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There are different financial goals that you might want to consider accomplishing or achieving before you turn 40 years old. You should try to accomplish this as soon as possible in order to create a better financial future for yourself.
Eradicate Consumer Debt
Start by totally eradicating consumer debt. You shouldn’t be carrying large amounts of consumer debt at any point in your life. But it can be understandable if you’re in your twenties, just graduated college or even maybe high school and started racking up a little bit of credit card debt. It happens to millions of people, but you’ll want to consider getting rid of this as soon as possible because credit cards are operating between 15 and 25% APR. That’s a very high interest rate for people to be paying. And if you just look at your previous credit card statements and see how much as a percentage of your card you’ve been paying in interest rates, it could be a lot of money. So financial experts like Don Gayhardt suggest that you eradicate consumer debt, personal loans, and high interest loans.
Established Credit
Some people strictly use cash and they don’t use credit cards. They don’t ever borrow money in their life. If they want a car, they’ll buy it in cash. If they want a house, they will buy in cash and they never borrow money. But there are cases where you might not foresee that you need to have a credit score, but you might need one.
There are some people who have graduated high school and they wanted to go to college. They try to get a loan. They need their parents to help because they aren’t even 18. So they need someone to help co-sign and get the loan. But the parents either have no credit score or have terrible credit. And so what happens here, in this case, is that maybe you want to help your child get a student loan but you have terrible credit or no credit score at all. Thus, you’re going to end up paying so much more in interest rates because you haven’t proven that you’re a good borrower.
So lenders are going to end up charging you so much more money in interest rates. And there’s going to be times in your life where something like this might pop up that you might not foresee. Maybe you want to buy a house when you’re 35. But if you have no credit or bad credit, getting that mortgage, not only is it going to be difficult, but you’re going to end up paying thousands of dollars more than if you had a great credit score. Financial experts suggest that you shoot for something around 700 or higher as your credit score. It doesn’t have to be difficult to build credit. Maybe just consider getting one, buying a candy bar and not touching it for a very long time after you pay off that candy bar. This will help you build a better credit score.
