10 Steps to Financial Security Before Age 30

10 Steps to Financial Security Before Age 30

Achieving financial security is always on the minds of those who are aware of how hard life becomes without it. Typically, there are always huge expenditures before the age of 30 which prevent even thinking about such things. This includes, getting married, buying a car and a house etc. Yet, such security is entirely achievable by following the 10 steps given below;

1. Remember to Enjoy Yourself

You are only young once. Enjoy it while you can. Try to live a happy and balanced life. Mix it up with work, family and friends. By finding a correct balance you will have achieved the first step towards financial security.

2. Invest in Yourself

Your skills, knowledge, certifications and experience are your biggest assets. There are always opportunities in the market for those capable enough. Learn new skills, polish old ones and make smarter choices. This will have a big impact on your financial security.

3. Become a Goal-Oriented Planner

Proper planning is the key to achieving wealth and financial security. Set a goal for yourself and develop a plan to achieve it. Being goal oriented will allow you to take the reins of your life in your own hands.

4. Set Precise, Short-Term Goals

Life in unpredictable. Therefore, it is hard to predict what may happen far into the future. That is why, you should set short-term achievable goals for yourself that gradually work towards achieving a big one. Contribute towards your company’s workplace retirement plans, such as 401(k)s. Take gradual big steps for your savings or investments as you continue to gain more financial security.

5. Plan for a Retirement

Retirement planning is usually the last thing on the mind of young adults. But contributing towards workplace retirement plans, such as 401(k) or Roth IRA will be extremely beneficial for financial security in the future.

6. Live a Modest Lifestyle

Many young adults fall into the habit of excess spending when they see how much extra money they suddenly have. Instead of wasting it over frivolous things, you should instead spend it on reducing any student debts etc. Not everyone has access to College Savings. On the other hand, if you have no debts, you can use this money to start the college savings for your own children.

7. Learn Financial Management

Making money and managing money are two different things. Your financial security is dependent on your ability to wisely manage and invest your savings. Financially literate individuals always end up with more wealth.

8. Take Calculated Risks

It is easy to recover from financial mistakes when you are young. You can afford to take a calculated risk. You can;

  • Consider moving to a new domicile for better job offer
  • Decide to go back to school for a degree
  • Switch jobs
  • Invest in a start-up and more!

If the risky endeavor does not pan out, your youth allows you to bounce back easily.

9. Borrow Money for Investments

Using too much credit is anathema to financial security. The constant borrowing and added interest increase the cost of lifestyle. You can borrow money. But when you do, use it wisely. Invest it in Stocks, Bonds etc. You can also invest in yourself, such as paying for education, a start-up or a house.

10. Take Advantage of Financial Freebies

Look for ways to take legal advantage of tax laws. For instance, contributing towards an Individual Retirement Account will allow for tax savings. Investing in stocks can also gain favorable treatment in capital gains and dividend income.

Get More Advice on Financial Security

SGA Financial Inc. has established itself in the market as one of the most trusted names in the market for finances. We fight to preserve the future against the uncertainty that has gripped young Americans. Trust in us to guide you towards a future filled with prosperity and financial security.