Setting Financial Goals for Every Decade

Setting financial goals or objectives for ourselves is crucial; not only does it allow us to plan for the future financially, but it also helps keep us motivated and can help clarify the direction we should be moving in. Each stage of our lives usually entails different financial requirements, depending on what you hope to achieve in your life. However, regardless of whether your plans are to spend life aboard a luxury yacht, or if you aim to have a house full of children, one financial goal should always be on the top of your checklist: financial stability. The following list includes some financial objectives you could consider to help ensure financial stability throughout your life.

The Roaring 20s

Your twenties are an exciting time: you’re young, youthful and probably just starting out in a career, or finishing university. This part of your life could be considered the formative years of adulthood - this decade is the perfect time to start planning for the rest of your life! Take the time to consider your personal goals, career goals and even relationship goals, as they will all interlink with the financial goals you set for yourself. Be sure to stick to the goals you set - it may be easy to procrastinate and leave things “for later”, but working towards your goals from as early on as possible will help you be strict with yourself and prevent goals from falling to the wayside.

Goal Setting Priorities:

• - Create an emergency savings fund or ‘nest egg’ for unforeseen costs
• - Start and build on positive financial behaviour, like saving disposable income, creating and maintaining a budget, or opening a small investment
• - Save as regularly as possible
• - Take small financial risks to grow your money

Don’t Let Your Thirties Be a Great Depression

By the time you reach 30, you may have had your fair share of life’s curveballs and unpredictability, like major car repairs or maintenance, or even unforeseen costs relating to your children (be they human or fur baby!). You should also be aware of the importance of saving money where possible, as well as how crucial it is to manage your finances and keep check of your expenditure. However, this is also the time to start considering ways of clearing debt that isn’t linked to property, vehicles, or other large assets, as well as to start planning financially for your retirement.

Goal Setting Priorities:

• - Continue contributing to your emergency fund
• - Manage your debt and look at paying off what you can
• - Make sure you have proper insurance coverage
• - Consider starting to save for retirement
• - Investing in property may be a viable financial choice.

Flirty, Fun and Forty

For many people, their forties are the most successful and financially lucrative time in their lives. You may be reaching the peak of your career, and thus the peak of your earnings - which means its time to really focus on building your wealth. Reassess your budget and expenditure to see where you can cut back on expenses, and make sure to check up on any investments you have to see how they have been performing. While this may be the most successful time of your life, many people find it to be the most stressful, and can have many people experiencing a ‘mid-life crisis’. Ensure you take the time to care for yourself mentally, as well as financially!

Goal Setting Priorities:

• - Maximise your retirement savings
• - Save for your children’s tertiary education, but not at the expense of your retirement savings
• - Re-evaluate your household budget and cut back on unnecessary spending
• - Adjust investments where possible and necessary; diversify your investments to increase your chances of growth and return

Settling Down in Your 50s

Your fifties present you with the last opportunity to bulk up your retirement savings - but that may be your only responsibility! For many of us, our fifties are the time to slow down; the kids have gone off to university, often the house has been paid off and our expenses could be the lowest they’ve been in years. Some parents may be helping their children get started in life, or are even enjoying having grandchildren around. Regardless of where life has taken you, it’s important to ensure your financial affairs are in order and that you are completely ready for retirement.

Goal Setting Priorities:

• - Ensure you have sufficient retirement funds saved
• - Consider downsizing to minimise costs
• - Consider family planning and support - both for your children and your own parents!

The Golden Years

By the time you reach your sixties, all of your hard work and financial planning will pay off. It’s time to start slowing down and consider retirement - but before you do, ensure you plan your retirement income carefully to ensure the longevity of your investments. Your kids are likely grown up with children and lives of their own, your expenses are minimal, and you have very little responsibility. Relax - you’ve earned it!

Goal Setting Priorities:

• - Retirement may not be in your cards yet - if you’re well and able enough to keep working, and you want to, keep at it!
• - Investigate social or governmental financial assistance, as it won’t hurt to further bolster your retirement income
• - Consider investments like a Trust, which you could set up for your children or grandchildren