15 Financial Goals You Need to Hit by 40
It can sometimes be hard to know how to make financial progress. There are countless financial books that promise to make us rich and to change the way we think about money. But, what if things were simpler? For most of us, there aren’t enough hours in the day to read a mountain of books. So, perhaps a straightforward list could help, instead. Here is a cheat sheet of 15 financial goals you should hit by the time you turn 40.
1. Build a Starter Emergency Fund of $1,000
The best way to break out of the paycheck to paycheck cycle is to get some money saved up fast. Your emergency fund will help you pay for any unforeseen bills that come through the door, or cover the cost of a mechanic if your car breaks down.
An emergency fund can help you stay out of debt. Instead of reaching for your credit card every time something comes up, feel safe in the knowledge that your emergency fund will catch you.
2. Organize Your Important Financial Information
Whether you’re using Google Sheets or a notebook, organization is key to growing your finances. List all of your debt and account information. And use a money app like Personal Capital to keep an eye on all of your checking, savings, and investment accounts in one place.
3. Develop a Monthly Budget
By creating a monthly budget, you will quickly find areas where you can save money. After working out how much you need for housing, utilities, health insurance, food etc. figure out how much is left. Split this amount into your savings and leave some as “fun” money. If your income fluctuates you might have to create a new budget every month to make sure you don’t overspend.
