11 BIG Money Milestones To Accomplish Before 40

About this video

• Video Title: 11 BIG Money Milestones To Accomplish Before 40
• Channel: Dave Zoller, CFP®
• Speakers: Dave Zoller
• Duration: 12:59

Overview

This video outlines eleven significant financial milestones that individuals should aim to achieve before the age of 40. The speaker emphasizes that accomplishing these milestones will simplify wealth building and accelerate the journey to financial freedom. The advice includes both traditional financial planning steps and less conventional strategies.

Key takeaways

• Emergency Fund: Establish an emergency fund covering 6-12 months of core expenses in a high-yield savings account to avoid debt and setbacks during unexpected events.
• High-Interest Debt Elimination: Aggressively pay off high-interest consumer debt, such as credit card debt, as it hinders wealth-building efforts.
• Automate Financial Systems (NFG): Implement a system for managing money by allocating funds to Needs, Freedom (investments), and Guilt-free spending. A suggested allocation is 70% for needs, 20% for freedom, and 10% for guilt-free spending, adjusting these percentages as income grows.
• Determine Your Hourly Rate: Establish a personal hourly rate, both current and aspirational, to make informed decisions about outsourcing tasks that cost more than your time is worth.
• Mastery and Learning: Focus on becoming exceptionally skilled in one area to increase income potential and allocate 1-3% of annual income towards continuous learning in that chosen field.
• Align Money with Values: Understand your core values and ensure your financial decisions and goals align with them to avoid chasing arbitrary financial targets.
• Joy Per Dollar Formula: Evaluate purchases by dividing the joy they bring (1-100) by their cost as a percentage of monthly income. A score above 50 suggests it's a worthwhile purchase.
• Estate Planning Basics: By age 40, have essential estate planning documents like a will and trust, updated beneficiaries, and adequate life insurance. Ensure your spouse can easily access account information.
• Regular Money Check-ins: Conduct monthly 20-30 minute financial reviews (updating net worth, analyzing finances) to stay connected with your money, whether single or married.
• Prioritize Health: Recognize that physical and mental health are foundational to enjoying wealth, making them crucial investments.