Money tips Millennials should to learn before reaching 30

Money matters are among many priorities for young adults, but finance specialists say these tips can deliver them a richer future.

Financial adviser Ben Nash says saving sets a foundation for financial success.

Young adults are taking more interest in their finances than past generations, but many still reach 30 with bigger money issues than they should.

The rise of social media, podcasts and apps has made money and investment advice easily accessible for millions, experts say.

However, many teenagers and twenty-somethings are “brought up into a world that’s our parents’ world and they might not have had a focus on managing money”, says finance specialist and author Glen James.

Others feel overwhelmed by all the noise around making smart money moves and how to get started, says Millennial financial adviser Ben Nash.

These five key lessons form a strong guide for reaching your thirties in strong financial shape.

1. SAVING CAN START SMALL

Nash says this sets the foundation for financial success.

“While there’s not a set percentage of your income that you should be saving that will guarantee success, starting with a small percentage and then building on this over time can help you ramp up your portfolio without making big sacrifices,” he says.

2. INVEST EARLY

Using micro-investing apps can be an easy and low-cost way to get started as an investor and begin building knowledge, Nash says.

Your superannuation is also an investment asset, just with preservation rules. “Putting in a bit of work when you’re young will pay big dividends over time,” Nash says.

Glen James, author of Sort Your Money Out & Get Invested. Picture: Supplied

3. A FOOT IN PROPERTY

“The property market for the last 100-plus years just keeps going up, so the longer you wait the harder it is to make it happen,” Nash says.

“You’ll get a lot of benefit from being crystal clear on how much you need to get into the market, then setting a clear timeline around when you can get there.”

4. DITCH DEBT

Nash says trying to get ahead financially while juggling debts is taking two steps forward and one step back. He says aim to pay off high-interest debt first such as credit cards or personal loans.

James says living life on credit will leave you “holding the bag” at some point, so develop good habits early and avoid interest-free deals, buy-now-pay-later schemes and personal debt where possible.

5. SET GOALS

“Most people I’ve talked to and coached have achieved more when they’ve had solid goals in their life – then it’s not drifting,” James says.

“Understand that money and growing wealth is more to do with your behaviours than how smart you are. There’s a lot of really smart people who are really bad with money.”

Originally published as Money tips Millennials should to learn before reaching 30