7 Financial Goals to Hit Before You’re 30
Summary
TLDRThis video emphasizes the importance of financial management in one's 20s for long-term stability. It advises eliminating debt, particularly student loans, credit card debt, and cautious home buying, to avoid financial strain. Building an emergency fund, discovering career aspirations, understanding personal finances, and setting a $100,000 plan are highlighted as crucial steps. The speaker also encourages discussing finances openly to learn from others' experiences. Lastly, the power of investing, especially through compound interest, is underscored as a means to secure a millionaire status by retirement.
Takeaways
- 🚫 Eliminate Debt: The speaker emphasizes the importance of avoiding debt, which is a major financial struggle for many, including student loans, credit cards, and mortgages in your 20s.
- 🏠 Rent Instead of Buying: It's suggested to rent an apartment during your 20s to build financial solidity before buying the house you truly want in your 30s.
- 💰 Build an Emergency Fund: Having a fund that covers at least three to six months of life expenses is crucial to handle unexpected emergencies without financial ruin.
- 🔍 Discover Your Passion and Lifestyle: Understanding what you want to do with your life and the lifestyle you aspire to have is critical during your 20s for setting the right financial direction.
- 📊 Learn Financial Management: Developing a simple budget and understanding your finances is key to avoiding stress and ensuring you have enough money for your needs.
- 🎯 Set a $100,000 Plan: Having a concrete plan to reach financial milestones like $100,000 is essential, rather than just hoping for success.
- 🗣️ Discuss Finances Openly: Talking about finances with family and friends can provide valuable insights and learning opportunities.
- 🤔 Critically Evaluate Advice: While it's important to discuss finances, it's also crucial to critically evaluate the advice you receive, as not all advice may be sound.
- 💼 Invest in Your Future: Investing as soon as possible, even with small amounts, leverages the power of compound interest to grow your wealth significantly.
- 💼 Invest Monthly: The speaker recommends investing $300 per month into a standard and Poor 500 ETF to accumulate substantial wealth by retirement.
- 🏆 Achieve These Goals for Financial Stability: Achieving the goals outlined will set you on a path to financial stability and the ability to live the life you want without monetary struggles.
Q & A
What is the main message of the video regarding financial stability?
-The main message of the video is that to achieve financial stability, especially as you approach your 30s, you must take control of your finances early, avoid debt, build an emergency fund, understand your financial goals, and invest wisely.
Why is eliminating debt important according to the video?
-Eliminating debt is important because it represents a significant financial struggle for many people, often leading to increased expenses due to interest payments, which can hinder financial growth and stability.
What are the three main categories of debt mentioned in the video?
-The three main categories of debt mentioned are student loans, credit card debt, and mortgages or house loans.
Why should one be cautious about taking on a house loan in their 20s?
-One should be cautious about taking on a house loan in their 20s because they may not have the financial position to buy the house they truly want, which could lead to unnecessary debt and the potential need to sell the house in the future.
What is the recommended approach to dealing with unexpected financial emergencies?
-The recommended approach is to build an emergency fund that can cover at least three to six months of life expenses, ensuring financial security in the event of unexpected emergencies like medical expenses or car accidents.
How does the video suggest one should discover their life's direction during their 20s?
-The video suggests that during one's 20s, they should explore and understand their passions and lifestyle preferences, as this will have a significant impact on their financial decisions and overall life direction.
What is the significance of creating a simple budget according to the video?
-Creating a simple budget is significant because it helps individuals understand their income and expenses, making it easier to manage their finances and reach their financial goals without unnecessary stress.
What is the '$100,000 plan' mentioned in the video and why is it important?
-The '$100,000 plan' is a financial goal-setting strategy where individuals aim to accumulate their first $100,000. It's important because it provides a clear financial milestone and encourages proactive financial planning rather than just hoping for success.
Why does the video emphasize the importance of discussing finances with others?
-Discussing finances with others is emphasized because it helps individuals learn from the experiences of others, gain insights into different financial strategies, and avoid common financial pitfalls.
What is the final goal mentioned in the video and how can it potentially impact one's financial future?
-The final goal mentioned is to invest $300 per month in a standard and Poor 500 ETF. This can potentially have a significant impact on one's financial future due to the power of compound interest, which can turn a small monthly investment into a substantial amount over time.
What is the potential difference in retirement savings between starting to invest in your 20s versus starting at 30?
-The potential difference is substantial; starting to invest in your 20s can lead to $1.6 million at retirement, whereas starting at 30 could result in only $600,000, illustrating the power of early and consistent investing.
Outlines
💼 Financial Stability in Your 20s
The video emphasizes the importance of taking control of one's finances early in life, particularly during the 20s, to achieve financial stability by the age of 30. It highlights that many adults feel unprepared to manage money, and the video aims to help viewers set financial goals. The speaker discusses the need to eliminate debt, which is a significant financial struggle for the majority, and categorizes debt into student loans, credit cards, and housing. The advice given is to prioritize paying off student loans, use credit cards wisely to avoid high-interest debt, and consider renting instead of buying a house during one's 20s to build financial solidity for future home purchases. Additionally, the video stresses the importance of having an emergency fund to cover at least three to six months of life expenses.
🚀 Setting Life and Financial Goals in Your 20s
This paragraph focuses on the critical nature of the 20s as a period for setting life goals and understanding one's desires for the future. It suggests that discovering one's passion and lifestyle preferences early on can significantly impact financial planning. The speaker shares a personal anecdote about changing career paths to align with personal aspirations. The video encourages viewers to make a simple budget to track income and expenses, which is essential for financial health. It also touches on the importance of having a concrete plan to save $100,000, rather than just hoping for wealth. The speaker advises viewers to assess their current financial trajectory against their financial goals and make necessary changes, such as investing, starting a side hustle, or reconsidering their career choices.
🗣️ The Power of Communication and Investing in Your 20s
The speaker discusses the taboo nature of discussing finances in society and argues that open conversations about money are essential for financial growth. They suggest that talking to family, friends, and colleagues about personal finance can provide valuable insights and learning opportunities. The video also stresses the importance of investing in one's 20s to take advantage of compound interest, which can significantly increase wealth over time. The speaker provides a specific example of investing $300 per month into a standard and Poor 500 ETF, illustrating how this habit can lead to a substantial retirement fund. The video concludes by offering a guide to achieving the outlined goals and encourages viewers to watch further for more detailed advice on financial success.
Mindmap
Keywords
💡Financial Stability
💡Debt
💡Student Loans
💡Credit Cards
💡Emergency Fund
💡Lifestyle
💡Budgeting
💡$100,000 Plan
💡Compound Interest
💡Investing
💡Personal Finance
Highlights
Take control of your finances early to avoid common financial struggles faced by many adults.
88% of adults believe they were not ready to handle money in the real world, indicating a widespread lack of financial preparedness.
Debt is the biggest financial struggle for 77% of people, emphasizing the importance of avoiding it.
Student loans are a common form of debt, especially in countries with expensive university systems.
Paying off student loans should be a priority to avoid long-term financial burden.
Credit cards can be practical but can lead to high-interest debt if not used responsibly.
The average interest rate for credit card debt is 24%, highlighting the cost of carrying a balance.
Buying a house in your 20s may not be financially advisable due to limited funds and potential future changes.
Renting an apartment during your 20s can help build financial stability for future home purchases.
Having an emergency fund is crucial for unexpected expenses and can prevent financial hardship.
An emergency fund should ideally cover at least three to six months of life expenses.
Discovering your career path and lifestyle goals in your 20s can significantly impact your financial future.
It's easier to make career changes in your 20s rather than later in life when responsibilities increase.
Understanding your finances and creating a simple budget is essential for financial stability.
Developing a $100,000 plan is a concrete financial goal that requires a strategic approach.
Having a clear plan for financial milestones is more effective than hoping for success.
Talking openly about finances with family and friends can provide valuable insights and learning opportunities.
Investing $300 per month in a S&P 500 ETF can lead to significant wealth accumulation over time due to compound interest.
Starting to invest early and consistently is key to maximizing the power of compound interest.
Achieving these financial goals can set you up for a secure and prosperous future.
Transcripts
if you want to be successful you must
take control of your finances as soon as
you can I'll soon be 30 and I have many
friends and colleagues that have lost
hundreds of thousands of dollars during
the 20s because they didn't know what to
do with their money and the reality is
that 88% of adults believe they were not
ready to handle money in the real world
so if you feel like you don't know what
to do you don't know how to manage your
money you're not alone and in this video
we'll see together which are the goals
that you have to set yourself so that
you will be way ahead than everybody
else and this will let you approach your
30s with a great financial stability so
first thing first you have to eliminate
the enemy that will potentially ruin
your life because if you don't kill it
as soon as you can you will probably
face it for your whole life and it is
not a nice for as it represents the
biggest Financial struggle for 77% of
the people because yes I'm talking about
debt and you definitely have to avoid it
as much as you can because basically
that means that you will have to pay
interest and this will only increase
your expenses and I'm sure you don't
want that and so during your 20s there
are three main categories of debt and
those are student loans credit cards and
house so starting with the first one
it's actually very common in many
countries like the us where the
university system is very expensive just
imagine that there you have to pay
several tens and of thousands of dollars
every year to study at the University
and clearly not everybody can afford it
and so that's why students get loans to
be able to afford the university but
this also means that as soon as you
start working your first priority has to
be to pay off this debt because
otherwise you will bring it with you and
it's interest together for 10 or 15
years secondly there are credit cards
and yes the credit cards can be very
practical because they can really save
you in emergency situations but if
you're not careful if you don't use them
well they will just ruin you this
because they will get you in debt and
that means paying interest and just
saying the average interest at the
moment for a credit card debt is of
24% so basically if you're carrying on
your credit card debt you're paying your
stuff 24% more do you want that I don't
think so and then house but why did I
put house sure buying a house can be a
great achievement but are your 20s the
best moment to buy a house because in
your 20s you will probably not have the
financial position to buy the house that
you want and this means that you will
get in debt to buy a house that is not
the one that you actually want which
also means that you will proba probably
have to sell it in the future because
maybe you want a bigger one or you want
a house in another place and so during
your 20s when you are building your
financial life if you buy a house you
will just be putting all of the money in
this house that you don't really want
instead of getting a financial solidity
that will be with you for the rest of
your life so instead of buying just rent
an apartment during your 20s so that you
will be able to build this financial
solidity that will allow you to buy the
house you want during your 30s secondly
we have a point that will be vital at
every moment of your life just a couple
of weeks ago I had a colleague that had
to pay for an unexpected medical
emergency and he had to pay a lot of
money for it and this put him in a
position where he had to ask his friends
and family for money because he didn't
have anything anymore he couldn't even
eat and this could actually happen to
anyone because if you don't have an
emergency fund and you will have to pay
for a car accident or a medical
emergency this is the money that you
will have to use not the money that you
earn every month that you use to leave
and this is why during your 20s your
second priority is to build an emergency
fund that has to cover at least three
months of life expenses but it would be
better actually to have a six-month
emergency fund and having that means
that whatever will happen you will be
able to get out of a difficult situation
as catched when I was at the high school
I decided I wanted to study mechanical
engineering because uh I loved cars and
I wanted to work at Ferrari I mean it
looked amazing to me and I was really
sure that this is what I wanted but then
I realized I was wrong because doing
this type of job was as far as it could
from the lifestyle I wanted and this is
why I changed everything and I started
doing what I loved which is actually
also something that allows me to live as
I want which by the way is finance and
is also why now I am here making videos
on YouTube so if you find my videos
helpful and you want to support me just
hit the Subscribe button but coming back
to the topic this is something critical
that you have to do during your 20s and
it is to discover to understand what you
want to do with your life what is the
lifestyle that you will have in the
future because if you want to just chill
in the countryside is a thing but if you
want to become a manager or also if you
want to become a normal employee in a
company Everything Changes there are a
lot of things that you don't know when
you start during your 20s and you have
to discover them because it is at this
point in life that you give the
direction that you take the direction
that you want to have for your future
especially because it is much easier
because imagine yourself when you're 35
you have a family kids and a fixed
position in a good company it will be
much more difficult to change everything
to achieve what you really want so
really take this years to understand
what you want with your life because
also this will have a clear and immense
impact on your finances so now during
your 20s you normally don't have a lot
of money it is the period of your life
when you start working and earning your
first salaries and because of that it is
also often the moment where you struggle
the most with your money you struggle to
find the money to pay the rent to go out
with your friends or just do what you
want but over the years your salary is
likely to increase and so you will start
to get more comfortable with your money
and you will be less attentive at every
peny you spend and this is why your 20s
are the best moment to understand how
your money Works how much goes in how
much goes out having a clear
understanding of how your finances work
is vital if you want to have more money
and if you don't want to struggle with
your life expenses this is why
understanding how to make a simple
budget every month knowing in which
macro categories you use the money you
earn will make so much easier to reach
the end of the month without stress and
as I said you don't have to make a
complex budget but a simple one you just
need to have three or four categories so
that you can track your money and just
doing that it will make a huge
difference and so if you want to know
more about how to do that I actually
made a video that explains it more in
detail and you can find it here so the
next thing you must achieve is to have
your own $100,000 plan I've heard so
many many times people saying oh I want
$100,000 oh I want $1 million and every
time I ask them how do you want to do
that and the answers are almost always I
don't know but I will figure it out or
I'll just try to grow in my career and
I'm sorry this is not a plan that's just
hope and without a plan you're not
taking control of your finances you are
just waiting for things to happen hoping
that they will go in your favor and well
do you really think that the World by
itself will give you what you want I
don't think so and this is why all of us
must have a plan a plan that will allow
us to make our first $100,000 and have
the money that we would like to have so
understand how much money you would like
to have and see if what you're doing now
will actually lead you to this objective
because I mean if you are for example a
teacher that earns 40 to $50,000 per
year and you say I want to have $1
million in the next 10 years well you're
not going to make it you have to do
something else you have to change
something you can maybe start investing
having a side hle or completely changing
your career but doing this simple
analysis will tell you am I in the right
direction or not so basically whatever
Financial Milestone you have whether it
is $100,000 1 million or even $10,000
develop a plan for it so don't wait for
things to happen make them happen and
your 20s are the best moment to do it
because it is the moment when you set
the direction of your life okay now
there is my favorite goal because it can
seem simple it might seem basic but this
simple thing completely changed my life
and made me who I am and if you're
watching this video it means that you
already are in the good direction
because it means you understand the
importance of personal finance but
that's not enough because the thing you
have to do is to talk more about Finance
because nowadays Finance is like a taboo
you can't share your salary because it's
unpolite you can't ask people about
their expenses or also their salary and
their financial situation but that's
completely wrong if you want to improve
your finances if you want to have more
money this is the best way to start so
really start talking with your family
with your friends and colleagues about
Finance about their money because this
will let you learn a lot you will see
the experience of other people how they
did it how they faced difficult
situation and also what would you do if
you had to face such a similar situation
there's tons to learn about Finance
about personal finance and having the
help of other people is the best thing
to do and obviously the best moment to
start doing that is during your 20s
because it is the moment when you need
personal finance the most and believe me
just that will easily double the amount
of money that you will have over your
life and just a little note about that
it's important to talk with everyone
about money but it doesn't mean that you
have to listen to everything people tell
you you really have to critically
understand what they say because often
people make errors and you have to learn
from that and so if you already managed
to achieve these first six goals you
will be way above everyone else above
your friends and colleagues and you will
really be in the direction to have a
bright financial future and never
struggle with your money but this last
goal might be the most impactful because
by not reaching this goal you will
easily lose at least $1 million and I'm
kind of sure that you would like to have
$1 million more in your bank account and
to be honest it's not really difficult
to achieve because you have to do one
action and repeat it every month what is
the action is to invest $300 per month
in a standard and Poor 500 ETF doing
this will make you $1.6 million at the
age of your retirement but if you don't
do it and you just start investing this
money when you're 30 you will only have
$600,000 and that is the power of
compound interest what Einstein called
the eighth World wonder and compound
interest really has to become your best
friend because it is the only thing that
can surely make you a millionaire and
this is why you have to start investing
as soon as you can because compound
interest even on small amounts will make
a huge difference over the time so
basically invest as soon as you can and
invest as much as you can and you will
always be fine with money in the future
so if you will manage to achieve all of
these goals you will have a position
that a few in the world have at 30 you
will be able to live the life you want
and never struggle with money but now
how do you actually achieve these goals
well I've made a simple guide that tells
you how to do it so watch this video if
you want to have more money thank you
for watching and see you soon
Voir Plus de Vidéos Connexes
Do This EVERY Time You Get Paid (Paycheck Routine)
Do This Every Time You Get Paid. Accountant Payday Routine
How to make money work for You (So you are not poor)
I asked a personal finance expert how to invest.
7 Signs You're Doing Well Financially (for your age)...Even If It Doesn't Feel Like It
Simple Steps to Financial Freedom
5.0 / 5 (0 votes)