In your 20s, hitting 30 can seem like a major deadline. You might start asking yourself questions about financial security, building wealth, and even retirement planning.

Your 20s are the perfect time to take charge of personal debt, accelerate your savings, and leverage the power of compound interest. While everyone is different, these top financial milestones are a great starting point for setting wealth goals in your 20s.

1. Start budgeting

Your 20s are the perfect time to start living on a budget if you haven’t already started. If you’re now earning an income, setting up a household, or tackling rent and mortgage payments, the time has come to start thinking about your long-term financial goals and tracking your spending habits. A budget can clarify where your money’s going, help you save for a holiday or new car, and let you find ways to save more for your wealth-building goals.

2. Automate your savings

When you start automating your savings, you’ll have reached another critical financial milestone that reflects a mature approach to managing your money. Whether you put your money into a mortgage offset account or a high-interest savings account, setting up automated payments lets you control your spending while ensuring a fixed percentage of every pay cheque is put away.

Decide on a workable ratio for you, for example, you could start out by dividing 60% for expenses, 20% for your savings account, and 10% each for your fun and emergency account. Set it up and watch your savings grow. It’s a good motivator to set goals for your savings, — a car, your child’s education, a holiday — and then tick these off and set new goals as you achieve them.

3. Build up your emergency fund

It’s all too easy, especially when you’re in your 20s, to assume everything is going to go well. However, the unexpected can happen, so if you haven’t already, start building your precautionary savings account so you have something to fall back on when emergencies arise. For example, you might want to aim for six months of expenses saved up in case of health, work, or other unexpected issues.

4. Aim for zero credit card debt

Pay down your personal debt as early as you can to avoid paying interest over a long period of time. High-interest debts — like those that come with credit cards — can hinder your ability to save money and build wealth if you maintain an outstanding balance for a long period of time. It can be tempting to live for the moment and accumulate personal debt in your 20s, but it’s a beneficial milestone to pay these off quickly so you can tackle your savings and other financial goals.

5. Maximise your superannuation balance

Now is the ideal time for you to start paying extra attention to your super and really get the ball rolling. So, how much should you have in your super by your 20s?

With average super balances increasing, Aussies are beginning to be aware of the importance of building up their super early for a comfortable retirement. Everyone has a different working history and your super balance will be different to the next person’s, but these figures for mean Australian super balances 2015-16 can be used as a general indicator or guide:

• 20 to 24 years: this age group had a mean superannuation balance of $5,501.
• 25 to 29 years: this age group had a mean superannuation balance of $21,372.
• 30 to 34 years: this age group had a mean superannuation balance of $38,386.

6. Build your net worth

Your net worth — all your assets minus your debts — is one of the most important indicators of your financial situation. While everyone’s situation is different, some experts suggest a net worth of around $73,000 by the time you reach 30 is realistic and healthy.

Whatever the figure you have in mind throughout your 20s, and regardless of what you aim to have at the end of this decade, you’ll want to concentrate on building your net worth and check in at least once a year to adjust your net-worth milestones.

7. Get started on your investment strategy

Your investment strategy affects your retirement nest egg as well as your savings and wealth-building, so tick off another milestone and create a clear strategy. As you save, you can put money aside for shares, real estate, and other types of investments (including general savings goals like holidays and cars).

Get on track and build your wealth

Getting financial strategies started in your 20s gives you a longer investment horizon. This means your money is working hard for you and ensuring reliable returns over the long term, which is much more reliable than short-term investments with high volatility. So, work out what you want to achieve with your investments and consider your retirement plan even though it seems far off.

SRG Finance is a leading provider of short-term personal finance, we can offer you solutions for your needs that major banks often can’t. To find out more about obtaining a short-term loan, contact our team for more information today.