Set Personal Finance Priorities In Your 20s, 30s, 40s, 50s & 60s

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How to Set Your Financial Priorities?

We all have different priorities at a different level of aging. We have to learn money management goals, as we get elder. The below points are which are important to a person at a various stage of the journey of life.

1) 20 years:

Though it seems odd to plan at this age, but it is a prime time for a financial foundation and develops good habits for retirement life. Save beside retirement account 401(k), so that it will helpful when it’s time to buy a new home or a car. Savings $200 per month in an age of 20 will grow to between $40,000 to $50,000 after 10 years and around $250,000 after 40 years.

2) 30 years:

It is the age when children’s responsibilities are on the head of a family. Guide kids to spend and save responsibly. If a person did not start saving from the 20s, it is not too late but only a bit hard. An emergency fund is important at every stage of life, especially when a family grows. This increases the chances of a financial need urgently.

3) 40 years:

Real decisions should be taken at this age. Consider by yourself where you stand. A help of financial planner is a great option. Ask professionals to provide a baseline for where you stand in terms of saving for retirement and any specific goals. Save maximum in account 401(k) for your retirement. Take all specific advantage of tax break both in 401(k) as well as in Internal Revenue Account (IRA).

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4) 50 years:

Generally, this age is a typically earning year for a better peak. Here, children’s expenses are not anymore because they are grown up. Besides that, household expenses increases but mortgage payment are almost at last level and a person can enjoy the own house. Try best to pay big debts before retirement. If you are able to add more amount in IRA or 401(K), it is best. Buy long term care insurance near the age of 57 is an appropriate time. It is too expensive to buy after retirement.

5) 60 years:

Due to medical reasons, corporate downsizing or layoffs or taking care of elderly parents, more than 40 percent of workers are forced to retire earlier than they planned. Determine first when to retire and when to take social security or pension plan. To leave money for beloved, life insurance is a good option. It also offers death benefit.

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