Most of us at one point in our lives have asked ourselves, at what age should we start saving money for our future? There is no right answer, but a good way to start is at any age that you begin making money. Saving money is a smart choice to put into practice at any age.
Your 20’s is the age when you begin college and where you may be getting a student loan, branching out on your own and begin living in the real world where a job is essential to get you anywhere in life. Welcome to the Real World! This is also the age where you begin to build your credit. Now, if you don’t know what credit is or what you need it for, talk to someone who can explain the importance of a high and/or low credit score. Building good credit will help you when applying for major investments such as a car loan, college loan, and even a mortgage loan. The higher your credit score is, the better chance you have of being accepted and getting a low-interest rate. This is also the time when you should begin saving money every month. Saving at least 10% of every paycheck is a good start. You never know when unexpected emergencies might arise. It is also a good idea to save some money to pay back your student loan debt and get a repayment plan set up. Your 20’s is also the time that you want to free yourself from your parents and feel proud of how you live your life and live it the way you want.
Most people when they hit their 30’s they start thinking about settling down, getting married and having children. If you are contemplating this altering life change, you may want to make some adjustments to your emergency fund. You should have a steady income and a budget that can take care of the essentials like your home and children. Before hitting 40, you should have dealt away with student loans, credit card debts, car loans, and any other debts besides your mortgage. Making debt repayments your priority will give you the opportunity to use your income wisely as you get older. This is also the time when you should have at the very least six months of income. This is enough money to cover your expenses in case of an emergency such as losing your job, a job injury, or a severe medical problem.
As you get into your 40’s, you should start thinking about how would you provide for your family if something were to happen to you. Life insurance takes care of funeral costs and ensures your family gets your assets should you pass away. You should also make sure you are keeping up with your credit debts to keep a high credit score.
The retirement ages. But before you retire, you need to ensure you can support your family. You should also make a retirement saving to establish when you can retire. You could also sell some of your properties or assets that you no longer need or want. This will help you reach your retirement saving goals earlier. It is also a good idea to get your will set in motion to ensure your assets are given to right people.