-Hi, I’m Chelsea.-And I’m Lauren.
And we are the Financial Diet.
And we also have Mona here today with her fresh summer cut.
So as most of your guys know,
Lauren has mostly moved behind the camera now.
She helps make the video
even more beautiful and produce them, etc.
But we’re doing a little bit of a refresh today
on a lot of the most important stuff that we’ve covered on TFD.
And so she thought she’d say hi for that.
And I also wanted to come back on to say hello
because there are so many more of you.
-There are so many new subscribers.-Yeah, so many
Ooooh! So that’s also part of the reason why
we wanted to do this little refresh,
for some of you who might be new.
So without any further do,
let’s just jump right in to
the 10 BIG MONEY STEPS that you should be taking before 30.
No.1 is create a six-month emergency fund.
Now this is definitely something we’ve touched on in the channel before,
but it always bears repeating.
Nearly 70% of Americans have under $1000
in their bank account at any given time,
which basically means that
不夸张地说 如果碰到任何不好的事情 他们就完了
if literally anything bad happens, they’re screwed.
And there is really one surefire way to know that
if that something bad happens, you’ll be covered.
And that is an emergency fund.
You know some people say it’s 3 months worth of total living cost,
some people it’s 9.
We think 6 months is about the right amount to have
to make sure that no matter what happens, you’re covered.
So that means 6 months of total living costs and expenses
in the account you can immediately access like a savings account.
If you don’t already have an emergency fund,
it should be your no.1 priority,
before anything else financially.
But if you don’t already have one,
the easiest way to go about it is to
challenge yourself to live super minimally for a few months
while taking on extra side jobs until you have that cash socked away.
No.2 is to overcome your bad spending habits.
Whether you’re an impulse spender, a chronic avoider or a card abuser,
being honest and upfront about your bad spending habits
is the first step of all financially responsible adults.
One of the most common bad habits amongst young people is impulse spending,
which can usually be tied to anxiety, unhappiness or stress.
Some good ways to fix bad spending habits are
to track your budget closely
and everything that you’re spending money on,
to make a plan for yourself
and to never impulse buy on things that are not essential items,
对于这些东西 给点时间 等等再买
give it time and wait on those purchases.
Chelsea actually made a really good video on
how to fix bad spending habits.
And we’ll link to that in the description below.
No.3 is master budget making.
Now there are a million good ways to track a budget.
You have apps. You have excel spreadsheet.
Some people like to do all cash budgets.
Whatever your system is,
the point is you have to
be closely tracking your money in and your money out.
But when it comes to actual breakdown of the budget,
while everyone’s situations and needs might vary.
There is a pretty simple rule
that helps most people figure their numbers out.
It’s called the 50-30-20 rule.
And all it means is
50% of your budget should be going to fixed costs,
like your rent, your monthly bills, your groceries, etc.
30% of it should be going to your financial goals,
your savings, your investment, your retirement, etc.
And then 20% is your flexible spending,
travel, going out with friends, movies, whatever.
Now you’re gonna have to tailor to your own needs obviously,
but it’s a great way to start structuring your spending.
No.4 is to master on time bill payment.
So it took me a long time to build up the habit
of paying my bills on time.
Life gets really busy,
and I tend to be a little bit forgetful.
So it would always slip my mind
when credit card bills were due,
and when my student loan payments were due.
Thankfully, I got it under control fast,
because that could have decimated my credit score.
It’s important to figure out
the system that works for you early on
to keep yourself on track.
因此 你可以做一些事 比如自动账单支付
So you can do things like automate bill payments,
you can consolidate certain bills
that you have less of them to think anout,
and you can also set up a ton of alerts and reminders in your phone.
Even something like for me personally putting post-its on my refrigerator
with the dates that my loan payments were due
is super helpful.
No.5 is have at least one side source of income.
Now this can be active income, like a side job,
or can be passive income, like investment.
但是 重点在于 你要有
But the point is you need to have
at least one more source of money coming in,
that isn’t your regular job.
And this is good for a lot of reasons.
Because obviously like with your side job and stuff,
you can learn extra skills
并且 你懂的 能充实你的简历
and, you know, sort of build your resume.
But even just in terms of pure money,
you build up a huge sense of secutiry.
in the fact that like let’s say
something does happen to your main job,
clearly it’s still terrible,
but it’s not the only source of income that you have,
so it’s less devastating.
And the more of those you build up,
the more freedom you have,
and the less pressure on your one job.
You’re not putting all your eggs in that basket.
No.6 is to have a good credit score.
Obviously easier said than done, but there it is.
So this is a really important one,
Because having a good credit score
opens you up to all those really fun adult things
that you wanna do,
like getting a mortgage,
securing a loan with a very low interest rate,
getting the credit card with more favorable terms,
leasing a car, all those things.
So we’ve talked about this on our channel before,
but a really quick refresher on
how to raise your score quickly
is to pay all your bills on time,
to keep your credit card balances low,
to pay off your debt,
and to also never open up too many cards at one point.
Now credit scores of 700 and above
are generally considered good.
And you can use sites like creditkarma to check your score
and help to raise it.
No. 7 is make the right debt repayment plan.
Basically the debt repayment plan that you start out with
when let’s say you graduate from college with student debt,
may not be the right way
to pay off your debt for the rest of your life.
As you grow and change,
everything from programs like the public service loan forgiveness program
to consolidation, to refinancing,
to whatever it may be
are all available to you
to make sure that the debt repayment
that you’re doing fits your needs
as well as your financial goals.
Make sure to do at least 2 checkins throughout your twenties
to ask yourself:
Is my debt payment plan the right one for me?
Or should I do some restructuring?
My husband actually refinanced his loans twice
since he’s graduated from college.
And he’s like only 28.
And he’s super happy with it.
It’s a badass move if it’s the right one for you.
Apps like student loan hero are great for checking in for your debt
and seeing what could be done with it.
No.8 is to start saving for retirement.
Your twenties are super valuable
to your long term retirement goals.
And the earlier that you set up those accounts,
the longer your money has to sit and grow at a compound interest.
So there are a lot of retirement accounts to get started with.
The most common of them being
401(k)s, IRAs and Roth IRAs.
Basically a 401(k) comes through your employer,
whereas you yourself get IRAs.
But they accomplish very similar goals.
And if you do have a retirement account through your employer,
make sure you’re finding out
whether or not they’ll match up
percentage of the money that you put into it.
Because you really want to maximize that benefit
at essentially free money you’re missing out on, if you don’t.
So obvioualy, everyone’s goals are gonna be different,
and the amount you’ll have saved by 30 will look different
but we did a great interview with our friend at Philadelphia
teaching 20 somethings how to get started with your retirement account.
No.9 is become financially fluent.
基本上 在每件事中 从投资到抵押贷款
Basically in everything from investing to mortgages
to just day to day money actions,
there are a lot of terms that
you need to be familiar with,
in order to at least speak and understand the language of money.
The more you really understand the money concepts,
the easier it is to decide your financial goals
and also make plans to achieve them.
We did a video breaking down some of the most crucial money terms
that everyone should know the definition of.
And we’ll link it below.
No.10 is to build a money community.
So as you approach 30,
this is gonna be something that is
of tantamount importance.
So tantamount, we are using the word tantamount.
Your money commumity is essentially comprised of people
that you feel like you can confide in,
that you cam express your long and short term
money goals, fears and dreams,
and people that are gonna be there
to support you along the way.
Basically people that you could have open and constructive conversations with.
You also want to have someone
like a more formal financial advisor or a financial buddy.
And we actually did a video on financial buddies
and we’ll link to that below.
Not everyone can afford a financial advisor,
but if you at least have one or two
really trusted people in your immediate community,
that’s already a big step.
So obviously there’re plenty of other steps
you’ll also be taking on the way to 30.
But those are 10 of the biggest ones
that if you master them,
you’ll have way more control and
way more freedom in your financial life.
So it’s super fun hanging out,
and as always, thank you for watching.
And don’t forget to hit the subscribe button
and go to THEFINANCIALDIET.COM for more.
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