Just starting out after college? Wondering if there’s a blueprint to follow when it comes to financial milestones? We have it for you. Check these tips out.
- Separate yourself financially from your parents. While your parents will probably always be there to help you out if you’re in a financial jam, it’s important to be independent from that need by the end of your 20s. Being a self-sufficient adult comes with establishing complete financial independence from your parents once you’re done college in your early twenties. Sometimes, circumstances arise that necessitate you to go back home and live in their nest for awhile. That’s OK, but have the foresight to know you have to separate yourself from that safety net by 30.
- Free yourself from debt. Once you hit 18 and started college or your first job, you may have opened up some credit cards and got carried away buying clothing, a car, and other items. You may even have used credit to pay bills. While it’s important to establish good credit, now’s not the time to perpetuate debt. You have far too many years left before retirement to start accumulating crushing debt now. Aim to be debt free by 30. That includes consumer debt and student loans.
- Straighten our your credit. Establishing a solid credit history is crucial if you plan to buy a home. Sure, you may have missed some bills and made other credit mistakes in your youth, but by 30, those mistakes should be corrected. This will help you secure good interest rates and terms on large purchases like a house.
- Amass $25,000 for retirement. Once you hit the big 3-0, experts say you should have at least $25,000 saved for retirement. A good rule of thumb is to have one year of your salary saved by that age, but sometimes people stay in school much longer than others or they may have experienced a slow start to their careers. That’s why 25 grand is a good solid number to reach for. If you can do more, do so!
- Establish an investment portfolio. Whether you go for a simple mix of mutual funds or you want to get a bit more aggressive with stocks, make sure you have a diversified investment portfolio that gels with your long-term savings strategy. You may need to revisit your goals each year with your financial advisor to ensure you’re on the right track. Be wary of eager stock brokers who may not have your best interests at heart. This is where a good securities fraud attorney comes in.
By adhering to the above strategies, you will be well on your way to financial success in your 30s!