Financial milestones for under 25’s
Many young people are unsure about what financial milestones they could be aiming for. This post outlines key financial goals for those under 25, helping you plan for a secure future and figure out some financial goals.
Establish a budget: Use budgeting apps like BudgetBuddie to track your income and expenses. Set realistic spending limits and review your budget regularly.
Financial literacy: Be informed and educate yourself on financial concepts such as budgeting, investing, compound interest, good debt vs bad debt, how to save and how to live within your means. Don’t get your advice from TikTok – talk to a Financial Adviser.
Build a rainy day fund: Start by saving small amounts regularly. Automate transfers to a separate savings account, ideally at another bank, aim for at least 3 months of living expenses.
Start saving for retirement: While retirement is a long way off, join KiwiSaver if you haven’t already. Contribute a percentage of your income regularly. Take advantage of employer contributions and government incentives.
Invest in education: Pursue further education or certifications to enhance career prospects. Consider part-time work or apprenticeships to gain experience and offset costs.
Pay off debt: Focus on paying off high-interest debt first, such as credit cards. Use the snowball or avalanche method to systematically reduce debt.
Purchase insurance: Talk to a financial adviser, as they can recommend the appropriate insurance that is fit for purpose and only suggest what you need.
Set some financial goals: Set specific savings goals for short medium and long term goals, create a plan on how to achieve them.
Estate planning: If you have any assets or debt, make sure you have a Will sorted.
Travelling: Start saving for travel experiences. Look for budget-friendly options and plan trips that fit within your financial means. You may even look at working overseas for a while. Have travel insurance to protect against unexpected costs.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
