Do you wonder if there is any way to track your financial progress? Let’s find out more.
Don’t you agree that it is very important for a modern woman to be financially independent? But how can you gauge your success and growth in terms of finances?
We have collated decade-wise pointers and tips of how one can measure their financial success of situation.
When you are in 20s
Here you are young, and you must learn how to balance your short and long-term goals. This stage is very important as you start taking small steps towards investment and creating your wealth. It’s okay if to start small, but you must get familiar with mutual funds and other avenues of investment by gaining information and real-world experience.
It is time to build your credit history and have a good credit score. You could also make sure that your initial jobs offer a good overall package, meaning good salary, perks and benefits. It’s also a good idea to add beneficiaries to all your bank accounts and consult an attorney to make a will.
When you are in 30s
If you are in your 30s, you must quicken your financial plans as this stage is important in your earning phase of life. By now, you must be having a decent salary or money, so think about raising the bar of your investments and savings too. This is a stage when you may might make big purchases such as a house or real estate, a car, etc. Now you must make use of credit products such as home and auto loans to fulfil your dreams. If you are getting married or starting your family, then you will have to change your financial goals accordingly. It also is a good stage to upgrade your credit card and pay your debts. You could also think about engaging a financial planner.
When you are in 40s
This is a stage when you would want to travel, live your dreams and also think of planning for your retirement. This is also a good time to pay off any debts you might have taken. Some people also aim at an early retirement, then the plans change accordingly and you must increase your investments and savings. You must remember that no one is going to give you a retirement loan. You should also decide if you should sign up for a life insurance and create your backup plans.
Having said that, this is also a good time to invest in experiences other than just monetary investments, as this time is not going to come back and you won’t remain as fit to enjoy them later. You must travel, enjoy and make merry, get involved in your hobbies or art – something that makes your life interesting, so that any expense you incur towards all this is completely worth it.
When you are in 50s
This is a stage to reduce your work hours as you are nearing your retirement. Life starts to become more laid-back and therefore, you can try some low-risk mutual funds. You must remain updated with information about your Provident Fund (PF) so that you are aware of each details of your retired life even before you step into it.
You can also start a 10-year plan which leads you to total debt freedom. Begin with a more serious thought about your end-of-life decisions. Start cleaning up your old retirement accounts, which might be unattended. Hire a financial planner, if you haven’t done it already and take his help to do that.
When you are in 60s
If you have been following everything we talked about in the earlier stages, then this would be a cakewalk for you.
It’s a stage when you shouldn’t be afraid to downscale. Ensure that all your property or estate plan documents are in place. This is stage of your life to reap the benefits of whatever investments you did and then lead a relaxed life. Gift yourself and your family a special and memorable time. It’s also a good idea to share your wisdom and experience and mentor your juniors at work.