It’s okay if you are already in your 30s, just make sure, you achieve these financial goals as soon as possible. Research has proven that a lot of people are in financial ruin in their 40s and 60s because of the financial mistakes they made at a young age. Therefore, if you want to be on your path to financial freedom, you’ll need to start on these 6 financial goals.
Do this before anyone else
Knowing is half the battle, it’s simply, stopping, and asking yourself what you want exactly. Whether it’s a house on a beach, a Lamborghini, or designers clothes. Ask yourself, do you want that because you do or because it’s what society says you should?
Or do you want to be your boss, and have the opportunity to amass an insane amount of wealth? Should we say you want to free up time for your luxurious lifestyle? It doesn’t matter what it is you want, just make sure it’s what you want deep down not what society wants for you.
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Undoubtedly, you can find out what goals you want to achieve by journalling. Take notes of your thoughts and find the ones that made you happy when you thought about them. Then, figure out how long the happiness you felt lasted. Does it still make you smile today or was it just a fleeting emotion?
Here is the truth
The idea that you need to avoid all debts isn’t practical and not good financial advice. This is because not all debt is bad, there is a distinction between good and bad debts. Understanding the difference brings to a better financial position.
Bad debts that you are most familiar with could be car loans or student loans. It could also be stuff that you make payments for months or years that do not ultimately increase in value. Other bad debts include high-interest credit card debts, payday loans, etc. Essentially, bad debts are stuff you pay for that doesn’t help you make any progress towards your financial goals.
On the other hand, good debts are an investment that may boost your income or net worth in the future. Stuff like using leveraging to purchase Real Estate. Learning to leverage other people’s money is one of the good financial goals. The reason being good debt improves your long-term financial situation.
The fastest way to get out of debt
However, if you are already stuck with a bunch of bad debts, this is the strategy to get rid of them Using the avalanche method, you can think of how much money you can budget to pay off your debts. Write down your debts amount and the minimum payment for each month. List all your debts down from the lowest to the highest by interest rates.
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What you should do is to pay off those monthly payments, and set aside the rest of the money to the debt with the highest interest rate. After that balance moves down to the next one, and then another one until everything is finished. The avalanche method is the best way to get out of debt, use it efficiently.
Getting out of debt is one of your most treasured financial goals because being in debt inconveniences your financial growth
Understand the true power of your credit score
Your credit score is a powerful tool that you should understand and harness. Quite frankly, your credit score could be the difference between wealth and poverty. It’s a quick metric for lenders to determine how quickly you will be able to pay them back. The less risky you are viewed, the more money you can save.
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If you have a good credit score, and you decide to get a loan, the interest you pay on any amount borrowed will be below Compared to a bad credit score, you’ll be ravaged with high interest and maybe poverty.
What you have to do to build your credit is to pay off the minimum monthly payments on time. For even if you miss just a payment, your credit score will be ruined. Oftentimes, it’s suggested that you use your debit card or the money you have to pay it off. And use smaller amounts for a start. Goals accomplished.
Learn about the stock market
Do you always think about fancy suits, ties, watches, drinking Scotch, and watching charts all day when you hear the word, stock? Sincerely, the truth is people don’t wear suits anymore, Hollywood makes the stock market complicated. Well, it is not, and it’s easier now to get involved than ever before. Right now, the earlier you start looking into the stock market, the better off you will be.
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Ultimately, you can start as low as $500 in an S&P 500 with a 10% interest rate for 30 years. By the end of 30 years, your investment will be worth 1 million dollars. You are choosing the less risky form which is the index funds, which allows you to invest in more than one stock. Market volatility wouldn’t affect your funds much with an index fund because you are not going to be investing in one stock.
You need to invest in yourself
Importantly, you need to start investing in your education, no, not college, invest in learning new things. Learning is the best return on investment you can ever make. In a real sense, learning never ends, so you have to start learning new things, right now. It could be reading a book, watching videos, a new skill, etc.