Ramit Sethi outlines four financial milestones for your 30s: eliminate high-interest debt, build a six-month emergency fund, invest at least 10% of your salary and increase it by 1% each December, and hold monthly money meetings with your partner.
January 20, 2025.
Six months of expenses.
10% or more of your salary.
Every year in December, increase the investment rate by 1%.
Monthly.
In this video I'm going to share the exact milestones to hit in your 30s to set yourself up for a rich life. Milestone 1. You've paid off all high interest debt. Paying off your debt, especially high interest debt like a credit card, will give you an instant and big return. Milestone two. You've saved a six month emergency fund. Now most emergency fund Recommendations are for 3 months of your bare minimum expenses. If you have a six month emergency fund, you'll be prepared in case something more extreme happens like a job loss. Milestone 3. You consistently invest 10% or more of your salary. The more you invest, the better. That is because the real wealth is created in investing. So every year in December, set a calendar reminder to increase your investment rate by 1%. Milestone 4. You have monthly money meetings with your partner. This meeting, which is on the calendar every single month, gives you and your partner the time and space to talk about your finances.
