Everyone has a different life plan and different expenses. No matter what that looks like, make sure you’re checking off these financial milestones.
Start saving for retirement
I’ve written in length on how important it is to start early when saving for retirement, but regardless of when you start saving it is indeed a milestone. You benefit more from saving early, and the longer you wait, the worse it gets.
Pay off student loans
Education is getting more and more expensive and the student debt crisis is consistently in the news as a serious problem. Some students have resigned to never paying their debt off and just perpetually rolling them over. Paying them off has now become a great accomplishment.
Establish a good credit history
While you may have missed some payments when you were younger and made some mistakes with your finances, it is important to redeem them. Developing a solid credit history will help with big purchases and shows how responsible you can be with paying your bills.
Invest in more than a retirement plan
Whether it’s something simple like mutual funds or something more advanced like stocks, it is important to have your money diversified in something beyond a basic savings account.
Maximize employer benefits
If you work somewhere that provides you with perks, you should be using them to the fullest. Employer match accounts are effectively the closest thing to free money that exists, so the sooner you maximize your benefits, the better.
Have a positive net worth
This is the moment that everything you earn with become pure profit. There is nothing more exciting than when assets – liabilities = a positive number.
Buy your first home
Buying a home is easily one of the largest financial obligations most people will experience, and it may determine your spending habits for the future.
Deciding when to retire
There are quite a few things to consider when it comes to retirement, and they differ for everyone. Deciding when to collect social security, how much you need in savings, and how you plan to spend are just a few of the things you may need to think about.