Every person is an individual with his or her own set of circumstances. That’s why it’s important to us that every person has a tailor-made financial plan. But there are some common denominators of what you as a person in your 20’s or 40’s or 60’s can expect financially along the way.
In your 20’s: welcome to the world of money
Your 20’s are the decade when you learn how important money is to supporting your lifestyle and aspirations. It begins with the simple things. Finding a place to rent. Going out. Meeting someone. Forming relationships. You may move out of home – more than once – and take your first adult steps with a full-time job. Financially it’s a good time to focus on budgeting, managing credit cards, and joining a superannuation fund.
In your 30’s: invested in life
This is commonly the decade where you take on the big picture items – decisions that decide the future. Buying a first home (and mortgage). Marrying, and potentially starting a family. These are the years to manage debt repayment, consider personal insurance (in conjunction with your super), and start saving for the cost of raising children.
In your 40’s: reap the rewards
This is more than likely the decade where your career takes off (if it hasn’t done so already). Earnings rise rapidly in our 40’s, but so too do the expenses associated with living. Educating the kids and putting a dent in the mortgage is high on the list. In this peak expense decade there may not be much cash flow, and what there is can be allocated to accumulating assets by paying debt faster, or borrowing to buy property and shares.
In your 50’s: the milestone years
In most instances, this is the decade where you reach a lot of milestones. You may have already paid off or are not far away from paying off your home. The kids have left school and your career may be peaking. It’s not uncommon for thoughts to turn to options for retirement, reviewing your personal insurances and focusing on superannuation. A good financial plan is essential to put excess cash flow to work, ensuring you accumulate enough to retire comfortably.
In your 60’s: adjusting to freedom
While relying on passive investment income can require a lifestyle adjustment, the freedom to travel whenever you like and do whatever you want is incredibly liberating! This is the decade you’ve been planning for.
In your 70’s: the world is your oyster
A comfortable retirement and an enjoyable lifestyle can be yours. You might enjoy travel and hobbies like never before. Some people wonder how they had ever fit work in.
In your 80’s: good health and family
Often the focus turns to maintaining health and being around the family more in this decade. People downsize and start looking at a legacy. There is a sense of fulfilment knowing that you can leave a legacy to help younger generations.
In your 90’s (and beyond)
Enjoying the simple things in life and being around family or friends, the grand kids, or great grand kids becomes a priority in the later stages of life. You are less concerned with your own finances and inclined to want your family to be comfortable with theirs.
And beyond? Quality of life is all-important and, with the right financial planning throughout the decades, can be added to your list of achievements.
At Elston, we’ll work with you to tailor a plan to your financial journey, at every stage of life.
If you would like more information please call 1300 ELSTON or contact us and an adviser will be in touch.