When you’re in your 20’s it’s hard to know if you’re on track for financial success for your age. There are so many money moves to make, it can be hard to decipher which ones are the most important. Your 20’s set you up for your 30’s, and these millennial money moves are the most important to focus on while you build your financial foundation.

Since we all have different jobs, different sources of income, different upbringings, and different situations all together, it’s pretty tough to compare yourself to someone else. That being said, these millennial money moves can serve as key markers to measure your success!

Here are 5 millennial money moves in your 20’s and use as a measure of progress to ensure that you’re riding smoothly into your 30’s and beyond!

1. Start Saving for Retirement

   Getting a jump start on retirement saving needs to be high priority. The reason for this is compound interest; the earlier you start and the longer you’re saving for, the faster your money will grow. It’s a pretty amazing and motivating reason to start early! I have an entire blog post explaining the concept of compound interest HERE.

   If you contribute just $300 a month starting at age 20, you’ll retire with over $1 million. If you start at age 30? You’ll have less than HALF OF THAT!

2. Reach a Positive Net Worth

   Your 20’s are your chance to get ahead, and that means hammering away at your debt (hellooo student loans) and focusing on building a foundation. The goal of your 20’s should be to reduce your debt to as little as possible, while also saving. It may sound hard, but with a solid plan in place and some proactivity, it’s definitely possible. If you graduate college with a negative net worth, don’t fret. The course of your 20’s is a plenty of time to make a big dent.

   Breaking into a positive net worth before you enter your 30’s (not including a mortgage) gives you a clean slate to build long-term wealth.

3. Pay off All Consumer Debt

   Credit card debt is a major enemy. It’s the worse debt you can have, because it isn’t providing you any value (unlike student loans where you get an education) AND it has incredibly high interest rates. As a result, if it starts to pile up, which can happen quickly, it can easily get out of hand and haunt you for a long, long time. Get rid of it as fast as possible, or it will cripple you financially.

4. Reach a 750+ Credit Score

   Paying off your credit card will help boost your credit score! Your credit score is basically your rating on how likely you are to pay back a loan. Reaching “Excellent” status on your credit score, which is generally categorized as being above 750, will help you secure lower interest rates and be able to afford life’s bigger purchases, like a home.

5. You’ve Started Building an Investment Portfolio

   Investing in the stock market is the best way to keep your money working for you. This is an important step to take, but one that should only be taken once you’ve both maxed out your retirement contributions (or have a plan to do so each year) AND gotten a solid grasp on your debt. Once you have this foundation in place, it’s a good time to start branching out into a brokerage account and really help your money grow.

Making these millennial money moves in your 20’s will really help you get ahead and feel secure in your 30’s and beyond! Plus, the earlier you hit the milestones, the more you’ll reap the benefits.

 If you’ve been struggling to identify what to focus on beyond a simple budget, focus on these milestones to start building long-term wealth.