7 Financial Lessons You Should Learn Before You’re 30

In the old days, it was common for students to earn their way through college, graduate debt-free at age 22, and immediately start saving for a down payment on a house. However, the cost of tuition increased approximately eight times faster than income over the previous three decades, making it virtually unfeasible to do so.

Today’s graduates are saddled with thousands of dollars in student loans or other loans. One cannot even think about buying a house after graduation. However, there are some skills you should learn if you’re determined to lay a good financial foundation for your future, as it can be intimidating to approach 30 and feel like you’re still struggling.

Do you feel frustrated when starting your financial journey? Would you like to accelerate your journey to financial independence? You will discover the mental changes and behavior necessary to achieve financial independence.

Your life can change if you start implementing these 7 tips today to skip mistakes and taste success.

1. Diversify your investment:

Investment diversification has a huge impact on your financial journey. You must allocate your investment funds to various financial goals. Each objective will have its own timeline. For example, in your late 20s, if you want to buy your own apartment, you will have to deposit the funds into a savings account every month or every week accordingly. Diversifying your investment will help you clarify your financial goals.

Create a list of financial goals you want to achieve. Maybe you want to save for a car or a house, a wedding or a pension. Align your financial goals with a timeline. For example, you want to buy a vehicle in 2 years, buy a house in 5 years, save for your wedding in 7 years, and plan on retiring in 30 years.

Now that you know your goals and deadlines, you can diversify your investments. Put your monthly savings into a financial instrument that matches the timeline for each goal. For example, suppose you want to buy a house in three to five years. You currently have some funds and keep saving each month. Invest these funds in an asset that will yield a return within three to five years.

Or, suppose you want to prepare for retirement. If you are more than ten years old, you can invest in a financial instrument that provides a return over a longer period of time. In either case, you should separate your investment capital into separate financial goals. Align investment instruments with the timeline for each financial objective.

2. Start small steps:

Even if you only have a small amount to invest, you should start. The practice of setting aside money for investment is more significant than the amount invested.

Also, you may need this time to better understand yourself. This time it will help you to develop a truly effective plan. Different tactics work for different people and there is no “one size fits all” solution.

You must choose which tactics work for you! For some people, it’s about: tracking expenses, developing a budget, automating savings, developing spreadsheets, and establishing cash flow forecasts. Different tactics work for different individuals. Allow yourself time at this time in your life to understand yourself. Determine the most effective strategy by testing a variety of approaches. What works for others doesn’t mean it works for you and vice versa. Always remember to start small, regardless of the amount.

3. Know your cash flow cycle:

You should monitor your cash inflow and outflow. If you are under 30, most of your income is likely to come from your salary. However, be sure to include other sources of income (if any).

Consider how much fund is coming in and how much is going out as expenses. This differs from tracking your expenses in that you can look at your cash flow cycle, which is cash in and out.

4. Keep an eye out for opportunities:

Be aware of opportunities around you so you can keep up to date with what’s on the market.

For example, from the 16th to the 30th of June, Binomo, one of the international trading platforms, presents iTrade, a trading contest with hot prizes, iPhones 13.

Participants can trade on Binomo for extra income and earn brand new smartphones.

The event takes place in two stages. The winners of the first round will be selected on June 23 and July 1 of the second. The total number of winners on iTrade is 6 (six) people.

The organizer notifies the winners using the contact details provided in the personal account on the Binomo platform.

All users who registered in June are automatically participating in the iTrade contest.

To participate in iTrade, traders need to switch to a real Binomo account.

The conditions of the iTrade contest are to make 15 trades per day on a real account with a minimum value of each trade of 18 BRL /$5/€5

Making 15 trades every day for a week will maximize your chances of winning an iPhone 13.

More information can be found at iTrade contest page.

5. Leverage the financial market and learn to trade:

If you are not aware of the dynamics of the financial market and trading, you are probably not familiar with the myriad of profitable financial assets. However, you can learn more about trading on Binomo, offering over 70 financial assets ranging from currency indices to equity instruments. The platform proves to be effective for beginners who are new to trading. Thus, the platform provides tutorials and guidance on trading strategies that should be adopted.

Many fear investing their resources in the financial market due to lack of information. However, you don’t have to worry as at Binomo you can start your trading with a demo account. This will help you learn strategies and watch market trends. Once you understand the trend, you can start investing in real accounts. However, you should be careful with your funds as trading involves high risk.

6. Generate additional income:

To achieve your financial goals, you must first set goals. Once you’ve set goals, you can identify additional sources to earn additional income.

As you get older, you will find that taking an active role in managing your profession will affect your financial security much more than you previously believed. In addition to accelerating your financial goals, a side gig can dramatically alter your financial outlook.

7. Create emergency funds:

Having funds allocated for emergencies will avoid financial problems. An emergency fund consisting of three to six months of living expenses is ideal, but starting with a small amount will suffice for occasional small crises.

Use your budget to determine how much you can save each month, then set up an automatic transfer to make it easy to save.