15 Financial Milestones That Bring the Most Joy

You know it's kind of funny when most people start a proper financial journey when they're at the point of "this is it, okay, I'm done living this way, I'm getting my together." Well, they think they know what kind of milestones will bring them the most joy, but you know what? You'd be surprised by how some big milestones feel like stepping over a puddle and the ones you thought would be small and insignificant are like jumping over a raging river.

So today we're putting together a list of things big and small that you can look for on this journey. If you've hit any of these milestones, let us know! We'd love to hear about it.

It all right, let's dive in.

Number one: when your investments outpace your income. If you keep going, one day your investments can actually outpace your income. A 4% return on your invested capital can actually be more than what you'd make from a traditional salary. It's the shift that moves you from working for money to money working for you. Studies have shown that for a lot of people this is one of the best parts of their financial journey because that's when you actually feel what financial freedom is like.

Now, you're not trading your time for money; you're financially secure. You feel like you've accomplished something big, and you know this is just the beginning. You're on the right track, so keep going. And if you haven't started yet, that's okay; the next one's for you.

Number two: starting is the hardest, but it's also the most important. It'll take a few months, maybe even a year, of regularly investing in a diverse portfolio for the joy of starting to actually hit you. It's almost like you don't trust yourself at the beginning. You think you'll forget about it or withdraw your money in an emergency or change your mind.

Once you got everything set up and you've got a standard debit order, your life will go on, and your investments won't be something that you think about very much until one day you check on everything and you see that you've already made some money. It's not a lot, but it's a start. All you have to do is keep living your life and making your regular payments. You realize that you made a decision to take your financial future seriously, and you did it.

And not just that; you also realize that while you've made a lot of sacrifices along the way, you also still lived a full, fun life. You were just more intentional about how you spent your money. You can start in your 30s and build the $350,000 portfolio while still having a great time. You start, you gain momentum, and you sit back and watch all that compounding effect. Even though it's just the beginning, you feel like, "Hey, I've kind of made it."

Number three: paying off your student loan. The burden of big debt is greater than any sense of safety and security you get from investing your money. It's such an emotionally rewarding milestone because you feel relieved, lighter, and so proud of yourself. Student loans, especially in the US, feel like a never-ending chapter in a book you didn't even want to read.

There are people stuck in cycles where they've been paying for four, five years, and they owe more than when they actually started paying because the interest rates are so messed up. Even when you play by the rules, you lose. So you basically have to pause the rest of your life and throw everything you've got into getting rid of that debt. And when you do it, you feel like a million bucks.

Okay, it's not just getting rid of that debt that's rewarding; it's realizing that you are able to throw yourself so wholeheartedly into one of the most difficult missions, and you freaking did it!

But it gets better.

At number four: when you pay off your first property. Paying off your first home isn't always thought of as the best financial move. Paying it off sooner could mean that you're pouring a lot of money into it, and financially that money could perform better if you invested it. But this isn't about getting the best bang for your buck; it's a mental thing, not a financial one.

It's about that feeling. It's the feeling of knowing that no matter what happens with your job, you will always have a roof over your head. Nobody can take away that shelter from you. The day your house is paid off, you get a sense of freedom that no amount of extra money from investments could ever top. It's these kinds of feelings that give you the level of security you cannot measure or buy with any currency.

You know that you could walk away from everything and you'd still be okay.

Number five: when an unexpected expense doesn't stress you out. Think about those moments when a mechanic tells you you need some new brakes or your electrician tells you you've got some major faults in the system and you need a new one. Your heart drops, right? You can get some money from your savings, but the rest, well, do you go into debt? At this point, all of your plans go out the window, and these issues seem to come up just as you're finally making some progress with your finances.

Now think about the moment you hear about those issues and you can just shrug and say, "Okay, I'll put it on my card." That is a life-changing milestone. When you handle financial curveballs without shaking in your boots, then you know you've made it. You've poured blood, sweat, and tears into building that 20K emergency savings buffer, and now you've reached a place where an emergency isn't going to wreck your finances. You move out of survival mode and into control.

Number six: when you're able to contribute the maximum amount to your retirement plan. Every country has a maximum amount you can contribute per year to your retirement plan. In some cases, the more you contribute, the more your employer matches that contribution and the better your tax benefit. So it's a milestone that many aim for, and when you reach it, it's like you've won the jackpot!

You know that not only are you thinking ahead, you're also doing the things you need to do to get ahead. You build trust in yourself this way. Saving for retirement is a big commitment, and so many people can't or won't do it. So, being able to save and then hit that maximum contribution, you know you're stable on the ground. In that case, you can do a little victory dance for yourself and set your sights on the next mission.

Number seven: realizing that you can add more value than your financial adviser. Financial milestones aren't only about hitting a certain number; so many of them have to do with taking control of your own money. Most people start off with a financial adviser and they let them take the reins for a few years, but once you've created the discipline around saving and investing, there could be a point where you become more interested in it.

You realize that because you're so invested—literally—you’re now at a place to add more value to your portfolio than your financial advisor is. You'll probably start by looking at a portfolio that isn't performing as well and then moving it around to a more diverse or low-cost setup. Then, when you see the difference that you've made, you know the best person to control your money is, in fact, you.

You save on fees, and the more you learn, the more you start to see returns that match or even beat the market. You're not sitting back anymore; you're being proactive, and you can see the payoff in real time.

Number eight: you watch markets, not your bosses. This one happens before your investments outpace your income. You have to feel this milestone first to have the motivation to keep going and reach it. Within a few years of you actually focusing on your investments, you learn that sure, the market is unpredictable and it has its risks, but it doesn't need your soul or your time and energy in the way that working for a boss does.

On the one hand, you're carefully watching your boss's mood to see if today is the day you can ask for a raise or time off. On the other hand, you're carefully watching the market for a downturn, knowing that your best move is to stay put and just watch with vague interest. One view is much better than the other, and you know which one it is.

Number nine: getting free of uncontrolled debt. At some point, you'll get to a point where leveraging debt becomes a part of your financial strategy, but before that, you'll reach the milestone of becoming debt-free. This is when you manage to get rid of uncontrolled debt, debt that's keeping you shackled instead of something that you can use to your advantage.

It's a great feeling you shouldn't skip. When you know that you won't open up a bill again and freak out at your interest payments, being in debt can make you feel like you're treading water all the time. Like at any moment, if something goes wrong, if a big wave comes your way, you'll be in danger. It's a stress that lingers at the back of your mind and stops you from focusing on things that matter and from enjoying life.

So letting go of that takes a huge weight off your shoulders. Now you've got the ability to grow your wealth without feeling like you have something holding you back all the time.

Number ten: the emotional impact of the first 100K. Hitting your first $100,000 is great for your net worth, but it's even better for your mental health. This is the moment you realize that you've gone beyond living paycheck to paycheck. Your entire mindset around money, time, relationships, and hard work shifts.

Your worries ease up because you've got a map of the path to get there, and you know you'll be okay if you just keep following it. Whether you make that money through hard work and savings or investment gains, it feels like you've accomplished your hardest goal. You walk through your days a little bit lighter because you're out of survival mode.

Now you've got enough mental energy to keep on building wealth and even to accelerate it. And you know what?

Number eleven: actually, every $100,000 feels pretty good. When you've made your money through sacrifice and hard work, every 100K feels like the first one. You've done it again! Hitting that number makes people feel like they can actually feel their progress happening.

The initial buildup is slow, but as you start moving along a little bit faster, you can see how every decision you make is having a huge impact. You can track it and do things to quicken the pace. You can use what you've learned to understand how fast you can get to your goal, and when you reach it, you can celebrate.

It gives you a very tangible idea of how building your wealth is like a road of small wins all built on top of each other.

Number twelve: watching the snowball effect. That first 100K takes some time, usually about 10 years on average, depending on your income and being able to save a decent portion. Then the next is about 5 years, 3 years, 2 years—you get the deal.

Depending on your smarts and skill level, it can take about 20 years to get to that first 500K. So you've been totally committed to this journey for two decades, and you're only about halfway to your goal. But then the million speeds up towards you, and you realize just how much momentum you've got.

Now you can actually adjust your goals and dream bigger. And you know what? You'll nail that bigger goal too. You're not doing so much work anymore, but the numbers are still rolling in.

Number thirteen: that big 1 million. Now, people might say, "1 million? You can't even buy a house with that anymore!" But it's not tied up in a mortgage; it's totally yours. And now that you've gotten here, you know you'll get to your next milestone and your next one.

The number is amazing, but only because now you feel like you can live the life you want. It's by getting there that you know you've cracked the formula. You know what it took, the effort you had to put into it, and how much time it took you to get there. You've basically mapped out exactly how you can reach the goals you've set your mind to.

And with this blueprint and some common sense, you know that you can do it with other things in your life too. Your $1 million milestone is a reflection of your discipline, smart decisions, and sacrifice. You're going to love it!

Number fourteen: being able to help out your family. A lot of people already help out their family financially in some way, but it creates stress, right? It's not something everyone can do freely without having to watch their own family more carefully because of it.

So when you get to a point where you can change your family's life without it affecting your finances, you don't just feel like you've taken your own worries away; you feel like you've done it for the people you love too because you kind of have. You're the only one who knows what it took to get there.

So for you to be the one who made the sacrifices and decisions that lifted everyone up, and for you to be able to share your success without sharing your burdens—that's incredible! It shows that your empathy and understanding have grown with your wealth, and it's a testament to the fact that this isn't a quick or easy journey. You're going to learn a lot, you're going to make some mistakes, and get frustrated, but you'll also become a richer person because of it—in your bank account and in your heart.

And number fifteen: being able to travel whenever you want to. A lot of people don't think that this milestone isn't as big or important as hitting that $1 million mark, but you'd be wrong! Okay, because look, just hear us out: traveling is a beautiful, educational, interesting experience that totally changes who you are in a very short amount of time.

Everyone has different ideas of how they want to travel, and the financial milestone isn't about making so much money that you can fly private and stay in only five-star hotels. It's about knowing how much money you're able to spend on getting an experience that is so life-changing.

Some people can travel really cheaply and realize they don't actually need a lot of money to have an amazing experience. That's a huge milestone in figuring out your financial meter: so how much or how little are you okay with? It's a big step in understanding what you value and how you're actually going to navigate your finances.

And also, of course, getting to travel without worrying about money is about the most freeing thing that you could ever experience.

And that's all from us today, Alexir. Let us know in the comments which milestones have you hit and which one are you looking forward to the most? Join that conversation in the comments; we'll be right there with you. We'll see you back here next time, my friend. Until then, take care!