If you are clear about your financial goals, then you can work towards successfully achieving them. Here are a few tips on what your financial goals should be according to your age.
Financial goals could be short-term, medium-term or long-term in nature. You need to plan the goals as per your age and try to achieve them at right intervals. It is thus important that you start working towards the financial goals at the right age and the right time.
For example, at the start of your career on a small salary, you can’t buy a home immediately, but you can make a plan to buy it at a particular age and work towards it. Similarly, you should not delay the home buying decision beyond the appropriate timeline, otherwise, you may find it difficult to get the right property or may find it difficult to repay the Home Loan.
However, if you are still confused how to make your financial plans according to your age, then you don’t need to worry as we’ll guide you to plan it in a way so that you don’t miss out any important goal.
For People In Their 20s
When you are in your 20s, it is the best time to set your financial goals. The earlier you start working on your financial goals, the better it is. Your financial goal should be to build a strong platform for your future growth. Your financial goal should include steps to build a good credit history and keep your CIBIL score at a high level. You should start investing early in the career towards meeting your retirement objective and also build a contingency fund to cover the expenses for 6 to 8 month period. Since your commitments are low, you can expose yourself to risky investments that yield high returns. It would also be wise to work towards a healthy credit record.
For People In Their 30s
Assuming that by this age, you are married and have a family, you should allocate a portion of your income to accomplish your family needs. Buy Health Insurance policy for self and your family members to cover the related risks. You must get a Term Life Insurance to financially secure your family against the risk of your untimely demise. You must also accomplish the dream of buying your home. If you avail a home loan, then ensure that you make the repayments timely.
For People In Their 40s
At this stage of your life, your household responsibilities may have increased more. Since you cannot expose yourself and your family to any risk, at this age review your insurance needs and increase the cover on your health and life policy. You may need to undergo medical tests to increase the cover if you cross the age of 45-50 years, so it’s better to consider this in the early 40s. You should also review your retirement corpus and work towards increasing it if need be. Your financial goal should include arranging funds for your children’s higher education and repaying all the debts.
For People In Their 50s
At this age, you would be assessing your retirement corpus and ensuring financial security for yourself and your family post-retirement. Try to get rid of all your debts before you step into retirement and stay invested in instruments that ensure a fixed income post retirement. You should be regular with your insurance payments and monthly bills. Do not expose yourself to unnecessary risk while investing your money.
After you retire, reinvest your retirement corpus to get a regular monthly income and keep your risk profile at a low level. You should also plan your estate, write the will and inform your heirs about your estate planning. It’s time to enjoy your money and go on vacations and enjoying some quality time with friends and family.
You must maintain strict financial discipline and manage debt, investment and tax obligation in sync with your financial goal to create wealth.