The 30s is the decade where everything should feel right by now and the 20s? Well, it is all in the past (or will soon be in the past for those in their twenties). In fact, the twenties is the decade that’s supposed to show you enough ups and downs to prep you for the rest of your life. Now with living a full-fledged adult life, making the right decisions based on past experiences is crucial. It is important to begin setting smart goals the moment you read this so you can reap the fruits later on. As life would have said, “Welcome to the real world!”
To keep your financial goals in check, here are investment milestones that you should be focusing in accomplishing before blowing your 30th candle:
1) Enjoy financial independence.
While your parents are there to unconditionally love you, they are also growing old. The first goal is to be free from your parents’ obligation to give you allowance. It’s time you give them the break from taking care of you (financially that is). Your parents have done enough to support you, but rest assured they are there morally, emotionally and if worse comes to worst, even financially. However, since you can now stand on your own, make it a goal to be financially independent from your parents. It’s your turn to take the wheel, to give back and to live the life you wanted.
2) Be debt free.
By this age, you should know how to perfectly manage your finances. The goal is to surpass “the struggle is real” phase and never go back to experience those difficult times. It is best to start early, make good financial habits and get good debts instead. Good debts are debts that make your money grow through investments and loans. Start doing all of this by living within your means (if you are really a budget connoisseur then live below your wage WISELY). Again, lay down priorities and set aside unnecessary wants over needs. That way you could go off to be a debt free and responsible 30s something.
3) Keep a retirement fund.
Time is the most valuable asset a 20s something can have. A study showed that retirement planning for Filipinos averagely starts at the age of 35 and 30s is a late age to start funding life after 65. In fact, a 2015 retirement survey revealed that nearly three-fifths of Filipino retirees continued to work at least part time to supplement their income. Now in order to avoid the mistake of relying from your family and or the government for the pension program to keep you afloat during the twilight years of your life, you have to start setting aside money today. To do this, figure out how much retirement savings you need to have by the time of retirement.
4) Grow an investment portfolio.
The value of investing early can go a long way. In order to build longer-term wealth, learning to invest in stocks and shares will give you greater income in the future. To do this, read a lot about financial blogs or seek professional advice to consider your options. You don’t even have to start with a big hefty amount. As little as Php 5,000 can bring you to invest in the stock market. Eventually, you will learn how investment works once you apply it.By the time you’re 30, you’ll thank your younger self for taking the risk to invest.
5) Gain enough emergency fund.
Ants stock food for the rainy weather. If there’s something we can learn from these arthropods in a financial point of view, it’s learning how to prepare for emergency. The future is uncertain, just like an economy. It is sensitive. Things can change tomorrow in an instant. Since it is unpredictable, what you can do is to prepare for it. Financial advisors best recommends that an ideal emergency fund should be six times more than your monthly income.
6) Be properly insured.
By 30, you must be of economical valuable to your company, your business (if any), your family, your peers and to yourself. If that’s the case, getting yourself insured helps gives financial security for your loved ones. Other than that, you can also reap the benefits of life insurances. There are life insurance products that come with hospitalization, endowment cash every after succeeding number of years for the rest of your life and the retirement fund once the insurance coverage matures.
7) Have an optimistic growing net worth.
In a nutshell, your net worth is really everything you own of significance (your assets) minus what you owe in debts (your liabilities). Assets include cash and investments, your home and other real estate, cars or anything else of value you own.
Slay on your 30s! You have picked-up lessons along your 20s. You had pursued higher education in the form of a master’s degree or in pursuit of law or medicine among others. You have increased your value a ten-fold with your experience at work and you continue to learn new things and develop new skills. The world is changing and so you innovate yourself according to the times.
8) Earn more than one stream of income.
The average successful millionaire has around 7 to 10 streams of income! Now, you have to wonder how they manage to get themselves 10 income sources apart from their day job, as mentioned earlier, investments! Investments should be the assets, assets are your properties that can earn money for you. There are two sources of income, active and passive income:
An active income means you have to work to earn salaries, wages, tips, commissions and whatnot. A good example is your day job. Meanwhile, a passive income means earnings coming from rental property, limited partnership or other enterprise in which you are not actively involve. Simply think money working for you while you are sleeping, relaxing or just chilling around (Christian Grey minus the shades!). So, it’s clear the goal you should hit by 30 is gain two or more passive sources of income.
9) Drive your own car.
Sure, others would have received a car as a gift, but there’s a different feeling when you own the car you have. A car really gives a sense of freedom. The thought of traveling wherever you need or wish is something you get from owning a car.
10) Buy your first home.
Another investment milestone is getting your very own place. This is the time that the bird flies away from its parents nest. Owning your very own place comes a lot of responsibilities that can help you grow and mature. It gives you self-entitlement that you are able to look after for yourself.
11) Overcome financial crisis.
While it’s not in general sense that 20s is the decade where you’ll overcome financial crisis, it is most likely that the 20s is the time when you struggle a lot. The struggle to being responsible for yourself. The struggle to find your purpose in life. The struggle to live. Of course, one way or another, you’ll also experience drowning yourself in debts, juggling sideline jobs to make ends meet and to survive payday after payday. Well, hopefully, by the time you turn the 30th leaf, the financial crisis are all in the years past.
12) Be able to support more than yourself.
Let’s be real here! It is definitely a financial milestone if you can settle down and support a family. Imagine that you can afford education, pay bills, buy meals, go on vacation trips, you can spend for the family alone, that’s a fulfilling goal in life.
13) Travel freely.
Nothing like rewarding yourself the way you know how, traveling! To travel freely just because you can is an achievement everyone desires for. The world maybe finite but the experiences awaiting is infinite. Make it a goal to be able to bring yourself to places, to experience different cultures, to meet different people and to learn life as it should be.
14) Give back the way you can.
Of course, with all the good things that come into your life, you have to feel that giving back is a way to thank the universe. You can give back by sponsoring an education for a child, by way donating, by supporting a charity foundation and many more.
15) Live the life you’ve always wanted.
You only live once, so make the best out of it. Cliche’, true, but all the more inspiring if you make it a life motto. If you have a goal do it, all those motivational and life-inspiring oscar-worthy movies that you’ve watched over the years can be enough to push you to be your best. Don’t stress yourself with what others would think and what others will tell. Failures are also a big part of life, it rings you a step closer to where you are destined to be.
Success comes in the right time.
Milestones in life will come at the perfect time. While others your age are successful now, don’t worry, you’ll get there. Keep calm and continue to do your best. Steve Jobs once said that you cannot connect the dots going forward, but you can only connect them when you look back. Eventually, you will understand why it all came to be, you will realize that things do happen for a reason. If it’s not your season, don’t fret. Believe in yourself, trust God and your time will come.
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Jhon Kenneth Delos Reyes
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