Regardless of where you are in life, it’s never too late to start saving and planning for your financial future, recommends AG Morgan Financial Advisors.
Here are a few tips to help you get started.
- The 20s – Start saving for retirement early
If you’re in your twenties, you may be just starting out in your career. You may be fresh out of college and working your first job, or you may be a few years into your career and making good money. Either way now is the time to start thinking about retirement. It may seem like a long way off, but the earlier you start saving, the better. Try to set aside 10% of your income each year to put into a retirement account. If you can do more, great! But even 10% will make a big difference over time.
- The 30s – Invest in yourself
In your thirties, you’re likely making more money than you were in your twenties. This is a great time to start investing that money wisely. One of the best investments you can make is in yourself – specifically, in your education and career development. If there’s a graduate degree or professional certification that will help you advance in your field, now is the time to invest in it. The same goes for taking courses or attending conferences that will keep you up-to-date on the latest trends in your industry. Not only will these things make you more marketable and help you earn more money, but they’ll also make you happier and more fulfilled in your work.
- The 40s – Get serious about debt
By the time you reach your forties, you should have a pretty good handle on your finances. This is the decade when things really start to come together – or fall apart – financially speaking. If you’ve been putting off paying down debt, now is the time to get serious about it. Make a plan to pay off high-interest debt first, such as credit card debt or student loans. Once that’s under control, you can focus on building up your savings so that you’re prepared for whatever life throws at you.
- The 50s – Plan for retirement
The fifties are typically when people start thinking seriously about retirement – and for good reason. If you want to retire comfortably, now is the time to ramp up your savings efforts. Try to save at least 15% of your income each year, if not more. And if you haven’t already done so, this is also the decade when you should start thinking about how much money you’ll need to have saved in order to cover all of your expenses in retirement. Retirement planning can seem daunting, but there are plenty of resources available to help get you started.
The bottom line.
No matter where you are in life, it’s important to take control of your finances and start planning for the future. By following these simple tips, you can set yourself up for financial success at every stage of life.
