Best Money Decisions You Can Make Before Turning 30
Not everyone can say that they made the right decisions in their 20s. The result is acquiring lots of debt with little to no savings once they reach the age of 30. Sad but true, this is a common occurrence to many thirty-year-olds. Since many expect you to get your life together once you reach such an age, it pays to make wise financial decisions early on.
The good news is that there are things you can do to ensure that you get to enjoy your 20s while still attaining your financial goals before you turn 30. The following are just some of the best money decisions you can make that put you in a better financial position once you reach your 30s:
Start saving and investing
The earlier you decide to start saving and investing, the greater your results will be. No matter what happens, make sure that you get to save a portion of your income for your savings, emergency fund, and investment. It does not matter if you start small. As long as you start saving and investing consistently, you will be surprised just how helpful these will be in the future.
Get yourself health insurance
You may think that you are as strong as a horse and take great care of yourself. But no one can really tell when health emergencies will strike. This is why it is vital to invest in the right health insurance. It will not only help you take away the burden of paying for costly medical expenses. It will also give you peace of mind, knowing that you have the right coverage in case your health deteriorates.
Create a debt-free plan
It can be hard not to take on any loan, especially during your early years of working. But there are ways you can limit your debts and start living a debt-free life. You can start by creating a budget that will allow you to pay off your bad debts. Next, craft a debt-free plan and commit to only acquiring debts that will benefit you in the future. This includes applying for a mortgage to buy a house or a business loan to start your own company.
Don’t take retirement for granted
It may seem like your retirement years are still many years ahead of you. But since time flies too fast and the prices of commodities continue to rise, it is never too early to begin saving for your retirement. At the very least, set aside 5% of your monthly income for your retirement. As your income increases, slowly increase the amount. By thinking ahead, you will learn to appreciate how every penny goes a long way.
Start thinking about buying a house
The best time to buy your own house is once you are financially ready and prepared for homeownership. Even those in their 20s can start buying their own homes. You can apply for a mortgage before you turn 30. This way, you will have plenty of time to pay off your home loan, find a low-interest one, and even decide to refinance your mortgage.
There are other smart financial decisions to consider before you reach 30. But this list entails five of the best money decisions you can make to set yourself up financially. By learning from the mistakes of others and making the right decisions, you can enjoy your life with fewer money worries.