4 Financial Milestones You’ll Want To Hit Before You Quit Working!

Financial milestones are the solution to this problem. Setting goals for yourself and hitting them can keep you motivated to stay on track for the long run. In this post, I go over 4 major financial milestones that will satisfy your ego but also keep you working hard so that you can eventually hit your own personal finance goals. Let’s jump right in!

Wealth is  Time Not Money

Basically, your wealth is how long you can live if you quit your job RIGHT NOW. If you have $100,000 and your monthly expense is $10,000, your wealth is 10 months. Conversely, if you have $1 MILLION, but you need 500k per month to live, your wealth is only 2 months. So in this scenario, the latter person would be LESS wealthy than the former, not the other way around.

So, the milestones I’m listing won’t be dollar figures but rather certain criteria that is different for every person. That being said, I will throw out some ball-park figures that will apply for MOST people in 2021.

4 Financial Milestones for Student

Here are 4 of the most important financial milestones for anyone in life (but especially crucial to students as you have a huge headstart):

No More Debt

The first financial milestone for students (and anybody to be honest) is becoming debt-free. It’s impossible to build wealth when you owe money to other people and need to pay hefty interest payments on your loans. Consequently, you should celebrate when you finally become debt-free!

For students owing 10k – 60k in student loans, this might take you anywhere from 1-5 years to accomplish, but here are some things that might speed up the process for you: 1. Pay your debt off BEFORE you do anything else with your money 2. Stay AWAY from credit card debt (you can still use credit cards, just don’t add more debt to your pile of student loans) 3. Cut living expenses hard until you’re debt-free

Built Up  Emergency Fund 

Building up an emergency fund will help solve this issue. Ideally, your emergency fund will cover 6-8 months of your living expenses, so even if you lose your job, you’ll be fine for a while. This is what I call “work-free”. You still need your job to live, but if you lose it, you’re fine for a while and can reasonably get a new job.

The size of your emergency fund will vary depending on what your monthly expenses are, but for an average person who spends $3000 a month, your fund should be around $18,000 – $24,000.

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