7 Financial Goals to Hit Before You’re 30

Summary

This 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

00:00

💼 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.

05:01

🚀 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.

10:03

🗣️ 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.

Keywords

💡Financial Stability

Financial stability refers to a state where an individual has control over their finances, has sufficient savings, and is able to manage their income and expenses effectively. In the context of the video, financial stability is a key goal for individuals approaching their 30s, as it allows them to live comfortably without constant financial stress. The video emphasizes the importance of setting financial goals and managing debt to achieve this stability.

💡Debt

Debt is an obligation that an individual owes to another entity, often incurred to finance large purchases or education. The video identifies debt as a major financial struggle for many people, particularly student loans, credit card debt, and mortgages. It advises viewers to avoid or eliminate debt as much as possible to prevent paying high interest rates and to avoid long-term financial strain.

💡Student Loans

Student loans are a type of debt taken on by individuals to finance their education. The script mentions that in countries with expensive university systems, such as the United States, student loans are common. The video stresses the importance of prioritizing the repayment of student loans to avoid long-term financial burden.

💡Credit Cards

Credit cards are a payment method that allows individuals to borrow money to make purchases and pay it back at a later date. The video warns about the potential dangers of credit card misuse, such as accumulating high-interest debt. It advises viewers to use credit cards responsibly to avoid financial ruin.

💡Emergency Fund

An emergency fund is a sum of money set aside to cover unexpected expenses, such as medical emergencies or car repairs. The video highlights the importance of building an emergency fund during one's 20s to ensure financial security and to avoid borrowing money from others in times of crisis.

💡Lifestyle

Lifestyle refers to the interests, opinions, and behavioral patterns that together make up an individual's way of living. The script discusses the importance of discovering and understanding one's desired lifestyle during the 20s, as it influences career choices and financial planning. The video encourages viewers to align their financial goals with their lifestyle aspirations.

💡Budgeting

Budgeting is the process of creating a plan to manage one's income and expenses over a period of time. The video emphasizes the importance of understanding how money works and creating a simple budget as a key step in financial management. It suggests that tracking expenses in a few categories can help individuals reach the end of the month without financial stress.

💡$100,000 Plan

The $100,000 Plan refers to a specific financial goal of accumulating $100,000, which the video suggests should be accompanied by a concrete plan rather than just hope. It implies that having a clear plan and taking deliberate actions towards this financial milestone can lead to greater financial success.

💡Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. The video extols the power of compound interest, stating that it can significantly increase one's wealth over time, especially when investing consistently from a young age.

💡Investing

Investing involves allocating resources, such as money, with the expectation of generating an income or profit. The video encourages viewers to start investing as early as possible, using the example of investing $300 per month into a standard and Poor 500 ETF to accumulate wealth over time.

💡Personal Finance

Personal finance encompasses the various ways an individual manages their budget, savings, investments, and debt. The video stresses the importance of discussing personal finance openly with others to learn from their experiences and to improve one's own financial knowledge and strategies.

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