Your ultimate finance checklist: Money expert reveals what you should achieve by age 30 – including owning a home, ditching your credit card and NEVER relying on parental help
- Money man Max Phelps has revealed the five things you must have by 30
- From owning your home or investment property to being otherwise debt free
- He says people should definitely still not be relying on handouts from parents
By the time you are 30 you should well-and-truly be financially independent of your parents, have good money habits and probably own a home, according to money experts.
Money man Max Phelps insists there are five things you must achieve, financially by the end of your 20s and worries too many young people find themselves ‘approaching 30 without a financial game plan’.
‘In fact, increasingly, people in their 20s are becoming less likely to achieve important financial goals by the age of 30 that their predecessors did a generation ago. This is concerning and means we need to do more to help them,’ Mr Phelps said.
Money experts say you should own your own home or investment property by 30
Money man Max Phelps insists there are five things you must achieve, financially by the end of your 20s
He notes people in their 20s are all on unique journeys with studying, career choices, family demands and relationships at such varying stages.
‘There are reasons why they haven’t got their financial act together, but at some point this needs to change, and sooner rather than later,’ he said.
‘It is an incredibly uncomfortable feeling that isn’t spoken about enough. Not being on track with your money can feel very isolating.’
Mr Phelps, says by 30 people should be independent from their parents, have created good spending habits, eliminated all non-investment debt, have income protection and own a property.
When Mr Phelps says people should be independent from their parents this means they should not be living with them, taking hand outs or letting them pay their rent.
Creating money habits is slightly more ambiguous.
Impulse spending, not fixing late payments, disregarding your budget each month – or not having one altogether – are all common mistakes people make in their 20s
Experts reveal financial must haves for people over 30
Be independent from your parents
According to Mr Phelps you should not be living with your parents, letting them pay your rent or bills or taking handouts from them.
Create good habits
You should be keeping to your budget, eliminating impulsive spending and paying things on time.
Eliminate all non-investment debt
You should no longer have credit cards, car loans or an AfterPay account.
Protect your income
The money expert says you should have income protection in case you lose work, or are injured.
Buy your first property
You should own your home or an investment property buy 30 to guarantee lifelong financial security, he claims.
‘Impulse spending, not fixing late payments, disregarding your budget each month – or not having one altogether – are all common mistakes people make in their 20s. However, establishing smart habits now will, quite literally, pay off in your 30s,’ he said.
He also said 30 is the magic age where people should have paid off their personal loans, car loans credit cards and Afterpay accounts and ‘never return’.
He also advocates income protection until the age of 60.
A $500,000 property doubling once is worth $1 million, a second time is $2 million and a third time is $4 million – that’s $3.5 million of growth, or an average of $100,000 every year for 35 years
But buying a property is key, Mr Phelps says.
‘Provided it’s in an area with good long term potential and keeps pace with average property price growth over the past 10 years of 6.4 percent, it could double in value three times before you get to the age of 65.
‘A $500,000 property doubling once is worth $1 million, a second time is $2 million and a third time is $4 million – that’s $3.5 million of growth, or an average of $100,000 every year for 35 years,’ he said.