Finance Achievements Before 30

: Reese Baker & Associates

  Filed under: Money Management

financeFinancial literacy¬† is something this country struggles to achieve. Many young adults are leaving college and starting families on shaky financial ground. In a recent article titled “11 Financial Things You Should Do Before Turning 30” some of the key concepts are discussed to help 30-somethings focus on for their financial goals:

1. Saved for big purchases — money spent on a wedding, having kids, buying a car or house should have been saved for in advance.

2. Living within means — financial priorities should be spending only what you make and not overdrawing your account or using credit cards to fund unnecessary purchases.

3. Have an emergency fund — having at least three to six months worth of essential living expenses covered in a savings account is crucial for a rainy day or when an unexpected financial hardship strikes.

4. Making maximum 401(k) contributions — your contributions into your 401(k) should have moved beyond matching your employers contributions into the highest amount allowed by your fund.

5. Master of automation — automatically transferring money into your savings before paying the rest of your bills can keep you consistent with your savings and tapping into the power of compounding interest.

6. Have a Roth IRA — take advantage of tax-free withdrawal accounts through a Roth IRA over a conventional IRA that takes your money with you need it.

7. Written a will — it is important to protect your family and money by having a will that outlines beneficiaries and how money is to be dispersed.

8. Paying off high interest debtscredit cards and other high interest accounts should be the priority in repayment to reduce the amount you are paying in fees over time.

9. Have a decent credit score — having a score between 680 and 699 is good, but a score over 700 is considered excellent.

10. Read finance books — we all could use a little help managing our money and personal finance books are good source of information to help you tighten up the holes in your financials.

11. Know how to¬† negotiate — from a loan to your salary the art of negotiation takes practice, but can really benefit your financial profile when you win.

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