15 Financial Goals You Need to Hit by 40
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4. Pay Off All of Your Debts
You might have debts. And you might have a savings account, too. But, if you work out your net-worth, your debt might wipe out any positive balances you have. Debt is literally the opposite of wealth, so if you have any you should try to pay it off as soon as possible. Then, you can focus on growing your money.
5. Build a Mid-Level Emergency Fund of $10,000
Now that you are debt free it’s a good idea to top up your emergency fund. This fund doesn’t need to stay as your emergency one forever though, if you don’t own a house yet it could turn into your down payment on a mortgage or something similar.
6. Cut Your Expenses
If you earn a lot of money, what does that matter if you can keep ahold of it? Being financially savvy is knowing the difference between saving and spending. Cutting down on expenses helps a lot, and once you start thinking about saving money rather than spending it you think twice before making impulse purchases.
