10 Money Moves to Make before your 30s
I am super excited to bring to you a special guest post from Andy Masaki of PennylessDad.com. He has a story many can relate to, so if you like what you read today, be sure to check out his other writing at his website.
Without further ado:
This is the Millennial Wealth Blog.
“Hey little girl, you want it all
The furs, the diamonds, the painting on the wall
Come on come on, lovin’ for the money
Come on come on, listen to the Money talk”… AC/DC-(Money Talks)
10 Money Moves to Make before your 30s
Your 20s is the perfect age to start financial planning. Before it gets too late, before you start banging your head on the wall from making terrible mistakes, before you begin to worry about your diminishing health. It’s time to think about your wealth.
The financial teachings of life are rarely found this early in life… But, if you start learning at this age the ways to mend your financial missteps, you may actually reach the financial goals that you are aiming for.
Start practicing these easy financial moves in your 30s right now:
Move #1: Cut Down on Obsessions
You are entering an age that will bring new color to your life. There will be instances that urge you to lose complete control and just go with the flow, not giving a damn about money…
But… NO! Wait! Hold on! Before you pull the trigger… how many bullets do you have?
Slow down man. You are past the age of giving in to obsessions. Be a man, confident and stable with no strings attached. Obsessions are the strings. Bad habits, over spending, being careless about money, they all must go.
Move #2: Plan for a Better Standing
No matter what your income is, you must start taking every penny seriously. A better, more secure future starts now. Get your expenses worked out.
The thing that I always love to say, understand your needs not your wants. Get a visual picture of what your life could be 10 years from now.
You are standing here, now. Will you be able to reach that future place with the life you are leading now?
Work it out yourself; start calculating the facts and figures, and look at what you need to erase and what you need to add in your life. Planning is the most crucial aspect of finance. Plan your future now, so that you can stop the destructive surprises that happen when you do not have a plan for your time and money.
Move #3: Everything is Relative
Understand the world around you. You are now old enough to see that everything is relative. Everything! Including your need for money. If you are comfortable, compare amongst your friends. You will have more of a panorama on this matter. You may get suggestions that will help you improve your own money habits.
You don’t actually need a new tuxedo right now, you may already have one in your closet. You probably do need a new smartphone, yes, but you may not need a new Macbook right now… You could probably read more reference books that will help you build your career.
Design your life in a way that will bring peace. A chaotic life of debt and financial pitfalls can be avoided.
Move #4: Plan Your Career
This is one of the best financial moves you can make before your 30s. Enjoy what you do and be determined doing it!
To earn well; Money should NOT be your first goal. The way you earn it, is the most important.
If you land in a field of work that you don’t find interesting but you stick with it because the pay is high, you will end up frustrated and you will start dying slowly on the inside everyday.
Determination comes only where your interests lie, and determination will lead to money.
Move #5: Think about Savings
Let’s consider that you have already started to earn good money. This is the perfect time to set aside funds from your monthly income for savings. Always try to motivate yourself to save more.
Always try to set aside at least 20% of your income for savings, and try to save more if it’s possible.
If you start your savings from an early age, you will end up with huge amounts in the long run.
Move #6: Track Records
Keep day to day records of your expenses. This basic bookkeeping is highly advantageous. It may sound like a tedious job, but if you can maintain a track record of your income and expenses from an early age, you will have a more clear picture of your financial life.
Move #7: Stay Away from Debt
Debts are one of the biggest reasons your financial life will be destroyed. Taking on credit is addictive. The more you take, the more you crave. Learn to draw the line and start setting boundaries on your desire for instant gratification.
Your approach towards life is set by this parameter.
It’s better to avoid this vicious circle of borrowing and repaying from the beginning. If you are already a mouse running in this devil’s wheel, get help to break free of this debt cycle.
Move #8: Have an Emergency Fund
You can’t be sure of what the future holds, so it is good to have an emergency fund from an early age. Well planned emergency funds can have a massive contribution in times of illness, accidents or joblessness.
Move #9: Plan your Retirement Now
If you work for a company that provides you with a 401(k) retirement plan benefit, make use of it to the fullest. Make sure to get the full matching contribution.
The contribution from the employer is part of your total compensation. You earned it, now, take advantage of it.
Move #10: The Final Move
Try to maintain good credit scores from the start. Keep a good payment and financial history. Later, if you need to use debt for a large purchase, you will find out just how important it is to have a positive credit history.
Andy Masaki is a freelance journalist living in Oakland. He works for Oak View Law Group, a leading consumer and bankruptcy law firm based in CA and operational across US.
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