Financial Goals at 25, 30, 35 and 40 Years Old

Whatever age you are, you must always plan for the future. Here’s a quick rundown of goals to accomplish at 25, 30, 35 and 40 years old.

No matter where you are in life or your career, you must know where you’re going.

When you’re 25 years old, your income may be at its lowest, but if you start putting money away at this age, the compounding interest makes much more of a difference as opposed to starting when you’re older. When you’re 30, you may have more income but still need to hammer out long-term career goals. When you’re 35, you’re likely to have a family and home to support, but find ways for these to fit in with your lifelong financial plan. When you’re 40, you may need to figure out how to send your kids to college, and you may be looking toward early retirement.

Whatever age you are, you must always plan for the future. Here’s a quick rundown of goals to accomplish at 25, 30, 35 and 40 years old.

By 25 years old

-         Start a savings account.

-         Begin contributing to your 401(k), and aim to contribute up to the employee match.

-         Pay all of your bills on time.

-         Take jobs seriously and contribute the most you can to them; you never know what’s just around the corner in your career path.

-         Scale back the credit cards and debt.

-         Have fun – you’re still young!

By 30 years old

-         Start an emergency fund – six months’ worth of living expenses.

-         Put yourself on a solid budget, with savings and home goals in mind.

-         Pay off credit card and consumer debt.

-         Have a plan for paying of student loan debt.

-         Own a home or have a plan for buying a home.

-         Hone your career skills, and attend as many educational opportunities/conferences in your career path as you can.

-         Network like crazy.

-         Contribute the maximum employer match to your 401(k).

-         Contribute to a traditional or Roth IRA.

-         Continue to have fun, and travel when you can.

-         Make sure you’re living below your means, which means spending less than you earn.

-         Make a living will.

By 35 years old

-         If you have kids, start a college education fund.

-         Pay down student loan debt as much as you can.

-         In addition to an emergency fund, have at least a 20 percent down payment for a car saved.

-         Purchase a home if you have the 20 percent down payment saved. Make sure you research schools in the area before you do.

-         Protect what you have with life insurance, a will and living revocable trust.

-         Revisit your portfolio to determine if your savings strategy is working for you.

-         Stay up-to-date on necessary skills, computer programs and career development opportunities to stay relevant in the job force.

By 40 years old

-         Pay off student loans.

-         Pay one extra mortgage payment per year, which means you’ll pay off your mortgage 11 years early.

-         Set concrete goals (a hard number) for savings, retirement and your kids’ college education accounts.

-         Determine when you want to retire and revisit your portfolio to determine the best savings strategy for accomplishing it.

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Published in: Personal Finance


RSSComments: 4  |  Post a Comment
  1. thanks for sharing

  2. great article just what I need to work out now

  3. Great article. However, very few people live below their means. Only the rich do that. I believe in having goals.

  4. Thanks for these.. Im 25 and want to have my own savings. :-)

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