If you are close to turning 30 (or even if you’re older…we’ll give you a pass), there are certain financial goals which you should soon accomplish. Everybody has a different situation, and matures financially at a different rate. But by educating yourself and keeping some important financial steps in mind, you should be able to put yourself on a good money track by the time you turn 30. Here are some of the things you will want to have worked out.
- Have Good Credit. Having good credit is not that difficult or complicated. But it does require consistent good choices and reliable financial decision making. Your credit history is a reflection of how you use your credit cards, how much debt you carry, whether or not you pay your bills on time, and other behaviors closely related to your financial responsibility. By 30, you should not have more debt than you can handle, especially high interest credit card debt. You should have one or more loans, either active or paid back in the past (again, not more than your income can support). You should always pay your bills on time, and you should have reliable income. If all these things are in order, you’ll probably have a good credit score, which can help you get affordable loans and better employment in the future. Crediful.com has a lot more details if you want to understand better how this works.
- Have Savings. Most Americans don’t have much in the way of savings, but that doesn’t mean that you can’t have more going on in this department. It’s important to pay off high interest debt first. If you have accomplished that, then you should start created an emergency fund. Emergency funds should be in cash, and should be enough to cover your personal and family expenses for up to 6 months, if you were to lose all of your current regular income. Savings can also work for a new house, a car, or anything else. Once you’ve saved, you won’t be sorry to have the money available, I guarantee it.
- In a perfect world, you would have started investing at 18, if not earlier. But most of us lacked that foresight during our teenage years, and have only been investing for a short amount of time by age 30, if at all. There is no point in worrying about it now. Just start today. Time is your best resource with investments. Create a Roth or Traditional IRA if you don’t have one already. Max out 401(k) contributions at work. Buy a house. Buy gold. Just put your available wealth into forms that will grow over time, and enable you to stop working during retirement if you wish to do so.
There are more ways to have a better financial life by age 30, but these are three of the most important. Get these worked out, and you should have no trouble building an excellent financial life for yourself moving farther into your future.