Financial rules for every decade of your life

By: Health Local Staff Nov 01, 2013
Financial rules for every decade of your life

No matter what your age, there are spending habits, saving strategies and financial guidelines that can benefit you.

From your teens to your golden years, a lot happens. As you change your financial rules evolve. No matter what your age, there are spending habits, saving strategies and financial guidelines that can benefit you. Below are financial rules for every decade of your life.

Teens to Early 20s – Living Lean
When you’re in your teens and early 20s your financial plan is clean. You’re starting out on a clean slate. The important lesson in your early financial years is not to get yourself into a bind. Avoid overspending and always pay with cash. Too many teens and young 20-somethings start racking up credit card debt and end up living at home with parents, burdened with bills.

Quick tips to remember:

  • Keep a jar for spare change – it’ll add up
  • Pay for everything with cold hard cash
  • Avoid spontaneous spending and resist temptation

20s to 30s – Growing Up

As you begin to reach early adulthood, you may start looking at big purchases, like a new car, a wedding or a down payment on a home. In order to save money for these big-ticket items, you will have to take what you learned in your lean years and apply it to your next stage of life.

Quick tips to remember:

  • Create an emergency fund, setting aside several months worth of living expenses
  • Begin an investment plan
  • Learn to take a risk with your portfolio investment, something with high returns

40s – In the Groove
When you enter your 40s, things start to move quickly. Life gets busy and you are now most likely earning more money than ever before. You are also in the middle of some big expenses like educational costs, mortgages and summer homes. Now is the time to nurture your growing nest egg.

Quick tips to remember:

  • Time to get a professional involved with your investment portfolio
  • Look for every tax break you can get
  • Balance out the right mix of stocks, bonds, equities and cash.

50s – Time to Go
This is the time that you should start to begin looking at retirement. Debt should be nearly gone, if not wiped out, and you should be planning ahead for the big day when you say goodbye to your traditional work.

Quick tips to remember:

  • Pay off any existing debt payments so that they do not prevent retirement
  • Get aggressive about your savings plan, start stashing away everything you can
  • Consult an advisor on how you should best allocate your money

60s – Third Act
This is the stage of life when you make it last. After a lifetime of being told to save, retiring can seem like a license to spend. Don’t live in fear, but don’t go crazy either.

Quick tips to remember:

  • Be tax conscious
  • Enjoy your freedom but look for ways to save, rather than spend
  • Do what feels good, stay healthy and be strong. You’ve earned it.

The Health Local Staff is a team of writers and experts dedicated to bringing you the latest health, nutrition and lifestyle information at