For Every Age, There Are Financial Goals
Everyone aspires to be wealthy, but not everyone will achieve that goal. In our world, some individuals seem to accomplish their ambitions more quickly than others, leading to questions about the knowledge and insight they possess that you may not. Life presents various challenges at different levels, and for every age, there are unique realms of information and experience that one should engage with.
I will start with 18 years since it is the official year for accountability for a lot of countries. So within 18 years and 22 years, one financial skill you should have and learn is living below your means. This the the age that ushers one into adulthood and at this point you are responsible for the funds you have and how you utilize it is solely your business. At this point, if you are interested in your future, then you need to start with the present which is having savings of about 10% to 20% of every income you get. At this point, you need an emergency savings and a savings for investment. If you start your adulthood without an emergency saving, then you are saving yourself for a tight financial future.
You will notice that I didn't mention any amount to be saved as your emergency funds specifically because I believe that should be left to you to decide but no matter how small it is, be sure to have it. After all, it will come in handy when you have a moment of financial trouble and you need to do a whole lot of things. At this point, you shouldn't be impressing anyone, you should focus on survival, independence, and control. When you are perfect at this, then you are good to go to the next level. Avoid the urge to show that you have made it when you haven't at all because that urge will come and you will need to be careful about it.
Within the age of 22 to 28, you should eliminate all forms of bad debt and find your feet. At this point, you avoid financial tools that can wreck your progress and focus on the ones that can help you grow. At this age, borrowing can look like a temporary fix to your financial problems but it isn't. If you are not getting good debts then forget about it. Be able to use 20% of your income to clear high-interest debt so you are not drowning in one. In all you do, never forget that lean way of life, it is more important than you think it is.
At 28 to 35, you should start buying assets and plan on getting properties. At this age, you need to invest aggressively because it is the age when you have the highest level of strength to do things and overcome obstacles. At this age bracket, you should have understood finance properly and be able to do things that others will assume you are performing tricks whereas you are just doing what you have learned over the years.
From age 36 to 44, you still have to invest aggressively because you need it a lot. At this point, you should be financially stable so that you can survive life’s hurdles without stress. At this point, the goal is growth, consistency, and long-term control rather than survival. When you get to age 45 to 55, you should be building wealth and not looking to be secure. You should be building wealth that will outlive you at this time and you should be teaching your children how to grow their wealth.
Posted Using INLEO