Financial Tips for Each Stage of Life

By on November 5, 2018

Your financial priorities will fluctuate often to reflect your responsibilities at each stage of life. For those just starting out, It’s never too late to start building a strong financial foundation. And if you’re at a later stage in life, get on track with your peers, create a financial safety net and plan accordingly for the next phase.
These are some quick tips to manage your personal finances and build your financial competency at each stage of life:
Starting Out as Young Adults
For those in the early stages of supporting oneself, going to college and establishing a career, it’s important to realize that your future financial success will take some planning and patience. And it never hurts to get a head start on building healthy habits with money and personal finances.

Create a budget and live within your means
Set some short term financial goals (saving for home, continuing education, etc)
Understand credit (how to build it, use it, read a credit report, etc.)
Build saving habits (pay yourself first savings account, CDs, treasury bonds, investments)
Start an emergency fund worth 6-12 months of expenses

Real Life is at Your Door
For those Gen Ys and Gen-Xers in their first career, paying off student loans, getting married, having children and looking to buy their first home, time is still on your side. Don’t let the hectic nature of daily life put off making crucial financial plans which will support you and your family over the next year decades.

Make a clear financial plan (goals, savings, investments, insurance coverage, cash flow)
Understand taxes and how they affect you and your investments
Consider financial planning for a family (joint-filing and dependent tax liabilities or benefits)
If you can, get professional financial advice early
Consider your health (health care options, disability coverage
Build a foundation for your retirement (employee pension benefits, IRAs, Social Security)
Save up for your (future) children’s college tuition
Create a will for your assets and medical directives
Begin thinking about long-term care insurance
Maintain a low debt to income ratio and maintain good credit

Baby Boomers Looking Ahead
At this midlife stage, you’ve got adult children, elderly parents to care for and are coming upon retirement age. It’s been a few years since you’ve reviewed the state of your financial future and might need to make some last minute plans or changes to maximize your financial situation with retirement on the horizon.

Review the worth of your assets with a professional to restrategize if necessary
Make a strong push to invest in retirement savings
Create an estate plan with an attorney
Build an income stream for after retirement (annuities, stock and property investments)
Make a long-term care plan if you haven’t already
Pay off your debts while you still have income

Retirees
Life goes on after retirement – really, it does! Now that you’re retired the game is changed completely, so take another look at your financial plans to maximize your resources for the years still ahead of you.

Set new financial goals (travel, cash flow maintenance, family trusts, etc.)
Make a new budget and don’t spend outside of your means
Get to know the taxes and fees on tapping into retirement and security benefits
Strategize when and how to take benefits and extract from retirement or savings
Review your will and estate plans

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About Terri A. Kamoto

Senior writer for FSN - Terri is a former financial analyst dedicated to making personal finances, budgeting, investment and insurance advice accessible, up to date and easy to understand. It is hard to find professional advice written in a language someone without a financial background can understand. Terri helps companies synthesize industry lingo and expertise into clear and informative content which builds smarter, financially successful individuals. You can find Terri on !

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