Bucket lists are a great tool for articulating what truly matters to us and setting a timeline to realize these ambitions. Now, let’s assume you are almost 30. Have you thought about making a ‘Before 30 Bucket List’, laying out your aspirations you wish to be pursued before hitting this milestone?
I would certainly propose creating a financial bucket list consisting of financial targets you aim to accomplish by the age of 30. Your early thirties should mark a significant turnaround in your financial journey. It presents an opportune period to strategize about your future, and how finances are going to help fulfill your aspirations.
While your twenties may entail financial compromise, this phase is an optimal time to strengthen your financial standing, enabling you to revel in your thirties. Here are seven finance-related bucket list objectives to strive for before you turn 30.
1. MASTER LIVING WITHIN YOUR MEANS
Understanding the vitality of living within your means is quintessential for those under 30. It implies spending considerably less than your income. Barely matching your expenditure with your income can potentially result in straining your finances when unforeseen expenses emerge.
Additionally, expenses exceeding your earnings generally lead to debt. It’s crucial to adopt a pragmatic lifestyle and commit to living within your means thereby always having an extra amount on hand for emergencies or savings. This approach doesn’t necessarily mean you have to penny pinch or deprive yourself. The crux is to construct a viable budget letting you comprehend how much you’re able to utilize.
2. CLEAR ALL OF YOUR DEBT
Debt can pose a massive burden, consuming much of your dispensable income. Interest rates on your student loans, credit cards, and car loans can be substantial and escalate as long as your account stays open.
It’s advisable to settle all consumer debt immediately. Ideally, by your thirties, your only debt should be your mortgage. Clearing debts will empower you economically.
Ponder over this: the standard car loan payment ranges between $400 and $500 monthly, while the average household is saddled with a credit card debt of $6000 or more. With student loans, debtors often take 10-20 years or even longer to clear this obligation.
Debt can hinder your efforts towards achieving other financial milestones. You might defer starting a family or marriage due to financial constraints. Don’t let debt inhibit your life, particularly in your thirties. Formulate an action plan to eliminate debt completely, and accept the necessary sacrifices to become debt-free.
3. SAVE AT LEAST 10% OF YOUR INCOME
Haven’t started saving yet? Make this your next priority after debt eradication. Ideally, you should have an emergency fund capable of covering at least 3 months of expenses. Besides, keep some funds aside to meet specific expenses like annual fees, medical expenses, car maintenance, holidays, etc.
Zero savings could potentially drive you back into debt, as you’d have no other option but to borrow in crisis situations. To avoid this, begin setting aside at least 10% of your income for savings until you amass a comfortable sum. Automate this by scheduling regular transfers to allow your balance to grow seamlessly.
4. STRUCTURE YOUR BILLS AND HOUSEHOLD EXPENSES
Don’t enter your thirties oblivious to your finances and weekly cash flow. Systematize by figuring out the best budgeting approach for yourself and your preferred method to track your expenses – are you more inclined to spreadsheets or writing down expenses? Decide on an app, spreadsheet, or printable worksheets for financial management and expense tracking.
Jot down all your bill due dates, including yearly and semi-yearly bills, to avoid unpleasant surprises. Regularly discuss your financial goals and stay organized with your partner or spouse.
5. LEARN SMART CREDIT CARD USE
Credit cards can be potent financial tools when used wisely. Selected credit cards offer rewards and cashbacks. Moreover, a high credit score can result in lower interest rates on major purchases like mortgages.
However, don’t treat credit cards as limitless funds. Deploy them to enjoy rewards and enhance your credit score.
If controlling your spending and managing credit cards has been a challenge in the past, it’s a good idea to add this to your before 30 bucket list.
Register for a reliable credit card and strive to keep your expenditure below 30% of your total credit limit, always paying off your balance in full.
6. FIND A FINANCIAL ACCOUNTABILITY PARTNER
We all can do with a little accountability and comrades who empathize with us in our financial journey. Even though finding people in your twenties genuinely interested in enhancing their financial standing might be difficult, it’s not impossible.
Add this fun task to your bucket list. Consider joining local meetups or exploring your neighborhood for financially prudent individuals sharing your goal of financial betterment.
You can even form a small support group of financial accountability companions for mutual goal support, strategizing, sharing ideas, and venting.
7. START FUNNELING FUNDS INTO YOUR RETIREMENT FUND
It’s pivotal to add this piece to your before 30 bucket list. By 30, you should have a clear vision of your planned retirement age and how much you need to set aside.
You should already be making active contributions to a retirement account, either through a 401(k) provided by your job, an IRA, or a brokerage account.
Investment diversification is recommended, safeguarding your portfolio from depending solely on one source. If interested, you might want to explore investing in real estate.
Undoubtedly, living within your means facilitates funds for investments. By 30, you could boast a substantial retirement fund, already habituated to prioritizing retirement savings.
Do you possess a bucket list of financial actions to undertake before you touch 30? What is at the top of your list?
