20 Year Olds
– Start saving money now. Allocate a direct deposit or automatic deposit to your savings account.
– Sign up for a retirement account or 401K and deposit as much as you can.
– Get a degree and finish it.
– Start building good credit.
– Easy on the shopping spree. If you buy too many things that you don’t need, you may end up selling them later for things you really need.
– Set your goals for the next five years and follow through with them.
– Be wise in picking a boyfriend, partner or who you marry. Divorce and life after divorce can be costly.
30 Year Olds
– Increase your retirement contribution. You are expected to have an active retirement account at this age.
– By now you should have an 8-month emergency fund or at least currently working on that.
– Pay down your school debt. If you don’t have any, pay down your consumer debt with the highest interest rate.
– Review your portfolio at least quarterly (Ex: retirement plan, savings plan and other financial plans) to see if you are in the right track.
– Get life insurance (Suited best for people with dependents).
– Prepare for your children’s college fund.
– Plan how you are going to pay your mortgage early.
– Must-have a stable career not just a job.
– Review and lower your expenses.
– Continue to educate yourself. Finish college if you haven’t yet. But if you did already, educate yourself about something you are most talented at or interested in – because this is most likely what you want to do upon retirement.
– Own something that can be considered as an investment (Ex. House, painting, bonds, etc). Your Chanel or Louis Vuitton bag may increase in value but that’s not an investment.
– Again, set your goals for the next five years and follow through them.
– Be more health conscious. Remember, health is wealth.
– Lastly, if you are still single: I will repeat: Be wise in picking a boyfriend, partner or who you marry. Divorce and life after divorce is costly. So avoid the wrong ones like the plague.
40 Year Olds
– You should at least have an 8-month emergency fund.
– Keep your expenses manageable.
– You should be halfway finished with your mortgage (or at least have paid a sizeable portion already).
– Increase (if not maximize) your retirement plan. Take advantage of any company retirement benefits.
– School debt should be over. Consumer debts should be minimal.
– You should have figured out what to do or how you plan to support your kids college plans.
– Continue to review your portfolio at least quarterly (Ex: retirement plan, savings plan and other financial plans) to see if you are staying within your future plans.
– Again, be more health conscious. Remember, health is wealth!
– Have a diverse portfolio. Do not put your money in one basket. Make sure that your money is invested in many different ways.
– Like in your 20’s, continue to set your goals for the next five years and follow through them.
50 Year Olds
– Stand in your truth. Know where you are in life and what is the situation of your reality.
– Where and how are you with your retirement plan? Seek professional help if needed.
– Maximize your retirement plan or “catch up!”.
– Debt should be very minimal or paid off.
– As always, continue to be health conscious.
– Prepare or have a plan for the unexpected. Ex. sickness, job loss or (as much as we all don’t want to talk/think about it) death. Yes, if you have life plans, you should have after-life plans too such as: Will, Trust, Life Insurance, etc.)
– Know when you “can” retire. Yes, “can”. Because you can quit anytime you want but your financial portfolio dictates when you really can.
– Plan to have another source of income or figure out what you want to do upon retirement. This will either be a part-time/full time job that you’ve always dreamed of, something that you would enjoy doing or a job that will supplement your retirement income.
– Know your health insurance plan or strategy upon retirement.