Good financial sense is an essential as we go through the stages of life, although many of us don’t realize this until we have arrived in each one and by then it is too late! With this in mind, get ahead of the game by reading the guide below.
0-20 years
Most folks don’t think too much about the fact that what they spend at this point in their life can affect the rest of it. However, some frugality and sensible investing now can set you up for financial stability.
That means if you are just getting your first part-time job, or your initial job after education it makes sense to save as much as you can. Then you can invest it in long-term assets on the stock market, and it could make you very wealthy by the tender age of 30.
Invest when you are young to be secure throughout life
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20-30 years
These are the years that most folks are concerned with getting their first lot of big-ticket items such as cars and houses. It’s also usually when they choose to settle down and consider having a family. That means there can be a lot of demand on your finances at this time.
With this in mind, it’s a good idea to open a saving account and create a fund that will allow you to pay for any financial difficulties that so come your way, rather than living right up to your limit all of the time. The reason being that it can be very stressful when life changes do occur, something that is quite likely during this period.
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30-40 years
This period of time is when it’s best to start thinking about your retirement. OK, so it’s quite a way off yet, but getting reliable retirement advice you can trust now can help you build a fund for the future that will allow you to live comfortably. Choose to ignore this and wait until later on, you will find you have to save a lot harder and pay more into any pensions to get anywhere near what you could earn if you do it in your 30’s!
40-50 years
With any luck, some of your previous financial investments are starting to pay off during the time between your 40s and 50s. This means you may find yourself in a position to invest in some luxuries and more of the finer things in life. This is, of course very enjoyable.
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However, you must also remember not to get carried away with this sort of lifestyle. That means ensuring you have reinvested at least a portion of the revenue you have earned to provide for your future financial security in later life and during retirement.
50-60 years
In you 50’s it like you are most focused on retirement, you may even choose to take early, or part-time retirement to focus on other things in life that you enjoy.
If this is the case, then be sure that you keep a firm hold of your expenses and use only the portion of your resources you can afford to pay for this change in lifestyle. Otherwise, you risk financial instability later on in life. A time where you could possibly need it the most due to the increased likelihood of medical costs and care.
