Here are some financial milestones you should aim to achieve before the age of 35:
- Building an emergency fund: Having a rainy-day fund of at least 3-6 months of your living expenses is crucial. This money should be readily available in case of any unexpected events such as a medical emergency or job loss.
- Paying off high-interest debt: Prioritize paying off high-interest debt like credit cards, personal loans, and student loans. This will help you save money on interest payments and improve your credit score.
- Starting to save for retirement: It’s never too early to start saving for retirement. If you haven’t already, start contributing to mutual funds. Ideally, you should be saving at least 10-15% of your income for retirement.
- Establishing good credit: Building a good credit score is important for obtaining loans, credit cards, and even renting an apartment. Pay your bills on time, keep your credit card balances low, and don’t apply for too much credit at once.
- Saving for a down payment on a house: If you plan on buying a home, start saving for a down payment as early as possible. A down payment of at least 20% can help you avoid costly private mortgage insurance (PMI).
- Creating a budget: Establishing a budget can help you better manage your money and achieve your financial goals. Make sure to track your spending and prioritize your expenses.
- Investing in yourself: Investing in yourself can pay dividends in the long run. Consider continuing education, skill-building courses, or professional development opportunities.
Remember, these milestones are just a guide, and everyone’s financial situation is different. It’s important to establish your own financial goals and work towards them in a way that is realistic for your current situation.