Everyone should plan their finances, but have you considered age-related milestones you should reach? Whether you’re looking at saving, retirement or debt, there are considerations you should make to reach your financial goals.

Here’s a guide to managing your money at different stages of life.

In your 20s: early career days

Your 20s lay the foundation for your financial circumstances later on, so it’s important to prioritise having enough disposable income.

What you should focus on:

• squashing any debt you have (e.g. student debt) first – this will help you to accumulate more disposable income and ensure a good credit score
• prioritising saving once you’ve paid off all or most of your debt, and aim to save at least 10–20% of your salary – if you can’t afford this immediately, work towards it, but always add savings to your budget
• working out a proper budget – and, live within your means
• starting to contribute to a retirement fund, either one of your employer’s options or your own – even a 5% contribution initially is a good starting point, and you can increase this yearly

In your 30s: family and career building

Once you’ve reached your 30s, depending on your circumstances, you should:

• increase your retirement contribution to 15%, and at this stage, you should have roughly a year’s worth of your salary in your retirement fund
• have an established savings plan of at least three to six months of your salary
• take out insurance, i.e. life insurance, car insurance and other applicable policies
• explore investments because they can maximise your savings
• invest in property if you can afford to, or explore your options – this could mean checking how much financing you qualify for, chatting to brokers and doing online research
• put savings towards your child’s education (if you have kids or are planning to start a family)

In your 40s: putting your practice to good use

During your 40s, you may have more income to work with after building a career. It’s also time to start thinking seriously about retirement and actively planning towards it. Here’s what you should focus on:

• reviewing your retirement annuity – calculate how long your funds will be able to keep you afloat after retirement, and adjust your contribution accordingly to reach your goals
• prioritising paying off your home loan sooner, if possible
• reviewing options to reduce tax on your retirement fund when it comes time to withdraw the funds
• mapping out potential expenses you would have during retirement
• considering side hustles, passive income sources or a business that can help you reinvest your money

Note: Everyone’s finances are different. So if you don’t reach some of the age-related milestones, don’t panic! Chat to a financial adviser who can help you get back on track.

Find more tips to help you save in these blog articles:

• How to Start Investing Your Savings
• Decluttering the Budget-friendly Way

The information in this article is for information purposes only and does not constitute professional advice.