Personal Finance Decisions to Make Before you're 30

Although the thirties are the new twenties, there are certain decisions you need to take to make sure you and your future family are never going to lack funds. Twenties may be the years when most of us simply decide to party for a decade, but then again, some of us prefer to work hard so we could establish ourselves financially. Business magnate and philanthropist Bill Gates, for example, worked 16 hours a day in his 20s, and was a self-made millionaire on his 23th birthday.

That doesn’t mean that you should follow this pattern precisely. You should build your personal life gradually, at your own paste, but do consider that smart decisions and financial planning at a young age is going to pay off big way 10 or 20 years later.

Set Your Financial Goals

This is one of the most important things to do in this period of life. You should separate your goals in several groups by the amount of time you will need to achieve each one of them. Your goal categories should go from the simplest and least expensive ones like going to the movies to the more complicated ones like buying: new laptop, car or even a piece of real estate.

A general piece of advice is to always have a back-up plan. The best thing to do is start saving from your first salary and have funds prepared for every occasion.

Become Financially Literate

You don’t have to sound like you work on Wall Street, but some basic level of financial literacy is going to help you greatly during your future financial adventures. This will also help you recognize some of the best investing opportunities and save more money by choosing right bank packages.

In fact, there is also an initiative for learning about personal finances in high schools, and students are more than willing to learn about this subject. If you haven’t done it yet, make this an addition to your New Year’s resolutions right away!

Never Work Underpaid

Your first salary should be the thing you choose. If you start working for less money, on your future positions and jobs you are also going to receive smaller amounts than people who had higher starting salary.

If you do get stuck on the job that you actually enjoy doing, but you are not as happy with your paycheck, be honest about it and show initiative. Ask your supervisor what you can do to get that raise, and devise a plan with him/her that will benefit both the company and your personal interest.

It’s Better to Invest Money than to Save it… or Spend it

Your investments might not always bring you a return, but remember that every piece of knowledge comes with a price tag. It is up to you how much you will actually learn. In time you will have more experience and the ability to recognize the opportunity for a good investment when you see it. Although it comes with certain risks investing money in stocks, is the thing that makes our economy roll and it is definitely the step in the right direction for a young and aspiring business person. You can start investing with smaller amounts in your free time.

Learn How to Calculate Risks

Sometimes you will make one or two mistakes, but consider this as well as just a normal process of learning. You should make an elaborate plan for every important financial decision in your life. While you are young and you still don’t have a family to look after both physically and financially, you are able to take more risk than before.

You can move to another city with more job opportunities, or quit your job and go traveling around Europe. Later you won’t be able to do that, so the earlier you learn how to recognize the right opportunity and calculate the risks of each business offer, the earlier you are going to become successful in the business world.

Start Early With Retirement Planning

Although this is probably the last thing on your mind, retirement planning is one of the things to think about from time to time. This can include small contributions from each paycheck you receive in the beginning and the contributions should grow during the time and the rest will take care by itself and you will enjoy your retirement days in the sun.