Feeling left behind in the finance department? There’s a lot of pressure to have everything “together” as an adult, and that can leave you confused as to what you should focus on. But these seven financial goals are the perfect places to start if you’re looking for ways to achieve financial freedom by the time you hit the big four-oh.
Build an Emergency Fund
Everyone should have an emergency fund; think of it as a financial safety net—like a trampoline for your budget. Aim for at least three to six months’ worth of expenses. That way, when life throws you a curveball, the fund can act as your mitt to catch you before you go into financial freefall.
Pay Off High-Interest Debt
Break free of your credit card debt before you turn 40! It seems like it could be unattainable, but with the snowball method (paying off smallest debts first) or avalanche method (paying off highest-interest debts first), it’s possible and maybe even easier than you think. While dealing with high-interest debt is preferable, any attempt at ridding your life of debt is worthwhile.
Start Investing
If you’re still keeping your money under the mattress, it’s time to put that mattress money to work for you. Start investing in a retirement account (like a 401(k) or IRA). The earlier you start, the more time your money has to grow. Plus, watching your investments grow is a satisfying thing to do over the coming years.
Make a Real, Sustainable Budget
Budgeting is paramount if you’re going to achieve any financial goals. But the real indicator of a successful budget is if it’s consistently helpful. Set limits on discretionary spending and don’t hesitate to come back to your budget as your life changes. It can and should still be a malleable thing that you can shape—and long as your priority is financial wellness and saving!
Save for Retirement
Speaking of saving, there’s no better time to start saving for retirement than right now, even if it’s just a small amount. Compound interest is your friend, and the earlier you start, the more you’ll have when it’s time to kick back and relax. It’s more important to have an emergency fund and pay off debt in most cases, so prioritize the first four goals so you’ll have even more to allocate into retirement savings!
Set up a Side Hustle
Side hustles aren’t a necessity, but they can fast track a lot of your financial goals and make life easier. Whether it’s freelancing or walking dogs, finding a side hustle that fits your lifestyle is becoming more and more common as people realize it’s an excellent method for getting to financial freedom faster than you think.
Set Even More Financial Goals!
Let’s say you’ve already achieved the other six goals. Incredible—now what? Maybe your goal before you hit 40 is to have more goals, and that’s fantastic! Maybe at 39 you’ll get the sudden urge to buy a house or travel the world. You shouldn’t stop setting or reaching goals, so readjust and recreate as you move into different phases of life!
