A Breakdown of Lifetime Decision Making

The choices we make each day concerning finances have the potential to bring a positive outcome or a negative outcome in our lives.

When we decide to make choices that are positive, like monitoring our finances, investing, using discounts such as a military discount, and saving, we should be able to easily see ourselves as becoming better off throughout our different stages of life.

During Our Twenties

Whether you graduate from college or not, your twenties may make it difficult to fit in time to exercise, or worse, be able to even start a budget. This is the time to figure out how you need to handle your money for the future.

Figure Out Your Savings Goal

Let’s say that you want to start saving money to make a major purchase like a car or a home. When you have a goal, you’ll be able to manage your personal finances better. This requires you to make a decision on what the most important aspect of your goals needs to be in order for them to be achieved. You can accomplish this by being aware of the amount that gets committed monthly. You can start by having your bank account capable of making direct debit payments.

Understand the Pension Process

The best time to think about your pension is early in life. This is important so that you have a nice sized amount at the time that you need it. Through your job would be the best place to get one started. Being able to put in as much as possible, especially when your employer is matching every amount, is what will enable you to have a great head start.

You can also make a visit to your employer’s pension site on a regular basis. This will enable you to manage your pension account.

Midlife Between 30 and 40

After having a family, you might experience a stretch in the amount you are now spending. However, this is an important time to keep going on the financial goals you have chosen.

Starting a Fund for Emergencies

It is suggested that you should set aside 90 days’ worth of pay to be able to pay for an emergency. Having a fund for emergencies is a great way to stay relaxed if your responsibilities have increased.

Put More Into Savings

It is highly possible that the salary you receive now has jumped significantly since your youth, so you might want to start putting more towards your savings account. For those of you that are parents, you can also think about starting a college fund for each child you have. Making small decisions like these will easily change your life.

Make Sure Your Investments Are Monitored

Make sure that you know where your investments are and what they are invested the way you want. Ensuring that you are comfortable with their status will ensure that you are happy when retirement comes around. Ensure that they involve your preferred risk level so that you don’t run any chance of losing money. Reviewing all investments on a regular basis is a great way to have your savings work double-time.

Your 50s and 60s

As your children grow up and start to move out on their own, you can begin to relax a little towards the amount you spend. Your kids would be using their college fund that you had created so that will no longer be an expense. You’ll have more to put away towards retirement. You’ll also want to ensure that all finances remain at a healthy level. 

Check Your Life Insurance Policy

Make sure that you have proper life insurance and that it is still at a comfortable amount that can both cover final expenses and leave your family with something. This is an important part and assures your family that you are prepared in case anything should happen.

Reaching the Golden Years

With retirement around the corner, you no longer need to worry about socking away cash as often. With a lot more free time, you should now concentrate on increasing a healthy lifestyle. That way you will be certain to make your retirement as enjoyable as possible. 

Review the Budget That You Created

Everyone knows that having a budget is a smart thing to have. It’s great knowing how much cash you have to do what you want. During this period you can update your budget to include items like a military discount if you are retired military and remove items that you no longer pay on such as a mortgage, car payment, etc. When you consider things like these, you can easily make adjustments to the amount that you contribute to your retirement.

Pay Off Your Debts Early

Having any debts while you’re young allows you plenty of time to have them all paid off by the time that you retire. If necessary, consult a financial expert who will be able to help devise a plan to keep debt in check.