8 Ways To Achieve Financial Security Before 30

Reaching your financial goals before turning 30 may be overwhelming, but it’s possible if planned properly. Starting in your 20s (Really!!!) can be crucial for this goal to be achieved but it doesn’t mean stopping enjoying life, which many people think.

Achieving this goal brings you a sense of stability and relieves a lot of your anxiety after you reach your 30s. Let’s look at 8 Ways to Financial Security You Should Consider Before You Turn 30.

8 Ways To Financial Security Before 30

Budgeting

Budgeting is crucial for everyone to understand where they are spending the most and what needs to be done to save money. Every penny you will save can create a huge impact on your financial security goals but it does require a clear goal and vision to achieve.

To make a budget, you have to calculate your income and make a list of necessities for the upcoming days or weeks. Now you need to track your expenses regularly to stay within your budget.

Track Your Spending

Tracking your daily or monthly spending can give you a picture of where you are losing a major chunk of your salary – and what you need to do to reduce them.

You can start tracking your spending by following your bank statement or categorizing your expenses in different sections such as “automobile”, “Foods” and so on. This will help you differentiate plus exclude unnecessary items from your monthly expenses.

Because it is possible that you are spending money on things or forget to cancel your gym membership or any other subscriptions that you do not need. It happens to me with Netflix since I generally get a membership and forget to turn off the autopay.

Live Below Your Means

“Living Below Your Means” is one of the most criticized phrases, yet the most successful method of saving for financial security. Additionally, try building an Emergency Fund that can help you in case of job loss or any serious issues.

Living Below your means helps you to keep your standard of living lower than your salary can accommodate. As with growth in your career, your income will increase but rather than spending that extra money on luxury items or parties.

However, You can put that extra income into acquiring new skills to make more passive money or start saving for a house or something you like.

Also Read: How To Pull Yourself Out Of The Poverty?

Don’t Borrow For Luxury

Borrowing money to experience luxury is something that we all do after receiving our credit cards. This needless luxury expense comes with a series of difficulties that can be challenging to deal with if payments are missed.

The two major concerns are paying interest on borrowed funds or having your credit score suffer if any monthly payments are missing. Additionally, it is more difficult than ever to improve your credit card score.

There are other options which allow you to borrow money with a high return. Some of them are buying a house, starting a business, investing or financing your education.

Set Short Term Goals

Setting short-term goals is a crucial part of everyone’s life as we don’t know the next challenge we need to face in terms of losing our job, health issues, an accident or a pandemic.

Instead of setting goals for the next five years, why not set a three or six-month goal? This might involve anything from clearing off credit card debt to obtaining a qualification or boosting productivity.

Setting goals can help you succeed because it evokes a sense of responsibility in your subconscious mind, motivating you to work hard to accomplish those goals.

I personally write my everyday goals in my diary (you can also say journaling) and try my best to best to complete them.

Reduce Interest On Loans

Loans can be a significant problem in most people’s lives as they come with high-interest rates and monthly Installments or EMIs. There are several ways to save money on your loan interest which depend on the type of loan you have borrowed.

To lower interest rates on loans, start researching other financial institutes’ loan rates and then consult your bank to adjust the interest rates. Or you can try to clear all your loan before the end of your loan tenure as it will save you a ton of money.

if this option doesn’t work for you then I highly recommend you focus on your credit card score as this can be a major reason for high-interest rates.

Gain Financial Literacy

Making money can be easy for everyone but if you want to see the compounding effect on your investments, you need to learn some most commonly used terms in finances.

You can start taking time from your busy schedule and start gaining knowledge of wealth and finance management books. I highly recommend you read books like “Rich Dad Poor Dad by Mr. Robert Toru Kiyosaki” and “The Millionaire Next Door by Thomas J. Stanley and William D. Danko”.

Making financial and wealth management sounds important is a crucial step toward achieving your long-term financial security or financial freedom goals.

Save For Retirement

Being in your 20s you may be feeling that you have a lot of time to think and plan your retirement but have you ever thought you will be 21 in the next twelve months?

I am not telling you to stop enjoying now so that you have money to enjoy in your 60s which honestly doesn’t make sense. My view for retirement is, “What will I do with 1 million dollars and broken legs that time?”

Time Flies, Whether You’re wasting it or Not.

Crystal Woods

That’s why you don’t need to start saving a lot by cutting your personal expenses. Instead, you need to start an extra source of way to make passive money or save a very small portion of your income by putting a monthly auto payment contribution to a retirement plan.

You can go for an employer-based 401(K) if you have this option or Roth IRA if you don’t. Also, keep on increasing your contribution amount with an increase in your monthly salary.

Conclusion

Financial Security is crucial for the long term as in your 60s you are not sure when and where you need to have money in case of any emergency. And the age doesn’t offer you loans at that time.

So, planning a little early will not only make you self-sufficient but at the same time, you don’t have to think about your finances all your life. It can be said that you will start some work-from-home jobs to make money but why to struggles with loans at that time?

I believe that this makes you understand some core features of financial security and these 8 ways can help you achieve your financial security goal.