Financial Moves Should Make Before Turning 30

Approaching “adulthood” can be rough, especially when it comes to finances.

Budgeting your first salary to pay your bill and other expenses can be tough, especially if you are also covering to pay your student loan.

It may be tough to start but it is better to learn the ropes of proper money handling at a young age. It’s common for young adults to be burdened with debt, and while not all debt is necessarily bad, it’s important to prioritize repayments. Better to pay down your debts with high-interest rates first. Loans that carry interest rates above 7% can be a major financial drain over the long run. Credit cards are often the culprit. Do nothing until that is paid off. Personal finance experts tend to stress the importance of having an emergency fund to cover unanticipated expenses to avoid long-term financial damage. If you are not set up to tap cash for something, it can derail you financially if you put it on credit card. The original expense can bloom because of interest.

Once high-interest debt is history, start stashing away money for emergencies. You can start by saving a 3-month cushion for unexpected expenses or emergency cash. Having a stash of cash gives you more freedom and control over your life, whether it’s leaving a bad job, starting a new career or exploring a new hobby or business idea.

You may also want to figure out what you really want with your finances. Create concrete goals can make a financial plan more realistic and successful. Setting goals that are “time-lined”. This will allow you to tailor your budget and set specific savings and spending targets.

You also need to be time conscious. So the earlier you get started, the better. First, the money comes out of your paycheck before taxes and also grows tax-free, so you won’t owe any taxes until you withdraw it.

Many of us leave the bulk of our assets in cash, which means they aren’t earning much from it. Explore the possibilities of “investment”. Some of us can be more hesitant when it comes to investing. But we have to know that fear can mean missing out on opportunities to grow and create wealth. Keeping a diversified portfolio with broad market exposure can help alleviate investing jitters. To get started, try to invest 1% of your paycheck and increasing the amount regularly. Investment can mean: “Pay yourself first”. Do it every paycheck, and you will never notice how far has your initial investment have grown.

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Aim for Financial Freedom Rather Than Debt

This might be an interesting topic, right? One thing most of us worry about is “hitting the wall” along our ways. People who focus too much attention on “hitting the wall” often find themselves in the position they feared most.

The same can be said about focusing too much on debt and other obstacles hindering financial success. Instead of focusing too much on the possibility of failure or ‘hitting the wall,’ concentrate on reaching financial freedom.

Each year, thousands of consumers take the pledge to begin the path toward financial freedom on While this year’s month-long financial literacy initiative is over, the quest for financial freedom continues. The financial educators or financial advisors offer the following tips on how to create wealth and avoid debt throughout the rest of the year.

Invest wisely. Many people find themselves in difficult financial distress because they have not properly prepared for emergencies or for the future. If you don’t want to end up broke, start putting things in place now to help you reach your financial goal/s.

  • Start contributing to a 401(k) account or some other retirement investment. A little put away now will bring huge results later.
  • Build an emergency savings fund. Prepare for the unexpected such as a job loss, home or car repairs, and even periodic expenses. This way you won’t have to rely on credit when these instances occur.

Hone your passion. Invest in a career that is rewarding and challenging. Don’t chase money. Many people are living their dreams and making money at the same time.

Protect assets. Insurance may seem like wasting money, but it will come in handy when it’s needed and could save you a   boatload of emergency expenses. Make sure all your valuables are protected including yourself. Purchase the right coverage to avoid an unnecessary financial strain.

Pay off credit card debt. Carrying a credit card balance each month is not helping you. The money going towards payments could be put to good use in another area. Be careful not to charge more than you can afford to pay off in a reasonable amount of time (90 days or less). Also, don’t use more than 30 percent of your credit limit.

A good piece of advice on obtaining wealth is to simply live within your means. Spend less than you earn. Don’t buy a $60,000  car when you’re only earning $30,000. Develop some achievable financial goals and stay on course – and off the wall.

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