Monday, August 27, 2012, AM | 2 Comments
Maintaining a personal finance is necessary to lead life successfully and happily for long. But everything should be planned early and the ideal age for the planning is before 30.
These days’ young professionals are busy with a number of things. They have lots of projects and targets in their hand which sometimes need a lot of money. That is where most of them fall short as they do not have proper financial planning.
On the other hand it is quite normal that young people who need to manage things starting from studies to socialization to career do not get enough time to plan or think of managing finance. They hardly get time to plan for their personal finance which is quite important.
It is suggested that you should plan for your personal finance and set some targets which should be achieved within the first 30 years of your life. This is the age when you stay in the pick of your career.
Though it is not possible for everybody to reach the target set by them within this time frame of their life due to certain issues but there is certainly no harm in trying your best. This will even help to secure your finance to some extent if not help you to be a millionaire.
Followings are some of the financial milestones which should be your target that should be achieved by you reach the age 30.
Buying a home of your own is always one of the best achievements in life. The experience will be further overwhelming if you can have your own house or property before you cross the threshold of 30. If you cannot buy the property within this time frame but can at least get yourself ready to buy one within next few years that can also be considered as a good achievement.
Buying a property is one of the biggest financial decisions in your life therefore you have to be prepared according to that. You should save enough money so that you can get pay the down payment based on which you can get the standard mortgage with a reasonable rate of interest. You should plan for the finance in advance if looking to buy your own home in future.
Clearing credit card debt:
Credit card is one of the most lucrative things which attract many youngsters these days. These cards are so handy and easy to carry and offer so many facilities that most people these days are fond of them. But there are many people as well who have almost destroyed their finance thanks to the credit cards as they could not calculate the actual rate of interest and the amount of money they have as debt. You should set a target that you will live life on your paycheck instead of credit card debt once you reach 30.
Developing budget plan for every month:
Success of a financial planning and achieving your target within the said time frame largely depend on your monthly budget plan. If you can plan your monthly budget a bit cleverly then it can save a lot of your precious money. You should plan for all your expenses that you need to pay every month and save the excess amount in a separate account for future use.
Planning for retirement:
Though many people find it absurd thinking of retirement at the age of 30. But an advance planning for retirement is extremely necessary for a person who is working and planning to make his/her life secure even after retirement. The sooner you will start planning for the retirement the smother the life will be after retirement.
Developing an emergency fund:
Today we know it very well that not a single job is secure for the employees in this world. Recession has teaches us this thing very well. We do not know when we will be laid off from the jobs as a part of the cost reduction program of the company during the recession and how long we have to go through the phase. Therefore we should develop an emergency fund with sufficient money to offer support if we become jobless.
These are the few tips which can help you effectively if you are planning to achieve big and hit the bull’s eye fixed by you by the age of 30.
Sam is a finance consultant who also shares his ideas and tips to the readers based everywhere in this world through his articles. His articles are quite helpful for the people who are new and do not have any idea about managing personal finance. His favorite topics are auto loans, personal loans etc.