The twenties are a period filled with changes, discoveries and novelties.
And the habits you establish during those years will often follow you throughout your life. Including when it comes to your finances…
While it’s never too late to learn how to manage your personal finances, failing to set an accurate financial strategy as soon as possible can cost you dearly in the long run.
In this time when many are building their careers, getting married or laying solid foundations for their future, it is all the more important to set specific savings goals .
Check out our list of 5 financial goals that every adult should have achieved by their 30s.
1.Build precautionary savings
No matter how much we can do to try to prepare ourselves for life’s events, we will always have to face the unexpected.
Needing to repair your car, take care of your pet, replace household appliances that have just broken down… If these expenses have not been anticipated, this could have serious consequences on your budget , and sometimes even repercussions for months or even years if you have to make a loan.
That’s why you should set aside a portion of your income each month to fund precautionary savings that will be used to cover any unexpected expenses that may arise in the future.
In addition to allowing you to finance these unexpected purchases, this safety cushion will also allow you to limit financial stress and not have to stress when you find yourself faced with one of these emergency situations.
Or even worse, to subscribe to credits.
2.Have a solid personal budget
It’s a tip we highlight in many of our articles, because it’s probably the most important when it comes to learning how to better manage your personal finances. Building and following a monthly budget is essential to controlling your money and truly being able to save it.
You may think that budgeting is not for you, or that you don’t have the time or the willpower to follow a specific financial plan each month. Still, no excuses. Managing a personal budget is well and truly within everyone’s reach.
If you want to keep your expenses under control, the only solution will be to stick to a budget . And if you feel like you never have enough money to do all the things you’d like to do, you can also use this planning process to prioritize your spending and fund the purchases that are really important to you.
By itself, you don’t necessarily need to follow a budget for life. But it’s an essential step to understanding your spending, and taking control of your money over the long term.
3.Learn to control your spending
It’s usually the little habits that pay the most in the long run . And that goes for your finances too.
And when it comes to learning how to save money and limit impulse spending, it’s never too early to start.
By the time you’re in your twenties, you should already be in the habit of setting aside a portion of your income each month with a savings goal (usually between 15 and 30% of your salary). As well as having started to put in place concrete strategies to stop throwing money away and keep your expenses under control.
Without regularly looking for ways to reduce your expenses so that you have more money available to save and invest, you will never be able to make your money work for you.
Would you rather continue to be a slave to your expenses or take control of your financial future? Because it’s not just a question of euros in a bank account, but above all a question of financial freedom .
Bad news for all those who intended to build their capital solely through their bank books: you will never be able to grow your euros only by saving.
And here again, when we talk about wealth, we are not talking about luxury cars and villas of several hectares, but rather about financial freedom.
If you really want to build wealth, you need to think beyond savings and start investing . Ideally, in order to really experience the magic of compound interest , you should have started investing before you turn 30. Waiting just a few more years before investing your money can deprive you of quite substantial returns on your investment in the long term.
If you’d like to invest but are too afraid to invest your money, seek the help of a financial advisor . These professionals aim to recommend types of investment based on your lifestyle and risk tolerance in order to help you build a coherent investment portfolio.
In any case, you should also start looking into the subject of personal finance so that you have the basics to avoid mistakes and misunderstandings as much as possible (a good way to start is to read books on personal finance ).
The key is to diversify your stocks and investments to limit risk. Because on the whole, investing (well) often pays off more in the long term than saving.
5.Define your long-term goals
If you can’t put money aside on a regular basis, it’s probably because you haven’t set specific financial goals with clear deadlines.
Why do you want to save money? Become an owner in a few years? Eventually start your own business? Get married, have children? Retiring before the age of sixty, or having the possibility of traveling around the world if you wish?
Define and write down somewhere the list of your goals , as well as an estimate of the number of years and the amount you will need to set aside for this specific goal.
These goals will not only be a valuable motivation to save money, but also an essential tool in determining the investments you will choose . It will also allow you to see more clearly in your finances and to remain realistic. There are definitely dozens of goals you’d like to pursue, but most likely you won’t be able to do them all right away.
Your budget is a short-term and long-term tool, and it is only with a little patience, rigor and work that you can gradually build the funds necessary to fulfill your dreams, even the wildest ones. !