Published on September 4th, 2020
Financial stability is a long-term goal for almost anyone. However, beginning this journey may seem difficult.
The Global Financial Literacy Survey reports that despite having access to and making use of financial products, many people across the globe still lack the necessary financial literacy to use them effectively when it comes to making smart investments.
Knowing where to start on the path to your financial goals is a key to improving your financial literacy. You should know that it is important to have an idea about hitting financial milestones from your 20s to your 60s.
Each stage corresponds to specific life events, such as starting your professional career, taking charge of your independent living, preparing to start a family, raising kids, and gearing up for retirement.
With this timeline, it is easier for you to plan each step to reaching these milestones. In your 20s, you can increase your savings in many ways—consider buying refurbished gadgets, getting creative with your budgeting, and finding alternative ways to earn money. At this age, it’s crucial to overcome investing fears and get savings and insurance plans from a trusted provider.
In your 30s and 40s, the focus is on moving to the next stage of your life: starting a family. Your career is in its prime, and you need to maximize your earnings.
Diversifying your investments, looking for sources of passive income, and smart budgeting can help achieve your milestones of paying for your dream home and necessary expenses for your children’s education.
These are also the stages in life where you need to settle any debts or liabilities and begin long-term preparations, like creating a will and availing of life insurance.
With a family, you have more loved ones who depend on you, so it’s critical to ensure their well-being should anything unexpected occur.
Finally, in your 50s and 60s, you’ll be working towards preparing to celebrate your investment milestones and enjoying the fruits of your labor in retirement.
Aside from setting aside money for your retirement fund, this phase entails tying up loose ends by finalizing plans for your retirement care, updating your insurance coverage, getting your paperwork in order, and securing your legacy for the safety and security of your loved ones.
By being aware of these financial milestones and working towards them, concepts like saving and investing become easier to grasp as you apply them at every stage of your life. This timeline also helps build positive money habits, making it easier to commit to reaching your milestones and achieve financial stability, as well as your other related goals.
Best of all, these milestones can help you change or adapt your plans to best fit your lifestyle without having to sacrifice what you want in the long run.
While you can’t undo the past, there’s no time like the present to elevate your financial literacy and pursue your dreams of stability.
With a proactive approach, dedication to your goals, and commitment to building positive habits, you’re sure to be on the right track to achieving financial stability in your lifetime.