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Planning Your Financial Future: What's the Best Plan of Attack?

Planning for your financial future seems like an overwhelming prospect without a clear finishing point. Whether you're looking to build wealth or consolidate it, your current stage in life can pinpoint your financial goals.


Planning for your financial future seems like an overwhelming prospect without a clear finishing point. To make it a more accessible task, it helps to break up the planning according to your current life stage, whether that be the formative wealth building stages, or later wealth consolidating periods. Pinpointing unique problems can also facilitate financial planning, so be sure to realistically take stock of your personal financial goals, expectations and barriers.

Financial Planning In Your 20s

Getting your first job is an exciting experience that may lead to impulse purchases as you begin to acquire a degree of disposable income. While it can be thrilling to be able to make your own financial decisions, remember that learning how to discipline your spending early on in life will set you up for solid wealth-building into the future. Your 20s is the ideal time to evaluate your income, set a budget and put money aside for buying your first home and building a solid asset. Retirement planning should start as soon as you start working.

Financial Planning In Your 30s

You may have two household incomes at this point, but you may have also acquired some debt. Re-evaluating your budget and staying on top of debt repayments should be a primary focus during this decade. Carefully planning your finances before having children is also advised as they will have a dramatic impact on your income and time. Imagining different financial scenarios that can occur after you have children can help you get a handle on how this life event will impact your budget.

Financial Planning In Your 40s

If you're anything like the average 40 year old, you've likely lived in your home for a few years and have children who are mid-teen or nearing university age. Saving for education costs is a must during this decade, and you may be able to access money by refinancing your mortgage. Investing for retirement is advised, and this is the time to write a will.

Financial Planning In Your 50s

Everything going well, your mortgage should be nearly paid off at this point. If you're still looking at several years of payments, consider making an extra payment each year to cut down on mortgage debt. Evaluate your preparation for retirement, and tighten the household budget if necessary to ensure that you can retire on time.

Financial Planning In Your 60s

If you've been financially savvy in your younger and middle aged years you'll be set up with a strong financial base and able to enter into retirement. Be careful with your investments to ensure that you keep tax expenses under control. Remember that your current assets are all that you have to live on for the rest of your life, so it may be necessary to change your spending habits to adjust to the financial impact of retirement.

Getting Help With Financial Planning

If you've read the above financial planning stages and are still feeling like the tasks listed above are impossible for you to achieve on your own, consider meeting with a financial adviser for assistance. Financial advisers are professionals who have experience and expertise when it comes to helping you with your personal finances and planning. These individuals understand common financial issues during each life stage and can analyse your personal situation in order to help you come up with the best plan for your needs.

Financial planning changes as you age, but each life stage presents challenges that must be faced in order to gain financial security in the present and future. Plan ahead for problems that are on the horizon, and don't be afraid to ask for help to secure your financial future.

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