it might be time to take a look at your finances and restructure accordingly.
Figure out your financial goals:
Often, financial goals and life goals go hand-in-hand. Where do you see yourself in five to ten years? Would you like to do some study, travel, have a family or start a business? Nothing in life is certain and things change. You can however, develop a rough mud map of where you’d like to go and how to get there. Money is the key as it opens up more choices for you and will most likely be the thing that stands in your way of your goals if you don’t have it. So be proactive and start planning for the future.
Adulthood is all about being independent and responsible and this applies particularly to your finances. While society and peer pressure focus heavily on having the latest gadgets, looking good and partying, these things will become less important to you as you approach your 30s. What type of financial position do you want to be in then? Take control now and you’ll reap the rewards for the rest of your life.
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