If you’re in your 20s or earlier, it’s time to get smart with your money. It’s important to watch what you spend and have good savings patterns. A good start early on in your life makes a huge difference to your long-term financial wealth. Here are some quick tips for young people to avoid credit cards and phone bills. Working hard on careers and maintaining self-discipline to put some money into a saving such as managed investments or bank deposits. Set yourself a simple goal such as saving $7000 per year for 10 years which will accumulate approximately a hundred thousand dollars. A simple way to help you along the way is to have a budget and to track your super expenditure against your budget.
Moving along then when you are in your 30s and 40s, it’s time to get on top of your finances. So what’s important here is to learn the important steps of prioritizing your debts, such as paying off any credit card and personal loans first, then home loans or private loans, and lastly repay investment home loans and business loans. Investment home loans or business loans should be the last priority to be repaid, as they may create your wealth through capital gains in your investments or give returns on your business. Although the same can be said for home loans, it has priority to be repaid because it is not tax-deductible.
In your 50s you should be beginning to plan for your retirement. So in this phase, you should be looking at contributing more to your superannuation or to be topping up your investments outside of your superannuation such as to build up a portfolio of shares or properties.
In your 60s you should be well and truly considering how you will be situated when you stop working and planning for your retirement income. Additionally, you will want to make your investments continue to work in your favor so that your maximum return ensures your money can last throughout your retirement and maintain your required living standards. As well as this you will be reducing risk to make your retirement nest egg stable and secure.
Of course, there will always be some other considerations along the way. Some parts of life can mean you are strained to achieve optimizing your financial life. Some of these circumstances are the pursuit of hobbies/sports, growing your family, caring for elderly parents, sicknesses, deaths and supporting your children to adulthood. These are obviously important too as of course life is not just about money.