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Smart money moves (How to build wealth at any age)

There are significant financial choices to be made at any age. Our guide to the most important financial steps in each decade will assist you in laying a stable basis for long-term financial stability. 

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How to build wealth in your 20s

Establish your financial independence 

  • When you achieve financial stability, your 20s are about laying a cornerstone.
  • Make a budget that takes into account your expectations, wants, and desires. Make a debt-paying strategy and stick to it.
  • Start to improve your credit score.
  • Set aside up to three months' worth of living costs in an emergency fund.

 

Set a course for your financial future

  • It's never too early to consider planning for retirement or putting money into the stock market.
  • Participating in an employer-sponsored retirement account today will pay off later.
  • Roll back your 401(k) or IRA if you swap careers.

 

Learn what insurance you need in your 20s 

  • Ensuring that you're protected by insurance is a crucial aspect of your financial plan.
  • The first step is to educate yourself about the various forms of policies, which range from employer-based health insurance to disability insurance.

 

Boost your financial well-being 

  • Begin your path toward financial stability by setting targets, keeping track of your spending, and evaluating your current assets.
  • Here's a 30-day checklist to help you get started.


How to build wealth in your 30s

Set your personal financial goals 

  • Do you have any goals you'd like to achieve? It's time to make a strategy. 
  • You may wish to purchase a home, start a family or a career, or pay off debt.
  • A budget will assist you with keeping track with all of your budgetary objectives. 

 

Continue to save for retirement 

  • Try putting 15% to 20% of your pre-tax income through a 401(k) or another savings plan with your company.
  • An HSA will help you save money and have incentives in retirement.

 

Protect yourself and loved ones 

  • Consider long-term injury or life insurance to cover yourself and your loved ones.
  • A financial advisor will assist you in choosing the right strategy for your needs. 


How to build wealth in your 40s

Explore your options when you’re earning more 

  • Your 40s are peak earning years, which means you have a variety of financial options, from mortgage repayment to charitable donations. 
  • Life activities occur—supporting children or parents, divorce, remarrying—so revisit your financial arrangement when your circumstances change. 

 

Expand your retirement savings 

  • Make the most of your higher salary by contributing to your savings account to the full extent possible. 
  • Alternatively, you might consider diversifying your investment holdings. 
  • Maintain your donations when putting together a college savings package for your children.

 

Protect your #1 financial asset: you 

  • Try purchasing life insurance if you haven't already. 
  • Now is also a good time to develop an estate plan, which may include a will, a healthcare directive, and other important documents, especially if you have children.


How to build wealth in your 50s

Make the most of your empty nester lifestyle 

  • Are your children no longer living at home?
  • Encourage them to be financially self-sufficient.
  • Meanwhile, trim your own spending, think twice before taking on loans, and invest while you can.

 

Envision your retirement needs 

  • It's time to get down to business when it comes to retirement.
  • Consider your savings needs and make the most of higher 401(k) and IRA catch-up investments.
  • Double-check if the asset distribution and investment risk are in line with your strategy. 

 

Consider insurance with low premiums 

  • Because your premiums are at their lowest right now, think about buying long-term care insurance to cover any future medical or personal needs.

 

Picture the legacy you want to leave 

  • Make sure the estate plan is up to date and it is the most important way to leave the legacy you desire.
  • Do you want to build a relationship of trust?
  • How about putting together a voluntary donation strategy?


How to build wealth in your 60s

Prepare to make the leap to retirement 

  • There are a number of important benchmarks to reach before retiring.
  • Are you thinking of following a hobby or a "encore" career?
  • Make a plan for your salary, like when you'll start taking Social Security, as well as ongoing savings, to make that work.
  • Try surviving on this estimated salary for a trial run.

 

Apply for Medicare 

  • You can qualify for Medicare after you reach the age of 65.
  • You'll be able to purchase supplemental benefits as well as prescription drug coverage.  

 Re-evaluate your insurance portfolio 

  • You may choose to consider limiting or eliminating life and death benefits in favor of long-term and medical care, depending on your preferences. 

 

Talk with family about estate planning 

  • The estate plan lays out the inheritance you'll give your loved ones, so include them in the discussion.
  • Talk about who should be the owners of those properties and who will run the family company. 

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