Like it or not, by the time you turn 30, you’re basically a full-fledged adult, and with that comes certain financial responsibilities you’ll need to get a handle on. Here are three money-related goals you should aim to achieve by age 30.
1. Have a fully loaded emergency fund
Life has a way of surprising us, both for better and for worse. But sometimes, those unpleasant surprises come in the form of automobile breakdowns, busted appliances at home, or medical bills that catch us off guard. And let’s not forget the possibility of getting laid off at work — something that can happen to even the most diligent employees among us.
That’s why it’s crucial to have a healthy emergency fund. While you might struggle to sock away that money when you’re younger, by the time you turn 30, that account should be nice and robust. At a minimum, your emergency fund should contain enough cash to cover three months’ worth of living expenses, but for better protection, aim for six months’ worth. This means that if you typically spend $3,000 a month on bills, your goal should be to have $18,000 in savings.
Unfortunately, nearly a quarter of Americans have no emergency savings whatsoever, which means they’re putting their long-term finances at risk. That’s because without an emergency fund, paying unplanned bills often means charging them on a credit card and letting mounds of interest accrue.