Eight Things to Do Before Turning 30

Here's an article from Kiplinger that promises "these basic steps will get any young adult off on the right financial foot."

Then they back off a bit:

We realize everyone's situation is different so don't worry about tackling these items in order. And if you can't finish every item before you hit the dark side of 30, no sweat. This is just a simple list you can print out and put on your refrigerator as a reminder of things you should attempt in the coming years, or use it as a gauge to measure how well you've done so far.

I've been in many, many homes over my 41 years and quite frequently, I find the refrigerator. I have NEVER seen a list of financial to-dos on anyone's fridge. But I digress. Here are their eight:

1. Identify your goals. Decide what you want and where you want to be in the future. You must identify what you want before you can map out a strategy on how to get there. Start by setting up a budget. (Trust us, it's a good thing.) Then learn how to save for different time frames.

2. Start an emergency fund. One of the smartest moves you can make is to have cash on hand to cover three to six months of living expenses.

3. Pay off credit cards. If you already have a credit card -- and you tend to carry a balance -- set a goal to wipe out your debt while you're still in your 20s.

4. Start investing. Complete steps 2 and 3 before even thinking about investing. Yes, the sooner you start putting your money in stocks and mutual funds the better, but what good is earning -- if you're lucky -- 10% if you're racking up 18% a month in interest charges? The only exception would be your employer's retirement plan. If you have a 401(k) or similar plan at work, start contributing as much as you can afford as soon as possible. If your employer offers a matching contribution, try to set aside enough to capture this free money.

5. Establish credit. For millions of young people just starting out in their financial lives, getting approved for a credit card, auto loan, mortgage or other line of credit can pose a challenge. Generally, you can't get credit until you have a history of repaying credit. Better to establish and build a credit report for yourself now before you need to borrow money.

6. Set up a strategy to pay off student loans.

7. Take calculated risks. "Most successful people got to where they are because they took a few risks to strive for their dreams," says Robin Ryan, career counselor and author of What to Do With the Rest of Your Life. If you shy away from risk, you may be limiting your rewards. This goes for several aspects of your life, including career planning and investing.

8. Travel. Okay, so this one isn't really financial, but, hey, sometimes you just need to get away -- to see something new and experience the adventures you'll be telling people about for the rest of your life. And taking the time to travel when you're young and single is much easier than when you've got a couple of cranky kids in tow.

I have several comments on this one:

1. Oh yeah. Now I can see the validity of putting this on your refrigerator. Maybe you can put it between the copy of your will and a print out of your net worth from Quicken. Ok, my sarcastic side's taking over. Time to move on.

2. I think they should have named this article "Six Things to Do Before Turning 30". Numbers 1-4, 6 and 7 are really the good tips here.

3. How about number 5 being "save up for major purchases so you have a good down payment"? This way, anyone will loan you money.

4. I'm ok with #8. This is a good time to travel, but I wouldn't have included it simply because it isn't a financial tip. If you do travel though, be sure you don't rack up a lot of debt doing it.

Comments

[Jose]

Also by traveling you get to find out that not every one in the world shares the average american monetary values. Some good ideas to learn from out there. (and a lot you wish people learned from in here) :)

[YoungMiser]

How about buying a reasonably priced house and renting out a room or two with friends? Thats what I do. Extra income, plus I am building up an asset instead of flushing it down the toilet in rent. Interest rates are about as low as they are going to get as well.