Five Things You Need to Improve Your Wealth Before 30

Table of Contents

How to Improve Your Worth Early

First of all, don’t panic. Take a deep breath and read this on the toilet, in the club, at happy hour, during brunch, after lunch, and prior to Netflix.

If you want to reach $1M and cruise Saint Tropez, you really need to get your act together quick. Turns out most people end up broke. Don’t choke during the finals.

These are the five things that I think you can accomplish because you are an adult. And here is a bonus plan just because you clicked on this, the Net/Max Personal Financial Plan.

1. Google/YouTube Everything

No shame in the game. There are tons of stuff that I don’t know so instead of simply tuning to Cardi B’s “Money” video or Quavo’s “How bout that”; turns out you can learn how to unclog the toilet (click – it bailed me out), 14 facts about money, or even complicated stuff like Excel (for work purposes because you lied on your resume).

Worry not, there is a nerd that put it all on there. If you are lucky they have an Aussie accent, which is calm especially if you cut your finger and bleeding all over the place. Or better yet, Rob explains, pretty much every comic book out there with a silky smooth texture.

Learn to cook, clean, dance, wear clothes, drive, fly, travel, and even audiobooks. It’s the ultimate life hack! I know women who learn how to put on a full face on Youtube. FULL FACE!!!! – Beat!!!

2. Know Your Net Worth

I talk about this a lot. You have to know how much you are worth. It’s the basic step toward understanding money and being on your way up or down on the financial scale (read my Net/Max Financial Plan if you want to fall down the rabbit hole)

Excerpt from Net Worth vs Income

Let’s take a look at some numbers so you can see the net worth in action. Take the following example of Hannah. She has a college education, works in a downtown Seattle office, and owns her own apartment.

Assets: Residence: $500K, Emergency fund: $2K, Retirement savings 401(k): $30K = $532K

Liabilities: Mortgage: $400K, Credit card debt: $15K, Student loan: $100K = $515K

Total Net Worth: Assets $532K – Liabilities $515K = $17K

Or check out Average Net Worth by Age

“Knowing your personal net worth is one of the most important aspects of personal finance.

It’s one of the best indicators we have to know if we are on target to meet our goals. Whether you want to be debt-free, buy a home, pay for college for your children, or to retire you need to be on target.

Your net worth is a way to see what is holding us back. It’s a very strong indicator of your overall financial health.” Candice Elliott, September 21, 2018

3. Have SMART Goals!!

Better yet, host a Vision Board Party. They are easy and your guests bring the wine. You get a free night of entertainment and free leftover booze. Store one bottle away for every 3 friends, they won’t notice. They drive away sober and you get a stash for later. You owe me for that tip. Don’t tell them about it.

4. Make a Budget That Works For You

You hate it but it’s what adults do. Besides once you have it done early, it’s not that bad. You can also use apps like Mint.com or Personal Capital.

Budgeting is simply balancing your expenses with your income. If they don’t balance and you spend more than you make, you will have a problem.

Many people don’t realize that they spend more than they earn and slowly sink deeper into debt every year. Don’t be that person. Just budget so you can ball out without the Bow Wow Challenge.

Bonus Points, check out MySSA.gov. It will show you all your earnings from every year you ever worked as well as your anticipate Social Security check if it’s still available. Tun tun tun…

5. Save at least 10%, preferably more like 30% because you only retire once **(so YORO).**

It is your life. This is the simplest part. Set aside the money into a different account and forget it. Especially if you aren’t good at all this financial stuff. It’s a start. It is better than nothing.

Make it automatic so you can rest easy.

How much do You Need in Retirement!

For older households, expenses total about $3,800 a month, on average, which is only about $1,000 less than for younger Americans.

For households headed by someone age 75 or older, the median value of retirement holdings is $120,000, with an average holding of $336,500.

You would have to make that $340k work for the next 20-30 years. So it’s breaking out $340k multiply by .90 (inflation and buying power) divided by 25 years, which equals $12,240/year plus about $24,000/year (from hopefully SSN).

Grand total: $36,240/year or $3,020/month. That’s $780 less than the average expense.

What do these numbers tell you?

The headline here: Most people aren’t saving enough for retirement and are entering retirement with very little stashed away. ARIELLE O’SHEA, August 2, 2018

Final Remarks

“I might not know you personally; I still hope for the best in your life. Now is the time to start. Even if it is $1,000. It’s good to have for an emergency. So let’s start with the $1,000 and work our way to $1,000,000. ” LG