Budget Tips For Every Age

posted on Oct 2, 2018 |   89 likes

It is not too early or too late to improve your financial health.

No matter your age, you are not too young or too old to start taking the right steps to your financial freedom. It is not too early or too late to start focusing on your finances and improving your financial health.

Different age groups would adopt different financial patterns in terms of spending, savings, investing and budgeting. For instance, a young unmarried adult would have a different financial plan compared to a married adult with kids. The former would have less important obligations to be met compared to the later who has more important needs and obligations to be met.

The helpful tips below would help you view your finances at whatever age group you fall into and help you increase your net worth.

In Your 20s

Curb student Splurge: If you are still a student, this means the temptations to buy the things you do not need and the need to splurge once in a while would be very high. As a student, right next to your school’s necessities is a list of things you want to buy that you do not really need, but want to have so you don’t miss out on the trend. Following the trend is ok but try not to go overboard with it. If it would make you spend all your money or make you borrow from a friend then you should let it go. A trend that does not add any value to your academic career does not really worth it. You can stick to other trends that are at no cost.

Set your retirement savings on autopilot: When you land your first job, sign up for any retirement plan your employer offers. If you work with organizations that have no retirement or pension plan, consider a target savings plan and start saving. Putting some money away when you're in your 20s gives it many decades to grow before you need it for retirement. "When you are in your 20s, you think you are invincible and will live forever, but that mindset can hurt you financially," says Steve Repak, a Certified Financial Planner.

In Your 30s and 40s

Make your home profitable: If you do not own a home yet but would like to own one soon, this is the time to start looking out for your ideal home. When you find the one you like and how much it would cost, start a down payment plan with the agent if one is available. If that option is not available, start an investment plan with a reputable financial institution and invest towards the goal of getting your ideal home soon. If you do not have a huge sum of money to invest, you could start a strict savings plan that allows you earn up to 10% of your savings after the savings tenor. This might take a while, but if you can achieve this goal in your 30s you automatically have less to worry about.

Start and review your insurance needs: If you have children, houses, and other assets, it is time to consider signing up for the insurance needed for the various assets you have, including life assurance.

Review your savings strategy: If you're trying to save for short-term or long-term needs such as high school and college educations for your kids, family vacation or retirement, use simple financials plans such as an automatic debit (standing order) from your salary account to a savings account. This would keep you focused on your goals and help you meet your goals in no time.

In Your 50s

Put your retirement savings into overdrive: While it's often best to start saving for retirement from the day you start your first job, many people can't put away as much as they would like to because of other important family needs. When you are in your 50s this is the best time to review your retirement savings plans. This is the time to buckle up on the savings plan and put every extra cash away for retirement. This is the time to slow down on extra spending and costs that you do not need.

Your health is your wealth: Take up a hobby that encourages you to stay active, whether it is golf, walking, swimming or other exercise classes and activities. This is the time to take good care of your health, not only because you'll feel better, but because you may end up spending less of your savings on medical expenses.

In Your 60s and 70s

Travel on a budget: If you're retired and no longer have to worry about school fees, consider traveling in the off-season to save on airfare and lodging expenses.

Consider right-sizing or downsizing: In your 70s the house would begin to feel empty when it’s just you and your significant other, especially when it’s a big house that can contain about 6 to 8 people and more. If your current home is too large for your needs, think about selling and moving into a smaller property. Doing so may decrease maintenance and utility costs.  

At any age, manage your finances smartly and the good part is that you can manage your finances and earn more with Page Financials. Click here to get started.