Financial Milestones to Achieve Before Turning 30

Financial Milestones To Achieve Before Turning 30
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For many of us, approaching the big–30 is like stepping into a new chapter of adulthood – one that comes with a blend of excitement and responsibility. But before you blow out the candles on your 30th birthday cake, there are a few financial milestones you should aim to conquer.

You won't have everything figured out, financially or in life, by the time you hit 30. And that's fine. What matters is keeping an eye on your overall financial situation early on so that you're better equipped to reach later goals at different stages of your life.

There's no one-size-fits-all approach, but here are five financial checkpoints that can guide you towards success as you grow older:  

Harness the power of budgeting

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Create a budget that mirrors your goals and lifestyle, and stick to it like glue. Track your spending, identify areas where you can cut back, and watch your savings grow. Remember, every ringgit has a purpose, even if it's treating yourself to that Friday night takeaway. 

Pro tip: Utilise tools like the Belanjawanku app to streamline this process, thus empowering you to achieve your financial objectives efficiently and effectively.

Be cautious with debt

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Debt can feel like a dark cloud looming over your financial future. Take charge by tackling high-interest debts like credit cards or personal loans head-on. Set a plan in motion to pay them off, starting with the ones that have the highest interest rates. You'll find that the feeling of liberation when you're debt-free is worth every penny pinched.

Pro tip: List out all debts and interest rates, and either pay off those with the highest rates or consolidate them for better interest rates.

Start to grow your savings

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Building a robust savings account is essential for financial security. Establish a dedicated savings account and automatically deduct a portion of your income regularly. This practice not only provides you with a stable source of money for future purposes such as big-ticket purchases, but also enables you to invest in future opportunities. 

Pro tip: It is advisable to have savings of at least three to six months of income as a safety net in case any bad situations arise.

Improve your credit score

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Your credit score acts as your financial report card - it matters. Aim to build a good credit score by consistently paying bills on time, keeping credit card balances low, and avoiding unnecessary debt. A good credit score opens doors to better interest rates on loans, credit cards, and even renting an apartment. It's your ticket to financial freedom! 

Pro tip: Set up automatic recurring payments for your bills to avoid missing them or incurring additional fees.

Start planning for retirement

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Though retirement may seem distant, planning and saving early for it will ensure you get to benefit from compounding interest on your savings. Consistent savings, even at small amounts, can help provide a comfortable retirement and avoid the need to save bigger amounts during your 30s and 40s. 

Pro tip: Make additional contributions to your EPF savings through Voluntary Excess and/or Voluntary Contributions.

Download the KWSP i-Akaun app to grow your EPF savings!

Keep in mind that your financial journey is uniquely yours and may not align with those of others. Remember to create goals that resonate with your needs and goals, not ones you're creating to keep up with others. Be patient and kind to yourself as you work towards these financial milestones. By achieving these goals in your twenties, you lay the groundwork for a secure and prosperous future.