1. Stop Living Paycheck to Paycheck
If you are always living paycheck to paycheck, how are you going to reach any of your financial goals? In your twenties, it is easy to spend money on entertainment, designer clothes and nights out. However, if you have nothing left to put into your savings, this is going to be a massive problem in your thirties. Learning to stop living paycheck to paycheck is the biggest financial lessons you can master at a young age.
You will tend to find that many wealthy people are very modest when it comes to splashing their cash. Those who are promoting a life of expensive cars and huge homes can be living in debt. Why? Their salary cannot keep up with their lifestyle!
No one who is considered wealthy ever spent their entire salary each month, and you shouldn’t either!
2. Stick to Your Budget
How many times have you toyed with the idea of creating a budget? Or maybe you have even created one but it acts as a guideline rather than a hard and fast rule?
Making a budget is easy, but sticking to one is hard. This is why it is one of the most important financial lessons that you can master by thirty. You should know where every penny of your cash goes and be able to cut yourself off once you reach your budget limit.
A budget can also help you see where exactly you are spending too much money so that you can cut back.
3. Paying Off Debt
No one should be going into their thirties with a mass of debt dragging them down. Whether this is credit card debt, car loans or student loans, really, the only loan that isn’t toxic is your mortgage.
Paying off debt does not have to be a normal way of life. As we mentioned in number 2, a budget can help you not only pay off debt but also keep you out of it. Make it a priority to pay off debt using a technique such as the debt snowball.
With this strategy, you will make the minimum payments on all your debts, but you will tackle them from smallest to largest. Throw as much money as you possibly can at the smallest debt, before then moving on to the next one.
This builds momentum to help keep you going towards reaching your financial goals. Just think about what you could do with all that money that you are currently putting towards debt.
4. Get Your Retirement Plan Sorted
No one wants to be forced to work in later life, but unless you get a hold of your finances now, this could be a reality for you. If you want to make the most of your retirement years, you must start saving now!
No more excuses of waiting for your next promotion or needing any room first in your budget, just start!
Most companies will put in employer contributions towards your pension. This means lots of free money towards your retirement. What’s more, the earlier you start putting money aside for retirement, the more you can take advantage of compound interest.