25 Money Goals for my 25th Year
I don't know how to act my age. I've never been this age before.
I thought I was going to have an amazing year. I had just moved the year prior and was ready to spend my time at countless happy hours and brunches in New York City. I was supposed to go to Spain, Toronto, and Los Angeles. I was going to celebrate my official one year work anniversary. I started 2020 off strong enjoying my time with friends, family, and coworkers. But alas, everything was put on hold.
I was very fortunate this year, without a doubt. There were a lot of things I was thankful for, despite the hardships that this year brought to others. The inconveniences I faced were nothing in comparison to the struggles that the pandemic caused and while I know things won’t magically get better when the clock strikes 12:00 on New Years, I’m still looking forward to the future.
With that being said, I turn 25 this December. I didn’t think this is what it was going to be like leading up to my 25th birthday. I feel old and young all at the same time, but most importantly I still feel lost. My mid-twenties have been thrown in for a loop, but that doesn’t mean I shouldn’t give up. My birthday is another celebration — another benchmark. This post is inspired by Holly Trantham’s article on The Financial Diet, “25 Money Goals for my 25th Year,” where she listed things she wanted to work on. While we both had some similar goals, we also had our own priorities on what we wanted to accomplish at 25. Like she said, I’m not here to tell anyone where they should be in their mid-twenties. Physically, mentally, financially, we’re all at different points. As I enter my 25th year, here are some of my goals that I’d like to meet:
Bulk up my Emergency Fund. 2020 was a particularly scary year, riddled with instability for many. I was very fortunate to maintain my current job, without any pay/hour cuts, but it’s pertinent that I continue to grow my emergency fund. I currently have about 3 solid months saved, but am aiming to have 6 months saved.
Pay Off More Student Loans. I was able to pay off a solid chunk of my student loans this year, but I hope to maintain a similar amount for the following year, but the only caveat is that federal student loan interest will kick back as a result of the student loan forbearance extension expiring. It was a good run to take advantage of not having interest pile up.
Contribute to my ROTH IRA. I plan on maximizing my employer’s 401k match again this year, but I also want to start putting money towards my Roth IRA, even if it’s a nominal amount every month.
Save and Budget for a Move. The biggest thing that I foresee eating away at my savings account is my impending move in 2021. My apartment lease expires at the end of summer 2021. I would probably move in with my boyfriend and we would have to budget for a new place, including first month’s rent, security deposit, a broker's fee, and furniture. I luckily have pieces that I can bring over to my new place, but there are definitely new expenses coming my way.
Hopefully Pay Less for Rent! I’m currently paying what I would consider at the top of my budget, so I would like to pay less OR pay about the same, but with added amenities and/or space. My priorities with apartment living have changed since the pandemic and it would be nice to have more space for an office and hobbies.
Implement No-Spend Challenges. As an avid physical (pre-Covid) and online window shopper, I find bliss in adding things to my shopping cart and then closing the tab. Sometimes, the sales get the better of me. I’m hoping to implement periodic no-spend challenges, whether it be for a week or a month on various things like eating out, clothes, miscellaneous, or everything. I also plan on telling a few close friends about my plans, and even letting them randomly select weeks in 2021, so I can be held accountable for my actions. I already have a few weeks marked on my calendar!
Open a Credit Card and Use It Wisely! Sorry Dave Ramsey! It sounds counterintuitive to have all these financial goals and then say I want a credit card. With great caution, I want to use a card to rack up points on things that I’m already spending money on, so I can later use points for travel. While I don’t want to be wrapped up in the gamification of collecting points, I do want to be able to rack up points to make a larger purchase in the future. My goal is to never have an actual balance on the card and pay it off each month.
Donate More to Causes I Care About. This past year has really highlighted the many struggles that have been existing in society and I have the financial means to help others.
Actually go to the Doctor(s). As I’ve shuffled around the past couple years and switched from being on my mom’s insurance plan to my school’s to my own through my employer, I haven’t really gone to the doctor much. I’ve gone to local urgent care walk-in clinics, but have yet to establish a new PCP. I wanted to sort this all out in 2020, but with the pandemic, it was easier to just stay home, but I know that since I am paying for my insurance I should get some use out of it and get my routine check-ups!
Shop My Own Closet. For someone who has been WFH since March and doesn’t typically get dressed everyday, I’ve gotten a lot of new additions to my closet. It’s time to stop buying and actually get some use out of my closet.
Prioritize secondhand, thrift, and local. If I am feeling some need for retail therapy, I should focus on buying thrifted or locally.
Mend and Reinvent. Not only should I wear the good clothes I already have, but I should learn to properly mend my clothes, whether it’s fixing a button or closing a rip. I can also get creative and DIY it into something personalized and new. In the past, I’ve gotten creative with a pair of scissors and fabric glue, but would like to build my DIY skills.
Invest? Perhaps it’s time to buy shares in other companies and do the whole build and “diversify your portfolio” thing. Time to learn more about investing!
Take Advantage of At-Home Workouts. I simply need to get more use out of the yoga mat I have and the millions of free workout videos available online. I was pretty good about it during the summer, but have fallen off since then.
Practice Health is Wealth. Medical expenses can cost you, so I’d like to practice healthier habits beyond that of just doing cardio inside my apartment!
Take advantage of additional Employee Benefits. I know my employer has an EAP, or Employer Assistance Program, where they offer assessments, counseling, and services to employees who are seeking help for personal or work-related problems. I think it would be helpful to look into their free mental health and financial services.
Invest in my Career. This is a bit open ended, but I want to start taking exams for my architecture license, as well as join an organization or two related to my field. This also includes taking advantage of free resources for educational enrichment, like attending free lectures and dedicating time to updating my resume, portfolio, website, and online profiles.
Save for Other Short-Term Goals. I currently just save with the intention of building my emergency fund, as well as saving for a new apartment. However, I want to establish other savings goals adjacent to my bigger goals. My two short-term goals would be to 1)Save for my next vacation 2)Save to build a custom PC.
Consider Side Hustles. What can I monetize? What can I make and sell? I wonder what I could create and/or do to make a passive income.
Grow my Net Worth. For the first time this year, I saw my net worth in the positives. Of course all my goals are aimed to help my financial situation, but I want to keep in mind that I’m already in the positives and should aim higher!
Curb Take-Out and Food Delivery Services. Prior to Covid, I spent money on actual groceries and dining out in the city. During WFH, I spend my food money on general groceries, delivery (UberEats, GrubHub), and grocery-delivery services (InstaCart). While I want to continue supporting the local restaurants in my area, I need to be more conscious of when and how much I’m spending.
Live and Spend More Sustainably. I’m on a slow sustainability journey and as I finish up certain products within the next year, I’d like to explore more sustainable options and alternatives that could change my lifestyle.
Reset and Automate. I was pretty good about automating my savings and loan payments prior to 2020, but during the pandemic I started to make more manual payments for whatever reason. Time to automate!
Cut my Screen Time. For some peace of mind and to give myself a well-needed break, duh. That time could be used to do other things!
Be Flexible. 2020 is not what we expected, and we don’t know what 2021 has in store, so while I do have all these money goals, I shouldn’t be hard on myself for slipping up sometimes. It’s a good thing to be flexible and adaptive.
Maybe something resonated with you. Maybe you’re 25, too! Perhaps you’re older or younger, also reassessing your financial goals at whatever age. It’s ambitious to try to achieve everything, but having a list is a good start. At least now that my goals are publicly on the internet, there’s some accountability for myself to stay motivated to meet these goals. Here’s to 25!
If you’re younger, what goals (financial and non-financial) do you want to achieve by your 25th birthday? If you’re older, what advice would you give your 25 year old self?
25 Money Goals for my 25th Year: Turning 25 in a pandemic and what I’m hoping to achieve
