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Why You Should Hit These 9 Financial Goals in Your 30s
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Mar 1, 2024
#money #investing #blackexcellence If you're in your 30s, late 20s, or even your early 40s, watch this video to see how many of these essential financial steps you've hit already. Investing Videos to Watch: Invest your first $1k: https://www.youtube.com/watch?v=mqDuVYV26zg Index fund investing: https://www.youtube.com/watch?v=Nd_3I8sCCKc How much money to save at every age: https://www.youtube.com/watch?v=zy1bBUbll38 11 Money habits keeping you poor: https://www.youtube.com/watch?v=wK-BsKHTbr0 Check out the books we love and recommend in our Black Excellence Book Club: https://www.blackexcellence.com/store/ Some links are affiliate links, which means we earn a very tiny commission if you make a purchase. __________________________________________________________
View Video Transcript
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Your 30s can be a transformative decade, especially when it comes to your finances
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In your 20s, you're most likely figuring out your footing in your career, going to college and taking out debt like student loans, and God knows what else I did in my 20s
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In your 30s, most people have settled in their careers and are starting to make decent money, although most people won't peak in their income until they're in their late 40s and 50s
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If you're in your 30s, about to be in your 30s or even in your early 40s, what financial goals are you
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you setting for yourself. In today's video I'm going to talk about the nine essential financial goals
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I believe are essential to hit in your 30s. First up, you better be prioritizing your emergency fund
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I know I sound like a broken record if you watch my videos all the time when I say that you
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better be saving up for a freaking emergency fund. Nothing has dragged me back financially like
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unexpected expenses before I had an emergency fund. It could be your car breaking down, a medical
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bill, an unexpected trip, these costs are usually in the hundreds or thousands and will lead you
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down to relying on high interest debt like credit cards. But if you have that emergency fund
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you could just pull from that in times of need. The advanced version of an emergency fund is
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actually saving at least three to six months worth of living expenses in case the ultimate
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emergency happens where you lose your income. Consider your current lifestyle, fixed expenses
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and any potential emergencies that may arise. Start by setting achievable, savings goals each month and automate your contributions for your emergency fund
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Having this financial cushion can alleviate stress and provide peace of mind
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knowing you're prepared for whatever life throws your way. At number two, we have maximizing your income
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Your 30s are prime time to focus on maximizing your income. Take advantage of earning potential by seeking opportunities for salary increases, promotions
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or additional income streams. Negotiate for higher salaries based on your skills, experience, and market
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market value. Consider investing in further education or certificates to enhance your qualifications
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and open doors to higher paying positions Explore side hustles or freelance work to supplement your primary income Every dollar earned is a step closer to achieving your financial goals in your 30s and
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beyond. In number three, it's time to fix all those mistakes you did in your 20s and get that
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credit score up. Hate it or love it, as 50 cent would say, your credit scores play a crucial
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role in your financial well-being in America. Would you be embarrassed to share your credit
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score on a first date? Let me know in the comments if credit scores have ever been brought up on a
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first date you've been on. A good credit score can qualify you for better loan terms, lower
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interest rates, and greater financial opportunities. More people are getting into home ownership
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in their 30s and even 40s now than they were in their 20s decades ago. If you have that goal or
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even if you don't, having a great credit score puts you in an advantageous position financially
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Take proactive steps to improve your credit scores by paying bills on time, keeping credit card
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balances low, and monitoring your credit report regularly. And whatever you do, don't trust
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your cousin Ray Ray that swears he can get your credit score up if you just give him your social
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security number. And number four, and for the love of God, start investing if you haven't yet
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Come here, let me tell you a little secret. You're not going to get rich purely off your income
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The rich get rich through investing. Investing is essential for building wealth and securing your
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financial future. Don't delay, start investing as soon as possible, even if you're starting
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small. You can start with as little as $50 to $100 and gradually
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increase your investment contributions over time consider your risk tolerance investing goals and
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time horizon when choosing the right investment vehicles whether it's stocks bonds mutual funds or
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real estate diversify your investment portfolio to minimize risk and maximize returns remember the
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earlier you start investing the more time your money has to grow and compound over time i have
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done several videos on investing i'll leave links to them in the description box below at number five we have
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maximizing your retirement investments. You should start planning your retirement the moment you start working
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which for most of us is actually in our late teens or 20s
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Retiring can come at any age if you financially ready Although most of us won retire until we in our late 60s Imagine being able to have the freedom to retire early because you plan for it at an early age
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But if you haven't paid much attention to retirement plans and you're in your 30s, now is the time to start
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Take advantage of employer-sponsored retirement plans like 401Ks or IRAs to maximize your retirement savings
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Contribute as much as you can to these accounts, especially if your employer offers matching contributions
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You can also open up your own self-managed retirement account like a Roth IRA
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You can actually have both a Roth IRA and a 401k if you're employed
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That's an amazing way to accelerate your retirement plans or catch up if you've fallen behind
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And number six, avoid lifestyle inflation or lifestyle creep. As your income increases in your 30s, it's tempting to upgrade your lifestyle to match
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This is known as lifestyle creep, where your expenses creep to match your income that's creeping up
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succumbing to lifestyle inflation can derail your financial goals and jeopardize your long-term financial security
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When your income goes up, see that as an opportunity to get ahead instead of keeping up
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That means use the new additional income to pay off debt, save, and invest instead of using it to get a fancier car, a more expensive place, or unnecessary purchases
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Lifestyle creep usually starts happening in your 30s and 40s because that's when your income starts rising up
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You have to resist the temptation. You could get that better car or a place, but can you hold it off for just a couple of years and stay put where you are to use that money elsewhere for a better life
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I think you can. And number seven, free yourself from high interest debt
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I should have put this first, but don't go into your 40s with high interest debt like credit card debt or personal loans
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High interest debt can weigh you down and hinder your financial progress at any age
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But do you want to start the second half of your life dragged down by debt
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start by prioritizing debt repayment and creating a plan to pay off outstanding balances
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Explore strategies such as the debt snowball or debt avalanche method to accelerate your debt repayment journey
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That method focuses on paying off the smallest amount of debt first and then going up to themaidst amount of debt later If you were paying to pay off the first small debt once that debt is paid off now you add that towards the next debt you have to pay off
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Another method is to prioritize paying off your debt with the highest interest first
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Whichever method you choose, just make sure to get rid of that high interest debt ASAP
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And number eight, you should start to think about setting up a wheel and getting into a state planning
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We must be going to war because a new plane crosses this. lower every two minutes. If you think that you're too young to think about having a will
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or estate planning, trust me, you're not. Estate planning is often overlooked but essential
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especially as you enter your 30s and start accumulating assets. Take the time to create a
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comprehensive estate plan that outlines your wishes and protects your assets. Start by drafting
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a will that specifies how you want your assets to be distributed upon your death. Designate beneficiaries
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for your retirement accounts, life insurance policies, and other assets to ensure they're
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distributed according to your wishes review and update your estate plan regularly to
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reflect any changes in your life circumstances or financial situation like them kids are bad they ain't getting any of my money remember estate planning is
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not just about distributing assets it's about protecting your legacy and providing for your loved ones in the future and in number nine sharpen your
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vision for most of us our 20s are kind of murky kind of blurry it's all about
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figuring out who you are your career path where you want to live and so much more
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In your 30s, it's essential to have a clear vision of your financial goals and aspirations
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Take the time to define your short term and long term financial goals, whether it's buying a home
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starting a family, or retiring early. Set specific, measurable, achievable, relevant, and time bound, also known as smart goals that align
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with your values and priorities. Create a financial plan that outlines your steps needed
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to achieve your goals and track your progress regularly. Stay focused on your vision and make
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adjustments as needed to stay on course. By prioritizing these financial goals in your 30s
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you'll set yourself up for a secure and prosperous future. And that's it for this episode
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We'll be back with more money talks
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