Top 7 Financial Goals to Set for Your 20s and 30s

As you enter adulthood, one of the most important things you must do is set clear financial goals for yourself, especially in your 20s and 30s. Strategically, planning for your future financially helps you take control of your finances, paving the way for financial independence and the freedom to live the life you want when you are older.

In this article, we have put together 7 financial goals you can set in your 20s and 30s to secure your financial future. So, let’s dive in!

What are Financial Goals?

A financial goal is a specific target or objective that an individual or household aims to achieve through the effective management and allocation of their financial resources over a defined period of time.

For example, you can set a financial goal to save a certain amount of money for a specific purpose (e.g., buying a house, funding a child’s education, or retiring comfortably), pay off a particular debt such as a mortgage, student loans, or credit card balances, accumulate a specified amount of wealth or net worth, or fund a major purchase or expenditure (e.g., a vacation, a new car, or starting a business).

Setting financial goals provides direction, motivation, and a sense of purpose in managing your personal or household finances. These goals help you prioritize your spending, saving, and investment decisions while measuring your progress toward achieving them.

Financial Goals for Your 20’s and 30’s

Below are the 7 best financial goals you can set for yourself in your 20s or 30s:

1. Invest in Yourself

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Investing in yourself is one of the best things you can do for yourself in the early stages of life. After all, you are the most valuable asset!

When you’re young and just starting out, it’s tempting to prioritize things like buying a home, saving for retirement, or paying off student loans with any extra money you have.

While those are all important financial goals, there’s another crucial area where investing your resources can pay incredible dividends: investing in yourself.

The reality is that your greatest money-making asset is your ability to earn an income through your skills, knowledge, and capabilities.

Unlike a home or retirement account that can fluctuate based on market conditions, your investment in yourself through education, training, and self-improvement and development lasts a lifetime and directly impacts your earnings potential.

The earlier you invest in yourself, the greater the payoff because your youthful stage is when you have the most time, energy, and mental capacity to dedicate to self-development and growth.

Below are some of the ways you can invest in yourself:

Pursue additional education, certifications, or training for career growth.
Learn high-income skills such as coding, digital marketing, artificial intelligence, data science, etc.
Start your own business or side hustle to make more money or diversify your income streams.
Read books and listen to podcasts for self-improvement and development.
Find a mentor to learn from, and also surround yourself with people of value you can learn from.

In your 20s and 30s, time and compounding are your biggest advantages; use them wisely. Making self-investment a top priority now allows you to reap the benefits through higher income, greater career opportunities, and increased options for decades to come. There’s simply no better investment.

2. Emergency Fund

An emergency fund is money set aside for use in case of an emergency. An emergency fund creates a financial buffer that can save you from unforeseen situations or unexpected expenses like job loss, medical expenses, etc. that may come your way without having to rely on loans and credit cards.

For example, if your monthly living expenses amount to $3,000, you should aim to save between $9,000 and $18,000 in your emergency fund (3 to 6 months’ worth of expenses).

Ideally, it is best to save your emergency fund in a high-savings account that is easily accessible. The reason is that emergencies can happen at any time, and when they do, you should be able to access the funds to cater to them easily.

Here are some tips to help you build and maintain an emergency fund:

Start small if needed: If saving 3-6 months’ worth of expenses seems daunting, begin with a smaller goal, such as saving $1,000 or one month’s worth of expenses. Every little bit counts, and you can build up from there.
Automate your savings: Set up automatic transfers from your checking account to a dedicated savings account for your emergency fund. This way, you’ll be saving consistently without having to remember to do it manually.
Cut back on discretionary expenses: Identify areas where you can trim your spending, such as dining out, entertainment, or subscription services, and allocate those funds toward your emergency fund.
Use windfalls wisely: If you receive a tax refund, bonus, or inheritance, consider putting a portion or all of it into your emergency fund.
Review and adjust: Periodically review your emergency fund to ensure it still covers 3–6 months of your current living expenses. Adjust your savings goal as your income or expenses change.

Remember, an emergency fund is a critical component of financial security. It gives you peace of mind knowing that you have a cushion to fall back on during unexpected situations, helping you avoid going into debt or making hasty decisions with your investments.

3. Pay Off High-Interest Debts

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One of the biggest wealth killers for young adults is carrying high-interest debt like credit cards. The compounding interest on these debts can make balances balloon out of control if you only make minimum payments. Paying off these debts should be one of your top financial priorities in your 20s and 30s.

For instance, credit card interest rates can range from 15–25% or higher. That means a $5,000 balance at 20% interest will accrue $1,000 in interest annually if you make no payments towards the principal. Racking up high-interest debt on multiple cards can put you in a deep debt hole that is extremely difficult to climb out of.

That’s why it’s important to create a plan to aggressively pay off credit card balances and any other debts, like personal loans with interest rates over 10%.

Here are some of the great strategies you can use to pay off any debt you may have:

The debt snowball: Pay minimums on all debts except the smallest, which you attack with intense focus until it’s paid off. Then roll that payment to the next debt.
The debt avalanche: pay minimums except on the highest interest debt, which you prioritize paying off first to save money on interest charges.
Balance transfer cards: transfer high-interest balances to a 0% APR card and pay off aggressively before the promo period ends.

4. Start Budgeting

Budgeting is another important practice you must have if you want to be financially free. Budgeting provides clarity over where your money is going and allows you to make smart decisions that will set you up for greater financial freedom and security in the decades ahead.

Creating and sticking to a realistic budget allows you to make purposeful decisions about how to allocate your income toward essential expenses, debt payments, and savings goals. Without a budget, it’s all too easy for funds to slip through your fingers on discretionary, unnecessary purchases.

When budgeting, a good target is to limit essential living expenses like housing, transportation, food, and utilities to no more than 50% of your after-tax income. Then 30% goes towards your wants, such as dining out, entertainment, etc.

Then put 20% of your income into paying high-interest debt, like credit cards, saving into your emergency funds, and finally, allocating the rest of the funds toward other financial goals, such as saving or investing.

These may include saving for a down payment on a home, contributing to retirement accounts like 401(k)s or IRAs, saving for your children’s education, or investing for future goals like starting a business or retiring early.

Even saving relatively small amounts consistently can make a big difference due to compound growth over decades.

Budgeting is a skill that takes practice. You can use online tools or apps to help you track your spending and identify areas to cut back.

5. Invest Wisely

One of the most important financial goals for your 20s and 30s is to start investing early to harness the power of compound growth. The earlier you begin investing, the more time your money has to potentially grow through the compounding of investment returns.

As discussed earlier, focus on paying off any high-interest debt, like credit cards, first. Then, make a goal to start contributing to retirement accounts like 401(k)s and IRAs, even if it’s just small amounts at first. Also, taking advantage of employer-matched retirement contributions is like getting free money.

Develop the habit of setting aside a portion of each paycheck for investments. Even modest sums invested consistently can grow significantly over decades through compound interest. The money invested in your 20s or 30s has the longest runway to grow before retirement.

Also, explore opening taxable brokerage accounts to save for other goals like homeownership or starting a business. A diversified portfolio of low-cost index funds tracking the total market is an effective long-term investment approach for most.

The investing habits and discipline you build in your 20s and 30s through consistent contributions will propel you toward a secure financial future down the road. Time is your biggest advantage when investing for retirement and other long-term goals, so start early!

6. Start Saving for Retirement

One of the most important financial goals you should have in your 20s or 30s is to start saving for retirement. The earlier you begin, the more your money can grow over time, thanks to the power of compound interest.

Many people think they can put off saving for retirement until later in life, but this makes it much harder to build up a sufficient nest egg. Ideally, you want to get into the habit of paying yourself first by automatically transferring money from each paycheck into a retirement account like a 401(k) or IRA.

How much should you save? A general guideline is to try to tuck away 10–15% of your pre-tax income for retirement. This may seem like a lot when you’re young and likely earning an entry-level salary. However, the money invested now has incredible growth potential over 30–40 years that you can’t replicate by starting later.

Let’s say you begin saving $300 per month at age 25 and earn a 7% annual return. By age 65, you’d have over $1 million! In contrast, waiting until you turn 35 to start saving that $300 per month would leave you with only around $450,000 at 65—less than half as much.

The biggest advantage you have in your youthful stage is time. Small, consistent contributions today will make a huge difference decades from now when you’re ready to retire comfortably.

7. Start Building Your Credit Score

One of the most important financial goals you should have in your 20s or 30s is to build a strong credit score. Your credit score is essentially a numeric grade that ranges from 300 to 850 and represents how trustworthy you are as a borrower based on your credit history. Lenders use this number to decide whether to approve you for loans and credit cards, as well as what interest rates to offer you.

Having a good credit score (generally considered 700 or above) can save you tens of thousands of dollars over your lifetime. It allows you to qualify for the best rates on mortgages, auto loans, credit cards, and other financing. It can even help you get lower rates on rental housing and avoid having to pay large security deposits for utilities.

Below are some tips for building or improving your credit score:

Get a credit card and use it responsibly. Make all minimum payments on time each month, and try to keep your balance below 30% of the total credit limit.
Consider becoming an authorized user on a family member’s longstanding credit card account. Their positive payment history can help build your score.
Take out a small loan (student loan, auto loan, etc.) and make payments diligently.
Check your credit reports regularly at AnnualCreditReport.com and dispute any errors you find.
Use different types of credit accounts over time, as this helps build a robust credit profile.

Conclusion

Setting these financial goals in your 20s and 30s can help you build a strong foundation for your finances, which sets you up for financial independence in the future.

Also, remember, it’s never too early or too late to start. Even small steps taken consistently can lead to major financial milestones down the road. The key is to have a plan, stick to it with discipline, and regularly reassess your goals as your circumstances and priorities evolve over time.