Financial Goals for Every Decade of Life: 20s & 30s

No matter how you spin it, managing your money is an important part of life. Unfortunately, it doesn’t get any easier with age. The market is always changing, and so should your financial strategies as you progress through various stages of life.

To help make things easier, the financial advisors at American Investment Planners, LLC have put together a list of financial goals you should strive to accomplish during each decade of your life.

In today’s article, we will be focusing on your 20s and 30s…

Financial goals for your 20s

You may legally become an adult at age 18, but your adult life really starts in your twenties. This is the decade that you finish up school and begin your career. It is also the decade in which you should focus on establishing good financial habits:

• Become financially independent. Find a job that can pay for your daily expenses and allows you to stop relying on relatives for financial support.
• Make a budget. This is a good lifelong habit that can help you spend less and save more.
• Improve your credit score. Pay your bills in full and on time every month. A high credit score will be important for purchases later in life.
• Start paying off debt. Focus on paying off your high-interest debt (credit cards) first, while still paying the minimum on your low-interest debt (student loans).
• Build your savings. Make it a habit to deposit 10-20% of every paycheck into a savings account.
• Open a retirement account. You are never too young to save for retirement. Ideally, you should open a 401(k) and a Roth IRA before turning 30.

Financial goals for your 30s

For many people, the thirties are a time for growth; both in your career and within your family. Here’s how to make sure your finances can accommodate your changing lifestyle:

• Allocate money to family matters. Wedding payments, mortgage payments, college tuition for the kids – these are all things you need to plan for at this point in your life.
• Designate your beneficiaries. This is a basic financial task you should revisit after major events, such as marriage or having a child.
• Pay off your debt. By your 40th birthday, you should be free from student loan payments, credit card debt, and all other debts except your mortgage.
• Save six months’ worth of income. Emergencies happen; you want to make sure you can afford an unexpected auto repair, medical bill, or the loss of a job.

No matter which stage of life you are at, the financial advisors at American Investment Planners, LLC can help you achieve your goals.  To schedule an appointment with one of our professional consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.